Zenith Birla setting up pipe-making plant

BL reported that Yash Birla group Zenith Birla Limited plans to set up a new pipe making facility with an investment of INR 250 crore to 300 crore. The plant will be located on the West Coast close to a port in Maharashtra or Gujarat and is scheduled to go on stream in 2009

The plant will be manufacturing ABOUT 200,000 tonnes of SAW pipes in diameter up to 24 inches, which are mainly used for oil and gas pipelines.

Mr MS Arora ED & CEO of Zenith Birla told Business Line that “The current trend for oil and gas distribution is towards pipeline transportation, as against rail or road movement, with more than 30 cross country pipeline projects coming up in the country. We see a huge demand coming up for large diameter SAW pipes. And this is why we have decided to set up a Greenfield plant.”

He added that “We are looking for land in Maharashtra and Gujarat. We require about 30 acres to 40 acres. In our estimate, construction work will be launched within six months. We have already started negotiations with equipment suppliers.”

Zenith Birla Limited currently, produces 120,000 tonnes of pipes from its existing plant at Khopoli near Mumbai, which has two lines of production. Zenith already has strong in the global market, chiefly in the US and West Asia, with about 60% of its turnover coming from exports.

Ms Patkar ready to mediate between villagers & CM on POSCO

SNS reported that social activist Ms Medha Patkar has dared Mr Naveen Patnaik chief minister of Orissa for holding a public debate on the POSCO project and displacement related issues or for that matter any other project in the state.

As per report, she has also offered to mediate between villagers and the government, provided the latter agreed to a talk on the POSCO issue.

She said that “Recently, I have written a letter to the CM for a dialogue and negotiation but there has been no response till date.”

SAIL bags SCOPE Gold Trophy 2007

Steel Authority of India Limited has won the prestigious Gold Trophy of the prestigious “SCOPE Award for Excellence and Outstanding Contributions to the Public Sector Management” for the year 2006-07.

The award is instituted by Standing Conference of Public Enterprises and aims to reward recognize and encourage the contribution of public enterprises as well as of outstanding individuals for their vision and leadership qualities in creating national wealth. Bestowed every year after evaluation of established performance criteria by a jury comprising eminent persons and assisted by the International Management Institute, the 5 member jury for the awards was headed by Justice Mr PN Bhagwati.

SAIL had earlier bagged the SCOPE Gold Trophy for excellence and outstanding contribution to public sector management for the year 2004-05 and special SCOPE Award in the turnaround category for achieving a spectacular turnaround in 2003-04.

The SCOPE award for SAIL is in continuance of a number of awards including “India's Employer of Choice 2007” in the PSU category award instituted by CNBC TV18 et al very recently, the prestigious “Business World FICCI SEDF Corporate Social Responsibility Award 2006”, “BML Munjal Award for excellence in learning and development” in public sector category for the year 2006, etc which bear testimony to its ever increasing efforts towards improving efficiencies.

NINL BF shutdown to result in major losses

PTI reported that Nilachal Ispat Nigam Limited has sustained a loss of nearly INR 200 crore in the past 50 days owing to shutting down of its plant in Orissa.

The report cited a senior union steel ministry official as saying that "NINL has sustained a loss of about INR 198 crore in the past 50 days as there is no production in its Orissa plant since October 24th 2007 and we are deeply concerned.'

The official added that "NINL did not initiate measures to withstand the stiff competition from private producers. We are left with no other option except to inform the committee of secretaries on NINL's present situation and have prepared a note accordingly for the CoS.”

Incidentally, Steel Authority of Indian Limited had offered to merge NINL with itself, but unfortunately both the NINL and Orissa government opposed the move although SAIL had proposed to invest INR 12,000 crore to ramp up its production capacity to 4 million tonnes.'

NINL, which was set up in 1982, produces 2200 tonnes of pig iron per day. It has a blast furnace having capacity of 1,950 cubes besides a coke oven and a captive power plant.

PGCIL pulls out of race for Transco in Philippines

It is reported that Power Grid Corporation India Limited has pulled out of the race for operating the Philippine national power grid and did not place a bid for taking over the state owned transmission venture Transco.

PGCIL had earlier formed a consortium with Manila based Citadel Holdings Inc in the run up to the bidding process for running the transmission utility of Philippines under a contract for 25 years.

The other contenders include Terna-Rete Electtrica Nazionale SPA of Italy with Two Rivers Pacific Holdings Corp, Malaysia's TPG Aurora BV and San Miguel Corp and State Grid Corp of China with Monte Oro Grid Resources Corp. Out of the 4 consortia in the running, 2 ventures, including the PGCIL Citadel JV has pulled out at the time of submission of bids. Philippine national power grid contract was bagged by a consortium including China’s State Grid Corporation with a USD 3.95 billion bid.

TransCo was formed to manage the transmission assets of National Transmission Company. TransCo is being valued at USD 4 billion and 20% in the utility is estimated at USD 800 million for the stake.

TATA Steel bags CII ITC sustainability award 2007

It is reported that TATA Steel has bagged the CII ITC sustainability award for the second consecutive year in 2007.

The award was presented to TATA Steel in a ceremony held as part of the second sustainability summit. Mr Chanakya Chaudhary chief resident executive of TATA Steel has received the award on behalf of Mr B Muthuraman MD of the company.

The award was instituted jointly by the Confederation of Indian Industry and the diversified major ITC in 2006 to promote awareness about sustainable development in the Indian businesses.

HZL commissions new zinc smelter at Chittorgarh

Vedanta Resources Plc’s Hindustan Zinc Limited announced that it has commenced zinc metal production on December 11th 2007 from Hydro Phase II having a capacity of 170,000 tonnes per annum at Chanderiya lead zinc smelter in Chittorgarh district of Rajasthan.

The project was completed in the bench mark time frame of 20 months, which is a quarter ahead of schedule.

With the commencement of above production, the total zinc and lead capacity of HZL is now 670,000 tonnes per annum.

HZL’s finished metal capacity was 204,000 tonnes per annum in 2002, at the time of its disinvestment by the Indian government. It plans to reach 1 million tonnes by 2010. To support the increased production capacity, HZL's Rampura Agucha mine in Rajasthan is also under expansion to increase the ore production capacity from 3.75 million tonnes to 5 million tonnes, thus taking HZL's total ore production capacity to 7.10 million tonnes per annum.

CIL may restrict supplies to some small sectors

It is reported that a high powered committee set up by Coal India Limited, for studying coal supplies to small and medium sector consumer under the new coal sales policy, has recommended restricted or no issue of new letter of assurances to smokeless fuel, brick kiln, briquette, crockery and coke oven units.

This was on the basis of feedback received by the committee that bulk of the coal issued to these small and medium units was mostly diverted to the grey markets at a high premium.

The report cited a CIL official as sayings that "We have definite feedbacks that most of the coal has been diverted to the Varanasi market at a high premium. Hence the need to be alert on issuing letter of assurances to these units. We have to priorities whether coal should be provided to a new cement unit or an upcoming or existing briquette unit."

In 2006-07, the small and medium consumers were fed with 2 million tonnes of coal. CIL had 4,800 customers in 2001-02 but the number is now reduced to 700 and with this policy further reduction is likely.

SAIL’s plan to take over Steel Complex progressing

BL reported that Steel Authority of India Limited, which is looking at taking over Kerala government owned Steel Complex Limited, is progressing.

The report cited an official in the union steel ministry as saying that “Officials from the Kerala government met Mr Ram Vilas Paswan union minister for steel, chemicals & fertilizers, requesting him to help in the revival of the unit. Mr Paswan assured that the project with the assistance of SAIL would be implemented in 3 stages.”

The official also said that SAIL has already conducted 2 rounds of discussions with SAIL authorities and the state government in this regard. He added that “As per information, engineers of SAIL have visited the plant and looked into the matter. They have also suggested ways and means for the production to be improved.”

