November, 08 2007
Input costs may push steel prices in India
Steel Authority of India Limited forecasts increase in domestic steel prices in the near future as there are expectations of a rise in input cost.
Mr SK Roongta chairman SAIL said "There are possibilities that the prices of input may rise in the coming time, which will force us to raise steel prices. There is a lot of pressure on steel prices due to spiraling cost of input.”
Mr Roongta also informed that steel prices have not increased astronomically during the last couple of years putting a burden on the manufacturing sector. He said that Rates have increased only by 15% to 20% between October 2004 and October 2007.”
Mr Roongta said that the demand for steel is rising at 12% and that the major orders are coming from infrastructure, auto and manufacturing sectors.
Indian emerging as a major player in global steel scenario
Mr Ram Vilas Paswan union minister of steel and chemicals & fertilizers while addressing a press conference, followed by the Parliamentary Consultative Committee meeting to review the Steel sector held in Chandigarh, said that “India is presently emerging as one of the predominant producers and consumers of steel in the world as our growth rate in the steel sector has increased significantly.”
Mr Paswan announced that “India has recently risen to the position of the fifth largest producer of crude steel globally, from its earlier position of seventh in the year 2006.
He underlined the role of public sector undertakings in the rapid expansion of Steel. He said that “Steel Authority of India Limited and Rashtriya Ispat Nigam Limited are undertaking ambitious expansion programs. SAIL’s ongoing expansion program which aims to increase production capacity from the present level of 14.6 million tonnes of hot metal per annum to around 26 million tonnes per annum by the year 2010 at an estimated cost of INR 53000 crores. SAIL is also planning to further expand its capacity to 60 million tonnes by the year 2020.”
Earlier, the Consultative Committee reviewed the progress of the expansion plan and advised that the time line for the expansion program should be adhered to. The members also emphasized the issue of more value added product to be introduced particularly for the automotive sector. The committee expressed concern about the need to ensure availability of critical raw material like iron ore and coking coal to cater to both present as well as post expansion needs. The committee was unanimously of the view that the unbridled export of iron ore must be curbed.
India should make investing in infrastructure attractive - E&Y
Consulting firm Ernst & Young said that, with countries such as Australia, Brazil, China, Russia and US lining up infrastructure projects where they would invite private investment, India needs to take steps to make its infrastructure market more attractive to the investors.
Mr Kuljit Singh, Ernst & Young (Transaction Advisory Services), while launching a report on ‘Investing in Global Infrastructure 2007’, said that “India will have to compete with other developing as well as developed countries for getting private funding in infrastructure.”
Mr Jayesh Desai director of Ernst & Young (Transaction Advisory Services) said that “To attract private investors, the Indian government could take several steps like easing norms for foreign capital by removing external commercial borrowing restrictions, providing fiscal incentives and allowing pension funds to invest in the sector.” He added that additionally, the Indian government needs to ensure that there is a steady flow of infrastructure projects at any given point in time.
It added that “There is a need to focus on state government driven infrastructure projects. India has witnessed over 172 infrastructure projects in the last 15 years with private sector participation and a total investment close to USD 51 billion. Increasingly private investments have started playing a significant role in the development of the infrastructure segment and meet India’s challenge to improve the existing infrastructure.”
However, it said that India is believed to be a good investment destination, among the US and European Union investors, despite political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. The report points out that the average internal rate of return on infrastructure projects in India is about 14% to 20%. India represents vast potential for overseas investment and is encouraging the entrance of foreign players into the infrastructure market to provide much of the capital, creating more opportunities for international investors to join hands with Indian partners in making direct investments in infrastructure in India or creating infrastructure funds.
Naxals hits iron ore movement on east coast in WB again
BL reported that the movement of iron ore rakes on the 450 kilometer long Kirandul to Kottavalasa line has been hit due to the Maoist problem.
A spokesman for East Coast Railway said that “For about a week now, we have been forced to clamp restriction on the rake movement, particularly during the night, in view of the threat by the Maoists. As a result, we are now handling on the route around 8 to 9 rakes a day on an average whereas we can handle up to 15 to 16 rakes.”
The spokesman said that East Coast Railway should now load 11,000 wagons in terms of four wheelers a day to reach a freight target of 96 million tonnes set for the current fiscal. However, the current daily loading rate on an average was 10,300 which, though higher by 2,000 wagons as compared to last year’s average, fell short of the average targeted for the remainder of the current year.
The ore raised from NMDC mines at Bailadila are transported along the Kirandul to Kottavalasa line, partly to meet domestic requirement and partly to Visakhapatnam port for exports.
It might be noted that the iron ore movement on the route has been hit several times in the past few months due to various problems. In the April to September 2007 period, East Coast Railway’s traffic throughput was 43 million tonnes which was 4 million tonnes more than that in the same period of last year but less than the targeted 45 million tonnes set for the period.
PTCL to import 15 million tonnes coal every year
ET reported that Power Trading Corporation Limited has plans to source around 15 million tonnes coal per annum from Australia, Indonesia as well as Africa.
Sources close to the development said that PTCL is also in the process of finalizing a deal to float a financial arm for itself. The source said that “We expect that we will finalize partners for our financial arm by November.”
The proposed company will be a non banking finance company, for which the license from RBI has already been received. PTCL would invest INR 300 crore for its 60% stake, while the two partners would hold 20% share each in to be formed venture. PTC India is also in the process of raising INR 1,200 crore in the current fiscal through placement to qualified institutional buyers.
CIL CCL H1 coal output up by 6.24% YoY
Coal India Limited’s Central Coalfields Limited has posted coal production of 14.48 million tonnes during April to September 2007 period up by 6.24% YoY as against 13.63 million tonnes in April to September 2006 period. It has set a production target of raw coal at 44 million tonnes for 2007-08 as against 41.32 million tonnes in 2006-07.
CCL achieved a 17% growth in overburden removal and 14.1% growth in its off take during April to September 2007 period as compared to the same period last year. Through improvement of off take, it has reduced its coal stock from 10.46 million tonnes on April 1st 2007 to 5.64 million tonnes on October 1st 2007.
CCL's capacity utilization also went up by 15% in the same period. It has scripted a great turnaround from a loss of INR 1102.76 crore to a profit of INR 1020.30 crore. The focus of the celebration was on 5 aspects of social responsibilities like health, environment, safety, community and culture.
CEA clears site for Orissa UMPP project
It is reported that Central Electricity Authority has accorded clearance to the IB Valley site in Orissa for development of an ultra mega power project. Following this, Orissa Integrated Power Limited, the special purpose vehicle for the project, has requested the state energy department to issue a consent letter of the Orissa government for the selected site.
Orissa Integrated Power officials said action for obtaining the state government's approval had been initiated and was expected to be issued as soon as the CEA's clearance was in place.
