SAIL inks traffic guarantee agreement with RVNL

It is reported that Steel Authority of India Limited has signed a traffic guarantee agreement with Rail Vikas Nigam Limited for transportation of an assured volume of 500,000 tonnes of imported coking coal per annum using the Paradip Haridaspur railway line.

SAIL also handed over a cheque for INR 2.5 crore as its equity contribution in Haridaspur Paradip Railway Company Limited, which has been formed by RVNL as a special purpose vehicle for development of an 82 kilometer railway line in Orissa to connect Paradip port with the hinterland.

By becoming a strategic investor in the company, SAIL is ensuring availability of required number of rakes from the Indian Railways for movement of imported coking coal to meet its increased production targets of 2010. In addition, SAIL will also enjoy reduced freight rates for some destinations.

Danieli Corus to revive chilled blast furnace of NINL

It is reported that Danieli Corus has been entrusted the job of reviving the chilled blast furnace of Nilanchal Ispat Nigam Limited after it has been shut down over the past 2 months due to chilling of the blast furnace.

As per report, a two member team of the Danieli Corus had recently inspected the chilled blast furnace of the NINL plant and held talks with the plant management authorities and leader of the Kalinga Nagar Mazdoor Union in plant premises. They have prescribed to arrange the required equipment and accessories to be used for the revival of the blast furnace.

Mr DC Swain technical advisor to MD of NINL said that “There is no production in the plant since October 24th 2007. The plant has been shut down due to chilling of blast furnace. We have entrusted the survival work of the blast furnace to the Danieli Corus, world’s best in revival of the chilled blast furnace and it has already inspected the chilled blast furnace of our plant last week. This apart, we are asked by the team to arrange some apparatus to be required by them during revival of the blast furnace.”

Me Swain added that “NINL has suffered a loss due to a shut down of one its units. But the loss is negligible because, NINL has 2 units in Kalinga Nagar industrial complex area. They are hot metal and coke oven. Though the production of hot metal unit has been stopped but the coke oven is on. The market price of coke is high in international market and we are getting good returns.”

UGSL to hike HDG prices by INR 1000 per tonne in January

Uttam Galva Steels Limited announced that it would increase the prices of all its galvanized products by INR 1000 per tonne to INR 47000 per tonne with effect from January 1st 2008.

Mr Ankit Miglani director commercial of Uttam Galva Steels Limited, while commenting on the price hike, said that “The December 2007 contracts are currently being executed. All bookings now will be due for delivery in January 2008. The price hike has been announced keeping this in mind. This increase is based on strong market fundamentals and a very strong order book. We are also certain that steel and zinc prices will rise significantly in 2008.” He added that it may announce an additional price hike between the January 10th and January 15th 2008.

Uttam Galva Steels Limited is a one of the largest exporter of cold rolled steel and galvanized steel in India. In the domestic market, it is a major supplier to the automobile, white goods, general engineering and construction industries. It currently exports its products to more than 131 countries including Australia, France, Germany, Greece, UK and USA.

BHPB completes sale of Elouera Mine to Gujarat NRE FCGL

BHP Billiton announced that it completed the sale of its Elouera mine, which is a part of the Illawarra Coal business located in New South Wales region of Australia, to Gujarat NRE FCGL Pty Ltd.

BHPB said that “Completion of the sale follows the transfer of the coal lease and associated licenses and includes the mine, associated land holdings and the responsibility for rehabilitation and closure of the mine once operations are complete.”

Mining operations at Elouera by BHP Billiton were completed in 2005. Since then the mine has been operated under a limited contract mining agreement with Delta Mining Company, which was finalized in March 2007.

PM assures amendments to the National Mineral Policy

Dr Mr Manmohan Singh Prime Minister of India, at a meeting with the chief ministers of 5 mineral rich states, said that a committee of officials belonging to the centre and the concerned states will examine and finalize amendments to the Act and Rules of the National Mineral Policy 2007 and nothing will be done to restrict rights of states.

It is noted that chief ministers of Orissa, Chhattisgarh, Jharkhand, Rajasthan and Madhya Pradesh submitted a joint memorandum to the prime minister voicing their concerns over the draft National Mineral Policy which they said had been shared with them only recently. They objected to the security tenure, seamless transition from prospecting to mining license and large areas prospecting license as enshrined in the draft National Mineral Policy. They wanted the centre to emphasis on value addition within the state so that mineral bearing states benefit from industrialization both in terms of revenue and employment generation.

The chief ministers wanted the center to phase out export of minerals and in the meantime transfer the export levy entirely to the state government. They demanded that at least 5% of the annual profit from mining should be set apart for socio economic development of the tribal population in the scheduled areas. They suggested that modalities should also be evolved for the participation by the displaced persons in the equity of the mining company limited to the value of land compensation.

Meanwhile, provisions in the draft National Mineral Policy may lead to a few multinational mining companies acquiring the control over vast mineral resources of India that are required for domestic manufacturing industry.

PSL secures order for Dullajan Numaligarh pipeline in Assam

Indian pipe major PSL Limited announced that it has won a contract worth INR 125 crore from DNP Limited for the supply of coated line pipes and long radius bends for the 200 kilometer long Dullajan Numaligarh pipeline in Assam.

The order consists of supply of primarily 16 inch outer diameter API 5L coated line pipes. These pipes have to be supplied by mid 2008 and PSL shall supply these pipes in entirety from its pipe mills at Kandla in Gujarat.

Mr Ashok Punj MD of PSL Limited said that “PSL is proud to be associated with DNP Limited for the supply coated pipes for their Duliajan Numaligarh pipeline project. The North East constitutes an important source of supply for the growing energy requirements of the Indian emerging market, and projects such as this are an important step towards satisfying these requirements.”

PSL Limited, a global leader in manufacturing and coating of pipes for transporting hydrocarbon products and the largest manufacturer of high grade large diameter helical submerged arc welded pipes in India. PSL has recorded a net profit of INR 19 crore for the July to September 2007 quarter up by 35.7% YoY as against INR 14 crore in July to September 2006 quarter.

Dredging at Paradip Port to begin soon

BL reported that the long waited dredging at Paradip port is to start soon as Paradip Port Trust has urged the Dredging Corporation of India to start forthwith the work on deepening of navigable channel of the port.

The scope of the job would include extension of the approach channel from the present 2 kilometer to 10 kilometer. Also, the depths of both approach channel and entrance channel would be increased from 12.8 meters to 18.7 meters and from 12.5 meters to 17.1 meters, respectively. DCI has to complete the job within 60 weeks from December 13th 2007.

Mr K Raghuramaiah chairman of Paradip Port Trust said that “The union cabinet has approved the revised cost estimate of the scheme and accordingly we have received communication from the shipping ministry. Once the channels have been deepened, the draft will increase from the present 12 meters to 16 meters and Paradip port will be fully geared to handle much larger size vessels up to 125,000 DWT vessels as against up to 65,000 DWT vessels at present.”

The original cost estimate was INR 154 crore, subsequently revised to INR 253.36 crore for which the government approval was needed. The budgetary support in the revised estimate will be to the tune of INR 45 crore.

Hindustan Zinc cuts zinc prices by 4.3%

Indian zinc major Hindustan Zinc Limited announced that it had reduced zinc prices by 4.3% or INR 4,600 a tonne to INR 103,600 per tonne with immediate effect

HZL added that the price of lead was kept unchanged at INR 113,900 per tonne.

MMTC board approves new ventures

MMTC Ltd’s board of directors approved on December 14th 2007 seeking consent of members through postal ballot, relating to following areas

1. Amendment to the object Clause (III) of the Memorandum of Association of the Company to enable the Company to carry on the business of setting up of power plant(s) and dealing in power & Certified Emission Reduction (carbon credits).

