POSCO steel project site in Orissa becomes a war zone

It is tragic that the situation at POSCO’s proposed steel plant site in Orissa has worsened recently, after an armed attack by Pro POSCO faction on Anto POSCO faction last week, forcing Anti POSCO group to retreat from the barriers they had erected to prevent the entry of police and company officials.

On Sunday, the protestors held a rally in Dhinkia, the stronghold of the anti POSCO faction to announce their decision to take to arms if there is any forced eviction. The report cited a villager as saying that ''We have been peaceful so far but after the attack we will take up arms. Let there be bloodshed. We are ready to face the challenge.”

Mr Abhay Sahu head of POSCO Pratirodh Sangram Samiti said that ''The government should not try to play the game with the blood of the common people who are resisting POSCO. Bloodshed will invite bloodshed. Violence will invite violence.”

Orissa government, after having confirmed that the construction would begin on April 1st 2008, has to come up with a miracle to keep its word, as the situation is quite tense and any action by police or government supported Pro POSCO faction is likely to ignite fuse and lead to bloodshed.

SAIL RSP achieves best ever November performance

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant has achieved 192,798 tonnes of hot metal, 180,834 tonnes of crude steel and 172,345 tonnes of saleable steel during November 2007. These figures are not only the highest for any month of November since inception of the steel plant but also in line with the annual performance plan for the month. Output of finished products namely plate mill plates, hot rolled coils for sale, hot rolled plates and CRNO steel too was the best compared to any November since inception of the plant.

Backed up by this outstanding performance, RSP has come up with best ever performance for any April to November period in major production centers. Production of hot metal stood at 1.45 million tonnes, crude steel reached 1.35 million tonnes and saleable steel stood at 1.33 million tones, corresponding to fulfillment of 100% of annual performance plan in hot metal and 99% in crude steel & saleable steel. During this period dispatch of steel reached all time high of 1.30 million tonnes.

Best ever figures for April to November period were also achieved in finished products like plates from plate mill with 0.318 million tonnes, total hot rolled coils with 1.05 million tonnes, hot rolled coils for sale with 0.49 million tonnes, hot rolled plates with 0.21 million tonnes and CRNO steel from silicon steel mill with 52,893 tonnes.

Throughout this financial year major areas like production of hot metal, crude steel and saleable steel have maintained capacity utilization of more than 100%, while during the month of November 2007 capacity utilization level has been impressive at 117% in hot metal, 116% in crude steel and a remarkable 126% in saleable steel thus bringing down cost of production.

In the process parameter front too, significant improvement has been recorded in the coal to hot metal ratio, specific energy consumption, metallic input per tonne of crude steel and higher LD converter lining life which has contributed significantly to controlling costs.

POSCO asked to quit India

It is reported that the representatives of seven mass movements struggling against displacement, SEZs and anti people industrialization in Orissa has demanded that the South Korean steel company POSCO should quit India.

The activists who visited the trouble torn POSCO project site said in a statement that the attack on the villagers opposing the steel venture at Balitutha locality in Erasama Block of Jagatsinghpur district on November 29th 2007 had added strength to the movement against the project. The organizations further demanded that the Naveen Patnaik Government immediately withdraw police from the POSCO project site.

They said that “The police and the administration, instead of protecting the agitating people, are preparing to work as rear guard action force in the interest of POSCO and the anti people forces.”

They added that “In the immediate future the situation in Dhinkia, Gadakujang and Nuagaon gram panchayats, in every possibility, may become explosive and for this the government and POSCO shall be held responsible. The people of Dhinkia are in readiness to face the ensuing Nadigram style combined assault by the police and the armed goons of the ruling Biju Janata Dal who had attacked them and chased them away from Balitutha on November 29th evening.”

The team that visited the POSCO project area comprised of
1. Mr Lingaraj of Samajbadi Janparishad
2. Mr Bansidhar Parida of CPI(ML) Liberation
3. Ms Saroj of Paschim Orissa Krushak Sangathan Samanwaya Samiti
4. Mr Bhagaban Majhi of Prakrutika Sampad Surakhya Parishad
5. Mr Rabishankar of Gandhamardan Surakhya Andolan
6. Mr Rajendra Sadangi of Loka Pakhya
7. Mr Azad of Niyamgiri Surakhya Samiti

In order to highlight their demands these organizations will organize agitations in different parts of the State in a synchronized manner on December 12th 2007.

JSW to open 600 steel retail outlets in nest 2 years

It reported that JSW Limited is planning to open 600 steel retail outlets in India in the next 2 years to provide best quality steel to customers at competitive prices.

Mr Sajjan Jindal vice CMD of JSW said that "It is looking at opening 600 retail outlets in the next 2 years time to market steel in India." He added that the reason for wanting to open such retail outlets was the variation in steel prices from company to company.

Mr Jindal pointed out that India uses only 50 million tonnes of steel every year as compared to 500 million tonnes in China. He added that the exclusive JSW showrooms will have on display and sell all types of JSW steel, ranging from HR coil to color coated steel.

He said that "JSW aims to provide a unique experience of buying steel products through branded distribution channels. By March 2008, it is looking at 25 such shops in South and West India.”

JSW's steel production at its two plants in Karnataka and Tamil Nadu at present is around 4.8 million tonnes and by next year, production is expected to go unto 8 million tonnes per annum. With steel plants coming up in West Bengal and Jharkhand, JSW group's steel production is expected to increase to 30 million tonnes by 2020.

Indian government may consider 25% stake sale in RINL - Report

BL reported that union government will soon be considering a decision to offload 25% stake in public sector steel major Rashtriya Ispat Nigam Limited.

The report cited Mr PK Bishnoi CMD of RINL as saying that “The finance ministry had sent a proposal about a year ago, to consider offloading some stake and the RINL board has given its go ahead for the sale of 25% stake in the company, of which 5% would go to the employees and the remaining 20% to the public.”

According to Mr Bishnoi, union government is considering disinvestment of in 2 ways, one where 49% stake could be offloaded and another where 25% stake could be diluted.

An official in the steel ministry said that the proposal is being considered within the ministry and an opinion would also be sought from the Department of Disinvestment. He added that “Once clearances from the concerned ministries and departments come, a formal proposal would be placed before the government for the final approval. Since it involves a decision to be taken at a high level no formal proposal has been put up before the government. However, the ministry feels that if there is a portion that is sold off then overall corporate governance of the company and the whole process would be done in two phases.”

RINL had reported a net profit of about INR 1,350 crore for 2006-07 fiscal and the equity capital is around INR 5,000 crore. Currently, union government owns the entire 100% equity in RINL. It is also carrying out an expansion program to increase its production capacity from the present 3 million tonnes to 6.3 million tonnes by 2010, with an investment of INR 9,000 crore.

SAIL improves offer for Malvika Steel - Report

The Telegraph reported that Steel Authority of India Limited has matched Jayprakash group’s offer price of INR 207 crore for Malvika Steel. Mr SK Roongta chairman of SAIL said that it had matched the bid of the Jayprakash group and the matter is now before the appellate tribunal, which would decide the issue.

The debt recovery tribunal had invited bids from interested parties for Malvika Steel and SAIL was initially outbid by Jayprakash Group. In June 2007, the debt recovery tribunal was in favor of awarding the plant to Jayprakash, but SAIL is back in the fight with a matching offer and a promise to invest INR 300 crore in Malvika Steel.

The debt recovery tribunal is auctioning the entire plant, located on 740 acres at Jagdishpur in Amethi to recover outstanding loans. The INR 300 crore steel projects were left unfinished in 1998, within 10 months of getting off the ground. Malvika Steel owes nearly INR 1,366 crore to IFCI Limited alone.

SAIL is likely to use the plant for processing activities, using steel from its plants in eastern India. The Jagdishpur plant could supply to markets in Uttar Pradesh and even Nepal. It is part of SAIL’s marketing strategy to have processing units near markets, to add value to its products.

Adhunik and Abhijit ink MoA with WBDIC for steel plants in WB

It is reported that Adhunik Corporation and Jas Infrastructure Capital Limited have signed an INR 18,000 crore memoranda of agreement with West Bengal Industrial Development Corporation for setting up steel projects.

Adhunik Corporation would be setting up a 1.1 million tonne integrated steel plant with a 1,000 MW captive power plant and a 1 million cement plant at Raghunathpur Block II in the Purulia district of West Bengal at an investment of INR 7,200 crore.

The investment in the Abhijit group would be INR 10,800 crore, comprising a 2 million tonne steel plant and 850 MW captive power plants. The first phase of 1 million tonne steel plant and part of the power project would entail an investment of INR 7,000 crore. It has already applied for coal blocks with the central government. The first phase would be completed over the next 5 years and the location of the Abhijit group’s project is north of Asansol.

WBIDC and West Bengal Mineral Development & Trading Corporation would facilitate land, coal and water for the project.

Monnet Ispat to increase Orissa plant capacity to 2.5 million tonnes

Express News Service reported that Monnet Ispat and Energy Limited, which had signed a MoU with the Orissa government to set up a 0.25 million tonne capacity steel plant, have decided to enhance the production capacity.

Mr Sandeep Jajodia MD of Monnet Ispat and Energy Limited after meeting Mr Naveen Patnaik chief minister of Orissa told media that the company is now planning to set up a 2.5 million tonne steel plant for which a new agreement will be signed in six months.

Mr Jajodia did not reveal the revised project cost as against the initial project cost of INR 255 crore.

Monnet Ispat and Energy Limited had also signed a MoU with the Orissa government for putting up a 1000 MW thermal power plant at Chhendipada in Angul district at an estimated cost of INR 4,200 crore.

Amnesty International concerned over POSCO project

SNS reported that the Amnesty International is concerned over reports of violence in Jagatsinghpur and has urged Orissa government to desist from forceful eviction. It observed that “Farmers of the area are fearful of forced eviction by private militias and the state police have reportedly not taken any action to protect local communities. Any action by the police must be proportionate and should avoid unnecessary injuries to civilians.”

