Modifications in scrap import policy of India

Director General of Foreign Trade of Indian commerce ministry vide a notice dated October 26th 2007 has notified that import of following types of metallic waste and scrap will be free subject to conditions detailed below

1. Shredded Form
Import of metallic waste and scrap listed above in shredded form shall be permitted through all ports of India. Import from Hodaideh, Yemen and Bandar Abbas, Iran will be in shredded form only.

2. Unshredded, compressed and loose Form
Import of metallic waste, scrap listed above in un shredded compressed and loose form shall be subject to following conditions

A) Importer shall furnish the following documents to the customs at the time of clearance of goods.
I) Pre-shipment inspection certificate as per the format in Annexure I to Appendix 5 from any of the Inspection & Certification agencies given in Appendix-5 to the effect that
i) The consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radio active contaminated or any other explosive material in any form either used or otherwise.
ii) The imported item (s) is actually a metallic waste/scrap/ seconds/ defective as per the internationally accepted parameters for such a classification.
II) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radio active contaminated, or any other explosive material in any form either used or otherwise.

B) Import of scrap would take place only through following designated ports and no exceptions would be allowed even in case of EOUs and SEZs
1. Chennai
2. Cochin
3. Ennore
4. JNPT
5. Kandla
6. Mormugao
7. Mumbai
8. New Mangalore
9. Paradip
10. Tuticorin
11. Vishakhapatnam
12. ICD Loni Ghaziabad
13. Pipava
14. Mundra
15. Kolkata
16. ICD Ludhiana
17. ICD Dadri Greater Noida
18. ICD Nagpur
19. ICD Jodhpur
20. ICD Jaipur
21. ICD Udaipur
22. CFS Mulund
23. ICD Kanpur
24. ICD Ahmedabad
25. ICD Pitampur
26. ICD Malanpur

2. Paragraph 2.32.2A shall be inserted at the appropriate place in the Hand Book of Procedures Vol I
In case any agency wishes to be enlisted under Appendix 5, they may furnish an application to the office of Director General of Foreign Trade with the following documents
(a) A brief on the activities of the agency, its history, membership, organizational stricture, manpower etc
(b) Infrastructural setup, logistics, testing labs etc for carrying out the inspection of metallic scrap
(c) List of companies and agencies for which testing has been carried out

JSW Steel crude steel production in October up by 27% YoY

JSW Steel Limited has posted a 27% YoY growth in crude steel, 7% YoY growth in HR coils, 33% YoY growth in HR plates and 109% YoY growth in pre painted galvanized coils during October 2007 as compared to those of October 2006.

The breakup of product wise production is as below

Crude steel
286,000 tones in October 2007 up by 27% YoY

HR coils
234,000 in October 2007 up by 7% YoY

HR plates
18,000, up by 33% YoY

Pre painted GI
8,000, up by 109% YoY

Orissa starts hearings for Khandadhar iron ore mine lease

PTI reported that the Orissa government has started hearing applications seeking lease over Khandadhar iron ore mines. A government panel headed by Mr UP Singh secretary steel & mines of Orissa has already held two rounds of hearing, at the end of which it would recommend a prospecting license in favor of one company.

Mr Padmanabha Behera steel & mines minister of Orissa said that the state government decided to start hearing of all the applications for Khandadhar iron ore reserve after the union mines ministry asked for it. He said "The mines ministry wanted us to recommend the name of one company for the private lease over Khandadhar after hearing all the applications. Therefore, we have started hearing the applications which will be completed by end of November.”

As per report, over 250 applications were received for the Khandadhar reserve but the state government had earlier recommended POSCO using its discretionary powers as provided in the Mines and Minerals (Development and Regulation) Act, 1957. Its decision was, however, challenged by Kudremukh Iron Ore Company Limited in the state High Court which referred the matter to the central mines ministry asking to resolve the issue within administrative framework. The government would have to hear nearly 200 applications because it had already rejected 49 applications.

Tribals protest against industry plans in Jagdalpur

Reuters reported that more than 75,000 tribal people armed with bows and arrows took to the streets of Jagdlapur in Chattisgarh, on to protest over plans to encourage industrial development in the region. It is being termed as one of the biggest protest marches of tribal villagers in Chattisgarh state.

Mr Manish Kunjam tribal leader told protesters that "Indigenous tribals will be driven out from their native lands if the blind industrialization plan and other schemes of the state government are carried out.”

India has planned hundreds of special economic zones, steel plants and power plants but the issue of land acquisition has met stiff resistance from villagers all across the country.

Jyoti Structures enters TLT market in Africa

Jyoti Structures Limited announced that it has formed a JV Jyoti Structures Africa (Pty) Ltd at Johannesburg in South Africa with a local South African person to participate in the transmission line markets of Southern Africa. Jyoti Structures is the lead partner in the JV.

Jyoti Structures Africa (Pty) Ltd has been awarded a contract for execution of approximately 650 Kilometer of 350 KV High Voltage DC transmission line from Gerus to Zambezi in Namibia by NamPower, the electricity utility of Namibia. The contract valued at approximately US USD 75 million is to be executed in 18 months.

Adhunik Metaliks inaugurates new rolling mill at Kuarmunda

It is reported that automotive and special alloy steel producer Adhunik Metaliks Limited has inaugurated a new rolling mill at its steel works at Kuarmunda near Rourkela in Orissa.

Mr Manoj Agarwal MD of Adhunik Metaliks said the plant is now geared to manufacture automotive and special alloy steel for its customers, who include Tata Motors, Mahindra & Mahindra, Ashok Leyland, Maruti Udyog and Bajaj Auto etc.

The expansion project of Adhunik Metaliks at Kuarmunda is expected to be completed by March 2008. Being implemented at a cost of INR 440 crore, the project envisages an increase in the plant’s manufacturing capacity from 0.26 million tonnes per annum to 0.45 million tonnes per annum of special, alloy and stainless steel. The first phase of the project was implemented at a capital cost of INR 250 crore.

TATA Steel sees huge untapped potential in India fir hollow sections

It is reported that structural engineering segment using steel hollow sections, which are used across the world for efficiency, aesthetic value and ease of engineering it brings, is still very nascent stage in India.

Mr TV Srinivas Shenoy head of marketing STP at TATA Steel said that hollow sections help save up to 10% to 12% in terms of cost, 20% to 25% in terms of weight of steel and the life of the structure due to hollow sections will increase by 40% to 45%. He added that "Per kilogram cost of hollow sections may be about 20% higher but it balances out in the total cost savings."

Mr Shenoy said that hollow sections can be used in architecture, infrastructure, general engineering and industrial applications. He added that "There is a demand for about 10 million tonne of angles and channels for construction in India. We will tap that potential but hollow sections are not substitute for the conventional materials. Both will continue to co exist in the structural engineering scene that is all set to see a tremendous change in the country in the next 1 or 2 years."

TATA Structura, a division of TATA Steel, set up in 2005, manufactures hollow sections for construction business which has a tremendous growth potential. Mr Shenoy said that "As of now, TATA Structura has a capacity of 400,000 tonne, including the mill and hollow sections procured from external processing agents. The capacity may be increased to 450,000 tonnes to 500,000 tonne by 2008."

TATA Structura has been registering a growth of 50% YoY and sales of 100,000 tonne of hollow sections this year. Sales are expected to grow by 30% to 35% in the next fiscal. TATA Structura is also gearing up to face the demand. It was in an expansion mode and had commissioned a new mill at Jamshedpur that would be stabilized for production by the end of December 2007. The mill will manufacture various hollow sections of thickness and width.

Sesa Goa forecasts higher margins

Mr PK Mukherjee MD of Sesa Goa during an interview said that although the rupee appreciation has hit 15% of their realizations, Seas still expects margins to be higher in future.

Mr Mukherjee said that “This is the monsoon quarter so we do not have many sales. We have done 1.2 million tones of sales whereas in the same quarter last year it was about 900,000 tonnes. So as far as realization is concerned, it has grown about 26% YoY in dollar terms for the second half quarter but there has been a huge hit on the rupee by 15%, so net increase has been about 11% YoY.

He informed that first half realizations in dollar terms are up 24%, in rupee terms up 9% and Q2 realizations are up by 26% in dollar terms.

About, the outlook for the volumes going forward, he said that “It is difficult to give you any guidance right now. Last year, we had done about 10.8 million tonne and definitely we can not afford to be lower than that.”

About the iron ore price increase, he said that it has to go up and there is no other way out. But the number is anybody’s guess, somebody predicted 50% increase but even that will also keep huge gap between spot price and benchmark price.

PGCIL to erect transmission line for Maithon Bokaro project

BS reported that Indian government has decided to give 1 of the 2 mega transmission projects, which were planned to be put up for international competitive bidding, to Power Grid Corporation of India.

The INR 4,200 crore transmission projects to evacuate power from Maithon Bokaro are needed urgently in view of the 2010 Commonwealth Games being hosted by Delhi. A senior power ministry official said that “It is a generation linked project and evacuation facilities need to be ready before 2010.”

