Police deployed at POSCO site

SNS reported that Mr Pramod Kumar Mehereda DC of Jagatsinghpur district of Orissa has asserted that police deployment at the proposed POSCO is only to restore normalcy and that there is no breach of human rights of people of Dhinkia village.

He claimed that people of Nuagaon, Noliasahi, Gadakujang and other villages are positive in their response to steps undertaken by the district administration including the deployment of police. Villagers have formed committees and they had demanded increased police deployment to ensure peace in the troubled villages.

Asked about reports of Maoists presence and contacts in the troubled area, Mr RK Sharma SP of the district has conceded that there were such reports and the intelligence wings were on the job to ascertain presence or contacts of Maoists in the region. He informed that 5 platoons will soon be added to the existing 13 platoons in the proposed POSCO site area.

ABG Shipyard may set up mega shipyard in Surat

Exim News Service reported that ABG Shipyard Limited is planning an INR 1,400 crore shipyard in Surat besides its existing facility.

The new facility would be capable of building large ships, including VLCCs, as compared to the existing capacity of building ships only up to 120,000 DWT.

The report cited an official of ABG Shipyard as saying that "We are trying to synergize facilities and manpower for the yard expansion."

As per report, ABG Shipyard may sell at least 15% stake to raise USD 200 million at current market prices to finance the new project.

India’s mineral production in April to September up by 5.3% YoY

It is reported that India’s mineral production from mining and quarrying sector in September 2007 has marginally decreased by 0.81% MoM as compare to that of August 2007. However, the mineral sector has shown a positive growth of 5.26% YoY during April to September 2007 period as compare to April to September 2006 period. The mineral production in September 2007 was also higher by 5.99%YoY.

The total value of mineral production excluding atomic & minor minerals in India during September 2007 stood at INR 6683 crore. Out of the total value the details of contribution are
1) Coal with INR 2537 crore or 38%
2) Crude petroleum with INR 1556 crore or 23.2%
3) Iron ore with INR 1091 crore or 16.3%
4) Utilized natural gas with INR 754 crore or 11.2%
5) Lignite with INR 198 crore or 3%
6) Limestone with INR 164 crore or 2.4%
These 6 minerals together contributed about 94% of the total value of mineral production in September 2007.

Production level of important minerals in September 2007 is

Source: Ministry of mine, government of India

HCC to float infrastructure subsidiary

It is reported that Hindustan Construction Company is planning to tap the opportunities in public private partnerships for India's infrastructure.

Mr Ajit Gulabchand CMD of HCC, while addressing on the sidelines of the India Economic Summit 2007, said that it is planning to float a wholly owned subsidiary called HCC infra to bid for public private partnership projects including airports.

He added that “We will soon float a 100% subsidiary to bid for PPP projects and will also bid for developing airports. We are in talks with foreign firms. All this would require lot of money. Initially, we will bring in the money. We will look at an IPO at a later stage".

Mr Gulabchand informed that HCC seeks to become an integrated infrastructure company with a foray in hydel power and ports apart from airport. It expects the 3 sectors of real estate, infrastructure and construction services to be its growth drivers. Acquiring a land bank of 2,000 acres in regions like Mumbai Metropolitan region and Pune is also on cards for HCC.

HCC is expecting to close fiscal 2008 with a turnover of over INR 3,000 crore, while its order book is expected to cross INR 12,000 crore up from INR 9,300 crore in 2006-07 fiscal.

CIL profits in 2007-08 likely to dip - Report

BL reported that Coal India Limited may witness a dip in its profits for the second consecutive year in 2007-08 after a 5.3% drop in profit to INR 8,676 crore during 2006-07. According to sources, non revision of notified price for over 3 years vis a vis 15% increase in costs has led to a drastic squeeze in CIL’s profit margin. While the subsidiaries such as NCL, WCL, SECL and MCL could maintain the profitability by reducing costs accordingly, ECL, BCCL felt the brunt.

As per report, CIL’s subsidiary Eastern Coalfields Limited and Bharat Coking Coal Limited, which had made a dramatic turnaround 2 years back, after a few decades long sickness may once again, slip into the red. The report cited an official of CIL as saying that “The situation is a bit tight this year. Both ECL and BCCL are incurring losses till date. While BCCL has changed its product profile according to the market demand and is trying its best to break even, ECL is in deeper trouble due to lower production and lower realization.”

Meanwhile CIL’s 4 top notch subsidiaries namely Northern Coalfields, Western Coalfields, South Eastern Coalfields and Mahanadi Coalfields, are expected to maintain profits at the same level as the last year.

E auction had played a major role in turning around both these companies through higher realization, till e auction was suspended from operation due to a Supreme Court order during 2006. Though e auction has resumed on November 26th 2007 in a new format, CIL is expecting to sell not more than 15 million tonnes of coal through the system during the remaining 4 months of 2007-08. Meanwhile, e auction registered 50% higher average realization than the notified price during the first week of resumption of services. CIL sources are hopeful that the trend will continue for the residual part of the year.

On the production part, heavy rains during this year has impacted the production of the open cast mines, which are the major profit churner of CIL.

SCI to acquire 62 new vessels to replace older ones

Mr Thiru TR Baalu union minister of shipping, road transport and highways said that Shipping Corporation of India has planned to acquire 62 vessels during the 11th Five Year Plan to replace its existing ageing fleet and to augment the fleet of SCI.

Union government has already approved the proposals of SCI for acquisition of 18 vessels of various categories during 2007-08.

Orissa assures land for Monnet Ispat’s revised plans

BS reported that Orissa government has assured Monnet Ispat & Energy Limited to give 620 acres of government land at its proposed integrated steel plant and a 1,000 MW power plant in Angul district in the next 2 months. As per report, Industrial Infrastructure Development Corporation will soon initiate measures to hand over the government land to Monnet Ispat.

Monnet Ispat requires 1,750 acres. Out of this, 1000 acres is earmarked for the power plant, 220 acres for the steel plant, 295 acres for coal mining and the remaining 235 acres for stacking overburden. Though it has taken possession of 520 acres, the balance 1,230 acres is yet to be acquired. Around 620 acres is government land while the remaining 610 acres is private.

Mr Sandeep Jajodia executive vice CMD of Monnet Ispat & Energy Limited said that it hoped to complete the land acquisition for its proposed INR 4,200 crore 1,000 MW power plant at Chhendipada and the steel mill at Nisha in next 3 to 6 months. He added that "We are already in possession of 520 acres of land and have started the pre construction work both for the steel and power plants. We hope to complete the acquisition of the remaining land in the next 3 to 6 months."

Mr Jajodia said that the site development and boundary wall construction is going on at full speed and the actual construction would start in January 2008. He added that however, it will stick to the original schedule of commissioning the independent power plant by 2010 and steel plant at Nisha in 15 to 18 months.

Monnet originally planned to set up a 0.25 million tonne per annum steel plant at Mangalpur in Dhenkanal. Though it started land acquisition with assistance from IDCO, it could not succeed in acquiring the requisite land. So it requested the state government to change the site of the steel plant to Nisha in the Angul district. The Orissa government accepted the company’s request in May 2006. Since then, it has acquired about 100 acres for its proposed steel plant out of the total requirement of 220 acres. The remaining land will be acquired in the next 4 to 5 months.

BHEL breaks ground for 2 units at Jagdishpur

It is reported that, as part of its manufacturing capacity expansion to 15,000 MW per annum in the next 2 years, Bharat Heavy Electricals Limited is setting up a new fabrication plant and a central stamping unit at Jagdishpur in Sultanpur district of Uttar Pradesh at a cumulative initial investment of INR 306 crore. BHEL said that the foundation stones for both the new units were laid by Congress general secretary and MP Mr Rahul Gandhi. BHEL already has an insulator plant at Jagdishpur.

The new fabrication plant is being set up to meet the burgeoning requirement of fabricated component assemblies required by BHEL’s major units at Bhopal, Haridwar, Hyderabad and Trichy in view of the company’s capacity augmentation to 15,000 MW. The plant would produce around 25,000 tonnes per annum, including about 16,000 tonnes of structures of boilers for power plant sites in the eastern and northern regions.