2. Investment of a sum of INR 32.95 crore in the equity share capital of SICAL Iron ore Terminals Ltd, to set up port with loading facilities at Ennore port.

3. Investment of a sum of INR 26 crore for subscribing & acquiring equity shares of special purpose vehicle being created by India Bulls for setting up of a commodity exchange in India.

4. Investment of a sum of INR 12.48 crore for subscribing & acquiring equity shares of special purpose vehicle being created by Pamp SA for setting up of a project for minting & refining of gold and silver.

5. Investment of a sum of INR 11.70 crore for subscribing & acquiring equity shares of special purpose vehicle being created by Gitanjali Gems Ltd for setting up of a retail chain for jewellery.

6. Increase in the Company's investment from INR 14 crore to INR 16 crores in the equity capital of Haldia Free Trade Warehousing Pvt Ltd, advancing an interest bearing loan not exceeding INR 16 crore within the enhanced equity investment of INR 16 crore and advancing further an interest-bearing loan of INR 2 crore for purchasing land for the project.

7. Investment of a sum of INR 130,000 for subscribing & acquiring equity shares of special purpose vehicle) created by India Bulls Real Estate Ltd for bidding for 1800MW power plant for Talwandi Sabo Power Ltd in Punjab.

Bengal CM calls for fresh look at SEZ policy

BS reported that, calling for a need to limit the number of sectors eligible for setting up special economic zones, Mr Buddhadeb Bhattacharjee chief minister of West Bengal said that the policy on the special economic zones requires a fresh look.

Mr Bhattacharjee, while speaking at the National Development Council meeting, said that “Industry groups to be covered under the scheme should be identified in the first instance instead of extending it to all and sundry.”

Mr Bhattacharjee’s statement comes against the backdrop of widespread unrest in West Bengal over land acquisition for industrial projects. Significantly, the state has 16 formally approved SEZs while an equal number have got in principle approvals. He also vouched for upper limit on the area of SEZs. Currently, there is a 5,000 hectare cap on the maximum area of the zones.

On the other hand, Mr Gopal Pillai union commerce secretary, while speaking at the India Economic Summit, recently said that the maximum area on the SEZs could be relaxed according to implementation of the new R&R policy and the amended Land Acquisition Act.

HCC Alpine JV bags INR 145.7 crore contract from DMRC

Hindustan Construction Company Limited has announced that its JV with Austria’s Alpine Mayreder has been awarded a contract for design and construction of NATM tunnel including switchover ramp and ventilation shaft between Talkatora Garden and Budha Jayanti Park from Delhi Metro Rail Corporation Limited.

The value of the contract is INR 297.51 crore. HCCL’s share in the total value of the contract is 49% or INR 145.78 crore.

GE Shipping to buy 2 more dry bulk carriers from SPP

Exim News Service reported that Great Eastern Shipping Company Limited has signed a contract with Korea’s SPP Shipbuilding Company Limited for 2 Kamsarmax dry bulk carriers. These vessels, of approximately 81,000 DWT, will join the company’s fleet in the first quarter of 2011-12.

GE Shipping had earlier placed orders for 4 Supramax and 2 Kamsarmax dry bulk carriers in line with its view to enhance tonnage and participate in the increasing opportunities in the dry bulk commodities trade. All these vessels are expected to join the company’s fleet between 2010 and 2012.

With this contract, its order book comprises 12 vessels, aggregating 0.85 million DWT with 4 LR1 product tankers, aggregating 0.30 million DWT and 8 dry bulk carriers aggregating 0.55 million DWT.

Ramsarup to consider merger of group companies

Ramsarup Industries Limited announced that its board would meet on December 28th 2007 to consider merger of group companies with itself.

Simplex Infrastructures raises INR 400 crore through QIP

Simplex Infrastructures Limited has announced that its board of directors has approved allotment of 6.4 million equity shares of INR 2 each at INR 625 each amounting to INR 400 crore to qualified institutional buyers under qualified institutional placement. This new issue accounts for 13% of the expanded capital.

Suzlon raises USD 552 million through QIP to repay debt

Suzlon Energy has raised USD 552 million through a qualified institutional placement to repay a part of the debt raised to fund the acquisition of Germany’s REpower Systems. About 43 investors from around the world have subscribed to the QIP.

Suzlon’s board approved the sale of 11.4 million shares for INR 1,917 a share. Post placement, the promoter’s stake in Suzlon Energy will be 65.91%.

Mr Tulsi Tanti chairman of Suzlon Energy said that “We funded 2 large acquisitions by raising debt and that was a concern for our investors. Our balance sheet is more comfortable now.’’ He added that the share sale would bring down Suzlon’s debt to INR 5,275 crore.

Mr Tanti said that roughly half the funds would be used to repay the debt it incurred to fund acquisitions of REpower and Hansen Transmissions. Suzlon might also use part of the fund to buy REpower shares from Areva and Martifer SGPS.

It is noted that Suzlon’s EUR 1.2 billion acquisition of REpower and EUR 465 million purchase of Belgian gearbox maker Hansen Transmissions International in 2006 have increased debt to 0.75% of equity, straining Suzlon’s balance sheet.

PGCIL clarifies on news regarding JV with Zee Network

Power Grid Corporation of India Limited has clarified with reference to news item appearing in leading financial daily titled "Power Grid plans foray into entertainment business" that it is not in talks with Zee Network Limited for a JV to foray into entertainment business and the news appeared in the daily has not been published by the company.

It was reported that Power Grid Corporation of India Limited is planning a foray into the entertainment space and is in talks with Zee Network Limited for a possible JV and that aims to leverage its extensive fiber optic telecom network to stream entertainment content in order to secure higher returns on investments, more than the regulated returns of 14% that it gets from its core business of power transmission.

The report had quoted a source as saying that “The move by PGCIL to rent out its fiber optic infrastructure is in line with its plans to diversify into areas with high returns and low incremental costs. While the power transmission business generates stable return on equity of 14%, the entertainment business has the potential to rake in higher returns through minimal investments on infrastructure.”

PGCIL owns and operates the bulk of India’s inter state power transmission assets and transmits about 45% of the power generated in the country. It has also developed a 19,000 kilometer long fiber optic telecom network and plans to expand its telecom and consultancy business.

NALCO board approves INR 409 crore CAPEX

It is reported that board of National Aluminum Company has approved INR 409 crore capital expenditure for implementation of up gradation program on its 4th stream of alumina refinery in Orissa.

The capacity of the Orissa refinery will be upgraded from 525,000 tonnes per annum to 700,000 tonnes per annum and that of bauxite mines capacity will be increased from 630,000 tonnes per annum to 682,500 tonnes per annum.

Global crude steel production in November up by 4% YoY

World crude steel production for the 67 countries reporting to the International Iron and Steel Institute was 109 million tonnes in November 2007 up by 4% YoY as compared to November 2006. Total world production is 1211 million tonnes for the first eleven months of 2007 up by 7.7% YoY over the same period of 2006.

The growth in crude steel production during November 2007 among regions was again led by Asia as usual

In ‘000 tonnes
Source IISI

Among the top 20 nations, China as usual stood first with 39.7 million tonne production of crude steel registering tremendous growth of 4.3% YoY as compared to November 2006.

In ‘000 tonnes
Source IISI

WTO rules against US duties on Mexican steel imports

A World Trade Organization panel ruled on Thursday against some US Anti dumping measures to combat imports of Mexican stainless steel, in another rebuff for a controversial US trade remedy.