The Maithon Bokaro mega transmission project is to be put up on tariff based competitive bidding along with the INR 1,800 crore Eastern Northern interconnection systems by the Power Finance Corporation. This project is expected to set up an evacuation system for wheeling power from the 1,000 MW Maithon, 1,000 MW Kodarma, 1,000 MW Mejia and 500 MW Bokaro power plants in Jharkhand and West Bengal. The total length of the grid lines is expected to be around 1,500 circuit kilometers.

L&T inks JV with Mitsubishi for super critical turbine making unit

Larsen & Toubro Limited announced that it has inked a JV agreement with Japanese Mitsubishi Heavy Industries for setting up a manufacturing facility to supply super critical steam turbine & generator facility in India. This follows a technology licensing and technical assistance agreement for manufacture of super critical turbine & generator, signed between L&T, MHI and Mitsubishi Electric Corporation.

The proposed manufacturing JV, with a capital outlay of around INR 8,800 million, will have a product configuration catering to plant capacities ranging between 500 MW to 1000 MW. The manufacturing operation is expected to commence sometime during the later part of 2008.

The product from the JV is expected to meet the demand or supply gap for power plant equipment, as envisaged in India’s plan for a mega ramp up in power generation capacity using super critical technology. L&T & Mitsubishi Group is seeking a foothold in power generation core equipment sector to meet India’s rapidly growing power demand, while L&T is looking for a technology partner possessing state of art technologies and willing to invest and work together to serve Indian power demand.

Supercritical turbine uses higher steam temperatures and pressures than sub critical pressure power generation and are more fuel efficient and environment friendly. Super Critical Technology Coal based Plants reduce coal consumption relative to power output, carbon dioxide emissions can be reduced roughly by 2.5%. However, supercritical type generation requires more sophisticated technology in equipment design to withstand the high temperature and pressure levels and machining of high strength component materials is a complex task, MHI has vast experience with these systems, having already delivered approximately 70 units in Japan and abroad. Supercritical Turbines are engineered to operate at steam pressures above the critical point of water at 22.12MPa and 374.15°C.

Mitsubishi Heavy Industries Limited is one of the world’s leading heavy machinery manufacturers, with consolidated sales of around USD 25 billion. Mitsubishi Heavy Industries has vast experience in these systems, having already delivered approximately 70 units in Japan and abroad.

ABG to set up Greenfield shipyard on the East Coast

It is reported that ABG Shipyard has decided to set up a big shipyard on the east coast with an investment of over INR 1,000 crore but is yet to finalize the location of the project.

The proposed yard will cater to the needs of ship owners from the Far East and can also be used for repair purposes. The report cited an official of ABG as saying that “The move to set up a Greenfield facility follows its unsuccessful hunt for a shipyard or repair facility in the Far East. We had long scouted for a yard in Indonesia and Malaysia but we could not strike any deal because of high valuations."

Mr Rishi Agarwal MD of ABG Shipyard said that his company is now looking to expand capacities as orders are still flowing in. He added that "We have already expanded capacity of Vipul Shipyard, while a plan of action is getting ready for Western India Shipyard."

During the July to September 2007 quarter, ABG Shipyard bagged 2 large orders worth INR 1,460 crore and INR 1,440 crore from Thailand's Precious Shipping and Hamburg based Bereederungsge sellschaft H Vogemann GmbH, respectively. It also completed delivery of 2 vessels to Lamnalco and Vroon during the quarter. Since 1990, ABG Shipyard has delivered over 100 ships of various types to domestic and international customers. Its current order book is around INR 7,120 crore.

Jharkhand HC seeks clarification on Khinoor iron ore mining lease

Ranchi Express reported that Jharkhand High Court has set a deadline of 1 month for the state government to clear its stand regarding allotment of iron ore mining lease to Khinoor Steel Limited.

The Court of the Justice Mr Amreshwar Sahay, while posting the matter for further hearing on December 14th 2007, also directed the state government to file an affidavit in this connection. The court was hearing a writ filed by Kohinoor Steel Kolkata based industry.

Khinoor Steel had sought the Court's directive to the government to immediately grant it iron ore mining lease in terms of the MoU that it signed on July 18th 2005 with the state government.

Seaways starts coastal movement of cargo from New Mangalore

It is reported that Seaways Group has started coastal cargo movement from New Mangalore Port to Pipavav through its chartered vessel MV Kinship Bangar. Till now, the vessel completed 5 voyages.

Seaways inducted 50 containers in this voyage to carry coastal cargo from New Mangalore Port to Pipavav Port. Seaways Group is providing facility of door to door service to WCL Logistics of Bangalore, which is dispatching pig iron cargo of Kudremukh Iron and Steel Company to Pipavav Port. Simultaneously, it is inducting 50 containers from Pipavav Port to New Mangalore to carry inward coastal cargo.

Recently, Seaways introduced west coast container feeder service MV Kinship Bangar, connecting New Mangalore to Jawaharlal Nehru Port, Mumbai Port and Pipavav Port.

JMM workers raid Kohinoor Steel office in Jharkand

It is reported that a group of JMM workers led by senior leader Mr Rudra Pratap Mahto stormed the office of Kohinoor Steel’s office at Adityapur in Jamshedpur.

The report cited some eyewitnesses as saying that “25 Kohinoor Steel functionaries were taken aback when 100 JMM workers barged into the company’s office and demanded immediate release of money to the contractor. They heckled the company officials and brandished firearms.”

The attackers demanded immediate release of dues to RK & Company, engaged by Kohinoor to maintain the induction furnaces and supply of contract workers.

Mr Vijay Bothra woner of Kohinoor said that “I have not seen such lawlessness. What is more agonizing is that the local police, who arrived later, insisted that we pay the amount and settle the issue. We are in the process of lodging an FIR against these JMM workers.” Mr Bothra claimed that the JMM leaders demanded INR 1.3 million as outstanding dues that the company must pay to the contractor.

As per report, Kohinoor Steel was supposed to pay the firm INR 0.17 million, but it deducted INR o.15 million claiming that two of its furnaces were damaged due to negligence of the contract firm.

Van Oord bags Krishnapatnam dredging contract

It is reported that Navayuga Engineering Company Limited has awarded a EUR 16 million contract to Rotterdam based marine contractor Van Oord to dredge an access channel to the port of Krishnapatnam in Andhra Pradesh.

The project involves dredging a 16 meter deep, 10 kilometer long access channel. The dredged material will be deposited at sea. The project will commence in the autumn and will take around 8 months to complete.

Van Oord will be deploying a trailing hopper suction dredger on the project and carries out dredging work in India on a regular basis via its subsidiary Van Oord India Pvt Limited.

Finance ministry asks railway ministry to finalize freight corridor plans

Exim News Service reported that, while railway ministry has placed the East West dedicated rail freight corridor project proposal before the cabinet committee on economic affairs, the department of expenditure in the finance ministry wants the land for the project acquired first before approaching CCEA and also asked railway ministry to finalize the project funding before seeking cabinet approval.

Under the freight corridor project, 5,270 hectares of land are to be acquired for the western corridor from Delhi to Mumbai, while 3,563 hectares will be acquired for the eastern corridor from Delhi to Howrah. Union railway ministry has almost completed the survey for the 2 corridors. However, the land acquisition process has been slow. In its urgency to get the project rolling as soon as possible, the railways went ahead and presented the project for CCEA approval last month.

Out of the INR 28,000 crore earmarked for the project, INR 9,000 crore is to be raised by railway ministry as equity, while the remaining has to be raised through debt. Indian Railways says that as some part of the debt is to come through a loan from Japan, they are yet to be informed by the finance ministry on the sum. According to a senior railway ministry official, unless the finance ministry reveals the amount, a final funding arrangement cannot be prepared.

Everest board approves termination engagement of Origo Sino

Everest Kanto Cylinder Limited has informed BSE that its board of directors at its meeting held on October 30th 2007 has approved the termination of engagement of Origo Sino India PLC to assist the company in expanding its business in China.

ONGC to sell 50% stake in KG basin offshore block

It is reported that Oil & Natural Gas Corporation has decided to sell up to 50% of its stake in KG basin offshore block KG DWN 98/3 to Statoil Hydro and Petroleo Brasileiro SA of Brazil.

ONGC claims to have discovered more than 6 trillion cubic feet of gas in the block and is currently drilling more appraisal wells. It has also plans to produce 25 million standard cubic meters per day of gas from the field from 2012.

The development and operating cost of starting production will cost ONGC more than USD 5 billion (INR 20,000 crore).

Cairn India posts Q2 loss of INR 8.39 crore

Cairn India Limited has announced the following unaudited results for the July to September 2007 quarter

Cairn India has posted a net loss of INR 8.39 crore in July to September 2007 quarter while total income is INR 79.438 million. Its only asset is the yet-to-start-production Rajasthan field.