BHEL said that the central stamping unit is being set up to meet the increased requirement of stampings, a critical part of electrical machines, due to growth in business and market demand for generators and electrical motors. The central stamping unit will be set up at an investment of INR94 crore. Currently, stampings are being manufactured in the Bhopal, Hyderabad and Haridwar units of BHEL with a total installed capacity of about 7.7 million stampings per annum. The demand for stampings is estimated to go up to 13 million per year by 2010-11, for which a centralized unit is being set up.

Mr Ashok K Puri CMD of BHEL said that BHEL’s contribution had crossed 100,000 MW this year covering both the domestic and export markets, in addition to supplying over 25,000 units of electric motors, 70,000 units of traction machines and over 300,000 MVS transformer. He added that “The domestic capability must be nurtured in future too when India is embarking upon an ambitious nuclear power generation program.”

The new project will become fully operational in 3 years and is expected to provide direct and indirect employment to about 1,000 people in the category of technicians, supervisors and engineers.

Outotec opens new office in India

It is reported that Outotec has established subsidiaries in India and in Kazakhstan in order to better serve the growing markets in the countries.

Mr Tapani Järvinen president & CEO of Outotec said that "Expanding our geographical presence is one part of our growth strategy.”

He said that “In India there is high potential for growing our business due to the rapid increase in metals demand. We already have several clients in the region and this office will help us serve them better.”

Uttarakhand to revise its power policy to protect local interests

BS reported that, in the face of the mega 6,000 MW Pancheshwar multi purpose project hanging fire, Uttarakhand government is revising its power policy focusing on mini, small, solar based, bio mass projects and safeguarding the interests of locals by their participation in such ventures. The policy is likely to be released by early 2008.

Uttarakhand government is opposing big dams in the light of fresh reports that the centre spent a huge INR 10,000 crore for building the 2,400 MW Tehri dam, which saw the submergence of the Old Tehri town as well as nearly 125 villages in the reservoir. The lingering rehabilitation problem of Tehri dam is still continuing with the state government seeking a fresh package of INR 250 crore.

With the centre seeking approval from the Uttarakhand government on its move to build the Pancheshwar hydel project, thrice the size of Tehri dam, on the river Kali in Pithoragarh and Champawat districts bordering Nepal, the officials said that a nod in this regard is unlikely as the new dam would create much bigger rehabilitation problem than the Tehri in the context of the new policy.

Uttarakhand Infrastructure Projects Company Private Limited has been given the task to prepare project reports of various hydro projects in addition to those already allotted or are in the process of being allotted. Uttarakhand has already identified 20,000 MW of hydel power. Nearly 400 projects in this regard have also been proposed. Till now, it is generating only 2,819 MW of power and at present, different projects with the capacity of generating 11,480 MW of power are at various stages of construction.

Currently, Uttarakhand needs 15.5 million units of power daily whereas the power production in the state stands only at 5 million units. To meet the gap, it is taking 6.5 million units of power from the central pool. Besides 2 million units are being overdrawn. Apart from this, it is also taking back 1 million units which it had banked in Punjab and Haryana. But all this has left with a deficiency of 2 to 3 million units of power.

UMPP developers should not bid for another project - Report

Parliamentary Standing Committee on Energy has suggested that developers of ultra mega power project who have already bagged one project should not be allowed to bid for another on the basis of the same balance sheet on which the earlier project was won. However, it feels that if the balance sheet is so strong that it could meet the eligibility criterion for 2 power projects together they may be permitted to bid.

The committee, which laid its report in Parliament, feels that doing this would not only encourage competition but also ensure that projects are not monopolized by a few companies.

It has recommended that the ministry of power devise a formula, which assures a reasonable share of the power generated from the UMPP located in their state. It is of the opinion that a formula be devised taking into consideration various factors such as power shortage in the state and the status of infrastructure for evacuation of power, among others. The report states that “The allocation on the basis of a formula should be completely objective leaving no scope for any grievance from the states. Besides, the state governments should be involved in during the whole process of development of UMPP.”

At the moment, Reliance Power is developing the Sasan UMPP plant in Madhya Pradesh and the Krishnapatnam UMPP in Andhra Pradesh while TATA Power Limited is undertaking the development of the Mundra UMPP in Gujarat.

RIL and GAIL join hands for overseas petro ventures

It is reported that Reliance Industries Limited and GAIL Indian have signed a MoU for joint co operation in petrochemicals. As per the agreement, Reliance and GAIL will explore opportunities outside of India and set up a joint working group that will examine opportunities in the Middle East, Russia and countries in the former Soviet Union. They will also set up a special purpose vehicle to set up petrochemical complexes abroad.

RIL, in a statement, said that the working group is examining opportunities in Russia, Qatar, Saudi Arabia, UAE, Algeria, Nigeria and former Soviet republics. In addition, they would also examine the possibilities of mutual cooperation in the domestic market.

Mr Mukesh Ambani chairman of RIL said that “GAIL and RIL are India’s leading companies in the energy and infrastructure sectors. The decision will enable us to look for opportunities globally on a competitive scale for the petrochemical business, which will further strengthen India’s position on the global map.”

Mr UD Choubey chairman of GAIL said that “This is an important milestone for both the companies. It is an extension of the concept of working together, which took shape with the signing of MoU in the natural gas sector between GAIL and RIL earlier this year. The MoU signed today is the beginning of cooperation in the area of petrochemicals.” He added that project details, cost, financing and equity will be decided once sites are selected and feasibility report commissioned.

As RIL gears up to bring gas from the Krishna Godavari basin in the market next year, it would require GAIL’s pipeline infrastructure to reach out to potential customers.

NEPC India plans to raise USD150 million for expansion

BS reported that NEPC India is all set to embark on a major expansion drive in the solar energy sector and is proposing to raise USD 150 million by way of foreign currency convertible bonds and global depository receipts to fund its expansion activities.

As per report, NEPC board has resolved to call an extra ordinary general meeting of its members on December 24th 2007 regarding the proposed foreign currency convertible bonds and global depository receipts issue and to obtain approval of the members for the proposed increase in the authorized share capital of the company from the existing INR 150 crore.

NEPC plans foray into solar photo voltaic modules and power plant and is proposing to establish a state of the art production facility to manufacture thin film solar photo voltaic modules, considered to be an advanced technology to generate cost-effective power, and cater to the high demand for solar PV modules all over the world. Its solar power system has been able to garner a 30% market share in northern India and is now proposing to expand into the southern region as well.

Coal ministry to consider applications for coal allocation

Dr Dasari Narayana Rao union minister of state for coal said that screening committee in the ministry of coal will consider the applications received for allocation of 23 non power coal blocks.

Union government has decided to allocate Rampia, having geological reserves of 275.24 million tonnes and Dipside of Rampia having, geological reserves of 360 million tonnes coal blocks, located in Orissa to the following 6 companies for generation of power
1. Sterlite Energy Limited
2. GMR Energy Limited
3. Lanco Group Limited
4. Navbharat Power Private Limited
5. Mittal Steel India Limited
6. Reliance Energy Limited

Shakti Pumps bags pump supply order from AP

BS reported that irrigation pump maker Shakti Pumps India Limited has entered into an agreement with Andhra Pradesh panchayat raj engineering & rural water supply department to supply energy efficient pumps. This is the first ever contract received by Shakti Pumps from any state government. It has also approached 10 other state governments and given proof of concept to them for similar agreements.

The Andhra Pradesh government has considered that energy efficient pumps can play an important role and in continuation of this process, has executed an agreement with Shakti Pumps. It plans to replace the existing conventional pumps in the state with Shakti Pump’s energy efficient pumps, which is expected to result in power saving of up to 40% for the government.

Mr Dinesh Patidar MD of Shakti Pumps said that “We have signed a single tender contract with the Andhra Pradesh government. The government has agreed to our rates and we expect to start supplying energy efficient pumps to it from January 2008.”

Shakti Pumps achieved a turnover of INR 63 crore, including exports of INR 35 crore in 2006. It expects to garner INR 90 crore from exports and INR 60 crore from domestic sales this financial year.

Shree Cement bags environmental excellence & quality award

It is reported that National Council for Cement & Building Materials has awarded the awards for sustainability in the fields of electrical and thermal energy, as well as environmental excellence and quality as a manufacturer of cement and building materials to Shree Cements Limited. Mr NN Prasad joint secretary for independent power project in the central ministry of commerce and industry presented the awards to Mr Prashant Bangur of Shree Cement.