The WTO found in a 45 page report that the US Department of Commerce imposed excessive dumping fees on steel from Mexico. But it upheld a complicated US method for calculating the tax, provided it is done fairly, in contrast to previous WTO decisions. The three member WTO panel told the United States to bring the steel duties into conformity with its obligations under the WTO agreement.

It said that “Dumping occurs when foreign producers export products at prices below cost usually because the exports have been subsidized or in an attempt to corner the market. In certain circumstances, trade rules allow governments to impose additional duties on dumped goods to protect domestic producers.”

The decision Thursday on stainless steel sheet and strip in coils deviated from previous panel rulings in finding that a US method for is not as such inconsistent with WTO rules. It also upheld the US Department of Commerce's dumping calculations in five reviews of Mexican stainless steel products.

Mr Susan Schwab US Trade Representative in a statement said that "This is further proof of what the United States has been saying all along that WTO rules do not prohibit zeroing and that WTO appellate body reports to the contrary have overreached." He added that those findings, however, would likely be overturned by the WTO's appeal body.

Mr Carlos Vejar an official at Mexico's mission to the WTO said that "This is obviously food for an appeal, but we will have to make a complete analysis." He added that the decision was a victory for Mexico. "It confirms that zeroing is prohibited in antidumping investigations."

But the WTO has consistently ruled against the US in disputes with the 27 country European Union, Canada, Japan and others for how it determines what antidumping fees to apply, known in trade jargon as zeroing. Panels have consistently found that zeroing leads to artificial and inflated margins of dumping and thus higher duties.

Sumitomo Metal and CSC plans a JV in Vietnam

Japanese Sumitomo Metal Industries Ltd has decided to launch a feasibility study regarding a JV with Taiwanese China Steel Corporation in a suburb of Ho Chi Minh City of Vietnam

The JV will manufacture and sell steel sheets and its facilities are expected to include a cold rolling mill, a continuous galvanizing line, and electromagnetic steel sheet production equipment.

Annual sales volume for the joint venture is expected to be 1.7 million tonnes and the cost of setting the joint venture up is projected to be more than USD 1 billion. The JV is likely to start production by 2011.

Sumitomo Metal Industries and China Steel jointly own an upstream JV at Sumitomo's Wakayama works in Japan called East Asia United Steel Corporation The partnership and the venture, formed in 2003, have resulted in higher operations at the plant and a tighter market in Japan. China Steel in August agreed to take a 15% stake in Sumitomo Metal's steel processing centre in Thailand. Sumitomo Metal then said it would take a stake in China Steel's planned Vietnamese venture.

Mr LN Mittal sees strong global demand for steel

Mr LN Mittal president & CEO of Arcelor Mittal said that global steel demand should hold up in the face of US subprime mortgage and financial market crises.

Mr LN Mittal told the Frankfurter Allgemeine Zeitung newspaper in an interview that "So far the financial market crisis has only impacted housing construction in the US and, to a much lesser degree, industry. I see no reason to lower positive forecasts for steel demand in South America, Europe, the Middle East and the Far East."

Mr Mittal said that “He expects to see demand for steel recover in the United States, where the housing market has been slammed by a collapse of the market for high risk mortgages. Many steel processors and sellers are starting to stock up their reduced inventories again.”

Mr Mittal added that he is not worried that rising steel exports from China would hurt the industry, because he felt that a complaint filed with the European Union and rising raw material prices would curb exports. He said "There will be further hefty cost increases next year, especially for iron ore and coke. That will likely dampen Chinese steelmakers' drive to export."

Japanese shipbuilders call for stable supply of SBQ plates

It is reported that Japanese Shipbuilders' Association of Japan told reporters that it will request the Japan Iron and Steel Federation to stabilize the steel plates supply.

Mr Masamoto Tazaki chairman of the Shipbuilders' Association of Japan during a press conference ion December 18th 2007 said that “Japanese shipbuilding industries have already taken several long term orders, once the steel material could not be delivered on time for processing, it will make a great impact on the entire industry.”

Due to strong shipbuilding usage steel plates demand from China and South Korea, Japanese shipbuilding industries have delayed in securing their material and some of them even delayed the shipment for two weeks long.

This is the second time that Japanese Shipbuilders' Association asked for the similar request to Japan Iron and Steel Federation.

ACCC extends coal quota at Newcastle Port

ABC News reported that The Australian Competition and Consumer Commission have rolled over the current coal quota system for the Port of Newcastle, while negotiations continue to try to resolve the coal loading bottleneck. ACCC has extended the current loading system for another 12 months.

Mr Joe Tripodi state ports minister said that is the right move. He said that "This is great news for workers in the coal industry. It's about making sure that they have some job security going forward and making sure they have a happy Christmas.

Mr Tripodi added that "The ACCC's decision means the current arrangements for allocating coal capacity will roll over into the new year and that will provide security to the industry."

The ACCC last week rejected an interim quota system based on rail contracts that the New South Wales Government had said was unfair and would squeeze out smaller mining companies.

ArcelorMittal receives CNV nod for outstanding shares of Acindar

ArcelorMittal announced that the Argentine Securities Regulator Comisión Nacional de Valores has approved its cash offer to acquire all the outstanding shares of Acindar representing 34.7% of the shares outstanding, as announced on October 2nd 2007. The Offer will be made directly to the shareholders of Acindar by ArcelorMittal’s wholly owned subsidiary Arcelor Spain Holding SL.

Acindar is the largest publicly traded steel company in Argentina. The company has been listed on the Buenos Aires Stock Exchange since 1948. ArcelorMittal currently owns a 65.3% stake in Acindar, through its subsidiary ArcelorMittal Brasil SA.

ArcelorMittal is offering Acindar’s shareholders ARA 5.75 in cash for each Acindar share they tender, representing a 19.5% premium over Acindar’s closing stock price on October 1st 2007. The 34.7% stake corresponds to 297,627,977 shares of Acindar as of December 20th, 2007 and represents a potential total transaction value of ARA 1,711 million, equivalent to USD546 million as of December 20th 2007. ArcelorMittal intends to fund the transaction entirely in cash.

Mr LN Mittal president & CEO of ArcelorMittal said "We are very pleased that the CNV has approved our tender offer for the remaining shares in Acindar and we believe our cash offer will be attractive to the minority shareholders. ArcelorMittal sees great potential in the Latin American steel market and this offer highlights our commitment not just to Acindar and Argentina, but also to the region."

JP Morgan is acting as exclusive arranger, dealer manager and agent of the offer, BBVA Banco Francés is acting as co agent and Bruchou, Fernandez Madero & Lombardi is acting as legal advisor to ArcelorMittal in connection with the offer.

The release added that “The transaction is strategically beneficial to ArcelorMittal as it will cause Acindar to become a core part of ArcelorMittal’s long products strategy, acting as a platform to grow and seek further opportunities in Latin America.”

Steel production cost to increase by USD 100 per tonne in 2008

According to Macqurie Research, the cost of steel production will increase by USD 80 per tonne in year 2008 and it could reach USD 100 per tonne adding freight cost.

It is forecasted that the price of iron ore will increase by 50% and accordingly steel products cost for Asia, not including China, will up by USD 40 per tonne and by USD 46.75 per tonne for China.

Analyst pointed out that steel price has already been experiencing the upward trend caused by high production cost.

Ruukki to supply suction anchors and steel plates to Aker Kværner

Rautaruukki has announced that it has signed an agreement with Aker Kværner Stord AS of Norway to supply 16 suction anchors and offshore steel plates. Ruukki will deliver the suction anchors and offshore steel plates for the oil and gas production platform in the Gjøa field, which is scheduled to come on stream in 2010.