On a consolidated basis, Cairn India has recorded a net profit of INR 23.24 crore during the July to September 2007 quarter and in the quarter ended June 2007, it along with its subsidiaries recorded a loss of INR 71.4 crore. Net sales during the quarter stood at INR 265.81 crore up by 9.25% YoY as against INR 243.30 crore while other income stood at INR 34.29 crore.

Cairn India and its subsidiaries, which have oil and gas producing assets in Ravva in the Krishna Godavari basin and in the Cambay basin, recorded an average crude oil price realization of USD 77.2 a barrel as compared with USD 71.11 a barrel in the April to June 2007 quarter.

Astonfield to set up 5 MW solar power plant in WB

BS reported that Malta and Geneva based infrastructure management company Astonfield Management Limited is planning to set up India’s biggest solar power plant at Bankura in West Bengal.

Mr Saurabh Sen director of AML said that "The solar power plant at Bankura will have a capacity of 5 MW and for this project we have formed a JV with North America's largest solar energy service provider Sun Edison. We would invest about USD 25 million in the project which will come up on area of around 15 acres. The work on the project is expected to resume in December 2007."

Mr Sen hinted that Astonfield is also making efforts to persuade 2 to 3 global manufacturers of solar panels to set up plants in West Bengal, adding that manufacturing equipment locally will significantly cut installation costs. At present, the cost of installation of a solar power plant ranges from USD 4.5 to USD 5 million per MW.

On a countrywide basis, Astonfield is eyeing solar power projects of capacity 100 MW and is also keen on building a second solar power plant in West Bengal in Purulia. The project is scheduled to be operationalised in around 2 years.

Astonfield is expecting greater returns from the solar power business as the tariff is likely to drop in years to come. Mr Charlie Feichter chairman of Astonfield Renewable Resources claimed that solar power tariffs are expected to fall by about 25% to 30% in the next 3 to 4 years as production is set to quadruple over that period.

ArcelorMittal shareholders approves 2nd step of merger

ArcelorMittal announced that in the Extraordinary General Meetings of shareholders of ArcelorMittal and Arcelor held yesterday approved the merger of ArcelorMittal into Arcelor. 99.5 % of the votes cast at the ArcelorMittal Extraordinary General Meeting and 97.3% of the votes cast at the Arcelor Extraordinary General Meeting were cast in favor of the proposed merger. 954,514,724 shares or 67.4% of ArcelorMittal’s outstanding share capital, were present or represented at the ArcelorMittal Extraordinary General Meeting. 648,601,269 shares, or 96.8% of Arcelor’s outstanding share capital, were present or represented at the Arcelor Extraordinary General Meeting.

The merger is expected to be effective on November 13th 2007. The merger is the second step in the two step merger process between Mittal Steel Company NV and Arcelor.

Mr LN Mittal said that “With the successful integration of the Mittal and Arcelor teams complete, the EGMs mark the final step in our legal and technical integration. As one company in every sense, we look forward to continued progress as the world's leading steel company.”

Iron ore price negotiations –Brazilian demand to tighten supplies

Reuters reported that Brazil's steel industry is forging ahead on growing demand from an expanding economy, adding to upward pressure on iron ore prices, while foreign steelmakers are moving in to get closer to ore reserves.

Brazilian crude steel output in January to September 2007 period soared about 10% YoY levels to 25 million tonnes, led by demand for long rolled steel from the civil construction sector and the car industry as Brazil's interest rates fall and salaries rise. Brazilian steel companies are reducing exports to feed growing domestic demand, industry figures showed. Some analysts’ project annual output should reach 40 million tonnes in 2010. The Brazilian Steel Institute industry group expects steel companies to invest USD 17 billion through 2012, which is more than the USD 10 billion expected iron ore investment till 2011.

Brazil is expected to produce 331 million tonnes of iron ore in 2007 and is the world's No 2 iron ore producer after China. It expects iron ore production to hit 524 million tonnes in 2010, with mining giant CVRD accounting for 400 million.

Mr Paulo Penna president of Brazilian Mining Institute said that while Brazil was boosting exports of its iron ore, producers cannot ignore local steelmakers who consume up to 30% of the raw material mined in Brazil. He told Reuters that "It's all moved by exports, but strategically, miners have to always supply the local clients to guarantee demand. Brazilian clients are without a doubt contributing to growing demand and price hikes."

Indonesia may set tin export quota at 90,000 tonnes

Bloomberg reported that Indonesia, the second largest tin producer, will probably introduce a quota on the export of the metal at 90,000 tonnes a year, about 25% less than total shipments last year. According to an estimate from the UK based ITRI, Indonesia exported 120,000 tonnes of tin in 2006.

The report quoted Mr Wachid Usman president director of PT Timah in an interview as saying that Timah had asked the government for a 60,000 tonne quota and the new system may be introduced as soon as possible. Mr Usman said that the state linked tin mining company would propose a national quota of 90,000 tonnes, with Timah's share at 45,000 tonnes.

He added that “The quota will be implemented hopefully as soon as possible without giving a timeframe. He further added that “If the government doesn't implement the quota, illegal mining will be more aggressive.''

Mr Usman said that “The current price is not high. Demand is increasing because more industries are using tin. Not only electronics, but petrochemical and chemical industries are also using tin.''

Tin prices have surged to their highest since at least 1989 this year amid a crackdown in Indonesia on illegal ore mining and rising demand. Government officials in the Southeast Asian nation have said they may opt for a quota system to bolster the price of the metal used in cans and soldering.

Peruvian miners start national wide strike

Peruvian miners have began their second national strike this year after the government failed to meet demands on pensions, profit sharing and rights for subcontracted workers, a union spokesman said.

Mr Cirilo Yarihuaman of Mining Federation said “The government has had plenty of time to get the reforms passed in Congress. We have no choice but to strike."

Peru is a major global metals producer and the government said 6% of the nation's roughly 120,000 miners were on strike. The federation that called the strike has 22,000 members and said about 16,000 workers walked off the job.

As per reports, the strike has effected following operations
YANACOCHA - Unionized workers at Peru's Yanacocha, the largest gold mine in Latin America went on strike. Yanacocha is controlled by US based Newmont Mining Corp.
SOUTHERN COPPER - Southern Copper Corp's Toquepala and Cuajone mines and its Ilo smelter were affected by strikes.
ANTAMINA - Workers said they were on strike at Antamina, Peru's largest copper producer, which is controlled by, among others, Switzerland based Xstrata and BHP Billiton
CERRO VERDE - A union leader at Cerro Verde, Peru's No. 4 copper producer, said workers were on strike.
TINTAYA - At Tintaya, a major copper mine, which is run by Switzerland based Xstrata union leader Walter Zaire said workers were on strike
BUENAVENTURA - Buenaventura, the largest Peruvian precious metals miner, said the strike shut its main silver mine, Uchucchacua.
DOE RUN -
Doe Run Peru's Cobriza mine was shut by the strike.
SHOUGANG HIERRO PERU - At Chinese-owned iron-ore miner Shougang Hierro Peru workers were on strike, a laborer who was at the union hall and company officials said "About 600 of 1,800 workers, or 30 percent, are working.”
VOLCAN - Workers at Volcan, a leading zinc producer in Peru, were not on strike as they are negotiating a new contract with the company
BARRICK GOLD - Workers at Barrick Gold Corp's two Peruvian mines did not join the nationwide walkout
MILPO - The strike did not spread to Milpo, one of Peru's top zinc producers, the company said.

US Steel sees decline in Q4

While releasing the quarterly results recently, Mr John Surma CEO of US Steel while commenting on outlook said that "We expect a decline in overall results for the fourth quarter mainly due to normal seasonal effects and several scheduled blast furnace outages. North American flat rolled inventories and imports are at relatively low levels and over time the weaker US currency should favor many of our steel consuming customers. In Europe, steel consumption remains healthy; however, high imports, particularly from China, and high service center inventories are resulting in some pressure on spot prices and order rates."

He added that “For Flat rolled, fourth quarter results are expected to decrease from the third quarter due primarily to lower shipments and higher raw material, outage and modernization related costs. Prices are expected to remain in line with the third quarter.”

He said that “Fourth quarter results are expected to decrease for US Steel Europe. Prices and shipments are expected to remain comparable to the third quarter levels and costs are expected to increase slightly. Two planned blast furnace outages will continue to limit raw steel production.”

He added that “In conjunction with efforts to increase productivity, we are commencing a voluntary early retirement program at U. S. Steel Kosice, which we anticipate will generate substantial future cost savings. We will not know the employee response to this program and the amount of the resulting fourth quarter charge until later this year.”

He further said that “Fourth quarter results for Tubular are expected to be consistent with third quarter results as average realized prices and costs are expected to improve and shipments should decrease, due primarily to continued high inventory levels and year-end seasonal effects.”

Corus Tubes wins Perdido Norte pipeline contract

It is reported that Corus Tubes will manufacture and deliver line pipe for one of the world's deepest pipelines, the Perdido Norte project in the Gulf of Mexico.