The award recognized Shree Cement’s commitment towards adopting innovative techniques and technologies as well promoting cost economy besides enhancing its eco friendly corporate image and boosting the morale of employees and stakeholders.

NCCB presented the award after a presentation made at a seminar on the issue by Mr R Bhargava of Shree Cements Limited on clean development mechanism to mitigate carbon dioxide emission in the cement industry. The paper on cement sustainability initiatives highlighted climate change issues, environment, health and safety. Mr JP Ameta of Shree Cement presented a second paper on optimization of cement grinding circuit.

Mr MK Singhi executive director of Shree Cement said that it’s “Clean & Green drive was profitable. It would continue to work to improve its triple bottom line while involving employees at all levels in the operation and management activities and decision making.”

Maersk bags Lloyd’s List Shipping Company of the Year award

Maersk Line has announced that it has received the Lloyd’s List Shipping Company of the Year award for its operation in the Indian subcontinent and West Asia.

Maersk offers a network of services comprising 6 weekly direct services to and from India, including the only direct mainline services from the port of Chennai, covering all major trade lanes. Its regional transshipment operations, mainly concentrated in Salalah in Oman and Colombo in Sri Lanka cater to a much wider market.

Maersk Line is one of the world's largest liner shipping companies, with a network of own offices in 125 countries worldwide. Maersk Company Limited acts as the UK and Ireland agent for Maersk Line, operating seven Maersk Line offices within the UK and Ireland.

CIL’s CCL to organize a mega health camp for disabled persons

Ranchi Express reported that Coal India Limited’s Central Coalfields Limited has taken a number of steps for the disabled persons of their rehabilitation & resettlement and will organize a mega camp for them by the end of December 2007.

Mr TK Chand director personnel of CCL said that “In the proposed camp, distribution of artificial limbs and calipers would be made among the disabled.”

He further said it had recently donated a full range of LPG cooking system to Sukrigraha Viklang Vidyalaya, which has 150 disabled children, under its community development program.

POSCO set to become world’s 2nd largest steelmaker

It is reported that South Korean POSCO has reignited its Kwangyang No 3 blast furnace leading to additional output of 650,000 tonnes, which will result in POSCO’s annual production capacity to reach 33 million tonnes making it the 2nd largest steelmaker in the world.

POSCO disclosed on November 30th 2007 that “The 17 year operated melting furnace 3 at the Gwangyang steel mill was repaired for 55 days and a ceremony was held to light the furnace again. The firing ceremony on this day was attended by approximately 200 participants including Chairman Mr Lee Gu-taek, POSCO employees and heads of corporate partners.”

POSCO said, “The recent production capacity expansion equipped POSCO with an annual productivity of 33 million tonnes. Since our Japanese competitors have not developed their production facilities recently, POSCO is expected to rise as the world’s second ranking steelmaker following ArcelorMittal.”

This recent repair enables Gwangyang melting furnace 3 to produce 3.85 million tonnes of liquid steel annually. Having completed building the Finex facility scaled at 1.5 million tonne annual production late May, POSCO’s productivity is now anticipated to reach 33 million tonnes in 2008.

As per the available figures, output from No 1 steelmaker ArcelorMittal is around 117.2 million tonnes and No 2 steelmaker Nippon Steel is capable of producing 32.7 million tonnes. POSCO is expected to narrowly beat the world’s second and third ranking Nippon Steel Corporation and JFE Steel in crude steel productions.

ArcelorMittal launches buyout for ArcelorMittal Inox Brazil

ArcelorMittal announced its intention to launch a de listing cash offer to acquire the 43% outstanding shares in ArcelorMittal Inox Brazil SA it does not currently own. ArcelorMittal currently owns a 57% stake in ArcelorMittal Inox Brazil.

ArcelorMittal said that the price for the offer should be BRR 100 per common share and BRR 100 per preferred share of ArcelorMittal Inox Brasil, representing a premium of approximately 22% to the 60 day average preferred share market price. Payment for the shares tendered in the Offer shall be made in cash payment and adjusted in connection with any dividends paid by ArcelorMittal Inox Brasil between now and the date of the physical settlement of the Offer.

The steelmaker, which intends to delist the company, said a group of shareholders owning 157,300 common shares and 7.91 million preferred shares had already committed to sell. The offer's launch must be approved by Brazilian financial markets regulator CVM.

Mr LN Mittal president & CEO of ArcelorMittal said that “This tender is strategically beneficial to ArcelorMittal because it not only reinforces our position in the high growth area of Latin America, but it also strengthens our position in silicon steel, ferritics and specialty stainless steel.”

BHPB bid for Rio - Rio Tinto welcomes Chinese reports

It is reported that Rio Tinto is prepared to consider approaches from China after it was reported that the country's largest steelmaker was planning an offer that could value Rio at more than USD 200 billion.

Mr Tom Albanese CEO of Rio recently said that the company was listening but not engaged in talks with the Chinese government and steelmakers who are the largest customers for Rio's Australian iron ore mines.

As per reports, Rio is understood to have softened its position and is now prepared to talk if a formal offer at a large enough price is forthcoming.

Mr Xu Lejiang president of Baosteel was quoted by a state run newspaper as saying that "I am afraid USD 200 billion would not be enough." Mr Lejiang was also cited as saying "We are still studying the plan and are discussing how to launch a bid. If you ask how strong the possibility is, it is quite strong. But, of course, there are other possible responses as well."

ArcelorMittal wants global steel emissions deal

Mr LN Mittal head of global steel giant ArcelorMittal during a news interview told Belgian business daily De Tijd that the steel industry should be covered by a global deal on carbon dioxide emissions.

Mr Mittal said that he believed a level should be set for the allowed emissions per tonne of steel. Steel producers below that level should be given a credit, while those above would be forced to buy credits. He added that "In this way you make the sector invest in efficient solutions so as constantly to improve its technology.”

He added that “ArcelorMittal is investing millions to reduce emissions at its plants. But I think that we need a sector deal on the environment for the whole of the steel industry. An average Chinese steel plant emits twice as much carbon dioxide as a European one. But the Chinese steel can be imported into Europe without any problems.”

Mr Mittal said that European Commissioner for Industry, Mr Guenter Verheugen, supported this idea and planned to set up a committee of experts next year with steel representatives.

IBS forecast Brazil steel production in 2007 to be up by 10% YoY

According to the figures from Brazilian Iron and Steel Sector Association, this year Brazilian steel output is reported at 34 million tonnes in 2007 so far, up by 9.9% YoY as compared to 2006. IBS in a statement said that in 2008 Brazil is expected to produce 37.6 million tonnes up by 10.8% more than 2007, though installed capacity will be at 41 million tonnes by the end of 2007.

It added that the internal sales are due to jump by 18% in 2007 to 20.6 million tonnes while apparent consumption is to rise 19.7% to 22.1 million tonnes. Internal sales of flat steel products is expected to increase 17.8% while apparent consumption to go up 20.5% mainly due to record automotive production in addition to improvement in the oil and gas sectors, agricultural heavy machinery and appliances. IBS without providing figures said that long steel owes its performance to renewed housing construction driven by better availability of mortgage credit.

In exports, IBS said it expects Brazil to ship abroad 10.5 million tonnes of steel this year, 2 million tonnes less than previously forecast and 15.6% less than in 2006. But because of increased steel prices, this year's export revenues are to total USD 6.8 million, only 1.4% less than last year.

IBS said that Brazil is forecast to import 1.6 million tonnes of steel in 2007 or 12% less than in 2006.

Japanese steel exports in October up by 10.5% YoY

According to a report from the Japan Iron and Steel Federation, export of Japanese iron and steel increased by 10.5% YoY to 3.13 million tonnes in October 2007.

The report added in October, exports to South Korea increased by 26.2% YoY and those to Thailand surged by 25.7% YoY. Exports to Taiwan grew by 16.7% YoY. Meanwhile, exports to China were down by 5.8% YoY and those to the United States slipped by 4.7% YoY.

The report also showed that at the same time, total imports of steel to Japan declined by 6.7% YoY. Imports from South Korea were up by 17%YoY and those from China plunged by 44.3% YoY. Imports from Taiwan dropped by 4.8% YoY.

