December, 02 2007
SAIL’s expansion plans for RSP
Dr Akhilesh Das union minister of state for steel informed the parliament that Steel Authority of India Limited’s board has recently approved expansion of Rourkela Steel Plant.
The proposed expansion plan of RSP envisages increase of hot metal production from the current 2.12 million tonnes per annum to 4.5 million tonnes per annum at an indicative cost of INR 7,668 crore.
NMDC to reach 50 million tonnes in 5 years
Mr Rana Som CMD of National Minerals Development Corporation said that it will invest INR 18000 crore in the next 5 years to increase its capacity to 50 million tonnes.
He announced that “NMDC will focus on investigation and exploration and will apply for prospective license for increasing its capacity. It would like to diversify and increase its capacity in minerals other than iron ore while retaining its leadership in iron ore mining as well.”
Meanwhile, Mr Ram Vilas Paswan union minister for steel, chemicals and fertilizers said that MNDC should immerge as a global mining company with a futuristic vision. He added that it should adopt the latest technology with a new vision.
Mr Paswan said that 80% of the iron ore available in India is low grade and the challenge for the industry is to convert this low grade ore into high grade by inducting new technology. He also lauded the performance of MNDC saying that it spends 5% of its net profit on various corporate social responsibility activities.
NMDC earned a net profit of INR 2300 crore in 2006 and is targeting INR 3005 crore in 2007.
Moody's downgraded TATA Steel rating to ‘Ba1’
It is reported that global credit rating agency Moody's has downgraded TATA Steel Limited's corporate family rating from 'Baa2' to 'Ba1' after the inclusion of the Corus Group on TATA Group's balance sheet.
Moody's warned that rating may be downgraded further if TATA Steel experiences delays or cost over runs in execution of various expansion projects, fall in steel prices or failure in integrating the two businesses and realizing synergies.
Moody's said that it expects TATA Steel's ambitious capacity expansion plan to lead to higher project execution risk over several years and materially elevate financial leverage, but it added that current high leverage limits the company's financial strength and flexibility.
Earlier, Fitch Ratings had assigned a long term foreign currency issuer default rating of 'BBB-' to TATA Steel Limited with a stable outlook.
SAIL board approves starting of production facilities at Kulti
Dr Akhilesh Das union minister of state for steel said that Steel Authority of India Limited board has accorded in principle approval for starting production facilities like non ferrous foundry, steel foundry and required supporting shops like pattern shop and machine shop at Kulti in West Bengal.
He informed that the future products of this plant would be steel castings, non ferrous castings and engineering spares and that the capital cost has been estimated as at around INR 8.88 crore.
SAIL proposes to use its Centre for Engineering & Technology to prepare comprehensive feasibility report which includes technology up gradation or diversification for the products envisaged.
15 injured in clash over POSCO issue
SNS reported that at least 15 persons were injured in a violent clash between anti and pro POSCO activists at Balitutha area which turned into a battlefield with bombs being hurled and armed groups attacking each other today.
The incident took place when a delegation led by Mr Kesab Rout went to the site to negotiate and find an amicable settlement to the entire issue with the POSCO Pratirodh Sangram Samiti leaders.
There are conflicting versions as to what triggered the violence. Those who are loosely referred to as the pro project group insists that the anti project faction misbehaved with them when they went for the talks today and this resulted in the violence. The anti project faction however says that the talks failed when the rivals persisted with the demand that they should stop opposing the proposed POSCO steel plant and lift the road blockade at Balitutha bridge.
Heavy brick batting followed and a few bombs were hurled as both sides went on the attack. Apparently the pro project faction wanted to forcibly evict the protestors from the bridge. Unconfirmed sources said at least four women were injured in the clash. After the incident, all business establishments at Balitutha bazaar were closed and local people fled the area.
SAIL’s expansion plans to create job opportunities for technical persons
Dr Akhilesh Das union minister of state for steel informed the parliament that Steel Authority of India Limited’s expansion plans for its Rourkela Steel Plant would give a boost to the employment opportunities for qualified personnel.
He said that the recruitment of technical personnel, diploma holders and ITI certificate holders would continue to be carried out for meeting skilled manpower recruitment in view of the modernization and expansion of RSP. He added that “In addition to direct employment generation, expansion is likely to create employment opportunity for the ancillary and other support industries in the region.”
Dr Das informed that “The total manpower strength of SAIL after capacity expansion is likely to be less than the present manpower strength of 130419 as on November 1st 2007. While rationalization would continue further to increase competitiveness, simultaneously selective recruitments shall be undertaken to meet skilled manpower requirement for new projects or modernization.”
It may be relevant to mention that while SAIL’s corporate plan envisages enhanced production level by expansion or modernization of steel plant, it simultaneously lays emphasis upon achieving higher labor productivity, manpower rightsizing through natural separations and VR and selective recruitments.
Electrosteel to set up cement plant in Chattisgarh
It is reported that Kolkata based Electrosteel Casting Limited has entered into a pact with Chattisgarh to set up a 3 million tonnes per annum cement plant in Kawardha district with an investment of more than INR 1150 crore.
Mr P Joy Oommen additional chief secretary of Chattisgarh and Mr HK Modi executive director of Electrosteel has signed the MoU in presence of Dr Raman Singh chief minister of Chattisgarh.
Dr Singh has welcomed the proposal and said that it would generate job opportunities for thousands of people.
ONGC refuses stakes in oil blocks in Iran and Angola
Oil & Natural Gas Corporation has turned down an offer of equity stake in oil blocks in Iran and Angola made by Norsk Hydro of Norway by saying that the blocks were not very prospective.
A top ONGC official said that "Norsk brought to us 2 blocks for participation but we did not find the blocks too exciting. We have decided against taking stake in any of the 2 blocks."