As per report, Corus Tubes has been contracted by Williams to deliver 312 kilometer of uncoated steel line pipe for use in ultra deep water depths ranging from 1,066 meter to 2,529 meter with a rugged seabed terrain.

The 18 inch pipe will be manufactured at the Corus Tubes Mills at Hartlepool in UK, using the world's strongest Crimp and O press combination. The process, used in conjunction with Corus Tubes' expansion system, enables the production of heavy wall pipes with excellent dimensional tolerances and collapse resistance capabilities, ideally suited to the extreme conditions of ultra deep waters.

Mr Tim Bird of Corus Tubes Energy said that "We are delighted to have been selected to manufacture and deliver line pipe for such a ground breaking development which is pushing the boundaries of exploration and production to access deeper depths and resources. This project reflects our leading edge capabilities in pipe production and delivery and capitalizes upon the deployment of the world's strongest 'C' and 'O' presses allowing us to create a pipe which combines relatively small outside diameter, a thick wall and very tight dimensional tolerances."

CITIC signs major iron ore deal in Australia

It is reported that Hong Kong based conglomerate CITIC Pacific has inked a deal to acquire Korean Steel, which holds the rights to develop a 1 billion tonne magnetite iron ore project in the Pilbara region of Western Australia.

The project is being acquired for more than USD 200 million plus continuing royalty payments to Mineralogy. The agreement is with Mr Clive Palmer and his private company Mineralogy as Korean Steel is a wholly owned subsidiary of Mineralogy.

Under the deal, CITIC will develop a port at Cape Preston, about 100 kilometers south of Dampier, which Australasian will have access to on a capital and operating shared cost basis. Construction of the port is expected to begin in about a month, and CITIC is understood to have amassed a significant workforce on site.

It is CITIC's second deal with Mineralogy. It follows an agreement in March last year to acquire the right to mine up to 6 billion tonnes of magnetite iron ore at Mineralogy's large Balmoral deposit in WA.

Tenova to build walking beam furnace for Salzgitter HSM

SZFG Slaughter Flachstahl has recently awarded Techint Italimpianti Deutschland, a company of Tenova LOI Italimpianti, the contract for engineering, fabrication, erection and commissioning of one walking beam furnace for hot strip mill in Salzgitter. The complete equipment will be started up in July 2009.

The furnace fulfils the highest conditions about homogeneity of temperature, scale losses, efficiency and emitted values. The furnace is designed for a capacity of 300 tonnes per hour to heat up slabs with different qualities to 1,280 °C with thicknesses from 180mm to 270mm, widths from 700mm to 2,200mm and lengths from 4,800mm to 12,400 mm. The new furnace with length of 33,800 mm and width of 13,600 mm will be connected in series to the existing furnaces with the purpose to increase the mill load capacity.

The order includes a turn-key plant of a bilateral heated walking beam furnace equipped with TENOVA LOI Italimpianti FlexyTech®– LO-NOx high speed and roof radiant burners, designed to run with natural gas and coke oven gas depending on the newest technology, as well with two systems of recuperators for preheating combustion air. For transportation the hot slabs from the furnace to the mill there will be extend the existing roller table. Furthermore for charging and discharging the slabs in/out the furnace is provided with separate machines. The furnace is equipped by customer with one control system for supervising and controlling the heating installation of 12 zones and one electrical supply system with automation for supervising and controlling the movements of the plant.

Tenova LOI ITALIMPIANTI is a leading supplier of industrial furnaces and services for the metal industry. Tenova, former Techint Technologies, design and supplies advanced technologies, products and services for the metal and mining industries.

Leighton bags AUD 700 million iron ore mining deal from BHPB

Leighton Holdings announced that its HWE Mining unit has been awarded a two year contract extension at the BHP Billiton Area C iron ore mine in Western Australia state's Pilbara region.

The contract is worth about AUD 700 million and the unit will provide complete mining services at the operation from the project's completion date of June 2008 until June 2010.

The Area C mine produces 23 million tonnes of iron ore a year and production is projected to almost double to more than 42 million tonnes a year.

CSC production update for October 2007

Taiwanese steel major China Steel Corporation has given a production update for the month of October 2007 and for January to October 2007.

Volume in tonnes

Amount in million TWD

October 2007 income includes long term investment income of TWD 1,035 million.

Teck Cominco Q3 profit slips to CAD 490 million

Vancouver based mining company Teck Cominco announced that its Q3 of 2007 profit fell by 2.8% as the negative impact of the stronger Canadian dollar overshadowed higher revenue.

Teck, which bought Aur Resources this year to boost its copper production, earned CAD 490 million (USD 516 million) in the quarter, down from CAD 504 million in the year before period. It said that profit was hurt by a CAD 59 million loss from repatriating US dollars to Canadian funds for the CAD 4.1 billion acquisition of Aur, which was largely financed by cash. Teck's cash position following the Aur takeover was CAD 1.8 billion.

Financial Highlights and significant items are
1. Net earnings were CAD 490 million in the third quarter including a cumulative foreign exchange loss of CAD 59 million.
2. After eliminating the effect of this non cash loss and other non recurring items, adjusted net earnings were CAD 545 million as compared with CAD 502 million in 2006. Cash flow from operations was CAD 814 million in the third quarter compared with CAD 752 million in 2006.
3. Operating profits increased to CAD 894 million from CAD 876 million in the third quarter of 2006.

Mr Don Lindsay president & CEO said that “In the third quarter profits were stable while we continued our program to create growth for the future. We significantly increased our copper reserves and production while also adding to our position in coal and oil sands. However, the strengthening Canadian dollar will have a significant negative effect on our cost base and operating profits in the future.”

Teck Cominco is a diversified mining company. It is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold, indium and other specialty metals.

Hyundai Steel's Q3 earnings up by 4.2% YoY

South Korea's No.2 steelmaker Hyundai Steel Co announced that its third quarter earnings increased more than 4% YoY on the back of increased sales and higher product prices.

Its net profit reached KWR 102 billion (USD112 million) in the July to September 2007 period as compared with KWR 97.8 billion in July to September 2006.

Outokumpu to align its organization starting 2008

Outokumpu announced that it will align its organization into an integrated model emphasizing the one company approach towards customers to facilitate its strategy announced earlier. The new organization and responsibilities of the Group Executive Committee members will be effective as of January 1st 2008.

Juha Rantanen CEO - Responsibility: Group management, communications and IR and corporate social responsibility
Karri Kaitue deputy CEO - Responsibility: Group strategy, business development and M&A, new ventures, legal affairs & IPR and portfolio businesses.
Jamie Allan EVP Supply Chain Management - Responsibility: Production excellence, SCM operations, procurement, and control and steel balance.
Bo Annvik, EVP Specialty Stainless. Responsibility: Special Coil and Plate, Thin Strip, OSTP and investment projects.
Pekka Erkkilä EVP - General Stainless. Responsibility: Tornio Works, Long Products, R&D, energy procurement, and safety, environment & quality.
Andrea Gatti, EVP - Group sales and marketing. Responsibility: End-user & project sales, distributors & processors sales, European stock & processing development, pricing office and sales company controlling. Esa Lager, CFO. Responsibility: Financial and business control, treasury and risk management, IT, change management and projects, and real estate.
Timo Vuorio, EVP - Human Resources. Responsibility: HR strategy and policy, and key HR processes: performance management (incl. compensation), resource management and HRD & leadership, and head office administration.

The release said that “The new organization is designed to serve customers in an optimal way. Sales will be organized into customer segment groups that are served by dedicated teams. A customer will have a one point contact in Outokumpu to the entire offering of the Group. In the integrated organization Business Units will be in charge of product strategy and overall profitability. The cross organizational Group Sales & Marketing will be responsible for the delivery of commercial targets, and the Supply Chain Management for the end to end delivery performance. The responsibilities of the Group Executive Committee members will be adjusted in accordance with the new integrated organization.”

It also announced that a new appointment has been made to the Group Executive Committee. Mr Jamie Allan currently SVP Thin Strip, will take up the position of executive VP Supply Chain Management, as of January 1st 2008.

Outokumpu had announced in September 2007 that the company enters the next phase in its strategy development aiming at delivering a more stable and profitable business model, with increasing the share of value added special grades sales and increasing the share of sales to end-user and project customers, whilst also addressing the most attractive growth opportunities.

Universal Stainless unit reaches new employee deal

Universal Stainless & Alloy Products Inc said that its Dunkirk Specialty Steel subsidiary reached a five-year deal with about 140 workers represented by the United Steelworkers union.

Dunkirk Specialty Steel is based at Dunkirk in New York.

Schnitzer Steel earnings drop in Q4

Portland based metals recycler Schnitzer Steel Industries Inc announced that its Q4 results were hurt by higher costs. Its net income dropped by 24% YoY to USD 38 million from USD 50 million in Q4 of 2006. Total revenue for the quarter rose to USD 748.5 million from USD 604.6 million a year ago.