Tenova LOI to supply a new reheating furnace to Trametal

LOI Italimpianti has signed a contract with Italy’s Trametal SpA for the supply of a 100 tonne per hour reheating furnace to be installed at S Giorgio di Nogaro Plant in Italy. The contract will be managed by the Italian office of LOI Italimpianti based in Genoa. The start up of the furnace will be within September 2008.

LOI Italimpianti will provide a turn key furnace equipped with a three ways pusher bottom and top fired. The combustion system is a regenerative type with preheated combustion air and is designed for firing natural gas through LOI Italimpianti in house developed FlexyTech ® Low NOx burners.

The contract’s scope of supply will also include a charging table and the charging/discharging handling system necessary to connect the furnace with the quarto reversing rolling mill.

Trametal is one of the major companies of the Malacalza Group, operating in plate mill is expected to considerably increase its productivity with this new facility.

Japanese shipping firms to buy mega iron ore carriers

Nikkei without citing anyone reported that Japanese Mitsui OSK Lines Ltd, Nippon Yusen KK and Kawasaki Kisen Kaisha Ltd plan to buy 12 giant iron ore carriers for about JPY 60 billion (USD 545.6 million) by 2011.

The news service said that the ships will able to carry about 300,000 tonnes each, exceeding the 170,000 tonnes capacity of standard large bulk carriers. They're also expected to cut fuel costs by about 10% per tonne of iron ore shipped.

The news service added that only nine 300,000 tonnes class bulk carriers are currently operating worldwide, none owned by these three companies. Presently, a few facilities can accommodate the ships including ports in Brazil and select Japanese steelmakers.

Nikkei said that as transport fees and fuel prices surge, shipping companies are trying lower costs by using larger vessels. The amount of iron ore transported by sea is projected to rise about 80% in 2007 from a decade ago because of greater steel production in China and other emerging economies.

US auto sales dimmed by soft economy and housing woes

It is reported that US auto sales were stuck in low gear in November as soft economic conditions and worries about a housing maelstrom kept consumers cautious. According to an estimate by research firm Autodata, total light vehicle sales fell by 1.6% YoY in November 2007.

General Motors Corp, the leading US automaker said that domestic new car sales skidded 11% in November, citing soft demand and a reduction in daily rental sales. It added that it sold 263,654 vehicles in the United States, 11% less than in November 2006.

Ford Motor Co saw a modest 0.4% rise in unit new car sales in November after 12 consecutive months of declines, delivering 182,951 new cars and trucks. It said that its sales were also lifted by interest in vehicles equipped with its mobile entertainment and communication system called SYNC, developed by Microsoft.

Chrysler LLC on Monday said that its new car sales in the United States for November dropped 2% from a year ago to 161,088, citing troubles with credit and housing. Mr Darryl Jackson vice president of Chrsyler said that the number three US manufacturer’s performance was encouraging in view of the economy.

Mr David Healy at Burnham Securities citing the credit and housing woes hitting the US economy said that “There are a number of headwinds in the car markets. Auto credit is available but a lot people are stressed with the subprime housing situation and that’s putting a chill on the car market. Higher gasoline prices are a factor as well.”

Analyst Ms Rebecca Lindland at Global Insight said that the sluggish sales picture is unlikely to improve until the economic outlook brightens. She added that “All the automakers will have to see a better economic backdrop. No one is going to be doing well next year. We are looking at a very nervous consumer, a consumer who is not going to be buying a new house or a new car.”

Indonesia to start limiting coal export in 2009

According to local media, Indonesian government will limit the export of coal to 150 million tonnes a year from 2009 to 2025 to secure domestic supplies.

Bisnis Indonesia newspaper quoted Mr Simon Felix director general of coal industry as saying that "The policy was adopted in the 2004 Indonesian Coal Policy. Coal export is allowed under the ceiling of 150 million tonnes a year.”

As per report, Indonesia needs stable supplies of huge amount of coals to fuel at least 35 new power plants to operate in 2009. State run electricity company PLN alone will need supplies of up to 75 million tonnes of coal in 2010 to fuel its generators.

Indonesia produced some 193 million tons of coal in 2006, with export sales accounting for about 70% of its production.

World steel market to remain strong till 2010- ITIS

According to analysts from Taiwan’s Industry & Technology Intelligence Services, a market research institution, after suffering a recession in 2001, the global steel market bottomed out and began recovering in the past two years, with prices being pushed upward by strong demand from China.

It predicted that due to continuous mergers and acquisitions among suppliers around the world, the steel industries performance outlook is rosy up to 2010.

According to an industrial report issued by Industry & Technology Intelligence Services, global demand for steel products will amount to 1.198 billion tonnes this year, up by 6.8% YoY and will further grow by 7% to 1.279 billion tonnes in 2008.

The report added that among countries with strong demand for steel this year and next are India, China, Saudi Arabia, Iran, Russia, Turkey, Brazil, and Mexico, with the first four all posting annual growths of over 10% in steel consumption.

Industry & Technology Intelligence Services also pointed out that in general, steel manufacturers tend to carry out acquisitions whenever a recession hits the industry. The resurgent market of the past few years has bucked this trend with surprising wave of mergers all over the world, in which quite a few large steel firms have acquired small and medium sized companies in the Asia Pacific, Central and Western Europe and Latin America.

Siemens to upgrade SDI Bar Mill at Pittsboro

It is reported that Siemens Metals Technologies has a new contract from Steel Dynamics Inc. to modernize the bar mill at SDI's long products plant at Pittsboro in Indiana. The project is to be completed late next year.

The project involves installing two new roughing stands in the 11 year old line, originally build by Pomini SA for the site's first operator Qualitech Steel.

The present operation is capable of producing 550,000 tons per year of special bar quality steels. The new Red Ring roughing stands are part of an improvement and expansion program to roll larger blooms and raise the mill's capacity to 750,000 tons per year.

SDI acquired Qualitech in 2001 whereas Siemens acquired the former Pomini operations in the course of its takeover of Voest Alpine Industrieanlagenbau in 2005.

Currently, Siemens is also supplying the major equipment for a new billet caster at SDI's Structural and Rail division at Columbia City in Indiana.

PT Timah to increase tin production in 2008

M Krishna Syarif finance director of Timah told reporters in Jakarta that Indonesia’s PT Timah plans to produce and sell 60,000 tonnes of tin in 2008.

According to reports by Bloomberg and Reuters, production in 2007 is estimated to be between 57,000 to 59,000 tonnes, although a separate story the Antara news agency quoted Mr R Sukyar commissioner of Timah predicting that a rise in production from 54,000 tonnes this year to 55,000 tonnes in 2008.

Timah is also planning capital spending of IDR 1.3 trillion (USD 140 million) in 2008, which will be used to both expand its tin reserves and diversify into coal and other businesses.

Sojitz Corp to expand mineral resource investment

JMB reported that Sojitz Corporation's mineral resources unit plans to expand its business through JPY 60 billion of investment through fiscal 2008 ending March 2009.

As per report the unit plans iron ore development in Australia and coal interests purchase in Australia and Indonesia along with expansion for alumina business in Australia.

The unit also expands rare metal business and tries to acquire interest for base metals.

Through the investment, the unit targets more than JPY 15 billion of recurring profit even when resources price experiences major drop.

Xstrata Coal launches cash offer for Resource Pacific

Xstrata Coal Pty Limited announced its intention to make an all cash offer to acquire all of the issued and outstanding shares in Resource Pacific Holdings Limited for AUD 2.85 per share, valuing Resource Pacific’s issued share capital at approximately AUD 960 million. The Offer is unconditional.

The highlights of the offer are
1. Premium of 85% to the 30 day volume weighted average price1 of Resource Pacific shares up to and including 25 September 2007, the day prior to the announcement of New Hope’s takeover offer
2. Co-operation agreement with Marubeni Corporation, Resource Pacific’s largest shareholder
3. Xstrata Coal currently has a relevant interest of 15.56% in Resource Pacific shares
4. Allows Resource Pacific shareholders to realise an attractive cash value for their shares at a significant premium to New Hope’s all-share offer
5. Offer is unconditional
6. Prompt payment terms offered
7. Xstrata Coal will stand in the market to acquire shares at the Offer Price
8. Consolidates Xstrata Coal’s position in the Hunter Valley

Mr Peter Coates CEO of Xstrata Coal said that “This is a highly attractive offer for Resource Pacific shareholders, providing the immediate opportunity to realize a cash premium for their investment in a single mine operation.”