It may be noted that Norsk Hydro had offered ONGC a stake in its Anaran block in Iran and another block in Angola in exchange for equity in GAIL's gas rich eastern offshore Krishna Godavari basin.
Norsk has taken 10% stake in ONGC's KG DWN 98/2 block that lies adjacent to Reliance Industries' prolific KG D6 block in deep waters of Bay of Bengal. Norsk has the option of doubling the stake in the ONGC block. Petrobras of Brazil has taken 15% stake in the block that also has Cairn India as the third foreign partner with 10%. ONGC has the remaining 65% interest in the block. Petrobras too has an option of doubling its stake in the block at a later date.
Hindalco to acquire copper mines aboard to increase capacity
It is reported that Hindalco Industries Limited plans to acquire copper mines abroad to increase captive mining capacity to 60% from 40% at present.
Mr D Bhattacharya MD of Hindalco said that "We are looking at acquiring copper mines in developing countries to increase our captive mining capacity to 60%. It is looking at South American countries for the purpose. It may be Colombia, Peru or Argentina."
Hindalco owns India's largest copper smelting and refining plant at Dahej in Gujarat, with 2 copper mines in Australia and boasts of having smelting and refining capacity of 5,00,000 tonnes per annum.
BHEL bags INR 18.2 crore supply order from Adani Power
Bharat Heavy Electricals Limited announced that it has bagged INR 18.2 crore contracts to supply 400 MVA and 400 kV generator transformers to Adani Power Limited for its 990 MW generation project in Gujarat.
BHEL said that no other Indian manufacturer has so far built transformers of this rating. This contract would open up a new line of business as BHEL would be able to secure contracts for such transformers for 330 MW thermal sets.
Suryachakra Power to raise USD 100 million for a new power JV
Suryachakra Power Corporation Limited has announced that its board directors would finalize plans to raise up to USD 100 million to part fund its efforts to set up a JV for power plant. It is also seeking members' nod to raise the borrowing limit up to INR 750 crore.
Suryachakra Power had recently hinted at plans to set up a major plant in collaboration with a Chinese firm. As a follow up of the IPO and the funds raised by the company, it may consider reinvesting about INR 10 crore in ongoing power business instead of power trading hinted earlier.
As per the release “Suryachakra Power board has accorded its consent to the company management for finalizing the modalities for the issue of warrants convertible into equity shares to the promoters on preferential allotment basis subject to SEBI regulations.”
TATA Motor to launch the INR 100,000 car by July 2008
It is reported that the first lot of INR 100,000 cars may finally roll out from TATA Motors’ Pantnagar facility in Uttaranchal instead of Singur plant in West Bengal.
According to industry source, the construction delay in Singur has cost TATA Motors around 3 months. Although construction activity at the site has been ramped up with nearly 2,800 to 3,000 people working 24x7 now, there’s little likelihood of the Singur plant coming on stream before September to October 2008. The source added that “So the first lot of cars will probably come from Pantnagar, though the first deliveries will still be in Kolkata.”
Meanwhile, a TATA Motor spokesperson said that “We have increased the pace of construction work at Singur to reduce the delay, which has occurred due to heavy monsoon and water logging earlier this year. We expect to commence production in the July 2008, as we have said on earlier occasions.” He added that apart from floods, there are other logistics issues that have delayed the project. These include soft soil, which need reinforcement and a road to connect the plant to the national highway.
Sources said that the INR 100,000 car uses a lot of the architecture that goes into TATA Motors’ best selling Ace light pick up. So the Pantnagar plant, which makes Ace, is a good Plan B candidate. The total installed capacity for the Ace is 225,000 units, to be ramped up in phases. Currently, Ace uses about 100,000 unit capacity.
It further added that TATA Motors will need to use 60,000 units to 70,000 units to make up the first lot. Once Singur comes on stream, though, there’ll be enough capacity. The Singur plant will kick off with 100,000 units to be ramped up to 350,000 to 400,000 units in 2 years.
Cabinet approves sale of 49% stake of BPCL Shell to Shell
Union cabinet has given its approval for sale of 49% equity stake of Bharat Petroleum Corporation Limited in Bharat Shell Limited to Shell or its affiliate for a consideration of INR 152.40 crores in cash.
The proposed sale will enable BPCL to withdraw from a JV company which has a competing business interest that is production and sale of branded lubricants in India. It will also enable BPCL to concentrate on building and promotion of its own brand of lubricants resulting in improved brand image, higher growth, efficiency and profits.
Moser Bear inks MoU with Rajasthan for solar project
It is reported that Moser Baer Photo Voltaic has signed a MoU with Rajasthan Renewable Energy Corporation for setting up of a large solar power project with an estimated generation capacity of 1 MW to 5 MW.
As per report, the project will be the largest grid connected solar project in India and entail an investment of around USD 25 million at USD 4.5 million per MW.
Moser Baer is also evaluating various options for setting up large sized solar farms across the SAARC region with strategic tie ups with some of the leading global Solar PV Companies and clean energy funds. It plans to emerge as a leading technology driven PV equipment manufacturer in the world by implementing a capacity of 500 MW by 2010 through a mix of technologies in the crystalline silicon, concentrator and thin film domain.
JSEB to get more power from DVC
Jharkhand State Electricity Board has informed the Jharkhand High Court that it would get an additional 100 MW electricity supply from Damodar Valley Corporation from December 1st 2007 to cope up with the severe power crisis. It is presently getting additional electricity supply of 50 MW each day from the DVC.
Jharkhand government had filed an affidavit with the court stating that the JSEB is only getting 167 MW electricity supply from the central pool instead of 267 MW. However, it reiterated that request has been made to the union power ministry to enhance the power supply from the existing 267 MW to 517 MW.
