SAIL RSP blast furnace achieves record hot metal production in October

It is reported that Steel Authority of India Limited’s Rourkela Steel Plant has achieved a record production of 201,556 tonnes of hot metal in its blast furnace during October 2007, which is also the highest ever since inception.

RSP’s BF also registered the highest single day production of 7,282 tonnes on October 11th 2007.

CITU calls for allotting captive iron ore mines to RINL

It is reported that Mr MK Pandhe president of Centre of Indian Trade Union, while making a fervent appeal for granting of captive iron ore mines to Visakhapatnam Steel Plant, said that the centre should evolve a national policy on utilization of mineral reserves and consider a ban on export of iron ores.

Mr MK Pandhe, while talking at a national seminar on Raw material Problem - Future of Vizag Steel said that “If the reserves are properly harnessed, the future of VSP will be bright.” He added that there should be a debate on mining policy and felt that the potential of Vizag Steel was under explored due to denial of mining lease to extract iron ore in Prakasam district and other states.

He demanded that there should be ban on export of iron ore. Questioning the rationale behind exporting high grade iron ore, he said that Vizag Steel would need more iron ore as well as other minerals and it was the responsibility of the centre to ensure raw material linkage.

Mr Dhanraj president and Mr N Rama Rao general secretary of Steel Plant Employees’ Union said that while all the other steel plants were spending less than INR 500 per tonne of iron ore, the Visakhapatnam Steel Plant was spending more than INR 2,000 per tonne due to the lack of captive iron ore mines. They added that “The plant is incurring INR 2,000 crore extra production cost per annum and with the doubling of capacity from 3 million tonnes to 6.3 million tonnes, the burden would rise to INR 4,000 crore roughly. The plant will be in no position to compete with others.”

Mr PK Mishra director operations of RINL however said that as of now there was no raw material shortage as it had tied up with National Mineral Development Corporation for supply for next 4 to 5 years to complete its first phase of expansion. But he added that RINL is spending more on raw material as it had no captive mines like SAIL and TISCO.

Sesa Goa to hike FII investment limit to 45%

Sesa Goa Limited has announced that it is planning to increase the foreign institutional investors' investment limit from the present 24% to 45%. However, the proposal would be subject to the necessary approvals.

Mr Kuldip Kumar Kaura, Mr Din Dayal Jalan and Mr Akhilesh Joshi have also been appointed as its additional directors.

In April 2007, Vedanta Resources had acquired 71% stake in Sesa Goa for INR 5,700 crore.

Villagers opposing Sterlite plant in Orissa

SNS reported that a section of the villagers belonging to Silisuan and Singa Raisuan area in Orissa reportedly objected to the establishment of the proposed Sterlite Iron & Steel Company Limited at a meeting of the gram sabha.

The people who attended the sabha refused to provide the land required for the proposed plant and reportedly warned against the use of force. The villagers pointed out that it was an agriculturally fertile land and a 2 crop area.


Sterlite Iron is seeking a total area of 123.38 acres. The government land and the private land are 50.06 acres and 73.32 acres respectively. But 197.95 acres of land is required from Singa Raisuan village of which the government land has 72.88 acres and 125.07 acres belongs to private land holders.

Mr Som takes over as new CMD of NMDC

BL reported that Mr Rana Som has taken over as CMD of National Mineral Development Corporation Limited.

Mr Som has been a functional director on the board of Hindustan Copper Limited and the State Trading Corporation of India Limited since November 2000. He also functioned as the CMD of Hindustan Copper Limited for a period of one and a half years till March 31st 2005, when he turned around the Company.

Basai Steel plant in Karnataka facing hurdles from locals

It was recently reported that the farmers of Karekallu, Byalachintha, K Veerapura, Golla Nagenahalli and Sidiginamola villages in Karnataka have threatened to launch an agitation against setting up a sponge iron based steel plant by Basai Steels Private Limited. The villagers alleged that dust and waste from the plant will affect their agriculture and livestock and cause hazardous diseases.

As per report, the environmental authorities of Karnataka State Pollution Control Board Bellary have recommended the proposed area for the plant but the Raitha Horata Samiti alleges that the board has been taken for a ride by the company.

Mr M Maregowda convener of Bellary Taluk Raithara Horata Samiti said that the proposed plant will violate the law as the Town Planning Commission has clearly stated that the land can only be used for agricultural activities and not industrial purposes. He added that dust will affect crops like sunflower, groundnut, paddy and jowar which are their main sources of income.

Basai Steels has planned to start three 100 tonnes per day and a 350 tonnes per day capacity sponge iron unit, captive electricity production unit, two 15 tonnes capacity induction furnace, two 100 capacity mini blast furnace and a 30 tonnes capacity rolling mill unit in the proposed area.

Host states to get 1% additional free power from hydel power plants

It is reported that private and public sector companies interested in setting up hydro electric power plants would have to give additional free power to the host state to 13% of actual generation. The proposal is part of the new hydro policy, which has already been cleared by the power ministry and is expected to get cabinet approval soon.

As per a cabinet note on the new policy, the economic returns from 1% additional free power would be used by the state government to create a local area development fund. The state would also contribute 1% from its share of 12% free power to the fund. The corpus would be available for the entire life of the hydel project and would be used to provide regular stream of revenue for income generation and welfare schemes of project affected people.

The new policy would amend the government order of 1985 which proposed that 12% power would be provided free of cost to those states where the hydro electric project is located. Once implemented, it could escalate tariff for several upcoming projects as 1% additional free power could be built into the new tariff. As part of the R&R package in the new policy, the government has also decided that project developers would have to provide 100 units of electricity per month to each project affected family for a period of 10 years from the date of commissioning of the project. It is also proposed that project developers would have to bear the state government’s share in the Rajiv Gandhi Grameen Vidyutikaran Yojana for carrying out electrification in a radius of 10 kilometer from the power house.

The report cited a source in the power ministry as saying that “The issues relating to rehabilitation and resettlement have been a major impediment in the development of hydro projects. The proposal of additional free power and creation of a fund in the new policy aims at bringing continuity in R&R measures that goes beyond mere compensation to ensure higher living standard for project-affected people.”

PGCIL to secure 20% stake in Transco of Philippines

It is reported that Power Grid Corporation of India Limited is eyeing up to 20% stake in Philippines' transmission company, estimated to cost USD 800 million, while setting up an office for consultancy services in Dubai.

Mr RP Singh CMD of PGCIL recently said that it has submitted the expression of interest for picking a stake anywhere from 5% to 20% in Philippines' National Transmission Company, whose total valuation is being estimated to be at USD 4 billion. He added that "We are a strong player in India. A stake in an overseas company would give us 18% returns per annum as against 14% to 15% in India."

PGCIL has received board's approval for opening the office, which would provide consultancy services from concept to commissioning of power transmission and distribution units. The office would be opened in the next 10 to 15 days to provide consultancy services in Dubai and the Middle East region.

Mr Singh said that "Going forward we expect substantial revenues from the region. Middle East is a very important area for us, as we huge business prospects there." He added that it has also been declared as a winning company for a transmission contract from Nigeria.

PGCIL posted a net profit of INR 371.22 crore for July to September 2007 quarter and its total income stood at INR 1,108.10 due to rise commissioning of more projects this year. Mr Singh said that "Till September 2007 it has commissioned projects worth INR 3,360 crore against INR 1,779 crore in September 2006."