It said that “The state government has a responsibility to ensure the protection of the human rights of all individuals and that sustainable development cannot be measured solely in terms of economic indicators: it should be seen as a holistic process that embraces a range of factors, including the development of civil society, the strengthening of the rule of law and the fulfillment of the human rights in the civil and political, social and cultural as well as economic spheres.”

Amnesty International said that lessons should be learnt from the unfortunate episodes of violence which took place in Kalinga Nagar in 2006 and Nandigram in 2007, where local communities were protesting possible displacement due to the planned construction of an industrial project.

Amnesty International is further concerned that full consultation on the potential displacement has not been undertaken with the communities by the state government. It implored upon the state government to carry out full consultations with affected communities on the human rights, impact of its actions, including in relation to plans to carry out evictions.

Indian exports in April to October up by 21% YoY

It is reported that India’s exports during April to October 2007 was USD 85583.30 million (INR 347793.90 Crore) as against USD 70792.52 million (INR 324863.93 Crore) in April to October 2006 registering a growth of 20.89% YoY in USD terms and 7.06% YoY in INR terms.

On the other hand, cumulative value of imports for the period April to October 2007 was USD 129989.72 million (INR 528546.44 Crore) as against USD 103735.88 million (INR 475862.57 Crore) in April to October 2006 registering a growth of 25.31% YoY in USD terms and 11.07% YoY in INR terms.

In million USD

In INR crores

Figures for 2006-07 are the latest revised whereas figures for 2007-08 are provisional
Source is Directorate General of Commercial Intelligence & Statistics

Jharkhand recommended 3 iron ore PL for JSW, Essar and TATA Steel

Dr T Subbarami Reddy union minister of state for mines said that 3 proposals seeking prior approval of the central government for grant of prospecting license for iron ore in favor of JSW Steel Limited, Essar Steel Limited and TATA Steel Limited have been received from the state government of Jharkhand since January 1st 2006 till date.

Jharkhand government has recommended grant of prospective license in favor of all the 3 companies on the ground that these companies have proposed to set up value addition industries in the state.

Jharkhand government has sent comparative chart of merits in respect of eligible applicants for prospective license in the proposals pertaining to JSW Steel Limited and TATA Steel Limited whereas. As per the information given by the state government, Essar Steel Limited is the sole applicant for PL on the recommended area.

Update on JSL capacity expansion plans

BL reported that Jindal Stainless Limited is planning to invest INR 9,600 crore in the next 3 to 4 years in its steel project in Jajpur district of Orissa. The Orissa project is being commissioned in 3 phases.

The first phase has already been completed with an investment of INR 2,250 crore. The second phase will entail an investment of INR 5,600 crore and third phase is estimated to cost around INR 3,000 to INR 4,000 crore. After completion of the 3rd phase, the Orissa plant will have a total capacity of 1.6 million tonnes per annum.

First phase facilities include 150,000 tonnes per annum ferroalloy plant having 2 ferrochrome furnaces along with a 50,000 tonnes per annum ferromanganese plant and a 50,000 tonnes per annum silicomanganese plant. A 250 MW power plant has been installed and is expected to begin operations soon

JSL is also in the process of increasing its melting and hot rolling capacity at its Hissar plant from the current 600,000 tonnes per annum to 900,000 tonnes per annum by 2010 and the total production of both the plants at Jajpur and Hissar is expected to touch 2.5 million tonnes per annum by 2010-11.

Orissa approves APJ Bharti shipyard at Dharma

It is reported that Orissa government has cleared a shipyard project at Dhamra. The INR 2,200 crore projects will be undertaken by APJ Bharati Shipyard Limited.

A state official said the shipbuilding project would be completed in 3 phases within 6 years of the signing of MoU.

ABB announces more investments in Indian operations

BS reported that ABB, which has just completed a USD 100 million capital expenditure plan announced during November 2004, is investing a further USD 100 million over the next 3 years in the Indian market for capacity and range expansion.

ABB is setting up a Greenfield facility at Nelamangala near Bangalore for manufacturing low voltage products and power electronics. It is also setting up new manufacturing units in Vadodara for small power transformers and distribution automation products.

Meanwhile, capacity and range expansion is underway across businesses and locations. ABB will double its production capacity for high voltage breakers, instrument transformers and high tension machines and expand the capacity of large power transformers to 17,000 MVA. It will also manufacture 765 KV equipment in India to support India’s power infrastructure needs.

Mr Hubertus von Grunberg chairman of ABB Group said that “India is among the fastest growing economies in the world today and a key focus area for ABB. It is an important part of our growth strategy and will play an integral role in strengthening ABB’s global footprint.”

Mr Fred Kindle president & CEO of ABB Group said that “We are encouraged with the performance of our Indian operations and soon it will be among the top five markets. Based on market outlook and our well established presence here, we expect the business volumes for ABB in India to double by 2010.” He added that they are committed to leveraging India’s competitive advantage and rich pool of engineering talent to a greater extent.

In addition to its existing global Operations and Engineering Centre at Bangalore, a second such unit has recently been established at Chennai to support power systems and process automation projects across the world. The present strength at these centers is around 350 engineers. It also plans to increase the number of engineers and domain experts at its global research and development centre at Bangalore.

For the calendar year 2006, ABB's revenues crossed USD 1 billion in India, with revenues growing by 40% and net profit by 50%.

TATA Power eyeing 3 Singapore power utilities - Report

Times of India reported that TATA Power Company Limited is eyeing a bid for Singapore electricity companies Tuas Power, PowerSeraya and Senoko.

ToI quoted a TATA group source as saying Singapore's state investor Temasek Holdings is selling its interests in the 3 firms and TATA is evaluating the opportunity.

Temasek kicked off its sale of the 3 firms in October 2007 and said that it expected to receive indicative offers for Tuas Power by the end of 2007. It expects to sell the 3 firms by late 2008 as part of plans to liberalize Singapore's energy market. The firms have a book value of about SGD 1 billion each and analysts said that the sales could fetch as much as SGD 9 billion, with Tuas attracting the most investor interest.

The report added that Hyderabad based GMR group is also bidding for Tuas in a consortium with Macquarie and that Anil Dhirubani Ambani group is also eyeing the offer. Other companies that have shown interest in the deal include Hong Kong's China Light & Power, Hongkong Electric, Japan's Marubeni and Singapore's state linked Keppel Corp and SembCorp Industries.

Gujarat NRE to invest extra INR 175 crores in wind energy

Gujarat NRE Coke Limited has announced a further investment of INR 175 crores in the form of 20 windmills of 1500 kW each in addition to the 27.5 MW of clean power it already has in Gujarat and is being set up in the Kutch district in Gujarat.

These windmills will go into generation in a phased manner. 10 will become operational by March 2008, while the rest will go into generation by September 2008 taking the combined generation capacity to 57.5 MW from wind mills alone. It will be developing a CDM project to improve the returns on the investment.

Mr Arun Kumar Jagatramka vice CMD of Gujarat NRE said that "Our foray into power generation is a part of our overall corporate philosophy of being eco friendly. We are a responsible corporate entity and we believe that all the steps that we take must be towards the greater goal of inclusive development."

Gujarat NRE is also in the process of setting up coke oven flu gas based power plants in all its production facilities which will have the capacity of generation another 45 MW of clean power. It is the largest independent producer of low ash metallurgical coke in India.

Patel Engineering to build hydro power plant in Maharashtra

It is reported that Patel Engineering has bagged an order worth INR 118.85 crore from water resources department of Maharashtra government for double lake tapping and other civil works of Koyna Dam foot hydroelectric project at Koynanagar in Satara district of Maharashtra.

The scope of work for the project includes construction of head race tunnel, tail surge shaft, pressure shaft, intake structure, barrage etc.

Norway based Norconsult AS will be consultant to the project.

UP increases stakes in two power plant JVs

It is reported that Uttar Pradesh government has decided to hike its equity participation to 35% in two JVs to be set up for the 1,980 MW Bara and 1,320 MW Karchana thermal power projects located in Allahabad. Both the projects are proposed to be executed by roping in private firms.

Mr Sashank Shekhar Singh state cabinet secretary said that the cabinet had approved a proposal to hike the equity participation in the 2 shell companies floated for the 2 projects from INR 10 crore in each company to INR 35 crore. He added that global tenders for both would be floated soon and the contracts were likely to be awarded by the end of the current fiscal.

On the coal linkage for both the thermal power projects, Mr Singh said that UP government was not satisfied with the coal mines allotted by the union coal ministry at Chendipara in Orissa. He added that coal mines had been jointly allotted to 3 states of Maharashtra and Chattisgarh. UP wanted the centre to allot independent mines for the 2 projects to ensure uninterrupted coal supply and a smooth financial closure for both the projects.

UP government recently signed a MoU with the NTPC for a 1,320 MW mega thermal power project in Allahabad District. Besides this, the NTPC has also agreed to expand the capacity of its 4X110 MW Tanda thermal power plant in Ambedkar Nagar district. The NTPC will add a fresh capacity of 1,320 MW at Tanda plant.

CONCOR and Gateway Rail’s JV terminal starts operation

It is reported that Container Corporation of India and Gateway Rail Freight’s 49:51 JV terminal called Container Gateway has became operational from December 1st 2007. The operation of the existing terminal spread over 18 acres has now been taken over by Container Gateway.

It will expand the existing rail linked terminal into a mega terminal and aims at consolidating the cargo volumes of North India for double stack container train operation on the diesel route from NCR to JN Port, Mundra and Pipavav. This terminal will also have connectivity to the proposed Western Dedicated Freight Corridor. It caters to the industrial areas of Delhi, Bijwasan, Gurgaon, Manesar, Dharuhera, Bawal, Hissar, Sonepat, Panipat in Haryana and Bhiwadi, Neemrana and Behror in Rajasthan. The terminal will also facilitate the export import traffic from the proposed Haryana SEZ. It will have connectivity to the proposed Kundali Manesar Palwal Expressway, thus providing direct connectivity to industries in Kundali, Sonepat, Faridabad areas without the need for border crossing.