Meanwhile, water for the project has been allocated from the Hirakud reservoir. A technical team comprising officers of water resources, OHPC, CEA and central water commission visited the reservoir area in September 2007 to explore possibility of creating additional storage in the limbs of IB/Bheden River for water supply to UMPP and other industries.
The team opined that the live storage capacity of the reservoir had been reduced against original capacity due to siltation and some capacity lost due to siltation could be retrieved by desilting. The CEA will work out the estimated cost of de siltation. The coal for the project will be sourced from IB Valley coalfields. Three coal blocks of Meenakshi, Meenakshi B and Meenakshi Dipside, have been earmarked for allocation to the project.
Rail blockade halts coal supply to NTPC Kaniha
SNS reported that coal supply to the NTPC Kaniha power plant came to a halt owing to rail blockade by the oustees, who are claiming for the fulfillment of their jobs and other demands. About 70 land losers who have been substantially affected by NTPC resorted to rail blockade at the Ambamunda village, halting the movement of coal to the NTPC power plant.
Mr Dhaneswar Sahu leader of the protestors alleged that they had to take part in a stir after a year passed by since their last agitation. The promise which was made by NTPC then is yet to be fulfilled. He said that the rail blockade would continue for an indefinite period of time.
However, the agitation has not affected the power generation in the plant as it has enough stock of coal. 5 rakes of coal which had been dispatched from the Lingaraj coal mine have not reached due to the blockade.
Kerala to develop more shipyards
It is reported that Kerala government is planning to develop shipbuilding and repair yards at various strategic locations along the coast and till now it has identified 2 locations including one south of Vizhinjam.
Mr L Radhakrishnan secretary to government ports of Kerala, while addressing at the India Shipping Summit 2007, said that "We have submitted the proposal for both the shipyards to the centre and we are waiting for the approval. Both the shipyards will be developed on public private partnership basis. Kerala is also keen to developing several ports. The berths will be developed by private parties while general infrastructure like dredging will be taken up by the state, which will hold 26% stake in the projects."
Mr Radhakrishnan said that "We are also planning to develop a port at Ponnani through Swiss Challenge Method." He added that the cost of this project is estimated at INR 600 crore. The DPR for this project is under preparation.
The centre has decided to develop Azheekal Port under the National Maritime Development Program. This port will be developed on international standards at an estimated cost of INR 1,550 crore and will be executed in 2 phases that will include 7 multipurpose berths for liquid and container cargo, 2 bulk cargo berths and a terminal for passengers. Tender for consultant has been floated. The consultant will help the state appoint a private partner through global bidding on revenue sharing model. The detailed project report has been already prepared by Delhi based Howe. ICICI Kinfra was the financial consultant. Land acquisition for port-related activities like warehousing and SEZ will also be taken up.
The existing berth at Bypore will be modernized and a new berth will be developed to handle all kinds of cargo at a cost of around INR 600 crore. Tender for consultant to prepare the DPR for the project has been floated. Plans to revive Kollam Port are also on the cards and the state will take up dredging up to 7.5 meters and will construct breakwaters up to 1.5 kilometer.
Kerala also plans to develop a marina, at Alappuzha, for water based tourism like water sports, yacht parking and sailing and will be linked to the backwaters. The project will also involve development of hotels adjacent to the marina. L&T Ramboll has prepared the DPR. The cost of the project is about INR 450 crore and global tender will be called soon.
Gangavaram port to start operations from April 2008
It is reported that Gangavaram port, a public private partnership initiative, is likely commence operations from April 2008. According to the port sources, though the promoters DVS Raju consortium had planned to complete the construction work by the end of December 2007, it was delayed due 2 recent cyclones.
To avoid the damages caused by cyclones, the management has decided to construct a 1,800 meter wave protection wall along the southern breakwaters. So far, 75% of the dredging works, 60% civil works and 50% of breakwater works have been completed. While L&T is carrying out the civil and breakwater works, dredging is being undertaken by Dredge International.
A Gangavaram port source said that “The equipment will come through ship, which will enter the Gangavaram port by November end. Accordingly, we are completing one berth to unload the equipment.”
In the first phase, the port is constructing 5 berths to handle iron ore, coal and other bulk cargo with an investment of about INR 2,000 crore. The state government, which has been offered 11% equity in the project, has allotted 2,400 acres of land. Spain based Durofiligra has bagged the mechanical equipment supply contract and the first consignment is likely to arrive this month.
Gangavaram port is laying a 3.5 kilometer long conveyer belt from the berth to Visakhapatnam Steel Plant to move iron ore and coal besides constructing deep draft berths to handle up to 200,000 DWT deadweight tonnage vessels.
Villagers protest against coal mining in Orissa
Ranchi Express reported that hundreds of villagers of Amarpani under Shikaripara block in Orissa put a team of mining officials including the deputy director Mr Nirmal Kumar under captivity for hours together protesting against coal mining in the area.
The villagers also indulged in heavy brick batting at a police force trying to save the officials and a constable was severely injured. The police later managed to free the team.
Mr Sido Hembrom superintendent of police of Dumka said that FIR had been lodged against some unidentified villagers with the Shikaripara police station.
It is noted that a similar incident was reported for the same area a couple of months back when the villagers had attacked officials trying to survey land. The local people feel that once major projects are on stream, several families would be displaced. They have been demanding review of the stand of the coal companies.
Kandla Port submitted SEZ DPR for government approval
Projects Today reported that Kandla Port Trust has submitted the detailed project report of its proposed SEZ at Kandla in Gujarat for government approval. The DPR was prepared by KITCO.
Kandla port officials informed that the SEZ had received in principle approval from the ministry of commerce and industry and was likely to finalize the contractor soon for executing the project. The project will be implemented on public private partnership basis.
It will include ship berthing, bunkering facilities, shipbuilding yard and single buoy mooring facilities. It will be spread over 6,000 hectares of land and will also have a commercial centre for private participation for heavy industries like fertilizer, coal, cement and steel to set up their facilities. The SEZ comprises 17 units.
Pratibha bags water pump designing contract in Mumbai
Pratibha Industries Limited has informed the BSE that it has secured an INR 70.70 crore contract for design and construction of storm water pumping station at Irla in Andheri West in Mumbai from the Municipal Corporation of Greater Mumbai.
The project involves design and construction of storm water pumping station, including supply, delivery, erection, commissioning of mechanical, electrical, instrumentation and automation works and comprehensive operation.
The project is in JV with Grundfos Pumps Private Limited of Chennai and Keum Jung Industrial Company Limited of Seoul and is to be executed in 12 months.
Suzlon Energy makes changes to REpower management
Suzlon Energy Limited has informed BSE that the supervisory board of German based REpower Systems AG has approved changes in both the membership of the supervisory board and the executive board.
