SAIL BSP output up in April to October 2007

It is reported that Steel Authority of India Limited’s Bhilai Steel Plant has posted an improved performance during April to October 2007. Its hot metal production from BF NO 7 in October 2007 is 125,322 tonnes surpassing its previous best level of 118,157 tonnes achieved in September 2007.

During April to October 2007 period, BSP also recorded its best-ever production of boiler quality and high tensile plates, electrode-quality wire rods, TMT wire rods, TMT bars and UTS 90 rails.

During the period, its Rail & Structural Mill loaded 122,998 tonnes of 26 meter long rails, registering a growth of 33.9%. BSP also recorded 100% growth in production of boiler-quality plates.

India needs private miners in coal sector – PWC

According to Price Waterhouse Coopers, India needs private sector participation in coal mining to meet its surging demand for coal which is expected to touch around 730 million tonnes per annum by 2012.

Mr Dipesh Dipu principal consultant of PricewaterhouseCoopers recently said that "Private sector participation is a must for augmenting coal production. The centre has indeed made strides in this direction by allowing captive mining for various approved end usages. However, there is a need for streamlining the allocation process. The last round of coal block allocation started in December 2006 and the formal letters of allocation are yet to be issued even though the steering committee is believed to have submitted its recommendations."

According to Mr Dipu, domestic coal producers like Coal India Limited needed to scale up production to meet the burgeoning demand. He added that "CIL is expected to achieve a coal production of 520 million tonnes per annum by 2012 which is about 160 million tonnes per annum more than what it produced in 2006-07. Captive coal mining is expected to produce about 120 million tonnes per annum by 2012 which is four times current production. The remaining demand of 50 million tonnes per annum of coal will be met through imports."

He said that however, there are concerns regarding the ability of CIL and private coal companies in meeting targets as progress in implementing new mining projects have been slow. He hinted that procedural delays were causing slippages and increasing dependence on imports.

Mr Dipu said that "The economics of underground mining are not so favorable as compared to the surface mining methods. The constraints are also low from the productivity perspective as coal production from underground mines has traditionally been low in India. However with environmental concerns being more and more important, it may be worthwhile to consider underground methods with mass production capacities." He added that underground mining was expected to reduce procedural delays, cause less environmental damage and lower land need for waste dumping.

Domestic coal demand is expected to shoot up owing to planned thermal capacity addition of 78,577 MW targeted by 2012 including 10 ultra mega power projects, with coal demand projected at 730 million tonnes per annum by 2012 including power generation demand of 550mtpa. Apart from the power sector, the upcoming steel projects in India will fuel the demand for cooking coal in India.

At present, coal consumption in India was growing at about 6% per annum, a growth rate higher than the US rate but lower than China. India produced around 430 million tonnes per annum of coal in 2006 or 92% of demand. Despite plentiful coal reserves, India's coal production was low compared to US, which produced 990 million tonnes per annum of coal in 2006-07 and China, whose output was 2.4 billion ton in the same period.

HEC hopeful of signing MOU with SAIL by year end

IANS reported that state enterprise Heavy Engineering Corporation might soon sign a MoU with Steel Authority of India Limited for the supply of steel plant machinery. Mr GK Pillai CMD of HEC said “We are hopeful that an MoU between HEC and SAIL will be signed in December.”

Mr Pillai said “SAIL representatives visited our plant and held discussions with us. A report has been submitted to the central steel ministry. We are hopeful that the ministry will clear it and the MoU would be signed. Once the MoU with SAIL is signed, we can clinch a work order of around Rs.20 billion for next five years.”

Established in 1963, HEC makes blast furnaces, coke ovens, machine tools, forged rolls, steel melting converters, rolling mills and various other equipment required in the steel industry. But it became a loss making enterprise and was referred to the Board for Industrial and Financial Reconstruction. Two years ago, BIFR recommended HEC's closure. But the Jharkhand government opposed the recommendation and requested the central government to revive the company.

Indian Railway to form taskforce with Deutsche Bahn

BL reported that Indian Railways and German Deutsche Bahn have decided to set up a taskforce that would explore and identify the specific areas of co operation. The areas of co operation cover modernization and servicing of rolling stock, signaling and telecommunications, maintenance and servicing of rail lines, modernization of transport operations, technology for increasing speed of rail traffic and undertaking joint research projects.

The decision was taken at a meeting held between the Indian Railway board members and Mr Hartmut Mehdorn chairman & CEO of Deutsche Bahn.

Mr VN Mathur member traffic of Indian Railways said that “The taskforce would comprise officials from both Indian Railways and Deutsche Bahn. Specific areas of co operation include logistics parks and training.”

Indian Railways and Deutsche Bahn had signed a MoU in 2006 for enhancing co operation in railways related technology and developments.

Other international railways with which Indian Railways has had tie ups include the French Railways, the Russian Railways, the Austrian Railways, the South African Railways and the Italian Railways, for possible co operation in different areas. After entering into broad agreements, officials of the Indian Railways and other foreign railways follow up with joint working groups on the agreement to finalize possible areas of co operation.

CIL to close 60 loss making underground coal mines

BS reported that Coal India Limited has identified 60 underground mines across the country as unviable and fit for immediate closure. These mines reportedly result in losses amounting to over INR 1,000 crore annually.

The list of mines include
1. Eastern Coalfields Limited - 29
2. Bharat Coking Coal Limited – 21
3. Central Coalfields Limited – 4
5. North Eastern Coalfields Limited – 3
6. Western Coalfields Limited – 2
7. Mahanadi Coalfields Limited – 1

CIL will redeploy the 41,000 strong staff working in the 60 mines to other viable mines in the existing or adjoining coalfields. There would be no retrenchment or declaration of the staff as surplus.

There are around 290 underground coal mines in the country and CIL has identified as many as 254 mines as loss making, incurring losses of INR 3,084 crore.

Sponge Iron India Limited and NMDC merger likely by March 2008

It is reported that the Palaoncha based Sponge Iron India Limited will soon be able to find a permanent solution to the basic raw material problems being faced by it for quite some time as the stage has been set for the merger with the National Mineral Development Corporation Limited. According to Sponge Iron India Limited official sources, if everything goes well, the merger is likely to materialize some time before March 2008.

As per report, government has directed both the Sponge Iron India Limited and the NMDC to go ahead with the move. Both the boards have given the green signal for the merger proposal. Two directors of the NMDC visited Sponge Iron India Limited in July 2007 and took stock of the facilities and operations in the unit. The employees unions of the Sponge Iron India Limited also welcomed the merger move.

Sponge Iron India Limited is an enterprise with the centre owning 97.44% while the remaining was held by the Andhra Pradesh government. Sponge Iron India Limited has an installed capacity to manufacture 60,000 tonnes per annum of sponge iron. It has a captive power plant to generate 5 MW. It has been equipped with the necessary infrastructure besides owning some 320 acres of land.