Xstrata Coal also announced that it has entered into a cooperation agreement with Marubeni Corporation, Resource Pacific’s largest shareholder. As a result, Xstrata Coal now has a relevant interest in Marubeni Corporation’s 10.28% shareholding in Resource Pacific. Together with its existing interest of 5.28% acquired by equity swap arrangements and on-market purchases, Xstrata Coal has a total relevant interest of 15.56% in Resource Pacific shares.

Japan's ferromoly imports from Chile increases due to FTA

According to data from Japanese customs, Japan's imports of ferromolybdenum from Chile almost doubled year on year in the January to October 2007 period, after the launch of a free trade pact between the two countries on September 3rd 2007.

The data showed that Japan imported 970 tonnes of ferromoly from Chile during the period, up from 580 tonnes a year ago. It added that in October alone, Japan imported 140 tonnes from Chile, which accounted for more than half of the country's total ferromoly imports of 266 tonnes.

During the January to October 2007 period, Chile's share accounted for 38% of Japan's ferromoly imports, second after China holding a larger 45% share.

Japanese traders, however, said Chile is certain to emerge as the top ferromoly exporter to Japan in 2008 as several steelmakers have signed annual contracts with a Chilean producer late this year. Steelmakers were attracted by the removal of 3% export tariff charged on Chilean origin ferromoly, as a result of the free trade pact.

Sidenor considers placement of Corinth Pipeworks shares

According to sources close to the matter, Greek metals company Sidenor is considering a placement of shares in its unit Corinth Pipeworks to institutional or strategic investors to lower its debt levels.

According to the same sources, at the end of the nine month period Sidenor, a member of the Viohalco group, had EUR 533.9 million in medium and long term debt and EUR 202.5 million in short term debt.

AK Steel announces January 2008 surcharges for SS and electrical steels

AK Steel has announced that it has advised its customers that a USD 230 per ton surcharge will be added to invoices for electrical steel products shipped in January 2008.

AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the November 2007 purchase cost used to determine the January 2008 surcharges.

AK Steel produces flat rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.

Chilean Santa Fe plans new 2.5 million tonne per year mine

According to documents presented to Chile’s regional environment authorities, Chile's Minera Santa Fe plans to develop an open pit mine at its Bellavista property.

Based on preliminary reports and exploration drilling, Santa Fe said that the deposit had sufficient reserves to support production of 2.5 million tonne per year for at least 25 years, adding that it hoped to begin operations in March next year.

But Santa Fe said the Bellavista mine would not increase the company's overall shipments but allow more flexible operation of its existing Cerro Iman and Japonesa mines. The document also said that "The combined volume of concentrate sent to port from Cerro Iman, Japonesa and Bellavista will not exceed 2.5 million tonne per year.”

Santa Fe said that ore from Bellavista, located near the city of Copiapo, would be exported from the port of Caldera.

Santa Fe is owned by Chilean businessman Mr Leonardo Farkas.

Siemens bags major order from ThyssenKrupp CSA Brazil

Thomson Financial reported that Siemens AG has won an order worth about EUR 700 million from ThyssenKrupp AG's Brazilian unit CSA Companhia Siderurgica to take complete responsibility for electrical and mechanical maintenance of all machinery and equipment involved in the steel production process.

ThyssenKrupp said that the contract will run for 15 years.

POSCO chooses Cisco TelePresence for business communication

Cisco announced that South Korea's POSCO has selected Cisco TelePresence, the breakthrough technology for virtual in person communications, to improve collaboration and streamline its communication processes.

The first deployment includes three fully operational Cisco TelePresence System 3000 rooms connecting POSCO's Seoul office with the company's branches in Pohang and Gwang Yang. These systems will be used primarily for regular executive meetings to improve collaboration and increase decision making efficiency. By communicating with each other across a virtual table in a conference room environment, the company hopes to reduce the costs and environmental impact of business travel while improving business productivity.

The Cisco TelePresence System 3000 consists of a three panel, 65 inch plasma screen system complete with a specially designed table that seats six participants on one side or a virtual table for twelve. It supports life size images, using ultra high definition video and spatial audio. The Cisco TelePresence System 3000 also includes codecs, cameras, a lighting array, microphones, and speakers, all of which have been specially tuned to optimize the experience.

Terramin hedges zinc and lead output from new Australian mine

Metals Insider reported that Australian Terramin has completed a program of hedging linked to the financing facility for its new Angas zinc lead mine in South Australia.

The report added that a series of forward contracts covering 50% of production over the first 15 months of operation through October 2009 have generated an average realized price of AUD 2,736 per tonne (USD 2,392.50) for 13,200 tonnes of payable zinc and AUD 3,296 per tonne (USD 2,883.60) for 5,312 tonnes of payable lead.

The mine remains within budget and on schedule for commissioning in June 2008.

Nyrstar over allotment option not exercised

Specialty materials group Zinifex announced that the underwriters have not exercised the over allotment option in respect of 13,043,478 shares in Nyrstar, representing 13.04% of the Nyrstar’s share capital.

The number of Nyrstar shares issued is 100,000,000. As a result of the non exercise of the over allotment option, the final size of the Offer remains unchanged from that previously advised at 86,956,522 Nyrstar shares sold at EUR 20 per share, representing gross proceeds of EUR 1,739,130,440 for Zinifex and Umicore SA/NV, the selling shareholders.

As a result Zinifex and Umicore will retain stakes of respectively 7.79% and 5.25% in Nyrstar. These shares will be held under a 360 day lock up from the commencement of conditional trading on October 29th 2007, subject to customary exceptions.

BHPB to defend assessment by Australian Taxation Office

The Australian Taxation Office has issued assessments and is in dispute with BHP Billiton Limited and its subsidiary company, BHP Pty Ltd in respect of the 2000 to 2006 income years. BHP Billiton maintains that the Group is entitled to the tax relief claimed.

BHP release said that “It has taken legal advice and remains confident of its position. It intends to vigorously defend the assessment. The outcome of the dispute is unlikely to be known for some time. In the meantime BHP Billiton believes that the matter is adequately provided for in the accounts.”

The dispute is in respect of capital allowances claimed by the BHP Billiton group of companies in relation to Australia’s Boodarie Iron which ceased operations in August 2005. The dispute involves primary tax of USD 336 million and interest and penalties of USD 307 million.

BHP Billiton previously announced in June 2005 that the Australian Taxation Office had issued assessments against BHP Billiton Finance Limited relating to the cost of funding the Boodarie HBI plant. That matter is currently before the Federal Court of Australia.

Xstrata Copper and Bechtel sign strategic alliance

Xstrata Copper and engineering, construction and project management company Bechtel have joined forces in a strategic alliance, which will facilitate the development of Xstrata Copper's pipeline of copper projects.

The agreement covers the provision by Bechtel of engineering, procurement, construction and construction management services in relation to a series of potential copper mines, concentrators and related mineral processing facilities. Under this alliance, Bechtel will also contract personnel to Xstrata Copper to assist the company in the development of certain projects.

The strategic alliance also involves the innovative concept of designing a replicable copper concentrator and other facilities that could be applied to Xstrata Copper's individual projects. This will enable the early ordering of long lead time items and reduce the engineering time and costs on individual projects. It will also provide construction efficiencies. Future work on Antapaccay and Las Bambas in Peru and El Pachón in Argentina will be undertaken under this alliance and additional projects will be added as appropriate.

Mr Charlie Sartain CEO of Xstrata Copper said that “We are very excited about working with Bechtel in this innovative approach to project development which will optimize Xstrata’s copper growth, in a cost effective and efficient manner. We have selected Bechtel to be our long term partner based on their leadership in the copper industry as well as their track record of developing high tonnage copper projects, safely, in a sustainable fashion, on time and on budget anywhere in the world.”

Mr Andrew Greig president of Bechtel Mining & Metals said that "We look forward to a long term, successful relationship. Working with a world class company like Xstrata to develop a replicable copper concentrator design for their portfolio of projects has the potential to fundamentally change the way projects are delivered in the copper industry. We are very pleased to be Xstrata's strategic partner, not just for the challenge of delivering multiple projects globally, but because we share values with Xstrata relating to safety, sustainability, and ethics.”