An official from SAIL confirmed the development but said that it was too early to comment on the sort of investments that would be necessary for the revival of Steel Complex Limited. SAIL is also understood to have firmed up plans to set up a rolling mill and is currently working on the project report.

Steel Complex Limited currently produces steel billets, which are used by rolling mills to make iron bars used in construction. Its production capacity has been enhanced to 25,000 tonnes from around 18,000 tonnes earlier.

Orissa sponge makers call for lifting ban on new units

SNS recently reported that Orissa Sponge Iron Manufacturers Association has urged state government to lift ban on setting up new sponge unit as prolonging the ban would be a serious financial bearing on them.

Mr NK Das advisor of Orissa Sponge Iron Manufacturers Association said that “The ban imposed in 2005 by state on the expansion or for new unit on such industry which invested INR 55,000 crore and pays about INR 500 crore as revenue to state may lead the current 95 operating units across the state to red”

Mr Das claimed that the existing 95 sponge manufacturers in the state can produce another 10 million tonnes of steel in next three years in addition to its current production of 7 million tonnes annum.

He added that “The continuance of the ban has no meaning when Centre has now permitted sponge units having the investment of more than INR 100 crore to open up new units or can go for expansion after taking the prior environmental clearance from central ministry of forest and environment.”

Mr Jay Bardhan Mishra the president of Bhubaneswar region of Orissa Sponge Iron Manufacturers Associations also expressed concern over arbitrary closure of sponge units on the issue of environment. He said that “His industries would adopt any technology provided by state pollution control Board to curb pollution by their sponge units.”

TATA Power, REL and GMR bid for Tuas Power in Singapore

It is reported that TATA Power Co, Reliance Energy Limited and GMR Infrastructure have submitted non binding bids for Tuas Power of Singapore.

It is learnt that as many as 15 companies and funds have submitted non binding bids, which also includes international firms like China Light & Power, Hongkong Electric, Japan's Marubeni, Malaysia's YTL Corporation, Singapore's two state-linked conglomerates Keppel Corporation and Sembcorp Industries.

Tuas Power's assets include oil fired plants with a capacity of 1,200 MW as well as 1,470 MW in gas fired electricity plants.

BHEL bags compressor supply order for Kochi refinery

It is reported that Bharat Heavy Electricals Limited has bagged an order worth INR 121 crore from Bharat Petroleum Corporation Limited for supplying compressor packages including a high flow and high pressure called 'BCL 800' compressor for its Kochi Refinery in Ernakulam district of Kerala.

BHEL's scope of work in the contract envisages design, engineering, manufacture and supply of 2 recycle gas compressors with steam turbine drive and motor drive and one net gas compressor with steam turbine drive along with associated auxiliaries. The equipment will be supplied by BHEL's manufacturing plants at Hyderabad and Bhopal within a period of 18 months.

Significantly, this is the first commercial order on BHEL for such type of compressors.

Finolex Cables inks JV with JPS for EHV cable systems

Projects Today reported that Finolex Cables has entered into a JV agreement with J Power Systems Corporation of Japan to offer complete turnkey solutions in extra high voltage cable systems in India and abroad. The JV is expected to be established by January 2008 near Pune for making high voltage power cables up to 500 kV grade.

The new JV called Finolex J Power Systems will be equipped with production facilities such as vertical continuous vulcanising tower to produce high voltage cross linked polyethylene insulated power cables.

The JV will also offer complete services of turnkey installation and connectorisation of the complete circuit along with the supply of power cables and accessories.

Suzlon signs MoU with Punjab for wind power projects

It is reported that Suzlon Gujarat Wind Park Limited has signed a MoU with Punjab Energy Development Agency to set up 100 MW wind energy projects in Punjab with an investment of INR 500 crore.

Mr Atul Shah director of Suzlon Gujarat Wind Park said that "The wind power projects of 50 MW each will be set up at Hoshiarpur and Muktsar districts in Punjab over an area of 250 acre. It is looking to raise funds from global as well as domestic investors to finance the projects.''

He added that it is presently conducting a wind resource assessment study in these areas for the projects and hopes to complete it in the next 9 months.

Meanwhile, Mr Bikram Singh Majithia science, technology & environment minister of Punjab said that the state government has been focusing on tapping renewable energy resources. He added that "We are looking to generate 1,500 MW of power from renewable resources over the next 5 years.''

PEDA had earlier signed a MoU with Germany based company Enecron for wind resource assessment and development of wind power projects in the state.

Orissa government to expedite delayed power projects

SNS reported that, as not a single megawatt of power was added to the existing generation right through the 10th Plan period and the projections of 14% growth in demand, Orissa government has now been prompted to expedite power projects which have been hanging fire for a decade.

As per report, Orissa government has taken up several measures for the purpose. The 2 units at IB Valley thermal power plant will be of a new configuration 600 or 660 MW x 2 while units at Talcher are also being explored by Orissa Power Generation Corporation.

Similarly work in certain projects which are in the pipeline including the mega power plant for which Power Finance Corporation has started preliminary work in Sundergarh, the much delayed hydel power projects at Balimela and other mini hydel projects will be taken up.

Dhamra Port to start operations by 2010 – Report

Exim News reported that Dhamra Port project in Orissa, being developed by TATA Steel and Larsen & Toubro, will become operational by 2010.

Mr Jayanarayana Mishra minister for commerce & transport of Orissa said that 2,770.76 acres, out of the 3,020.31 acres needed for the construction of the port and railways lines had already been acquired.

The assertion about the completion of the project on schedule assumes significance as Greenpeace had raised serious objections to the project on the grounds that it would pose a threat to the local marine flora and fauna.

It is noted that Greenpeace had released a critique that claimed to expose serious and fundamental flaws in the project’s Environment Impact Assessment report on May 30th 2007. The report said that "The port will be located in an ecologically sensitive area, 5 kilometer from the Bhitarkanika sanctuary and less than 15 kilometer from Gahirmatha beaches, famous for Olive Ridley turtles. Given the sensitive nature of the location, it is essential that the EIA be scientifically credible and unbiased."

Bharat Oman Refineries postpones IPO plans

BS reported that Bharat Oman Refineries Limited, a JV between Bharat Petroleum Corporation Limited and Oman Oil Company for implementing the 6 million tonnes per annum Greenfield refinery at Bina in Madhya Pradesh, has decided to defer its proposed initial public offer by a few months and instead it will look for strategic financial investors. The IPO was scheduled for March 2008.

A senior BPCL executive said that “We are looking at other equity funding options. We also want to give Oman Oil some more time to reconsider its decision to exit from the INR 10,400 crore projects.”

BPCL and Oman Oil had contributed INR 75 crore each towards the JV Company’s equity. Oman Oil, however, decided not to pump in any more equity into the 10 year old project, which will be financed in a debt equity ratio of 1.6:1. The debt component of INR 6,400 crore was recently sewed together with a syndicated loan from 14 banks led by the State Bank of India.

During 2007, BPCL invested INR 900 crore in fully convertible debentures issued by Bharat Oman Refineries Limited, thereby taking BPCL’s total equity contribution in Bharat Oman Refineries Limited to INR 975 crore.

Punj Lloyd bags Vadodara Refinery order from IOC

It is reported that Punj Lloyd Limited has won a contract for building a delayed coker unit & coker LPG merox block for the residue up gradation project of Indian Oil Corporation at its Vadodara refinery. The project is to be executed in 28 months and is worth INR 590 crore.

The turnkey contract entails engineering, procurement, construction and commissioning assistance services and was awarded following an international competitive bidding process

The scope of work includes a 3.7 million tonnes per annum delayed coking unit and a 160 trillion tonnes per annum LPG Merox unit.