Mr Prem Kishan Gupta deputy CMD of Gateway Distriparks and CMD of Gateway Rail said that "The existing terminal is a leading ICD of NCR. The expansion of the terminal will be undertaken by Container Gateway and will become operational in the second quarter of 2008-09. Presently we are operating our four rakes on domestic circuits and two rakes out of these four rakes will be deployed in EXIM circuit from Garhi terminal. Gateway Rail Freight plans to increase fleet size to 12 rakes by the end of the current fiscal."

Mr Rakesh Mehrotra MD of CONCOR said that "This mega terminal will be developed over an additional area of 80 acres and will have a new rail handling and transshipment area, multiple CFS & a warehousing complex. When fully operational, it will handle about 400,000 TEUs per annum. Gateway Rail and CONCOR will jointly provide rail service for the users of this terminal in a seamless manner."

REL to raise funds through FCCBs

Reliance Energy Limited has announces that its board of directors will meet on December 12th 2007 to discuss an enabling resolution for raising funds through a convertible bonds at a premium to the current market price in appropriate tranches and at appropriate time to mobilize resources.

REL also said that it had earlier issued zero coupon foreign currency convertible bonds of USD 178 million convertible into equity shares of INR 10 each at a price of INR 1,006.92. While bonds of USD 147.497 million have already been converted into shares, it has issued notices to bondholders to convert the remaining part of USD 30.561 million into equity shares.

REL's plan to raise funds through foreign currency convertible bonds comes within days of its board deciding to infuse up to INR 8,000 crore in the company through equity or equity related instruments.

Private participation in power distribution catching up

It is reported that the franchisee model mooted by states to rope in private players into the power distribution business, as an alternative to out and out privatization of distribution utilities tried out earlier, is fast catching up as a concept.

A government official said that “Awarding distribution zones through the franchisee route does not involve the political fallout associated with the privatization of a state owned utility since the distribution assets stay under state control, while simultaneously allowing for benefits of private sector efficiency to come in. Also, the opposition from employees towards privatization is not being experienced in the case of the franchisee model tried out so far.”

As opposed to the lukewarm response to erstwhile privatization efforts, players including Torrent Power, Crompton Greaves, Indo Asian Fusegear, TATA Power, Kalpataru Power Transmission and Madhucon Projects have thrown their hats in the ring for bagging distribution franchisee contracts on offer in states.

Siemens power transformers facility at thane inaugurated

Mr Sushi Kumar Shinde union minister of power has inaugurated Siemens' state of the art power transformers unit at Kalwa in Thane district on December 4th 2007.

The facility, spread over an area of 40,000 square meters, is set up with an investment of INR 200 crore and has a capacity of manufacturing transformers totaling 15,000 MVA annually.

The proposed factory will design and manufacture large transformers of power rating up to 600 MVA and 800 KV voltage class. It will also produce special application transformers such as for HVDC and traction furnace applications.

Bharat Bijlee makes to Forbes 'Asia's 200 Best under a Billion' list

Power equipment maker Bharat Bijlee Limited has announced that it has posted a return on investment of over 2,000% in the last 3 financial years and has featured in the latest Forbes 'Asia's 200 Best under a Billion' list.

Mr Shome Danani GM corporate strategy of Bharat Bijlee Limited said that "The timing of our expansions in the transformer and motor businesses has enabled us to achieve higher growth rates and deliver higher returns. We are extremely pleased that our performance has been recognized internationally." He added that it is currently working toward building a scalable platform for growth to prepare for the future.

Bharat Bijlee Limited is only 1 of 17 companies from India to make into the list.

ArcelorMittal acquires UK steel distribution company NSD

ArcelorMittal announced that it has acquired NSD Limited, a leading steel distribution company specializing in sales of heavy sections and tubes based at North Lincolnshire in UK, in order to increase its commercial presence in the UK market.

With 130 000 tonne per year of sales and EUR 89 million of turnover, NSD will form the basis of the drive to gain a significant market share for ArcelorMittal Distribution in the UK.

Mr Gonzalo Urquijo member of the group management board of ArcelorMittal and responsible for Steel Solutions and Services as well as Long Carbon Europe said that “ArcelorMittal will extend its position in the attractive UK market which, whilst being mature, is still very profitable”

Mr Urquijo said that NSD has a long and successful history of supplying both steel stockholders and fabricators and will form an essential link with all ArcelorMittal supply units. He added that “The UK has a very strong steel culture in construction. ArcelorMittal can offer the complete steel solution and aims to take the leading role in the UK market.”

ThyssenKrupp posts record performance for 2006-07

ThyssenKrupp announced that the 2006/2007 fiscal year was another record year for ThyssenKrupp. It was the most successful since the merger in 1999 and is evidence of the effectiveness of the Group’s strategy and the strength of the segments:

1. EBT reached EUR 3,330 million. That’s an improvement of 27%. Earnings therefore improved for the fifth year in succession. Excluding major nonrecurring items such as the EU fine on Elevator, earnings before taxes and major nonrecurring items would have reached EUR 3,799 million.
2. Demand for the Group’s products and services increased further. Order intake reached EUR 54.6 billion, that’s an increase of 8%.
3. At EUR 51.7 billion, sales were 10% higher than the year before of EUR 47.1 billion
4. Earnings per share increased from EUR 3.24 to EUR 4.30. That’s a rise of 33%.

Dr Ekkehard Schulz executive board chairman of ThyssenKrupp AG said that “The figures underline the outstanding performance of ThyssenKrupp. As a result of organic growth, strategic acquisitions and a sharper focus on customers and services, sales and earnings reached new record levels. Our business performed better in fiscal 2006/2007 than we expected a year ago. Sales were 10% higher than our original target of EUR 47 billion. Sustainable earnings before taxes also exceeded our planned figure of EUR 2.5 billion by a considerable 33%.”

He added that “For the 2007-2008 fiscal year, ThyssenKrupp expects to achieve sales of around EUR 53 billion and earnings before taxes and major nonrecurring items of over EUR 3 billion.”

US steelmakers critical of WTO proposals on changes to AD and subsidy laws

The American Iron and Steel Institute has criticized newly released proposals to change the international rules regarding dumping and subsidies. The proposals were released Friday by the World Trade Organization in the form of a text from the Chairman of the WTO Rules Committee, as part of the ongoing Doha Round of trade negotiations.

AISI stated that the proposed changes to the current rules would substantially weaken the protections US trade laws provide against dumped and subsidized imports, while denying the United States the changes it had sought in the negotiations.

Mr Andrew G Sharkey III president and CEO of AISI said that “These proposals are beyond disappointing. They barely pay lip service to the needs of the United States, while suggesting changes that, if accepted, would severely undercut our ability to protect American industries and workers from unfair foreign competition. Acceptance of this text would be directly contrary to the clearly expressed intent of Congress that the United States agrees only to changes that make the trade laws stronger.”

Mr Sharkey said that “The US negotiators in the Doha Round must aggressively oppose measures that would weaken our trade laws. The Chairman’s draft largely ignores the needs of the United States, while making enormous concessions to countries that want greater freedom to sell dumped and subsidized merchandise to the United States.”

ArcelorMittal increasing output of Q&T plate products

ArcelorMittal announced that it is increasing output of quenched and tempered plate across its US plate mills so as to remain the premier producer of the broadest line of quality plate products in the Western Hemisphere including quenched and tempered plate.

ArcelorMittal in a statement said that “The investments in quenched and tempered capacity are being made at all of the company’s US plate facilities Coatesville and Conshohocken in Pennsylvania and Burns Harbor and Gary in Indiana. The investments are directed at updating equipment and material handling which will allow the company to increase output of high quality quench and tempered product by 50,000 tons. ArcelorMittal will complete these improvements in phases during 2008 without disruptions to existing operations.”

Mr Shelby Pixley CEO of ArcelorMittal Plate USA said that “Armor is priority rated by the US government and therefore has reduced our ability to supply Q&T product to the commercial market. In response to this, we are investing in our facilities to meet the high military and commercial demand for this product.”

Quenching and tempering is a process to dramatically increase the strength and hardness of steel plate, making it the ideal material for protective skins on military vehicles, as well as many non military applications.

New alloy surcharges will not stabilize EU SS prices - MEPS

MEPS have opined that the new and proposed alloy surcharge mechanisms in the EU will not stabilize transaction prices in the market but on the contrary, they could lead to more volatility. MEPS added that “If steel buyers accept the principle of the new system they would be creating difficulties in quoting for new orders with the prospect of losing out to foreign competitors.”

MEPS said that “Granted, the old system was not good for the mills when alloy prices started to fall. However, it was beneficial to them on the upside. At least, the customers had some idea of the alloy surcharge at the time of their delivery by referring to the MEPS estimates. These could be calculated with a strong degree of accuracy even in the highly volatile period because the make up of the figures contained a proportion of historical alloy costs.”

MEPS said that “Under the new proposals, alloy costs used to calculate the surcharges would be based, mainly, on the average figures in the month prior to delivery of the finished products. The current US system uses the mean value one month earlier than the EU proposition. This did not stabilize transaction values in that market. In fact, US selling figures were more volatile than those in the EU when using the old surcharge mechanism which is now said to be unsatisfactory.”

MEPS added that “The US system created alloy surcharge hikes for type 304 cold rolled of USD 1200 per tonne in the period April to July 2007 and USD 950 between January and April of that year. This is hardly a good advertisement for shortening the period of application of the alloy costs when the equivalent figures in the EU were around USD 1000 and USD530, respectively.”

