Mr Morales signs JSPL‘s El Mutún contract into law

Bolivian state news agency ABI reported that Bolivia's President Mr Evo Morales has signed the law that will allow the El Mutún iron ore deposit to be mined and industrialized. The report said that the president signed the law during a ceremony in Puerto Suárez where the deposit is located.

The new law authorizes the contract between India's Jindal Steel and Power Limited and Bolivia state steel company Esem to mine 50% of the deposit.

The project requires a USD 2.1 billion investment over eight years to develop the deposit and build a steel plant to produce 1.7 million tonnes per year of sponge iron and 1.4 million tonnes per year of rolled steel.

Bolivia is set to receive profits of USD 200 million per year from the development as of 2012 when steel operations begin.

Coal Ventures International formed

It is reported that public sector companies including Steel Authority of India Limited, National Thermal Power Corporation, Rashtriya Ispat Nigam Limited, National Mineral Development Corporation and Coal Indian Limited have finalized operational details of the new special purpose vehicle called Coal Ventures International, which would scout for coal deals globally by pursuing an aggressive merger & acquisition strategy.

Mr PK Bishnoi CMD of RINL said that “Senior officials of the entire 5 promoter PSUs of the coal SPV met and approved the name and organization structure of the new entity. It has been decided that Coal Ventures International would function as an investment company under its unincorporated private limited company status initially.”

The new company will have a 3 tier organizational structure. The main board of the company would have 5 directors from each of the 5 companies. Mr SK Roongta chairman of SAIL would be the first chairman of the new entity, while Mr Bishnoi would be executive president. A CEO from SAIL would look after day to day functioning of the new company. It would have more powers than a Navaratna company as it has been mandated to clear investment proposals of up to INR 1,500 crore at the board level itself.

Mr Bishnoi said that the SPV would be looking at two routes for acquiring the stake in coal blocks. He said “The first option will be to go through the prospecting route and the second would to buy equity or by negotiated settlements. We are also looking for a good investment banker and an expression of interest will be issued shortly. The investment banker will help in scouting for the proposed acquisitions.”

The new entity would also invite participation from venture capitalists, private equity firms and other private sector coal consuming companies in India and abroad as equity partners in the SPV at a later stage. It has been suggested that the company would acquire a minimum of 11% equity in a coal project so that it secures coal produced by the overseas company. An expression of interest would soon be invited for appointment of merchant banker to guide CVI in its acquisition strategy. The prospecting route will be taken for acquiring coal fields in Zimbabwe, Russia, Indonesia and Mozambique. The equity route will be used for picking up stake in Australian, Canadian and Brazilian companies.

Union cabinet has already cleared the proposal for setting up the new entity that would function on the lines of a mega PSU with a war chest of over INR 10,000 crore. As per the cabinet approval earlier, SAIL and CIL would contribute INR 1,000 crore each equity for the new entity while RINL, NMDC and NTPC would put in INR 500 crore each. Based on this equity of INR 3,500 crore, the new company would leverage debt of about INR 6,500 crore taking the size of war chest to INR 10,000 crore. This is expected to be increased further to INR 25,000 crore as Coal Ventures International would aim to have 500 million tonnes of metallurgical coal under its belt over next few years.

TATA Steel inks JV with Riversdale for Mozambique coal project

TATA Steel Limited announced that it has signed an agreement with Australian Riversdale Mining Limited to establish a special purpose joint venture vehicle to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique.

Under the terms of the agreement, TATA Steel will pay AUD 100 million to acquire a 35% Project Interest. For this consideration, TATA Steel secures a key position in the JV formed to develop the Mozambique Coal Project, as well as a 40% share of the off take for coking coal. TATA Steel will also have the option to participate above this level of tonnage and may participate with Riversdale in future opportunities on Riversdale's surrounding tenements.

The JV comprises of two licenses the Benga and Tete and covers an area of 24,960 hectares. Riversdale Mining holds a total acreage of over 290,000 hectares in Mozambique.

Riversdale Mining had recently announced a major coal resource in the Benga License. Based on the drilling results undertaken by Riversdale, the total Resource is estimated at 1.225 billion tonnes categorized as Inferred Resources and is in accordance with the JORC Code 2004. Of this, a total of 720 million tonnes is considered to have the potential to be extracted by open cut methods. The coking coal derived from this project will be supplied to the TATA Steel Group's facilities in Europe, Asia and elsewhere.

Mr B Muthuraman MD of TATA Steel said "TATA Steel is very pleased to have signed this agreement. TATA Steel has vast experience of coal mining spanning over several decades and will be contributing technical expertise to the Joint Venture".

Mr Muthuraman further stated that “This investment is a significant step in TATA Steel's initiatives for raw material security. It gives TATA Steel an opportunity to participate in the development of the region as a coal resource for its global operations. This will enhance TATA Steel's long term competitiveness.”

Mozambique is fast-becoming a region of global significance for the coal sector. In addition to Riversdale and TATA Steel's involvement, one of the world's largest mining groups, Vale has also invested significantly in plans to advance a massive coal project next to Riversdale's tenements in Moatize.

SAIL orders for 2 billet and bloom casters for ISP

Siemens Metals Technologies announced that said it has received a EUR 80 million order from Steel Authority of India Limited to supply caster's for the modernization work at its IISCO steel plant at Burnpur in West Bengal. Project to be completed in the third quarter of 2010

The order is for the supply of two new 6 strand billet casters and one new 4 strand bloom beam blank combination caster.

In addition to engineering, supply of equipment and installation of electrics, Siemens Metals Technologies will also provide advisory services for erection, commissioning and training for all three casters, the release said.

The billet casters are designed for open and submerged casting which will be respectively applied for the production of rebars and high quality steels comprising forging quality, high carbon, cold heading, spring steel, electrode quality and alloyed construction steel grades.

The casters will include advanced design features such as ladle support by means of butterfly ladle turrets, cantilever-type tundish cars, nozzle changing devices for open stream casting and stopper rods for submerged casting, maintenance free Dynaflex hydraulic oscillators, diamold high speed tube molds, advanced electromagnetic mold-stirring systems and Level 1 and Level 2 automation systems.

The casters’ installations are part of a modernization and steel capacity expansion project of SAIL underway at the Burnpur plant.

RINL eying Bird Group acquisition for iron ore needs

PTI reported that Rashtriya Ispat Nigam Limited has proposed to acquire the entire Bird Group of Companies, including Orissa Mining Development Corp, to secure iron ore supplies for meeting its long term needs.

Mr PK Bishnoi CMD of RINL said "We have proposed to take over the entire BCG, including the OMDC, which has iron ore reserves of 110 million tonnes to meet our growing production needs.”

He said the RINL's bottom line is taking a serious hit as it is forced to procure ore from the market at sky high prices. He said that "You will be surprised that RINL's profits could have been higher by INR 1,000 crore if we had captive mines. SAIL and TATA Steel are comfortable in this connection.”

He informed that "At one point of time we were even mulling to import a shipload of iron ore from Brazil on an experimental basis, but it somehow did not work out.”

Reliance Power receives LoI for Krishnapatnam UMPP

It is reported that Mr Anil Ambani led Reliance Power Limited has received the letter of intent for setting up the 4,000 MW Krishnapatnam ultra mega power project in Andhra Pradesh. Coastal Andhra Power, the special purpose vehicle formed by Power Finance Corp, awarded the LoI to Reliance Power. It is likely Coastal Andhra Power Limited will be transferred within a period of 60 days by January 30th 2008.

REL placed a winning bid of INR 2.33 per unit more that Larsen & Toubro and Sterlite Industries, which quoted INR 2.68 and INR 4.81 a kWh tariff respectively.

Mr Anil Ambani chairman of RPL said “This win will rank Reliance Power as the largest private sector power generator in the country. We look forward to building this nationally important power project.”

The Krishnapatnam project is to be operated on imported coal and would require an investment of more than INR 16,000 crore. Andhra Pradesh will receive 1,600 MW, while the stakes of Maharashtra, Tamil Nadu and Karnataka will off take 800 MW each from the project.

REL has already secured the Sasan ultra mega power plant in Madhya Pradesh, which would be run on domestic coal.

SAIL progressing in of takeover of Steel Complex Limited in Kerala

IANS reported that Steel Authority of India Limited has initiated steps to takeover the ailing Steel Complex Limited owned by Kerala government for INR 3.5 billion.

SAIL had already conducted 2 rounds of discussions with Steel Complex Limited authorities and the state government in this regard. A delegation from SAIL had visited Steel Complex Limited in the first week of November 2007 and assessed the facilities at the unit.

Mr K Sasikumar MD of Steel Complex Limited said that "After the takeover, SAIL is expected to invest in Steel Complex Limited and ancillary units. It has plans to start small units that will help it meet demands from the Kerala market. From June 2007, SAIL has been engaged in participation management with us. SAIL engineers are working here and helping us in increasing the quality of products, in marketing and in the supply of raw materials. SAIL has already drawn up plans to set up a rolling mill at Steel Complex Limited and is working on the project report."

He added that the rolling mill will help the unit derive more value for its products. Mr Sasikumar further added that "By having a production unit here, SAIL can effectively compete in the Kerala market. At present they are bringing products from their plants in Bhilai and Durgapur. Due to transport cost, their products are less competitive in Kerala compared with local producers."