The suction anchors and offshore steel plates will be delivered for the oil and gas production platform in the Gjøa field in the North Sea to the northwest of Bergen. Around 100 workers will be employed on the platform when it has been completed. The Gjøa field is estimated to have reserves 82 million barrels of oil and condensate and 40 billion cubic meters of gas.

Ruukki is to deliver 16 suction anchors to Aker Kværner Stord AS by the end of 2008. In addition, Ruukki will also supply offshore steel plates to Aker Kværner over a period of 18 months starting from the last quarter of 2007. The solid steel suction anchors will be 5.5 meters in diameter and nearly 20 meters in height and used to anchor the production platform to the sea bed. They will be sunk to a depth of some 360 to 380 meters and fixed to the bottom mud by vacuum. The suction anchors will be made with the help of a network of partners coordinated by Ruukki.

Mr Oskar Hauge sales manager from Ruukki Norge said that “Aker chose us because Ruukki is an experienced, reliable partner. We have earlier successfully completed many projects to schedule.”

Ruukki has previously delivered smaller suction anchors to Aker Kværner in 2004 Kristin-project.

Perilya sells Herald stake

It is reported that Australian mining firm Perilya Limited has sold its 8.86% holding in Australian rival Herald Resources Ltd for AUD 39 million and said that it will not compete with an offer from other miners.

Mr chief executive Len Jubber CEO of Perily said that “The decision not to make a competing offer for Herald reflected Perliyas disciplined and value orientated approach to merger and acquisition activities.”

Herald has been waiting for government approval for its USD 192 million Dairi mine in Indonesia for two years.

POSCO establishes POS-Philippine Manila service center

POSCO announced that its subsidiary POSTEEL have established a wholly owned subsidiary POS-Philippines Manila Processing Center Inc with a capital of USD 600,000 on December 19th 2007

Moly Mines enters strategic alliance with Molibdenos

Moly Mines Limited announced that it has entered into a strategic commercial alliance with Molibdenos y Metales SA of Chile. This powerful alliance brings together what is planned to be the world's next major molybdenum miner with the world's largest producer of molybdenum finished products.

The alliance blends the mining project experience of Moly Mines with the downstream processing and marketing skills of Molymet in a commercial relationship that aims to deliver significant financial benefits to the shareholders of both enterprises. The Strategic Alliance provides the framework for future co operation between the two companies, particularly with respect to the identification of future exploration and mining opportunities.

In the first undertaking of the Alliance, Molymet and Moly Mines have entered into a Tolling Agreement for 100% of molybdenum concentrates produced at the Company's Spinifex Ridge Molybdenum Project. The Tolling Agreement allows for the conversion of Spinifex Ridge molybdenum concentrates to technical grade molybdenum oxide, both in powder and briquettes form and ferromolybdenum. Both of these products are direct feed into the furnaces of the specialty steel industry. The Spinifex Ridge Molybdenum Project has reserves and resources to support a projected 20+ year mine life and under current plans it will produce an average, 24mlb per annum of molybdenum in concentrate.

Dr Derek Fisher CEO & MD of Moly Mines said that "Molymet is a world leader in the molybdenum industry and this alliance is a wonderful endorsement of our development strategy. We are delighted to complete these agreements which formalize our relationship and provides Moly Mines with a platform for further growth and expansion within the molybdenum industry."

Molymet is a publically owned Chilean corporation listed on the Santiago Stock Exchange and has been processing molybdenum concentrates since 1975. it has production facilities in Chile, Mexico, Belgium and Germany and treats approximately 150 million short ton per annum of molybdenum in concentrates at its various facilities, representing approximately 35% of world molybdenum consumption.

Nippon Steel upbeat on steel demand in Asia and US

Reuters reported that Nippon Steel Corp, the world's second biggest steel maker is finding it hard to meet strong demand for steel in Asia and the United States, denying worries that the effect of subprime loan problems will depress the emerging economies.

The report quoted Mr Akio Mimura president of Japan as saying that he expects steady expansion of the global economy to offset a slowdown in the US economy. He added that "Demand in Asia and the US for car sheet and parts is strong, making it hard for us to meet orders."

Mr Mimura said that "Japanese carmakers are upgrading their production plans. There is a big gap between the views of manufacturers and financial industry people, who are really pessimistic about the effect of subprime loan problems.”

Mr Mimura said Nippon Steel's stock price is too cheap at the current level and does not reflect the company's fundamentals. He added that “Shares in Nippon Steel have lost by 8% in 2007, battered by worries about the impact of the credit squeeze on emerging markets and the prospect of surges in iron ore and coking coal prices from next April. That has wiped out sharp gains in its stock price in the first half, a result of a series of measures Mimura took to expand its output and market capital, and guard itself against a potential bid from ArcelorMittal.”

Herald in talks with other parties after hostile bid from PT Bumi

Australian junior Herald Resources said it is now talking with other interested parties after receiving a hostile take-over offer from Indonesia’s Bumi Resources.

Herald said it has received approaches from a number of parties and is now holding discussions with those parties. In the interim, it advised its shareholders to do nothing in terms of Bumi’s AUD 2.25 per share offer.

Herald’s key asset is the Dairi zinc lead project in Indonesia. The project has been badly delayed by the process of acquiring a key forestry license from the Indonesian authorities. However, the resource is a high grade one and capable of supporting production of around 125,000 tonnes per year of contained zinc and 80,000 tonnes per year of contained lead.

Anglo in talks with Eskom over 17 million tonne coal project

Bloomberg reported that South Africa Anglo American Plc is in talks with South African power utility Eskom Holdings Ltd to develop a mine producing 17 million metric tons of coal a year.

Mr Ben Magara general manager of Anglo's South African coal business in an interview from Johannesburg said that “We are in talks with Eskom over New Largo, a deposit east of Johannesburg on which the mine would be based.

Argentinean crude steel output in November up by 20% YoY

It is reported that the production of crude steel of Argentina in November 2007 amounted to 490,500 tonnes up by 19.8% YoY as compared with November 2006. However, it decreased a little by 1.4% MoM.

The production of hot rolled products in Argentina in November was 464,600 tonnes up by 1.2% MoM from October 2007 and up by 3.5% YoY. The production of cold rolled products was 137,500 tonnes in November 2007 up by 16% MoM from October 2007.

The total production of crude steel from January to November 2007 reached 4.9 million tonnes down by 4.8% YoY as compared to January November 2006.

Japanese steel makers settle HRC export prices

It is reported that the negotiating meeting between Japanese blast furnace mills and long distant countries is going to the end and the FOB price for HRC is concluded as USD 590 per tonne to USD 600 per tonne.

Although buyers consider this price higher than expected, they still compromised and signed the supplying contracts with Japanese furnaces due to the global tight availability of HRC.

It is expected that the delivery price to Latin American market from Japanese blast furnace mills will be around FOB USD 540 per tonne in January, and it will reach even more than USD 600 per tonne in February and March.

The price negotiation for mid seasons after April between South Korean buyers is estimated to be held in January, 2008. Prices are predicted to be raised by around USD 150 per tonne.

SDI updates earnings guidance for Q4 of 2007

Steel Dynamics Inc announced that it expects fourth quarter 2007 earnings to be within the range of guidance provided in October 2007, excluding the October 26th 2007 acquisition of OmniSource Corporation.

SDI said that “This update is based on current information regarding the financial impact of the purchase of OmniSource, as well as quarter to date performance of the company’s operations.”