ADAG forms Reliance Cement to enter into cement business

It is reported that Anil Dhirubhai Ambani Group has stepped into the cement business in a big way by incorporating a new arm called Reliance Cement to set up 4 cement plants of 5 million tonnes capacity each with a total investment of INR 10,000 crore. Madhya Pradesh has been strategically selected as the location for all 4 units to leverage strengths of ADAG’s Sasan ultra mega power project.

An official in ADAG said that “Work has been already started to set up cement plants in the state. The project work at the sites would kick start in the next 6 to 9 months. The location is strategic as fly ash from Sasan would be used to feed these units. Besides, plants would be assured of quality power supply at an economical rate.”

It is understood that the project would be funded on a debt equity ratio of 80:20. This would mean that the equity component would be around INR 2,000 crore. When the 20 million tonnes capacity for cement goes on stream, Reliance Cement would become the third largest player in the sector after ACC and Grasim.

RDSO approves triple stacks container movement on diesel routes

It is reported that Lucknow based Research Design & Standards Organization has approved Pipavav Rail Corporation Limited’s proposal to move smaller sized, triple stack containers on those routes of Indian Railways that are used to run double stack ISO sized containers. The containers approved for running by RDSO are lower in height and have slightly more length than the ISO standard sized containers.

Railway official sources said that “The RDSO has approved the proposal to run three smaller sized containers stacked above each other in flat container wagons on those diesel routes where the larger double stack containers are run. The trains can be run without going for separate oscillation trials at a speed of up to 75 kilometer per hour.”

Additionally, the RDSO has approved running these containers in double stack under the overhead electric wire in the electric traction of Indian Railways. However, before doing so, PRCL has to ensure that there are no hindrances within a certain envelope size.

Currently, Indian Railways runs double stack containers on diesel routes that do not have overhead electric wires. PRCL, a 50:50 JV company of Indian Railways and Gujarat Pipavav Port Limited, had conducted trials a few months ago for moving cars in specially designed, lower sized containers that can accommodate more than double the number of cars per train than what is in use now. The trials were carried out along with one of the largest automobile manufacturers in India.

Using these specially designed containers in electrified routes, 360 small cars or 270 medium or large cars can be moved per train. On specific diesel routes, triple stack containers could be moved, thus accommodating 440 small cars or 405 medium or large sized cars per train. Meanwhile, PRCL has also sought haulage charges from Indian Railways for moving both general cargo and automobiles in these containers. Haulage rates are charges that container operators are required to pay Indian Railways for using its track and other infrastructure for offering containerized services.

Incidentally, Container Corporation of India’s plans to move specially designed auto carrier wagons on rail tracks could not take off commercially after Railways issued haulage rates that made the project costs very high. In 2006, Concor had sought haulage rates from Indian Railways for moving cars in specially designed wagons. With India emerging as an automobile manufacturing hub, several other container operators are also eyeing the car transportation market segment to provide hinterland connectivity to automobile manufacturers.

GSPL to expand gas pipeline network in Gujarat

It is reported that Gujarat State Petroleum Corporation’s subsidiary Gujarat State Petronet Limited is in the process of evaluating the projects to expand its gas distribution network and is likely to finalize by early 2008.

Out of the 2,200 kilometer long gas grid planned, GSPL has already commissioned a pipeline network of 1,130 kilometer and work is in progress on the remaining.

GSPL will expand its gas distribution network to economic hubs such as Mundra and Pipavav ports and Morbi. It owns and operates the second largest natural gas transmission network in India.

REL plans separate subsidiary for infrastructure projects

Reliance Energy Limited board has approved a proposal to transfer its infrastructure projects to a separate wholly owned subsidiary. The yet to be named company will be a wholly owned subsidiary of Reliance Energy Limited and execute infrastructure projects.

Reliance Energy Limited is engaged in developing roads, bridges, metro rail and real estate projects. Some of the prominent assignments include 4 laning of five National Highway projects in Tamil Nadu covering a length of 400 kilometer, the 20 kilometer Western Freeway Sea link Project in Mumbai, the INR 6,000 crore project for the construction of a 12 lane 150 kilometer highway around Jaipur and the metro rail project in Mumbai.

A consortium led by Reliance Energy Limited has emerged as the preferred bidder for the development of a new business district spread over 77 acres in Hyderabad, which includes construction of a 100 storey trade tower at an investment of INR 6,500 crore.

TIL plans equipment finance JV with Caterpillar

BS reported that TIL, formerly known as Tractors India, will have a significant stake in a finance JV, whose objective would be to finance construction equipment, especially those certified by Caterpillar.

The finance company will be jointly promoted by TIL, Singapore based Caterpillar Services Asia and another Indian promoter.

A source said that the proposal to set up the company is still at an early stage but the company will be based in South India. The board of directors of TIL approved the proposal for investment in the JV finance company.

TIL has been a growth partner to India's infrastructure sector and is one of India's leading providers of a wide range of technology intensive equipment for infrastructure development that represent some of the finest in global technology.

Transafe to set up 3 more container making units

It is reported that logistics equipment provider Transafe Services Limited has decided to ramp up its container manufacturing capacity at an investment of INR 100 crore. It plans to set up three Greenfield facilities at Daruhera in Haryana, Kharagpur in West Bengal and at Coimbatore in Tamil Nadu. ICICI Ventures holds a 71% stake and Balmer Lawrie holds the rest 29% stake in TSL.

Mr GK Mukherjea MD of Transafe Services said that “At present, we have a capacity of producing 300 containers per month. The new facilities will help us to add another 700 containers. This will enable us to handle the domestic market.” He added that it plans to achieve an INR 700 crore turnover by 2010.

At present, Transafe has two small units at Howrah and Delhi. It also manages the specialty container facility of Balmer Lawrie, located at Coimbatore. These custom built containers will be manufactured for oil exploration, EPC, defense, space research etc and also for movement of perishables.

Update on Gopalpur Port development

It is reported that the uncertainty over functioning of Gopalpur port has been cleared with the arrival of an iron ore loaded goods train.

Gopalpur Port, which was earlier managed by the state government was entrusted to Orissa Stevedores Limited in 2006 to be developed into a full fledged all weather port by Orissa Stevedores Limited on a build own operate share transfer basis for a concession period of 30 years. On completion of 30 years, the developed port will be handed over to the state government. However, the private operator would also have to share its gross revenue with the state government.

While the minor Gopalpur port was spread over 282.755 acres the planned all weather port will come up on 513.786 acres. As per the notification by the state government the district administration has already initiated measures to hand over land to Orissa Stevedores Limited besides leasing out some stone quarries.

As per the initial plans, the port would be developed in 2 phases at INR 720 crore. The first phase of the project would involve up gradation and rehabilitation of the existing minor port at INR 20 crore. Phase II involves an investment of INR 700 crore for the development of the port into an all weather one.

PGCIL announces Q2 results

Power Grid Corporation of India Limited has announced the following unaudited results for the July to September 2007 quarter

PGCIL has posted a profit after tax of INR 3712.2 million for the July to September 2007 quarter and total income of INR 11081 million.

Till September 2007 it has commissioned projects worth INR 3,360 crore as against INR 1,779 crore in September 2006."