A Delayed Coking Unit converts low value residual products into lighter products of higher value, with the objective of maximizing the yield of liquid product and minimizing the yields of wet gas and coke. Merox Units are used in oil refineries and natural gas processing plants to remove mercaptans from LPG, propane, butanes, light naphthas, kerosene and jet fuel by converting them to liquid hydrocarbon disulfides.

Punj Lloyd said “This project acquires strategic importance for Punj Lloyd, as many similar Delayed Coking Units are expected to be set up in the major refineries in India. Further Punj Lloyd will gain experience of working with renowned process licensor, Foster Wheeler.”

With this order, Punj Lloyd’s order backlog has gone up to INR 18,484 crore on a consolidated basis.

ONGC discovers more natural gas deposits in Orissa

It is reported that Oil & Natural Gas Commission has found visible presence of natural gas in parts of Kendrapara district of Orissa and a INR 70 crore drilling operation to explore its commercial viability is shortly getting underway.

The INR 70 crore drilling project to scout the natural gas is being taken up towards the end of December 2007 at Balarampur village after scientific studies confirmed visible concentration of methane gas from the samples drawn from this part.

A panel of experts from ONGC had earlier taken a close look at the ground water sources of Mantripada village near Kendrapara and had sent it to Rajmahundry for laboratory test.

Trade unions concerned over Cochin Port E port project

BL reported that major trade unions in the Cochin Port Trust have raised some apprehensions with regard to the implementation of e port project using SAP based enterprise resource planning and the anticipated consequential impact on the workforce.

In a letter sent to the Cochin Port chairman, the unions have sought his intervention and also urged him to convene a meeting with the unions to discuss the pros and cons of the project and the likely impact of job loss on the port’s workforce.

It is understood that the project may reduce manpower in the ministerial, wharf and technical cadres drastically. Besides, it is also understood that the project will cost around INR 15 crore. The unions therefore urged the management to take steps failing which they will be constrained to advise its members not to co operate with the authority for the smooth implementation of the project.

JFE to increase crude steel output by 10% by 2011

It is reported that Japan's 2nd largest steelmaker JFE Steel Corp will increase annual crude steel output by 10% to 33 million tons by fiscal 2011 to meet expanding demand for high quality steel sheets used in automobiles and home appliances.

Mr Hajime Bada president of JFE during a news conference said that JFE will invest a total of JPY 150 billion yen to reinforce facilities at its plants in line with the planned increase in crude steel production.

He said that JFE will build additional facilities for production of semi finished steel products at its plant in Fukuyama, Hiroshima Prefecture, while adding a new facility to its plant in Kawasaki, Kanagawa Prefecture, for extracting impurities from iron.

Vale Xstrata tie up - Xstrata confirms merger speculation

Xstrata plc in response to recent media speculations regarding a potential transaction involving it, announced that “As required by the Panel Executive under Rule 2.2(c) of the Takeover Code, Xstrata confirms that its ongoing interaction with other industry participants includes dialogue with a number of parties covering a range of topics of mutual interest such as industry consolidation.”

The release added that “Xstrata is continually reviewing opportunities within the industry with a view to adding value to its shareholders. None of these very preliminary discussions have resulted in any proposal being made either for or by Xstrata and there can be no certainty that any such proposal will result. Any further announcement will be made if and when required.

Kobe Steel sets up steel wire rod processing venture in China

Kobe Steel, Ltd announces that it has established a JV called Kobe Special Steel Wire Products Co Ltd to process special steel wire rod at Pinghu in Zhejiang Province of China.

The new company, which will start production in April 2009, will have a production capacity of 2,100 tonnes per month.

The JV will turn special steel wire rod into cold heading quality steel wire for use in high strength nuts and bolts, which are critical parts in automobiles. The processed wire will be supplied to Japanese automotive parts manufacturers in China.

Northwest Pipe acquires S Square Tube Products

Northwest Pipe Company announced the acquisition of substantially all the operating assets of S Square Tube Products relating to their perforated square tubing business.

S Square located in Commerce City of Colorado manufactures a variety of products used in the traffic industry. Their primary product is square perforated tubing which is commonly used as a traffic sign post.

Mr Brian W Dunham CEO of Northwest Pipe said ''The S Square acquisition demonstrates our continued commitment to our traffic products business. It continues our strategy of strengthening successful product lines. We believe the traffic products industry presents attractive growth opportunities for our Tubular Products business.''

Northwest Pipe Company manufactures welded steel pipe and other products in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. It is headquartered in Portland, Oregon and has ten manufacturing facilities across the United States and Mexico.

PT Krakatau to ink iron ore supply contract for new plant

Asia Pulse reported that Indonesia’s largest steel maker PT Krakatau Steel hopes to sign a contract that will guarantee the supply of iron ore for a steel factory the state company plans to build in South Kalimantan.

AS per report, the 15 year contract, estimated to be worth USD 202 million, with two producers of iron ore PT Silo and PT Yiwan in South Kalimantan region, is expected to bring the plan closer to reality.

Mr Fazwar Bujang president of PT Krakatau said under the contract PT Silo and PT Yiwan will supply 450,000 tonnes of iron ore to the factory to produce 300,000 tonnes of crude iron a year.

The project, which is expected to be completed in 2009, is to be built by PT Krakatau Steel in cooperation with state owned mining company PT Aneka Tambang.

Iron ore price negotiations – Mr Schorsch sees 30% to 35% hike

Reuters recently reported that the head of ArcelorMittal’s North American operations said that he expects the price of iron ore to rise by 30% to 35% in 2008.

Mr Louis Schorsch, president and chief executive of flat carbon in the Americas told Reuters that “Everything he was seeing indicated they would rise between 30% and 35% in 2008. They will be nearer to 50%than 20%.’

Mr Schorsch also told Reuters that initial orders for hot rolled steel in the 2008 first quarter are very positive. He said “It is hard to not be pretty bullish about some significant improvement in the North American steel market in 2008.”

ArcelorMittal quits Laiwu acquisition deal - Report

Reuters reported that a plan by ArcelorMittal to buy in to Laiwu Steel Corporation has fallen apart because China is wary about foreign investment in its strategic industries.

The report quoted ArcelorMittal as saying that that the parent group of Laiwu, one of China's steel makers, had decided not to extend an agreement to sell 38.41% stake to ArcelorMittal.

Under the agreement, the deadline for the two companies to receive Chinese regulatory approval and close the deal was December 31st 2007.

Argentina steelmakers gas supply issues to go on in 2008

BNamericas reported that Argentina's steel sector may continue to be affected by problems with gas supply in 2008. The report quoted Ms Victoria Santoella an analyst with Santander bank in New York as saying that "The problem might stay similar to what we saw in 2007 but it will depend on the companies since some are more protected than others.”

She explained that steelmaker Siderar has a better chance of gaining access to power but Acindar is more vulnerable to spot prices and has less access to power that's available on the market. She added that however, pending the success of ArcelorMittal's bid to gain 100% control over Acindar, the local company would have more opportunity to invest in energy.

Ms Santoella said that "The company itself already had enough money to be able to invest in that. It hasn't done so but maybe it will change its mind. It obviously wasn't prepared for the shortage."

The Argentine government made the decision to cut gas supply to industry in May after residential demand increased as a result of the onset of cold winter temperatures. According to Argentine economic consultancy IES, The decision caused iron and steel production to drop in January to September 2007 compared to the year ago period.

According to figures from the Latin American Iron and Steel Institute, Steel output in the period dropped 8.1% to 3.9 million tonnes while primary iron production fell by 7.3% to 3.16 million tonnes.

Japan to increase scrap export price to Taiwan

It is reported that Japan’s Tokyo Steel Manufacturing Co Ltd has announced to raise the purchasing price of H2 scrap on December 8th 2007. The price has increased by JPY 500 per tonne to JPY 1,000 per tonne and it was the first time for rise in recent two months.