Schnitzer Steel’s revenue from the metals recycling segment in the Q4 rose by 26% YoY to USD 615.7 million or about 82% of total revenue, driven by increased volumes and strong prices.

Strong revenue from metals recycling was offset by higher conversion costs due to the installation of its fourth mega shredder at its Portland, Oregon export facility and also higher selling, general and administration costs.

Operating income from metals recycling business fell to USD 46.93 million for the quarter from USD 59.56 million in Q4 of 2006. Manufacturing business also posted lower operating income for the quarter at USD 19.52 million as compared to USD 21.42 in Q4 of 2006.

Schnitzer also said that during the quarter, the company repurchased one million shares of its Class 'A' common stock at an average cost of USD 53.75 per share. The company may repurchase an additional 2.2 million shares under the existing authorization.

Schnitzer Steel Industries is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 34 operating facilities located in 11 states throughout the country, including six export facilities located on both the east and west coasts and in Hawaii. The company's business also includes auto parts and steel manufacturing.

POSCO may build power plant for its Vietnamese steel mill

It is reported that POSCO is considering building a power plant alongside an integrated steel mill it is working on in Vietnam. The plant would help recycle by product gases from the mill and ease the lack of power in the country.

POSCO said that it is considering building facilities to process by product gases and liquid natural gas within the integrated steel mill, which it is working on in cooperation with Vietnam’s state run shipbuilder Vinashin Group.

PSOCO also said it is reviewing the legality of selling leftover power after meeting demand at the mill, which will use the company's Finex technology instead of the conventional shaft furnace process.

POSCO signed a MoU with Vinashin in May to build the mill and is now reviewing its feasibility. It has until the end of this year to commit to the plan. POSCO plans to build the facilities in phases the first phase of the mill would be able to produce 4 million tonnes annually and later phases another 4 million tonnes.

US EPA to hold public hearing on US Steel pollution permit

Responding to requests from environmental groups, the public and public officials, the US EPA has announced it will hold a public hearing in December on objections to a draft water pollution discharge permit for US Steel's Gary Works plant. The agency plans to hold the hearing in northwest Indiana in mid December.

The Alliance was one of a dozen groups that called on the EPA to hold a public hearing on objections to a draft wastewater discharge permit issued by Indiana regulators that would allow, among other things, US Steel Corp five more years to comply with federal water quality standards. Mr Lyman Welch Alliance water quality program manager said that "The Alliance is thrilled. The permit should go further to require US Steel to reduce its pollution to protect Lake Michigan and the Grand Calumet River."

In an October letter to the EPA, the newly formed Lake Michigan Environmental Coalition created in the wake of last summer's controversy surrounding a BP water pollution discharge permit renewal urged the agency to hold a public hearing on the US Steel permit within 90 days to ensure all objections are addressed. The EPA raised objections to parts of Indiana's permit in two letters to the state last month; those objections must be resolved before the permit can be issued.

Mr Mary Gade EPA Region 5 Administrator in a press statement said that "EPA has decided to hold this hearing because US Steel Gary Works is one of the largest steel mills in the country and there is tremendous public interest in how it affects the environment. US Steel discharges wastewater into the Grand Calumet River, part of an Area of Concern on the Great Lakes and a high priority for EPA."

AK Steel to raise spot prices for carbon steel by USD 30

AK Steel announced that it will increase spot market prices for its carbon steel products by USD 30 per ton for all new orders accepted for shipment on January 1st 2008 and later.

AK Steel said that the price increase is in response to increased demand for carbon steel products, as well as the need to recover higher costs for steelmaking inputs.

AK Steel produces flat rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.

Coal exploration may destroy farmland in NSW

According to New South Wales Greens, inviting mining companies to explore for coal in northern NSW could jeopardize valuable agricultural land. As per report state government has given companies until February to lodge an expression of interest in exploring 190 square kilometers of the Liverpool Plains in south of Gunnedah.

Ms Lee Rhiannon a member of Greens said that “This showed Premier Morris Iemma was willing to sell out to the greed of mining companies. At a time when climate change has the potential to disrupt farming practices, the Labor government should be working to safeguard all agricultural land. A key way to achieve this is to stop mining in agricultural areas and to tackle climate change by phasing out the coal industry."

She added that the “Liverpool Plains contained some of Australia's richest agricultural land. The fertile black soils are fed by a number of aquifers that would be broken if mining is allowed in this area."

Ms Rhiannon said that Coal companies were desperate to open any new coalfields before any restrictions induced by climate change came into play. She added that if the NSW government bowed to their requests it would show a real lack of commitment to tackling climate change. She said that "The government should be bringing forward a plan to restrict coal mining and expand the renewable energy jobs that is where jobs growth lies."

TPG Axon Capital discloses 7.8% stake in SDI

TPG Axon Capital in a 13G filing on Steel Dynamics disclosed a 7.8% stake in the company. The firm did not show a stake in Steel Dynamics at the quarter ended June 30th 2007. A 13G indicates a passive investment.

According to Stockpickr.com, "TPG Axon Capital is a leading global investment firm with over USD 5.8 billion of capital invested in public and private markets around the world. TPG Axon spun out of buyout firm Texas Pacific Group. TPG-Axon is led by the former head of Goldman Sachs' Principal Strategies Department, Dinakar Singh. Through offices in New York City, Hong Kong and Tokyo, TPG-Axon Capital has invested across a broad range of industries in more than 20 different countries, including investments in healthcare, pharmaceuticals, financial services, technology, energy and basic materials and retail."

Steel Dynamics is a steel producer in the United States, with an annual steelmaking capability of 5.2 million tons.

Cleveland-Cliffs Inc reports Q3 results

Cleveland Cliffs Inc announced its July to September 2007 quarter and January to September 2007 periods. In addition, the Company confirmed its 2007 iron ore sales guidance of 22 million tons in the North American and 8 million tonnes in the Asia Pacific, markets. Cliffs also expects to produce approximately 4.5 million tonnes of metallurgical coal in 2008.

Consolidated July to September 2007 quarter revenues were USD 619.6 million up by 7% YoY as compared with USD 580.1 million in July to September 2006 quarter. The increase was driven by USD 33.9 million in sales generated by PinnOak Resources, LLC the metallurgical coal producer Cliffs acquired at the end of July and USD 18.8 million in increased revenues from Asia Pacific Iron Ore, partially offset by volume decreases in North America.

Operating income for the July to September 2007 quarter decreased by 31% YoY to USD 81.9 million from USD 119.5 million in the 2006 July to September 2006 quarter. The decline was primarily due to losses at PinnOak and increased Asia-Pacific Iron Ore costs related to the weakening US dollar compared with the Australian dollar. Its net income was USD 56.9 million as compared with USD 89.1 million in 2006. In addition to lower operating income, higher interest expense related to debt incurred for the PinnOak acquisition negatively impacted net income in the quarter.

Highlights for Q3 results:
1. Consolidated Revenues Rise by 7% to USD620 Million, with Net Income of USD 57 Million.
2. Company Reaffirms 2007 Iron Ore Sales Outlook at 22 million tons in North America and Eight Million Tonnes in Asia Pacific
3. PinnOak Resources Acquisition Provides Cliffs 4.5 million tonnes Metallurgical Coal Position in 2008

Mr Joseph A Carrabba chairman, president & CEO of Cleveland Cliffs said that "As sometimes occurs in mining, unanticipated geology at our Pinnacle Mine negatively impacted short-term, quarterly results. However, the combined iron ore and metallurgical coal assets in Cliffs' existing mine portfolio position the Company well to take advantage of the expected and much publicized 2008 increases in iron ore and metallurgical coal pricing."

Cleveland Cliffs Inc headquartered at Cleveland in Ohio is an international mining company, the largest producer of iron ore pellets in North America and a major supplier of metallurgical coal to the global steelmaking industry. The Company operates six iron ore mines in Michigan, Minnesota and Eastern Canada and three coking coal mines in West Virginia and Alabama.

Japanese steel majors to cut domestic sheet steel supply

It is reported that Japanese integrated steel makers apparently revise the sheet steel output plan for domestic market downward for October to December 2007 period

Japanese hot, cold and coated sheet steel inventory held by makers, distributors and processors decreased by 1.2% or 52,000 tonnes to 4.198 million tonnes for domestic market at end of September from August, which was first drop in 3 months.

The drop was only 50,000 tonnes level due to very slow building demand due to transition process for new building standard law though the inventory normally decreases by around 110,000 tonnes toward demand season.

Zinifex and Drake Resources extend base metal exploration JV

Platts reported that Australia's Zinifex and Drake Resources are extending their base metal exploration JV Alliance, till December 2008.

To fund the extension, both companies said an additional budget of AUD 1 million in cash, for the period from September 2007 to June 30th 2008. The collaboration is focused on identifying high quality zinc, lead, silver and copper targets within selected regions in Australia, Scandinavia, North America and Southern Africa.