Steel Complex Limited is currently producing steel billets, which are used by rolling mills to make iron bars used in construction.

Essar Constructions to take up large projects

It is reported that Essar Constructions India Limited is planning to embark on large scale infrastructure projects globally and further expand its reach in the Middle East and neighboring countries. In 2006-07, Essar Construction achieved a turnover of INR 1,735 crore and targets to achieve INR 3,000 crore in 2007-08.

ECIL's main focus area is engineering, procurement and construction of industrial projects. In the infrastructure sector, it plans to come up with an SEZ project and at the same time, it also plans to come up with a 2.5 million tonnes per annum integrated steel plant at Trinidad, a 2 million tonnes per annum hot strip mill plant at Vietnam, a 1 million tonnes per annum rebar mill in Sharjah and expansion of cold rolling mill plant in Indonesia.

Essar Construction’s various ongoing projects are:

Pipeline sector
24 inch diameter, 300 kilometer long Joda Paradeep iron slurry
48 inch diameter, 17 kilometer long Vadinar water pipeline
59 inch diameter, 18 kilometer long Hazira water pipeline
30 inch diameter, 190 kilometer long Bharuch Jamnagar pipeline
24 inch diameter, 504 kilometer long Bharat Oman Refinery Limited

Marine & offshore sector
Deep Berth Jetty at Hazira

Refinery sector:
10.5 to 16 million tonnes per annum in phase I
16 to 32 million tonnes per annum in phase II

Power sector
2x600 MW expansion at Vadinar
2x600 MW imported coal based Salaya power project
2x600 MW coal based Mahan project
2x30 MW hydel power plant at Palliwasal

Iron & steel sector
3.9 million tonnes per annum steel expansion at Hazira
1.5 million tonnes per annum Hazira plate mill
8 million tonnes per annum beneficiation plant at Orissa
6 million tonnes per annum pellet plant at Bahadurgarh
6 million tonnes per annum steel plant at Sriperumbudur
Establishment of service centre in Chennai
Pipe mill and cold rolling mill expansion

Besides, Essar has also done EPC for Madurai water supply project for Tamilnadu Water Supply & Drainage Board and EPC for 632 kilometer long product pipeline for Indian Oil Corporation Limited. It is also carried out state of the art Essar Engineering Centres at Hazira, Mumbai, Chennai and Kolkata which are equipped with the latest design and engineering tools, capable of carrying out detailed engineering in hydrocarbon, metals and power sectors respectively.

It is reported to be bidding for projects in areas of mass transport systems, infrastructure projects like ports and airports, overseas steel, power and pipeline projects.

IFC to fund TATA Power's Mundra UMPP - Report

International Finance Corporation has announced that it will consider a loan of up to USD 450 million and an equity investment of up to USD 50 million for TATA Power's ultra mega power project at Mundra in Gujarat.

Additionally, IFC and Coastal Gujarat Power Limited are exploring the possibility of syndicating up to USD 300 million in loans. IFC will consider these proposed investments at its board meeting, tentatively scheduled for March 27th 2008.

TATA Power has earlier mentioned IFC among the several multilateral institutions from which it is seeking loans for the project.

Goldman Sachs picks up 4% stake in Man Industries

It is reported that US based investment banking and securities firm Goldman Sachs has picked up a 4% stake in pipe manufacturer Man Industries for INR 15 crore.

Mr KG Mantri senior VP of Man Industries said that “We have been receiving enquiries from PE funds, but the promoters do not have any plans for dilution of their stake as their holding is so low at 41%, which will further fall to 32% after FCCB conversion. Even among retail investors about 7% are still to demit their shares. We are getting enquiries daily.” He added that foreign and domestic financial institutions own around 48%.

Mr Mantri informed that “We are expecting big orders from GAIL and Reliance in the near future to lay 20,000 kilometer pipelines.” Man Industries recently received USD 225 million order to supply helically submerged arc welded pipes from US based Mid Continental LLC. On the domestic front, Man Industries is ramping up its capacity and plans to have a longitudinally submerged arc welded and helically submerged arc welded pipes capacity of 1 million tonnes in 2 months to 3 months.

Maharashtra awards Mega Project status to Jindal SAW Nashik plant

It is reported that Maharashtra government has accorded Mega Project status to the expansion project of Jindal SAW Nashik unit.

With the approval as Mega Project, the Nashik unit will be eligible for industrial promotion subsidy under the package scheme of incentives 2007. This will help the unit to be more competitive in the market since major portion of the investment gets covered with the subsidy.

The Nashik unit, at the Sinnar Malegaon MIDC, is engaged in the manufacturing of seamless tubes for application in petroleum, automotive sectors and numerous other segments such as boilers and hydraulic cylinders.

Under the expansion program, the present annual capacity of the Nashik unit is being augmented from 75,000 tonnes of finished tubes to 220,000 tonnes. A precision quality finishing mill is to be imported. A cold mill is under commissioning and the total expansion is to be completed by August 2008.

GSI scientists find uranium deposits in Ladakh

Mr Prithviraj Chavan minister of state in the Prime Minister’s Office said that the scientists of the Atomic Minerals Directorate for Exploration & Research, while participating in Puga Chumathang multi purpose multi disciplinary project of the Geological Survey of India in Ladakh, have found low grade uranium mineralization in association with fluorite mineralization in a shear zone from Chumathang area in Ladakh. Grab samples have been analyzed and found to contain up to 0.021% U3O8.

TATA Steel to employ youths from Gopalpur in other units

It is reported that TATA Steel, in a high level meeting between its officials and the affected youths, has agreed to provide employment to youths from the displaced and affected families of its shelved Gopalpur steel project in its other facilities in a phased manner.

About 250 youths had received training in Berhampur and Jamshedpur and TATA Steel had promised to rehabilitate them in the steel project. With TATA Steel shelving the project, it has absorbed 100 of them in different TATA group projects, while 150 trained youths are yet to be rehabilitated.

Mr Sanjay Patnaik chief resident executive of TATA Steel said that “We have decided to prepare a panel list of the unemployed youths and will try to rehabilitate them in different projects of the TATA group companies.” He added that the list will be completed by December 2007 and 50 of these youths could be absorbed in January 2008.

It is noted that TATA Steel had acquired about 3,700 acres for setting up a shore based mega steel plant at Gopalpur in 1996. But due to the lack of core facilities and other reasons, it had shelved the project and announced the setting up of a multi purpose special economic zone on the same land.

The Action Committee of TATA Trainers, a panel formed by the unemployed youths, however, said that only 30 to 35 trained youths have been rehabilitated by TATA Steel so far. An unemployed youth said that “With the hope of getting a job in TATA Steel, we had voluntarily vacated our land. But our hopes are dashed after a decade of being displaced.”

Jharkhand seeks real picture of SAIL's iron ore requirement

Ranchi Express reported that Jharkhand Government has sought a realistic assessment of Steel Authority of India Limited's present and future requirement of iron ore. This comes in wake of central government’s suggestion to Jharkhand to allocate the entire iron ore reserves of Chiria Mines to SAIL.

It is noted that union steel ministry had recently written to Prime Minister's Office that SAIL could not part away with a slice of the Chiria given its expansion plans.

However, Mr PP Sharma chief secretary of Orissa, in a recent letter to union mines ministry, stated that SAIL should retain the required quantity of iron ore from Chiria mines to meet its present and future expansions, but hand over the rest to the state for allocation to other prospective investors in the interest of the country.

Government claims that no hazardous waste allowed entry

Mr Thiru TR Baalu union minister of shipping, road transport & highways said that there has been no instance of any ship from developed countries unloading hazardous waste products, including medical, municipal, surgical, bio medical and e wastes, in any of the major ports of India.

Mr Baalu added that a high powered committee on management of hazardous wastes was constituted on December 17th 1997 in accordance with the Supreme Court order dated October 13th 1997 to report the quantum and nature of hazardous waste lying at the docks, ports inland container depot and recommend a mechanism for its safe disposal or re export to the original exporter. Its report submitted inter alia contained the following recommendations.

On the basis of the reports of the analysis, zinc ash, waste oil and batteries held by the ports, customs and inland container depot are recommended for sale to actual users who fulfill the following conditions

a) Valid authorization from the state pollution control boards for handling of hazardous wastes under the hazardous wastes management & handling rules 1989

b) Valid consent letters from the state pollution control boards under Air & Water Act

c) Environmentally accepted technology for recycling with proof of the existence or operation of proper wastes disposal facilities

d) Central Pollution Control Board will oversee and report on compliance of the conditions prescribed

Update on MAMC

Mr Sontosh Mohan Dev union minister of heavy industries & public enterprises said that Durgapur based Mining & Allied Machinery Corporation is under liquidation since May 26th 2003 as per the order of Kolkata High Court and all the assets of the MAMC are under the custody of official liquidator.

Coal India Limited and Damodar Valley Corporation made an application before the Kolkata High Court for taking over the company in liquidation as a going concern.

Meanwhile, Kolkata High Court has vided order dated October 5th 2007 stayed the sale of the assets of MAMC for a period of 14 weeks to enable CIL and DVC to assess the financial position of the company in liquidation.