Affected by this condition, Japanese mills plan to up the H2 scrap export price to Taiwan and the price is expected to reach C&F USD 390 per tonne.

Last month, Taiwan’s mill has imported the H2 scrap from Japan with C&F USD 380 per tonne.

Indonesian tin exports drops in November

Indonesia’s ministry of trade released preliminary figures indicated a drop in tin exports in November 2007.

Mr Hartojo Agus Tjahjono export director for mining products at the ministry told Bloomberg that the volume checked for shipment in November was 8,295 tonnes and the figure for October was 13,509 tonnes.

He added that PT Timah, Indonesia's largest tin producer, shipped 3,993 tonnes of the metal in November, bringing the company's total exports in February through November to 46,559 tonnes.

Since Indonesia’s new export licensing system was introduced in February a cumulative total of 82,970 tonnes has been inspected prior to export.

US steelmakers endorse sectoral approach to addressing climate change

Responding to the International Iron and Steel Institute’s address on climate change delivered during the UNFCCC COP 13 meeting this week in Bali, the American Iron and Steel Institute endorsed the global sectoral approach to address climate change.

They agreed that “This type of global approach is required if a future emissions regulatory regime is to deliver meaningful reductions in greenhouse gas emissions worldwide.”

Mr Andrew G Sharkey III president & CEO of AISI said that “We are a strategic industry, essential to the world’s economic growth and stability and fundamental to all manufacturing. That’s why we see global steel consumption at well over 1 billion tons.”

Mr Sharkey said that “The steel sector is part of a climate change solution. Both globally and in the US America’s steel industry has reduced its energy intensity per ton of steel shipped by 29% since 1990. American steelmakers lead the way in recycling and environmental performance. We are ahead of Kyoto greenhouse emission goals by 240% and we are committed to research necessary to develop innovative technologies to continue this trend.”

He also urged North American governments to support the global sectoral approach to climate change and
1. To work closely with the steel industry on a global approach by adopting a sector specific framework that involves all major steel producing countries;
2. To work toward the adoption of an emissions regulatory regime that supports the expansion of efficient steel companies and the decline or replacement of the least efficient companies;
3. To work with AISI to adopt and support a new methodology that will measure and analyze emissions data from its member companies’ plants in all major steel producing countries;
4. To work with the steel industry to invest in the next generation of breakthrough technology CO2 programs to bring about the next major advancement in steelmaking.

New ITRI study shows tin use in all key sectors remains strong

ITRI released new data on global tin use by market sector in 2006 together with information on use trends from 2004-2007. This unique study, carried out as part of ITRI’s Sustainability Project, is based not only on national and international statistics from official agencies, but information from industry experts, and most significantly, direct survey results from downstream tin users.

Key conclusions to be drawn from the new ITRI study includes
1. Solders were found to account for around 52% of global consumption in 2006, an increase from a 50% share in the previous year
2. Tinplate production also continued to grow in China and remains the largest market for the metal in Europe, while tin chemicals are very important in some large national markets such as the USA and Germany
3. Global tin usage in all main applications other than solders has been roughly stable since 2004 despite recent metal price increases
4. Preliminary data suggests that world tin consumption in 2007 will be almost unchanged from the record level of 362,000 tonnes reached in 2006

This year’s results include data from most of the larger Chinese solder companies, obtained via a specially commissioned survey carried out by Antaike in Beijing. Peter Kettle, Manager of Statistics and Market Studies noted that “The importance of the Asian solder industry in the global picture is a key feature. Asian companies account for almost 80% of tin used in solders, with China alone representing some 55% of world solders business.”

Mr Kay Nimmo manager of environmental affairs at ITRI remarked that “The Sustainability project is seeking to develop a whole range of detailed information on tin and the tin industry itself. We need to involve as many parts of the supply chain as possible in the work and are extremely pleased that industry participation in this years survey has reached the highest level ever, covering over 90 companies, who collectively accounted for over a third of estimated global tin usage in 2006.”

Trade statistics have shown sharp falls in tin imports into some of the major national markets notably the USA and Japan in the first half of this year, although this probably reflects reductions in stocks held by consumers and traders as well as changes in actual tin usage. It is however clear that the rapid growth in tin usage in solders has slowed substantially. Part of this has been due to temporary weakness in the electronics sector in the first half, although business is believed to have picked up in the second half of the year, especially in China.

Japan ferrous scrap export price rises at Kanto Tetsugen's tender

JMB reported that Japanese ferrous scrap export price increased by JPY 1,836 to JPY 37,250 per tonne from Tokyo bay for H2 grade for January shipment from previous month at monthly export tender held by Kanto Tetsugen on Wednesday.

The price increased for the first time in 3 months.

BlueScope increase coated steel production capacity in Indonesia

YIEH reported that Australian based Blue Scope Steel Indonesia expects to complete the expansion project of its coated steel production by the end of 2009.

The coated steel plant, located at Cilegon in Bantan is projected to output 265,000 tonnes of coated steel annually after accomplished.

Currently, production capacity of the plant is about 100,000 tonnes of metallic coated steel and 54,000 tonnes of pre painted steel per year.

Rautaruukki wins gas pipeline order from Gasum

Thomson Financial reported that Rautaruukki has won orders with a combined value of over EUR 10 million to supply high pressure natural gas pipelines made of high strength steel from Gasum, the Finnish natural gas group in which Fortum controls a minority stake.

The main 27 kilometer stretch of pipeline will run from Pajari, in Kymenlaakso to Valkeala and is due to be delivered between June and November next year.

A parallel 43 km transmission pipeline running from Kutinen, near Iittala, to Kulju, in Lempaala, is to be delivered between August 2008 and August 2009.

Fortum owns a 31% stake in Gasum, while Gazprom controls 25%, the Finnish government 24% and EON Ruhrgas 20%.

Empowerment partners sign up with Samancor

Samancor Manganese, owned 60% by BHP Billiton and 40% by Anglo American, announced the successful conclusion of the due diligence process for a transaction with a Black Economic Empowerment company, Ntsimbintle Mining Limited, relating to its 100% owned Manganese mines Wessels and Mamatwan and associated prospecting rights in the Hotazel area in the Northern Cape.

In terms of the transaction Samancor will vend its Hotazel manganese mines and prospecting rights into Hotazel Manganese Mines Limited, a new vehicle created for the purpose of effecting the transaction. Ntsimbintle will vend in portions of its prospecting rights contiguous to Samancor's Mamatwan and Wessels mines in exchange for a 9% interest in HMM. The transaction is subject to the approval of the Department of Minerals and Energy for the transfer of Ntsimbintle's prospecting rights and Samancor's mining and prospecting rights to HMM.

Mr Peter Beaven president Manganese of BHP Billiton said that "HMM mines are amongst the world's best and are set on a strong growth path with strongly enhanced mine lives as a result of this transaction. This important transaction is the first step in our strategy to transfer 26% of our HMM business to BEE parties and we welcome the contribution that Ntsimbintle will undoubtedly make to the success of the growth strategy we have set for HMM. The transaction provides Ntsimbintle immediate ownership of strongly profitable assets and their associated cash flow whilst Samancor gains access to further resources and reserves, some of which can be immediately accessed from existing Samancor mine operations. This is undoubtedly the most sensible commercial arrangement for the development of the two sets of rights."

Samancor Manganese produces manganese ore from two mines at Hotazel in the Northern Cape Province, it produces manganese alloy at Metalloys a plant near Vereeniging in Gauteng and has a 51% interest in Manganese Metal Company, a producer of electrolytic manganese metal located at Nelspruit in Mpumalanga.

Voestalpine extends share repurchase program

Austrian steel conglomerate voestalpine AG announced that its management board decided to extend the company's existing share repurchase program until December 31st 2008.

voestalpine in a release said that the share repurchases approved by the management board will commence on January 2. It added that the share repurchase program, which started in Oct, 2006, and had originally been scheduled to run until the end of this year, is limited to 10% of the company's share capital.