Mr Keith Busse chairman & CEO of Steel Dynamics said that "At the time of our October guidance, we promised a December update of our fourth quarter earnings estimates to reflect the anticipated financial impact of the OmniSource acquisition. Outside of the adjustments we are making today to reflect the OmniSource acquisition, our previous estimates of earnings per diluted share would be unchanged, with our current expectation being at the middle to low end of guidance. We are still in the process of determining final purchase price allocations for the OmniSource acquisition and the resulting impact on our fourth quarter earnings. However, based on current estimates we believe the acquisition to be dilutive to earnings by approximately USD 0.07 per diluted share, resulting in an updated fourth quarter earnings range of USD 0.95 to USD 1.00 per diluted share as compared to the USD 1.02 to USD 1.07 range that we provided in October. The October guidance did not include an estimate of OmniSource operations or purchase accounting adjustments.”

Mr Busse said that “Various positive factors exist to suggest a stronger year for flat rolled steels, including low inventories, limited imports, high steel prices abroad, and high ocean freight costs. We expect that by the beginning of the second quarter, shipping volumes and prices will have improved markedly. We also expect continued strength in structural and bar steels, which should benefit from continued North American investment in infrastructure, in institutional, industrial and distribution buildings, and energy projects. Of course, there are risks related to possible further deterioration in the U.S. economy and to specific steel-consuming sectors, but we believe the steel markets should strengthen in 2008 even without significant improvement in the US economy.”

De listing offer for ArcelorMittal Inox Brazil

ArcelorMittal announced that it has received a letter from BNDES Participações SA BNDESPAR disclosing its intention to sell its shares in the de listing cash offer for all the outstanding shares of the ArcelorMittal Inox Brasil SA announced on December 4th by ArcelorMittal.

ArcelorMittal currently owns a 57% stake in ArcelorMittal Inox Brasil.

BNDESPAR’s intention to sell in the Offer is subject to
1. A price representing the higher of
(a) ZAR 100 per preferred share, increased at a rate equal to the TR, a basic interest rate published by the Brazilian Central Bank, plus 6% per year, starting February 28th 2008, reduced by dividends and interest on capital paid from December 4th 2007 to the day of the settlement of the Offer
(b) The market price of the preferred shares at the time of the Offer

2. Payment in reais at the settlement of the Offer

3. Conclusion of the Offer on or prior to April 15th 2008.

Currently BNDESPAR owns 12.707.827 preferred shares of the Company.

Assuming that the conditions of the Offer proposed by ArcelorMittal are confirmed after the registration process with the Brazilian Securities Commission, then, assuming that BNDESPAR tenders its shares in the Offer, BNDESPAR’s shares, together with that of the shareholders of the ArcelorMittal Inox Brasil who have already communicated their intention to sell in the Offer, as disclosed in the press release issued by the Company on December 4th 2007, would permit ArcelorMittal to reach the minimum acceptance level required in the Offer for de listing to be achieved.

ArcelorMittal restated its intention to launch a de listing cash offer to acquire the 43% of outstanding shares in ArcelorMittal Inox Brasil it does not currently own and clarifies that it has already obtained final board approval to file the offer with the CVM and intends to do so as soon as possible.

Investment projects to allow steel exports from Colombia

Mr Edgar Jiménez a stockbroker told BNamericas that Colombia has the potential to become a steel exporter if steel projects that are underway in the country continue successfully.

Mr Jiménez from local stock brokerage Promotora Bursátil said that "We have become aware of further deals among steel companies that are underway. Those foreign investments will generate a production surplus and turn Colombia into a steel exporter.” He added that “There are interesting projects from Brazil's Votorantim at Acerías Paz del Río so that company's prospects are still looking good adding that if APR solidifies its plan to boost output and upgrade technology, it will be a major step toward accomplishing that goal."

Votorantim plans to expand APR's production from 330,000 tonne per year to 1 million tonne per year in 2009.

Colombia's steel consumption averages 1.2 million to 1.5 million tonne per year. Other steelmakers in the country include Siderúrgica Nacional and Hornasa, which produce more than half of the nation's output at 750,000 tonne per year.

Steelmaker Diaco owned by Brazil's Grupo Gerdau and steel company Comsisa, in the process of being purchased by Gerdau also operate in Colombia.

US coal industry benefiting from better domestic consumption - Fitch

Fitch Ratings recently said that fundamentals for the US coal industry are benefiting from improved domestic consumption after a weak period, greater exports and declining production in high cost basins.

Fitch said that “The outlook for the US coal industry is stable. However, regulatory uncertainty about carbon emissions has stalled plans for many new coal plant builds which will cap domestic demand in the medium term.”

Fitch said that the margin expansion will also be difficult in 2008 given that cost inflation is not expected to be offset by productivity gains.

The ratings agency added that spot pricing is firming in central and northern Appalachia given production declines and some production going to the export market. European demand for high British thermal units US steam coal is proving robust in the longer term as two and three year transactions are being completed.

Fitch said it believes that the metallurgical coal market will continue to benefit from tight supply and robust steel demand over the next 12 to 18 months.

Petrobras to buy plates from Usiminas for oil platform

Business daily Valor Econômico reported that Brazilian steelmaker Usiminas has closed a deal to supply 31,000 tonnes of heavy plates to federal energy company Petrobras.

As per report Petrobras will use the heavy plates to manufacture the P56 oil platform, with delivery slated to start in January in shipments of 3,000 tonne per month. Shipyard Kepel Fels in Rio de Janeiro state will be in charge of the platform construction. The deal’s value was not disclosed.

Usiminas plans to enter the competition next year to supply heavy plates for other Petrobras platforms such as P57 and P55. Other steelmakers in Brazil including Gerdau and CSN have unveiled plans to start production of heavy plates.

US Steel appoints Ms Ritchie for Indiana and Michigan

United States Steel Corporation announced that Ms Jill E Ritchie manager state governmental affairs will now be responsible for overseeing US Steel's state and local governmental affairs matters in Indiana and Michigan. Ms Ritchie will be located at Gary Works and will report to Christopher Mr J Masciantonio general manager state governmental affairs.

Ms Ritchie joined US Steel's Governmental Affairs Department after spending five years as an attorney in the company's Law Department, where she specialized in workers' compensation litigation in the Labor and Employment section. Before arriving at US Steel in 2001, Ms Ritchie was a labor and employment attorney at a major Pittsburgh based law firm.

Mr Masciantonio said that "Jill has been an effective contributor to US Steel's Governmental Affairs efforts since joining our department in 2006. She has spent a significant amount of time working with elected leaders, community organizations and government agencies on issues that are important to our Indiana and Michigan operations and the employees who work there. Under Jill's newly expanded leadership role, we expect to increase the effectiveness of our company's ability to achieve results when working with state and local government agencies and elected officials on issues important to steel manufacturing."

Adnoc and Linde form a gas JV in Abu Dhabi

It is reported that Germany's Linde has set up a 49:51 JV named Elixier with the United Arab Emirates' Abu Dhabi National Oil Co for the production and long term supply of industrial gases to customers in Abu Dhabi.

In the first phase of the joint venture, the companies will build a USD 65 million air separation plant in the industrial zone of Ruwais in Abu Dhabi. The new plant will supply nitrogen from the end of 2009 to industrial customers in Ruwais and will also produce liquefied nitrogen and oxygen.

Mr Aldo Belloni executive board member of Linde said that "This joint venture is of major strategic importance to us and is the logical expansion of the previous collaboration of our engineering division with Adnoc in the petrochemical industry.”

Gasco awards gas pipeline EPCC contract to Dodsal

WAM news agency reported that Abu Dhabi Gas Industries has awarded USD 152.3 million contract for the engineering, procurement, construction and commissioning work for its new natural gas liquid pipeline network to Dodsal Engineering and Construction.

As per report, work started on November 11th 2007 and the network should be completed within 23 months, including commissioning and testing. The old pipeline network will be demolished once the new one is in place.