Newcastle thermal coal price slips from record levels

Bloomberg reported that coal prices at Australia's Newcastle port slipped by 0.6% remaining near a record amid concerns supplies will fail to keep pace with rising demand. According to the globalCOAL NEWC Index, power station coal for delivery within the next three months fell 56 cents to AUD 88.07 a tonne in the week ended November 30th 2007.

Mr Gavin Wendt a senior resources analyst at Fat Prophets Funds Management in Sydney said that “AUD 100 coal is certainly possible, I would say inevitable. Infrastructure issues are still at play and coal companies have been downgrading production forecasts accordingly. This is an issue that is not going away as quickly as some might have thought.''

UBS AG Europe's biggest bank last week raised its price forecasts for coal used in power plants and steel mills in 2008 and 2009 because of expanding Asian demand and constrained supply. UBS in a November 28th report said that thermal coal contract prices for the Japanese financial year starting April 1st 2008 may be AUD 90 a ton next year, rising to AUD 105 in 2009, up from previous forecasts of AUD 70 and AUD 75.

Goldman Sachs JBWere Pty last week also raised its estimate for 2008-2009 contract prices to AUD 90, from a previous estimate of AUD 75. Contract prices this year are about AUD 56.

BHPB bid for Rio- Sons to follow mother of mergers

As per industry experts in investment circles any merger between BHP Billiton and Rio Tinto will spark similar moves among smaller resources companies in Australia.

Mr Kim Jacobs CEO of Inteq said that if the deal goes ahead smaller miners will follow BHP's lead. He said "I think you are going to find the small to medium sized players are going to be looking for strategic acquisitions and or mergers that can then make them attractive to institutions and larger players in the market.”

Corus to lift prices in 2008 due to rising input costs

ET reported that Anglo Dutch steelmaker Corus plans to raise prices next year amid expectations of rising costs of key materials such as iron ore and coal.

The report quoted Mr Philippe Varin CEO of Corus, during a steel conference in Paris as saying that "We will go for some price increases next year to pass through the increase of those raw materials to our customers and finally the end consumer.”

Mr Varin said that loftier costs associated with steel production, including higher freight rates in 2008, meant the company had to step up efforts to source raw materials in house and pass higher costs onto consumers. He added that "We are obviously continuing to optimize our burden in steel making operations in order to adjust to the raw materials cost."

Grupo Mexico threatens to close three mines

BNamericas reported that Grupo Mexico has threatened to close all of its three mines, Cananea copper mine, Taxco silver lead zinc mine and San Martín zinc mine after four months into strikes.

The report quoted a Grupo México communications officer as saying that "The situation is grave because it has been 120 days of strikes and the company now finds itself obligated to consider closing the mines." He added that but a final decision has not yet been made.

Mexico's national mining metalworkers union STMMRM headed by Mr Napoleón Gómez Urrutia started strikes at the three Grupo México mines on July 30th 2007 over issues relating to collective contracts and mine safety and hygiene.

Grupo México accuses STMMRM of trying to extort USD 80 million for moral damages and another USD 7 million for legal costs from the company, as well as having the federal government withdraw criminal charges against Mr Gómex Urrutia.

Rio de Janeiro to waive import tax on steel for Transpetro

Mr Sérgio Cabral state governor of Rio de Janeiro said that Brazil's Rio de Janeiro state is lifting import taxes on steel destined for the maritime sector.

According to the report, during the bidding process to provide steel for 26 sea vessels for national energy company Petrobras' transport subsidiary Transpetro, high steel costs have been the main obstacle and is equal to some 20% of the total expense of building a vessel.

During December Transpetro is to launch an international bidding process for 400,000 tonnes of steel for its first ships. The company is eyeing 20 local and foreign steelmakers as potential providers.

German tinplate recycling rate makes record in 2006

ITRI reported that according to the Germany’s only tinplate producer Rasselstein, 89% of the tinplate cans sold in Germany in 2006 have been recycled.

Rasselstein in a statement said that the total volume of tinplate cans sold last year was 525,800 tonnes, of which 469,300 tonnes have been recycled. It said that the steel can recycling rate in Germany has steadily improved from 75.1% in 2000 to 89.2% in 2006, whereas the recycling rate for aluminum cans has been stable or declining, falling from 75.7% in 2000 to 71.1% last year.

According to Rasselstein’s calculations, Can recycling reduce Germany’s raw material import requirements by 700,000 tonnes of iron ore and 305,000 tonnes of coal. The company’s recycling subsidiary DWR hopes to boost the recycling rate further next year by the introduction of a shredding system to improve the separation of the used cans from residues and household.

Rasselstein celebrated a record annual level of tinplate production of 1.5 million tonnes at its Andernach plant in the fiscal year to end September. The majority of production from the plant, the largest of its kind in the world, is exported, mainly to the rest of the EU.

Exxaro Resources considering power plant projects in SA

Bloomberg News reported that South African coal and zinc producer Exxaro Resources will consider coal to fuel and power plant projects in South Africa to meet government requirements for adding value to minerals mined in the country.

The report quoted Mr Sipho Nkosi CEO of Exxaro as saying that “We are looking at many ways and means of beneficiating coal, we are also looking at the possibility of being party to independent power producers.”

Exxaro was spun off from Kumba Resources and merged with unlisted Eyesizwe Coal to form the country's biggest diversified black owned mining firm.

CAP targets USD 2 billion investment over 10 years

According to a report by El Sur newspaper, Chilean integrated iron and steel group CAP plans to invest at least USD 2 billion in the next 10 to 12 years in growth and CSR programs.

CAP in a statement said that its growth plan involves increasing steel output from its Huachipato complex in Chile's region VIII from 1.2 million tonne per year to 1.4 million tonne per year in 2008 and expanding iron ore production to 11.5 million tonne per year next year from the current 8.5 million tonne per year.

According to the report, in 2010 CAP aims to bring online a 250,000 tonne per year galvanized steel plant at Huachipato along with a modernization of the complex's hot rolling facility and in iron ore reach 15.5 million tonne per year. It added that in the same year CAP expects to kick off its Hierro Atacama II iron ore project in region III to produce 4 million tonne per year of pellet feed.

The report further added that CAP is also looking at expansions abroad and is targeting Peru and Argentina.

Steel Framing Alliance publishes new guide for builders

The Steel Framing Alliance announced the release of a new publication titled “A Builder’s Guide to Steel Frame Construction” that provides builders with an illustrated and easy to read guide through the basic and most frequently asked questions posed by most builders interested in getting into steel framing.

Ms Larry Williams president of Steel Framing Alliance said that “Anytime you pick up a new tool or technology, there’s always a learning curve. The purpose of this guide is to shorten that curve by quickly and concisely providing the reader with the basic information they need and then pointing them to resources that will help them get through the initial learning period so that they have a successful experience with steel framing.”

She added that “A Builders Guide to Steel Frame Construction” includes sections on
1. What is cold formed steel framing?
2. Why should I consider building with cold-formed steel framing?
3. How much will cold-formed steel framing cost compared to wood framing?
4. How does the design process work?
5. How does the plan check and building inspection process work?
6. How do I order steel framing?
7. What are the differences in construction details between cold-formed and wood?
8. How will my trades be affected?
9. What fasteners will I need?
10. Where can I get training?

The Steel Framing Alliance is a market development organization established and funded by the steel framing industry and charged with enabling and encouraging the growth of cold formed steel framing in both the residential and commercial construction markets. In addition to education and training, research and solutions development and supporting the development of codes and standards for steel framing, SFA activities include marketing and promotion, technical services and special initiatives that continue to improve the competitive position of steel framing.

A Twelve page publication is available as free download on SFA web site :http://www.steelframing.org/index.php

Nippon Steel to expand sintering capacity

JMB reported that Nippon Steel expands sinter output capacity at Nagoya and Oita works to increase output of high valued steel with expansion of blast furnaces.

Nippon Steel said that it started idled coke oven at Nagoya while the Oita works starts operation of new no.5 coke oven in February 2008.

Nippon Steel is aiming to reach annualized 35 million tonnes of raw steel output in and after fiscal 2009 starting April 2009.

South African miners start national safety strike

It is reported that about 250,000 South African miners have started a one day nationwide strike to protest against safety standards in the country's mines after almost 200 miners have been killed in accidents 2007.

Hundreds of mine workers gathered in the centre of Johannesburg. There was a good natured atmosphere although the miners say they are concerned that mining companies are putting production before safety.

It remains to be seen whether the National Union of Mine Workers can bring 240,000 members out on strike. But the intention is to send a strong message to employers.

The South Africa’s chamber of mines said that it supports the NUM's concerns for improved safety and that government, employers and workers all need to take joint responsibility to improve conditions in the mines.

US weekly crude steel production up by 8.5% YoY

American Iron & Steel Industries reported that in the week ending December 1st 2007, US’s raw steel production was 2.024 million net tons while the capability utilization rate was 84.9%. Production was 1.865 million net tons in the week ending December 1st 2006 while the capability utilization then was 81.5%. The current week production represents 8.5% YoY increase from the same period in 2006.

Production for the week ending December 1st 2007 is down by 0.9% from the previous week ending November 24th 2007 when production was 2.044 million net tons and the rate of capability utilization was 85.7%
Adjusted YTD production through December 1st 2007 was 98.230 million net tons at a capability utilization rate of 86%. That is a 3% YoY decrease from the 101.321 million net tons during the same period 2006 when the capability utilization rate was 89%.

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Corus inks LoI with AIAC for disposal of aluminum smelters

Corus and Aluminium Acquisition Company Limited have announced that they have signed a non binding Letter of Intent for the proposed acquisition of Corus’ aluminium smelters by an affiliate of AIAC for an undisclosed sum.

Internal consultation and advice processes related to the transaction have commenced. It is intended that a Sale and Purchase Agreement would only be entered into once these processes are completed. The proposed transaction may be subject to certain external regulatory clearances.

The two smelters are based in Delfzijl in the Netherlands and Voerde in Germany and produce over 200,000 tonnes of primary metal per annum. The smelters employ 481 people in Germany and 475 people in the Netherlands.