Strike called off at Triveni Engineering Bangalore unit

With reference to the earlier announcement dated October 11th 2007, Triveni Engineering & Industries Limited has informed the BSE that the workers of the company's Turbine Business Group at Bangalore have called off their strike from November 3rd 2007 and have resumed duty.

Iron ore price negotiations – CSN sees minimum 40% increase

It is reported that Mr Benjamin Steinbruch president of CSN recently indicated that the iron ore prices for 2008 will increase at least by 40% due to strong demand.

CSN expects to produce 45 million tonnes of iron ore in 2008, with 35 million tonnes coming from Casa de Pedra mine and 10 million tonnes from CFM mine.

RBCT thermal coal price for February reach record levels

Reuters reported that prices for prompt loading South African thermal coal cargoes reached a new record this week with a trade at USD 85 a tonne FOB for a February 2008 cargo as against USD 82levels in previous week.

As per report, a January Panamax cargo was bid at USD 84.35 and offered at USD 84.90 on electronic trading platform globalCOAL, a February Capesize was bid at USD 84.40 and a Panamax was offered against it at USD 85. There was a Q2 panamax a month bid at USD 82 and offered at USD 84.75.

Strong Indian demand and tight supply has pushed South African prices up to record levels from around USD 47 per tonne FOB at the beginning of 2007.

ArcelorMittal gets approval for Senegal iron ore project

Reuters reported that ArcelorMittal announced that it has been granted the go-ahead for an iron ore mining project in Senegal.

It said that once the mine and infrastructure, for a total investment of USD 2.2 billion, had been developed, it would be able to produce 25 million tonnes per year of high grade iron ore.

Rio Tinto offer for Alcan reached 90% threshold level

Rio Tinto announced that approximately 90.2% or 339,339,000 shares of the outstanding common shares of Alcan Inc have been validly deposited and taken up under the offer by Rio Tinto Canada Holding Inc to acquire all of the shares of Alcan.

Rio Tinto Canada Holding is now entitled to acquire all the remaining Alcan shares by way of compulsory acquisition under the Canada Business Corporations Act. Rio Tinto Canada Holding will exercise these rights promptly after the expiry of the Offer.

All additional validly deposited shares during the balance of the Offer period will be taken up daily and payment for such shares will be made to the depositary within two business days of take up. Shares covered by notices of guaranteed delivery will be taken up when the certificates representing them are delivered to the depositary. The Offer expires at 6:00PM Canadian Eastern Time on November 8, 2007.

Indonesia to decide on HR AD case by year end

It is reported that Indonesia will make its final decision on alleged hot rolled coil dumping by suppliers from five countries before December 27th 2007. Suppliers from China, Russia, Taiwan, Thailand and South Korea have been accused of selling HRC at dumping prices in the country.

Mr Halida Miljani head of the Indonesian Anti Dumping Committee KADI said the agency is still verifying data provided by the five countries and compared them with data from the petitioners led by state owned steel maker PT Krakatau Steel.

Mr Halide said the anti dumping import duties will be set based on data provided by those cooperative in the investigation, otherwise we will use data provided by Krakatau Steel.

Earlier KADI said it will send investigating team to China and Taiwan to find confirmation of doubtful data they have provided.

Australian mining tycoons take road access battle to court

Australia media reported that two of Australia's wealthiest mining tycoons are fighting in court over access to a dusty outback road in Australia's iron ore rich Pilbara. A judgment by the Karratha Warden's Court has been reserved.

Mrs Gina Rinehart of Hancock Prospecting is trying to stop Mr Andrew Forrest’s FMG from using the Nullagine Road which crosses tenements owned by her firm.

The road is the only way FMG can access its multi billion dollar Cloudbreak mine. If Mrs Rinehart's legal action is successful, FMG will need to spend AUD 10 million to build a new access road.

Kobe Steel revises forecast for 2007

Kobe Steel Ltd announces that it has revised its forecast for fiscal 2007, ending March 2008, from the previous forecast made on July 31st 2007 when it announced its Q1 financial results.

Forecast for fiscal 2007 (April 1st 2007 to March 31st 2008)

Consolidated forecast

(In billions of JPY)

2. Non consolidated forecast

(In billions of JPY)

Kobe steel said that “The new forecast announced for the half year ended September 30, 2007 anticipates consolidated net sales of JPY 1,040 billion an increase from the previous forecast. In the Iron and Steel segment, steel prices rose on the back of firm demand and in the Construction Machinery segment sales volume of construction equipment went up owing to the continued strong market.”

Kobe steel’s operating income for the first half of fiscal 2007 is forecast to rise to JPY 95 billion with ordinary income of JPY 75 billion and net income of JPY 44 billion. Profits are expected to increase due to improved steel prices and higher sales volume of construction machinery. In addition, the Machinery segment benefited from cost reductions mainly in the engineering field.

It added that in the second half of the fiscal year, the slowdown in the US economy; the higher supply capacity of Chinese manufacturers, which affects the market; and other trends are factors of concern. However, the demand environment covering Kobe Steel's businesses is anticipated to continue being firm both in Japan and overseas. As a result, consolidated net sales for fiscal 2007 are forecast to be JPY 2,150 billion, an increase from the previous forecast. Operating income is anticipated to increase to JPY 195 billion and ordinary income is to increase to JPY 150 billion, with net income to rise to JPY 90 billion.

Kobe Steel said that the non consolidated net sales for the first half of fiscal 2007 are forecast to reach JPY 626 billion in comparison to the previous forecast. Operating income is forecast to increase to 52 billion and ordinary income is to rise to JPY 49 billion. Net income is anticipated to be JPY 25 billion. For the full fiscal year, non consolidated sales are anticipated to rise to JPY 1,290 billion with operating income increasing to JPY 105 billion. Ordinary income is to go up to JPY 85 billion and net income is forecast to grow to JPY 47 billion.

Protestors block coal ships in Newcastle

AAP reported that protesters on kayaks and canoes blocked the Newcastle shipping channel to protest against the expansion of the coal export industry.

More than 100 protesters formed a flotilla in NSW's north coast Newcastle harbor to stop coal ships passing in and out of the harbor. The climate change protesters blocked the port for four and a half hours. Water police escorted two coal ships through the blockade at 8.30AM and 2.30PM.

Ms Kerry Nettle Greens NSW senator was one of the protesters while hundreds lined the shore demonstrating with banners and placards. Senator Nettle claimed the action had delayed the transport of coal which when burnt would put 1.66 million tonnes of CO2 into the atmosphere. She said "If Labor and the government were serious about stopping climate change they would have a plan for the transition from dirty coal to renewable energy, but they do not.”

Ms Georgina Wood from Rising Tide Newcastle action group said that this third protest against the proposed third coal export terminal was another success. She said "It is clear the community is calling for change, and that our governments need to heed that call." Ms Wood said more peaceful direct action protests were planned for the coming weeks.

Japanese steel majors log record sales in H1

Its is reported that all four major Japanese steelmakers renewed record group sales in April to September 2007 period, due to strong demand for automobiles and shipbuilding. But Kobe Steel Ltd and Sumitomo Metal Industries Ltd suffered falls in profits, due mainly to a price surge in such materials as iron ore and nickel.

The release added that industry leader Nippon Steel Corp managed to post profit increases thanks to revenue growth at its subsidiaries.

JFE Holdings Inc increased its profits through cost cutting efforts and a hike in prices of products mainly for export.