DP World invests in two Wenzhou terminals in China

It is reported that DP World will invest CNY 1.2 billion (USD162.48 million) in building two 50,000 tonne multi use terminals in the first phase of Yueqing Bay Port Area at Wenzhou in Zhejiang province of China.

As per report, DP World has signed a letter of intent with the municipal government of Wenzhou on December 10th 2007 for the port project and work on the project is expected to be started at the end of 2008 or early 2009.

The port area will have a deep water capability, integrating transport, harbor industries, logistics, shipbuilding and recreation. The first phase of Yueqing Bay Port Area project, with an area of 60.8 square kilometers, will involve the building of 43 berths with a capacity of 82 million tons, including 18 berths with each having a annual capacity of more than 50,000 tons.

New office bearers elected for Pakistan Ship Breaking Association

It is reported that Mr Azam Malik and Mr Mehboob Ali have been elected unopposed chairman and vice chairman of the Pakistan Ship Breakers’ Association respectively at the annual general meeting and elections for new managing committee held on December 13th 2007.

Central executive committee members were also elected unopposed. They are Dr Diyaram Essarani, Mr Mohammad Ikhlaq Memon, Mr Abdul Sattar Baghani, Mr Abdul Ghaffar and Mr Feroz Ali Panjwani.

ALEL signs PPA with NTDCL for Lakhra power plant

Daily News reported that Pakistan’s Associated Lakhra Energy Limited and National Transmission & Dispatch Company Limited have signed the power purchase agreement for the 3x50MW coal fired Lakhra power plant. Lakhra power plant, set up by WAPDA in 1996 is Pakistan’s only coal fired power plant and is currently producing about 30 MW of power from Lakhra coal.

ALEL had been awarded the project through a competitive bidding process and has undertaken to rehabilitate the plant and ramp up production to at least 102 MW within 9 months. ALEL has been leased out the plant for 20 years.

Mr Tariq Hameed federal minister for water & power, while speaking at the signing ceremony, stressed the need for Pakistan to broaden its energy mix and capitalize on coal for cheap power generation. He said that “This is the first time we are leasing out a power plant to the private sector and I am very pleased that this project will be completed and brought to the highest international standards within 2008.”

Mr Iqbal Z Ahmed chairman of ALEL said that the coal based power generation is essential for Pakistan to ensure quick and affordable electricity. He added that “The successful rehabilitation of the Lakhra power plant will encourage local and foreign investors to look to coal for power generations.”

Mr Munawar B Ahmad MD of PEPCO said that while 74% of China’s, 55% of India’s and 22% of America’s energy mix are coal based, in Pakistan coal based power generation represents less than 0.5% of the energy mix. He added that “We went terribly wrong in planning and implementing coal based power and the projects such as this one are essential for Pakistan.”

Takreer, Neste Oil and OMV form a JV to make base oil

It is reported that Abu Dhabi Oil Refining Company’s subsidiary Takreer, Finland's Neste Oil and Austrian OMV are planning form a 60:20:20 JV to make base oil. The parties signed the agreement in Abu Dhabi which includes basic principles for the design, construction and operation of the base oil facility and the commercial terms of the project.

The Front End Engineering Design is planned to be assigned by the 2nd quarter 2008. The parties intend to make a final decision on the investment after the Feed phase.

The new JV will have an annual capacity of 500,000 tonnes. The plant will produce sulfur free, Very High Viscosity Index VHVI Group III base oil at Ruwaisin Abu Dhabi. The base oil will be used for blending top tier lubricant.

The project combines the strengths of all 3 parties in design, production and marketing high performance base oils. Neste Oil will bring in technology and production knows how and will initially be responsible for marketing of the products. OMV will bring in know how in base oil blending and marketing experience.

KRIBHCO to set up urea plant in Oman

ProjectsToday reported that Krishak Bharati Cooperative is planning to set up a 2 million tonnes per annum urea plant in Oman and has signed a MoU with Oman Oil Co regarding the purpose.

KRIBHCO along with IFFCO, already have 2 facilities in Oman with an annual production capacity of 1.65 million tonnes per annum. In the 2 facilities of Oman India Fertilizer Co, Oman Oil Co has 50% stake while both KRIBHCO and IFFCO hold 25% each.

India and Pakistan set to lock horns over hydel project

BS reported that Pakistan is likely to drag India into yet another international arbitration over the construction of a hydro power project in Kashmir over the Jhelum river in Pak occupied Kashmir.

Pakistan’s intention of creating roadblocks in the completion of the 330 MW Kishenganga power project that is already under construction by the National Hydro Power Corporation at village Kralpora in Baramulla in Kashmir were clear when it announced construction of a mega power project downstream on the Kishenganga.

Pakistan cabinet approved the 969 MW Neelum Jhelum hydropower project in PoK that would be constructed by a Chinese consortium. Pakistan’s plan is based on a clause in the Indus water treaty of 1960 that governs the distribution of river waters between the two neighbors, which entitles it to priority right over use of Jhelum waters. The treaty gives the right of unhindered use of 3 western rivers of Jhelum, Indus and Chenab to Pakistan and on the Easters rivers of Beas, Ravi and Sutlej to India.

From Islamabad’s point of view the Neelum Jhelum project has been necessitated by a clause in the IWT, which permits the construction of hydro electric projects on the tributaries of the river Jhelum by India, provided it does not adversely affect any existing uses by Pakistan on the same tributary.

In case Pakistan is able to raise the dam of the project at Nausheri before the Kishenganga dam is ready, Islamabad would be able to say that Kishenganga was hindering its power project and therefore claim priority rights on the use of Jhelum waters. This, if upheld by an arbitrator, would mean the end of Kishenganga project for India.

However, sources in India’s ministry of water resources said that Pakistan could always seek arbitration from neutral experts on Kishenganga as it had done in Baglihar, where the work was held up for many years till a World Bank appointed expert upheld India’s case this year. The Union Cabinet had given sanction of INR 2238.67 crores for the project in August 2007.

Islamabad has given itself an 8 year deadline for the Neelum Jhelum project and has said it would invoke the Indus water treaty against India.

Anhui Tianda orders for PFQ based seamless tube mill

It is reported that Chinese tube producer, Anhui Tianda Oil Pipe Co Ltd has placed an order with SMS Meer for the supply of a premium quality finishing technology based 0.5 million tonne capacity seamless tube plant, which will roll maximum tube diameter of 9 5/8”. Commissioning is scheduled for 2009.

SMS Meer will provide Anhui Tianda Oil Pipe with a comprehensive PQF® plant solution. This comprises the key components of the rolling mill equipment, including the media systems and the complete automation, as well as the whole engineering, project management, erection supervision and commissioning and hands on training of the operating personnel.

PFQ technology allows rolling of thin walls seamless tubes with very close tolerances, lower material and energy consumption during production, new possibilities for higher material grades and greater flexibility in the rollable dimensions. It also significantly reduces emissions and has a maintenance friendly modular design that allows standstill times to be shortened and hence productivity to be increased.

Following the introduction of this new technology in 2003, the output of PQF® tubes will reach 4 million tonnes in 2008. The PQF® technology has thus established itself on the world markets as the leading technology for the production of seamless tubes. Great interest and a high demand for the modern rolling technology currently exist in particular in the high growth countries China, India and Russia.

Chinese plate outputs in 11 months of 2007 up by 47% YoY

It is reported that China’s domestic medium and special heavy plate output in November 2007 stands at 4.5261 million tonnes up by 24.58% YoY.

As far as daily output concerned, medium and special heavy plate in November 2007 was 150,900 tonnes up by 1,500 tonne daily or 1% MoM as against daily output of 149,400 tonnes in October 2007.