Following the sale of Corus’ downstream aluminium extrusions and rolling business to Aleris in August 2006, Corus has been looking at opportunities to secure a future for its aluminium smelters outside the Group.

Siemens to modernize Rukki’s Rahe HSM

Siemens announced that it has received orders to modernize the electrical equipment from Finnish company Rautaruukki Oyj. The objective of modernization projects is to improve the productivity and availability of the plant.

The order to renew the drive systems in the hot rolling mill at Raahe works was issued by Rautaruukki and the project is scheduled for completion in November 2008.

In the current project, Siemens will renew the main drives for the roughing mill as well as parts of the finishing mill with the new converter units. In addition, the edger and screwdown drives of the roughing stand will be replaced by Simoreg DC Master converters. Electrical installation and commissioning will be realized in several steps starting in March 2008.

Rautaruukki Oyj operates an integrated steelworks complex which is the most northern facility of its kind in Europe. In its hot strip mill, primarily wear resistant steels and high strength structural steels as well as steel strips for the lifting, handling and transportation industries are manufactured. In recent years, Rautaruukki has gradually modernized and expanded the hot strip mill at Raahe works.

New freight calculations to increase cost of Taiwanese pipes makers

YIEH reported that Japanese and South Korean shipping companies have decided to change their shipping calculating way for the export of steel tube from Taiwan to the US.

As per report it will be changed as measurement ton from dead weight ton, and the new model will be effective from the next January.

Taiwan’s domestic tube mills said the new calculating way will increase their cost by about 50% to 100% and make them less competitive.

Since China may face the anti dumping case from the US government, the order book is improving in Taiwan. However, the new shipping valuation model will make a serious impact for Taiwan’s tube export business.

Cuban nickel production returns to normal after floods

It is reported that production at Cuba’s three major nickel plants, the René Ramos Latour, Pedro Soto Alba and Ernesto Che Guevara, located in the eastern part of the island has returned to normal after the severe flooding in October. The reports confirmed for the first time the full extent of the outages caused by Tropical Storm Noel.

The Rene Ramos Latour facility in Nicaro, in Mayarí municipality, province of Holguín was forced to temporarily suspend activities as a result of excess humidity in the laterite minerals, while the other two plants continued working with reserves on hand given that open pit mining operations were interrupted.

The René Ramos Latour plant produces close to 10,000 tonnes of unrefined nickel per annum, while the Che Guevara and the Pedro Soto Alba each produce more than 30,000 tonnes of the mineral.

Cuba is one of the largest producers of nickel in the world, the fifth world wide, and has one of the highest quality reserves. Last year, its plants produced 74,000 tonnes of unrefined nickel and 76,000 tonnes are expected by the end of 2007.

S&P affirms BB+ rating to Gerdau Ameristeel

AP reported that Standard & Poor's Ratings Services affirmed its non investment grade credit ratings for Gerdau Ameristeel Corp on Monday, but issued a negative outlook for the company due to weakness in the US economy.

S&P placed Gerdau Ameristeel's BB+ corporate credit rating on watch with negative implications on July 11, after Gerdau said it was acquiring Chaparral Steel Co for USD 4.2 billion in cash.

S&P affirmed Gerdau Ameristeel's ratings due to its strong recent performance. Mr Marie Shmaruk analyst of S&P in a statement said that the guarantee of the acquisition's financing by 66% owner Gerdau SA and a recent USD 1.6 billion stock offering to repay bridge financing for the deal also supported the affirmation.

He added that however, “S&P is concerned about weakness in the US economy, the longer term implications for the domestic steel industry from expanded global steel capacity and the industry's increased cost base, which we view as more permanent in nature.”

The negative outlook implies that a rating may be lowered over the next six months to two years if debt levels remain high or Gerdau Ameristeel's financial metrics deteriorate.

Queue at Newcastle port reduces to 40 vessels

According to the latest figures, the queue of ships waiting outside Newcastle port to load coal, which had reached a record 79 in June 2007 after storms disrupted operations, has not been less than 37 this year. There were 40 ships waiting to load coal in the week ended November 26th 2007.

Consumption, buoyed by rising imports in China has outpaced exports from Australia, Indonesia and South Africa. Mining companies in Australia's Hunter Valley must share 95 million tonnes of capacity at Newcastle next year, 18% less than their stated demand.

Port Waratah Coal Services Ltd., the operator of the two coal terminals at Newcastle, has submitted a proposal on how to allocate port and rail capacity to the Australian Competition and Consumer Commission for approval because estimated 2008 capacity of 95 million tons isn't enough to meet demand.

Rio Tinto Group on November 26th 2007, advised customers it may not be able to meet contracted deliveries for coal from the Hail Creek and Blair Athol mines in Australia's Queensland state because of congestion at the Dalrymple Bay port. The so called force majeure will apply to sales in the first quarter of 2008.

Midwest starts AUD 11 million WA drilling campaign

It is reported that iron ore producer Midwest Corporation Ltd has kicked off an AUD 11 million drilling program at its flagship Weld Range project in Western Australia's Mid West region.

The Western Australia government recently granted Midwest a vegetation clearance permit for 40 hectares at the Madoonga and Beebyn areas within the Weld Range project.

Mr Bryan Oliver CEO of Midwest Corporation said the company has secured a fleet of eight drill rigs to carry out the drilling program, the largest it had undertaken.

Mr Oliver said that “Importantly, the timing of this government approval allows Midwest to stay on track to complete its pre feasibility study by September 2008." He added that the drilling program will be completed in August next year.

Towards the end of the program, Midwest will cooperate with its JV partner, Hampton Hill Mining NL, to explore the companies' adjacent tenement holdings in the Weld Range.

Midwest is currently drilling at its Jack Hills iron ore project also in the Mid West and an initial mineral resource estimate is expected to be confirmed this month.

Port Qasim to build coal, clinker and cement terminal

Business Recorder recorded that Pakistan’s Port Qasim Authority is planning to construct a dedicated coal, clinker and cement terminal at a cost of USD 150 million. The terminal, to be built on public private partnership basis, would enhance the cargo handling capacity of Port Qasim.

The report cited Port Qasim Authority officials as saying that "Technical proposals are being evaluated, which would be followed by financial evaluation of the project. With CCCT, the cargo handling capacity of Port Qasim would rise to around 50 million tonnes per annum by 2010 and the project would be completed in 24 months. The cost estimate of the project is open so far and would be finalized after financial evaluation, but it may cost the investors USD 100 to USD 150 million."

About date of signing agreement with investors, officials said that "It would take some time, as the consultant would have to see all feasibilities in terms of technique, environment and finance, etc." They added that after technical evaluation, the project would undergo financial evaluation and approval from government with permission from Pakistan Navy and all others concerned.

Port Qasim Authority has hired National Engineering Services Pakistan Private Limited as consultant for the project.

Aramco awards Ras Tanura refinery contract to Samsung

Arab News reported that Saudi Arabian company Aramco has awarded an SAR 1.6 billion contract to build a refinery plant in Ras Tanura in order to produce more eco friendly fuel to Samsung Engineering Company.

Mr Lee Jae gil South Korean ambassador to Saudi Arabia said that “I am extremely happy to learn about this prestigious deal signed by Samsung Engineering, represented locally by Samsung Saudi Arabia Limited. This also symbolizes the progressively growing business relation between Riyadh and Seoul, while it at the same time explains the technological superiority of the Korean companies in general.”

Mr Shin Youl Kang VP & resident director of Samsung Saudi Arabia Limited said that “According to the contract, Samsung Engineering will build a diesel hydro desulphurization plant that can process 100,000 barrels of diesel on a daily basis in Ras Tanura. The plant order, the first one signed by Samsung with Saudi Aramco, would be completed by June 2010. The contract has a great symbolic value, since Saudi Aramco is a prestigious name in the world of business today.” He added that the plant will reduce discharge of sulfur dioxide from diesel, to make it a more eco friendly fuel.

Samsung Saudi Arabia, established in 1999 by Samsung Engineering, had emerged as one of the leading companies in petrochemical, oil and gas, refinery, industrial and environmental plants sector. It has in its hands some 8 mega projects in the Kingdom alone. It is also currently building the world’s largest ammonia plant for Saudi Arabian Mining Company. The plant with a capacity of 3,300 tonnes day would be completed by December 2010 and has also won a SAR 1.12 billion contract from Saudi Basic Industries Corporation a few months back.”

Emaar Industries buys 52% stake in Caparol

It is reported that Emaar Industries & Investments has acquired 52% stake in German paint manufacturer Caparol LLC, which will invest AED 25 million for a UAE facility.

The new facility, to be operational within 18 months to 2 years, will help increase by up to 400% Caparol’s regional revenue over the next 3 years and double its capacity to 20,000 tonnes for the Middle East market. Caparol will build and operate its UAE factory with strict adherence to quality and environmentally friendly coatings.

Mr Ahmad Khayyat CEO of Emaar said that the partnership will support the coating needs of the real estate growth in Dubai and other parts of the Middle East. He added that “This relationship will take us very far and we will expand it to the different parts of the region.”

Mr Khayyat said that “Caparol has a sound environmental policy, which is of crucial importance in today’s world. Our partnership is aimed at maximizing the company’s productivity by expanding to a new and bigger facility and facilitating expansion to a new promising market. This is done through a three-pronged approach of strategic capitalization, lending industrial and managerial expertise and facilitating expansion into strategic markets.”

Caparol manufactures and markets a number of Europe’s decorative paints including Caparol, Alligator, Alpina and Alsecco brands. It produces high quality paints, enamels, glazes, structural coatings, materials for facade and insulation technology. It also manufactures paints used by artists.

OPEC not responsible for oil price fluctuations

Mr Ali Al Naimi oil minister of Saudi Arabia said that member of OPEC has nothing to do with the prices.