According to the report, Dr Hans Joachim Reh and Dr Jorge Martins will resign from the Supervisory board with effect from January 1st 2008. While, Dr Fritz Vahrenholt present CEO & chairman of executive board of Repower will withdraw from the post with effect from January 1st 2008. Dr Fritz Vahrenholt will become a member of the supervisory board on January 1st 2008 and is proposed to be appointed as the VC. Mr Andre Horbach CEO of Suzlon Group will be also joining as a member of the supervisor board of REpower.
The supervisory board of REpower has also approved the appointment of Mr Per Hornung Pedersen, current CEO of Suzlon Energy A/s, as CEO & chairman of the executive board of REpower with effect from January 1st 2008.
Further Suzlon Energy has informed that, through a voluntary public tender the company through its step down subsidiaries acquired 33.85% of REpower's capital. By this shareholding and voting pool agreements with 2 other REpower shareholders, Martifer and Areva, the Company, subject to certain minority protection and other rights of the 2 other REpower shareholders, controls 86.47% of the votes in REpower as on date.
ABG Industries buys crane from Terex Demag
It is reported that ABG Heavy Industries has sealed a deal to acquire the world's largest crane with a capacity of 3,200 tonnes from Terex Demag GMBH & Co of Germany.
Mr Saket Agarwal director of ABG Group said that "We have concluded the deal to acquire the world's largest crane having a capacity of 3,200 tonnes from Terex Demag GMBH." He added that the crane, acquired for an undisclosed amount, will be used for the entire infrastructure requirements in refineries, petrochemicals, nuclear and bridge construction facilities.
Mr Steve Filipov president of Terex Cranes said that "India became the third country to receive this mammoth size crane from Terex Demag, which has received orders for similar size cranes from the Middle East and another Asian country."
ArcelorMittal acquires 28% equity in China Oriental Group
ArcelorMittal announced that it has entered into an agreement to acquire 820,119,151 ordinary shares or an approximate 28% equity interest in China Oriental Group Company Limited from Smart Triumph Corporation and Ms Chen Ningning for a total consideration of USD 647 million. As a result of the acquisition, ArcelorMittal has become the second largest shareholder of the Company.
China Oriental Group, which is listed on the main board of the stock exchange of Hong Kong, manufactures and sells steel products such as billets, strips, H beams, cold rolled and galvanized strip through its main operating subsidiaries Hebei Jinxi I&S in Hebei and Foshan Jinxi in Guangdong.
For the year ended December 2006, the group sold approximately 3.75 million tonnes of steel products and reported revenues of USD 1.313 billion and EBITDA of USD 225 million. For the January to June 2007 the Company reported revenues of USD 890 million and EBITDA of USD 161 million.
ArcelorMittal release said “The acquisition enables ArcelorMittal to build on its presence in the important and fast growing steel industry in the People’s Republic of China, a country which constitutes a significant part of its corporate strategy.”
Midwest top shareholders reject Murchison offer
It is reported that most of Midwest Corporation Ltd's top 20 shareholders have indicated they will not accept Murchison Metals Ltd's AUD 1 billion plus scrip takeover offer.
As per report, shareholders with a combined interest of 45% of Midwest's shares have confirmed in writing that they believe Murchison's offer materially undervalues Midwest relative to Murchison. These shareholders include Midwest directors Mr Dato David Law, Mr Stephen de Belle and Mr Jesse Taylor.
Midwest said in a statement today that the major shareholders' stance had two immediate implications for any Midwest shareholders considering the offer.
1. In our view, full delivery on synergies will not be achieved unless Murchison acquires 100% control.
2. As Murchison cannot achieve the required 80% acceptances under the current offer, no capital gains tax rollover relief will be available to Midwest shareholders accepting the offer.
The Midwest board continues to urge its shareholders to take no action in relation to the offer. Midwest's board is currently finalizing its review of the offer and its recommendation to shareholders, which will be included in its target's statement to be sent to shareholders in coming weeks. It said "However, shareholders should note that the offer is now open and unconditional which means any acceptance by you is final.”
Both companies are developing iron ore projects in Western Australia's mid west and want new port and rail infrastructure in the region to bring ore to market. Murchinson has argued that synergies would be achieved by combining the two entities rather than continuing to develop adjacent projects and pursuing competing infrastructure proposals. According to recent research by UBS, that between AUD 300 million and AUD 400 million in synergies could be created through a merged company.
US ITC subjects only one Turkish steel mill to AD duty
The Import Administration of the US Department of Commerce said that it would revoke the antidumping duty orders for steel reinforcing bar products produced and exported to the US by Turkish mills Colakoglu and Diler and it imposed zero or de minimus margins on three other producers.
The orders are effective from April 1st 2006 and the agency said it would instruct US Customs and Border Protection to release any cash deposits or bonds collected since the original orders were implemented.
The agency added that said it determined through an administrative review that Colakoglu and Diler did not sell rebar below the normalized value in its home market during the period of review from April 1st 2005 through March 31st 2006. It also found that the two firms did not sell rebar in the US below the domestic price in each of the two previous administrative reviews in which they were involved.
The Import Administration in its filing with the Federal Register said that final dumping margins were issued for four other Turkish producers; three of the four were assessed with zero or de minimus margins. The three firms were Kaptan, Kroman and Habas. Only Ekinciler was assed a dumping margin of 1.66%.
The agency also affirmed its preliminary finding in August 2007 that "there is no evidence that the respondents in these reviews engaged in anti competitive practices in Turkey during the period of review, as alleged by the domestic industry."
The petitioners in the administrative review included US steel producers Gerdau Ameristeel, Commercial Metals Company and Nucor.
Landless activists block CVRD railway
AP reported that landless activists blocked a key iron ore export railway for CVRD on Wednesday. It is the third time in less than a month that activists from the Landless Workers Movement or MST invaded the railway to block CVRD's shipments.
CRVD in a statement said that about 300 MST members some of them armed surrounded two trains near the northern city of Paraupebas and cut brake lines. It said four workers and a train operator were held for about half an hour and then released.
CVRD uses the railway at the Carajas mining complex to transport 250,000 tonnes of iron ore daily from its sprawling Amazon mine to Atlantic ports for shipment overseas.
US PMA concerned over steel imports decline in September
According to Mr William E Gaskin president of Precision Metalforming Association, overall decline in steel imports in September worrisome for US steel consuming industries, increasing concerns that US manufacturers will not be able to obtain adequate supplies of steel products at globally competitive prices.
Mr Gaskin said that “September steel imports, combined with already low inventory levels of flat rolled steel at service centers, which are down by 21% compared to year ago levels, underscores the need for US policymakers to balance the interests of steel producers and steel consumers in trade policy. PMA’s recent Business Conditions Report shows optimism for increased orders and shipments of metal components during the first part of the fourth quarter and again for early 2008. When demand picks up, if imports continue at current low levels, there will be a return to tight market supply conditions with resulting disruptions in steel availability, quality and cost. This is why the recent decision by the International Trade Commission to maintain dumping duties on hot-rolled steel imports from six countries is so frustrating. Continuing to provide unnecessary protection to a healthy steel industry at the expense of steel using companies struggling to compete in the global market does not bode well for the future of manufacturing in this country.”