The Alliance was established in September 2006 with an initial budget of AUD 640,000, including a cash budget of AUD 400,000.

Metex Resource JV boosts coal production

Mineral explorer Metex Resources rose by as much as 18% after it announced that Carbon Energy, a 50:50 JV between Metex Resources and CSIRO has increased the coal resource at Bloodwood Creek in Queensland to 100 million tonnes.

Mr Ian William Walker MD of Metrex said that a total of 22 drill holes for 5,103 meter have been completed, testing the Macalister coal seam to depths of approximately 200 meter. The average Macalister seam thickness intersected is 9.2 meter.

Mr Walker said that "Using conventional estimation techniques and an average bulk density of 1.5 the resource meets the requirements of a JORC (2004) compliant Inferred Coal Resource of 100 million tonnes of high quality coal. This resource remains open along strike and down dip and is expected to increase significantly with further drilling."

Metex Resources estimates that this resource of 100 million tonnes of coal contains in excess of 2,000 peta joules of energy, with an estimated 1000 peta joules of energy potentially recoverable.

Carbon Energy is an energy company that created large scale projects delivering clean power and liquid fuels from coal. The key to this is coal gasification which transfers the energy from coal into syngas hydrogen and carbon monoxide, an extremely versatile and easily handled product.

James River Coal reports Q3 results

James River Coal Company announced that it had a net loss of USD 9.7 million for the Q3 of 2007 and a net loss of USD 35.6 million for the January to September 2007 period. This is compared to a net loss of USD 8.4 million for the Q3 of 2006 and a net loss of USD 10.4 million for the January to September 2006 period.

James River Coal said that the results for the Q3 of 2007 and the January to September 2007 include a USD 6.1 million gain on curtailment of the Company's defined benefit pension plan. The USD 6.1 million gain on curtailment is not included in the calculation of Adjusted EBITDA.

Mr Peter T Socha chairman & CEO of James River Coal said that "Overall, we are very pleased with how some fundamental dynamics affecting our business are developing. The mines are currently performing well. The productivity impact of the new safety regulations is still present, but we are adjusting. The previously announced changes to our mine portfolio are progressing on schedule. Lastly, but very importantly, coal prices are starting to rise after a prolonged slump."

James River operates five mining complexes in eastern Kentucky and one in southern Indiana.

Hyundai Mipo wins KRW 435 billion bulk carrier order

Hyundai Mipo Dockyard Co, a unit of the world's largest shipbuilder Hyundai Heavy Industries Co said that it clinched a deal valued at KRW 435 billion (USD 478 million) to build 10 bulk carriers.

Hyundai Mipo in a regulatory filing said that the contract from a European shipping company calls on Hyundai Heavy to deliver the vessels by November 2011.

Nordic American buys Olsen resales

Bermuda based Nordic American Tanker Shipping is to buy two Suezmax, for delivery in Q4 of 2009 and by end April 2010, from subsidiaries of First Olsen for USD 90 million per vessel, including calculated pre delivery interests and supervision expenses. Bohai Shipbuilding in China. The vessels were contracted in September 2006 USD 73.7 million per ships.

Nordic American said that “The acquisitions will be financed by borrowings under the Company's USD 500 million Credit Facility. There are no plans to have a stock issue in connection with these transactions. The outlays during construction will not impact earnings and dividends. The delivery of the newbuildings will increase the Company's fleet to 14 modern double hulled Suezmax tankers and enhance the Company's earnings and dividend capacity.”

Allegheny Technologies approves share repurchase program

Allegheny Technologies Incorporated announced actions designed to continue to increase stockholder value and further improve the funding status of the Company’s defined benefit pension plan.

The ATI Board of Directors approved a share repurchase program of USD 500 million and increased ATI’s quarterly dividend by nearly 40% to USD 0.18 per share. In addition, ATI plans to make a voluntary contribution of USD 100 million to its US defined benefit pension plan in the fourth quarter 2007. It said that repurchases of Company stock are expected to be made on the open market or in unsolicited or privately negotiated transactions. Share repurchases are expected to be funded from internal cash flow and cash on hand. The number of shares to be purchased, and the timing of the purchases, will be based on several factors, including the level of cash balances, general business conditions, and other investment opportunities.

Mr L Patrick Hassey chairman, president & CEO of Allegheny Technologies said that “These actions by our Board demonstrate our focus on continuing to provide value to our stockholders,” said “For the first time in the Company’s history, we have more cash than debt, and we expect strong cash flow to continue. Our strong financial performance and cash position allow us to return value to our stockholders while continuing to self-fund ATI’s proactive growth strategy. “We believe that ATI is one of the best investments available today. The Company is very-well positioned to achieve strong earnings growth from the global markets that have been driving our profitable growth over the last several years.”

Allegheny Technologies Incorporated is one of the largest and most diversified specialty metals producers in the world with revenues of USD 5.6 billion during the most recent four quarters ending September 30, 2007. It offers growing global markets a wide range of specialty metals solutions.

DP World launches IPO to raise up to USD 4.3 billion

Khaleej Times reported that container terminal operator DP World has launched the largest initial public offering in the Middle East, which could raise up to USD 4.3 billion for the company and value it at up to USD 21.6 billion. The shares will be listed on the Dubai International Financial Exchange.

Port and Free Zone World, DP World's owner, will sell 2.822 billion shares or 17% of DP World's equity at between USD 1 and USD 1.30 per share. The offering also includes an option, known as a greenshoe, to sell another 3% or 498 million shares, to meet demand. The final price of the shares will be established through a bidding process with institutional investors, which will set a market price before listing. The final price, to be paid by both retail and institutional investors, will be announced on or around November 21st 2007.

Merrill Lynch International, Deutsche Bank, Millenium Finance Corporation and Shuua Capital are acting as joint global co ordinators and joint lead managers to the listing. The receiving banks for the UAE retail offer are Mashreq Bank, Emirates Bank, Abu Dhabi Commercial bank and First Gulf Bank. Mashreq Bank is the lead-receiving bank. The offer became available to retail investor applications from yesterday. Applications will be accepted by receiving banks until 12 noon on November 15th 2007.

Mr Jamal Majid bin Thaniah executive VC of DP World and group CEO of R&FZ World said that "The indicative price range reflects DP World's strong reputation internationally and confidence in its future. DP World is a long term business and pre-marketing has indicated that potential investors recognize that and are interested in a correspondingly medium to long-term investment in our shares."

DP World has 42 terminals in 22 countries, many of which are located in the Middle East, India and China, from where much of the company's future growth is expected to be concentrated. In 2006, DP World's volumes grew at about 18 per cent compared with broader market growth of about 11%.

Stroytransgaz completes start up complex of Arab gas pipeline construction

It is reported that Russian construction major PJSC Stroytransgaz has completed construction of the first start up complex of the Arab gas pipeline in Syria.

The Arab gas pipeline runs from the Jordan Syrian border up to the gas gathering station Al Ryan near the Syrian city of Homs. The 36 inches diameter, 139 kilometer long gas pipeline also includes gas pipeline branches to power stations Deir Ali and Tishrin with total length of 17 kilometer.

Scope of works of the first start up complex included installation of 5 line valve stations, 4 scraper launching or receiving stations, 1 gas fiscal metering station, SCADA System, telecommunications, gas leak detection system, fire fighting system, cathodic protection system, automatic control and instrumentation system, power supply system, and also construction of group of buildings and structures, provided for by the contract. Along the whole length the linear part of the gas pipeline is welded, laid down in the trench and tested.

The owner of the Arab gas pipeline is the Syrian Gas Company. The project is implemented on engineering and procurement conditions. The major subcontractors are OOO STG Engineering and the Syrian construction company Hesco.

Al Rushaid inks JV with NATCO Group for pressure vessel unit

NATCO Group Inc announced that its subsidiary has entered into a JV agreement with Saudi Arabian energy enterprise Al Rushaid Petroleum Investment Company to build, market and sell process equipment and systems and related services.

The JV agreement includes the construction of a new, dedicated vessel manufacturing facility within Al Rushaid's new industrial complex in Jubail. The construction of the facility is expected to be completed by year end 2008. The facility will have the capability to manufacture pressure vessels for the upstream, downstream and petrochemical markets. In addition, the venture will have the capability to deliver skidded packages incorporating NATCO production processing technologies.

Mr John Clarke chairman & CEO of NATCO said that "This is a significant step for NATCO in our pursuit of technology and process equipment deployment to the largest oil producing market in the world. Our alignment with the Al Rushaid Group establishes a relationship with a world renowned partner with significant capabilities in the Kingdom, including engineering, manufacturing, construction, drilling and market presence. "

Mr Clarke added that "We believe that establishing local presence in the Kingdom with a substantial partner will accelerate our ability to penetrate this important world market. When the new facility is completed and the joint venture operation becomes fully staffed, we expect that sales to both new build and retrofit markets will be significant.”