He added that “Saudi is not planning an increase in its capacity. Saudi Arabia adheres to about 9 million barrels a day. We have not looked yet into the data. The marker is well supplied and we have to look into the information in order to take the next step.”

Meanwhile, oil and energy ministers of 12 OPEC member nations have begun descending on Abu Dhabi for the 146th extraordinary meeting of the group’s conference which will be hosted by the UAE on December 5th 2007 at the Emirates Palace Hotel.

The one day meeting will be convened in the UAE in its capacity as one of the major oil producers in the oil rich GCC, which sits atop more than 50% of the world’s proven oil reserves and supplies the world with over 25% of its oil demand.

RAKEEN to invest USD 5 billion in Indian real estate projects

UAE based real estate firm RAKEEN has announced that it will invest USD 5 billion in India’s real estate projects in 50:50 JV with Chennai based Trimex. The new JV will be called Rakindo Developers.

The JV proposes to make the investment over the next 5 years to 7 years to develop at least 50 million square feet of residential, commercial and office space across India. Rakindo already has a land bank of over 4,000 acres across India and is negotiating with the government to acquire an additional 5,000 acres.

In the first quarter of 2008, Rakindo plans to start work on a USD 1.5 billion, 1,000 acre integrated township and information technology special economic zone in Coimbatore in partnership with the Tamil Nadu government. It has already received in principle clearance for the SEZ. The Coimbatore Township marks the start of the initiative by Rakindo to create a pan India presence with a focus on tier I and II cities.

Mr Khatar Massad, advisor to the Mr Ras Al Khaimah CEO of RAK Investment authority, said that “Establishing an integrated township and IT park in Tamil Nadu affirms our belief in the state and is definitely a step towards our effort to bring world class facilities to India.”

Ethylene output to double over next 5 years in Middle East

According to a forecast by Dubai based Gulf Petrochemicals & Chemicals Association, Middle East is set to become the epicenter of global petrochemicals manufacturing by producing essential materials for packaging, healthcare, pipes, electronics goods, personal care, construction and many other industrial or consumer requirements.

MEA’s production capacity for ethylene in the region is slated to more than double over next 5 years. Production capacity for ethylene in the Middle East will rise from over 13 million tonnes in 2007 to over 29 million tonnes in 2012.

Gulf Petrochemicals & Chemicals Association said that these products are the raw materials for industry around the globe and much of the new output will be supplied to the booming markets of China and India.

Gulf Petrochemicals & Chemicals Association was created in 2006, with founding members including Saudi Basic Industries Corporation, Equate Petrochemical Company, Gulf Petrochemical Industries Company, Petrochemical Industries Company, Qatar Petrochemical Company Limited, Qatar Vinyl Company Limited, National Industrialization Company and Abu Dhabi Polymers Co Limited.

Ewaan launches SAR 400 million real estate firm

Arab News reported that Ewaan International Housing Company has launched a new real estate firm capitalized at SAR 400 million.

Mr Khalid Al Aboodi CEO of Islamic Corporation for the Development of the Private Sector has opened the meeting and presided over by Mr Saleh Bin Mafooz chairman of Ewaan. During the meeting, 10 members were elected to Ewaan’s board of directors, including 2 members from the Islamic Corporation for the Development of the Private Sector.

Mr Al Aboodi said that Ewaan has strong ambitions to evolve quickly as a major local and regional player in the real estate market. He added that “Our quest is to create landmark property based investment portfolios in Saudi Arabia and across the GCC states.”

During meeting of the founding board members, Mr Mohammad Saleh Eid CEO of Ewaan said that “Ewaan’s vision is to construct housing complexes in various areas in Saudi Arabia for the low and middle income segments and develop houses in the most efficient and effective way in order to provide fair price for investors and end users.”

He added that Ewaan hopes to increase real estate perception and understanding in Saudi Arabia through opening new channels for investors, especially with the region experiencing high liquidity and facing limited investment channels.

Gulf Metal Craft expands product range

Gulf Metal Craft LLC has announced that it has recently commenced production of cable management systems in line with its strategy to expand its product portfolio.

Cable management systems like cable tray, cable trunking and cable ladders are used in buildings, towers, commercial centers and factories mainly to securely fasten or support cables. It is used as the structural component of a building’s electrical system. Cable management systems are manufactured in adherence to British Standards in hot dip galvanized, pre galvanized and powder coated to various colors.

Mr Nedhal Al Thani GM of GMC said that “The unprecedented growth in the UAE’s construction industry has resulted in significant increase in demand for various products associated with this sector, cable management systems being one of them. GMC’s products have earned a reputation in the local markets for superior quality and reliability, and we are focused on consolidating our strong market position by expanding our product range.”

Gulf Metal Craft LLC is primarily engaged in manufacturing standard range and custom design cabinets in electro galvanized steel, aluminum and stainless steel. It maintains a workforce of over 125 employees in its manufacturing facilities in the UAE and also exports its products to other Middle East countries such as Jordan, Qatar, Oman, Bahrain and Kuwait. GMC has a fast growing client portfolio, which has some of the most prominent names in the private and government sectors, including Dubai Electricity and Water Authority, Abu Dhabi Water & Electricity Authority, Etisalat, Jumeirah Beach Residence, The Palm Jumeirah, International City, Dubai Maritime City, Roads & Transport Authority, Dubai Investments Park and Al Habtoor Engineering.

Investate and Omniyat to develop Madinat Al Arab waterfront in Dubai

The Peninsula reported that Bahrain investment firm Investate has tied up with Omniyat Properties of Dubai to jointly develop a strategic project on the Madinat Al Arab on the Dubai Waterfront.

The Waterfront is one of the world's largest waterfront developments, located on the last remaining coastline in Dubai. It is bigger in size than both Manhattan and Beirut and offers over 250 master planned communities.

Mr Salah Nooruddin CEO of Investate said that "We are very proud to have struck a partnership with a real estate developer like Omniyat Properties. I anticipate this reaping rewards for all our shareholders and ensuring an optimum return on investment. Investate's strategy is to offer shareholders a range of Shariah compliant investments that are diversified by asset, class and location, with a portion of this investment being placed with partners and shareholders in GCC countries. We are firm believers in the rapidly growing Dubai market."

He added that the real estate market has become one of the best performing markets in the region, especially Dubai. The emirate has shown robust growth averaging 17.9% in nominal terms since 2001. Mr Nooruddin said that "Investate targets market segments where there is stable and secure growth and assets that are income generating to ensure liquidity for investors. These factors are present in the Waterfront project. The project's feasibility study was reviewed and the potential for success is high due to its futuristic design and high tech features."

Iran to sign MoU for South-South Cooperation Center in Tehran

It is reported that Mr Ali Akbar Mehrabian minister of industries & mines of Iran has arrived in Vienna to participate in UNIDO's general conference and will exchange a MoU for the establishment of a “South-South Cooperation Center” in Tehran.

The center, initially proposed by Malaysia, is to focus on cooperation in science, manufacturing, technology, and industrial innovation under UNIDO supervision as well as providing assistance to developing countries in their efforts to strengthen their scientific, technological and innovative capacities.

Iran will use the occasion to display examples of its industrial and mining capabilities at an exhibition to be set up on the sidelines of the conference.

Saudi Zenel inks MoU with Iranian firm to build power plant

It is reported that Saudi Arabia’s Zenel Company has signed a EUR 0.5 billion deal with Iran's Power Generation, Transmission & Distribution Company to develop a 1,200 MW combined cycle power plant in East Azerbaijan on build operate transfer basis.

Mr Mohammad Ahmadian deputy energy minister of Iran said that the contract would enable Zenel to sell electricity generated by the power plant to Iran. He added that construction works of the plant are expected to begin in March 2008 and is expected to be completed in 2 years time.

It is noted that, to meet its rising water and electricity demand, Iran has embarked on extensive dam and power plant projects.

OPEC sees oil demand to be up by 1.3 million BPD in 2008

UAE news agency WAM quoted Mr Abdullah Al Badri secretary general of OPEC as saying that global crude oil demand is expected to grow by about 1.3 million barrels per day in 2008, while OPEC has a reserve output capacity of 3 to 4 million barrels per day.

Mr Badri said that "OPEC is always willing to meet market needs if market fundamentals indicated additional supplies were required. OPEC has a reserve output capacity estimated at 3 to 4 million barrels per day." He added that high oil prices were a result of geopolitical factors and refining problems rather than market fundamentals.

He further added that "The price variations are not linked to supply and demand. Prices are affected by political matters, some problems in oil refineries and the decline in the US dollar in addition to the reduction of the US interest rates and speculation."

BHPB bid for Rio- China considering counter offer

21 Century Business reported that amid the purchasing and anti purchasing match between BHP Billiton and Rio Tinto, China's top steelmaker Baosteel for the first time revealed the intention to bid for Rio. Mr Xu Lejiang Chairman of Baosteel Group said that they are considering this option and that there is great chance of making a bid.

The report cited Mr Lejiang as saying that “"We are thinking about it. The issue is still in the studying period and they are talking about how to purchase, with no pact signed with the target ore supplier.

He also said that “If you ask how big is the chance, it's quite big, for there are kinds of possibilities, aren't they? There is a strong possibility we would make a bid."

According to Mr Lejiang “If Chinese steelmakers take over Rio, the material's monopolized situation will be smashed, though it may not promptly reflect on the long term contract.”

The earlier reports put the size of a potential Chinese bid at US$200 billion. It is unclear if Baosteel, even as part of a consortium, would want to commit the resources needed for a big enough offer. The report quoted Mr Lejiang as saying that "I am afraid USD 200 billion would not be enough.”

Mr Meng Haibiao a spokesman of BaoSteel however said that he had no comment on the report in the 21st Century Business Herald's online.

BHPB bid for Rio- Denials to Chinese angle

21 Century Business report on possibility of a counter offer by Chinese steel makers has evoked instant reactions from various stake holders. Baosteel is expected by analysts to require partners in putting together a bid for the much larger Rio Tinto and reports last week said that China's leading steelmakers could be putting together a bid consortium.