Mr Gaskin added that “The ITC decision is more evidence that Washington lawmakers must help manufacturers by giving industrial consumers a voice in trade cases through support of the American Manufacturing Competitiveness Act. This legislation will give our members a seat at the table when it comes to trade decisions. Tariffs and duties on imported steel mean less steel for the metalforming industry.”
Total steel imports in 2007 are down by 26% YoY as compared to September 2006 totals and imports of hot rolled steel, despite a small increase in September, are down 49% for the first nine months of 2007 compared to the same time period last year. According to preliminary data issued by the US Department of Commerce, total steel imports fell by 17% in September to 1.99 million tons, down from August’s level of 2.4 million tons. Imports of hot rolled steel increased by 5% in September to 186,791 tons. Cold rolled imports fell in September, down 7% from August 2007 levels to 95,459 metric tons.
The Precision Metalforming Association is the full service trade association representing the USD 91 billion metal forming industry of North America the industry that creates precision metal products using stamping, fabricating and other value added processes. Its nearly 1,200 member companies include metal stampers, hot rolled fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry. Members are located in 30 countries, with the majority found in North America as well as Canada and Mexico.
Iron ore price negotiations - CVRD sees strong demand in 2008
BNamericas reported that Brazilian mining and metals group CVRD is due to increase its iron ore prices next year because of strong demand.
The report quoted Mr Roger Agnelli CEO of CVRD as saying that the trend is price increase, without saying by how much the value will rise in 2008.
He said that "The market is strong and although we have been investing but we are not able to keep up with worldwide demand. There's a lot of speculation. It is a simple matter of demand versus supply.”
CVRD’s first negotiation for the year, carried out directly with a major client, sets the benchmark for the entire industry. Negotiations for 2008 are likely to begin this month.
MEPS forecast World average carbon steel prices
UK based MEPS said that “We maintain our belief that average world flat products prices will rise steadily over the next three months. Continued strengthening of the North American values as inventory building develops should offset any weaknesses in the EU and Asian selling figures.” MEPS added that “Increasing raw material costs are expected to force mills in all regions to push through price advances in the first and second quarters of next year. The Summer of 2008 is, however, forecast to be the peak of the price cycle for all flat products.”
MEPS Said that “During the second half of next year overcapacity in the Chinese market is likely to temper transaction price gains in that area, resulting in a widening of the gap between average Eastern and Western values. This will almost certainly result in exports from China increasing once again. We envisage global competition intensifying in a climate of oversupply leading to a decline in the MEPS World Average flat products price up to the end of the forecast period.”
MEPS added that “A slight reduction in the MEPS World average long products price is expected over the next two months. This is due to seasonally lower demand in Europe and North America canceling out gains in Asia. The residential construction sector in the US continues to weaken which is holding back increases in selling figures from local mills. Scrap values in all regions are unlikely to rise before early 2008. The Asian market should remain strong well into the first quarter of next year.”
MEPS further added that “The first half of 2008 is forecast to be a period of significant gains in transaction figures. The anticipated hike in iron ore costs early next year should lead to a tightening of scrap availability and, as such, higher scrap prices. Rebar and Wire rod values are predicted to register the largest rises as demand from the construction sector in Europe and North America improves. A new high for the MEPS World average long products price is expected in the middle of next year before selling numbers cool over the summer months due to seasonal factors and growing oversupply in the world market.”
Petmin buys 25% of South African Veremo Holding
Petmin Limited announced that definitive agreements have been reached with Framework Investments Limited, a 100% subsidiary of Kermas Limited for the joint acquisition of Veremo Holdings Limited. This announcement follows the cautionary announcement of July 7th 2007. Petmin and the Kermas Group will develop and commission the Veremo project, which is a substantial iron ore deposit on the Eastern Bushveld at Stoffberg in Mpumalanga Province.
In terms of the agreement, the Kermas Group will fund and manage the construction and commissioning of an integrated plant to produce 700 000 tonnes a year of pig iron and titanium bearing slag. The mine will produce in the region of 2 to 2.5 million tonnes of run of mine ore a year. The orebody is estimated to have a life of mine in excess of 50 years. It is anticipated that the Veremo project will start production within four years from April 30th 2008.
For the first three years from this production date, Petmin will receive a warranted cash dividend of ZAR 65,000,000 or 25% of its profit after tax, whichever is the greater. Petmin will finance its ZAR 49 742 887 acquisition of the 25% stake in Veremo through the issuing of 15 073 602 new shares at an average issue price of ZAR 3.30 per share.
Mr Bradley Doig COO of Petmin said that “This transaction represents a further step in the development of Petmin into a multi commodity minerals business with a particular emphasis on industrial minerals, bulk commodities and base metals that are either cash producing and or near cash producing. Petmin is particularly pleased to enter into a partnership with the Kermas Group, a substantial international player with a proven ability to manage large projects. The Kermas Group will be developing an important South African asset with significant guaranteed returns to Petmin.”
Veremo holds the prospecting rights to a substantial polymetallic orebody containing, on average, approximately 60.83% Fe2O3 and 14.39% TiO2 suitable for the production of high quality pig iron.
Pamco shuts ferronickel plant after furnace accident
Platts reported that Japanese ferronickel producer Pacific Metals also known as PAMCO, shut its sole 40,000 tonnes per year Hachinohe plant in Aomori prefecture in northeastern Japan when one its three furnaces blew up late Monday claiming two lives and leaving one person injured.
The incident took place at furnace No 7 around 8:00 PM local time, when it was opened to put in nickel feedstock. Besides Furnace No 7, the No 6 and No 8 furnaces were operating at the time of the incident.
Local police and fire department officials were investigating the cause of the incident. A Pamco spokesman said that the company would also conduct its investigation when authorities allow employees into the premises.
Pamco which exports 60% of its ferronickel output mainly to Taiwan and South Korea and sells 40% to domestic stainless steel makers, had planned to produce 30,000 tonnes in the current fiscal year. Pamco which restarted its furnaces about six weeks ago after an annual turnaround in September, said ferronickel shipments would not be affected immediately as the company had enough stocks for the coming weeks.
Butler Manufacturing buys HCI Steel Building System
It is reported that Butler Manufacturing Co bought HCI Steel Building Systems for an undisclosed amount.
HCI based at Arlington in Washington, designs and manufactures pre engineered steel buildings. The privately owned company generated nearly USD 40 million in sales for the fiscal year that ended in June. It has 131 employees.
Mr Pat Finan President of Butler in a release said that "HCI will complement Butler's current operations in North America by strengthening our footprint in the high growth northwestern US and western Canadian markets. HCI also has established a strong reputation in the heavy industrial and self-storage markets, which will improve our product offering to those markets."