The output during January to November 2007 period is up by 475,538 tonnes or 36.47% YoY.

Baosteel's pipe export hit record high in November 2007

It is reported that Baosteel’s steel pipe export has surpassed its expectation and hit the record high both on seamless and ERW pipe as it exported 215,000 tonnes of seamless pipe and 65,000 tonnes of ERW pipe by the end of November 2007.

On the other hand, new product development and technology advancement also make Baosteel excel its competitors. Among those pipe products, 3 Cr anticorrosive pipe and low temp pipe have exported to America and SEA.

Besides, the export of high yield strength pipe, big thickness API pipe and high density alloy pipe have a dramatic growth. Especially high pressure BG110T pipe has been awarded a good reputation by EOG American group.

Chinese HDG makers meet to discuss EU AD investigation

It is reported that China Iron & Steel Association organized the second responding conference in Beijing to help Chinese producers to cope with the investigation launched by EU on December 14th 2007 to initiate an anti dumping investigation against certain hot dipped metallic coated iron or steel flat rolled products.

As per report, CISA and HDG producers agreed that EU's allegation of dumping was unconvincing and Chinese enterprises will make full preparations to defend themselves.

As per EU rules, all interested parties should request a questionnaire or other claim forms as soon as possible, but not later than 10 days after the publication of EU's notice. Samplings and claims for market economy must reach the Commission within 15 days.

Shenzhen Bank shareholders approve sale stake to BaoSteel

It is reported that Shenzhen Development Bank Co Ltd’s shareholders have approved plans to place 120 million new A shares with Baosteel Group, parent of Baoshan Iron & Steel Co Ltd, at CNY 35.15 per share.

The deal is subject to the approval of banking and securities regulators.

Baosteel Group will become the bank's second largest shareholder after the deal, while US investment firm Newbridge Capital will see its holding fall to 15.8% from 16.7% although it will remain the largest shareholder.

Earlier this month, the bank announced the placement plans, which are to raise about CNY 4.218 billion to supplement working capital.

SHSICC established in Shanghai

It is reported that Shanghai Federation of Industry & Commerce Steel International Chamber of Commerce has been in Shanghai, which is the steel capital of China.

The purpose of SHSICC is to foster healthy progress for international steel trade and wholeheartedly serves its members via providing information and consultancy, integrating high quality resources, decreasing cost, searching market opportunities, safeguarding legal rights and reasonable demands.

During the inaugural conference Mr Patrick Duan chief representative of China region with Midland Resources Holding Ltd was elected as the president of SHSICC. Company members including Voestalpine Intertrading (China) Co Ltd, Shanghai Baomin Iron & Steel Group Corporation, Baowang(UK) International Co Ltd and CBI China were elected as vice president company members. Mr Ricardo Wang and Ms Alice Ren with Mysteel Research Institute are chosen to be the general secretary and secretary of SHSICC.

Other company members include
1. Shanghai Minmetals Materials & Products Corp
2. GMT Shipping (HKG) Ltd’s Shanghai Representative Office
3. Yieh Co Ltd
4. Shanghai Haitai Steel Tube Co Ltd
5. Shanghai National Metals Co Ltd
6. Shanghai Wubo Steel Structure Material Co Ltd
7. Shanghai Huaneng Export Ltd

China’s province wise crude iron ore production in 11 months

It is reported that China has exported 64.14 million tonnes of crude iron ore in November 2007 up by 5.5% YoY as against 60.79 million tonnes in November 2006.

The province wise crude iron ore production is as under

In Million Tonnes

During January to November 2007 period Hebei has accounted for 43.6% of the total crude iron ore production share as compared to 41% in January to November 2006, reflecting stronger growth than other provinces.

The change in share of various provinces in crude iron ore production is as under

Yunnan Tin reports record production and sales in 2007

According to Antaike in Beijing, China Yunnan Tin Company’s sales had exceeded CNY 12 billion by December 10th 2007 and that it plans to expand its annual revenue to CNY 18 billion by 2009.

Production of Tin at Yunnan Tin Company has grown by 18.7% in the year to date, while total non ferrous metals output has risen by 6.7%. Meanwhile the company’s production of tin semis and tin chemicals has exceeded 10,000 tonnes this year.

Yunnan Tin produced 52,399 tonnes of refined tin in 2006 including production from its STI joint venture in Singapore and is this year vying with Indonesia’s PT Timah to be the world’s largest tin producer.

China to be net coal importer for most of 2008 – NDRC

It is reported that China, the world's biggest energy consumer after the US, will remain a net coal importer for most of 2008 on energy demand and constraints on exports.

The Beijing based National Development & Reform Commission said that outward shipments of the fuel have very limited room to rebound as the appreciation of the nation's currency increases export costs and as long-term contract volumes decline.

NDRC said that “Coal imports will rise slightly in 2008. Chinese coal fired electricity generation may rise by 12% in 2008 and thermal power units will account for 80% of additional capacity. China coal demand growth may slow to between 6% and 8% as the government's efforts to control economic growth take effect and curb consumption of the fuel by the power, steel and property construction sectors.”

Sunrise inks LoI for Cao Tian iron ore mines in Hunan

It is reported that Sunrise Consulting Group Inc has signed a letter of intent with Cao Tian Iron Ore Mines in ZhuZhou City of Hunan Province in China.

The agreement gives Sunrise Consulting Group rights to mine this particular area of the region for at least 30 years and letter sets forth the basic terms and conditions under which both parties have agreed to.

Sunrise Consulting Group Inc will issue 1 million Shares of Preferred stock to own 100% of the mining rights when signing the final agreement. These shares will have guaranteed buyback options within 24 months at USD 1 USD per share and the total buyback will be USD 1 million.

This particular parcel of land stretches to 3 square miles and the mountain has estimated reserves of 3 million tonnes of iron ore that can be mined over the next 30 years.

Sunrise Consulting Group plans to rapidly move forward in accordance with terms and conditions set forth in the proposed agreement.

Chang’an Automobile starts making own hybrid car

Xinhua news agency reported that Chinese automaker Chang’an Automobile group has started making its own hybrid cars. Xinhua said that “This shows Chinese automakers have grasped the core technology of making hybrid cars.”

It is noted that fuel economy figures little in consumers’ purchasing decisions in China. Hybrid cars are consuming 20% less fuel than ordinary cars of the same size and also expensive since the government offers buyers no incentives to purchase them. Toyota Motor Corp was the first carmaker to build hybrid cars in China.

Japan’s Nikkei said that the hybrid vehicle made by Chang’an is based on a 2 liter compact wagon that will be able to travel 100 kilometers on 6.8 liters of gasoline and it will be officially released in 2008. Nikkei said that the new hybrid is close in size to Toyota’s Prius hybrid, which the Japanese automaker has assembled and sold in China since late 2005.

Changan’s new offering will cost around CNY 150,000 roughly CNY 20,000 more than the base vehicle but just half as much as the Prius. It added that Chinese sales of the Toyota hybrid were down by 86% to 299 units in the January to October 2007 period from January to October 2006 period as the vehicle’s CNY 300,000 price tag dampened its popularity.

Ukrainian steel export quota to EU increased to 1.35 million tonnes for 2008

Ukraine’s Industrial Policy Ministry's press service told Ukrinform that Ukraine's export quota on supply of steel products to the EU in 2008 will be 1.35 million tonnes.

Ukraine had reached an agreement with EU in June 2007 on trade of some steel products, which envisages upped export quotas by 31.4% from 1,004,500 tonnes to 1.32 million tonnes.

Ukraine expects the EU to lift quotas on steel export after Ukraine's' accidence to the WTO.