Separately, China Business reported the Chinese steelmakers had secretly gathered in Beijing November 26th 2007 to discuss about countering BHP takeover proposal for Rio, which was also attended by officials from the State Council and State owned Asset Supervision and Administration Commission. The consensus made at the meeting is reportedly submitted to the SASAC and Ministry of Commerce, with no response yielded yet. As per repots, Mr Qi Xiangdong deputy chairman of China Iron and Steel Association confirmed that its members have held talks.

But Mr Chen Bin director of the industrial department of the National Development and Reform Commission, which supervises China's steel industry, said the commission is not involved in any Rio Tinto bid.

XFN-ASIA reported that Laiwu Steel said that it has received no formal communication from Baoshan Iron & Steel Co Ltd to join a reported bid for Rio Tinto. A Laiwu spokesman told XFN-Asia that “The reported bid is a good idea. But we have not been formally contacted by anyone at Baosteel to participate in any joint bid for Rio Tinto. I suspect it is all just at the hypothetical stage right now.”

Mr Chen Hanyu a director at the resources office of Shougang Corp in an interview with Bloomberg confirmed that “It is an issue being discussed by top level officials. A few of the biggest steelmakers in China and the central government may team up for the bid.”

Mr Chen's boss Tan Yixin GM of China Shougang International Trade and Engineering Corp Mineral Import and Export Company told Reuters that Mr Chen has been misquoted. He said "Chen Hanyu is not authorized to speak to the press like that. Mr Chen Hanyu has said he did not say these things to Bloomberg.” He added that "Shougang is not involved in and will not be involved in any joint bid for Rio Tinto Group. The company is not aware of any joint bid among steelmakers in China for Rio Tinto Group."

Chinese steelmakers, who are the world's largest buyers of iron ore, have previously expressed concern about BHP Billiton's USD 150 billion offer for rival Rio, saying a combined entity would have too much pricing power.

Chinese coke export price to exceed USD 400 per tonne

It is reported that Mr Huang Jingan chairman of China Coking Industry Association, estimated on December 1st 2007 that China would close down 20 million tonnes of coke production capacity in 2007.

Mr Huang pointed out, driven by better coke market and some medium and large coking ovens are put into operation and from January to October 2007, about 33 ovens came in stream with coking production capacity up 16.78 million tonnes.

He said that in 2008, world crude steel and pig iron output will surpass 1.4 billion tonnes and 1 billion tonnes respectively, expecting to consume more coke.

He said that current coke export price from China has crossed USD 380 per tonne indicating the price to run over USD 400 per tonne.

China strongly opposes US ruling on probe into steel tubes

Xinhua cited Mr Wang Xinpei spokesman with the China Ministry of Commerce as saying that China strongly opposes the United States' preliminary ruling on dual investigations into steel tubes and woven sacks imported from China.

Mr Wang Xinpei said “China is deeply unhappy with and resolutely opposes the US practice of continuing to launch anti subsidy probes into Chinese made products after similar investigations into coated free sheet paper and carbon steel tubes.”

Mr Wang stated that the use of anti dumping and anti subsidy measures infringes US rules and the tradition of not adopting anti subsidy measures against non market economies, which has been practiced since 1984. He said this has led to frequent anti subsidy probes that are not conducive to normal bilateral trade relations.

Mr Wang said the US Department of Commerce refused to take evidence from the Chinese side. He said that the ruling has hurt greatly the interests and feelings of Chinese industry and is not acceptable to China. He added that China will continue to use legal means and necessary WTO dispute settlement mechanism to protect the legitimate rights and interests of domestic companies.

Shenhua Energy eying overseas coal resources

It is reported that China Shenhua Energy Co Ltd is considering investments in Mongolia, Indonesia and Australia to boost its production and is looking for merger and acquisition opportunities to make it larger and more profitable.

Mr Huang Qing secretary to the board of directors said in an earlier report that “China Shenhua Energy Co Ltd is now in talks to buy a coking coal deposit in Mongolia to increase its coal resources. If approved, the deposit, located in Tavan Tolgoi in Mongolia, would yield more than 10 million tonnes of coking coal annually. The deal still depends on the Mongolian government's offer.”

Shenhua said in a statement that it produced 13.5 million tonnes of coal in October 2007 equal to its September output and 18.4% more than the average monthly output of 2006. Its coal sales totaled 17.4 million tonnes in October up by 21.7% from its monthly average in 2006. Of the total sales 1.7 million tonnes were exported a 15% decrease.

In 2006 it sold 171.1 million tonnes of coal and exported 23.9 million tonnes of coal that year.

NYK ink long term iron ore freight contract with Wuhan Steel

It is reported that Nippon Yusen Kabushiki Kaisha has signed a 23 year contract with Wuhan Iron and Steel Corporation for the transport of iron ore. This is the first long term deal between the two companies.

Under the agreement, some 52 million tonnes of iron ore mined in Western Australia will be shipped primarily to Beilun in Ningbo in China’s Zhejiang province. Shipments will begin near the end of this year and for the first three years of the contract, NYK will provide service by using existing bulk carriers. An over 230,000 tonnes iron ore carrier will then go into service for the transport of this ore.

As per report WISCO’s agreement with NYK resulted from the Chinese company’s strategy of fostering long term deals with domestic and overseas shippers. WISCO plans to reach a production volume of 50 million tonnes by 2012.

Three shipbuilding bases under development in China

According to a report issued by National Development & Reform Commission China’s that three big shipbuilding bases that were nailed down in the planning for long and medium term development of the shipbuilding industry are in the process of construction.

In August 2006, the executive meetings of the State Council approved the planning for long and medium term development of the shipbuilding industry, pointing out to construct three big shipbuilding bases in Huan Bohai area, Yangtze River Estuary and Zhuijang River Estuary. After nodding at the feasibility report for building Changxing shipbuilding base project in 2005, the national planning body further approved Qingdao Haixiwan shipbuilding and repair base and Guangzhou Longque shipbuilding and repair base project.

The Qingdao base is scheduled with 2.04 million DWT shipbuilding capacities each year, the Guangzhou base 2.12 million DWT for phase 1 while Shanghai Changxing base will have two phases, of 4.5 million DWT and 3.5 million DWT respectively.

The report says China's shipbuilding capacity expanded from 3.67 million tonnes to 14.52 million tonnes in 1998-2006, completing construction of 300,000 tonnes VLCC, large scale roll off vessel etc and starting to make LNG ship, containership and 300,000 tonnes FPSO.

Shougang sales revenue to cross CNY110 billion in 2007

It is reported that Shougang steel output is expected to reach 15.4 million tonnes and the sales revenue crossing CNY 110 billion in 2007.

Mr ZhuJiMing board chairman of Shougang group said that the equipments level of CaoFeiDian bases of Shougang is the highest in the world and the equipments level of QingHuangDao steel plant of Shougang is also the best in china.

In order to ensure sustained and stable development, Shougang has accelerated the implementation of the strategy of resources, including the coal mine projects in NingXia province and ShanXi province and also make efforts for looking for overseas mine resources.

Chinese steel industry makes progress in saving energy in 2007

According to Mr Luo Bingsheng executive vice chairman of China Iron & Steel Association Chinese iron and steel industry has gained new progress in saving energy and reducing emission.

As per CISA the details of energy consumption by domestic big sized steel enterprises during January to September 2007 are as under
1. Total energy cost was 160 million tonnes of standard coal up by 11.2%
2. The integrate tonnes steel energy cost was 624.9 kilogram standard coal down by 2.4%YoY
3. The new water cost per tonne steel was 5.46 tonnes down by 18.7%YoY
4. The recycle rate of industrial water was as high as 95.95% up by 0.83%YoY.

He said the “Per unit energy cost has decreased and the growth rate of total energy cost in steel production is 6.41% points lower than the growth rate of crude steel output in the same period.”

He added that “However, total energy cost in iron and steel industry still takes over 14% in total energy cost in China and the mission is still important and difficult in future.”

China First Heavy Industries to expand casting facility

China Knowledge reported that China First Heavy Industries has embarked on a new project to set up new steel casting facility and base by investing CNY 2.3 billion.

When the project is completed in 2.5 years, China First Heavy Industries will become the largest steel casting and forging base in the world. With the completion of this project, China First Heavy Industries annual molten steel production will increase from 250,000 tonnes to 500,000 tonnes, while production of casting steel will grow from 30,000 tonnes to 60,000 tonnes.

Backing the company’s move, the Chinese government will be channeling CNY 250 million of special funds into the project to support the set up of 84,460 square meters of new facility and equipments.

China Huaneng to build power plant cluster in Ningxia

China Knowledge reported that China Huaneng Group is planning to develop CNY 30 billion projects in Taiyangshan Industrial Zone in Ningxia's Wuzhong. As per report the project include a coal to chemical project, two wind power plants, three coal fired power plants and four coal mining projects.

China Huaneng Group owns majority stake in the JV at 60%, while partner Ningxia Power Generation Company Ltd holds the remaining 40%.

China Huaneng Group has reportedly targeted to produce 325.1 billion kilowatt hours of electricity for this year. The Ningxia government told sources that Wuzhong is aiming to raise the region's coal output to 10 million tonnes, while coal to chemical output will build up to 4 million tonnes by 2010.

The coal rich Ningxia Hui Autonomous Region was established in 1958, with its abundant natural resources, well developed infrastructure and facilities has attracted companies like Shell and China Huaneng Group to build large generating units. While small coal fired plants which take up more energy and produce higher emissions are being demolished by the Ningxia government, expected to be completed by 2010.

Chinese coal output to see robust growth in decade ahead

Mr Guo Yuntao MD of China Development Research Center of Coal, while speaking on the ongoing Coal Tech Asia 2007 in Beijing, said that China's coal output is predicted to reach 2.55 billion tonnes and 3 billion tonnes in 2007 and 2010 respectively.