Butler Manufacturing, based in Kansas City and founded in 1901, is a subsidiary of Australian based BlueScope Steel Ltd. It has more than 18,000 employees and 91 manufacturing sites in 17 countries.
German steel industry to grow slowly in 2008
Mr Dieter Amelin president of German Iron and Steel Association said the rise of aw materials and energy prices, the continuous appreciation of the euro and the competitiveness of China's low cost steel, they are all the main reasons for German steel industry developing slowly next year.
Mr Amelin said, in order to compete with the Chinese iron and steel enterprises, the European steel group ThyssenKrupp and the German steel company Salzgitter steel have submitted two lawsuits to the EU through the European Union, they hoped that the EU can set up tariff protection and other measures to restrain China's steel exports to the EU.
Ugitech increases base prices all products by EUR 50 per ton
Ugitech is announcing an increase in its base prices of EUR 50 per tonne, for all products including bars, drawn wires and wire rods in stainless steel for orders booked from January 2008 due to high worldwide demand and the low stock levels.
UGITECH is a subsidiary of the Schmolz + Bickenbach group, a German industrial group specialized in the production, transformation and distribution of special steels. It is specializes in the manufacture of long stainless steels and nickel alloys for the energy, agro food, transport, construction and public works, water treatment, and medical sectors, along with many others.
Xstrata offer of Jubilee gets approval from receives Australian FIRB
Xstrata plc has received advice from Australia’s Federal Treasurer that there are no objections to Xstrata’s proposed acquisition of Jubilee Mines NL in terms of Australia’s foreign investment policy. Xstrata’s offer for Jubilee is now free to proceed with no further regulatory approvals required.
Xstrata announced its all cash offer to acquire all of the issued and outstanding shares of Jubilee by way of a recommended take over bid on October 29th 2007. Xstrata expects to dispatch its Bidder’s Statement to all Jubilee shareholders next week.
Corus Staal orders an X-Melt 330 tonne twin ladle furnace
The ladle furnace and the stirring station will be erected in the existing oxygen steelworks while production is taking place.
The SMS Demag supply scope also includes ancillary equipment such as the dust collecting facility, alloy addition system and cooling water system. The order comprises the supply and installation of the mechanical, X-Pact electrical and automation systems, including the technological process models Level 2.
Rio Tinto announces resignation of Dr Calvert
The boards of directors of Rio Tinto plc and Rio Tinto Limited have announced the resignation of Dr Ashton Calvert AC for reasons of ill health and at his request.
Dr Ashton joined the Boards in 2005 following a long and distinguished career in the Australian foreign service culminating in a period as Secretary of the Department of Foreign Affairs and Trade.
Mr Paul Skinner chairman of Rio Tinto, said "Since joining the Boards Ashton has made a major contribution to the company and has provided valuable insights across a range of major strategic issues, notably in relation to our businesses in Australia and Asia. We are very sorry that his health prevents his continuing membership of the Boards and will greatly miss his wise counsel and advice."
Rautaruukki wins EUR 4.5 million steel frame order in Finland
Rautaruukki has signed an agreement worth approximately EUR 4.5 million to deliver an integrated steel frame and façade system for a production building to be used by Moventas. The 19,000 square meter plant for the manufacture of wind turbine gears will be the biggest investment in the real estate company’s Etelä-Keljo business park located at Jyväskylä in Finland.
Ruukki’s delivery comprises the steel frame, load-bearing roof structures and the façade and partition wall elements, and includes installation. Additionally, the delivery will include the windows in the external walls, glass façades and installation of prefabricated concrete components.
Mr Jouni Metsämäki senior VP Northern and Eastern Europe of Ruukki Construction said “The products will be manufactured at our Ylivieska and Seinäjoki plants starting in January 2008. With our integrated system, the customer will gain definite schedule benefits. We can guarantee smooth phasing of the construction schedule and our part will be completed as early as May 2008.”
Ruukki and Moventas are also long-term partners in structures for wind power plants. Earlier this year, Ruukki signed delivery agreements worth approximately EUR 1 million with Moventas on the steel frame and envelope structures for stages II and III of the company’s Vesanka production building in Jyväskylä.
Peabody Q3 earnings down by 77% YoY
Peabody Energy announced a net income of USD 32.3 million for the July to September quarter 2007 as compared with USD 142.0 million in its July to September quarter 2006. Its EBITDA for the July to September quarter 2007 and January to September period was USD 210.9 million and USD 785.1 million respectively. Year to date pro forma EBITDA from continuing operations increased by 8% YoY.
Peabody during the July to September quarter 2007, made significant progress in reshaping the earnings base by increasing production capacity in Australia, concluding cost and productivity initiatives in the Powder River Basin, expanding global coal trading operations and spinning off Patriot Coal Corporation.
Peabody’s July to September quarter 2007 and year to date revenues grew to USD 1.49 billion and USD 4.18 billion, respectively, on higher volumes in all regions and improved pricing in the United States. It achieved record volumes of 68.5 million tons for the July to September quarter 2007 and 191.9 million tons through nine months, with higher shipments from nearly all US operating regions and a near tripling of Australian volumes. Third quarter revenues per ton grew by 12% in the United States, led by a 29% rise in premium Powder River Basin sales realizations.
EBITDA for July to September quarter 2007 was USD 210.9 million, as improved contributions from US mining operations were offset by approximately USD 95 million in impacts related to: lower realized prices for metallurgical coal settled for the current year; Australian demurrage and coal chain issues and changes in exchange rates. These results compare with EBITDA of USD 270.7 million in the prior year.
Highlights:
1. Quarterly revenues grow 18% to record USD 1.49 billion; year to date revenues rise 7% to USD 4.18 billion
2. Quarterly volume of 68.5 million tons sets new record
3. EBITDA totals USD 210.9 million for the quarter and USD 785.1 million through nine months
4. Pro forma revenues and EBITDA from continuing operations increase 12% and 8%, respectively, through nine months
5. Peabody maintains full year targets excluding Patriot Coal spin off
Mr Gregory H Boyce chairman & CEO of Peabody said that "Peabody has outstanding leverage to rising international markets we have captured higher prices for Powder River Basin and Midwestern coal, expanded global coal trading operations, and stabilized operating costs. The strategies we put in place will create meaningful additional value from our reshaped asset base, leading marketing practices and global expansion."
US Steel names new management for Eastern European operations
United States Steel Corp announced the following management changes at its facilities in central Europe.
1. Mr Richard E Veitch was appointed vice president and general director of US Steel Serbia.
2. Mr Daniel M Killeen was named general manager of finishing at operations in the eastern Serbian town of Smederevo.
3. Mr Matthew B Perkins was named vice president of operations at the Pittsburgh based company's US Steel Kosice subsidiary in Slovakia.