Mr Sheikh Abdullah of Al Rushaid said that "We are delighted to partner with NATCO in the Kingdom. We selected NATCO as a partner due to its recognized leadership in process technology and equipment manufacturing. The Saudi Arabian market is large and complex and represents a significant opportunity to apply technology to various industry sectors."

NATCO Group Inc is a leading provider of wellhead process equipment, systems and services used in the production of oil and gas. NATCO has designed, manufactured and marketed production equipment and services for over 80 years. NATCO production equipment is used onshore and offshore in most major oil and gas producing regions of the world.

Dubai International Capital acquires Almatis

Dubai International Capital LLC recently announced that it has agreed to acquire Almatis, the world's leading producer of specialty alumina from funds controlled by Rhône Capital LLC and Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan.

Frankfurt based Almatis is the global leader in the research, development and production of specialty alumina materials used in various industrial manufacturing processes such as steel refractories, ceramics and flame retardants. Its modern global manufacturing capability spans 3 continents, with 8 manufacturing facilities in Germany, the Netherlands, the United States, Japan, China and India, and employing over 900 people. It expects to grow its presence in China, Russia, India, Brazil and the Middle East. Almatis has already launched an expansion program to raise its global capacity by almost 20% to around 750,000 tons by 2010.

Mr Sameer Al Ansari executive chairman & CEO of Dubai International Capital said that “We are delighted to be making this announcement today. Almatis is the global leader for specialty alumina and has a robust brand associated with the highest product quality and reliability. We view this acquisition as an important milestone in the evolution of Dubai International Capital Private Equity, as it demonstrates our ability to operate even in the most challenging mergers and acquisitions and credit market conditions and reinforces our position as a partner of choice for private equity owners and management teams alike.”

Iran Turkey gas pipeline construction to cost USD 5 billion

Midlands News Association quoted Mr Seyyed Reza Kassaeizadeh Iran’s deputy petroleum minister for gas affairs as saying that it will cost USD 5 billion to construct the pipeline that carries its gas to Turkey and Europe. The project will be done according to the build own operate scheme. He added that Iran is to export 110 million cubic meters of gas to Turkey per day.

The Iran Turkey pipeline is a 2,577 kilometer natural gas pipeline, which runs from Tabriz in North West Iran to Ankara in Turkey. The construction of pipeline started in 1996 after gas deal between Turkish and Iranian governments and was completed in 2001. The Turkish section, operated by BOTAŞ, costs USD 600 million. The Turkish import consists 20 to 22 million cubic meters of natural gas per day.

It is noted that Iran and Turkey signed a 25 year, USD 30 billion contract in 1996. The contract went into effect on December 10th 2001 and Iran has exported 20.74 billion cubic meters of natural gas to Turkey since then. The figure stood at 18.8 billion cubic meters until the end of the past Iranian calendar year, 1.7 billion cubic meters of which pertained to the first quarter of the current year.

In Erzurum, the South Caucasus Pipeline is linked to the Iran Turkey pipeline. In future, these two pipelines will be main supply for the planned Nabucco Pipeline from Turkey to Europe.

Brush Transformer starts production in Middle East

Brush Transformer, 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 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 in the presence of British Ambassador to the UAE, Mr Edward Oakden. Senior officials from the government and private institutions and the media were present at the opening.

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."

The range of units the factory will build is between 33 KV to 132 KV voltage class, up to 90 MVA. This range is widely used in the transmission of power from a generating plant to the end user.

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."

Yemeni tribesmen blow up oil pipeline

Yemeni security and oil officials said that Yemeni tribesmen had blew up a pipeline that carries crude oil to a Red Sea export facility but export operations were unaffected.

A security official said that according to preliminary investigations the bombing did not appear to be linked to Islamist militants. Yemen is a small producer of oil with an output of around 330,000 barrels per day.

Oman H1 GDP up by 8.3% YoY

Oman News Agency reported that Oman's gross domestic product has risen by 8.3% YoY to OMR 7.266 billion (USD 18.88 billion) in January to June 2007 period as compared to that of January to June 2006 period driven by expansion in natural gas production and non oil sectors such as industry.

Growth in the first half was mainly due to a 30.1% gain in the contribution of natural gas to OMR 262.3 million as against OMR 200.4 million in the first half of 2006.

The value of crude oil and gas output has rose by 0.2% to OMR 3.41 billion. The value of non oil sector output rose by 16.9% OMR 3.98 billion, while the value of industrial sector output grew up by 17.9% to OMR 971.3 million.

Chinese HRC export prices strengthen after holidays

Mysteel believes that there is strong likelihood that Chinese HRC export price is going to improve in November due to firm domestic market prices coupled with rising input cost and possible short supply.

HRC prices in home market have seen little change in the past three weeks from early October level. On Shanghai market, commodity grade 4.5-11.5mm thick and 1500mm wide HRC is being offered at CNY 4160 to CNY 4170 per tonne, 1800mm wide material at CNY 4500 per tonne as compared with CNY 4120 to CNY 4150 per tonne and CNY 4450 to CNY 4500 per tonne on October 8th 2007, the first working day following China's 7 day long National Day Holiday.

Domestic prices are expected to turn strong gradually as there would be less supply when major steel makers choose to arrange maintenances in November. In addition, MySteel believes that producers are pulling together to reduce the availability of HRC, thus leading to better environment for raising EX works prices to offset the rise or the expected increase in raw material cost.

Steel makers have shoot up export offers for commercial 4.5mm to 11.5mm HRC by USD 5 per tonne to USD 585 per tonne on FOB basis citing fewer supplies during repair and maintenance period. A Trader told MySteel that "We are told that HRC tonnages for export are largely reduced and there are fewer activities now. Some e just keep price flat but claim no resource for export now.”

MySteel forecasts that “However, there would not be surge in prices on a short term basis since exports is slowing down. The contracting profit margin over domestic market prices is pressing down the exports. Despite that, current export offers are more connected with home market and steel mills are not willing to export at level lower than that in domestic market. So it probably would edge up little by little among fluctuations.”

(Sourced from MySteel.net)

Coke price in China increase by CNY 80 per tonne

It is reported that Shanxi Coking Industry Association members have nailed down a CNY 80 per tonnes price hike following the thermal coal price rise, pushing up first grade metallurgical coke to CNY 1400 per tonnes to CNY 1450 per tonnes and the second grade coke to CNY 1300 per tonnes to CNY 1350 per tonnes. This is the fourth time coke price is raised and is largest.

The association noted the price hike is attributable to coal price gains across the province.

According to Mr Lai Lihui analyst with Great Wall Securities “As domestic coking enterprises are all members of the Shanxi Coking Industry Association, other provinces like Henan, will follow suit once Shanxi hikes the price and this move can be understood with the whole coke industry.”

He said the price hike would mainly influence the smelting industries, like metal and steel making. Take pig iron as an example, coke covers a 20% to 30% ratio of the cost and this hike is to raise the cost by 5% to 6% accordingly.

(Sourced from MySteel.net)

Baosteel may build steel plants overseas

It is reported that Baosteel Group Corp, which is planning to almost triple steelmaking capacity by 2012, may build plants in the Middle East, Southeast Asia and developing countries as expansion in its home market of China slows and approvals for new mills are restricted to ease raw material shortages.

Mr Xu Lejiang Chairman of Baosteel said that biggest steelmaker will also study opportunities in Eastern Europe, Africa and Pakistan. Mr Xu said “Rapid expansion of the Chinese steel industry is ending. We have little chance of building mills in developed countries, so we will focus on developing countries.''

The plan puts Baosteel in direct competition with ArcelorMittal and POSCO, who are also seeking growth in Asia, Africa and Eastern Europe to cut costs and benefit from faster economic expansion.

Mr Ma Keming an analyst with Hua Tai Securities Co said in Nanjing that building steel plants overseas is a trend for Chinese steelmakers as domestic expansion slows. China has been exporting a lot of steel to Iran, Saudi Arabia and other Middle Eastern countries. The demand has huge growth potential.''

Baosteel is already building a USD 3.6 billion plant in Brazil, as part of its strategy to boost production capacity to 80 million tonnes a year by 2012, up from an expected 28 million tonnes this year.

Chinese steel export during January to September 2007

China has exported 49.516 million tonnes of finished steel products during January to September 2007 period.

The exports were made to 207 countries but 20 countries accounted for 78% of the total exports made. The details are as under

In million tonnes
(Sourced from Mysteel.net)

Chinese steel industry may face difficulties in 2008

China Securities News cited Mr Huang Tianwen president of Sinosteel Corporation at recent World Shipping Summit as saying that facing fiercer competition and structural adjustment, China's steel industry will probably change course next year.

Mr Huang said the impact from the United States' sub prime credit crisis is still felt and the Chinese government as a result may resort to further fiscal measures next year, in an effort to eliminate risks stemming from excessive liquidity.

Mr Huang noted that when China's iron mine import growth accounts 80 percent of the world total, raw material price fluctuations and soaring shipping cost could force Chinese steel industry into a precarious position.