ONGC discovered more gas deposits in Rajasthan

BS reported that Oil & Natural Gas Corporation has discovered more gas in a basin near Jodhpur in Rajasthan. In 2006-07, GAIL discovered both oil and gas in the area called Chinnawala Tibba. The incremental gas discovery has been made in three zones, zone 2, 3 and 4 in a new well being drilled in the block.

Mr DK Pandey exploration director of ONGC said “We are still testing the 5th zone. We will know the potential of the reserves in the block in 2 to 3 weeks.” He added that the block was awarded to ONGC before India started auctioning exploration blocks under the New Exploration & Licensing Policy in 1999. Since the block is a pre NELP one, GAIL does not need to notify the DG of hydrocarbons, the upstream regulator.

Mr Pandey said that the rate of gas flowing from the discovery is encouraging. He added that although the flow rate was not very large, it is not bad. GAIL will now undertake various tests to determine the reserves, besides studying the quality of the gas.

ONGC, which also owns a 30% stake in the Barmer field, has often been pulled up for not making any significant oil and gas discoveries after the giant Bombay High discovery in the western offshore in 1973. With production from its existing fields reaching a plateau, GAIL is pumping in increased capital in exploration both in India and overseas.

Indian Railways revenue earning up by 14.74% YoY in 10 days

Indian Railways has posted total approximate earnings of INR 1990.29 crore during November 11th to 20th 2007 period up by 14.74% YoY as against INR 1734.63 crore during November 11th to 20th 2006 period.

INR in crore

The total number of passengers booked during November 11th to November 20th 2007 was 198.83 million up by 9.86% YoY as compared to 180.98 million during November 11th to November 20th 2006. In the suburban and non suburban sectors, the number of passengers booked was 111.60 million and 87.23 million compared to 103.87 million and 77.11 million, registering an increase of 7.44% YoY and 13.12% YoY respectively.

ONGC invested USD 930 million to upgrade its facilities in Assam

Mr Murli Deora union petroleum minister said that Oil & Natural Gas Corporation is investing USD 930 million to upgrade its facilities, including improved oil recovery in its Assam oilfields.

Mr Deora said that ONGC is implementing the modernization program under its Assam renewal project with an investment of INR 22.3 billion. He added that it is also implementing an improved oil recovery scheme in the Rudrasagar, Geleky and Lakwa oilfields in Assam at an investment of INR 14.8 billion to improve production.

ArcelorMittal to double capacity of its Brazilian Monlevade Plant

ArcelorMittal has announced that it has decided to double the capacity of its integrated long products Monlevade plant located in Brazil's Minas Gerais State.

Monlevade produces wire rod. It currently runs one blast furnace, which was commissioned in 2000. The doubling of the plant's capacity will occur through the construction of another blast furnace, which will add over 1 million tonnes.

Speaking on November 29 at Vitoria in Brazil at the inauguration of the expansion to 7.5 million tons of ArcelorMittal Tubarão, Mr LN Mittal president & CEO of ArcelorMittal said that "The decision to construct a new blast furnace in Monlevade is part of the Group's recently announced growth plan, which aims at increasing shipments by 20% by 2012 through organic growth alone. It was recently taken by the Group's Board of Directors and Group Management Board is now set to implement it. Work on the ground will begin shortly."

US Steel to upgrade Mon Valley Works' Clairton coke plant

United States Steel Corporation announced that it is considering a USD 1 billion capital investment program at its Clairton Plant coke making operation near Pittsburgh that will enhance the company's environmental performance, help to ensure the long term viability of its Mon Valley Works operations and create more than 600 construction jobs.

The program, which would take place over a period of years, involves the construction of two new technologically and environmentally advanced coke batteries and a cogeneration facility, along with environmentally focused rehabilitation of several existing coke batteries. The new coke batteries would replace the current capacity of several older units and incorporate state of the art emissions control technology that would meet all regulatory requirements of the US Environmental Protection Agency and the Allegheny County Health Department. US Steel also plans to rehabilitate Clairton's remaining coke batteries. The new coke making and emissions control technology combined with the rehabilitation work will result in significant improvements in the Clairton Plant's overall environmental performance. Coke oven gas from coke battery operations would be consumed in the proposed cogeneration facility, which would supply electricity for all three Pittsburgh area Mon Valley Works facilities the Clairton Plant, the Edgar Thomson Plant steelmaking operation at Braddock in Panama and the Irvin Plant a rolling and finishing facility at West Mifflin in Panama.

US Steel expects to file for environmental permits with the Allegheny County Health Department in early January 2008. The decision to proceed with the program will depend upon receipt of the necessary permits, approval of US Steel's Board of Directors and business conditions.

Mr John Surma chairman & CEO of US Steel said that "US Steel is committed to running our operations in the most environmentally responsible, energy efficient and cost effective manner possible and this program will help us continue to do that at our Pittsburgh area facilities. We look forward to working with Allegheny County Chief Executive Mr Dan Onorato, the Allegheny County Health Department, the United Steelworkers, the Building Trades Council and other interested parties to complete this program, which will ensure that our Mon Valley Works facilities remain competitive and that manufacturing continues to be a vital part of Southwestern Pennsylvania's economy."

The Clairton Plant has an annual coke making capability of approximately 4.7 million net tons. Coke produced at the facility is used to fuel the two blast furnaces at the Edgar Thomson Plant as well as others at the company's North American steelmaking operations. Coke oven gas produced during coke making at Clairton is recycled and used at both the Edgar Thomson and Irvin Plants. Other by products are sold to the chemical industry for a variety of uses.

PT Bumi spending to double coal production

Indonesia’s biggest coal producer, PT Bumi Resources, may spend as much as USD 1.5 billion in the next four years to almost double production of the fuel and invest in its iron ore, gold and copper businesses.

Mr Dileep Srivastava head of investor relations at PT Bumi told that the company has not decided how to raise the money but Bisnis Indonesia, citing a person familiar with the plan, reported that PT Bumi may sell USD 1 billion of bonds next year to finance investments.

As per an earlier report, PT Bumi expects a 28% rise in the price of coal sold overseas next year and plans to boost production to 100 million tonnes by 2011 from an expected 56 million tonnes in 2007.

BHP bid for Rio - Rio prepared to talk to BHP

The Australian reported that in a sign the stalemate between BHP Billiton and Rio Tinto could be overcome, Mr Tom Albanese CEO of Rio said that he might be prepared to talk as long as BHP pays the right price.

Mr Albanese told The Australian that he is flexible on the potential for a merger, in which he recognized some logic. But he reiterated that Rio did not need BHP and that BHP's three for one proposal had been rejected as value destroying for Rio shareholders.

Mr Albanese said "I would not say that we are inflexible, by any means. I am not necessarily disputing the industrial logic of what is being said but the value was not there and the question is that of value."

In saying Rio is not inflexible, Mr Albanese noted that the company had only rejected two things “BHP's three for one offer and making a counter-bid for BHP, which had never even been considered. They were both rejected for the same reason. They weren't value accretive to shareholders.”

Global DRI production in October 2007 up by 7.8% YoY

International Iron and Steel Institute have released the production figures for direct reduced iron for the month of October 2007. The global production of DRI in October 2007 was 4.722 million tonne up by7.8% YoY.

Global DRI production during January to October 2007 amounted to 44.890 million up by 8.9% YoY. India’s production in this period amounted to 14.670 million tonnes up by 18.5% YoY.

In 000 tonnes
Source – IISI

Dofasco changes its name to ArcelorMittal Dofasco

Dofasco Inc announces that effective from Novemner 30th 2007 it will change its name to ArcelorMittal Dofasco Inc.

Mr Juergen Schachler president & CEO of Dofasco Inc said that "Retaining our identity as Dofasco in association with ArcelorMittal allows us to build on a reputation that has taken many years to earn and is the result of the hard work and commitment of generations of Dofasco employees. We are combining two names that stand for leadership in the steel business: Dofasco as Canada's foremost steelmaker and ArcelorMittal, the world's No 1 steel company."

Mr Schachler noted the fact that Dofasco has changed its name on other occasions during its 95 year history "Our company's name has changed in the past, but what hasn't changed is the dedication and commitment of our people who work tirelessly to make Dofasco a leader in the steel industry and in our community. Our strength continues to be our people."

Peru port strike blocks metals shipments

According to Peru’s National Society of Mining, Petroleum & Energy, a Peruvian port workers strike in its eighth day blocked copper, zinc and lead shipments. Port workers went on strike November 21st to pressure stevedore firms for higher wages after Peru tripled annual exports of metals and fishmeal over the past five years to USD 23 billion in 2006. Callao handles one third of Peru’s exports.

Mr Ysaac Cruz president of National Society of Mining, Petroleum & Energy in an e mailed statement said that the strike at Peru’s largest Lima’s Callao port has cost mining companies USD 90 million in lost shipments to date.

Mr Jose Silva president of Peru’s exporter association Adex said that "The aggressive and criminal attitude of a group of stevedores hurts the country’s image and scares away future investment. These attitudes must be punished and their leaders arrested so foreign trade can continue operating normally."

According to the Peruvian Maritime Agents Association, the strike has cost Peru USD 700 million to date in lost business. Mr Allan Wagner defence minister of Peru told reporters that "Ships are docking in ports in Ecuador and Chile, causing losses to exporters and importers alike. The government hopes labor talks will prosper so we can avoid the last resort of bringing in the navy."