Cleveland Cliffs appoints 2 new VP for North American business
Cleveland Cliffs Inc announced the promotions of Mr Duke Vetor to the position of senior VP North American Coal and Mr David Blake to the position of VP operations North American Iron Ore. The appointments come as part of Cliffs' continuing integration of PinnOak Resources, Inc, which the Company acquired at the end of July. The appointments are effective immediately.
Cleveland Cliffs said that Mr Vetor in his new role responsible for PinnOak's corporate offices at Canonsburg in Panama, the Pinnacle Complex in West Virginia and Oak Grove mine in Alabama. He previously served as Cliffs' vice president, operations North American Iron Ore.
Mr Blake in his new capacity will head Cliffs' operating activities at the Company's six North American Iron Ore mines. He previously served as general manager, Michigan operations and had responsibility for the Empire and Tilden mines, as well as Cliffs' LS&I Railroad.
Mr Joseph A Carrabba chairman, president & CEO of Cleveland Cliffs said that "Duke and David both have the requisite operational expertise and experience implementing business improvement initiatives to serve our North American business well. Each has an established track record of quickly achieving operating goals and I look forward to their continuing contributions."
SouthGobi hopes to ship coal in 2008 from Ovoot Tolgoi
SouthGobi Energy Resources Ltd announced that it hopes to begin shipping coal from its Ovoot Tolgoi Project in Mongolia by the Q3 of 2008.
SouthGobi Energy company officials said that they have purchased a fleet of coal mining equipment for the development of an open pit coal mine at its Ovoot Tolgoi Project in Mongolia. The site had been winterized to allow for work to continue year round. Plans call for an initial start up at Ovoot Tolgoi in January.”
Ovoot Tolgoi is located in southern Mongolia next to the existing Mak Qinhua coal mine approximately 45 kilometers north of the Mongolia and China Border and the Ceke border crossing.
China’s Ceke will be the main distribution center for Ovoot Tolgoi coal and is home to a new automated coal loading terminal and railway infrastructure.
Canadian CEZ cuts zinc production target again
Canadian zinc refinery CEZ announced that it is now expected to produce 264,000 tonnes of metal in 2007. This represents a 1,000 tonnes cut in the target given at the time of the Q2 results and compares with original 2007 guidance of 275,000 tonnes.
CEZ in a statement said that it has suffered from technical problems this year, although owner Noranda Income Trust said that production recovered in the third quarter and work progressed in the quarter to address higher zinc dust consumption within the operation. It said that “Addressing this issue should help the Fund to improve its overall performance.”
CEZ’s Q3 of 2006 metal production bounced back to 69,242 tonnes from 63,247 tonnes in the Q2 of 2006 but cumulative January to September 2006 production of 195,436 tonnes was 1% off the pace of the year earlier period, when production was also down on 2005 levels.
SABIC to increase capacity to 6.5 million tonnes by 2010
Reuters reported that state controlled Saudi Basic Industries Corp plans to raise its steel output by 22.6%to 6.5 million tonnes by 2010 at its subsidiary Hadeed for catering to Saudi Arab’s construction market.
Mr Hisham al-Hmili GM sales and marketing of Hadeed on the sidelines of a steel conference told Reuters "By 2010 we will be done with our last expansion plan, which will add another 1 million tonnes of steel and have capacity of 6.5 million tonnes.”
Mr Hmili added that Sabic currently has 53% share of the domestic market in Saudi Arabia.
DP World plans another USD 500 million investment in India
DP World has announced that it would invest another USD 500 million in the next few years in India, taking its total investments to USD 2 billion in India so far. Mr Jamal Majid bin Thaniah, executive VC of DP World and Group CEO of Port & Free Zone World said that “We are open to any opportunities that may come our way.”
Mr Ganesh Raj MD & senior VP of DP World’s sub continental operations said that DP World is scouting for opportunities in the areas of back up infrastructure for port operations, including providing facilities to connect various special economic zones, dry ports and inland container depots across India to container ports via rail and road.
Currently, DP World operates terminals in India at Mundra in Kutch district, Nhava Sheva International Container Terminal in Maharashtra, Chennai, Kochi and Visakhapatnam. Recently, DP World was locked in a legal battle with the Adanis over the transfer of ownership of the second container terminal at Mundra from P&O Ports to MICT.
Iran keen on investing in mineral projects at Guinea
Mr Ali Akbar Mehrabian caretaker minister of industries & mines of Iran said that it is ready to invest in the Republic of Guinea. He added that "Expanding relations with African countries is one of Iran's strategic policies and President Mr Ahmadinejad is particularly keen on the matter."
Mr Mehrabian said that based on this policy, Iran is ready to make investments in Guinea Conakry's mineral and industrial projects. He added that "Iran can import bauxite from Guinea or help in setting up aluminum production industries in the country."
He said that at the moment, an Iranian industrial team is working in Guinea on a bauxite mine that will soon be ready for exploitation. Iranian investors are also interested in investing in the country's other mining projects involving raw materials such as iron, gold and uranium.
Investments in petrochemical sector in Gulf region to rise
A study prepared by Gulf Organization for Industrial Consultancy predicts that Gulf investments in the petrochemical industries will increase to USD 120 billion in next 5 years time from USD 70 billion by the end of 2006.
The study indicated that 63 % of the investments are in Saudi Arabia, followed by Qatar with 14 % share. It revealed that 1,969 companies are operating in that sector & employing 155,000 personnel.
The study has further predicted that share of the Middle East countries in the world production basic petrochemicals & polymers including ethylene & polyethylene would increase by more than 20% to 2010.
Solios to build gas treatment centers for Qatalum
It is reported that France’s Solios Environnement has been awarded the engineering, procurement and construction contract for gas treatment centers for USD 4.8 billion Qatalum aluminum smelter at the Mesaieed industrial area in Qatar.
The contract covers the supply of gas treatment centers on a turnkey basis, including engineering design, civil works, construction and commissioning.
This is the second contract that the Solios Group has won. Earlier this year, Solios Carbone was awarded the contract to build a green anode plant for this project.
The aluminum smelter is the largest primary aluminum plant ever to be built in a single phase. Financing for the plant was agreed in August 2007.
Chinese coke export prices driving global levels upwards
It is reported that the global coke price has advanced substantially fueled by increasing demand across the world, China's reduced export quota, the ocean freight rate hikes and swelling coking coal cost.
As a major coke exporter, China covered a half of world trade volume last year.
Chinese government, d to curb resource intensive products export, raised export duty to 15% from June 2007 and reduced the yearly export quota to 13.292 million tonnes. Chinese coke enterprises have already shipped 11.73 million tonnes till September 2007 nearly depleting the whole year's export quota.
On the contrary, the world demand rose and drove up China's export price accordingly. In October 12.5% ash content coke exceeded USD 300 per tonnes and the highest quotations have reached USD 350 per tonnes now compared with USD 280 per tonnes a month before.