The merger was recommended by the expert group constituted by the ministry of steel under the chairmanship of Mr BL Das, former secretary of steel, which studied the merger proposals between the various public sector undertakings under the ministry.

Mr Vijoy Kumar joins GPT Steel as MD

Mr Vijoy Kumar has joined GPT Steel Industries Limited as it new MD. He will be based in the group corporate office in Mumbai.

Mr Kumar is a steel industry veteran with more than 26 years of experience in production, quality control, marketing and project management. He has worked with steel majors including TATA Steel, Essar Steel and Kalyani Steel. His last assignment was as GM projects of TATA Steel’s Chattisgarh project.

GPT Steel is part of the diversified GPT group with in steel plants, steel pipes, service centers and power plants. GPT Groups has a cold rolling and tinning complex with a capacity of 650,000 tonnes per annum at Gandhidham and a 60,000 tonnes spiral pipe plant near Vadodara in the state of Gujarat. GPT Steel Industries Limited already has the largest Tinplate line in India and also 1728 mm, widest cold rolling line.

SAIL SSP ED retires

Mfr PM Balasubramanian executive director of Steel Authority of India Limited’s Salem Steel Plant has retired at the end of October after nearly three decades of service in the organization. The charge of the plant was handed over by Mr Balasubramanian to Mr KP Bharathan GM projects, in addition to his existing duties.

During his tenure, the company had made a record profit and sales in its Silver Jubilee year and its expansion project had also been sanctioned. A scroll of honor was presented to Mr Balasubramanian.

Mr. Balasubramanian said that the credit for all the achievements during his tenure as ED belonged to the team work of dedicated and hard working employees of the company.

HZL cuts zinc prices by 2.9%

Hindustan Zinc Limited announced on weekend a cut in zinc prices by 2.9% or INR 3,800 per tonne to INR 127,300 per tonne (USD 3,239) effective immediately.

HZL in a statement said that it has increased the price of lead by 0.3% or INR 500 per tonne to INR 160,400 per tonne.

India’s first power trading exchange IEX launched

BL reported that Power Trading Corporation and Financial Technologies have launched the country’s first power trading platform, Indian Energy Exchange, with an initial investment of INR 25 crore. Other investors in the exchange include Adani Enterprises, IDFC, Lanco Infratech, REC, Reliance Energy and Tata Power.

IEX will trade day ahead contracts where the buyers will put in the quantity and price quote, while the quantity of power available for trade will be fixed by Power Trading Corporation, which at present handles supplies through the national grid. The Exchange will charge a transaction fee of one paise per unit on the electronic platform, while it is now four paise a unit for orders placed over the phone.

Mr Venkat R Chary chairman of IEX said “Power is a perishable commodity. Many generators are not producing to their capacity as they find the price not remunerative. With the transparency in price discovery we bring in, I am sure more new investment will flow in and will not lead to any price escalation.”

Membership drive has been launched across key cities of Mumbai, Delhi, Hyderabad, Guwahati, and Kolkata. A member has to pay an admission fee of INR 2.5 million, as also a deposit of INR 2.5 million, besides an annual subscription of INR 0.5 million.

Jai Balaji Industries Q2 net profit up by 342% YoY

Jai Balaji Industries Limited has posted a net profit of INR 27.28 crore during July to September 2007 quarter up by 341% YoY as against INR 6.19 crore during July to September 2006 quarter. Its total income for the July to September 2007 quarter was INR 274.97 crore as against INR 131.38 crore in July to September 2006 quarter.

Jai Balaji’s net profit for April to September 2007 is recorded at INR 50.87 crore up by 286% YoY as against INR 13.18 crore in April to September 2006. Its total income for January to September 2007 is INR 527.77 crore as against INR 249.41 crore in January to September 2006.

The results are inclusive of the figures of Shri Ramrupai Balaji Steels Limited, which have merged with it with effect from April 1st 2006.

Mr Aditya Jajodia CMD of Jai Balaji Group said that “Steel is at the core of infrastructure development and the economy’s demand for steel will continue to grow in view of the massive infrastructure growth in the country. At Jai Balaji, we are confident that this will drive our growth and we will be able to build value for our stakeholders.”

Jai Balaji has also signed a memorandum of agreement with the government of West Bengal for setting up a 5 million tonne integrated steel plant, 3 million tonne cement plant and 1215 MW captive power plant in Purulia District at a total cost of INR 16,000 crore. In the meantime, it has acquired the entire shareholding of Nilachal Iron & Power Limited, which owns a sponge iron plant of capacity of 125,000 tonne per annum in Jharkhand.

Ashok Leyland plans INR 4,000 CAPEX in next 3 years

It is reported that Ashok Leyland is planning an INR 4,000 crore capital expenditure plan over a period of 3 years for building capacity, developing products and upgrading technology of its plants.

Ashok Leyland's capacity as at 2007 stood at 84,000 vehicles per annum. By June 2008, its Ennore facility will add 50,000 vehicles per annum and by September 2009, its Uttarakhand facility is also expected to add 50,000 vehicles per annum, taking the total capacity to 1,84,000 units a year over the next 3 years.

Kerala plans to develop 3 more ports

It is reported that Kerala government is on the look out for consultants for developing 3 more ports Alappuzha, Beypore and Azhikkal on public private partnership basis. The consultants are sought for preparing detailed project reports, identifying the private partners and helping the Government to reach technical and financial closure.

As per the current proposal, the Alappuzha port will feature a cargo harbor as also a marina. The existing port was used once used for cargo operations and is without breakwaters. To begin with, the consultant will be required to review a detailed project prepared by L&T Ramboll some time ago.

The Beypore port is the second biggest port in Kerala after Kochi. Its hinterlands include Kozhikode, Wayanad, Malappuram, Kannur and Palakkad districts in the state and major cities such as Bangalore and Coimbatore. The port was taken up for development by Mobil Peevees Company a few years ago and the plans included setting up of storage facilities for petroleum products. However, the project was abandoned later for various reasons. At present, there are 2 wharves and a few basic facilities like storage sheds, cranes and tugs. The port is proposed to be developed in stages covering deepening of the draught to the maximum, building up of infrastructure to meet the projected cargo movements in the future and creating connectivity to the hinterlands.

The Azhikkal port near Kannur, which has been included by the centre in the National Maritime Development Program for developing coastal shipping, is planned to be developed in modules. A DPR has already been prepared by ICICI Kinfra and this will be reviewed suitably to integrate the port with NMDP.

Ratnagiri Gas to undergo a change in equity structure

It is reported that Ratnagiri Gas & Power Private Limited is all set to undergo a change in equity structure along with the change in its classification from the current private limited status to a limited company. This would mean that its current status would change from that of a closely held company to a widely held company and would enable Ratnagiri Gas & Power Private Limited to increase its capital base.