The High Court earlier had asked the counsel for the union government to seek instruction regarding steps taken by it with respect to the allocation of 250 MW additional power supply to Jharkhand. But counsel appearing for the central government informed that he had communicated the said order to the power ministry but till date didn't received any reply. However, he sought 1 week time to obtain the relevant information.
Murchison continue chasing Midwest
Murchison Metals at its annual general meeting said that it has not ruled out offering an additional sweetener to get its all scrip takeover bid accepted by Midwest Corporation.
Mr Paul Kopejtka chairman of Murchison told shareholders that the takeover proposal makes sense on every level operationally, corporately and financially. He added that "Our challenge is now to persuade the Midwest board and its key shareholders that combining the two companies and the two projects will be in the best interests of ALL of the shareholders in both companies."
Mr Paul Kopejtka told shareholders that Murchison's board will discuss its options in the next few days. He said that the three options available were to wait for the bid to close on December 6, extend the offer date, or extend the offer date with a revised bid.
Murchison Metals' had made a AUD 1 billion plus scrip takeover offer which Midwest's shareholders have officially rejected. The Midwest Board confirmed in writing earlier this months that Murchison's current offer materially undervalues Midwest relative to Murchison.
Midwest and Murchison are both developing iron ore projects in the mid west region of Western Australia and are in competition to develop a new deep water port at Oakajee near Geraldton and a railway to move the iron ore from mines to the port. By acquiring Midwest, Murchison would have removed its main rival for the AUD 3 billion development.
AISI cautious on Chinese plan to end subsidies
The American Iron and Steel Institute in a statement said that America’s steel industry is encouraged, but remains cautious, in its assessment of the US Trade Representative’s announcement that China has agreed to take a series of steps before the end of the year to eliminate subsidies prohibited by the WTO.
AISI said that “American steel industry is encouraged by the announcement from the Office of the United States Trade Representative that China has agreed to eliminate its WTO illegal subsidies. However, these subsidies represent only the tip of the iceberg when it comes to Chinese government subsidies to industry.”
AISI said that “The government of China has been targeting steel and other manufacturing sectors with a broad range of subsidies, and these tens of billions of dollars worth of government assists have been giving Chinese steel and other manufacturers a substantial artificial competitive advantage.”
AISI added that “We believe it is critical to identify all of China’s trade and market distorting subsidies and that all such subsidies must be eliminated immediately if China wishes to be treated as a responsible stakeholder in the world trading system. With regard to the November 29 announcement by the USTR, from the perspective of the domestic steel industry, the proof will be in the pudding. We remain cautious in our assessment of the situation until we have had a chance to study the agreement and until we begin to see specific actions taken to meet this agreement by the Chinese government to eliminate its WTO illegal subsidies.”
The release further added that “We will follow closely the upcoming high level dialogue that will take place between senior level US and Chinese officials aimed at addressing trade, energy, the environment and China's currency policy. We will be vigilant in looking for concrete actions by the Chinese government to meet its commitments, and we will continue to work closely with the Administration to that end.”
Siemens announces major reorganization
Siemens AG has announced a major restructuring of the company, reorganizing its operations into three sectors: industry, energy and healthcare, containing a total of 15 divisions as of January 2008. The Industry and Energy Sectors will each have six Divisions and the Healthcare Sector three.
The industry sector will be headed by Mr Heinrich Hiesinger and will comprise of six divisions industry automation, motion control, building technologies, industry solutions, mobility and Osram.
Mr Wolfgang Dehen will head the energy sector, which will also have six divisions fossil power generation, renewable energy, oil & gas, service rotating equipment, power transmission and power distribution.
Mr Erich R Reinhardt will be responsible for the healthcare sector, which will be organized in three divisions imaging & IT, workflow & solutions and diagnostics.
Mr Peter Löscher president & CEO of Siemens said that “This new and more focused company structure will further increase our profitability and transparency. Clear responsibilities will ensure that we are faster in the market and closer to our customers.”
The new global heads of the divisions will be announced early in December 2007.
Siemens AG is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 400,000 employees working to develop and manufacture products, design and install complex systems and projects and tailor a wide range of solutions for individual requirements.
USW welcomes investment in US Steel Mon Valley
The United Steel Workers has welcomed US Steel's announcement of a USD 1 billion capital investment program at its Clairton Coke Plant near Pittsburgh, which will bolster the long term viability of its Mon Valley Works operations where some 3,000 USW members are employed.
Mr Leo W Gerard president of USW International said that "Our union is pleased by the announced improvements, not only because of the security this provides that our proud tradition of steelmaking will continue in the Mon Valley for the foreseeable future, but because the company has chosen to make these investments in an environmentally responsible way."
Mr Tom Conway VP of USW, who serves as the union's chief negotiator with the company said that "Following years of retrenchment in the industry where steel plants were shut down across the country, we are looking forward to the next chapter of the Mon Valley industrial complex and a prosperous future for the steel industry and the members of the USW that work here. Manufacturing is vital to our economy and our local steel industry generates economic opportunities for local businesses, service providers and their employees. This new construction will create 600 construction jobs for members of the Building Trades."
Mr Conway said that "US Steel's investment will also result in significant environmental performance improvements at the Clairton Plant. And we look forward to working with the company and Allegheny County Chief Executive Dan Onorato to ensure that construction of the new batteries moves ahead in a timely and efficient manner."
Rio Tinto likely to build nickel portfolio
According to Mr Tom Albanese CEO of Rio Tinto, Rio Tinto which is not currently a significant nickel producer could become a global top 10 producer within 10 years if it goes ahead with two big projects.
The two key nickel projects on the company’s books are the Sulawesi project in Indonesia and the Eagle project in the US.
Mr Bret Clayton CEO of Rio’s copper business elaborated that the Sulawesi project would have an initial production target of around 46,000 tonne per year of contained metal with production scheduled to start by 2015. He added that "There is also potential to further increase that production beyond 100,000 tonnes of nickel per annum.”