OMK’s Vyksa plant to install a 1.2 million tonne plate mill

It is reported that Russian pipe major OMK’s Vyksa Steel has placed an order with SMS Demag for the supply of a heavy plate mill and will be joining the ranks of the plate producers when the new rolling mill is commissioned. The new mill is to be installed at Vyksa, an industrial town in the region of Nizhny Novgorod, about 250 kilometers to the east of Moscow and will go into operation in mid 2010.

The annual capacity of the single stand rolling mill is 1.2 million tonnes of finished plates in widths between 900mm and 4,800 mm and thicknesses from 7mm to 150 mm. The maximum plate weight is 40 tonnes. The mill will allow the production of plates up to the strength class X 120.

With this plate mill, Vyksa Steel will be able to produce plates required for manufacturing high strength oil and gas pipe lines as well as serve mechanical engineering, shipbuilding and construction sector.

SMS Demag’s scope of supply comprises the whole of the mechanical equipment, with two slab furnaces, the mill stand, the plate cooling system, the hot plate leveler, the cooling beds, the shearing line and the plate finishing line with a 9/5 cold plate leveler. SMS will also supply the complete electrical system, the drive engineering and all of the automation systems including Level 3 production planning system Level.

For the production of plates of high strength tube steels, the mill possesses a mill stand with a rolling force of 120 MN and CVC plus® technology as well as a newly developed two part spray cooling system. The front part of the cooling system includes an extremely efficient high pressure station combined with special cooling headers. This allows it to achieve the very high cooling rates required for direct quenching out of the rolling heat. Pinch rolls ensure good plate flatness even at high cooling rates. The spray cooling in the rear section operates at a lower pressure, and this section is therefore used for accelerated cooling (ACC). A pre-leveler is installed in the entry section of the plate cooling system.

Palmary extends offer for Consolidated to January 1st 2008

Ukraine's Palmary Enterprises Thursday announced that it is extending its offer for the shares of Australian manganese miner Consolidated Minerals to January 1st 2008. Under the Corporations Act, the offer was automatically extended to close at 7:00 PM Melbourne time on January 1st 2008.

Palmary said that its voting power in Consolidated Minerals had increased to more than 50% on December 18th 2007 and this was within the last seven days of the offer period.

Palmary earlier this month raised its cash offer for Consolidated to AUD 5 per share from its earlier bid of AUD 4.7 a share, as it sought to ward off a rival offer from Pallinghurst Resources Australia. Pallinghurst has since conceded defeat, and agreed to sell its 4% stake in Consolidated to Palmary.

Consolidated Minerals owns and operates the Woodie Woodie manganese operation and the Coobina chromite operation in the Pilbara region of Western Australia, as well as the Kambalda nickel operations located in the Eastern Goldfields region of Western Australia.

ArcelorMittal to increase long product prices in CIS

FIS reported that is planning to increase prices for long products in the CIS countries by USD 20 per tonne to USD 30 per tonne.

The report added that the release price of rebars from ArcelorMittal Krivoy Rog in Ukraine will increase to total USD 620 per tonne to USD 630 per tonne in January 2008 as compared to USD 580 per tonne to USD 600 per tone.

Earlier it was reported that ArcelorMittal was planning an increase of by USD 30 per tonne for Turkish, Mediterranean, North America and Middle East markets.

Tenova LOI Italimpianti to supply walking hearth furnace to Mechel’s Izhstal

It is reported that Tenova LOI Italimpianti has received an order from Siemens VAI Metals Technologies Srl for supply and installation of a walking beam furnaces required under modernization program of the existing rolling mill of Mechel’s Izhstal OAO plant located at Ishvesk in Udmur Republic of Russia.

Tenova LOI Italimpianti has been awarded with an order, relevant to the installation of a new 90 tonnes per hour walking hearth furnace the furnace will be operated to reheat billets of different steel grades such as structural steel, tool steel, high speed tool, martensitic and ferritic steel grades. The furnace will be equipped with last generation Tenova LOI Italimpianti flameless burners.

Tenova LOI ITALIMPIANTI is a leading supplier of industrial furnaces and services for the metal industry. Tenova, former Techint Technologies, design and supplies advanced technologies, products and services for the metal and mining industries. It has received order for 3 walking beam furnaces from MMK, for revamping of a walking hearth furnace I Mecehel’s Romnian unit and supply of an EAF in Ishvesk in Russia.

Caspian pipeline accord signed

It is reported that the governments of Russia, Kazakhstan and Turkmenistan signed an agreement on the construction of the Caspian gas pipeline in Moscow. The agreement was signed by Russian Industry and Energy Minister Mr Viktor Khristenko in addition to his Kazakh and Turkmen colleagues. The signing took place in the Kremlin following talks between Russian President Mr Vladimir Putin and Kazakh President Mr Nursultan Nazarbayev.

The construction of a gas pipeline from the Belek compressor station outside Turkmenbashi in western Turkmenistan to the gas measuring station Alexandrov Gai in Russia's Saratov region requires the overhaul of the existing Okarem-Beineu pipeline from the southern part of Turkmenistan's Caspian coast to the Central Asia Center pipeline as well as the Central Asia Center pipeline itself.

As part of the agreement, Turkmengaz will build a new gas pipeline with capacity of up to 10 billion cubic meters per year to the Karabogaz gas measuring station in Kazakhstan. Turkmenistan has also provided guarantees that Gazprom will receive up to 10 billion cubic meters of gas per year in line with an earlier agreement. The agreement will remain in force until the end of 2028 and can be automatically extended each year after that.

Kazakhstan's gas transportation capacity along this route is to be increased to 20 billion cubic meter of gas per year so that it can transport additional volumes of Turkmen gas as well as 10 billion cubic meter of Kazakh gas.

Russia has pledged to purchase 10 billion cubic meter of gas from both Kazakhstan and Turkmenistan as well as expand the CAC pipeline on its territory to make it possible to handle this amount of gas.

The three countries may agree in the future to increase the volume of gas to be transported along this pipeline in excess of the aforementioned figures.

The Pre Caspian gas pipeline is considered by some observers to be an alternative to the Trans-Caspian gas pipeline from Turkmenistan to Azerbaijan, which can transport Turkmen gas to Europe bypassing Russia although Turkmenistan has said it has enough gas to fill both pipelines. Meanwhile, some experts have said the Trans-Caspian project remains virtual. Problems hindering the construction of the pipeline include the unresolved status of the Caspian Sea and continued disputes between Turkmenistan and Azerbaijan on the ownership of several gas fields.

Russian scrap exports in 9 months dips by 13.6% YoY

It is reported that the exports of Russian scrap totaled 6.152 million tonnes in the January to September 2007 down by 13.6% YoY from 7.125 million tonnes in the January to September 2006.

The export details to major destinations are as under

Volume in million tonnes
Change is YoY

The total scrap exports from Russia during 2007 are predicted to reach 8.203 million tonnes.

Ukrainian iron ore exports in 11 months up by 2.6% YoY

The association of Ukrainian mining enterprise Ukrrudprom has estimated that Ukraine’s iron ore exports January to November 2007 at 18.759 million tonnes up by 2.6% YoY.

As per report, the details are as under

Volume in million tonnes
Change is YoY

Ukrainian GDP growth in 11 months reported at 7.2%

According to the Ukrainian State Statistics Committee, Ukraine GDP in growth January to November 2007 went up by 7.2% YoY as compared to January to November 2006. GDP grew by 6.9% in November 2007 compared to November 2006.

The Statistics said that Nominal GDP rose to a tentative UAH 630.019 billion in January to November 2007, including UAH 68.907 billion in November alone and the GDP deflator index totaled 121.3% in January to November 2007.