Meanwhile the mining group said that the strike is blocking shipments by companies operating in Peru’s central Andes, including St Louis based Doe Run Resources Inc, Volcan Cia Minera SA, Cia Minera Atacocha SA and Cia Minera Milpo SA.

Peru is the world’s third largest producer of copper and zinc and fourth in lead.

International Nickel acquires Brazil’s Niquelandia

International Nickel Ventures a junior miner based in Toronto said that it has acquired the Niquelandia nickel property in Goias State of Brazil for about USD 900,000.

The Niquelandia property is beside Anglo American's and Votorantim's Brazilian nickel producing properties to the north and south, which contain nickel deposits.

To acquire the 2,036 hectare Niquelandia property, International Nickel must pay the private owner USD 400,000 over four years and a USD 500,000 payment if the company decides to build a mine. International Nickel said that the acquisition is part of the company's strategy to expand its nickel exploration efforts in the Americas.

Mr Robert Bell president and CEO of International Nickel said that "The acquisition of the Niquelandia property is a major accomplishment for INV and demonstrates our ability to acquire high potential properties within proven geological environments which are also next to producing mining properties.”

He added that "Niquelandia's primary target is nickel copper sulphide deposits, although the area also has significant nickel laterite potential."

Timet postpones construction of new titanium sponge plant

Platts reported that US titanium producer Timet has decided that it is not currently necessary to start construction of a new titanium sponge plant.

Timet in a statement said that "Based on the company's recently completed expansion of its sponge production facility at its Henderson, Nevada location, together with its recently negotiated long term sponge supply agreements and expansion of the company's scrap handling, processing and melting capabilities, the company has determined that it is not necessary to commence construction of a new sponge facility at this time."

Mr Steven L Watson vice chairman & CEO of Timet in a statement said that “The expansion of capacity in the titanium industry often involves significant capital resources and long construction lead times. We believe our ability to expand our production capacity through a combination of internal expansion and long-term third-party agreements allows us to grow our business and meet the demands of our customers in a more timely and cost efficient manner."

JFE Steel East Japan to expand high valued steel output

JMB reported that JFE Steel's East Japan works tries to establish annual 9 million tonnes of raw steel output in fiscal 2008 starting April 2008 along with the effort to shift high valued products.

The release added that the works tries to launch shaft furnace at Keihin area to melt ferrous scrap and to inject liquid natural gas to blast furnace at Chiba area for lower carbon dioxide emission.

Charlotte wins community economic development award

Gerdau Ameristeel's Charlotte Steel Mill is the North Carolina Department of Commerce's 7th Annual International Community and Economic Development Award winner in the medium company category.

The award is presented by the North Carolina Department of Commerce to foreign owned North Carolina companies that demonstrate noteworthy corporate philanthropy and volunteerism.

Mr James T Fain secretary of commerce of North Carolina said that "These companies have embraced the North Carolina communities in which they do business, and this award is designed to applaud their civic and philanthropic contribution. It is important to recognize the role they and their employees play in making our state a better place to live."

Mr Mike Mueller vice president (mill operations) of Charlotte Steel Mill said that "Charlotte is a great community with many organizations that deserve our support. It is an honor to be a part of a company that is a good steward and therefore fortunate enough to contribute to the surrounding community."

Gerdau Ameristeel has been a major part of the Charlotte community for 46 years and has maintained a strong presence in the volunteer and charitable giving efforts in the area. Some their most notable efforts include, Habitat for Humanity, Adopt a Highway and post Hurricane Katrina support in New Orleans.

Chung Hung Steel increase prices in December

YIEH reported that Taiwan’s Chung Hung Steel has increased its new price lists for December. Therefore, the domestic black pipe mills all raised the price in order to offset the high raw material cost.

The price of black pipe in December has hiked by TWD 500 per tonne to TWD 22,500~23,000 per tonne. The price of galvanized pipe in December has increased by TWD 600 per tonne. But Chung Hung Steel said whether or not the price will be accepted will depend on the market.

Perkoa zinc mine due to make first shipments early 2009

Metals Insider reported that the new Perkoa zinc mine in the central African country of Burkina Faso is on track to make its first shipment of concentrates early 2009.

Mr Marc Flory managing director of the project’s developer AIM Resources, at the company’s AGM said that the processing plant is on track to come on line early next year with ore production to follow around the middle of the year. He added that once fully ramped up, Perkoa will produce around 132,000 tonne per year of concentrate, grading 52% zinc, equivalent to 68,640 tonne per year of contained metal.

The concentrates will go to Brazil’s Votorantim, Xstrata and Boliden.

Bulgaria coal mine blast kills 3 miners

It is reported that a blast wrecked the Dzhurkovo coal mine pit in the town of Laki in southern Bulgaria on Thursday and caused the death of three miners and wounded two others.

The Bulgarian news source Focus reported that the two miners who were hurt were taken in a Laki hospital. They were soon discharged on Thursday after being given treatments for gas poisoning.

Investigations were later on performed by a group of experts to know the possible cause of the explosion.

According to the mine officials, the flash could be the result of a methane gas flare up. But it was confirmed by a night shift manager of the pit that no gas was spotted before the miners went down for operations.

Madeco to create 3 subsidiaries

BNamericas reported that the board of Chilean copper products maker Madeco has agreed to create three new subsidiaries to carry out the company's activities, a move aimed at launching the industrial reorganization of the company.

Madeco said that “One subsidiary company will be responsible for producing and marketing copper, aluminum and fiber optic cables and electric conductors. A second will oversee tubes, sheets, strips, bars and profiles of copper, aluminum, other metals and alloys. The third will carry out capital investments, especially buying and selling of shares in other companies, partnership rights and other securities.”

Madeco will own 100% of the subsidiaries adding each new company will start out with capital of USD 1 million in cash.

BHP Billiton appoints director public affairs

BHP Billiton announced that it has appointed Mr Geoff Walsh as director public affairs. Mr Walsh has had wide experience in government, politics and the media and was most recently Chief of Staff to former Victorian Premier Mr Steve Bracks. Mr Walsh will report to Mr Marius Kloppers CEO of BHP Billiton.

Mr Walsh will be responsible for government relations in Australia and co ordination of the company’s communications globally.

Mr Kloppers said he was pleased to welcome Mr Walsh to the company. He said that "Geoff joins the company at an exciting and important time in its development and will bring valuable experience in government and communications to our team.”

Mr Walsh said he was very pleased to be joining the company and was looking forward to the new role. He said that "BHP Billiton is a great company with a global reach. The diversity and complexity of the company ensures the role will be both challenging and rewarding."

Tertiary Mineral sees significant iron ore potential at Sivakkalehto

Tertiary Minerals PLC said initial drilling on the Sivakkalehto iron ore target in Finland demonstrated the potential for significant near surface iron mineralization and that samples from three drill holes have been sent for analysis.

Tertiary Minerals said that visual inspection of the drill core, whilst not able to accurately predict grades, indicates that all three holes intersected significant widths of magnetite.

Mr Patrick Cheetham chairman of Tertiary Minerals said that “Drilling to date has tested only a relatively short and narrow part of a wider anomaly and with mineralization continuing at varying intensities at the bottom of each hole, the full width of the anomaly needs to be traversed in future drilling program.”

James River Coal offers 4.5 million shares at USD 6.45 each

Reuters reported that James River Coal Co was offering offered 4.5 million shares of its common stock at USD 6.45 a share.

James River Coal in a filing with the US Securities and Exchange Commission the steam and industrial grade coal producer said the underwriter may purchase up to an additional 675,000 shares. James River Coal added that the net proceeds from the offering is expected to be about USD 28.4 million, which will be used to pay down either its revolving credit line or its term credit line, to fund capital expenses and for general corporate purposes.

Magnetek receives USD 1 million order from Dragon Steel

Magnetek Inc announced that it has received its largest material handling systems order from Asia totaling about USD 1 million.

The order is from Taiwan's Dragon Steel Corporation is for DC Magnet and AC Thruster is for overhead crane brakes scheduled for delivery and installation in 2008.

Magnetek Inc is a manufactures and sells digital power control systems that are used to control motion and power primarily in material handling, people moving, telecommunications, and energy delivery applications.

Gloucester Coal’s 2008 earnings to fall short

It is reported that Australian miner Gloucester Coal Ltd said that earnings in the year ending June 30 probably would not match last year's because of a stronger currency and port congestion.

Mr Rob Lord CEO of Gloucester Coal in an address to shareholders said that its profit forecasts have been revised down. The company would not benefit until mid 2008 from stronger prices for power station coal.”

Mr Lord said that “The company's financial performance in the 2007-08 financial year is not expected to reach last year's levels. ” He added that “The outlook for the 2008-09 financial year is very strong.''

About a third of Australia's coal export capacity is at Newcastle in New South Wales state where the line of ships waiting to load cargoes stretched to a record 79 in early July, boosting so called demurrage costs. The Australian dollar has averaged 86.82 US cents so far this business year, up from 78.63 in the year ended June 30.

Gloucester Coal reported a 55% drop in full year profit in the year ended June 2007 to AUD 18 million also due to shipping delays and a stronger Australian dollar.

National Coal appoints Mr Castle as new senior VP

National Coal Corp announced the appointment of Mr Michael Castle as the company's new senior vice president & CFO effective December 1st 2007. Mr Castle will be based at Knoxville in Tennessee and report directly to Mr Daniel Roling president & CEO of the company.