Taiwanese mills to cut domestic SS prices for December
YIEH reported that Taiwan’s stainless steel mills including Yieh United Steel Corp and Tang Eng Iron Works have announced to reduce their domestic stainless prices on stainless steel hot rolled product prices by TWD 2,000 per tonne effective from December 2007
Meanwhile, the price of stainless steel cold rolled will be cut by TWD 3,000 per tonne. However, the export prices at both companies will be reminded unchanged. It also said that Yusco will also hold its 400 series stainless steel prices steady for December.
Port Taranaki stunned on loss of Pike River coal contract
It is reported that Port Taranaki will miss out on an NZD 80 million export coal contract after Pike River Coal Ltd announced on November 27th they will send their coal to Lyttelton near Christchurch.
Port Taranaki was to make an NZD 18 million investment in upgrading and had started a purpose built coastal bulk ship. The port has also just spent NZD 20 million on a dredging project designed to deepen the harbor so it can accommodate much bigger ships.
Mr Roy Weaver CEO of Port Taranaki said that the announcement was a bombshell.
Two years ago Pike River entered a contract to deliver 1.3 million tonnes of coal a year from its West Coast mine to New Plymouth for export. But recently, Solid Energy signed an 18 year agreement with f Pike River to carry its coal on the Midland rail line to Lyttelton Port for export.
Acesita change name to ArcelorMittal Inox Brazil
Acesita in a filing with the Brazil’s securities regulator CVM said that its shareholders of Brazilian specialty steelmaker Acesita have approved changing the company's name to ArcelorMittal Inox Brazil.
Minas Gerais state based Acesita has liquid steel capacity of 900,000 tonnes per year and calls itself the only integrated stainless steel producer in Latin America.
Rautaruukki to deliver highway bridge project in northern Finland
Rautaruukki has signed a contract agreement with YIT Construction Ltd for supplying the steel structures for the Isohaara Bridge spanning the Kemijoki River in Northern Finland.
Construction of the over 300 meter long bridge is a significant part of the improvement project for highway 4, which began in autumn 2007. The Isohaara Bridge will open to traffic in October 2009.
Ruukki's delivery includes the manufacturing, surface treatment and installation of the bridge's steel structures and the contract is worth around EUR 2.5 million. In addition to bridge structures, Ruukki supplies infrastructure construction projects with piling, noise barrier and guard rail systems.
Mr Pertti Kärkkäinen heading of the project at YIT Construction Ltd said that "Ruukki's good supply capability, speed of delivery and high product quality were decisive when we were making our decision."
Mr Sami Eronen head of infrastructure construction of Ruukki Construction said that "The high degree of prefabrication of the bridge structures, the fast and accurate deliveries and the seamless co operation with the customer all ensure a good end result and significantly reduce construction time."
Sivensa net income up by 57% YoY in fiscal 2007
BNamericas reported that Venezuelan steelmaker Sivensa registered net income of USD 77 million for the year ended September 30th 2007 up by 57.1% YoY from USD 49 million in the previous year.
Sivensa in a statement said that its operating profits came to USD 81 million in the period as compared to USD 38 million in the previous fiscal year adding that its consolidated sales reached USD 867 million up from USD 774 million in fiscal 2006. Sivensa also reported a gain of USD 50 million on the sale, exchange and appraisal of investments, including the sale of its stake in Grupo Ternium.
Sivensa said that "Improved results were mainly due to the increase of sales at our subsidiary Sidetur on the domestic market and higher briquette prices on the international market."
Sivensa has three commercial units
1. Sidetur which manufactures steel products for the construction industry
2. IBH, whose Venprecar and Orinoco Iron plants produce reduced iron briquettes used in the steel industry
3. Vicson unit which makes wire and wire products for the manufacturing, construction, farming and infrastructure sectors.
Raytec Metals enter iron ore business
British Columbia based Raytec Metals Corp announced that it signed an agreement to acquire a 100% interest in the El Sol Historic Iron Ore Project, located in the Red Lake Mining District of Ontario in Canada.
Raytec Metals said that extensive exploration drilling and metallurgical testing was conducted on the property between 1956 and 1957. Airborne and ground magnetic surveys defined two large parallel magnetic anomalies, with the A zone measuring in excess of4 kilometer in length and the B zone measuring in excess of 2 kilometer in length. A total of 67 diamond drill holes, with a combined length of 10,363 meters, were drilled on these two zones, identifying a historic resource of 312,000,000 tons grading 32.4% iron to a depth of 300 meters.
To acquire the property, it will be required to pay to the Vendors USD 160,000 and issue to the Vendors a total of 1,250,000 shares of the Company. The Company must also incur a total of USD 3,000,000 in Exploration Expenditures on the property.
Raytec believes iron ore is the metal for the year 2008 and will compete in the iron ore market with the three major suppliers in the world.
Raytec Metals Corp is an exploration and development Company with interests in Uranium properties in the Athabasca Basin, Saskatchewan, and Iron Ore properties in Ontario.
Transpetro to hold public bidding for steel purchase
Brazilian state owned oil and gas giant Petrobras subsidiary Transpetro announced that it will hold an international public bidding in December 2007 to purchase steel required for building vessels.
Mr Agenor Junqueira director of Maritime Transportation Department said the entire process is expected to be finished in January 2008, which will allow Transpetro with no further delay to build 19 cargo ships.
Mr Junqueira added that the purchase of 400,000 tonnes of steel will not disturb the schedule set for the first stage of the plan for the modernization and expansion of the company's fleet, which includes the construction of 26 ships.
Transpetro and local shipyards accused Brazil's steel making industry of charging abusive prices for naval steel, which led the subsidiary to hold the international bidding. The company hopes to build 16 other ships in the second stage of the plan.