Kobe Steel secured a profit increase in its machinery operations. But the company logged an operating loss in its mainstay iron and steel operations due to a surge in material costs and other factors.

Sumitomo Metal's profits declined, due mainly to a drop in dividend receipts from Sumco Corp an affiliated silicon wafer maker.

Scrap demand jumps high in US but down in Japan

It is reported that scrap market in Asia remains sluggish due to price drop in Japan. The reason Japanese steel scrap lower down the price is the new regulation restriction for construction and it causes the demand for construction steel to reduce sharply by 2 million tonnes.
The report added that US export scrap remains strongly for two main reasons. Lion Group from Singapore bid for US scraps from west coast at USD 395 per tonnes C&F and the ocean freight costs increase dramatically. These factors lead the US stop offering scrap.

Hong Kong scarp price is also firm at USD 355 per tonnes C&F. Besides, China Steel Cop in Taiwan held a scrap auction at October 30th 2007 to buy 30,000 tonnes of Bonus level scrap. The suppliers provide the basic bid starting from USD 420 to USD 430 per tonnes C&F.

SMS exits plastics technology business

Germany’s SMS GmbH of Düsseldorf announced that it has now sold its last remaining company in the plastics technology sector, Battenfeld Gloucester Engineering Co Ltd based at Gloucester in USA. The buyer is a US Management Buyout Group led by investor group Mousam Ventures LLC.

Battenfeld Gloucester achieves sales of close to USD 100 million with a workforce of 280 and is a leader in plant production for film and foil technology.

The sale is part of the SMS group’s move to focus on its core business, metallurgical machine and plant construction, marketed under the SMS metallurgy. It was this strategy that in October 2006 led SMS GmbH to sell its plastics machinery companies for Injection Molding Technology and in March 2007 its Extrusion Technology Division to investors.

Mousam Ventures aims to expand BGE’s business, concentrating on delivering the highest return on investment to its customers through enhanced product and process development and enhanced customer service.

South Korean moly demand to recover this month

Platts reported that South Korean demand for spot ferromolybdenum and moly oxide is expected to recover somewhat in November after slowing down since summer on the back of reduced stainless steel production.

A company official said that Korean steelmaker was considering issuing a buy tender in late November seeking ferromolybdenum, the first time since summer. It added that the company, which normally sources 100 tonnes or more of molybdenum through monthly tenders, is ratcheting up its rates after cutting back output of specialty steel in summer.

Domestic ferromoly prices are currently around USD 72 per kilogram delivered, which is USD 1 to USD 2 per kilogram lower than import prices on a CIF basis. South Korea also levies a 3% import tariff on ferromoly.

A second steelmaker source said reduced demand as a result of stainless steel output cuts and competition among the four domestic ferromoly producers had pressured domestic prices down. Meanwhile, a source close to South Korea's only moly oxide producer said the company's 6,000 tonnes per year moly oxide plant was running at reduced rates this month. As a result, this company is seeking to import moly oxide on a spot basis.

Industry sources said they had heard the plant had two major problems: shortage of molybdenum concentrate supply, and higher than expected copper content in the concentrate causing problems at the plant's leaching facility. But the moly oxide producer declined to comment on the problem. However, an official at a steelmaker that buys from this producer on a contract basis said that moly oxide delivery to his company had not been affected yet.

Summary of Japan’s heavy plate export in August

YIEH reported that Japan exported 35,912 tonnes of heavy plate to China in August with average price at 83,000 per tonnes.

Meanwhile, Taiwan imported 1,728 tonnes of heavy plate from Japan with average price at 70,000 per tonnes, Hong Kong imported 343 tonnes with average price at 120,000 per tonnes, and Vietnam’s occupied 1,810 tonnes with average price at 57,000 per tonnes.

China imported total 202,086 tonnes heavy plate from January to August, with average price at 79,000 per tonnes. The figures for Taiwan, Hong Kong, Vietnam were 7,567 tonnes with average price at 67,000 per tonnes, 3,311 tonnes with average price 121,000 per tonnes, and 13,809 tonnes with average price at 69,000 per tonnes respectively.

Peru government trying to avert nationwide mining strike

Peru’s government said on October 29th 2007, that it is trying to avert a nationwide mining strike that is slated to start next week, which could cut mineral exports, the backbone of the Andean country’s economy. The government wants to prevent a strike from starting on November 5th 2007 and keep up mineral exports.

Unions in Peru, the world’s third largest producer of copper and zinc and a major supplier of precious metals, want a bigger share of lofty global metals prices. As per report Unions want to pressure the government to clamp down on outsourcing by companies, cut minimum retirement ages and give workers the right to return to state run pension funds.

Mr Jesus del Castillo director of the federation of unions planning the strike said that “A lot of their requests depend on legislative changes in Congress and not on us. He said that he wants to see a clear sign this week that the government will change work rules. 22 of 74 unions in the federation have formally told the government they will strike on November 5 and that the others will do the same this week.

Mr Jorge Villasante labor ministry of Peru said that "Today and tomorrow we will hold meetings within the government and with union leaders.” Mr Villasante said that only a half dozen unions have filed paperwork on the strike. Separately, the government has been negotiating for a week with the union of Barrick Gold’s Pierina mine to avoid a strike. He added that over the weekend, the government set a new wage for union workers of Southern Copper in Peru after negotiating an end to an eight day strike this month.

Harsco to increase services at ArcelorMittal Tubarao

Worldwide industrial services company Harsco Corporation announced that its MultiServ mill services division has received a 10 year contract extension from ArcelorMittal Tubarao which will support the plant's expansion from 5 million tonnes to 7.5 million tonnes of slabs per year.

The contract extension includes nearly USD 60 million in added new services and continues MultiServ's 12 year support of this client's core processes. The contract adds important new service elements for the handling, processing and recovery of metallic content from the mill's Basic Oxygen Furnace.

Seismic bounce shuts down section of Sufco Coal mine in Utah

It is reported that US government ordered the shutdown of one section of a Utah coal mine because of a seismic bounce, an event similar to the collapse that entombed six miners at another Utah mine in August 2007.

Federal mining regulators closed the longwall portion of the Sufco coal mine near Salina in Utah following a 2.8 magnitude shock there.

Sufco's owner, Arch Coal Co, said that the bounce caused the mine's floor to heave upward, burying the tailgate of a longwall mining machine in coal rubble. It said that nobody was injured.

It is not certain when or if the section of mine will reopen.

Teck Cominco cuts production forecast at Lennard Shelf mine

Metals Insider reported that Canadian producer Teck Cominco has cut 2007 production guidance at its 50% owned Lennard Shelf mine in Australia to 40,000 tonnes to 45,000 tonnes of contained zinc from 58,000 tonnes due to difficult mining conditions.

Lennard Shelf, which is jointly owned with Xstrata, was re opened earlier this year after being idled at the end of 2003. Cumulative production through the third quarter totaled 30,200 tonnes of contained zinc and 8,900 tonnes of contained lead.

Sumitomo Metals raises dividend forecast for FY 2007

Sumitomo Metal Industries Ltd has announced that its board of directors resolved to raise the annual dividend forecast for fiscal 2007 to JPY 10 yen per share.