Mr RK Goel chairman of Ratnagiri Gas & Power Private Limited recently said that “The change in status would enable the company to enhance its capital base by opening more avenues for raising funds, including the option to tap the capital market. The board is to consider the change in financial structure of the company. The entire financial restructuring will take 30 to 40 weeks once the board of the company approves it. Hence, if the company decides to come out with an initial public offering it would be not before 2009. Subsequent to the financial restructuring as a widely held company, all the doors will be opened for mobilizing funds from the market.”

Mr Goel said that the promoters GAIL India Limited, NTPC and MSEB Holding Co Limited together have infused additional funds to the tune of INR 1,200 crore. Despite this infusion Ratnagiri Gas & Power Private Limited has a deficit of around INR 1,500 crore. The current authorized capital of Ratnagiri Gas & Power Private Limited is INR 2,000 crore and the paid up equity capital is INR 765 crore.

RGPPL requires funds to complete the liquefied natural gas terminal and is looking at various options to source gas, as its Block III is expected to be operational soon. By early January 2008, all the 3 blocks will be ready, which would leave only the LNG terminal to be completed.

Punj Lloyd announces Q2 results

Punj Lloyd Limited has announced the following un audited results for the quarter ended September 30th 2007

Punj Lloyd has posted a net profit of INR 313.7 million for July to September 2007 quarter as compared to INR 7.8 million for July to September 2006 quarter. Its total Income has increased from INR 4096.0 million for July to September 2006 quarter to INR 10546.2 million for July to September 2007 quarter.

The consolidated results are as follows
The Group has posted a profit after minority interest and share of profits of associates of INR 894.7 million for July to September 2007 quarter as compared to INR 333.90 million for July to September 2006 quarter. Its total Income has increased from INR 11970.8 million for July to September 2006 quarter to INR 19247.1 million for July to September 2007 quarter.

Xstrata wins 40% rise in thermal coal price from Japanese utilities

Reuters reported that Japanese utilities have agreed to a 40%increase in the price of Xstrata's Australian thermal coal over the next year. The contract with Xstrata is for coal with a calorific value of 6,000 kcal/kg. Japanese utilities have two annual contracts, with most orders set for the fiscal year from April to March.

A source familiar with the negotiations said that "The utilities are short on coal for the fourth quarter and early next year and they know buying in the spot market will only drive prices higher, so they decided to secure the deal."

Industry sources said the settlement at USD 78 a tonne for contracts running for 12 months from October 2007 set the stage for negotiations next year on the larger benchmark April to March fiscal year contracts, which were set at USD 55.65 this year.

Mr Paul Gray a commodities analyst at Goldman Sachs said that "It is not far fetched to say that annual contract prices will be at USD 80 levels next year, especially since negotiations for term contracts normally begin in the first quarter. And I can not think of what could push prices down in 2008."

Benchmark Australian spot thermal coal prices leapt to a record USD 83.38, as Asian buyers scrambled for prompt supplies ahead of winter, and forward prices have also rallied. Data from electronic trading platform globalCOAL showed that Australian coal prices for 2008 have risen to more than USD 80 a tonne, up about 23% from USD 65 in July.

Coal producers said prices were set to climb even higher in coming weeks as Asian utilities scour for more supplies for winter heating and as the impact of Anglo Coal's force majeure on supply from its Dawson and Moura mines in Australia sinks in.

POSCO to freeze SBQ plate price till year end

It is reported that POSCO has decided to freeze the SBQ plate prices for the remainder of the year.

The report cited a POSCO official as saying that “Although raw material prices are hiking, POSCO decided not to increase steel plate prices until the end of the year. Soaring raw material prices are pressurizing POSCO to raise prices but the current time requires cooperation with shipbuilders.”

POSCO launches processing base in Poland

It is reported that POSCO has launched its first KRW 14 billion steel processing center in Europe. POSCO held a ceremony to celebrate the completion of the center at the Kobierzyce economic zone in the Polish industrial city of Wroclaw.

The new processing center will process automobile steel sheet and premium cold rolled steel sheet imported from Korea for local car and electronics companies. Its processing capacity is 140,000 tonnes annually. POSCO also has processing centers in China, India, Japan, Thailand and Mexico.

The ceremony was attendant by Mr Yoon Seok man president of POSCO and Korean Ambassador to Poland Mr Lee Shi hyung.

Mexico prominent in long term plans for SeverCorr

Platts reported that US steel producer SeverCorr expects to do as much as one fifth of its ongoing business with customers in Mexico.

Mr Mike Wagner executive VP and chief commercial officer told Platts that "Mexico is a long term market for us. It will be about 15% 20% of what we do. Most of our product is going to domestic customers."

Mr Wagner said that the mill having a direct rail line to central Mexico via the Kansas City Southern railroad, which acquired the link about a year ago, is key to the Columbus based mill's business plans.

Product shipped to Mexico recently by SeverCorr include hot rolled coil in 72 inch widths.

ArcelorMittal and Czech government to resolve dispute

CBW reported that the Czech Republic and ArcelorMittal are seeking a truce in their disputes.

The report cited Mr Miroslav Kalousek Czech minister of finance saying this after discussions with ArcelorMittal. Mr Kalousek said that both sides expressed a clear will to find a settlement of their disputes and agreed to create a team of experts from the finance ministry and ArcelorMittal group that will try to draft a joint agreement. If it is acceptable for both sides it will be submitted to the Czech government.

ArcelorMittal wants the Czech Republic to pay them CZK 25 billion in two arbitration cases.

Masteel to attract foreign funds

It is reported that Malaysia Steel Works Bhd plans to organize more international road shows in its bid to attract foreign funds' participation.

The report quoted Mr Tai Hean Leng MD & CEO of Masteel as saying that the group held a road show in Singapore last week to explain to fund managers Masteel's plans, product offerings, sales and earnings records and growth prospects. He added that Hong Kong will be the road show's next likely destination.

Mr Tai said during a press briefing said that “We believe it is timely to take Masteel to the next level after focusing on fund managers and analysts within Malaysia in the past years.”

Mr Tai said the group had completed the implementation of new processing technology amounting to CNY 90 million at its Bukit Raja plant, resulting in billets production increasing by 14% to 400,000 tonnes per year. This will be increased to 450,000 tonnes annually in the first quarter next year.

Masteel is the fifth largest integrated steel player in Malaysia with total production capacity of 700,000 tonnes per annum from its billets plant at Bukit Raja in Klang and steel bar plant in Petaling Jaya.

G Steel faces possible downgrade of credit rating over loan

Moody's Investors Service has put on review for possible downgrade the B3 corporate family rating and senior unsecured bond rating of G Steel.

Ms Kathleen Lee Moody's lead analyst for G Steel in a recent statement said that "The rating action reflects the company's heightened refinancing risks following its inability to term out the USD 120 million bridging loan upon its maturity on October 30th 2007. The company is still negotiating the refinancing arrangements of the above loan with the lenders.”