Pennsylvania Steel to build warehouse in Naugatuck
It is reported that a Pennsylvania based steel manufacturer that originally planned to expand at England’s Cheshire now intends to build a USD 4 million warehouse in the Naugatuck Industrial Park.
Pennsylvania Steel Co Inc a distributor of steel, aluminum and other metals, currently leases a 35,000 square foot building at 50 Rado Drive here. The company wants to build a 70,000 square foot building about a mile from its current facility.
The company, which currently employs 20 people here, would transfer all of its Naugatuck based operations into the new facility.
IOSHA fines ArcelorMittal for flash fire at Burn Harbor
The Times reported that the Indiana Occupational Safety and Health Administration has charged ArcelorMittal with two serious safety violations and fined the company USD 2,975 in connection with an August 28th 2007 flash fire at its Burns Harbor basic oxygen furnace that burned seven workers. Workers were tapping the furnace to release 300 tons of liquid molten steel when a chemical reaction of unknown origin sent the vessel's temperature so high that a fireball of molten steel and scrap erupted, burning nearby workers.
Mr Jeff Carter deputy commissioner of the Indiana Department of Labor said that “The Indiana Occupational Safety and Health Administration issued the safety order and notice of penalty on November 14th 2007. ArcelorMittal has 15 working days from that date to either accept the order and pay the fine, ask for an informal conference to object to the findings and present evidence to mitigate its culpability or ask for an appeal before the Board of Safety Review.”
According to one of the safety orders, the fine was issued because employees working in the area of the BOF weren't wearing the required protective equipment. Instead, employees in the area were wearing 'greens' that ignited from the heat from molten metal. Plus, it states that when the company modified the area around the furnace, the protective equipment was not updated.
It added that no penalty was issued for the violation of another safety order, which said "Changes in the types of personal protective equipment to be used rendered previous training obsolete, because the situation was corrected immediately following the incident.”
Mr Paul Gipson president of United Steelworkers Local 6787 said that “It is a shame that it took something like this for the company to provide the right equipment. Although the fine is relatively small considering ArcelorMittal is the world's largest steel company. Mr Gipson said it shows that "if you are guilty, you are guilty. The size of the fine doesn't matter. Our biggest concern is that they do the right thing to correct the problems, and they have done that. The cost of making everything safer is much greater and more important that the fine."
Webster & Horsfall changes annealing furnace
It is reported that UK's oldest manufacturer of specialty wires, Webster & Horsfall has replaced a gas furnace with an electrically heated furnace from Meltech Engineering to cut energy costs and reduce the company's carbon footprint.
The Meltech MT1100 is used for strand annealing Webster & Horsfall's range of Austinitic and Super Duplex stainless steel wires. The MT1100 is being used to strand anneal stainless steel wires from 0.7mm to 4mm at 1100 degrees.
It is designed on the Meltech low thermal mass principle and features multi zone temperature control. Customization of element design allows optimization of the MT1100’s performance to fine tune temperature zoning and increased element operational life.
In addition, the MT1100 uses advanced ceramic and insulation materials to give 90% thermal efficiency, leading to more consistent and manageable heating across the length of the furnace and reduced furnace heating running cost.
Perilya looks to next stage of Flinders zinc project
Metals Insider reported that Australian producer Perilya recent drilling results at the Reliance ore body have continued to provide greater confidence in the project pipeline at its Flinders project in south Australia.
Perilya said that Reliance is currently the subject of a feasibility study and if approved would mark the second phase development of Flinders. The first stage development is the production of direct shipping ore from the Beltana ore body, which is scheduled to be mined through to early next year.
Perilya has just made its first 10,000 tonnes shipment of intermediate grade ore to a Chinese smelter with a second shipment planned for January 2008. Talks with other interested off take parties are continuing. It added that at Beltana a total 160,332 tonnes of ore, grading 39.2% zinc and 80,112 tonnes of ore, grading 16.1% zinc has been mined and stockpiled.
Turkey's rebar export prices move up
It is reported that Turkey’s export price of rebar has soared recently due to high market activity in Middle East.
As per reports, the current export price of rebar is at FOB USD 600 per tonne to USD 610 per tonne for January shipments while the price in the Turkish domestic market is at USD 620 per tonne.
It is also reported that the rebar export price to American has increased by USD 20 per tonne to USD 640 per tonne to USD 650 per tonne FOB during last week.
Construction projects in Gulf to hit USD 3 trillion in 2008
According to Gulf database company Proleads, the total value of construction projects in the Arab Gulf region will touch USD 3 trillion in 2008. The current value of projects reached USD 2.45 trillion and accounts for a total of 2,835 active projects.
The region’s largest construction project currently in progress is Saudi Arabia’s King Abdullah Economic City, which is valued at USD 120 billion. The next 2 regional ambitious projects are the UAE’s Dubailand and Kuwait’s Silk City Project, valued at USD 110 billion and USD 86 billion, respectively.
Mr Emil Rademeyer director of Proleads said that “The entire value for projects in the Gulf, including those projects at the planning and conception stages are worth over USD 2.5 trillion and account for 3,521 projects.”
Saudi Arabia spearheads the construction drive with projects worth in excess of USD 1.1 trillion. The UAE ranks 2nd with developments valued at USD 700 billion, followed by Kuwait in 3rd place at USD 300 billion. However, in terms of total number of projects, the UAE has an edge over Saudi Arabia with 1,539 projects compared to Saudi Arab’s 1,033 projects.
Kuwait Petroleum awarded gas plant order to SK Engg
It is reported that Kuwait Petroleum Corporation has awarded a USD 700 million gas plant order to South Korean firm SK Engineering & Construction Company.