Mr Falaknaz becomes chairman of Boulder Steel

Boulder Steel Limited announced that its board of directors have elected Mr Abdulrahman Falaknaz as chairman of the Company and that welcomes Mr Falaknaz’s decision to assume a more pro active and visible leadership and an enhanced responsibility for Boulder Steel.

Consequently, Mr Helmut Pekarek has tendered his resignation as Chairman and Non Executive Director. The Board thanks Mr Pekarek for his contribution to the Company’s achievements over the past three and a half years.

Mr Falaknaz’s appointment and Mr Pekarek’s resignation will take effect on January 1st 2008 to allow for an appropriate transition.

Vietnam’s automobile sales hit 11 month record

Nhan Dan reported that sale of Viet Nam Automobile Manufacturers’ Association members reached 10,110 units in November 2007, up by 167% YoY and the highest record so far this year.

Viet Nam Automobile Manufacturers said its members have sold 68,388 units during the January to November 2007 up by 97%. It added that Commercial vehicles accounted for 5,452 units up by 235% YoY, while passenger cars made up 2,177 units up by 198% YoY.

In November alone, Toyota Viet Nam sold 2,190 units, followed by Truong Hai Automobile with 1,390 units and the Viet Nam Motor Industry Corporation with 1,335 units. Meanwhile, Viet Nam Daewoo Motors ranked fourth with 1,016 units. November became the first month that Vidamco’s sales volume hit the four digit number.

According to initial statistics, manufacturers still have around 10,000 orders. It is forecast that the fever for automobiles still continues and the demand will especially increase when the Tet festival is near.

Mr Tommi Matomäki to head Ruukki Engineering division

Rautaruukki announced that appointment of Mr Tommi Matomäki as President of Ruukki Engineering division and a member of the Corporate Management Board with effect from 1st January 2008. He will report to Mr Sakari Tamminen president & CEO of Rautaruukki.

Mr Matomäki joins Rautaruukki from Technip Offshore Finland Oy, which makes hulls for oil drilling platforms, where he has been Managing Director since 2003. Before his present position, Mr Matomäki held various posts in engineering management at Metso Works Oy and Pori Works Oy.

Mr Sakari Tamminen president & CEO of Rautaruukki Corporation said that “Ruukki Engineering division is growing strongly as a result of new customers and geographical expansion and the company has significantly strengthened its position as a supplier of systems and components to the engineering industry. Tommi Matomäki brings with him a broad range of expertise in engineering management. He also has previous experience of Ruukki’s customer sectors from the offshore and wind energy industries. Matomäki’s experience of international business provides an excellent boost for our strategy of becoming one of Europe’s leading solutions suppliers to the engineering industry.”

South African government launches coal gas JV

It is reported that South Africa's government launched a JV with NT Energy UK and Bataung Strategic Investments to extract coal bed methane, in which these partners would invest USD 10 billion over three years.

The government's Central Energy Fund and NT Energy Africa made up of South African company Bataung and NT Energy UK had formed a venture called GasCo. The venture will explore 250,000 hectares in South Africa's Limpopo, Free State and Mpumalanga provinces for reserves.

Mr Kinesh Pather managing director of Bataung said that "The development of sustainable sources of alternative energy has become a strategic priority for South Africa, and coal bed methane and the conversion of gas to liquid fuels provide a real, clean and long term alternative to the current energy mix.”

He added that the cleaner alternative energy would reduce reliance on imported energy, cut energy costs, boost employment and was environmentally friendly.

Africa's biggest economy has suffered increasing power black outs in recent years as ageing electricity infrastructure fails to keep up with rapid economic growth. Methane gas found in coal seams is sold and used in a similar way to natural gas. The project aims to secure energy for South Africa's booming economy and increase the use of cleaner fuels.

Ezz Steel’s domestic sales up by 23% YoY in 9 moths

Arab Steel reported that Ezz Steel has increased their sales of long products to the domestic market to 2.154 million tonnes during January to September 2007 period up by 23% YoY as against 1.745 million tonnes during January to September 2006 period. Its total sales of flat products amounted to 1.236 million tonnes down by 6% YoY as against 1.308 million tonnes in January to September 2006 period.

Ezz Steel's total production during January to September 2007 period amounted to 3.609 million tonnes of both long and flat products. Flat products account for 35% of the total production while the remaining are long products.

Its exports of long products have declined by 48% YoY to 258,000 tonnes during January to September 2007 period as against 492,000 tonnes during January to September 2006 period.

Also the export sales of flat products account for 21% and of long products 13%. 80% of exports of long products go to the Middle East and North Africa countries and 20% to the countries of Europe, while 76% of exports of flat products go to the EU countries and 22% to the Middle East and North Africa countries.

Pakistan and Iran to hold IPI meeting

Daily Times reported that, after failing to give final touches to the draft of gas sales purchase agreement on the Iran Pakistan India gas pipeline, Pakistan and Iran will hold another meeting on the project in Tehran next week.

Officials in the Pakistan’s petroleum ministry said that during the upcoming visit to Iran, Mr Farrukh Qayyum secretary at ministry of petroleum & natural resources would lead the Pakistani delegation and the Iranian side would be led by Dr Ghanimi Farud.

Pakistani officials said that Pakistan and Iran failed to give final touches to the GSPA on IPI due to absence of Iranian legal expert Mr M Naseeri who could not join the talks held in Islamabad because he had been ill. They added that “We waited for his arrival here in Islamabad for 2 days to join talks but he could not reach and it was also proposed to extend the talks till December 12th 2007 but later it was decided to hold another meeting of JWG in Tehran next week.”

The official also noted that Iran and Pakistan have agreed in principle on gas sale purchase agreement and only technical and legal issues are being resolved. Both countries have also agreed in principal that gas price would be tied to the Japanese crude cocktail and Japan liquefied natural gas. The gas price formula also contains price revision arrangement. Iran is said to start supplying gas to Pakistan by the year 2011.

It has also been agreed that Pakistan and Iran would build the pipeline in their respective territory. Iran will build pipeline to the entry point on Pakistan’s border and from there Pakistan would build pipeline in its territory. The proposed 2,670 kilometer pipeline project has about 1,115 kilometer of its length in Iran, 705 kilometer in Pakistan and 850 kilometer in India. Iran has already completed the one third of the work on the project in its portion.

Stroytransgaz completes construction of gas pipeline in Algeria

It is reported that PJSC Stroytransgaz has completed construction, installation works and hydraulic testing of 273 kilometer long, 42 inches diameter Sougueur Hadjret Ennouss gas pipeline in Algeria. Natural gas through the gas pipeline will feed the 1200 MW electric power station in the city of Cherchel in Algeria.

The contract for construction of the pipeline on EPC conditions between the Algerian National Company Sonatrach and PJSC Stroytransgaz was signed in July of 2005. At present pre commissioning works are being carried out prior to preparing to filling of the pipeline with gas.

According to the contract, PJSC Stroytransgaz carried out surveying works and detailed design of the gas pipeline, provided delivery of pipes, plant, construction of the gas pipeline, departure and arrival terminals, including natural gas pressure regulating and metering systems, 12 linear valve stations, 3 condensate collecting units, a hook up unit to a compressor station, 19 tie ins to the gas pipeline, as well as systems of SCADA, telecommunications, gas leak detection, fire fighting, cathodic protection, automated control and instrumentation.

Stroytransgaz is an engineering and construction company providing all kinds of services in regard to the implementation of major projects from the concept development to operation, in oil and gas and other industries. At present Stroytransgaz is implementing one more project in Algeria namely reconstruction of 150 kilometer long, 40 inches diameter Ouled Djelal Skikda gas pipeline.