The review will focus on the implications of protracted refinancing negotiations between G Steel and its bank lenders over how the company will observe and fully comply with the provisions of the USD 100 million senior unsecured notes due in 2010. The review will also assess the potential financial impact that the revised terms and conditions of the refinancing agreement would have on G Steel's financial profile in the event that such an agreement is reached.

Sumitomo to install 50 tonne hammer

Sumitomo Metal Industries Ltd announced that it decided to install a 50 ton meter counter blow hammer at the Osaka Steel Works in the Railway Automotive & Machinery Parts Company with investment worth JPY 2 billion with a production capacity of 5,000 tonnes per year in a move to respond to an expanding market for large crankshafts. The hammer will be one of the largest of its type in Japan.

Sumitomo Metals currently manufactures large forged crankshafts of more than 350 kilogram with a 35 tonne counter blow hammer installed in 1970. These crankshafts exceed the manufacturing capability of forging press lines.

Sumitomo Metals said that our 35 tonne hammer continues to operate at full capacity due to growing demand for large crankshafts for use in engines. This demand is being fueled by increasing demand worldwide for engines for power generators, ships and mining and construction machinery. These markets are also seeing engines grow further in size in response to needs for high power. Moreover, in the natural resource and energy sectors, demand is expanding for large forged crankshafts for various types of pumps used during oil exploration and production activities. Against this backdrop, Sumitomo Metals decided to install a 50 tonne hammer, one of the largest in Japan, in a bid to expand its business further and strengthen its competitiveness in response to the increasing size of crankshafts.

By installing this hammer, Sumitomo Metals hopes to expand the scope of its business, as the new equipment will increase its ability to supply high-quality crankshafts. At the same time, Sumitomo Metals is building an integrated manufacturing system that includes machining at US based Norton Manufacturing Company Inc which we plan to acquire. This integrated system will enable us to offer services that dovetail with diversifying customer needs and thereby expand our crankshaft business.

Taiwan Power buys 17 million tonnes of coal for 2008-2018

Bloomberg reported that Taiwan Power Company has bought 17 million tonnes of thermal coal to be delivered from next year until as late as 2018.

AS per report, Taiwan Power Company signed 6 year, 8 year and 10 year contracts with four suppliers to buy 500,000 tonnes annually from each of two Chinese suppliers and 500,000 tonnes each from an Australian and an Indonesian producer.

Nippon Steel & Sumikin to implement Broner production planning system

Broner Metals Solutions announced that Nippon Steel & Sumikin Stainless Steel Corporation will implement its production Planning system at its Yawata plant in Japan so that it can become more responsive to customer requirements.

The objectives of the new production planning system are
1. Increase production adherence to the plan
2. Change business focus to a due date orientation.

The Broner Production Planner optimizes and balances the flow of material through the supply chain, taking into account inventories, equipment capacities, production cycles and process restrictions, to create a plan for the short to medium term that is based on actual and forecast demand. This leads to a more agile and responsive supply chain that improve customer service.

Nippon Steel & Sumikin Stainless Steel is a joint company of Nippon Steel Corporation and Sumitomo Metal Industries Ltd, which was formed in 2003. It is the largest specialty manufacturer of stainless steel products in Japan with a one third market share. NSSC has three plants, producing 1.1 million tons per year, of cold rolled stainless steel sheets & coils, stainless steel plates & sheets and stainless steel bars & wire rods.

Broner Metals Solutions, the world’s leading provider of supply chain planning, scheduling and manufacturing execution systems, specifically for the metals industry. Broner Metals Solutions is part of Hyperion Systems Engineering Ltd.

Sally Malay’s new nickel mine starts production

Metals Insider reported that Australian junior nickel producer Sally Malay’s new Winner ore body at its 75% owned Lanfranchi operations in Western Australia saw the first ore hoisted in the Q3 of 2007.

Sally Malay said that production at Lanfranchi is forecast to rise to 8,000 tonnes in the financial year to June 2008 from around 5,200 tonnes in the last financial year with Winner starting to contribute significantly from October this year.

The company’s eponymous Sally Malay mine, also in Western Australia produced 1,884 tonnes of nickel contained in Q3 of 2007, which was 8% above forecast. The mine is forecast to produce 7,500 to 8,000 tonnes of contained metal in the current financial year to June 08. Production in the last financial year was 8,000 tonnes.

Mitsui OSK quarterly profit doubles

Japan's second largest shipping company by sales, Mitsui OSK Lines Ltd announced that it more than doubled second quarter profit as China's demand for iron ore boosted shipping rates.

Mitsui OSK Lines in a statement said that its net income rose to JPY 52.7 billion (USD 460 million) in July to September 2007 quarter from JPY 25.1 billion a year earlier. Its sales rose by 27% to JPY 494.4 billion.

It said that the company is benefiting from demand for raw materials from China to feed a building boom ahead of the Beijing Olympics in 2008. Congestion at the world's biggest coal port, in Australia, is also causing ships to wait for weeks before loading, creating a shortage of vessels and driving up the price of available ones.

Eramet trims nickel production guidance for 07 and 08

Metals Insider reported that French nickel producer Eramet has trimmed its production guidance for both 2007 and 2008. It said that it now expects metallurgical nickel production at its Doniambo plant in New Caledonia which produces both ferronickel and matte to be 61,000 tonnes this year.

Eramet said that is a minor adjustment from previous guidance of 63,000 tonnes made at the time of its Q2 results release and from original guidance of 65,000 tonnes. Production in Q3 fell by 4.6% YoY to 15,174 tonnes, reflecting planned maintenance work and particularly bad weather.

Masteel upgrades melt shop at Bukit Raja Klang

It is reported that Malaysia Steel Works Bhd has completed the implementation of new technology at its melt shop in Bukit Raja Klang.

Mr Tan Hean Leng MD of Masteel at media briefing said that "The new technology implementation is part of a two and a half year CNY 90 million strategic program to increase cost efficiency by using the best plant and process technology. The plant had increased current production capacity by 14% to 400,000 tonnes per annum.”

He added that "The completed exercise had successfully reduced the overall cost of production by 10% this year and is expected to further increase production capacity up to 450,000 metric tonnes per annum by 2008."

Masteel currently has a manufacturing capacity of 700,000 tonnes per annum, consisting of a 400,000 tonnes per annum melt shop producing billets and a 300,000 tonnes per annum rolling mill producing bars. It exports 30% to 40% of its products and has 68 domestic dealers and several international trading houses as partners in Singapore, Thailand, Vietnam and the Philippines.

BHPB’s Worlsey Alumina wins top mining safety award

Worsley Alumina Pty Ltd announced that it has won the 2007 MINEX Award, the mining industry's highest accolade for safety and health practices.