Dividend forecast

(JPY per share)

Sumitomo Metals expects to generate strong recurring profit in fiscal 2007 for the third consecutive year. It has also increased its financial stability while at the same time investing in facilities in executing its strategy of accelerating distinctiveness. Taking into consideration these factors, the board resolved to set the interim dividend for fiscal 2007 at JPY 5 per share and raised its forecast for the year end dividend to JPY 5 per share. The revised annual dividend forecast of JPY 10 per share would represent a JPY 2 increase on the previous fiscal year's dividend.

InterMet signs option agreement for Mt Lucy iron ore project

Australian Business News reported that InterMet Resources has continued to build on its portfolio of iron projects with the signing of an option agreement over an iron ore project at Mt Lucy in northern Queensland.

Mt Lucy comprises a hill of ironstone rising approximately 100 meter above the plain and approximately 300 meter long. To the southeast the ironstone ends abruptly, but to the northwest it can be traced down the flank of the ridge and across the flats in a series of rubbly sub crops for several hundred meters to another low ironstone outcrop that lies alongside the highway.

The ironstone unit extends for approximately 800 meter from the top of Mt Lucy to the small rise near the highway. InterMet is targeting a potential high grade magnetite deposit up to 10 million tonnes based on a thickness of 80meter. InterMet will scope the possibility of mining the hill to add to other potential iron resources at Paddy and Mt Ruby, while undertaking further drilling to define the depth and the continuation of the mineralisation.

Mt Lucy was mined in the early 1900s providing iron to the smelter at Chillagoe. Mt Lucy has not received any serious exploration as an iron ore prospect.

Red Dog mine sales up in Q3 of 2007

Metals Insider reported that the giant Red Dog mine in Alaska made accelerated sales of lead concentrate in the Q3 of 2007 due to high demand from smelters.

The company said Red Dog sold two thirds of its annual production in Q3 of 2007 due to strong smelter demand. Sales totaled 91,300 tonnes in Q3 as compared with 52,900 tonnes in the Q3 of 2006.

Production of lead increased to 36,000 tonnes in Q3 of 2007 from 32,900 tonnes in Q3 of 2006 due to mine sequencing. Zinc production at 154,400 tonnes was steady compared with 155,300 tonnes in the year-earlier period.

Zinc sales at 177,800 tonnes were up on 117,200 tonnes in the year earlier period, when the mine’s limited summer shipping season was affected by poor weather conditions.

Gloucester coal sales up by 2% in Sep quarter

It is reported that Gloucester Coal Ltd increased coal sales 2% to 497kilo tones in the July to September quarter 2007 from 488 kilo tonnes a year earlier.

Total coal sales were in line with the corresponding period in 2006, with a slight bias towards coking coal sales. These restraints resulted in total site product coal inventory increasing 12 kilo tonnes from June 30th 2007 to 170 kilo tonnes.

Total ROM coal delivered to the Stratford Coal Handling and Preparation Plant fell 6% to 809 kilo tonnes from 763 kilo tonnes and total production at the plant was down 4% to 475 kilo tonnes from 495 kilo tonnes.

Production from the company's four pits was marginally lower, primarily due to a decline in co-disposal mining partially offset by an increase in Roseville.

Synalloy Corporation 3Q profit rises by 11%

Synalloy Corporation has announced its net earning of USD 2.26 million for the third quarter of 2007 an increase of 11% from 2006.

According to Synalloy Corporation sales were around USD 51 million in the same quarter increasing by 32% from 2006. The company’s net earnings were some USD 8.98 million for the first 9 months of this year.

Synalloy Corporation notes that the demand of commodity pipe is falling recently. The reason causing weakened demand is that the distributors are still waiting for the falling of stainless surcharges.

Synalloy Corporation is a producer of specialty chemicals, pigments, stainless steel pipe, vessels and process equipment.

Metals USA reports Q3 results

Metals USA Inc, a wholly owned subsidiary of Metals USA Holdings Corp through its wholly owned subsidiary Flag Intermediate Holdings Corporation, announced its operating results for July to September 2007 quarter.

Its sales revenues for the July to September 2007 quarter was USD 469.6 million were lower than third quarter prior year sales of USD 477.6 million by USD 8 million. Adjusted EBITDA, a non GAAP financial measure used by Metals USA and its creditors to monitor the performance of the business, was USD 36.2 million for the July to September 2007 quarter, a number USD 12.3 million lower than July to September 2006 quarter.

Metals USA recognized USD 5.2 million in depreciation and amortization expenses during the quarter. Interest expense for the July to September 2007 quarter was USD 14.4 million. Operating income, the GAAP measure that we believe is most comparable to Adjusted EBITDA, was USD 29.3 million. Third quarter 2007 operating income was USD 13.6 million lower than July to September 2006 quarter.

Mr Lourenco Goncalves chairman, president & CEO. Metal USA said that "The third quarter was a challenging quarter in the service center industry, with tight metal supply, declining surcharge values in stainless and soft demand in certain sectors of the economy, particularly affecting our Building Products business. Despite these challenges, Metals USA was still able to deliver decent results in Q3."

Mr Goncalves added that "We continue to see deficits in the availability of steel raw material inputs world wide and this should keep steel supply relatively low for the foreseeable future. Additionally, the weak US Dollar should continue to limit the presence of imports into the US. All things considered, we are confident the inconsistent movement of indicators is just noise associated with a market in transition and that consistent profits will continue in Q4 and beyond."

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets. In its Building Products Division, Metals USA is the largest manufacturer of patio products and stone-coated steel roofing products in North America, primarily serving the home remodeling industry.

Red Rock to explore iron ore at its Mt. Alfred property

Red Rock Resources announced that it is planning an exploration program at its wholly owned Mt Alfred tenement in Western Australia to assess its iron ore and copper potential after recent encouraging results from two other companies active in the immediate vicinity of this tenement.

Mt Alfred is the largest tenement within the company's 210 square kilometer Mt Alfred license, 120 kilometer to the west of Leonora. This license hosts large areas of Banded Iron Formation, including multiple horizons from 15 meter to 100 meter thick which extend along 14 kilometer of strike and form a prominent line of hills standing up to 90m above the surrounding plain level.

When Red Rock entered into an option agreement with Jupiter Mines earlier this year over certain of the company iron ore tenements in this area of WA, Mt Alfred was not included but was retained by Red Rock. Jupiter recently completed a drilling program at Mt Mason, on the boundary of the licenses which Red Rock sold to Jupiter whilst retaining a royalty interest in them. The results were considered encouraging by the Jupiter directors.

Significant results have also been returned from recent exploration of neighboring areas by ASX-listed Iron Mountain Mining. These include the definition of 8.8km of mineralized strike at the Iron Mountain, Mt Alfred and Brooking prospects within its license. A program of RAB drilling is planned to commence in mid October.

Iron Mountain also announced that rock chip sampling within a sequence of BIF and ferruginous sediments at the Iron Mountain prospect returned an average value of 61.3% iron over a strike length of 2 kilometer. At Mt Alfred, 8 samples averaged 58.5% iron over 2.8 kilometer of strike and 6 samples averaged 59.1% iron over 4 kilometer at Brooking. These three prospects form a continuation of the trend that runs through Red Rock's Mt Alfred license. Iron Mountain's Mt Alfred prospect lies directly north of and crosses into Red Rock's license.