Precious Shipping to invest USD 474 million for 15 new vessels

Thailand’s largest shipping firm Precious Shipping has announced that it is planning to spend USD 474 million on 15 new vessels to replace its ageing fleet. It said that 25 of its vessels were more than 20 years of age and needed to be replaced over the next 5 to 7 years.

Mr Khalid Hashim MD of Precious Shipping said that about 80% of the purchase would be funded through bank loans and the rest through cash flow. He added that "The first ship will be delivered in 2010 and the rest will be made successively to 2013."

Precious operates 44 small to medium sized ships, with a combined capacity of 1.13 million DWT and an average age of about 19 years. The fleet carries mainly commodities and building materials.

HADEED sales in January to September up by 13% YoY

Saudi Iron & Steel Company has posted total sales of long and flat products at 3.3 million tonnes during January to September 2007 period up by 13.2% YoY as against 2.9 million tonnes in January to September 2006 period.

The sales to the domestic market accounted for 89% of the total sales or 72% long products and 28% flat products.

It may be noted that the total sales of flats increased during the comparative period in 2007 by 26% over the level of 2006. Most of the sales concentrated on the hot rolled products of which the production amounted to 619131 tonnes during January to September 2007 period up by 58% YoY as against 391510 tonnes in January to September 2007 period.

Compared to the increasing sales to the domestic market during the past period of 2007, the volume of exports declined and constituted during the past period of 2007 less than 20% due to the growing demand in the domestic market, for the long or flat products.

HADEED has also increased its production at 3.4 million tonnes during January to September 2007 period up by 19% YoY as against 2.9 million tonnes in January to September 2006 period. It expects its production by the end of 2007 to reach 4.5 million tonnes, which constitutes an increase of 21% over the level of 2006.

Turkey's billet prices continue to rise on strong demand in Asia

It is reported that currently Turkey’s domestic price of ST37 billet is prevailing at around USD 550 to USD 570 per tonne and the lowest export price is FOB USD 550 per tonne.

However, if rebar price continuous to increase, steel billets price increase will be followed. Although the price is not competitive in Middle East area, the buyers are expected to accept the new price because demand is good.

It is also driven by increases by CIS mills, which are raising their steel billet price to FOB USD 530 to USD 535 per tonne. As per reports, a transaction for billets from CIS into Middle east has been setteled at USD 620 per tonne on CFR basis. Far eastern steel billet market continuous to be strong and Russian steel billet import price has reached CFR USD 610 per ton in Vietnam.

Sharq Sohar Steel to start melt shop in January 2008

It is reported that Oman’s rebar manufacturer Sharq Sohar Steel Rolling Mills is planning to produce its own stock steel of 300,000 tonnes per year in January 2008.

Its new facilities for steel production will include a 360, 000 tonnes electrical steel furnace, a ladle furnace and a 3 stream continuous casting machine.

Sharq Sohar Steel Rolling Mills is the leading producer of high tensile reinforcement bars in Oman. It rolls imported steel billets and produces about 290,000 tonnes of rebars per year. It also produces about 18000 to 24000 tonnes of rebars with epoxy coating.

MEA to have 20 million tonne pallet capacity by 2010

Iron ore pellets are acquiring a large significance in the metallurgical sector of the Middle East. As per reports, projects with their total capacity about 20 million tonnes per year will be realized in the Middle East until 2010.

Brazilian mining company CVRD plans to construct a mill in Oman producing 9 million tonnes of pellets per year and is plans to start in the first half of 2010.

Bahraini company GHC is also planning to build its second mill producing 6 million tonnes of pellets per year towards July of 2009. GHC also realizes the project of creating the similar production of 6 million tonnes per year in the UAE.

Scrap import removed from computerized clearing system in Pakistan

Dawn reported that Pakistan’s Federal Board of Revenue has decided to stop clearance of all categories of scrap through computerized system of Customs Administrative Reforms and put it back for physical examination at Model Customs Collectorates.

Mr Munir Qureshi chief collector of customs under the FBR directives issued orders for deleting scrap from clearance at CARe and putting it back to physical examination at Model Customs Collectorate Karachi and Port Qasim. As a result of the change in the clearance method of all sorts of scrap, the importers will now have to file Goods Declaration instead of Customs Registration Number.

Mr Qureshi further directed that all shipping agents will have to declare scrap consignments in the Bill of Lading and Carrier Declarations. The scrap consignments should be declared as non Pakistan Automation Computerized Customs System so that they could be processed under ‘One Customs’ or Model Customs Collectorate.

Officials of customs authorities said that rampant corruption and mis declaration at CARe had been causing revenue loss worth millions of rupees because many items were being cleared under the garb of scrap. They added that “You name it, from steel sheet, complete engines, plant and machinery stuffed under the scrap in containers which were being cleared through auto system of CARe.”

As per report, large scale wrong declarations were being done by commercial importers with the connivance of customs staff and huge quantities of not only dutiable goods but also banned items were cleared under the garb of scrap. Since containers were not examined under the CARe system, it becomes easy for customs staff to make under hand deals to clear such consignments.

The objective of CARe was to clear goods from port areas in a minimum possible time to cut cost and make trade competitive but unfortunately the entire computer system was either being tampered through different methods, such re routing and filing of entries at a time of shift over in the system.

Sonatrach signs agreement with Saipem for LPG pipeline

Arabian Business reported that Algerian hydrocarbons company Sonatrach and Italian Saipem Snam Progetti have signed an agreement to construct the world's longest pipeline to transport liquefied petroleum gas of more than 500 kilometer in Algeria.

Mr Nerio Capanna head of Italian pipeline transport and Mr Mohamed Meziane CEO of Sonatrach has signed the agreement in presence of Mr Chakib Khelil mines minister of Algeria.

The LZ2 pipeline, will connect the gas terminal at Hassi R'mel to the Arzew petrochemical complex, and is estimated to cost around USD 500 million.

OPEC likely to agree for no change in output- Delegates

OPEC delegates said that it is expected to keep production unchanged and discuss meeting again in January 2008 ahead of its regular March gathering.

A delegate said that "My understanding is that everyone is agreed there will be no change."

Gazprombank interested in Saudi gas projects in Red Sea

Russian energy giant Gazprom’s subsidiary Gazprombank has announced that it would definitely be interested in any Saudi initiative for exploring gas in the Red Sea.

Mr Anatoly Miliukov executive VP and head of asset management at Gazprombank said that 2 Russian investment funds in the energy and real estate sectors collectively worth USD 6 billion are targeting Saudi investors. He added that “When Saudi Arabia floats a tender for gas exploration project concerning the Red Sea, we would definitely be participating in the project. We are also studying what we can do in collaboration with Saudi Aramco.”

Mr Miliukov said that the Russia Energy Fund and the Russia Real Estate Fund were valued at USD 5 billion and USD 1 billion respectively. He added that “We worked hard to launch these 2 funds which were facilitated by the good political relations between Russia and Saudi Arabia.”

Gazprombank would explore the possibility of establishing its presence in the Kingdom where, besides the oil and gas sector, there were tremendous opportunities in the light of the economic cities and other mega projects that had been launched or are in the pipeline.

DW to build South Beach property project in Singapore

Khaleej Times reported that Dubai World has signed an agreement partnered with Singaporean property conglomerate City Developments Limited and New York based developer Elad Group to build a AED 4.28 billion mixed use property project called ‘South Beach’ in downtown Singapore.

The project, which has elevated Singapore's position in global property development, is a residential, commercial, retail and hotel complex on Beach Road. It will be launched in March 2008 and completed by 2012.

Dubai World, in a statement, said that "The equal partnership between these 3 unique conglomerates is made more dynamic by the extensive experience and contacts each has in the hotel, real estate and retail segments. The consortium will jointly decide on the best combination and most appropriate brand and concept that would complement the overall concept and enhance the value of the project."

Mr Sultan Ahmed bin Sulayem chairman of Dubai World said that the partnership will play a crucial role in the further development of Singapore, especially in the real estate and hospitality sectors. He added that "This project would clearly reflect our strategy of making the places we operate in better environments for living and working."

Mr Leng Beng executive chairman of City Developments Limited said that the dynamic city of Singapore has attracted global investors such as Dubai World and Elad Group.

Mr Miki Naftali CEO of Elad said that "Our partnership is based on complementary strengths, rooted in an understanding of the region and driven by a passion to achieve excellence in design, a defining standard for green architecture and unparalleled luxury and service."