Mr Charlie Lenegan chairman of Minerals Council of Australia said that "the MINEX Awards are designed to demonstrate this industry's commitment to its number one value of zero harm in the workplace and the communities in which we operate. We consider there is no greater stewardship responsibility than the safety and health of our people."

He added that “Worsley Alumina impressed the evaluators and judges with its leadership and safety culture applied through its consistent use of systems and procedures across three complex and discrete sites. Worsley exhibits a well structured, well resourced commitment to safety and health with a high degree of employee participation.”

Worsley Alumina is a JV company operated by BHP Billiton, with three sites located in south western Western Australia. Health and safety systems are embedded in Worsley Alumina's overall business planning cycle whereby strategic considerations are applied to risk profiling, interventions and initiatives, appropriate resourcing and a commitment to both capital and operational funding.

PT Aneka to study integrated FeNi and stainless plant

Metals Insider reported that Indonesian state nickel producer PT Aneka Tambang has signed an agreement with China's Tsingshan Holding Group to conduct a feasibility study on an integrated ferronickel stainless steel project in Maluku province. The study is expected to be completed by August 2008.

A power plant would be part of the project, which would be sited on Antam’s laterite ore concession on Obi Island.

Mr Dedi Aditya Sumanegara CEO of Antam said that "This agreement is part of our efforts to continuously explore ways to increase shareholder value by moving away from exporting raw materials and increasing processing activities."

Mincor increases nickel production in Q3

Australian junior nickel producer Mincor announced record quarterly production of 4,359 tonnes of nickel in concentrate during the Q3 of 2007.

The increase is attributed to the inclusion of the Otter Juan Coronet mines, which were acquired at the start of the period. The Coronet mines which contributed 1,300 tonnes to group production, although Coronet is coming to the end of its life.

Mincor said that production was also given a brief 199 tonnes boost by the North Dodie deposit, where mining was carried out for a single quarter and is now already over. It added that another mine 70% owned Carnilya Hill is due to be re opened at the beginning of next year.

Elitheni to expand Indwe coal resources and reserves

It is reported that South African miners Elitheni Coal is looking to increase exploration in the Eastern Cape in an effort to expand its coal resource base more than sevenfold and the amount of coal it can extract profitably close on fourteen fold within three years.

The company is reviving a coalfield that was mainly mined in the 19th century. Elitheni is exploring in the Indwe coal field 90 kilometer north of Queenstown and plans to develop a coal mine. These plans would take the junior collier's coal resources to 300 million tonnes and its coal reserves to 150 million tonnes. Elitheni had applied for a mining right and expected to start mining by late next year.

Mr Barry Nel CEO said that Elitheni is looking to sell up to 5.5 million tonnes of coal a year to Ipsa Group's power stations as well as industrial users in the area, such as brick factories. But Mr Nel declined to estimate what it could cost to build the planned coal mine.

The annual output from mines at Molteno and Indwe reached a peak of 176 000 tons a year between 1900 and 1904.

ArcelorMittal share buyback program status on November 2nd

ArcelorMittal, under the new share buy back program as announced on September 13th 2007, announced that it has repurchased 106,000 shares from October 25th 2007 until October 31st 2007.

The shares were repurchased at an average price of EUR 55.2483 and for a total amount of EUR 5,856,321.

Spitfire plans IPO to fund manganese exploration

Perth based manganese miner Spitfire Resources Ltd has opened a USD 4 million initial public offer with plans to list on the Australian stock exchange. Subscriptions will close in a month and the company is hoping to list on December 14th 2007.

Spitfire Resources, whose main asset is an 80% interest in a manganese exploration project in Western Australia, is offering 20 million shares at 20 cents each, with a further provision for USD 2 million in oversubscriptions
1. USD 4 million, IPO comprising 20 million shares at 20 cents with provision for USD 2 million in oversubscriptions
2. Aggressive drilling program planned at 80% owned South Woodie Woodie Manganese Project in the prolific East Pilbara manganese province.
3. USD 1.1 million already spent on exploration and acquisition by the vendor using state of the art exploration techniques including VTEM and IP
4. Eight priority manganese targets ready to drill with heritage clearances in place.

Mr James Hamilto MD of Spitfire said that the South Woodie Woodie manganese project boasted an aggressive drilling program, targeting eight priority manganese areas at the start of the 2008 field season.

Spitfire Resources in a statement said that initial exploration would be in an area about 40 kilometres from another manganese mine operated by Consolidated Minerals Ltd. The 80% project stake was acquired from London Alternative Investment Market listed miner, Churchill Mining plc, which will potentially hold 49% of Spitfire as vendor consideration on completion of the IPO.

PT Inco approves interim dividend for 2007

PT International Nickel Indonesia Tbk announced that the board of commissioners of the Company approved the proposal of the board of directors to distribute an interim 2007 dividend of USD 0.9787 per share, consisting of a nominal interim dividend of USD 0.0250 per share and an extraordinary interim dividend of 0.9537 per share.

The dividend is payable on December 7th 2007 to shareholders of record as of November 23rd 2007. Indonesian shareholders will be paid in the Rupiah equivalent of the US dollars amount based on the Bank of Indonesia middle rate on November 23, 2007. Foreign shareholders will be paid in US Dollars. The decision to pay a total interim dividend of USD 0.9787 per share was made in light of the Company's strong performance through the first nine months of 2007 and its current strong financial condition.

PT Inco also announced that it will propose a stock split with a ratio of 10:1 representing a change in nominal value of the shares of the Company from IDR 250 per share to IDR 25 per share. It said that the proposal has been approved by the board of commissioners. Implementation of the stock split is subject to obtaining approval of the shareholders of the Company and the Jakarta Stock Exchange.

Tuwairqi Steel to start production in January 2009

It is reported that some 90% civil work of 1.28 million tonne capacity Tuwairqi Steel Mills Limited project in Pakistan has been completed and that it will start its production in January 2009.

Mr Zaigham Adil Rizvi project director of Tuwairqi Steel Mills Limited, while addressing the ground breaking ceremony of the tallest furnace structure of DRI, said that the Tuwairqi Steel Mills Limited is scheduled to be completed its phase I in the next 15 months with the cost of USD 197 million for the setting up of the DRI plant. He added that around USD 300 million would be spent for the setting up of melt shop in phase II.

Mr Rizvi said that Tuwairqi Steel Mills Limited has chosen the state of the art technology MIDREX, a direct reduction process, which used natural gas to convert iron ore into direct reduced iron. MIDREX process being reliable, efficient and cost effective accounted for over 60 percent of the current world production of direct reduced iron.

Mr Rizvi said that "The steel making will be carried out at 150 tonnes capacity electric arc furnace to produce 1.28 million tonnes of liquid steel per annum. The furnace would be charged with direct reduced iron and limited amount of scrap and additives and melting would be accomplished by supplying electric energy.”