National Coal in a statement said that the current CFO & board member, Mr Mike Love would be leaving the company to pursue other opportunities and his post on the Board of Directors would remain vacant for the time being.

Mr Castle has been doing professional practice focusing in management advisory and consulting services since 1999. While in practice he has offered a range of financial and operational skill sets intended to help companies grow, acquire or sell coal mining and natural gas properties throughout the Kentucky, West Virginia, Ohio, Tennessee and Virginia region. Mr Castle also used to provide income tax planning and compliance services for coal mining and coal industry related businesses.

Mr Roling said that "Castle's background was attractive during the search process and sees areas where his industry insight will undoubtedly offer the Company significant benefit. Michael is very knowledgeable about the coal industry, having been associated with it for a number of years. His past achievements speak volumes about his ability to add value and we look forward to his addition to our team."

ArcelorMittal to use Turkey as a springboard for regional expansion

It is reported that ArcelorMittal aspires to have a key position in the Turkish construction equipments sector and also expand position in the Mediterranean and Caspian regions.

Mr Gonzalo Urquijo CFO of ArcelorMittal while speaking at a press conference recently, after ArcelorMittal expanded its position in Turkey by acquiring 51% of the shares of Rozak AŞ said that “ArcelorMittal aims at becoming an important player in the Turkish construction sector.”

He said that “We will establish a rolling mill in Turkey that will have an annual production capacity of 4.5 million tonnes of steel. We will make an investment of USD 500 million to this end. We will also seek other opportunities to expand our position in Turkey.” Financial details of the deal have not been disclosed.

The deal follows the announcement of ArcelorMittal in October that it will build a USD 500 million new hot strip mill in Gemlik, northwestern Turkey with Borusan Holding.

Mr Philippe Darmayan executive vice president of ArcelorMittal’s on the other hand stated that his company wants to become a pioneer in the steel sector in developing countries. He said that “ArcelorMittal sends some 15 million tonnes of steel to almost every corner of the world each year. We wish to expand our position in the Mediterranean and Caspian regions. We believe that we will attain our objective thanks to our partnership with Rozak.”

Rozak was established in 1983. Since 2003 its production and turnover has grown notably from 104,000 tonnes and a turnover of USD 42 million in 2003 to USD 307 million and 460,000 tonnes in 2006.

Rautaruukki completes sale of re bar units to Al Tuwairqi

Rautaruukki Corporation's divestment of the reinforcing steel business of Ruukki Betonstahl GmbH of Germany and Ruukki Welbond BV of the Netherlands to the Al-Tuwairqi Group of Saudi Arabia has taken effect today.

The transaction has received regulatory approval from the German competition authorities.

The transaction completes Rautaruukki's withdrawal, started last year, from the reinforcing steel business.

PSM to meet its 10% coal and iron ore demand from Balochistan

Major General (Retired) Mohammad Javid chairman of Pakistan Steel Mills told media that Pakistan Steel Mills will meet its 10% requirements of coal and iron ore from Balochistan during the current year.

He informed media that Balochistan had vast potential to meet the coal and iron ore requirements of Pakistan Steel Mills, which will also lead to larger economic benefits to the province and the Steel Mills.

He said that “Over the past few years, it has become difficult for the Pakistan Steel Mills to import coal from different countries due to increase in the prices of shipment of coal and iron ore. Having come to know that Balochistan has vast reservoirs of coal and iron ore and Pakistan Steel Mills can meet its demand, the management has taken the decision to start benefiting from the coal of Balochistan.”

PSM chairman said at the beginning the Steel Mills would meet 10% of its coal requirements from Balochistan, which will worth PKR 30 million.

He maintained that Balochistan has long been a source of coal since the British Rule. Various areas including Khuzdar and other parts abound in minerals and other natural resources. These resources can play an important role in development of the country if utilized properly.

USD 4 billion TAP gas pipeline project got delayed

It is reported that USD 4 billion Turkmenistan Afghanistan Pakistan gas pipeline project has hit the snags after Russian gas giant Gazprom's signed an agreement with Turkmenistan for increased Europe bound gas supplies at enhanced rates.

As per report, the project is unlikely to materialize even in the next decade as Gazprom would be paying about 50% higher price to Turkmenistan with effect from next year. Earlier, Pakistan government was hoping that the Russian firm would cooperate and help complete the project.

Informed sources said that Pakistan is weighing the new developments in the background of a just postponed ministerial meeting of TAP countries and a revised agreement between Gazprom and Ashgabat. The revised agreement apparently means that the central Asian state would have little surplus gas available for export to South Asian region. Not only that, the price could make become a stumbling block because Pakistan and India may find it unaffordable for their economies when compared with the much prosperous European region.

Under the revised understanding with Gazprom, Turkmenistan will increase gas deliveries to the Russian firm to about 50 billion cubic meters. Gazprom that delivers about one quarter of Europe's total gas needs would now pay USD 130 per 1000 cubic meters to Ashgabat early next year and then USD 150 per 1000 cubic meter by end of next year instead of current rates of USD 100 per 1000 cubic meter.

PTT buys 25% stake in Mediterranean Gas Co

Thailand’s top energy firm PTT Plc has announced that it has agreed to acquire a 25% stake in Egypt based East Mediterranean Gas Co for USD 486.9 million as part of its strategy to expand into the Middle East and North Africa.

After PTT's investment, Mediterranean Gas Pipeline will hold 28% of East Mediterranean Gas, Merhav Group 25%, EMI EGI LP 12% and both Egyptian General Petroleum and Egyptian Natural Gas Holding owning 10%.

Mr Anon Sirisaengtaksin senior executive VP of PTT said that the majority of its policy was to expand its supplies to meet growing energy demand in Thailand. He added that ''This investment will provide PTT with a significant step forward for further expansion in the Middle East and North Africa, given Egypt's geographic location between the 2 regions.''

PTT is also eager to secure liquefied natural gas supplies to prevent the possibility of a natural gas shortage in Thailand. A new LNG terminal and other supporting facilities are scheduled to be completed in 2011.

PTT, in a statement, said that ''Egypt is a leading exporter of LNG, while Thailand will be required to import natural gas for serving local demand in the near future.''

EMG is the only company authorized to export natural gas from Egypt to Israel. EMG is building a USD 469 million pipeline to ship natural gas from Egypt to Israel, due for completion by December 2007. The pipeline from El Arish in northeastern Egypt to Ashkelon in Israel will transport about 677 million cubic feet per day of gas acquired from Egyptian General Petroleum Corp and Egyptian Natural Gas Holding Co to power producers in Israel, including Israel Electric Corporation.

UAE remains Japan's biggest trading partner in GCC

According to statistics released by Japan External Trade Organization, UAE remains to be its largest trading partner among the 6 nation GCC bloc, as Japan bought 200.3 million barrels of oil during the January to June 2007 period up by 3% YoY.

The release added that, priced at USD 62.08 per barrel or 2.21% lower, the crude oils covered 80.8% of the imports and another 11.5% was made up of gaseous hydrocarbons and other petroleum preparations.

While, transport equipment including passenger motorcars, topped the UAE imports from Japan in January to June 2007 period at AED 5.51 billion or 43% of the total Japanese products that entered UAE.

According to JETRO, UAE Japan bilateral trade rose by 4.35% to AED 69 billion for January to June 2007 period from AED 66.1 billion. It said that Japan's total imports from the UAE for January to June 2007 period reached AED 56.5 billion up by 1.4% YoY.

Mineral fuels made up the bulk of Japan's imports from the GCC for the January to June 2007 period, with Saudi Arabia as the main supplier with a 35.32% share, followed by the UAE with 34.46% and Qatar with 15.79%. Japan imported 559.85 million barrels of crude oils from the GCC countries during the January to June 2007 period at an average of 3.07 million barrel per day.

Saudi Arabia to boost trade ties with Pakistan

Mr Saleh Al Turki chairman of Jeddah Chamber of Commerce & Industry said that Saudi Arabia is keen to enhance trade relations with Pakistan.

Mr Al Turki added that "Last year we held a successful joint program and we encouraged Saudi businessmen to meet and interact with their Pakistani co partners."

In a statement, Mr Shahid Karimullah Pakistani ambassador to Saudi Arabia, said that Saudi Pak relations in the field of trade and investment go back to decades and both of them have consistently tried their utmost to increase the volume of bilateral trade. He added that "Saudi Arabia is one of the major export destinations for Pakistan."

Turkish FDI into Pakistan may cross USD 600 million

Mr Erdern Mutaf consul general of Turkey in Pakistan, while addressing members of Karachi Chamber of Commerce & Industry, said that Turkish foreign direct investment in Pakistan will cross USD 600 million in the near future.

He added that during the last 1 year, the total Turkish investment in different projects in Pakistan had reached USD 350 million. Giving details of the major Turkish investment in Pakistan, he said that Zorlu Group was establishing wind power plants at Jhimphir, with the initial capacity to produce 50 MW and the installed capacity of this project was expected to reach 300 MW in near future.

Mr Mutaf said that Turkish company Alfapen has entered into JV with a Pakistan company in PVC sector for producing UPVC products. He added that another Turkish confectionery company, having USD 7.7 billion turnover in 2006, has entered into a JV with a local company to produce biscuits and cakes in Karachi. The plant will start production by January 15th 2008.