Qatar withdraws from OMX bidding process

It is reported that Qatar Holding has withdrawn its request for approval of a potential bid for OMX and opens the door to completion of a USD 5 billion takeover of the Nordic bourse operator by Borse Dubai and NASDAQ. Analysts said that the move by the Qatar firm doused hopes for a higher bid, leaving Borse Dubai and NASDAQ to reel in OMX.

Qatar Holding, in a statement, said that it is withdrawing its application to Sweden's financial watchdog to be considered a suitable owner of OMX as it was no longer needed.

It added that "Qatar Holding regards its investment in OMX as a very valuable asset and is actively considering a range of options to maximize returns from this holding. The said options, however, no longer currently require an application to the Swedish Financial Supervisory Authority which would have permitted Qatar Holding to increase its shareholding in OMX."

Qatar Holding, which owns 10% of OMX, had been seen as a potential rival suitor for OMX to state run Borse Dubai which, teaming up with US exchange NASDAQ, has offered 265 crowns per share for the bourse operator.

It is noted that Borse Dubai and NASDAQ, rival bidders at first for OMX, agreed earlier in 2007 on a deal where Borse Dubai sweetened its takeover offer for OMX and pledged to sell the Nordic and Baltic bourse operator to NASDAQ in exchange for a 20% stake in the combined group. But the Qatar Investment Authority urged OMX shareholders to take no action and amassed a stake in the Sweden based firm through its investment vehicle Qatar Holding, emerging as a potential rival to Borse Dubai and NASDAQ.

Crescent gas project will kick off from March 2008

Mehr News Agency quoted Mr Mahmud Zirakchianzadeh MD of Iranian Offshore Oil Corporation as saying that Crescent project, Iran’s gas export to the United Arab Emirates, will kick off from March 20th 2008. The Crescent deal will be Iran’s first experience of exporting gas to a Persian Gulf state. The gas purchase deal of Crescent, also an Emirate firm, with Iran has been held up on a price row for 2 years.

Mr Zirakchianzadeh said that “The platform helps both contracting sides of the Crescent deal, prompting Iran and the UAE to put aside their disagreements and to focus more on the project. Following the installation of Salman field’s platform, the Crescent deal will take effect in the first half of next Iranian year.”

He added that the field’s total output will be 540 million cubic feet per day. To this end, the field is to produce 500 million cubic feet of gas and prevent the burning of 40 million cubic feet of associated gases.

Petroenergy Information Network said that Crescent Petroleum had expected first deliveries of gas in mid 2006. The initial agreement was for the supply of 600 million cubic feet per day. Crescent’s affiliate Dana Gas was to process and transport the gas to utilities and industrial users in the UAE.

ADNOC receives 2nd vessel from Grandweld

Arabian Business reported that Abu Dhabi National Oil Company has received the 2nd of four twin screw Azimuth Stern Drive type, mooring work and oil recovery boats from Dubai based shipbuilding and repair specialist Grandweld as a part of USD 5.1 million worth deal signed last year.

The vessels, each measuring 20 meter and capable of reaching speeds of up to 11.2 knots are specifically designed for ADNOC to be operated by Abu Dhabi Petroleum Ports Operating Company at the Single Buoy Mooring terminals of Abu Dhabi Petroleum Ports.

It took Grandweld less than 14 months to complete construction and hand over of the first 2 boats. The remaining 2 are scheduled for delivery to ADNOC before the end of 2007.

Mr Jamal Abki GM of Grandweld said that "Our delivery of the 4 Lloyds Register of Shipping classified vessels is a major milestone for Grandweld as it combines our ability to provide timely and efficient marine solutions of international quality standards and design to world class, highly regarded oil and gas companies such as ADNOC. Grandweld had the opportunity to build state of the art highly maneuverable tugs with advanced features like oil recovery equipment and auto pilot in both ahead and astern operation. This will be a stepping stone to build more sophisticated vessels for the requirements world wide."

Mr Abki said that "Grandweld's growing reputation as a leading shipbuilding and repair specialist attracts many international, regional and local ship owners to our Al Jadaf yard which makes our 2008 planned move to Dubai Maritime City a necessity in keeping with the company's rapid expansion."

Algeria plans pipeline connection to southwest region

Mr Chakib Khelil energy minister of Algeria said that it is considering building a gas pipeline to connect the southwest of the country to its existing trunk pipeline network.

He added that tight gas prospects in the southwest such as the Timimoun basin have become increasingly attractive to international companies as opportunities to develop more easily accessible gas in the country decline.

Mr Khelil said that "There are a number of companies doing exploration work in this area including Repsol, Enel, Total and Gaz de France. We are looking at building a new pipeline from these fields."

It is noted that a consortium of France's Total and Spain's Cepsa is planning to submit development proposals for its Timimoun acreage to Algiers by the end of 2007. Gaz de France, Norway's Statoil, Repsol of Spain and the UK's Shell are also exploring in the area.

Daewoo wins major shipbuilding contract from Qatar Gas

MEED reported that South Korean group Daewoo Engineering & Construction Company has won a USD 610.6 million contract from Qatar Gas Transport Company to construct a new shipbuilding facility in Qatar.

Oil pipeline between Iraq and Jordan under discussion

It is reported that Iraq and Jordan is discussing the possibility of laying a pipeline to transport Iraqi oil from Al Haditha city towards Al Aqaba port.

The measure will substitute land transportation and ensure fast and regular Iraqi oil flow towards Jordan.

BHPB bid for Rio – Baosteel report denied but may hike asking price

Toward recent report by the 21st Century Business Herald saying that Baosteel led Chinese steel maker lobby is likely to bid for Rio Tinto, none of these parties involved including Baosteel, Chine Iron & Steel Association, BHP Billiton and Rio Tinto had given any comments and according to a report by Orient Morning Post, it was probably because of misunderstanding of Mr Xu's word the chairman of Baosteel.

As per report in Orient Morning Post Mr Qi Xiangdong deputy secretary general of CISA met Mr Xu Lejiang in Beijing and said that “What Baosteel is considering is how to confront BHP's bid proposal to Rio Tinto, rather than launching its own bid. It is undoubted that the steel enterprises are studying countermeasures but no confirmed info says Baosteel is to bid.”

Meanwhile, Mr Tan Yixin GM of the minerals import & export of Shougang International Trade & Engineering also denied their intention to participate in the takeover. He said “Not now, nor in future."

However, Mr Xu's statement may be a signal to raise the takeover threshold with the purpose of preventing it from happening.

Chinese rebar prices on upswing

It is reported that domestic steel prices have extended strong gains last week as 61 rebar producers lift up EXW prices, 15 of them have raise over CNY 100 per tonne. In particular, five steelmakers in North China including Shougang and Tanggang have pushed up the rebar price as much as CNY 450 per tonne within last seven days.

Moreover, 48 steel producers have also increased the EXW for rebar products. Of this, Shougang has reported a jump of CNY 500 per tonne. Domestic construction steel price has risen rapidly across major markets last week. North China market has seen an increase of over CNY 250 per tonne, while billet for making rebar has climbed to CNY 4150 per tonne to CNY 4220 per tonne in East China.

Escalating input cost and expectations for further inflation are believed to boost up the steel prices. Iron ore concentrate price has more than doubled the price of the year start to CNY 1500 per tonne in Tangshan by the end of November; coke price increased by CNY 500 per tonne from the year start; billet price rises 51% or CNY 1390 per tonne from earlier this year to CNY 4150 per tonne.

In addition, steel mills are eager to lift up EXW prices on rising anticipation about further inflation. Both buyers and traders are more willing to accept higher price at the moment.

Chinese coke export surge despite hike in export taxes

It is reported China has witnessed surge in coke export volumes and prices despite as the added export cost brought by export tariff hike is passed on to foreign buyers thus questioning the effectiveness of new restrictive export policies.

Statistics from customs show that China exported 11.731 million tonnes of coke during the first three quarters valued at USD2.15 billion up by 9.6% and 48% respectively from last year. Export price averaged USD183.2 per tonne up by 35% over that in 2006.

China raised export tariff on coke to 15% from June 1st 2007, after a 5% export tariff imposition since last November 1st 2007. Due to the new policy, export volume in June and July shrank notably yet revived during August and September owing to surging export price.