Dubai to add 5th and 6th lines to metro network

Emirates Business reported that Roads & Transports Agency will add a 5th and 6th line to Dubai Metro, to complement the Red and Green lines.

Mr Abdul Majid Al Khaja CEO of Rail Agency of the Roads & Transport Authority said that "We will be announcing the 5th and 6th lines in 2008 once preliminary studies on the routing have been finalized."

Red and Green are due for completion in 2009 and 2010 respectively, at a cost of AED 15 billon each. Purple and Blue lines are set to be built by 2012 and 2014 and will run the length of Emirates Road and to Al Maktoum Airport.

The Red line, the longer of the 2 lines in the first phase, is almost 50% complete, nearly 20% of the 22 kilometer green line has been built, while construction of the 49 kilometer purple line will commence in 2009. Recruitment for staff to operate the system will begin in 2008 under the supervision of UK based international rail management firm Serco, which earlier signed a 5 year AED 3 billion deal with the RTA.

Mr Al Khaja said that Serco will run the operations control centre, provide train attendants and all staff at the stations in addition to maintaining rolling stock, track and station facilities. He added that around 10 monorail lines are also being planned by major developers in Dubai to link the emirate's communities. 21 metro stations including Burj Dubai and Mall of the Emirates will be financed by the owners of the adjacent developments.

MEA will need USD 18 billion for pipelines in 5 years

Gulf News quoted Mr Abdolhossein Mirza oil & gas affairs minister of Bahrain as saying that the Middle East will need to invest USD 18 billion for the establishment of pipelines and compression or pumping stations over the next 5 years.

Mr Mirza while speaking at the Oil & Gas Maintenance Technology Conference and Exhibition said that the renewal of oil and gas pipelines in the region will be a focal point for the next few years in a bid to reduce pipeline casualty and loss of integrity. He added that the logistics of maintaining integrity are extremely needed as the Middle East has 60% of the world's reserves of oil and 40% of the world's gas reserves.

Turkish domestic auto sales down by 9.5% YoY in 11 months

It is reported that automobile sales in Turkish domestic market has decreased by 9.5% YoY in the January to November 2007 period as compared to January to November 2006 period, whereas total auto exports soared by 36% YoY.

According to statistics released by the Automotive Manufacturers' Association, producers in Turkey sold 534,274 vehicles in total in the domestic market during January to November 2007 period down by 9.5% YoY as against production in January to November 2006 period.

The number of cars sold was 295,720. In the given period, imported cars took 67% of the market.

The industry increased its total exports by 36% to USD 17.4 billion. Turkey sold 747,334 land vehicles to customers around the world. Out of the total, 460,180 are automobiles, 287,154 are commercial vehicles and 8,702 are tractors.

Russia and Iran ink economic cooperation pact

It is reported that heads of the Russian Iranian Intergovernmental Commission Mr Sergei Kiriyenko and Mr Manuchehr Motaki have signed a memorandum on trade, economic, industrial, scientific and technical cooperation in Moscow.

Mr Kiriyenko said that “Bilateral trade more than doubled to USD 2.2 billion in the first nine months of this year ad the record growth had resulted from cooperation agreements signed at the recent summits.”

They also signed a protocol of the seventh meeting of the commission. The commission will have its eighth meeting in Iran in 2008.

REL to invest USD 24 billion in MEA petrochemical projects

Gulf News reported that Reliance Industries is planning to spend USD 24 billion over the next 10 years in setting up petrochemicals projects in the Middle East.

Mr Mukesh Ambani CMD of REL said that "We plan to set up a number of petrochemical plants in the next decade, with each costing USD 4 to USD 6 billion.''

Mr Ambani said that building USD 5 billion petrochemicals plants in the Middle East will be the best way for Reliance to meet India's quadrupling demand of chemicals in the next 10 years. He added that it wants to tap the growing demand for chemicals in Asia, especially in China and India.

He further added that "Dubai will be the gateway to our future investment in this part of the world and beyond. We will increase our headcount in Dubai, which will be the nerve centre of our international operations.''

Rising construction costs may delays projects in Gulf - Report

Projecting a surge in petrochemicals exports from the Gulf to more than 50 million tonnes by 2008, Gulf Petrochemicals & Chemicals Association has warned that construction cost bubble in the Gulf region would lead to some project delays and cancellations.

Mr Mohamed Al Mady chairman of Gulf Petrochemicals & Chemicals Association, who is also VC & CEO of Saudi Basic Industries Corporation, said that it makes it difficult to achieve acceptable financial targets when capital costs have raised so much.

He added that “This, I believe is of great concern as capital costs for new projects have gone through the roof. I believe this will lead to some project delays and probably some cancellations over the next few years. In time, this bubble will deflate, as it is not sustainable at present levels.”

Mr Mady said that “I believe our industry is approaching a period of overbuilding that is accompanied by weaker markets. Simultaneously, we may see slowing of the global economic growth that is driven by a slowdown in the GDP growth in the US. Our industry has experienced these periods of over capacity and slow growth numerous times in the past and has worked through them successfully and emerged stronger. I am certain we will do so once more. One of the greatest challenges facing the industry is the environmental and health sector of our society. The regulatory environment for the chemical industry is growing more intense."

Fitch assigns ‘BB’ IDR rating for Turkey

Fitch Ratings has upgraded Turkey's long term local currency issuer default ratings to 'BB' with a stable outlook from 'BB-'. Fitch forecasts Turkey's real gross domestic product growth at 4.3% in 2007, while GDP per capita is expected to reach USD 6,615 in 2007, double the 'BB' range median.

China to add 64 million tonnes crude steel production in 2007

China’s National Bureau of Statistics announced that China's November productions of pig iron, crude steel and finished steel products hit 39.91 million tonnes, 39.69 million tonnes and 47.68 million tonnes respectively up by 10.4%YoY, 4.3%YoY and 12.7%YoY from a year earlier.

(In million tonnes)

As per statistics of IISI, China’s crude steel production in 2006 was 423.188 million tonnes. By assuming China’s December production similar to November levels, the estimated production of crude steel of China would be approximately 487.52 million tonnes, which means an addition of 64.332 million tonnes during 2007 or YoY growth of about 16%

Incidentally, Mr Luo Bingsheng VC of the China Iron and Steel Association during the 7th China International Steel & Raw Materials Conference 2007 at Dalian in October 2007 had predicted that that steel production would cross 480 million tonnes in 2007.

ArcelorMittal to increase stake in China Oriental

ArcelorMittal announced that it had entered into a shareholders' agreement with the controlling shareholders of China Oriental Group Company Limited, which will enable ArcelorMittal to eventually raise its equity stake in China Oriental Group Company Limited to 73.13%.

The Shareholders' Agreement will enable ArcelorMittal to become the majority shareholder of China Oriental by purchasing the Controlling Shareholders' existing 45% stake in China Oriental Group Company Limited over an agreed period of time. This transaction is subject to anti trust clearance by the Ministry of Commerce and the State Administration for Industry and Commerce of the PRC.

In line with the Takeovers Code, ArcelorMittal will make a general offer for China Oriental shares not owned by it and the Controlling Shareholders at a share offer price of HKD 6.12, which represents the price at which ArcelorMittal acquired a 28% stake in China Oriental from Ms Chen Ningning in November 2007 plus an amount of between HKD 0.235 and HKD 0.706 per share, being the cash consideration for a put option granted by ArcelorMittal to the Controlling Shareholders for sale of China Oriental shares, which was not granted to other shareholders. The maximum consideration payable by ArcelorMittal will be approximately HKD 6 billion, assuming full acceptance of the offer, and the exercise of all outstanding share options. ArcelorMittal intends to maintain China Oriental's listing status after the close of the offer.

Under that agreement, ArcelorMittal will share technologies, technical expertise and know how with the aim of transforming China Oriental Group Company into a leading producer of heavy sections in the People's Republic of China. ArcelorMittal will also assist the Group in sourcing iron ore and coal.