Mr Mutaf said that bilateral trade volume increased considerably from USD 130 million in 2001 to almost USD 600 million in 2006. However, the current level still did not reflect the potential of both the countries. He said that the target was to reach USD 1 billion in near future. The re opening of trade office in Karachi after 8 years was clear sign of Turkish resolve in this respect. He invited Pakistan companies to take part in exhibitions held in Turkey.

Mr Iftikhar Ahmed Shaikh senior VP of chamber said that “Pakistan has the potential to target Turkish market in areas such as vegetable and fruits, pharmaceutical products, raw hides and skins. Turkey imported these items in large quantity, but share of Pakistan in these segments in negligible. He added that Turkey could take advantage of Gwadar port to establish production base in Pakistan and tap the huge untapped market of south and central Asia.”

Abu Dhabi to supply full volumes of crude oil to Asian clients in January 2008

Reuters reported that Abu Dhabi will supply full term volumes of crude oil to its Asian customers for January 2008 and additional barrels to at least 3 buyers to meet winter demand.

Two lifters confirmed receiving written notice that they would get full term volumes for a 2nd month in January 2008. Four lifters said that they had not requested extra barrels, while 3 others had asked for additions, leaving it unclear whether Abu Dhabi will supply more crude to Asia for January 2008 than for December 2007.

This is only the 2nd month since November 2006 that Abu Dhabi is supplying additional volumes, but the move may not herald the cartel's plan to lift output again when it meets next week. Abu Dhabi occasionally sells extra crude to its term buyers in Asia, although the exact volumes to be supplied this time were not immediately known.

OPEC is meeting in Abu Dhabi on December 5th 2007 and is under pressure to supply more crude to world markets to stop prices from breaching new records and put further strain on the global economy. While top Gulf OPEC officials have expressed deep concern at prices threatening to top USD 100, they reiterated that markets were well supplied and steered clear of saying whether OPEC would raise production at its policy meeting.

Iran to attend GCC summit 2007

Tehran Times reported that Mr Mahmoud Ahmadinejad President of Iran is to attend next week’s summit of Gulf leaders, the first time that Tehran has been invited to the meeting.

Mr Mojtaba Samareh Hashemi senior adviser to the President said that “Mr Ahmadinejad will attend next week’s Gulf Co operation Council in Doha on an official invitation. This is the first time that the Islamic Republic of Iran has been invited to the summit.”

Mr Hashemi did not specify in what capacity Iran had been invited but said that the aim of Mr Ahmadinejad’s presence was to boost ties with the Gulf States. He added that “The aim of this trip is boosting ties between Iran and the regional nations, especially in the Gulf area. The participation of the president shows that the will of both sides to consolidate co-operation is greater.”

Heads of state from Qatar, Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates are due to discuss the violence in Iraq and escalation of the Iran nuclear crisis at the December 3rd to 4th 2007 summit. The leaders will focus on ‘Gulf security’ at their meeting in Doha.

It is noted that Iran has rocky ties with GCC member states but has been seeking to improve ties as it faces increasing international isolation over its nuclear program.

Crude traders to face higher price as blast cripples oil pipeline

Doha Times reported that Middle East crude traders are bracing for higher prices after a blast crippled the main pipeline shipping Canada’s heavier crude to the US Midwest, anticipating refiners may have to scramble for supplies.

Pipeline operator Enbridge shut down its network of 4 parallel pipelines that pump Canadian crude to the US, and warned that the larger 2 lines carrying mainly medium and heavy grades could remain shut for a while.

Landlocked inland refiners such as Flint Hills Resources’ 280,000 barrels per day refinery in Rosmount, that rely on the pipeline for the base load supplies, would have to drag additional shipments inland from the Gulf or East Coast that could reverberate.

Pakistan's FOREX reserves surge to USD 16.107 billion

State Bank of Pakistan said that Pakistan’s foreign exchange reserve has rose by a marginal USD 9 million to USD 16.107 billion in the week ending November 24th 2007.

SBP, in a statement, said that reserves held by the State Bank of Pakistan fell to USD 13.896 billion from USD 13.914 billion a week earlier, while those held by commercial banks were up to USD 2.211 billion from USD 2.184 billion. The foreign exchange reserves have grown steadily over the past few months because of rising foreign investment inflows and higher remittances from the expatriates.

Dubai Maritime City in final stage

An official of Dubai Maritime City said that it is in the final stage and the maritime sector is fast transforming the city into an international hub for industry players worldwide.

DMC in a statement that said the project's final phase involves the expansion of the services network such as electricity, fire, water and telecommunications facilities. It added that the 6 lane causeway connecting the project to Dubai has been completed while the Industrial precinct is operational, although only 50% done. The largest computerized ship lift in the Gulf region has been installed in the same precinct, which will allow ships of up to 6,000 tonnes to dock in Dubai for repair and maintenance.

Mr Nawfal Al Jourani chief marketing officer of Dubai Maritime said that "We want to transform the maritime industry in order to create an environment for the networking and integration of players worldwide." He added that 60% of the world's oil demand comes from the Gulf region and it is only fitting that Dubai would continue working to be an international hub for the maritime industry as well as trade and commerce.

Mr Amer Ali CEO of Dubai Maritime City said that it will be one of the region's most important maritime developments and could transform Dubai into a world maritime cluster. He added that "Dubai Maritime City is now certainly taking shape as we have moved ahead with the final phase of construction and from an aerial perspective it is clear to see the integration of all the project's components."

The 227 hectare maritime centre is a fully equipped and multi dimensional development that would provide a world class infrastructure and environment for the global maritime industry. Dubai Maritime City's initial infrastructure works cost AED 3 billion.
It stressed that the maritime centre has finalized a number of projects within the different precincts that include, among other things, the construction of the UAE's first National Maritime Museum, in the Academic Quarter.

When completed, the Dubai Maritime will be a mixed use development for the maritime industry comprising industrial, commercial, residential and leisure facilities on a man made peninsula between Port Rashid and Dubai Dry Docks.

China agrees to remove certain export subsidies

Bowing to American pressure on the eve of high-level talks to reduce economic tensions, China has agreed to terminate a dozen different subsidies and tax rebates that promote its own exports and discourage imports of steel, wood products, information technology and other goods. The intent of the new agreement, negotiated by Ms Susan C Schwab, the top United States trade envoy, is to help American companies compete against China.

The action mostly affects exports by Chinese companies that have foreign investors or are joint ventures with foreign companies. Nearly 60% of Chinese exports are produced by these businesses. Also affected were tax breaks that China gives its own companies if they do not import goods themselves.

There are no clear indications so far that on which exports, if any, would become more expensive and which imports would benefit, since the precise amount of subsidies that different companies get is not public.

While Ms Schwab acknowledged that some of the loss of subsidies might be borne by Chinese companies owned in part by Americans, she trumpeted the agreement as a major breakthrough. She said “This outcome represents a victory for US manufacturers and their workers. It shows that President Bush’s policy of serious dialogue and resolute enforcement is delivering real results.”

Ms. Schwab said she hoped that the negotiated settlement on subsidies, after months of litigation at the WTO, would improve the atmosphere on other disputes over China’s currency policies, antimonopoly rules, regulations and other practices that seem aimed at discouraging foreign imports and investments.

Wuhan's upgraded silicon steel mill commissioned

Wuhan Steel's renewed fourth steelmaking branch had its No.1 converter commissioned lately, which is regarded of great significance to improving Wuhan Steel and the whole country's silicon steel production capability.

It's reported the reformed fourth steelmaking branch, also known as new steel making 2, is to supply billet and slabs to silicon steel production of the producer.

And the reforming project is actually to adapt to its requirement of higher grade silicon steel expansion, structural optimization, technical upgrade, energy saving and leading a sustainable development path.

As one of the keynote projects during the 11th five-year plan period for Wuhan Steel, it is scheduled to make high grade silicon steel and household appliance steels, therefore achieve economy of scale production and enhance its position.

(Sourced from MySteel.net)

POSCO sets up service center at Foshan

It is reported that POSCO has set up a service center at Foshan in Guangdong Province of China to meet the expanded demand for automobile and home appliance in local markets.

The sales center has annual processing capacity of 120,000 tonnes and all the materials are supplied by ZPSS and Qingdao Pohang Stainless Steel Co Ltd.

Steel output to exceed 100 million tonnes in Hebei province

Hebei province disclosed that the steel production will exceed 100 million tons in 2007, almost 111 million tonnes.

Steel output during January to October 2007 has already outstripped the whole year production of 2006 in Hebei. Sales income and pretax grow higher than output, which demonstrate the sound operation and profits of steel enterprises in Hebei province. However, some small steelmakers suffer high production cost and now suspend production.

As per reports among 38 steelmakers in Hebei province, 11 ones suffer lost, holding 29% and another 71% gain.

Chinese plate export prices to South Korea soaring

It is reported that China’s export price of carbon steel plate to South Korea has increased by USD 15 per million tonnes to USD 750 per tonne.

The main reason of that is China domestic selling price is in a high price level and the export tax is said to rise in the near future.

The market analyst predicted South Korean buyer would start to purchase more before this price increase higher. Besides, Tianjin Iron and Steel’s quotation price for carbon steel plate is at USD 765 per tonnes for February and March shipments 2008.