The gas plant, to be built within the Mina Al Ahmadi oil refinery by the Arabian Gulf, will process 800 million cubic feet of associated gas and 106,000 barrels of natural gas condensates to produce ethane, propane and butane gas. Construction is to last 38 months.
SK Engineering is also involved in 3 other oil related projects in Kuwait, worth a total of USD 3.1 billion.
Doha Bank in tie up with Infrastructure Leasing
It is reported that Doha Bank has recently signed a MoU with Indian firm Infrastructure Leasing & Financial Services Limited to provide various project or infrastructure financing and advisory services in Middle East region.
The strategic alliance will provide services in the areas of commercialization of infrastructure and infrastructure advisory, investment banking, leasing, corporate advisory, financial structuring, capital market activities and project finance, private equity and syndication among others.
Mr R Seetharaman CEO of Doha Bank expressed his happiness over the tie up with IL&FS, which will give innovative solutions to corporate business needs. He added that “At Doha Bank we have always made customer satisfaction as the primary business objective by providing products and services that match customer needs.”
Mr R Parthasarathy chairman of Infrastructure Leasing said that from concept to execution, IL&FS houses the expertise to provide the complete array of services necessary for successful project completion which includes visioning, documentation, finance, development, management, technology and execution. He added that “This tie up gives us an opportunity to optimize the use of our existing infrastructure.”
Russia offers assistance to Egypt for building nuclear power plant
Interfax quoted Mr Andrei Krivtsov spokesman of Russian Foreign Ministry as saying that Russia is prepared to assist Egypt in building a nuclear power plant if Cairo displays interest in such cooperation.
Mr Krivtsov told Interfax that "If Egypt is interested we could discuss the possibility of Russia's assistance in building a nuclear power plant in Egypt."
Saudi Arab’s 4th petroleum storage facility opened in Madinah
Khaleej Times reported that Saudi Arabia has opened its fourth strategic petroleum storage facility in the Holy City of Madinah.
The Madinah storage facility, whose underground tunnel has a length of 30 kilometers, was prepared after removing nearly 4 million tonnes of rock.
Emphasizing the significance of the strategic petroleum storage program Mr Musaed Al Sayegh the program's director general said that petroleum represents the backbone of a country's economic power and plays an important role in times of peace. He added that "It becomes a rare commodity in the time of war."
Mr Sultan chairman of the Saudi Strategic Storage Program said that "Any halt in the supply of petroleum will affect economic growth, weaken military machinery and affect civilian facilities such as hospitals, industries and agriculture. The facility can preserve petroleum for a long period without any changes taking place in either its nature or chemistry. Tests conducted on petroleum stored in the facilities have proved that they are safe." He added that keeping in mind this strategic importance, the government decided to establish 5 storage facilities in various parts of the country.
Reviewing the stages of SSSP, Mr Sultan said that the idea emerged about 20 years ago when foreign aircraft raided the south of the Kingdom. This necessitated deterrents to prevent a repetition of this incident. The late King Fahd and the then Crown Prince Abdullah issued directives to take the required measures. In the light of this, a military and civil committee representing military sectors and the Ministry of Petroleum and Mineral Resources was formed.
China Steel export growth down in first three quarters
According to the customs statistic, China exported a total of 49.518 metric tonnes steel products in the first three quarters valued at USD 34.01 billion up by 73.3% and 100%YoY respectively. The export growth rate yet fell by 24.4% points from that for the first half year.
Steel export during this period has following features
First, monthly steel export volume fell month by month in the third quarter, with lowest YoY growth rate recorded in September 2007. The nation had a stream of curbing policies come out in H1 including four in the second quarter. As a result, steel product export in July, August and September 2007 registered 5.938 million, 5.377 million tonnes and 4.44 million tonnes respectively. In September the export volume fell by 21.1% in MoM, the lowest through 2007.
Second, the exports were mainly via Tianjin, Jiangsu and Shanghai ports. During the first three quarters, they registered 15.612 million tonnes, 8.519 million tonnes and 7.704 million tonnes respectively up 1.2 fold, 75.5% and 37.2%YoY bringing combined percentage up to 64.3% out of total export.
Third, EU, South Korea and ASEAN were the top three export destinations while shipments to the US declined further. The three places received 9.287 million tonnes, 8.655 million tonnes and 7.956 million tonnes steel products respectively during this period up 1 fold, 34.4% and 75.7%YoY. The three together accounted 52.3% of China's total export. China's shipments to the US fell by 11.8% to 3.453 million tonnes.
Fourth, export growth of major steel products gradually went down and the flat products average export price climbed the most. Export of flat products and bar & wire rod posted 21.783 million tonnes and 13.435 million tonnes up by 61.4% and 83.9%YoY. The growth rates were 22% and 36% points down than posted in the first half year. The flat products average price grew 28%YoY to top USD 700 per tonne during the first three quarters.
(Sourced from MySteel.net)
Iron ore and rebar price sets new record high last week - NDRC
According to data released by National Development & Reform Commission that Chinese steel prices continue upward path last week with rebar and iron ore prices hitting over historical highs.
The average price of four major steel products wire rod, rebar, medium plate and CR sheet has gained 1.1% WoW to CNY 4634 per tonne across 22 major cities up by 25.3% from same time of last year.
Of this, rebar price has increased to a record high of CNY 4455 per tonne on November 23rd 2007 following day to day strong rally last week. Meanwhile, wire rod price increased by 1.5% WoW to CNY 4242 per tonne and medium plate and CR sheet prices went up by 1.3% and 0.5% to CNY 4728 per tonne and CNY 5122 per tonne respectively.
Fe 66% ore concentrate price increased by 1%WoW to CNY 1304 per tonne in Tangshan up by 86.3%YoY. The iron ore price has reached CNY 1320 per tonne on November 23rd 2007 breaking the peak price of CNY 1310 per tonne set on September 7th 2007.