Mr LN Mittal president & CEO of ArcelorMittal said "Strengthening our position in the fast growing PRC market is one of the important elements in ArcelorMittal's strategy. The purchase of a 28% stake in China Oriental earlier and the signing of the Shareholders' Agreement allow ArcelorMittal to be better positioned to participate in the attractive growth of the PRC construction steel market and to develop China Oriental into a leading producer of heavy sections, focusing on leadership, quality and sustainability. "

Mr Mittal added "Part of ArcelorMittal's growth over the years has been through strategic acquisitions and subsequently creating value through active management of the companies acquired. I am confident that our agreements will be further examples of how ArcelorMittal adds value through the transfer of technology and technical know how, training, financial management, mergers and acquisitions, supply chain management and marketing as well as sustainable and resource efficient production."

Mr Han Jingyuan chairman & CEO of China Oriental said "We are delighted to have the world's leading steel company as our strategic partner. We look forward to working with ArcelorMittal closely to further enhance the operations of our company.”

ArcelorMittal's existing investments in China's steel industry include an about 29% interest in Hunan Valin Steel Tube and Wire Company Limited and a 12% interest in the Baosteel Nippon Steel ArcelorMittal Automotive Sheet joint Venture.

EU to impose 8.2% AD duty on Chinese silicomanganese

It is reported that EU has decided to impose an 8.2% anti dumping duty on China origin silicomanganese from September 2008 with duration of five years.

However, some traders expressed optimism by saying that "This is only a primary decision and will be implemented nine months later, but nobody knows whether things will change after nine months. As manganese ore price will climb notably in the coming months and China may pull up export tariff on silicomanganese from January 2008.”

Currently export price for China origin silicomanganese mainly stands at USD 1400 per tonne to USD 1500 per tonne whilst domestic price stays at CNY 9400 per tonne to CNY 9700 per tonne both up by 7% compared with that in October 2007.

WISCO to set up Indian operations

It is reported that Wuhan Iron and Steel Corporation has received approval from Chinese ministry of commerce to invest USD 1.5 million to set up Wusteel Trade Company at Bombay in India.

The new company is expected to put into operation in 2008 Spring Festival.

As per report, at present, WISCO imports 700,000 tonnes ore from India every year and Wugang branded products in India have quite market.

Tongyu Steel and Hanfeng to set up pipe JV

China’s Jiangsu Tongyu Steel Pipe Group has announced to build a new joint venture with Hanfeng Group. The mill is expected to be commissioned in mid 2009.

The new plant will produce longitudinal welded pipe, and it is capable of producing 200,000 tons per year. The pipe will have a maximum outside diameter of 1,422 mm.

Hanfeng Group is a Chinese fertilizer company listed on the Toronto Sock Exchange in Canada.

Timken establishes bearing JV with Xiangtan Electric

It is reported that Timken Co has established a JV with Xiangtan Electric Manufacturing Co Ltd a Chinese heavy equipment manufacturer to make ultra large bore bearings for wind turbines in China.

Timken said the venture will build a USD 38 million bearing manufacturing facility in Xiangtan located in China's Hunan province. It said construction of the facility is scheduled to begin in 2008.

POSCO to expand EGI market in China

It is reported that POSCO plans to further explore Chinese EGI market as its No 2 EGI line will go on stream in end 2008.

In order to expand Chinese market, POSCO is strengthening its cooperation with local enterprises and is going to apply for certification for quality and environment protection. Market analyst point out that South Korean home market is saturated and they have to improve export volume.

It is learnt that the total imports of Japanese EGI into China is 1,188,000 tonnes which compares with 449,000 tonnes for South Korea origin.

TISCO dismantles 2 old coke ovens

It is reported that two 4.3 meter coke ovens were dismantled recently in Taiyuan Iron & Steel Company Ltd.

The two JN43-80 65-chamber coke ovens had annual capacity of 450,000 tonnes each. One was put into operation on May 23rd 1993 and the other began to serve on October 3rd 1985. By the end of November 2007, they totally produced 15.55 million tonnes of coke and 6.6 billion cubic meters of gas.

It is said the two will be replaced by two 7.63 meter coke ovens, which are introduced from Germany. The new ones are equipped with the most advanced technologies and meet the requirements for environment protections.

TISCO has also dismantled six 20 tonnes electric furnaces and two 330 cubic meter small blast furnaces on August 16th 2007 and September 7th 2007 respectively.

Baosteel and China Erzhong ink cooperation pact

It is reported that Baosteel has come to a strategic agreement with China Erzhong on long term cooperation.

As per report their cooperation would concentrate on home supply of equipment, spare parts and large sized rollers by China Erzhong and Baosteel's long term supply of pig iron, nuclear plant plate and pressure container plate.

They would also pull together to research on domestic production of such new material as pressure container plate and supportive roller for heavy plate line.

At the same time, China Erzhong has won the contract for supplying principal equipment to Liuzhou Steel for perfecting its hot rolled steel coil line. Erzhong is responsible for the production of all mechanical facilities, part of wiring and hydro equipments which all worth CNY 550 million and delivery would be end 2008.

Chinese tin price slips in November 2007

It is reported that Chinese tin price dipped slightly in November 2007. The average quotation of tin was CNY 147,455 per tonne in China tin market in November 2007 down by 1.2% on a monthly basis.

It went around CNY 147,000 per tonne at most of the time in the month and slipped to CNY 144,000 per tonne to CNY 145,000 per tonne by the end of November comparing with CNY 147,000 per tonne to CNY 150,000 per tonne by the end of October 2007. Currently it stays at CNY 144,000 per tonne to CNY 146,000 per tonne.

As per report, tin import increased significantly in recent months. As a result, the tight tin supply in domestic market was eased. Meanwhile, Domestic tin price is still much higher than that in overseas market.

Hebei based steel mills' 10 months revenue up by 42.38%YoY

It is reported that steel industry in Hebei province has achieved 42.38%YoY growth on main operating revenue of CNY 445.4 billion in January to October 2007. Pre profit grows 35.28%YoY from same time of last year to CNY 42.4 billion while profit rises 33.27% to CNY 25.9 billion.

However, FAI in steel sector has dipped by 0.4% from January to October of 2006 to CNY 27.4 billion and the decline has continued for eight straight months.

Mr Song Jijun vice chairman of Hebei Metallurgy & Metals Association said that strong domestic steel demand has driven up steel prices quickly, improving the financial performance of most steel mills in terms of main operating revenue, pre-tax profit and profit.

He said that escalating raw materials cost has continued to squeeze the profit margin of local steel mills since June 2007. The sales profit margin has dropped to 5.81% in October 2007 down from the peak level of 6.29% in May 2007.

Shandong iron ore import hit 94.77 million tonnes in 11 months

It is reported that iron ore imports through Shandong Port totaled 94.77 million tonnes in the first eleven months of 2007 with a total value of USD 8.11 billion up by 1.7%YoY and 36.8%YoY respectively from same time of last year.

The average import prices also increased by 34.5%YoY to USD 85.6 per tonne. As per report the import price has peaked at USD 120.5 per tonne in November 2007 up by 74.6% from USD 69 per tonne in January 2007.

China opens largest free trade harbor area in Northern port city

It is reported that China's largest free trade harbor area with the most preferential tax treatments started operation in the northern port city of Tianjin recently.

Mr LiKenong deputy chief of China Customs said at the inauguration ceremony that it is designated as the pilot among others to adopt reforms and renovations to promote the opening up drive. He said the area is set to enjoy the most favorable policies in taxation and foreign exchange polices and offers comprehensive services in international shipping, purchase, trade, processing and logistics.

The first phase of the harbor area, which currently covers foursquare kilometers and includes warehouses, container terminals, processing and logistics zones involved CNY6.6 billion in corporate investment.