Tiantie HR mill produces 1.2mm strip in trial run

It is reported that Tiantie succeeded in trial rolling 1.6mm and 1.2mm strip on November 22nd and 26th 2007 respectively after the success of 1.8mm strip on October 30th 2007.

Meanwhile, checkered sheet of a thickness of 4.5mm and a width of 1,150mm was also successfully trial rolled for the first time on November 24th 2007 with a total weight of 68 tonnes.

It is reported that HR mill of Tiantie will increase proportion of thin HR next year for supplies to CR makers.

China iron ore prices on up swing due to hectic buying

According National Development &Reform Commission that domestic iron ore concentrate price soared to CNY 1320 per tonne on November 23rd 2007, surpassing the peak level of CNY 1310 per tonne set on September 7th 2007. Fe 66% ore concentrate price has gained CNY 604 per tonne or 86.3%YoY to CNY 1304 per tonne in Tangshan region.

Most Chinese mills have been overly optimistic about iron ore supply of this year, and caught off guard when the market shifts materially in the second quarter. The market price has been driven up to crazy level as Chinese steelmakers are desperate to snap up iron ore.

Mr Jim Lennon senior analyst of Macquarie noted that depleting iron ore capacity expansion in China has partially fuelled up global iron ore demand. He said that “China's domestic iron ore production looks set to decline after hitting the peak in a couple of years. In fact, investment in new mines has already moved downward with domestic iron ore output estimated to soar up to 330 million tonnes.”

Statistics from National Statistics Bureau show that investment in ore mining has grown 16% in the first ten months of this year, as opposed to 28.2% in the corresponding period of last year.

Mr Li Xinchuang deputy director of China Metallurgical Industrial Planning and Research Institute predicted that iron ore is likely to fall back rapidly after touching the price ceiling.

According to report from United Securities Global seaborne iron ore supply is estimated to add by 70 million tonnes next year, exceeding the demand increment of 48.56 million tonnes.

(Sourced from MySteel.net)

CISA calls for forming national iron ore reserve

It is reported that China's steel industry, the world's largest, is lobbying the country's central government to establish a national iron ore reserve to secure supplies of the raw material.

Mr Luo Bingsheng vice president of the China Iron and Steel Association while speaking on the sidelines of an industry conference held in Beijing said that "We have suggested the government sets up the reserve. He said China would boost investments in overseas mining projects to break through a monopoly of foreign companies in the sector.”

Mr Luo was speaking after Mr Marius Kloppers CEO of BHP made the rounds in Beijing last week to try to allay Chinese concerns over the proposed USD 120 billion plus all share takeover. He added that "BHP promised that the proposed merger would not be connected to iron ore price negotiations and the talks for next year's contract would abide by the previous rules."

China's steel industry has voiced worries that a combination of BHP and Rio could drive up the price of iron ore.

Hansteel 1st phase to start up in H1 in 2008

It is reported that the first phase of new address project of Hansteel will start up in H1 next year.

Mr Kong Ping deputy GM of Handan Iron & Steel Group Co in province Hebei said that Hansteel and Baosteel signed agreement on May10th 2007 and each company invested 50% to found Hanbao Iron and Steel Cop Ltd and to construct the new address of Hansteel together.

According to the current development of the first phase of the project, four projects including blast furnace, coke oven, sintering machine and raw material mill are planned to be finished by this year, while steelmaking project and HR continuous rolling project are supposed to be completed by next June 2008. The first phase of the project would start up in H1 in 2008 and the whole project is expected to be completed in 2010.

After the operation of the new facility, Hansteel would be able to produce value added products including produce auto steel, structure steel for shipbuilding and high grade pipeline steel, which are still in short supply in Chinese domestic market.

Angang focusing on high end products

According to Mr Li Ge Sheng GM of Ansteel HuaBei Company, Ansteel has stopped selling the general steel products from 2007 and begun to produce high value added products so that it can keep away from the competition in market and enhance the enterprise’s profits.

He also said that with the steel export rebate decreased, china’s steel export volume would obviously decline.

It is predicted that China's steel export will continue to fall in 2008, which means the competitions between steel mills will be more furious next year in the domestic market and focus on high end steel products will help.

Hansteel succeeds in making X60 pipeline steel

It is reported that Hansteel has achieved X60 pipeline steel successfully on November 26th 2007.

China's largest coal fired power plant starts operation

Xinhua reported that China's largest coal fired power plant, well equipped with four 1,000 megawatt generating units, went into operation on November 29th 2007.

The project, located in east China's electricity deficient Zhejiang Province cost an investment of CNY15.6 billion. The first two generating units kicked off production in December 2006.

According to the country's leading energy conglomerate this is also believed to be the world's largest coal fired power plant built with ultra supercritical technologies, the highest global standards of the industry.

The Chinese government has pledged to reduce energy consumption per unit of GDP by 20% and emission of major pollutants by 10% by 2010. Official statistics showed that more than 70% of the country's energy is produced by coal fired power plants.

China has been building large capacity power plants to save energy and reduce emissions. The country plans to close small but energy guzzling coal fired generating units with a total capacity of 50 million kilowatts by 2010.

Anyang, Rizhao Port and COSCO ink transfer cooperation contract

It is reported that Anyang Steel, Rizhao port and COSCO has signed steel products transfer cooperation contract on November 27th 2007.

The cooperation will facilitate Anyang Steel to relieve the rail transport pressure and expand in East China.

China to win the international steel pricing advantage

According to the experts in steel industry that currently international steel pricing center has not formed, if China launched steel futures as soon as possible, China is expected to win the international steel pricing advantage.

China is the world’s largest steel producer and consumer country, the industrial concentration is low, the prices of steel products in the market is high frequency fluctuations, so china has a good market basis to launch steel futures.

Recently, there was a forum on the work of steel futures listing in Beijing, Baogang, Angang, Shougang, Magang and so on participated in this form. According to the summary of forum, futures of common wire, whorl steel products in china already have the foundation and conditions for listing.

Jinchuan cuts EXW price of nickel

It is reported that on November 29th 2007, Jinchuan Group decreased its nickel EXW price by CNY 8000 per tonne to CNY 251000 per tonne.

Jinchuan Group Limited is a large integrated non ferrous metallurgical and chemical engineering enterprise engaged in mining, concentrating, metallurgy and chemical engineering.

Jinchuan Group Ltd has had an annual production capacity of 130,000 tonnes of nickel, 200,000 tonnes of copper, 6,000 tonnes of cobalt, 8,000 kilograms of platinum group metals and 1200,000 tonnes of chemical products.

Guangzhou Iron & Steel Group raises construction steel price

China’s Guangzhou Iron & Steel Group has announced to increase the construction steel price effective from November 29th 2007.

The price rise will be CNY 50 per tonne for round bar and rebar and CNY 80 per tonne for high speed wire.

The current price for HRB335 rebar with diameter from18mm to 25mm is about CNY 4,780 per tonne while the Q235 6.5mm high speed wire is about CNY 4,680 per tonne.

Foshan stainless steel price remain stable

It is reported that recently stainless steel price remains stable. Currently, Taigang 2.0mm CRC is prevailing at CNY 31000 per tonne; ZPSS-made CRC is CNY 31300 per tonne. 3.0mm Baosteel/ZPSS origin still stands at CNY 29800 per tonne.

(Sourced from MySteel.net)

Pangang and Gezhouba form strategic cooperation

It is reported that on November 29th 2007, Pangang group’s mining company and Chongqing Gezhouba Pu Yi Company expressed that the strategic cooperation between them had entered the substantive stage on the explosion asset reorganization handover ceremony.

China's auto parts export up 30% first ten months

According to Ministry of Commerce that the export of China's automobile parts amounted to CNY 13.25 billion up by 30% during January to October 2007 which brings more confidence on China's part quality for international large companies.

IUD launches 1st phase of converter division at Alchevsk

Ukrainian Journal reported that Industrial Union of Donbas has launched the first phase of a new oxygen converter division at its Alchevsk Iron & Steel Works, thus completing the first phase of the modernization of steelmaking facilities at the works.

The first phase, which includes one converter that can produce 2.5 million tonnes to 3 million tonnes of steel per year and the related shop infrastructure, cost UAH 5 billion.

Ukrainian steel mills face coke shortage due to lack of coal

Ukrainian Journal reported that Dnipropetrovs’k based Ukrkoks Ukrainian scientific and industrial association has forecast further shortages of coke for domestic steel mills due to the growing deficit of coking coal extraction.

The association said that the situation could be tackled with the diversification of coal imports and the building of ports for large capacity ships.

RusAl creates coal and energy JV in Kazakhstan

RIA Novosti reported that Russia's aluminum giant United Company RusAl had agreed with Kazakhstan's state holding company Samruk on the establishment of a JV for coal production in the Central Asian state. The agreement on the JV to develop the Ekibastuzskoye coal field at the Bogatyr and Severny coal mines in the Pavlodar Region in north eastern Kazakhstan was signed on November 29th in the Kazakh capital.

RusAl said in a statement that "As a result of the agreement, UC RusAl will transfer a 50% shareholding in its Bogatyr and Severny coal assets to Samruk Holdings. The assets were transferred to UC RusAl by Access Industries as part of the recent merger of RusAl, SUAL and Glencore. The consideration for the 50% shareholding will be determined by an independent international authority."