He said that the Tuwairqi Steel Mills Limited is one of the projects of Al Tuwairqi Group of Companies of Saudi Arabia, which has 7 large industrial units in Saudi Arabia and UK.

UAE consortium acquire 100% stake in Egyptian National Port Said Steel

AS per reports in Egyptian media, a UAE consortium comprising of Abu Dhabi Islamic Bank and Emirates (Al Emarat) Investment Co has acquired 100% of the shares of Port Said National Steel Co from its owner Eng Khaled el Bourini.

National Port Said Steel Company specializes in rebars production as per Egyptian and international standards with a production capacity of 400,000 tonne per annum.

MoU signed for 600 MW coal based power plant in Thar

It is reported that Sindh Coal Authority and Sindh Corbon Energy (Pvt) Limited has signed a MoU for setting up a 600 MW coal based power plant in Thar area of Pakistan.

In the first phase, Sindh Corbon Limited would set up a 300 MW coal based plant in Block-VI at a cost of USD 350 million while USD 250 million would be spent on the second phase of 300 MW plant.

Mr Irfanullah Khan Marwat minister of mines assured that the government will extend them all cooperation. He said this plant would greatly help overcome the power crisis besides flow of large scale investment into Sindh Province and availability of employment to jobless while the Tharis would be the higher beneficiaries.

Qatar and Sri Lanka ink MoU for cooperation in construction sector

The Peninsula reported that Qatar and Sri Lanka have signed a MoU for cooperation in the construction sector. The MoU was signed by Mr Abdulaziz Al Emadi vice chairman of Qatar Chamber of Commerce and Industry and Mr Surath Wickremsinghe chairman of Sri Lanka's Chamber of Construction Industry.

As per the MoU, Sri Lanka would actively cooperate with Qatar in areas like landscaping, contracting, construction manpower supply, engineering and architectural consultancy and building activity.


Mr Wickremsinghe who is leading a 32-member delegation from the Sri Lankan construction industry said that Sri Lanka has a vibrant construction industry known for building quality structures. He said that “The country produces cement but is an importer of iron and steel. Its construction industry has not suffered due to the ethnic crisis, said the visitors. There are a number of Sri Lankan construction companies active in the Gulf region. We have highly experienced building firms.”

DGCX appoints Mr Ahmed Bin Sulayem as new chairman

Dubai Times recently reported that Dubai Gold & Commodities Exchange has appointed Mr Ahmed Bin Sulayem as its new chairman with effect from November 1st 2007.

Mr Sulayem is currently executive chairman of Dubai Multi Commodities Centre and director of DGCX. Mr Colin Griffith, currently the chairman of DGCX and executive director of Gold & Precious Metals DMCC, will continue as a director of DGCX.

Mr Sulayem said that he is grateful to the board of directors for the confidence placed in him. He added that “It is indeed gratifying to be appointed for this challenging role at the Exchange. Given the strong foundation laid by Mr Colin Griffith and the team, I am confident that DGCX will continue to expand, launching new products and consolidating the gains made so far. I look forward to taking up the new responsibility.”

Danube Building Material to focus more on steel from 2008

Mr Rizwan Sajan chairman of UAE based Danube Building Materials recently announced plans to enter into steel in a big way from next year. He said that "We have started the initial imports in steel products and are testing the market. By next year, we are planning to go full fledged in our operations. Hopefully, by next year we will go heavily into steel."

Danube plans to import steel products from Turkey, China and Ukraine. He said that the AED 1 billion Danube will be making a huge investment in steel. He said that "Probably, we may double it to USD 250,000. We are planning to make steel the largest volume category of our business."

Other products the company offers include wood, laminates, medium density fiber board, aluminum, glass, hardware and sanitary solutions. While most of these products and materials are imported, Danube does the value addition. Among the company's key projects are those of Emaar such as Emirates Hills, the Burj Al Arab, Shangri La Hotel, Grand Hyatt, and a private palace in Muscat.

Started in 1993, Danube operates from its head office in Jafza north and a 365,000 square feet area in Jafza south, which include warehouses, logistics, kiln drying facilities and a factory. It has 8 branches in UAE, 2 in Oman, 1 in Bahrain, 3 in China and 1 in India.

Metso to supply valves of desalination plants in Saudi Arabia

It is reported that Metso Automation will deliver valves to a sea water desalination plant to be constructed by thermal desalination specialist company Société Internationale de Dessalement. The first part of the delivery will take place in the first quarter of 2008.

Metso Automation's delivery consists of close to 300 control valves for 27 desalination units, each having a capacity of 29,630 meter cube per day. The diameters of the ordered valves range between 80 mm to 1,100 mm.

The desalination plant will be a part of the Independent Water & Power Production Project that is led by power and water utility company MARAFIQ of Saudi Arabia. After the completion of the project, the desalination plant will provide 800,000 meter cube per day of desalinated water to Jubail Industrial City and the Eastern Province of Saudi Arabia. The project will be carried out by a consortium of SIDEM, General Electric of USA and Hyundai Heavy Industries of Korea. SIDEM of France, part of Veolia Water Solutions & Technologies. It will start its operations in 2010.

Metso is a global engineering and technology corporation with 2006 net sales of approximately EUR 5 billion. Its 25, 500 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.

China steel sector may see consolidation due to market forces

It is reported that market forces are likely to achieve consolidation in China's booming steel sector, which Chinese authorities could not do using force.

Expected price hikes for iron ore are putting the squeeze on smaller steel producers, which could see China's major producers snap up weaker players as they shift to growth through acquisitions rather than expansion.

A strategist at a state owned steel trader said "Independent small steelmakers may have to quit the market if iron ore prices surge next year, as I expect steel prices to fall in the first half of next year following a slowdown in fixed assets investment."

Mr Xu Lejiang chairman of Baosteel Group recently said that “The three big international mining companies have 70% to 75% control of iron ore supplies, while on the downstream the six biggest auto firms control 60% of their industry worldwide. Steel companies are stuck between them, and our control ratio is not even 30%, so we need scale and consolidation."

CISA estimates iron ore imports to hit 370 million tonnes in 2007

According to Mr Luo Bingsheng vice chairman of China Iron & Steel Association that massive steel export is believed to underlie China's soaring iron ore imports and the full year iron ore import is anticipated to hit 370 million tonnes.

China saw its imported iron ore rises 14.93% from last year to 284.04 million tonnes in the first nine months of this year. The imports took place from 34 countries but Brazil, Australia and India accounted for more than 85% of the imports.

Country wise imports are as under

In million tonnes

The average delivered to mill cost of imported iron ore for September 2007 was about CNY 777.91 per tonnes up by about 27% from January's CNY 611.11 per tonnes.