Mr Andrew Bell chairman of Red Rock said “The company is particularly encouraged by the Iron Mountain results and the market's reaction to them with its share price initially quadrupling to 60c. Red Rock's Mt Alfred iron ore property adjoins that of Iron Mountain, with 10 kilometer to 12 kilometer of similar BIF right on strikes. We would like to investigate the potential of our tenement as soon as possible.”

Technip orders new pipe laying vessel to STX Heavy of South Korea

It is reported that Technip has awarded STX Heavy Industries in South Korea a contract for construction of a new pipe laying vessel. With a transit speed of 20 knots, she has been specifically designed to minimize intercontinental transits and allow for efficient deployment in all deep water regions of the world.

The contract with the Korean yard covers detailed design, construction, outfitting and commissioning of all marine aspects, including the installation of all underdeck pipelay equipment. The remainder of the pipelay system will be installed and commissioned at a later date at the pipelay supplier's facilities.

The vessel will have twin 2,800 tonne reels and a top tension capacity of 450 tonnes for laying rigid steel pipes and flexible products up to 18inch in diameter through a dedicated lay tower installed at the stern. The vessel will also be equipped with a 150 tonne crane, a PLET handling system and accommodation for 140 people. The new vessel is scheduled for delivery in 2010.


Mr Thierry Pilenko chairman & CEO of Technip's said that "This major investment in a state of the art vessel is part of our fleet development strategy. It will strengthen the Group's presence on the high growth subsea market and respond to a demand which is evolving towards developments requiring high technological added value at increasing water depths."

Claymont announces plate price hike

Purchasingdata.com reported that US based Claymont Steel has announced a USD 20 per tonnes price increase on plate effective December 30th 2007, because of expected shrunken inventories and extended lead times by then.

Claymont sales personnel believe a decline in imports and an increase in exports, bolstered by the weak dollar, are keeping the domestic market tight. However buyers may not agree.

Earlier ArcelorMittal also announced a USD 20 per tones price increase to USD 800 for September that did not stick. Buyers just said that no. Cut to length carbon steel plate was USD 767 per tones in October.

Anglo American's coal and platinum operations recognized for sustainability work

Anglo American's coal and platinum businesses have been recognized at South Africa's Nedbank Capital Green Mining Awards.

Anglo Platinum's Amandelbult Mine won the Environmental category for its Environmental Management System which, since it was implemented in 2000, has improved environmental risk identification and impact management at the mine. As part of the Environmental Management System, a reverse osmosis water treatment plant has been implemented and land has been fenced-off to help protect and nurture species endemic to the region.

Anglo Coal and BHP Billiton Energy Coal South Africa Emalahleni Water Reclamation Project won the Sustainability Award. Described as a world class project and an exemplary model for development', this pioneering private public partnership with the Emalahleni Local Municipality removes water from the underground workings of Anglo Coal's Landau, Greenside and Kleinkopje collieries, as well as from BHP Billiton's closed South Witbank Mine. It desalinates this to potable quality for supply to the water-stressed municipality's final reservoirs.

The Nedbank Capital Green Mining Awards recognize mining and beneficiation companies across Africa for their contribution to sustainability in four categories sustainability, environmental, socio economic and limited resources.

Qatar Steel confirms investment in Mauritania iron ore project

Qatar Steel Company announced that it has confirmed its purchase of 15% and that it has also received board approval to acquire an additional 34.9% interest in the Guelb el Aouj Iron Ore Project in Northern Mauritania for a total consideration of USD 375 million for 49.9% of the project.

The project is currently owned equally by Australian iron ore miner Sphere and the Mauritanian state owned iron ore company, Société Nationale Industrielle et Minière. Earlier this year, Sphere and SNIM had conditionally agreed to sell 49.9% of the project to potential partners including Qatar Steel.

Sheikh Nasser Hamad Al Thani director & GM of Qatar Steel said “Our involvement reflects our strong confidence in the Guelb el Aouj Project. We look forward to working together with all parties to bring the Project successfully to fruition in the soonest practicable timeframe and, with the support of SNIM, Sphere and the Government of Mauritania, to jointly develop expansion projects based on the extensive resources in the joint venture area in consultation with our other regional partners.”

As previously announced, a new operating company will now be established and will be responsible for developing the first 7 million tonnes per annum Direct Reduction pellet project following completion of the BFS expected in January 2008.

Sabic quits Mauritania project due to low ROI

Saudi Basic Industries Corp announced that it has decided against taking part in a USD 1.5 billion Mauritania iron project because returns would be too low. It said that "Sabic has turned away from getting involved in this partnership because the return on investment does not achieve what Sabic hopes for.”

Saudi Arab’s state controlled SABIC had said in July 2007 that it would join partners including Australia's Sphere Investments Ltd in the project to produce high quality iron ore. Mauritanian iron ore producer Societe Nationale Industrielle et Miniere and Industries Qatar were also part of the group.

Sabic had agreed to invest USD 262 million for a 35% stake in the project, which would entitle Sabic to 35% of the production, Morished had said. Sabic had also planned to buy the SNIM and Sphere's share of production of iron ore.

Q Coat seminar creates awareness about epoxy coated rebars

It is reported that Qatar Metals Coating Company recently organized a technical seminar at Doha's Marriott hotel to bring key players from the end users, consultants, contractors, traders and senior officials from ministries and government departments together and explain the technical aspects of fusion bonded epoxy coated rebars

Q Coat is upbeat about its endeavor to create more awareness and demand for fusion bonded epoxy coated rebars in Qatar as it embarks on an ambitious and comprehensive marketing drive.

Mr Ali Al Muraikhi director and GM of Q-Coat said "As Qatar's economy continues to boom, we see our responsibility of contributing to the growth of its construction industry by continuing to provide solutions to the problem of corrosion. This call for a sustained effort from our side is to improve awareness of the benefits of using epoxy coated re bars. We are confident that through this seminar we will go a long way in establishing our strong link with the specifying and user community.”

Q-Coat was founded in 1990 as a JV between Qatar Steel Company and Qatar Industrial Manufacturing Company with a vision to provide a solution for corrosion. Through high quality fusion bonded epoxy coating on the black bars procured from Qatar Steel, the company has established its credentials in Qatar. Initially from a capacity of 60,000 tonnes per year, the company has expanded its facilities with an additional investment of QR 20 million to increase capacity to 100,000 tonnes per year, making it the largest epoxy coating plant in the region.

US warns of risk to Mosul dam in Iraq

According to a report published by the Special Inspector General for Iraq Reconstruction on October 30th 2007, a USD 27 million US funded project to reinforce Iraq’s largest dam at Mosul has been mismanaged.

The SIGIR report said that “In terms of internal erosion potential of the foundation, Mosul Dam is the most dangerous dam in the world. If a small problem at Mosul dam occurs, failure is likely.” A failure of the dam could create a 20 meter high flood wave, putting 500,000 people at risk.

The audit found a number of the 21 contracts awarded on the project had suffered from faulty construction and the delivery of incorrect parts and some work was incomplete despite contractors being paid in full.

The dam, on the Tigris River of Mosul, was built in 1984. It is located on top of water soluble gypsum, which has led to problems with seepage. In September 2006, the US Army Corps of Engineers identified the dam as a major risk.