Mr Alexander Bulygin CEO of Rusal said "A partnership with Kazakhstan is a key milestone in the development of our company as a diversified energy and metals corporation. Our participation in the development of coal and energy projects in Kazakhstan will allow us to expand our energy base and realize new projects, including the extraction of new kinds of raw materials and metal production."

UC RusAl is a global aluminum leader accounting for about 12.5% and 16% of global production of aluminum and alumina respectively. The company sells its products in 70 countries worldwide and employs 100,000 people in 17 countries, across five continents.

Ukraine mine blast death toll reach 101

RIA Novosti cited Ukraine's emergencies ministry as saying that a miner who was seriously injured in a November 18 blast at a Ukrainian coal mine has died in hospital, bringing the death toll to 101 people.

The ministry said in a statement that "On November 29th 2007 a body of a miner was discovered and brought to surface and another miner, who had been hospitalized with serious injuries died in hospital."

A total of 457 miners were underground at the time of the explosion and 357 were brought up alive. At least 40 miners remain hospitalized.

Authorities said faulty equipment and poor safety conditions may have been behind the methane blast at the mine.

Mechel announces early fulfillment of power generation plan

Mechel announced that its Southern Kuzbass Power Plant subsidiary has fulfilled the annual electric power generation plan approved by the Federal Tariff Service of Russia, ahead of schedule.

The annual electric power generation plan, which included the production of 1.6 billion kWh of electricity and was approved by the Federal Tariff Service of Russia, was fulfilled ahead of schedule in November 2007. Southern Kuzbass Power Plant is expected to generate an additional approximately 400 million KWH of electric power before the year end.

The increase of electric power generation by Southern Kuzbass Power Plant was due to a deficit of electric power in the Southern Kuzbass caused by specific environmental conditions. Beginning in June of this year, the water level in the rivers of Siberia, where hydroelectric power stations traditionally generate significant electric power volume, was below the average. Southern Kuzbass Power Plant uses steam coal as fuel which is steadily supplied to it. Thus, power production at the plant is not as affected by environmental conditions.

Another distinguishing feature of Southern Kuzbass Power Plant is its technical capability to expeditiously increase its power generation in accordance with market conditions and growing demand. This enabled the power plant to increase its power generation and, consequently, profit. The competitive advantage of the power plant is its location close to the coal mining sites as well as the coal and ore mining companies in the Southern Kuzbass, which ensure its consistent load.

Southern Kuzbass Power Plant became Mechel’s subsidiary in March 2007. The objective of acquiring Southern Kuzbass Power Plant was to increase Mechel’s performance through the possibility of producing electric power using Mechel’s own steam coal. The acquisition of the new power generating asset was also aimed at developing the power component of Mechel's business, which, in particular, includes reduction of production cost by generating Mechel’s own electric power, growth of the Company's capitalization, and making additional profit from marketing the generating electric and heat energy.

IUD acquires 4% share of Stocznia Gdansk

It is reported that ISD Polska has acquired 4% of the shares of Gdansk shipbuilding plant Stocznia Gdansk SA as per last year’s declaration to buy a small package of shares in the enterprise.
A treaty was signed repurchase company ISD Polska part of the shares of additional emissions in early 2007.

Buying originated by participating in the subscription for shares and the issuance of additional cost of about PLN 5 million or USD 1.67 million late last year, the shareholders meeting Stocznia Gdansk has decided to increase the charter capital of the plant.

According to Mr Litvinova Konstantine chairman of the ISD Polska “The remaining shares directly or indirectly owned by the Polish, could be the first step to a possible acquisition of a controlling interest in the plant, but a final decision on the matter is pending. Until this package enough to dive to know the situation at the plant and more closely to develop cooperative links.”

Mr Konstantin said that "We now await a response from the Polish side. It must explain how it is seen further development of the plant. The decision about further privatization, but her determination procedure later if this is a tender or would be replaced by another form is not clear."

Earlier ISD also expressed willingness to participate in the privatization of another Polish ship building yard "tocznia Gdynia. But because of the difficult financial situation at the plant as well as the issue of so called public assistance until a final decision on Stocznia Gdynia is not accepted.

Serov metallurgical plant launches Argon production

It is reported that Metallurgical Plant Serov put into operation an argon making unit.

The argon making unit was supplied by Italy's SIAD and has the capacity of up to 150 cubic meter of gas per hour. Investments into the argon production totaled about RUB 115 million.

This is sufficient to cover the needs of an electric steel smelting unit and other conversion units of the enterprise.

Earlier the plant installed an air separation unit to make oxygen and nitrogen. The use of such gases accelerates the steel smelting process and ensures considerable energy savings. The plant makes carbon and alloyed steels, converted cast iron, calibrated and sectioned roll and other products.

Ukrainian SPF sells 27.6% of shares of kharkiv tractor plant

Ukrainian State Property Fund’s press service reported that the State Property Fund has sold 27.6% of shares of the Kharkiv Tractor Plant named after Sergo Ordzhonikidze.

The bidding took place at the Ukrainian International Stock Exchange in Kyiv and the stake was purchased for UAH 14, 030,000 by Dragon Capital, Briz 2007 and the Private Investment Company.

The majority stake in the Kharkiv Tractor Plant belongs to the Development Construction Holding set up to run the assets of the Ukrainian businessman co owner of the UkrSibbank Mr Oleksandr Yaroslavskyi.

According to the DCH, it will sell the plant to a strategic investor but retain a blocking minority ownership of it.

Ukrainian prosecutor outlines 5 probable causes for Zasyadko accident

Mr Olexander Medvedko the Prosecutor General said at the press conference recently that the investigation of accident in Zasyadko mine happened on November 18th 2007 in Donetsk considers five possible reasons of it.

According to him the possible reasons are as under
1. Explosion happened as a result of violation of technologies of coal extraction by officials
2. Breach or rules of using devices and equipments
3. Explosion happened as a result of breach of safety regulations while extracting coal
4. Breach of regulation of seismological and air gas control by respective officials
5. An act of terror

According to Mr Medvedko impossibility to reach the place of the accident makes the investigation complicated. Mr Medvedko opined that 11 miners who are still missing are not alive as it is impossible to survive there.

Mr Medvedko also did not agree with some assumptions that reason of the explosion was methane and malfunction of control equipment. He noted that at first it was necessary to make investigation and then to make conclusions.

As a reminder, on November 18th at 3.11AM gas explosion had happened at the coalmine named after A. Zasyadko in Donetsk region. The blast happened as a result of blast of aeromethane mixture in 14th conveyor drift while boring. Death toll is 101 miners.

UC RUSAL to build USD 20 million foil plant near Moscow

It is reported that UC RUSAL plans to build a packaging foil plant near the city of Dmitrov in the Moscow region at a cost of approximately USD 20 million.

The plant will have an overall capacity of 20,000 tonnes of packaging foil per year and will increase UC RUSAL's share of the Russian foil and foil based packaging market by up to 66%. Construction will begin in 2008 with first production scheduled for the end of 2009. UC RUSAL packaging division has developed a preliminary feasibility study. A final feasibility study is currently being undertaken by the engineering and construction division of UC RUSAL, responsible for the design, construction and launch of new projects.

Mr Alexander Burdin Packaging Division Director of UC RUSAL's said that "The fast growing market is forcing manufacturers to expand and renew their range of products. Today we are manufacturing foil-based products in Russia that comply with the highest international quality standards. We will continue to develop and plan to double the production of our alufoil based flexible packaging in Russia within three years."

At a press conference held on Wednesday in Moscow, Mr Burdin said that UC RUSAL had cornered a 33% share on the Russian foil based and packaged materials market. The company's packaging division's sales revenue will increase 20% to USD 360 million from its current USD 300 million by 2010, when the company brings the new plant on-stream. He said he new plant's production capacity could be increased to 25,000 tonnes.

Mr Burdin added that development on the Russian market is a priority for the division however, increasing exports to Western and Eastern European countries was also being examined. The division currently exports around 50% of its production.

UC RUSAL was founded in March 2007 following the merger of RusAl, SUAL and Glencore's alumina assets. The company's packaging division includes the plants RusAl Armenal, Khakasia based Sayanal and Urals Foil.

Russian LUKoil starts gas production at Uzbekistan's Khauzak

RIA Novosti cited Mr Vagit Alekperov CEO of LUKoil as saying that Russia's largest independent crude producer LUKoil has started producing gas from the Khauzak field in southwest Uzbekistan.

The second project phase has begun at the deposit under the 35 year Kandym Khauzak Shady Kungrad production sharing agreement, signed on June 16th 2004 in Tashkent by LUKoil Overseas and Uzbekneftegaz. The agreement came into force on November 24th 2004.

Mr Vagit Alekperov told a launch ceremony which was attended by Mr Sergei Ivanov First Deputy Prime Minister of Russia that "We are now starting the second stage, which will be commissioned in 2011 and will cost over USD 2 billion." Mr Alekperov said LUKoil's investment in the project's first stage totaled USD 400 million.

LUKoil said the companies shared costs on a parity basis in the first stage of the project. The maximum annual production rate for natural gas will amount to 11 billion cubic meters with production expected to peak in 2012 to 2013.