Aside from China, the coke price also moved up in other countries, Poland's price for 10.5% ash content coke is reported at USD 200 per tonnes, Russian and Ukrainian between USD 320 per tonnes to USD 330 per tonnes and Egyptian and Turkish between USD 310 per tonnes to USD 325 per tonnes.
China is rumored to raise coke export duty again in short term, likely pushing up export price and global price further.
(Sourced from MySteel.net)
Baoshan and Taigang may introduce surcharge mechanism for SS
Bloomberg reported that Baoshan Iron & Steel Co and Shanxi Taigang Stainless Steel Co China's two largest producers of stainless steel may pass on raw materials costs to customers by introducing a surcharge on products from January.
Mr Wang Chengxue assistant to the GM of Baoshan's stainless steel unit said in Taiyuan said that the surcharge will be pegged to the cost of nickel. Mr Wang said that “We want the customers to share the risks of volatile nickel prices. The market is unpredictable.''
Nickel for three month delivery on the London Metals Exchange surged to a closing record of USD 51,600 a metric tonnes on May 4th 2007. It has averaged 73% higher this YTD than the prior period. The May record price deterred steel producers from further purchases, leading to a 39% decline in price since and eroding the value of stockpiles bought earlier.
Chinese wire rod prices remain firm
It is reported that Chinese wire rod prices continue to strong. In Shanghai, 6.5mm wire rod price is CNY 4,040 per tonnes to CNY 4,060 per tonnes, 6.5mm for end user price is CNY 4,090 per tonnes to CNY 4,100 per tonnes, and all prices include 17% VAT.
Some traders halted sales wire rod from Nov.6, because of they are expecting better prices in future. The wire rod export prices are strong as well, about USD 580 per tonnes FOB, mainly for Vietnam and Taiwan.
China reports major decline in coalmine accidents
AP reported that a five year campaign to improve China's notoriously deadly industrial safety record is seeing results, with accidental deaths falling by 13.9% in the first ten months of this year. Deaths in China's coal mines fell from 4.94 per million tonnes of coal mined in 2002, before the safety law was adopted to 2.04 per million tonnes of coal last year.
Mr Li Yizhong head of the State Administration of Work Safety said since the institution of the Safety Production Law in 2003, the number of accidental deaths has fallen by a growing rate each year from 1.7% the first year to 11.2% in 2006.
Mr Li wrote in an essay posted on the administrations Web site said that production safety around the country is stable overall and the development trend is a change for the better. His paper gave no exact figures for numbers of deaths, but the official Xinhua News Agency said the death toll since January was 79,000.”
Despite the success, Mr Li warned against complacency, saying the safety situation remained grave. He said a lot of deep rooted, historical factors affecting safety have yet to be thoroughly fixed.
PetroChina is world's largest listed company
It is reported that PetroChina, China's largest oil and gas producer, has replaced Exxon Mobil as the world's largest listed company by market value recently.
PetroChina share price surged by 163% to close at CNY 43.96 on its first day of trading on the Shanghai Stock Exchange. Its share price opened at CNY 48.6 recently almost tripling its initial public offering price of CNY 16.7 and ended the morning session at CNY 43.65.
PetroChina market value on the Shanghai bourse swelled to above the one trillion Dollar mark, surging past Exxon Mobil which is valued at USD 487.7 billion. It is the first time a company has been valued at one trillion Dollars.
Mr Jiang Jiemin president of PetroChina's parent company China National Petroleum Corporation said "Returning to the mainland's capital market has been our long cherished wish. The mainland offering will give domestic investors opportunities to share the outcome of PetroChina's fast growth and help expand the company's business in the mainland."
PetroChina raised CNY 66.8 billion in Shanghai by selling 4 billion shares, or 2.18% of its expanded share capital, in the world's biggest initial public offering so far this year.
Chongqing to demolish 2.3 million tonnes of obsolete capacity by 2010
According to Environment Protection Office of Chongqing City, Chongqing plans to demolish 20 tonnes and below electric furnaces and 300 cube meters and below blast furnaces, which have a capacity totaled 2.30 million tons per year during f2007 to 2010 for improving the industry structure and energy consumption.
According to the documents by National Reform and Development Commission, Chongqing has speeded up the demolishment of outdated iron and steel capacity in recent years through merge, reforming and technology improving.
It has washed out an iron and steel capacity totaled 1.2 million tonnes, including two 100 cube meters blast furnaces, two 620 cube meters blast furnaces, two 40 tonnes, two 50 tonnes and 70 tonnes open hearth furnaces, 2×15 tons open hearth furnaces, two 18 cube meters and two 27 cube meters sintering machines, and several ranked small section steel rolling machines. It also strengthened on the control of these small producers of construction steel and forced 25 steel manufacturers to stop, demolished 17 production lines and 14.5 units of dies, closed 76 medium frequency faradic furnaces with a capacity 1.20 million tonnes in total.
By the end of this year, Shandong Province will eliminate pig iron capacity of 2.48 million tons, steel capacity of 3.71 million tonnes, coking chambers with height below 4.3 meters. In 2006, the province produced 43.28 million tons of pig iron, 37.14 million tonnes of steel and 40.88 million tonnes of finished steel. However, two thirds of the above figures cannot meet the national industry policies with 15% of pig iron capacity and 6% steel capacity even in the scope of outdated capacity to be eliminated within a limit period.
China’s zinc production bounces back in September
According to official figures released by the National Bureau of Statistics that China’s production of refined zinc was 324,800 tonnes in September 2007.
That marked a sharp recovery from lower output over the summer months, bearing out the consensus thinking that output over the July to August period was depressed by scheduled maintenance outages at several big producers. Indeed, expressed in annualized terms September’s 3,952,000 tonnes production rate was a new all-time high
Baotou steel targets 100,000 tons rail export in 2007
It is reported that Baotou steel received rail export orders total about 73,000 tonnes, those help Baotou steel to reach its target 100,000 tonnes in 2007.
Baotou steel expands the international market share in 2007, including Brazil, Vietnam and Iran.
Baosteel stainless plans to build CRC mill in 2009
It is reported that Baosteel stainless plans to build a capacity 660,000 tonnes per year CRC mill by the end of 2009. Baosteel stainless has 1.28 million tonnes per year HRC capacity both 300 and 400 series.
Caparo aims at Chinese auto sector
China Knowledge reported that UK based Caparo Group, a global group specializing in manufacturing of steel, automotive and diversified engineering products is now aiming at China, especially the local automobile sector.
Lord S Paul chairman of Caparo in a recent interview said that the firm would like to invest in the automobile component sector if an opportunity came up in China which was very much on their agenda. The company sees a great potential market in the country, following a tremendous growth of its Indian operations.
According to China Automobile Industry Association China, a rapidly growing consumer market in the world is now grappling with a massively huge demand for vehicles. The production volume of automobiles in 2007 is expected to reach 8.5 million.