He said China's coal production would peak between 2020 and 2030 at about 4 billion tones per year. By 2010, China would produce over 40% of world coal output as compared to 38% in 2006.

According to World Energy Outlook 2007 by International Energy Association from 2002 to 2006, China's coal production saw average annual growth of 13% reaching 2.38 billion tonnes in 2006. China will overtake the United States as the world's largest energy consumer soon after 2010.

Masteel CR plant commissions semi automatic packing line

It is reported that Masteel’s CR semi automatic packing line was successfully testes on November 30th 2007. As a result now two semi automatic packing lines of Masteel CR plant have been put into production.

This equipment can keep the cold rolled steel coils clean, waterproof, moisture proof and effectively guarantee the packaging quality of cold rolled steel coil.

Yunnan Metallurgy Group ties with Ivernia for Magellan mine

It is reported that China’s Yunnan Metallurgical Group and Canadian listed Ivernia have announced a long term strategic partnership which will see Yunnan purchase around 50% of the lead concentrates from Ivernia’s Magellan mine in Western Australia.

The report noted that that mine is currently suspended after the well publicized environmental problems at the shipment port of Esperance earlier this year. Part of the deal just announced will see Yunnan provide working capital for Ivernia via a CAD 22 million private share placement.

Mr Alan De’ath president & CEO of Ivernia said that “We are very pleased to have YMG as a partner in the advancement of Ivernia’s growth strategy. They are a trustworthy and supportive partner with strong lead, zinc and other base metal expertise and a focused international growth objective that is compatible with Ivernia’s. YMG has extended great support to Ivernia and Magellan as we have worked through the challenges of the past nine months and will now be our major customer going forward over the life of the mine. The fact that the companies have worked so well together for over a year is a sure indication of the strength of the relationship.”

Severstal announced its January to September 2007 result

Russian steel major Severstal has announced its results for January to September 2007 which show strong improvement as compared with the same period last year although third quarter production was impacted by one off events, resulting in lower revenues and profit than in the second quarter.

Financial Results for January to September 2007

In million USD
Highlight for January to September 2007 period are

1. Severstal’s consolidated revenues increased by 23.7% to USD 11,283 million in January to September 2007 attributable to three main factors including higher average prices, volume growth and product mix improvements.

2. Costs were USD 7,955 million in January to September 2007 compared with USD 6,619 million for the same period of 2006. The primary drivers behind this change were cost inflation in raw materials, energy and labor. Cost of revenues as a percentage of consolidated revenues decreased to 70.5% reflecting the company’s ability to pass cost increases on to end customers.

3. Gross profit increased by 32.9% to USD 3,328 million in January to September 2007 compared with USD 2,504 million for the same period of 2006.

4. Profit from operations increased by 44.1% to USD 2,029 million in January to September 2007. This increase was due to positive steel prices and cost control measures.

5. Group operating margin went up to 18.0%.

Mr Alexei Mordashov CEO of OAO Severstal said “I am pleased to announce strong growth for Severstal for the first nine months of the year with net profit and EPS up 60.7% and 48.3%YoY respectively. Third quarter production was impacted by one off events resulting in lower revenues and profit than in the second quarter. As a result of operational improvements, a robust and growing Russian economy, and relatively strong prices in other world markets, the Board remains confident of meeting market expectations for the full year.”

MMK announce its January to September 2007 results

Open Joint Stock Company Magnitogorsk Iron and Steel Works, one of the leading Russian integrated steel making companies, has announces the results of its consolidated financial statements for January to September of 2007.

MMK, Russia's third largest steel maker said that the rise in revenues resulted from higher steel prices and an increase in production and shipments of steel products.

The statement said MMK produced 9.93 million tonnes and sold 9.07 million tonnes of commercial steel products in January to September an increase of 8.1% and 8.6%respectively from the same period of 2006. The average price of steel products sold by MMK in January to September 2007 was USD 586 per tonne 20.7%YoY higher than in the same period of 2006.

Siemens to modernize Severstal’s Cherepovets HSM

Siemens announced that it has received orders to modernize the mechanical equipment from Severstal. The objective of modernization projects is to improve the productivity and availability of the plant.

Siemens is to equip the roughing mill of the hot rolling mill in Cherepovets with new hydraulic screwdown systems for an edger and new automation. Commissioning is planned for February 2009.

For expansion of the hot strip mill, Siemens will provide new power supply systems for the drives of the five roughing mill stands, hydraulic edger screwdown systems and more powerful motors for edger number 1. A completely new basic and process automation system for the roughing mill, including process models, will also be installed. The modernization is aimed at increasing the yield of material from the rolling mill and improving the overall production flow in the factory.

Severstal is the second largest flat steel producer in Russia. Hot strip mill 2 has an annual production output of six million metric tons, most of which is input material for the downstream cold rolling mills and strip processing lines as well as for direct export.

Ukrainian president insists on Zasyadko mine closure

Mr Viktor Yushchenko President of Ukraine in a written telegram to Mr Viktor Yanukovych prime mister of Ukraine on the subject of the last accident at Zasyadko mine said that “Regarding another accident at Zasyadko mine which resulted in lives loss, I insist on the immediate and utter closure of the mine until all circumstances and causes of November 18th 2007 and December 1st and 2nd accidents are investigated.”

Mr Yushchenko also demanded urgent investigation of officials’ activity including those of heads of responsible institutions who allowed negligence and kept the mine functioning without clarifying the causes of the first tragedy. He said “Results of this investigation must be forwarded to Prosecutor General for applying legally provided reaction measures. Please inform me on the results in three days term.”

Mr Mordashov buys blocking stake in Power Machines

RIA Novosti reported that Electricity monopoly Unified Energy System of Russia has finalized a deal to sell a blocking stake of 25% plus one share in Power Machines to Highstat Ltd.

Cyprus registered Highstat Ltd, owned by Russian steel tycoon Mr Alexei Mordashov, made the highest bid for the proposed stake on recently offering RUB 11.8 billion or RUB 5.42 per ordinary share, approximately 25% above the market price. Mr Mordashov already holds a 30.4% share in Power Machines.

Unified Energy System decided to sell the blocking stake in Power Machines late in March 2007 and ruled that it be sold to a private Russian strategic investor late in August 2007.

Power Machines, Russia's leading heavy machinery manufacture is currently owned by financial holding Interros, Unified Energy System and German electronics and engineering giant Siemens.

Siemens to supply power plant equipments to Power machines

Siemens Power Generation has announced that it has been awarded a contract by Power Machines for the supply of major power plant components for the Urengoiskaya and Kirishi projects in Russia. The total value of the orders for Siemens PG is approximately EUR 90 million.

For the advanced 450 MW combined cycle power plant Urengoiskaya in the Tjumen region of northwest Siberia, Siemens Power Generation and Power Machines will supply two gas turbines.

The existing 6x300 MW steam power plant Kirishi, located 120 kilometers east of St Petersburg, is the first project in which the new Siemens Repowering System will be deployed. One of the existing steam power plant units will be equipped with advanced gas turbines instead of a boiler. For Kirishi, Siemens Power Generation will supply two gas turbines, two generators, the electrical equipment and the requisite auxiliary systems.

Mr Michael Suess member of the Group Executive Management of Siemens Power Generation said that "Siemens has been cooperating successfully with Power Machines since the early 1990s. In the course of the last 12 months there has been an enormous dynamic upswing in demand in the Russian power plant market. He said that as a strategic partner of Power Machines Siemens is actively involved in the requisite modernization and further expansion of the Russian power plant fleet."

Karelia steelmakers increased their output by 14.3%YoY.

It is reported that Metallurgical enterprises of Karelia has increased their output volumes by 14.3%YoY to RUB 5.664 milliard in January to October of 2007 in comparison with the similar period of last year.

The index of metallurgical and finished product production in October 2007 made 104%YoY in comparison with the similar period of last year and it was 108.9% in January to October of 2007. Wire production was 6.478,000 tonnes in October 2007.

Russia extends mineral resources term for geological survey

RIA Novosti reported that Mr Vladimir Putin president of Russia has signed a law extending the term for the use of mineral resources for geological prospecting from five to ten years.

The law, which was passed by the State Duma, the lower house of Russia's parliament, on November 16th 2007 and approved by the Federation Council, the upper house of Russia's parliament, on November 23rd 2007 applies to the deposits of internal maritime waters, territorial seas and the continental shelf.

The analysis of the use of mineral resources has shown that the current term of five years may prove to be insufficient to carry out geological prospecting.

Imperial Energy increases oil output in Western Siberia

RIA Novosti reported that British company Imperial Energy has increased output at its oil deposits in Western Siberia by 17.6% to 10,000 barrels per day.

Imperial Energy said in a statement that "Imperial has achieved its year end production target of 10,000 barrel per day currently producing at a rate of 10,000 barrel per day which continues to increase. It said its reserve audit data as of December 31st 2006 reserves amount to 802.6 million barrels.

Imperial Energy earlier said it plans to produce 10,000 barrels per day by late 2007, 25,000 barrel per day by late 2008 and 35,000 barrel per day by late 2009.It said it had invested USD 600 million in the development of its oil deposits in Russia.

Imperial Energy, a British company focused on oil exploration and production in former Soviet republics holds licenses to explore and develop oil deposits in Russia's Tomsk Region.

LUKoil to boost oil refining by 34%YoY

RIA Novosti reported that LUKoil plans to boost crude oil refining at its enterprises by 34% to 65.7 million tonnes per year by 2017 compared with 2006.

LUKoil said "In accordance with the general plan for the development of refineries in 2006-2017 as an integral part of LUKoil's intensive growth strategy, refining at the company's enterprises is expected to rise to 65.7 million tonnes per year by 2017."

LUKoil which accounts for about 1.3% of global oil reserves and 2.1% of world crude output develops its main deposits in Western Siberia. The company contributes 18% to Russia's oil output and 18% to the country's oil refining.