Indian investors keen on gas and steel sector in Qatar

Mr Murli Deora Indian minister of petroleum and natural gas recently said that Indian investors are willing to take up minor stakes in gas projects in Qatar. Mr Deora, while taking part in the 6th Doha Conference on Natural Gas meet, said that "Indian companies are interested in participation, including equity stake in the various opportunities and projects in the hydrocarbon, steel and cement sectors in Qatar."

He said that "The relations between the 2 countries would further expand through mutual investments in the energy sector. The Indian gas market is emerging as a mature market. In recent years, the Indian gas sector has received progressively greater attention from global companies and has made rapid strides on the upstream front. More than 160 blocks have so far been awarded through six bidding rounds under our new exploration and licensing policy."

Mr Deora said India has a large demand for natural gas and that with 8% to 9% annual growth, the country is looking for large supplies of natural gas to meet the growing energy demand.

With 5 million tonnes per annum of gas being supplied, India is currently one of Qatar's biggest gas customers and by 2009 the supply would be increased by an additional 2.5 million tonnes per annum bringing the total to 7.5 tonnes per annum of gas.

Brush LLC starts up new power transformers plant in Abu Dhabi

Brush Transformer Gulf LLC, a JV between Abu Dhabi Al Nasser Industrial Enterprises and Brush Transformers Gulf LLC of UK, has announced the starting of the first dedicated power transformer plant in the Middle East.

The plant located at the Industrial City of Abu Dhabi in Mussafah, was officially opened recently by Mr Abdulla Nasser Hawaileel Al Mansoori chairman of Al Nasser and Mr Paul Heiden CEO of FKI plc, the parent company of Brush Transformers Ltd. Tit will manufacture power transformers of capacity between 33 KV to 132 KV voltage class, up to 90 MVA, which are widely used in the transmission of power from a generating plant to the end user.

Mr Heiden said that "This partnership between Brush and Al Nasser is an opportunity for Brush to continue serving our long standing and valued customers in the region, with an improved level of local support."

Mr Abdulla Nasser Al Mansoori chairman of Al Nasser Enterprises said that this landmark project is a pioneering initiative for the UAE industrial sector. Local transformer production will support the industrial growth of the whole region, where economic growth and industrialization have spurred the demand for power transformers. He added that "The new facility is also an example of economic growth leading to industrial diversification, which feeds back into the local economy."

Mr Tim Walker GM of Brush Transformers Gulf said that "The production of units here will reduce delivery times, shipping costs and the possibility of damage during transportation. Dedicated treatment and a high level of support will be given to our local customers by our specialist team of support service engineers."

Saudi Arabic desalination project cost up by 25%

Reuters reported that several global companies are arranging financing for a power and water desalination plant in Saudi Arabia, which is likely to cost around 25% more than the initial estimate of USD 3 billion. Bankers who have been approached by bidders to arrange financing for the project said the figure was likely to have risen by about 25%. A banker told Reuters that "Ras Azzour will cost about USD 4 billion."

Mr Mrimal Sungupta an adviser at Water & Electricity Co estimated that the Ras Azzour independent power and water project would cost about USD 3 billion, when it announced the tender earlier this year. He added that "The rise in costs of equipment suppliers and construction means the project is likely to be considerably more than original estimates."

10 groups are vying for the contract to build an oil fired power plant with a capacity of 850 MW to 1,000 MW and a desalination plant capable of processing 264 million gallons of water per day. Britain's International Power, France's Suez, Spain's Union Fenosa, Taiwan Cogeneration Corp, Japanese firms Marubeni Corp, Sumitomo Corp, Mitsubishi Corp and Abu Dhabi National Energy Co are part of the groups pre qualified to develop and operate the plant for 20 years.

HSBC is advising Water & Electricity, 50% owned by state controlled Saudi Electricity Co. National Commercial Bank, Saudi Arabia's largest lender by assets, is arranging a USD 1 billion Islamic facility for one of the bidders.

Alstom to build rail links in Morocco and Tunisia

French rail operator Alstom has announced a string of transport deals in Morocco and that it has been contracted to build a high speed rail link between Tangiers and Marrakech in a government to government deal worth about EUR 2 billion.

The 200 kilometer first stage of the line will link Tangiers and Kanitra, and is expected to be operational by 2013. Alstom will provide 18 double decker trains as part of the arrangement.

Mr Emilio Gallochio senior VP for southern Europe at Alstom said that “At the moment, it is still a government to government deal. The next stage is to finalise a commercial contract. We estimate this will take about 9 months.”

Alstom has also won a contract to supply Moroccan National Railways with 20 electric locomotives, in a deal worth EUR 74 million. The trains are to be delivered by 2010 for freight and passenger use on the rail network. The deal was signed on October 23rd 2007.

In Tunisia, Alstom is pushing through delivery of 25 trams for the Tunis urban transit network. It had won the EUR 70 million contract in 2004 but only recently started deliveries, with 6 trams in operation. The remaining vehicles will be delivered at a rate of one a month. Alstom is also bidding for the tram networks in Rabat and Dubai.

Chinese coal exports in 9 months down by 21% and imports up

Xinhua reported that China's exports of coal fell 20.9% in the first nine months of 2007 as compared with the same period last year, while imports rose by nearly half over the same period as the impact of export tariffs was felt.

According to the Chinese General Administration of Customs, exports fell to 38.01 million tonnes during January and September 2007 and imported totaled to 38.61 million tonnes up by 47.6%YoY.

China the world's largest coal producer began to levy a tariff of 5% on coal export from November 2006. As the domestic coal price has been on the rise recently as a result of robust demand, the nation's coal producers prefer to sell their products domestically.

Chinese nickel pig iron output to remain strong

Reuters reported that Chinese production of nickel pig iron, a lower grade nickel additive as compared to ferronickel, will continue as it has found itself a niche domestic market to feed.

Mr Andrew Mitchell an analyst at UK based consultant Brook Hunt said that "Nickel pig iron is here to stay. It has found itself a niche market. For 200 grade stainless steel producers, nickel pig iron is going to stick around for a while. There are factories being built to produce higher grade pig iron to feed their own stainless steel industry and the majority of the nickel pig iron production is mainly used for China's domestic consumption.”

However, state owned research group Antaike said in early October that the growth in Chinese nickel pig iron output would slow to 6% in 2008, from 183% this year as lower nickel prices and stricter government controls on new projects start to bite.

Chinese production of the alloy has exploded this year as small steel and ferroalloy makers in China switched to producing the material to escape a clampdown on small scale producers and to take advantage of soaring nickel prices. Consumption of nickel pig iron, surged in early May 2007 when nickel prices hit a record high of USD 51,800 per tonnes.

Chongqing to close 2.3 million tonne obsolete capacities by 2010

It is reported that Chongqing plans to wash out below 20 tonnes electric furnaces and below 300 cubic meter blast furnaces with total capacities of 2.3 million tons during 2007-2010 in an attempt to optimize industrial structure and realize effective utilization of resources.

According to relevant regulations of National Development and Reform Commission, Chongqing has accelerated obsolete steel capacity elimination in recent years

It has closed following facilities
1. Two 100 cubic meter blast furnaces
2. Two 620 cubic meter blast furnaces
3. Two 40 tonne open hearth furnaces
4. One 50 tonne open hearth furnace
5. One 70 tonne open hearth furnace
6. Two 2 15 tonne converters
7. Two 18 square meter sintering machine
8. One 27 square meter sintering machine
Total capacities amounted to 1.2 million tonnes.