Caparo, together with its joint venture in China, is now buying and selling industrial products in the country. The group’s business activities also include materials testing services, hotels, film distribution and private equity investment.
Shandong halts approval of coal based projects
Interfax China cited an official of Shandong province's economic and trade commission as saying that Shandong's provincial government will not approve any new projects for development that would consume 2,000 tonnes or more of coal equivalent annually.
He said that Shandong must strictly control high energy consuming and pollution emitting industries by rejecting all projects that exceed the new coal equivalent consumption mark as well as all projects that fail to meet energy efficiency standards.
Shandong Province is consistently the country's top coal consumer due to its large industrial sector. The province consumed 210 million tonnes of coal last year accounting for 8.9% of national consumption during the period. An official from Shandong's environmental protection bureau said in the report that the province is the country's top sulfur dioxide emitter and that it has the sixth highest chemical oxygen demand out of all other provinces.
According to the report, Shandong's municipal government has already put CNY 2.23 billion towards energy conservation and emission reduction projects this year.
Guangdong utilities ink major coal import deal with PT Berau
Interfax China citing an official with Guangdong's Economic and Trade Commission as saying that the three largest electric power enterprises in southern China's Guangdong Province will import 32.5 million tonnes of coal from Indonesia between 2008 and 2012.
According to Mr Li Jingsi an official with the commission's coal trade and distribution department the three enterprises, Guangdong Yuedian Group Co Ltd, Shenzhen Energy Co Ltd and Huaneng Power International Inc signed a framework agreement to import the coal over a five year period from Indonesia's PT Berau Coal on November 1st 2007.
Mr Li said that the contract is the largest coal import contract between Guangdong and Indonesia. He said "Guangdong ran out of coal in 2005, so since then, we have relied on other provinces and on imports for our coal supplies. We import most of our coal from Vietnam and Indonesia, though we also get some from Australia and the Philippines."
Mr Li said that Guangdong has also signed coal supply framework contracts with domestic coal producers including Shenhua Group and China National Coal Group Corp. He said "By 2010, our domestic purchase will reach 80 million tons, which can satisfy 50% of the whole province's coal consumption."
Mr Li Xiangming vice director of the province's Economic and Trade Commission at the signing ceremony for the contract said that “By the end of 2007, Guangdong will have an annual coal consumption of 125 million tonnes. With such great demand, the new contract is expected to go some way towards relieve coal supply pressures in the province.”
PT Berau Coal, one of the largest thermal coal producers in Indonesia, currently has an estimated yearly coal production capacity of approximately 38 million tonnes. The company is located in the district of Berau in East Kalimantan, where coal reserves are believed to be around 2 billion tonnes.
Shuigang to add new BF by 2009
It is reported that Shuigang plans to add a new 2,200 cubic meter blast furnace, two sinter furnaces and a 1.2 million tonnes per year pellet plant, the project to complete by the end of 2009.
CXVT invests CNY 1 million in oxidized pellet project
It is reported that Chengde Xinxin Vanadium and Titanium Company Limited will set up an oxidized pellet project jointly with Chengde Tianfu Mining Co Ltd.
The project, designed with annual capacity of 1 million tonnes will be financed with total investment of CNY 1.05 million.
(Sourced from MySteel.net)
China Precision Steel closes USD 47.9 million financing
China Precision Steel a niche precision steel processing company principally engaged in producing and selling high precision cold-rolled steel products announced that it has successfully completed the sale to certain institutional investors of an aggregate of 7,100,000 shares of its common stock at a purchase price of USD 6.75 per share and an aggregate of 1,420,000 warrants to purchase its common stock, for gross proceeds of USD 47,925,000. Roth Capital Partners, LLC acted as the placement agent for this registered direct transaction.
Dr Wo Hing Li commented that "The market opportunity for high value ultra-thin precision steel remains strong. With this additional capital, we plan to expand our production capacity of high carbon and specialty precision steel as we build our dominant position in China and expand into international markets."
China Precision Steel is a niche precision steel processing company principally engaged in the production and sale of high precision cold rolled steel products and provides value added services such as heat treatment and cutting medium and high carbon hot rolled steel strips. China Precision Steel produces high precision ultra thin and high strength cold rolled steel products primarily for automotive components, food packaging materials, saw blades and textile needle manufacturing companies in the People's Republic of China. The Company's operations are primarily located in China, with sales to Southeast Asia and Africa.
Severnaya coke washery commissioned in October
It is reported that the Severnaya beneficiation plant at the Severstal Resurs Berezovsky Branch in Kemerovo Region was commissioned in October 2007 and is now running at full capacity.
Over the past month, the mill processed the greatest quantity of raw coal since being commissioned in September 2006 and it has now reached its designed capacity of 3 million tons of coal per year.
The Severnaya beneficiation plant washes hard cooking coal, grades K and KO, taken at the Berezovskaya, Pervomaiskaya and Anzherskoye. The plant is furnished with cutting edge equipment. In particular, columns of floatation CoalPro that enable processing coal fractions from 0 to 0.3 mm have been employed in Russia for the first time ever.
The primary consumers of high quality coal concentrate are Severstal's Cherepovets steel Mill, as well as the Altaikoks and Novolipetsk Plants.
TMK’s Volzhsky plant bags "The National Environmental Award" -2007
TMK’s Volzhsky Pipe Plant has become the winner of the competition "The National Environmental Award -2007” in the category "Environmental management".
As per report, “The introduction and operation of the environmental management systems at VTZ" was awarded for his contribution to strengthening the ecological security and sustainable development of Russia.”
The National Environmental Prize was established in 2003 and non governmental environmental organization is funding these awards. The main criteria for selection include economic efficiency, social significance, economic feasibility and compliance with international standards and agreements.
Volzhsky Pipe Plant has a certificate of environmental management systems requirements of the international standard ISO 14001:2004 received in 2006 year. The certification audit was conducted by experts of international certification authority TUV CERT.
Ukrainians readying to pay world price for natural gas
Ukrainian Journal reported that Mr Viktor Yanukovych president of Ukraine has called for preparedness for the paying global levels of price for gas.
Mr Yushchenko said "Reality is that the gas price for Ukraine will approach world prices. We should take all necessary measures to facilitate the adapting of our economy, budget and households to such new prices.”
Velund SS pipe plant assembly started
It is reported that assembling of equipment for the new electric welded stainless thin wall pipes plant of Velund Industrial at Podolsk has been started. The plant is to be put into operation in March 2008.
Velund Industrial is engaged in pipe cutting, welding and finishing activities.
Antolin to set up unit in Leningrad region
FIS reported that Antolin has announced its plans to develop own auto related production in the Vsevolzhsk district in Leningrad Region by investing EURO 40 million without disclosing production volumes.
Antolin intends to build up a detached plant in one of the districts located near the city and is yet to finalize the exact site.