Mr Bingsheng while speaking at the 7th China International Steel & Raw Materials Conference in Dalian that long term shipping contracts should cover at least 80% of a mill's iron ore imports. He said that “Escalating spot shipping costs has fuelled up landed cost of imported iron ore to record high so far this year. By September the average price of imported iron had blown out to about USD 91.11 per tonnes up by about 31.95% from January's USD 69.05 per tonnes. He added that costs this year have been skyrocketing, and the average cost for October is likely to be even higher."

Iron ore price negotiations – Chinese envoy contradicts CISA

The Australian reported that China’s ambassador to Australia has backed calls to explore ending the fractious annual iron ore price negotiating system puts him at odds with his own steel industry.

As per report, Mr Zhang Junsai a speech in Perth last week said that the benchmark pricing system had caused unnecessary friction between the two countries and linking prices to a fluctuating pricing model like that of the London Metal Exchange was worth investigating.

Mr Zhang said "This is indeed a worthy research subject for industries of both countries. A scientific, reasonable and mature pricing mechanism is yet to be put in place in the trade of iron ore and other bulk energy and resource products. This explains the otherwise avoidable bilateral trade frictions over the past few years.”

But Mr Zhang's comments do not yet appear to amount to a change in China's policy on iron ore pricing. A Chinese embassy spokesman told The Australian that "Official stance on this is a matter for the China Iron and Steel Association.”

Mr Chen Xianwen of China Iron & Steel Association had last week said that the benchmarking system should be retained, after mining giant BHP Billiton urged a rethink of the benchmarking system, calling for the eventual establishment of deeper spot and forward markets to support the creation of a fluctuating index price against which contract prices could be set, as is emerging in thermal coal markets.

Raw material prices close to cost line of Chinese producers

It is reported that domestic iron ore concentrate price continues to hit new records in North China recently. Dry basis Fe 66% ore concentrate is offered at CNY 1360 per tonnes to CNY 1370 per tonnes in Tangshan, Hebei, up CNY 20 per tonnes from a few days ago. Big miners in Hebei's Handan and Xingtan region has raised up their EXW price by CNY 60 per tonnes, leaving dry Fe 66% ore concentrate at CNY 1240 per tonnes. The after tax price, therefore, has already come close to CNY 1400 per tonnes.

According to the market analysts CNY 1400 per tonnes is already a dangerously high price, almost on the verge of acceptance of domestic steel mills, especially for the small and medium sized ones. The smaller steelmakers would be forced to slash or halt production due to the escalating input costs. By contrary, large steel mills generally have accepted current price in light of thin iron ore stock at the moment. Industrial insiders anticipate that the leading steelmakers are likely to tie up pressing down the ore concentrate price once they have piled up sufficient stock in the future.

Indian iron ore prices are set to rise even further after the national railways raised transport charges by about 15%, the second hike in current fiscal year. Indian Railways has increased its congestion surcharge to 35% from 21%, its busy season surcharge to 7% from 6%, and boosted terminal charges by INR 40 per tonne. All new charges took effect from October 1st 2007.

Landed prices for Indian iron ore fines with 63.5% Fe have already hit about USD 185 per tonnes in China. However with Chinese steelmakers already struggle to recoup profits particularly from the sale of low end products like semis it remains to be seen whether ore prices will be able to rise much further.

NDRC warns of economic overheating in China

China’s top economic planning agency National Development & Reform Commission announced that it will keep a firm grip on approvals of new investment projects to prevent the economy from overheating.

NDRC said that the top two economic problems being faced in China are excessive growth in energy intensive & highly polluting sectors and rapid increases in the price of raw materials.

NDRC said that “The key to keep economy from boiling over is to restrain excessive growth in industries that are suffering overcapacity or that guzzle energy and spew out pollution.”

NDRC singled out the fast rising cost of steel, oil, non ferrous metals and coal. NDRC said that China would continue to rein in exports of energy intensive products.

Yanzhou plans to double coal output by 2012

Reuters reported that China's third largest coal producer by market value Yanzhou Coal Mining Co Ltd plans to double its annual output to roughly 70 million tonnes by around 2012, with aggressive expansion offsetting lower production at its old mines.

Yanzhou Coal is investing CNY 2 bilion to CNY 3 billion to develop new mines as part of the expansion, including a project with Thailand's CP Group in Shaanxi province.

Yanzhou planned to keep output at its six mines in Shandong province at around 34 million tonnes to 35 million tonnes, lower than its historic maximum output of 42 million tonnes, amid stricter safety regulations imposed by Beijing.

Its new mine in Shaanxi, in which it has a 41% stake, is expected to produce 4 million tonnes of coal next year. CP Group, that holds 40%, is yet to acquire approval for the mine to start operation. Its capacity would reach 20 million tonnes by around 2012.

In its home province of Shandong in northern China, Yanzhou was developing two new mines, of which one would start operations in the second half of 2008 with designed capacity of 3 million tonnes, he said. The second one, with capacity of 1.8 million tonnes, would not start production until around 2010.

Yanzhou's Austar mine in Australia was unlikely to reach its designed capacity of 3 million tonnes per year until the second half of next year or the first half of 2009, due to serious port congestion. Austar's 2007 sales would remain low at 1.6 million to 1.7 million tonnes, despite an initial target of two million tonnes, following delays caused by the port bottleneck and typhoons.

Baogang and Baiyunebo Iron Mine ink cooperation pact

Xinhyua reported that Baiyunebo Iron Mine in Inner Mongolia's Baotou has signed a cooperation agreement with Baogang Group on water division of 20 million tonnes, iron ore concentrate transportation of 5.5 million tonnes and construction of 3 million tonne ore dressing mill.

Baogang Group will construct water supply pipe project to introduce water in Yellow River to the mine for ore exploiting and dressing. Totally CNY 1.4 billion will be poured to the construction of pipeline which can transport 20 million tonnes of water and 5.5 million tonnes of iron ore concentrate every year. In the meanwhile Baiyunebo Iron Mine will support the building of Baogang's 3 million tonne per year iron ore dressing mill.

After water division the steelmaker can speed up the construction of another 2 million tonne ore dressing mill and other dressing mills to form total annual capacity of 8 million tonnes.

Latin American steel makers seek cooperation with China

Dow Jones reported that Latin American steel producers are trying to avoid a flood of Chinese steel through cooperation rather than protectionism.

Mr Roberto de Andraca, chairman of Chile's largest steelmaker CAP SA and president of the Latin American steel and iron industry group Ilafa while speaking on the sidelines of an industry congress held recently at Cartagena in Colombia said that "Some countries may decide to shut their market to Chinese steel, arguing subsidies or dumping, but I do not think this is the solution. He said the excess capacity is transitory and they are trying to reduce it, they do not want to go to war against the world."

Mr Li Chang Shun of Jinan Iron's said "We want to establish long-term cooperation between our producers and Latin American ones, instead of competition. He said the Chinese government does not support the steel industry with hidden subsidies. On the contrary, the government is seeking self sufficiency and is dissuading sales abroad with export taxes.”