Besides, by reorganizing obsolete small steelmakers, it has also weeded out 25 small steelmakers and 17 backward production lines with capacities of 1.2 million tons. So far it has eliminated 2.4 million tons of obsolete steel capacities, reducing annual sulfur dioxide emission of some 38,400 tons.

Xinxing Pipes ties up with Xijin Kuangye for FeSi supplies

Xinxing Pipes announced that it has signed strategic cooperation agreement with Inner Mongolia Erdos Xijin Kuangye Co Ltd on October 31st in Liaoning's Dalian to stabilize its FeSi supply needs. The cooperation lasts from Oct 1, 2007 to Dec 31, 2010 and may extend further to promote long-term and stable cooperation.

Both sides agree that Xinxing Pipes will purchase 1000 tonnes to 1500 tons of FeSi every month, approximately 90% of its total amount purchased from Xijin Kuangye and the latter will give priority to FeSi supply to the former when short supply emerges.

Xijin Kuangye will strictly carry out the agreement and improve product quality according to Xinxing Pipes' request. Both sides will ensure the equity of price, acceptance, settlement and payment and obey market rules to keep relative stability of transaction price. They will also gradually set up information exchange platform and take security measures.

With registered capital of CNY 200 million, Xijin Kuangye is mainly engaged in ferroalloy processing, smelting and selling.

Chinese safety watchdog warns of more coal mine accidents

Xinhua reported that China's State Administration of Work Safety has warned of a possible rise in the number of colliery accidents as coal production accelerates to meet winter demand. In its latest circular to its local branches, the administration identified the fourth quarter as the peak season for coal production and very susceptible to accidents."

The administration urged the branches to take effective measures to secure permanent improvements in mine safety. It ordered the closure of collieries that failed to meet safety requirements for thorough and comprehensive overhauls, with compulsory and strict inspections before production is resumed. It urged local branches to accelerate the closure of small mines which have accounted for two thirds of the deaths in coal mine accidents and claimed 3,431 lives last year alone. The circular said "Malpractice and illegal behavior must be stopped. All accidents must be handled immediately and strictly in line with laws."

The circular said 6 colliery accidents have left 41 people dead or missing during the week ending on October 28th 207. In an explosion in a colliery of southwestern China's Chongqing Municipality on October 25, at least 10 miners were killed. Early on Sunday, another 10 miners were trapped underground by flood at Lingxian Coal Mine in east China's Jiangxi Province, with only one rescued so far.

Chinese government has closed more than 9,000 small mines with a maximum annual capacity of 300,000 tons over the last two years and will shut another 1,000 by the end of this year.

Bombardier gets major railcar order from China Railways

Bombardier Inc has announced that its Chinese JV received an order for 640 high speed train cars from the Chinese Ministry of Railways. The order for Bombardier Sifang Power Transportation Ltd is valued at USD 1.5 billion with Bombardier's share totaling USD 596 million.

The trains will be made at Bombardier Sifang Power facilities in Qingdao, China. The order calls for delivering 40 of Bombardier's electric 16 car train sets, which are capable of reaching speeds of 250 kilometers an hour. Deliveries are scheduled for February 2009 to August 2010.

Bombardier said "It is the largest single order for rail passenger cars placed at one time in Chinese rail history."

Bombardier Sifang Power is a JV between Bombardier Transportation, Power Corp of Canada and China South Locomotive and Rolling Stock Industry (Group) Corporation.

Nanjing Q3 up by 91% YoY

It is reported that Nanjing Iron and Steel Company Ltd realized net profit CNY 260 million for the third quarter of 2007, increasing 91.02% from that of the same period in 2006.

Its net profit during January to September 2007 is reported at CNY 739 million driven by strong domestic demand for steel with firm price levels.

Nanjing Iron and Steel expanded the production and improved the product mix, therefore had an increased sale volume and sale price of the steel products, gaining a higher profit.

Nigeria negotiating coal exploitation deals with Chinese firms

It is reported that the Nigerian government has begun negotiations with some Chinese companies over the exploitation of Nigeria's abundant coal resources estimated at over 1.5 billion metric tonnes.

Mr Dennis Okafor MD of Nigerian Coal Corporation during an interview with Business Day said that approval has already been given to a Group of Chinese Companies to build seven power stations across the country using coal.

Mr Okafor said that “All over the world, coal has always been a major contributor to the energy demands of any nation. Around the world, it is the same everywhere. We cannot hide the fact that Nigeria is seriously endowed with coal resources. Studies done on coal deposits show that we have over 1.5 billion tonnes of black coal in Nigeria.”

Mr Okafor added that “We were at the Presidential Villa the other day when a Chinese Group of Companies came. They want to build about nine power plants within the country using coal. They have been given the go ahead order but they are still working out their modalities”

Nigerian government used to be the only operator in the coal industry. But since 2001, government decided that enough is enough that it would no longer be directly involved in the coal industry. To this end, the government decided that anything that has to do with mining should be given out to private companies to manage while it sits back as an administrator or regulator.

4 coal miners killed in Xinzhou county of Shanxi province

It is reported that 4 miners were reportedly killed when a coal mine in north China's Shanxi Province accidentally caved in.

The province's work safety bureau said five other miners are still strapped inside the mine located in Jingle county of Xinzhou City when its roof fell over them late Friday.

Seven miners escaped the accident unharmed. Rescue operations for the trapped miners have been initiated.

Just last month, a total of 12 persons were killed when in another coal mine in the same province when their houses collapsed into the mine hole.

Ukraine forms special team to submit plan for Kryviy Rih iron ore deposit

Ukrainian Journal reported that Mr Viktor Yushchenko president of Ukraine on Thursday ordered the creation of a special team to submit a plan within 10 days for attracting investors to launch a major iron ore deposit.

The deposit, known as Kryviy Rih Oxidized Ore Mining Plant is being pursued by ArcelorMittal as well as a rival Russian Ukrainian consortium.

Russia might stop buying pipe from Khartsyzsk – Report

Journal Staff citing Mr Leonid Ksaverchuk head of Ukrtruboprom pipe industry association as saying that Russia might stop buying large diameter pipe from Ukraine's Khartsyzsk Pipe Mill in 2008.

Metinvest Holding becomes permanent member of IISI

It is reported that the International Iron and Steel Institute has approved Metinvest Holding Ltd, the managing company of Metinvest as permanent member of the institute.

Russian export of non ferrous metals in 9 months

FIS reported that as indicated by the analysis of non ferrous metal exports for 9 months of 2007, Russia exported 178,100 tonnes of refined copper, including 175,100 tonnes to overseas countries and 3,000 tonnes to CIS countries.

Exports of nickel in January to August 2007 amounted to 166,800 tonnes, most of which were shipped outside of CIS countries.

Export of aluminum reached 2.588 million tonnes.

Russia's best metal bases and service centers to be announced on November 14th

FIS reported that at meeting of the contest committees on the determination of the results of the contests “Russia's Best Metal Base 2007” and “Russia's Best Metal Service Center 2007” took place on October 24th 2007.

The winners and laureates of the contest will be announced on November 14th 2007 at the inter industrial conference “Service Metal Centers in Russia: Equipment and Technology, Market Development Tendencies” to be held in the frame of the 13th international specialized exhibition 'Metall Expo 2007'.