(Sourced from MySteel.net)
China charts new industry blueprint for coal sector
According to China top economic planning body China will not approve new coalmine projects with an annual capacity of less than 300,000 tonnes before 2010.
A newly published national coal industry policy by the National Development and Reform Commission said that in coal abundant provinces such as Shanxi, Shaanxi and the Inner Mongolia Autonomous Region, proposed coalmines will need a production capacity of over 1.2 million tonnes for approval.
A total of 13 large coal producing bases will be built in the country. Large-scale State-owned coal companies are encouraged to expand operations by tapping into different regions and various industries. Mergers and acquisitions are also encouraged in the sector.
Besides raising entry requirements for coal and coal bed methane exploration and exploitation, industry consolidation, coalmine safety, technology improvement, energy saving and environmental protections are also underlined in the coal blueprint.
Mr Liang Dunshi vice chairman of the China Coal Transport and Distribution Association said that "With the new policy, the nation will use its coal resources more efficiently and the coal industry will see more consolidations. He said China's coal industry should also pay more attention to energy efficiency and environmental protection for sustainable development."
The NDRC said that by 2010, Chinese coal firms should have cut their energy consumption per tonnes by 20% from the level in 2005 and solid waste such as coal gangue and flurry, should be used in 70%.
The NDRC in January released the outline of the 11th Five Year Plan 2006-10 for the coal industry, saying the nation would develop up to eight coal-mining groups, each with an output of 100 million tonnes and up to ten companies, each with an output of 50 million tonnes. At present two companies in the country, Shenhua and China Coal, have an annual output of over 100 million tonnes.
China's coal output is expected to reach 2.6 billion tonnes in 2007 an increase of 8% as compared with l2006, when it produced 2.38 billion tonnes of coal. As per estimates, China’s coal exports will match import totals, both standing at about 50 million tonnes.
Chinese government to support firms in overseas coal deals
China’s National Development and Reform Commission said that Chinese government has set an official industry policy for the first time on supporting coal companies investing in overseas resources, as part of efforts to enhance the nation's long term energy security.
Experts said that “Coal will be the principal source of energy in the country through to 2020. This makes Beijing vulnerable to the recent and repeated price hikes in the cost of coal, despite the fact that the country has the world's third largest coal reserves of 114.5 billion tonnes or 12.6% of the global total at the end of last year. However, on a per capita basis it amounted to only 60% of the world average, it has only 10% of the global per capita oil reserves, 5% of global per capita natural gas reserves.”
Among the listed companies, only Yanzhou Coal Mining which faced declining output in its home province of Shandong has clinched an overseas investment. In late 2004, it bought a 90% stake in the Austar mine in Queensland. It spent more than CNY 1.5 billion to restore the mine which was damaged by a fire.
China Shenhua Energy has been in talks for more than three years to form a consortium to invest in a large coking coal project in Mongolia to feed steel industry demands. Shenhua is also exploring opportunities to buy into coal firms or mines in Indonesia and Australia.
Sinopec and Wuhan ink strategic supply agreement
It is reported that the China Petroleum and Chemical Corporation and Wuhan steel have signed a strategic supply agreement in a ceremony held in Beijing recently for increasing cooperation in the area of supply of steel.
Mr Peng Chen deputy GM and chief accountant of WISCO attended the ceremony, Mr Zhao Chang Xu Deputy General Manager of stock company representatives WISCO signature.
Sinopec is China's largest petroleum products, petrochemical products manufacturers and suppliers, China's largest integrated energy and chemical company is also China's second largest oil producer. Mainly engaged in oil and gas exploration and development, mining, pipeline transportation, sales; petroleum refining, petrochemical, chemical fiber, chemical fertilizers and other chemical production and product sales, storage and transportation; petroleum, natural gas, petroleum products, petrochemical and other chemical products and other goods, technology import and export, import and export agent business technology, information research and development and application.
US group Chian direct acquires zinc lead rights in Xiangxi
Metals Insider reported that China Direct a US company, holding a portfolio of interests in China, has reached a definitive agreement to acquire 100% of Xiangxi Autonomous Prefecture Jixiang Mining Industry Co. The company will be renamed CDI Jixiang Metal Industry Co.
China Direct will pay cash consideration of CNY 5 million and plans to invest up to USD 1.325 million in expanding the company’s operations.
China Direct said it now plans to conduct a more detailed survey in the near future and intends to explore acquiring additional rights pending the results of that survey.
CDI Jixiang Metal owns the sole mining rights to a parcel of land located in the Yongshun Kaxi Lake Mining area. The land holds both zinc and lead ore and the government have approved the mining of an aggregate of 10,000 tonne per year of zinc and lead.
China to ban small coal mines to improve safety
Xinhua reported that China will ban new coal mines with an annual capacity of less than 300,000 tonnes in an effort to improve work safety.
The report said the new policy also bans the establishment of new coal mines near nature reserves, rivers, lakes and other geological hazard zones. It did not say when the policy takes effect.
As per report small coal mines account for one third of production and almost two thirds of accidents that killed 4,746 people in China in 2006 and 3,431 of the deaths occurred at smaller mines
Yusco to increase investment in Lisco
YIEH reported that Taiwan's biggest stainless steel mill, Yieh United Steel Corp has been approved by Taiwan Investment Commission for increasing its investment in project on its China Lianzhoug Stainless Steel Corp.
The total investment value will be USD 24 million and the major purpose is try to enlarge its market shares in China.
Yusco said that Lisco is the important operation station in the oversea market. Its production line has totally run for production since this October and they expect its yearly output may reach 800,000 tonnes.
China and France sign EUR 8 billion nuclear energy deal
Xinhua reported that China Guangdong Nuclear Power Group and Areva of France signed EUR 8 billion civil nuclear energy cooperation deals recently according to which the French company will help build two reactors in Taishan City in the southern Guangdong Province.