Mr Campos of ArcelorMittal's said "We cannot close our eyes to imports at dumping prices or with any kind of subsidies. We can not downplay the damage China can cause. He said the main threat for Latin American steelmakers in the short term is indirect competition through products that use steel, such as cars, home appliances and machinery.

Wuhan to build China’s largest river shipping centre

It is reported that the Port of Wuhan, where the Yangtze River joins the lesser Han River, will be built into the largest freshwater shipping centre in Central China. It is estimated that it will take 5 years to 15 years.

The port, which has a 236.7 km bank line along the Yangtze River and 112.9 km line along the Han River, will have 23 port areas as its long term goal. Its cargo throughput will reach 100 million tonnes in 2010 and 168 million tonnes in 2020 if all goes as planned.

Wuhan Port will have an annual throughput of over 100 million tonnes. The major cargo sources for the port are containers, metal ore, iron and steel, petrochemicals and vehicles. It will be set up with different areas specializing in different types of cargo.

Jigang and Laigang merger process still on

It is reported that Jinan Steel unexpectedly issued new shares for purchasing the parent group's steel and related assets, as Jigang is in process to combine with Laigang, another key mill in Shandong, as early as from last year.

Jinan Steel's spokesman told 21 Century Business Herald that "Jinan Steel's financing project will not collide with building of Shandong Steel Group, as it would be a combination rather than consolidation within each of them. The combination is still in process and hard to tell about the timetable."

Last August, both steel groups announced that the province planned to put the two together and build Shandong Steel Group, considering complementary product structures. An official from the local state-owned assets supervision and management commission told that by September 30th 2007 total assets of Jigang and Laigang reported 40.871 billion and CNY 45.432 billion respectively. Over recent twp years, each group has issued short term financing bonds, which would benefit each other once combined.

Jigang mainly produces medium plate while Laigang is China's largest H-beam manufacturer.

(Sourced from MySteel.net)

Shalkiya Zinc warns of lower production in 2007

Metals Insider reported that Shalkiya Zinc a UK listed company working on the rehabilitation of the Shalkiya zinc lead operations in the central Asian country of Kazakhstan, warned that its production and sales will be lower than expected this year due to delays rehabilitating the Kentau processing plant.

ShalkiyaZinc said production of zinc and lead concentrates and sales are now expected to be 20% to 30% short of original projections, although the ramp up forecast for 2008 and 2009 is unaffected.

Ore extraction at the mine was deliberately slowed down in the first half of this year to match processing capacity at Kentau, which has thrown up unexpected additional work in terms of reconstruction. That reconstruction work is now scheduled to be completed in November, a couple of months later than originally planned.

Zinc in concentrate sales totaled 6,200 tonnes in the first half of 2007 as against 9,100 tonnes in 2006.

Belarusian scientists call for domestic mining and steel industry

It is reported that Belarusian scientists are considering the possibility of setting up a domestic mining and smelting industry using Byelorussian Steel Works.

Mr Mikhail Myasnikovich president of the National Academy of Sciences of Belarus told the First Congress of Belarus’ Scientists on November 2nd 2007 that “According to calculations the scientists have made, using Belarus mined iron ore will result in a high economic effectiveness.”

The National Academy of Sciences of Belarus together with interested agencies is ready to work out details of this innovation project.

Stoylensk GOK net in 9 months up by 90% YoY

FIS reported that Stoylensk GOK processed 1.31 million tonnes of iron ore, produced 8.75 million tonnes of concentrate in January to September 2007.

Suring this period, it shipped 8.72 million tonnes of concentrate and 1.41 million tonnes of agglomerated ore.

Russia drops Yamal-Europe 2 pipeline project via Belarus

RIA Novosti reported that Russia has dropped the idea of building a second leg of a pipeline delivering natural gas via Belarus to Europe. The report cited Mr Viktor Khristenko industry and energy minister of Russia as saying that "There are no reasons to launch the Yamal-Europe 2 project. Russia is currently laying the Nord Stream pipeline along the Baltic seabed to Germany for the same purposes.”

The Yamal-Europe pipeline runs from northwest Siberia to Russia's border with Belarus and from there extends 2,000 kilometers to Germany via Poland. The addition of a second leg of the pipeline was proposed in 2005, to meet Europe's growing gas demand. The Belarusian segment of the Yamal-Europe pipeline is 575 kilometer long and has capacity of around 33 billion cubic meters per year.

Mr Viktor Zubkov prime minister of Russia had recently on October 19th 2007 said that he is in favor of reconsidering the pipeline proposal. Mr Alexander Lukashenko president of Belarusian and Mr Sergei Sidorsky prime minister also pledged in October that Russia would receive economic privileges to build the pipeline.

Mr Rashnikov among the most influential persons in Russia

It is reported that The Economic News Agency, at the request of the Nezavisimaya Gazeta Editorial Board, has determined a rating of political influence of Russian entrepreneurs and investors in the III Quarter of 2007.

Mr Victor Rashnikov chairman of the OJSC MMK board of directors has taken up the 29th position among Russia' 50 most influential entrepreneurs and investors, rising to the category strong influence.

A panel of 61 experts assigned ratings to 125 entrepreneurs based on the results of the third quarter of 2007 using a scale whereby average scores assigned by the experts have the following meanings
1. From 0 to 1 - Minimum influence
2. From 1 to 2 - Weak influence
3. From 2 to 3 - Average influence
4. From 3 to 4 - Strong influence
5. From 4 to 5 - Very strong influence

Tractor plants to develop a metallurgical plant

FIS reported that directors Board of Kurganmashzavod OJSC, under the program of optimization and increase of production efficiency at the enterprises members of Tractor Plants Concern, made a decision on the establishment of a limited liability company Zauralsk Forging Smelting Plant.

The new enterprise will consist of three plants steel and cast iron, forging and precision slab plants.

KAMAZ setting up new wheel making plant

It is reported that KAMAZ OJSC plans to set up a new facility for manufacturing wheels as per European norms.

The new production will have the projected capacity of 440,000 wheels per annum. The plant uses the equipment made in Switzerland and Germany.

The wheel shaping will be made for three types of trucks - KAMAZ, MAZ and ZIL.

Talks on Pre Caspian Gas Pipeline to end soon

Interfax reported that a Kazakh and Russian inter governmental commission will set specific tasks for the Pre Caspian Gas Pipeline project at a meeting this month and Russian-Kazakh-Turkmen talks on the project will be competed soon after that.

Mr Karim Masimov prime minister of Kazakhstan during a meeting in Tashkent with Mr Viktor Zubkov prime minister of Russia also assured that Kazakhstan is open to further cooperation with Russia in space exploration. Mr Masimov said “Kazakhstan and Russia have concrete, businesslike and productive relations.”