Panzhihua Steel plans group listing

Reuter reported that China's Panzhihua Iron and Steel Group, China’s 15th largest steel mill by output, plans to list on China's stock market in a deal worth more than USD 1 billion.

PZH said in a statement that PZH Steel will merge with two other units of the group, Chongqing Titanium and Sichuan Changcheng Special Steel, and buy core assets worth up to CNY 7.5 billion from the group.

The purchases of shares and assets would be paid for through a private placement of new PZH shares to Panzhihua Group and affiliates. The deal would essentially leave Shenzhen-listed PZH Steel as the listed arm of the entire group.

PZH Steel said shares in PZH, Chongqing Titanium and Sichuan Changcheng have been suspended since mid-August pending an announcement of the deal. They will resume trading recently.

Shougang considering stake in Balmoral iron ore project in Australia

Morning Post cited Mr Chen Zhouping MD of Shougang's deputy as saying that Shougang Concord International Enterprises Co Ltd is considering investing in the USD 2.1 billion Balmoral South Iron Ore Project in the Pilbara region of Western Australia.

Mr Chen said that "We are conducting a feasibility study. It is probable we'll directly invest in the project rather than our parent company, the Shougang Group. If the feasibility study points to a viable project, Shougang could take a 50% stake and sign an agreement to buy all the iron ore output.”

Harsco signs new mill services contract with Ningbo

Harsco Corporation announced that its industry leading MultiServ mill services division has signed one of its largest contracts yet in China, a 12 year agreement valued at more than USD 50 million over its term to support one of China's newest and largest steel operations, Ningbo Iron & Steel.

MultiServ has been selected to operate and manage Ningbo's scrap yard, handling the receipt and stocking of scrap material, accurately loading materials to the mill's prescribed menus, and transporting the material on a real-time basis to the mill's steelmaking furnace. MultiServ's operations will include a computerized scrap management system capable of expansion in line with the mill's expected production increases.

Mr Salvatore D Fazzolari president & CFO of Harsco said that the new contract is a further reflection of Harsco's continuing strategic execution As underscored by this award, Harsco's global growth strategies include steady, targeted expansion in the Asia-Pacific, Eastern Europe, Latin America, and Middle East and Africa sectors to further complement our already strong presence throughout Europe and North America.

The Ningbo works is a major, all new integrated steel plant now being launched in Zhejiang Province, as that region seeks to establish itself as a new iron and steel industrial base along the southeastern coastline of China, near Shanghai. The mill has recently begun blast furnace operations with an initial annual production capacity in the range of two million tons, and is expected to ramp up to full capacity of approximately six million tons within the next three years, making it one of the top 20 largest steel mills in China. The plant is a four-way joint venture of three Chinese steel producers and a Chinese investment firm. The majority shareholder is the nearby HangZhou Iron and Steel Works, MultiServ's largest customer in China.

Baogang's steel exports in 9 months touching 1 million tonnes

It is reported that Baogang Group exported 908,000 tonnes of steel products in the first three quarters of this year, valued at USD 445 million up by 61% YoY.

Baogang has optimized export product mix, increases value added products exports and expanded export channels. Its exports mainly took place to South Korea, EU, US and Southeast Asian countries and comprised of value added products like flats, seamless pipes and heavy rails.

(Sourced from MySteel.net)

Mitsubishi buys minor stake in Shenhua

It is reported that Mitsubishi Corp has acquired a 0.2% stake in China Shenhua Energy Company Limited to expand its natural resources business in China.

As per report, Mitsubishi, which has purchased about 30 million shares in the Chinese firm for about JPY 15 billion (USD 131 million), does not plan to enter into a cross shareholding arrangement with the mining company.

The major Japanese trading house annually imports into Japan about 2 million tonnes of coal produced by Shanhua and plans to boost the amount it handles under a business alliance it plans to make with the company.

In addition to the development of coal mines inside and outside China, the two companies aim to broaden cooperation in the environmental business, including emissions credit trading, the treatment of wastewater from coal mines and the installation of energy efficient devices at mines.

In 2006, China Shenhua Energy produced 235 million tonnes of coal at mines in Inner Mongolia and other places, and also runs power generation stations using coal as fuel. It is a core firm of the Shenhua group, accounting for about 80% of group sales.

New Ore Resources Found in Chengde and Handan

It is reported that in Dongdawa iron mine of Heishan, Chengde, new ore clusters were found with additional titanium vanadium magenite resource of some 20 million tonnes, which can prolong the mine service life by over a decade.

In August 2006, the general survey proved 80 million tonnes resources in Heishan, the titanium vanadium magenite mining area. Titanium vanidium magenite has double value of the common iron ore and is quite tight supplied.

Meanwhile, a very lean magnetite deposit was discovered in a western mountainous area of Yongnian County, Handan, which contains reserves in excess of 100 million tonnes with Fe grade of 12% to 18%. It's also found rich deposits there deeper underground.

Hebei Province has listed the exploration project as this year's items list and established a panel to develop the ore.

(Sourced from MySteel.net)

China welcomes overseas funding for mineral exploration

China Securities Journal cited deputy director of the Ministry of Land & Resources Wang Min as saying that China expects the overseas large enterprises to participate in exploration and development of China's key metal minerals deposits.

In an interview with the media, Mr Wang noted China is carrying out assessment of minerals potential across the nation, with the purpose of grasping status quo of the mineral resource and making estimation of unexplored deposits in a bid to reduce mining risks and absorb social capital.

On the basis of the assessment, the Chinese government would make scientific schemes and introduce in powerful enterprises both at home and abroad to complete for taking part in exploitation and mining. On development of gold, iron, copper, lead, zinc etc, the government has held on that the participants should shoulder risks and reap proceeds on their own; China welcomes big overseas companies' investment and would offer them equal National Treatment in this campaign.

US reduces floor prices for Ukrainian plate imports

YIEH reported that US has reduced the floor price for imports of A 36 Ukrainian plates by USD 18 per ton to USD 658 per ton

The latest import floor prices of other grades are as under
A572 – USD 709 per ton down by USD 17 per ton
A516 – USD 715 per ton down by USD 17 per ton
API-2H – USD 971 per ton down by USD 20 per ton

Ukrainian state coal firms given stiff targets for Nov-Dec

Interfax reported that Ukraine's coal industry ministry has ordered state coal mining companies to produce 8.5 million tonnes of coal in the last two months of the year, including 4.2 million tonnes in November and 4.3 million tonnes in December.

The ministry instructed the head of state company Ukrainian Coal to ensure that 3.43 million tonnes of coal is delivered to domestic thermal power plants by the end of the year, including 1.65 million tonnes in November and 1.78 million tonnes in December.

The ministry also ordered state companies to launch 32 new mine faces and dig 52.2 kilometers of stripping and preparatory mine workings by the end of the year.

It was reported earlier that Ukraine reduced coal production by 4.8% YoY to 62.501 million tonnes in the first ten months of 2007. Production of coking coal fell by 6.5% YoY to 23.671 million tonnes, and output of steam coal dropped by 3.7% YoY to 38.830 million tonnes. State companies mined 34.865 million tonnes of coal in the ten months down by 10.1% YoY

Transneft sees no difficulties in funding Eastern Siberia-Pacific oil pipeline

Itar-Tass reported that Transneft has no difficulties about financing the construction of the Eastern Siberia-Pacific oil pipeline

Mr Nikolai Tokarev president of Transneft president told Vesti-24 program that the costs of the initial stage of the pipeline’s construction are estimated around USD 300 million and that there is an arrangement with Russia’s Savings Bank for financing the project.

Mr Tokarev however said that there are certain problems with subcontractors for the oil pipeline’s construction. He said “There are unfulfilled obligations of subcontractors to Transneft on a number of sections, and there is a lag of three to four months, as compared wilt the schedule.”

He concluded that “He believes the initial stage of the construction of the Eastern Siberia Pacific pipeline will be fulfilled, and the pipeline’s capacities will be fully used.”

Kriogenmash to build the gas plant at NEMZ

It is reported that Kriogenmash has signed a contract for building of new gas plant at Estar Group’s Novozlatoustovsky Metallurgic Works.

The on site scheme stipulates the building and usage of the new plant by Kriogemash at the back of the delivery of the products to NEMZ, whose output of steel is estimated to reach 520,000 tonnes per year. Kriogenmash intends to invest about EUR 28 million into the project.

Kriogenmash is a developing engineering company providing the services on the building, assembling and designing of the air separating plants. The technical gas production process is based upon the equipment made at the Company.

SIBUR Holding calls for tender for steel strap supply

OJSC SIBUR Holding has announced an open one stage tender without preliminary qualification for a contract to supply steel strap.

The steel strap is to be shipped to LLC ToliattiKauchuk within February to March, 2008. The deadline for bid submission is December 5th 2007, the bids will be publicly opened by the committee members on the same day.

Details on the tender, supplier selection criteria and bidding procedures are contained in the notice and tender documentation.