The second phase of another 6 square kilometer area which is still under construction is scheduled to become operational by 2010, realizing designed capacity of handling 4 million containers per year.

Evraz comments on press speculation

Evraz Group SA has noted the press speculation following its announcement dated December 11th 2007 on acquisition by Evraz of majority stakes in selected production assets in Ukraine and announces the following

It said that “At present these assets are temporarily owned by Lanebrook Limited, Evraz’s majority shareholder, which is acting as an intermediary to facilitate the transaction with the ultimate sellers of the assets. This Evraz’s acquisition, having certain related party features, has the oversight of Evraz’s independent directors. Independent directors will be presented with a fairness opinion delivered by a reputable international appraisers’ organization. On receiving such opinion independent directors will decide on issuance of new shares in favor of Lanebrook.”

The release added that “The total consideration to be paid by Evraz is expected to be in the range of USD 2 billion to USD 2.2 billion including approximately USD 1 billion in cash. Evraz’s Board of Directors will approve the final price and the structure of the transaction in full compliance with corporate governance rules on transactions with related parties.”

Metinvest announces USD 7.5 billion CAPEX

Ukrainian Journal Staff reported that Metinvest Holding Ltd, a managing company belonging to the Metinvest Group, is planning to spend USD 7.5 billion on the renovation and modernization of Azovstal steel mill and Yenakiyeve steel plant by 2017.

Mr Ihor Korytko director of the company's steel and rolled stock division said that the plan for the group's strategic development until 2017 was passed by the supervisory council of Metinvest Holding Ltd in October 2007.

South Korea to increase slab imports from Russia in 2008

It is reported that South Korea is set to import more slab and billet from Russia in 2008 due to rise in export duty rate for Chinese semis exports.

As per report, the total imports of Russian slab and billet for the first ten months of 2007 reached 845,000 tonnes with September witnessing record high tonnage at 179,000 tonnes.

Hysco and Dongkuk are two major buyers of Russian slab and billet. Hysco has finished its semis import contract for the first quarter of 2008. A Hysco official said "We are going to buy more semis from Russia as there is risk of further rise in export tariff for Chinese products and Russia's competency in both price and amount."

EBRD to invest about USD 1 billion in Kazakhstan during 2008

RIA Novosti cited Mr Nursultan Nazarbayev president of Kazakh as saying that the European Bank for Reconstruction and Development will invest around USD 1 billion in Kazakhstan in 2008.

Mr Nazarbayev said that "The EBRD has invested USD 3.3 billion in Kazakhstan in the past few years. We are currently discussing support to small and medium businesses and infrastructure projects for which the bank will provide around USD 1 billion in financing next year."

He added that "In the past five years the country has been seeing 10% annual economic growth. The high rate of growth allows us to plan a doubling of GDP in 2008 and a tripling by 2015."

The Kazakh government has forecast that national economic growth will decline to 5% to 7% in 2008 due to instability on global financial markets.

EBRD has financed over 80 investment projects worth USD 3.3 billion in Kazakhstan since 1993. More than 70% of the bank's investment for the Central Asian country went to private companies, the remainder being loans for the government and state owned corporations. The bank mostly invests in Kazakh banks and infrastructure projects.

NLMK meets OHSAS 18001 standards

NLMK announced that it has successfully passed a certification audit to comply with the international standard OHSAS 18001:2007 "Occupational Health and Safety Management Systems”.

The audit, which was performed by Bureau Veritas Certification, the international certification body, included benchmarking NLMK’s current management system against international best practice of establishing and operating occupational health and safety management systems. The auditors have confirmed that the OHS management system at NLMK's main production site in Lipetsk meets the relevant international standard.

The release added that “NLMK seeks to continuously improve its labor protection performance by enhancing the safety of its operations and encouraging its employees to comply with OHS requirements. All accident prevention measures are in line with the Regulations on Occupational Health and Safety as well as other applicable Russian regulations. The accident rate at NLMK has been reduced by 15% over the last five years.”

The international standard OHSAS 18001 is designed to establish OHS management systems in a company as a constituent part of the general management system. It aims to mitigate occupational risks for the employees.

Russia and Iran to work together in energy segment

RIA Novosti reported that Russia's Gazprom and Iran are interested in the further development of energy cooperation.

Gazprom in a statement said that Mr Alexei Miller CEO of Gazprom and Mr Hossein Noghrehkar Shirazi Deputy Oil Minister of Iran held a working meeting recently.

The statement said “The parties identified oil and gas deposit exploration and development in particular the further development of the energy rich Southern Pars deposit in Iran as priority areas for cooperation. Both sides also discussed joint efforts in natural gas transportation, processing, use and marketing.”

Iran's proven gas reserves total more than 28 trillion cubic meters and it produced 105 billion cubic meters of gas in 2006.

Hungary to join South Stream gas pipeline project

RIA Novosti cited Mr Viktor Zubkov PM of Russia, in a meeting with Mr Ferenc Gyurcsany Hungarian counterpart in Budapest recently, as saying that Hungary will join the South Stream gas pipeline project. Mr Gyurcsany added that "The Russian premier gave us a resolute and unambiguous promise we agreed earlier that that South Stream will involve Hungary.

He said his republic was ranked among countries largely dependent on Russian energy supplies. He also said that though Hungary could see that Russia was a reliable partner and energy supplier, the availability of only one supplier or one gas pipeline posed risks.”

The Hungarian official said referring to two options of finding another supplier or building a new gas pipeline He said "This is why our negotiations have long been aimed at alleviating such risks. Hungary is also negotiating involvement in the construction of the Nabucco gas pipeline project which will not be entirely fed by Russian gas.”

The South Stream pipeline is set to cover over 900 kilometers under the Black Sea from Russia to Bulgaria and supply 30 billion cubic meters of gas annually. Possible routes for the land section of the pipeline across Europe to Austria and Italy are still being discussed.

HydroOGK to invest heavily in small hydroelectric plants in 2008

Interfax cited Mr Vasily Zubakin Deputy CEO of HydroOGK, while speaking at a conference on hydroelectric power in St Petersburg recently, as saying that HydroOGK plans to invest RUB 1.5 billion in 2008 to build small hydroelectric stations.

Mr Zubakin said the design of the small hydroelectric stations must employ the latest technologies and technological solutions in order to provide for rapid construction. He said "We should add small hydroelectric stations of 50MW, 80 MW and 100 MW a year."

LUKoil plans 5.5% growth in hydrocarbons mining in 2008

RIA Novosti cited Mr Leonid Fedun VP of LUKoil as saying that it plans to raise its US GAAP hydrocarbons mining by 5.5% in 2008.

Mr Leonid Fedun said the long term development strategy of the company an annual increase of 5% will not be implemented as some factors affecting the plan's implementation had spun out of control.

The new estimates for the company, which has 1.3% of global oil reserves and performs 2.3% of global oil mining, set a 2.5% increase in mining compared to an earlier 4% target for 2007.

In 2006, the LUKoil group of companies saw a 12.2% growth in hydrocarbons mining.

Norilsk Nickel appoints Mr Grachov as new director for regional program

It is reported that Mr Andrey Grachov has assumed his appointment as director of the department for regional program of OJSC MMC Norilsk Nickel on December 10th 2007.

The department deals with the development of cooperation with regions as part of state and private partnership.

Mr Andrey Grachov graduated from the special department of the Military Institute of Foreign Languages. He worked for the Black Sea fleet of Russia from 1981 to 1993 and worked as a press secretary of Commander in Chief of the Black Sea Fleet from 1993 to 2000. He became the director of the department for public relations of OJSC MMC Norilsk Nickel in 2000 and Deputy Director on regional projects and public relations of the Polar Division of the company. In 2006 he was appointed councilor of Deputy Director General of MMC Norilsk Nickel.