Mr Qian Zhimin Chairman of the CGNPG and Ms Anne Lauvergeon, Chairman and CEO of Areva signed the milestone contract at the Great Hall of the People in Beijing during the signing ceremony for various commercial contracts between the two countries, in the presence of Mr Hu Jintao president of China and visiting Mr Nicolas Sarkozy president of French.
According to the signed deal dubbed "Taishan EPR 1&2 Contract" Areva will cooperate with the CGNPG to establish two European pressurized water reactors in Taishan and Areva, the world's largest nuclear engineering firm will provide all the needed materials and technology support.
The contract said the two sides also planned to set up a JV soon in an effort to conduct research and development of nuclear reactors engineering technologies.
Ms Anne Lauvergeon said "This is the largest commercial contract signed in the French nuclear energy industry history and opened a new chapter of nuclear cooperation between the two countries."
CGNPG is a leading nuclear energy enterprise in China, which currently owns Guangdong Daya Bay Nuclear Power Station and Ling Ao Nuclear Power Station Phase I with nearly 4,000 Megawatts of installed generating capacity.
Ansteel to focus on value added steel exports
It is reported that China’s Angang Steel Company has switched its major products to high value added products since 2007 in order to avoid the vehement competition from other domestic steel mills.
Because of China government's tax rebate policy, the steel export quantity has reduced a lot and the steel products turned back to China domestic market. China’s steel mills have more pressures in operation in the domestic market.
A senior manager of Ansteel said that “Angang was the No 1 steel exporter in China in 2006, but the exports has decreased in 2007. Therefore, the company has decided to stop its common steel products and focus on special steel products.”
Modern coal market system to establish in 3 to 5 years
It is reported that a video conference on 2008 coal production, transport & sales held on November 27th 2007 pointed out that reforms on coal sector in China should be further deepened and modern coal market system must be established within three to five years.
The conference believes that new systems on enterprises' self linkage resource as well as price negotiation have been formed primarily with macro-control supervise at present.
Import preparations should be taken in 2008.
1. Market competition system should be further introduced.
2. Enterprises sign contracts independently.
3. To insist on market-oriented reforms and improve coal market system.
4. To optimize coal transport power.
China's auto production to top 120 million units in 2020
It is reported that the increasing competition has driven to a drop in prices of automobiles by Chinese automobile manufactures. During the past ten months, the average price of automobiles in China for passenger cars dropped by 5%.
However, analysts still hold a very optimistic outlook and forecast that China's automobiles will reach 120 million units in 2020, an increase of about 15% to 20% in next ten years.
Mechel considering listing its coal assets on Toronto exchange
Thomson Financial reported that Mechel is considering listing up to 30% of its coal mining division on the Toronto Stock Exchange in order to raise up to USD 2 billion.
As per report the division includes the Southern Kubass coal mines as well as the Yakutugol and Elgaugol mines it acquired at auction last month.
The report added that Mechel will spin off the mining operations into a separate company in advance of the planned listing.
Analysts forecast Severstal profit of USD 1.5 billion in 9 months
It is reported that analysts from nine Russian and western investment companies and banks have forecast that Severstal net profit for the first nine months of 2007 as per International Financial Reporting Standards will be approximately USD 1.5 billion.
As per the forecast, Severstal’s sales revenue for this period is expected to be USD 11.466 billion with EBITDA of USD 2.978 billion.
Severstal had reported net profit, as per IRFS, of USD 999 million for the first half of 2007 and sales revenue was USD 7.771 billion with EBITDA of USD 1.484 billion.
Severstal gets rid of off banking assets
FIS reported that Severstal's board of directors has approved the deal on the sale of 53.57% of the shares of Metallurgical Commercial Bank Capital.
The shareholding's price was determined by an independent appraiser Rosexpertiza.
The report cited Mr Mikhail Noskov deputy GD of finance the shareholding is sold because the bank is an off core asset of the company.
Cargo turnover at Odessa Port in 10 months up by 10.4% YoY
It is reported that Cargo turnover at Odessa maritime merchant port was 26 million tonnes in January through October up by 10.4%YoY.
The volume of dry cargo grew by 4.9% YoY over the ten months 2007 to 13.3 million tonnes while turnover of container liquid cargo grew by 23.9% YoY to 3.7 million tonnes.
In October alone, the Odessa Port increased cargo turnover by 7.1%YoY to 2.3 million tonnes.
UES to sell 21.1% in Mosenergo
RIA Novosti reported that Electricity giant Unified Energy System will sign a deal by February with Moscow's government for the city to sell 21.1% in the capital's main power generator Mosenergo.
Mosenergo is Russia's largest territorial generating company supplying 80% of Moscow's heating requirements and 85% of the capital and Moscow Region's electricity runs 17 generating companies with capacity of over 10,000 MW.
Unified Energy System reported RUB 1.27 billion (USD 52 million) in net losses over the first nine months of 2007.
Serbian government promoting its mining industry in Japan
It is reported that Serbian minister of energy and mining is leading a delegation to a seminar in Japan as part of the project themed ”Master Plan for Advancement and Promotion of the Serbian Mining Industry” held in Japan.
The Ministry of Energy and Mining says in a statement that in January 2007 it began implementing the project themed ”Master Plan for Advancement and Promotion of the Serbian Mining Industry” with the aim of reviving the mining sector and promoting private investments. This one year project is financed by the Japanese International Cooperation Agency.
The statement also said that the project aims to formulate a master plan for promoting the mining sector in market economy, show the paths to sustainable development of the Serbian mining industry and transfer the technology.
The statement adds that the seminar in Japan is the first in a series of promotions of the Serbian mining industry and the next one will be held in Great Britain and Canada early next year.