Export volume recorded 1.303 million and 977,000 respectively in June and July down by 19.1% and 25% respectively MoM export price stayed below USD200 per tonne. But the price then escalated to USD 223.9 per tonne in August and USD226.7 per tonne in September. In the meanwhile monthly export volume swelled by 27.3% and 18% respectively MoM to 1.244 million tonnes and 1.468 million tonnes.

Insiders point out there are now 1400 coke producers in China with capacity of 300 million tonnes but medium and small producers account for over 80%. Large amounts of producers yet small production scale go against environment protection and the enhancement of resource utilization rate.

China should tighten macro control on coke industry, implement industry admittance, optimize industrial organization and distribution and curb coke capacity, in a bid to maintain normal order in coke export market.

US SS seamless tube makers concerned over imports from China

As part of an on going undertaking to deal with increasing volumes of low priced seamless stainless steel tubing from China, the US producers, which comprise the Seamless Stainless Tube Trade Action Committee, expressed their growing concern with the rapidly expanding Chinese presence in the US market.

Mr David A Hartquist legal counsel of Seamless Stainless Tube Trade said that "As the US Census Bureau's most recently released data underscore, China's exports of seamless stainless steel tubing to the United States are surging. China is now the largest foreign supplier overall of this tubing to the United States, at prices that are notably depressed. Even in categories in which it presently is not the largest supplier, such as high nickel seamless tubing, it can be expected that China will soon overtake the current largest foreign supplier, Germany."

Mr Hartquist added that "There is evidence that the Chinese are dumping seamless stainless tubing into the US, in violation of our law and WTO rules. In addition to estimated dumping margins of 125 % to 223% ad valorem, the Chinese government provides a range of subsidies, including undervaluation of their currency, the CNY at 40% or more. Even as US producers have been investing their own funds in added capacity, equipment, and technology, Chinese producers have been receiving large amounts of money from the Chinese government for these purposes. Simply put, this is unfair competition."

Through September 2007, imports of seamless stainless steel tubing from China into US for the year doubled from the corresponding period of the first nine months of 2006 to 15,131 tons at USD 6,265 per ton up by 31% of total imports of 48,879 tons from all foreign sources having an average unit value of USD 9,115 per ton. Imports of high nickel seamless tubing from China during the same period were 245 tons at USD 1,917 per ton as compared with 944 tons imported at USD 7,976 per ton from Germany.

Baosteel invests CNY 200 million in Xinyu Steel

It is reported that Jiangxi Province based Xinyu Iron & Steel Co Ltd's listed unit claimed in a statement that Baosteel has subscribed for 20 million shares for CNY 200 million in total taking 1.44% of its stake. Xinyu Iron & Steel Co Ltd's had issued 200 million A shares to eight companies at CNY 10 per share to raise CNY 1.95 billion.

On November 2nd 2007, Xinyu Iron & Steel Co Ltd acquired 100 million shares in its subsidiary Xinyu by CNY 6.71 billion worth of steel assets and made its overall listing. Its business thus expanded to steels as well from previous metal articles alone like steel wire, strand, aluminum clad steel wire, electrical wire and cable, and the company is then renamed to Xinyu Iron & Steel Co.

It's reported Jiangxi's government and the state owned asset supervision and administration commission of the province had expected Baosteel to regroup Xinyu and make it bigger. There are no detailed plans revealed yet.

In 2006, Xinyu Steel, the largest steel mill in Jiangxi province, witnessed 5.09 million tonnes of steel production. It is a ferroalloy production base, with 25 key enterprises, 14 wholly owned subsidiaries, 5 economic entities, and 15 shareholding enterprises.

Tenova starts up two passivation sections at Angang in China

It is reported that Angang Iron & Steel, has issued an Acceptance Certificate attesting the quality of the two passivation sections supplied by Tenova Strip Processing for the new twin galvanizing lines HGL 4 & 5.

The passivation sections coat the galvanized steel produced by the two lines with a special anti corrosion paint and consist of two vertical Chemical Coaters, the most sophisticated of its kind produced to date, and two hot air recirculation furnace, designed to avoid contact between the fumes and the product.

The passivation systems for Angang new galvanizing lines, which can reach a production speed up to 180 meters per minute are used for steel strips with maximum thickness 2.5 mm and maximum width 1550 mm.

Tenova, former Techint Technologies, designs and supplies advanced technologies, products and services for the metal and mining industries. Tenova operates close to its customers through a network of 30 companies based in 16 different countries.

CR steel prices jump up in China

It is reported that cold rolled coil prices in China have been catching up in China with an average increase of CNY 200 per tonne for cold rolled steel price in Shanghai this week.

On Shanghai market, price for 1.0 CR sheet is being offered at CNY 5520 per tonne; that for 1.0mm CR coil at CNY 5280 per tonne which compares with CNY 5330 per tonne and CNY 5100 per tonne recently.

Prices for 1.0mm CR sheet by Anshan Steel have jumped up to the level of CNY 5500 per tonne CNY 5600 per tonne in Shanghai which we have already forecast in last week's reports. Now we believe that prices for 1.0 CR sheet would even approach CNY 5800 per tonne to CNY 5900 per tonne if it could stay at CNY 5600 per tonne and up.

At the same time, steel makers also said that offers would be raised soon probably by USD 30 per tonne to USD 50 per tonne. Thus the updated level is likely to reach USD 670 per tonne USD 690 per tonne FOB for 1.0 CRC in the near future.

Angang’s No 3 converter starts up formally

It is reported that No 3, 150 tonnes converter, in Anyang Steel started up at 9:58 on November 30th formally.

Anyang Steel has been closing outdated capacity since 2003 and it has built three modernized 150 tonnes converters. Like former two 150 tonnes converters, the third 150 tonnes converter is also controlled by computers and automotive control system. It can produce over 60 varieties of high grade steel products, including pipe line steel, HT steel and bridge steel etc.

With this the real capacity of Anyang Steel reached 10 million tonnes for the first time. It is the first steel enterprise with a capacity over 10 million tonnes in province Henan.

Baosteel and Sinosteel ink raw materials deal

It is reported that China's Sinosteel Group and Baosteel Group have signed a strategic cooperation agreement for supply of iron ore and other raw materials even as the country's state owned steel giants face the prospect of greater consolidation among international mining firms.

As per report China's largest steel trading firm and its largest steel maker would step up cooperation in the supply of raw materials including iron ore and chromium, as well as ferrochrome and ferronickel.

Mr Xu Lejiang chairman of Baosteel said during the signing ceremony "As we enter the 21st century, Chinese steel mills face greater pressure as international steel giants speed their expansions. We can turn from a large steel producer into a strong steel producer only by improving our technology and core competitiveness. He said that we hope this strategic agreement will improve our two firms' ability to specialize, reduce costs, improve efficiency in raw materials and increase global competitiveness."

Xinhua cited Mr Huang Tianwen president of Sinosteel as saying during the signing ceremony that the two would work together to develop resources domestically and overseas, exchange engineering technology, and bring together the strengths of a steel maker and steel industry services provider.

Hunan Nonferrous buys into Australian metals project

Metals Insider reported that China’s Hunan Nonferrous Metals Holdings Group, which controls 10 operating companies in the province of Hunan including the Zhuzhou zinc lead producer, has signed a letter of intent with Australian junior Abra Mining to participate in the latter’s Abra lead copper zinc project in Western Australia.

Hunan Nonferrous will take a stake in Abra, fund a feasibility study on the project and provide financing for the project through to start up if a go ahead decision is made.

Benxi discovers large iron ore deposits

It is reported that a large iron ore deposit with estimated reserves of over one billion tonnes was discovered at Pingshan District Benxi City in Liaoning Province.

The discovered mineral this time has a layer thickness of 157.37 meters with an average Fe content of 34.68%.

The province is China's heavy industry base and Anben district is China's important iron ore production base, where most super large and large scale iron ore deposits in China are concentrated there.

Shanxi coal revenue will break CNY 300 billion mark in 2010

It is reported that Shanxi Provincial People's Government issued a forecast that the sales revenue of coal industry in Shanxi by 2010 will reach CNY 300 billion and that for non coal industry CNY 100 billion.

As per the plan, the construction of three coal bases of Jinbei, Jinzhong and Jindong will be expedited.

Daily spot price briefing of iron ore imports in China

It is reported that spot price of imported iron ore shows mixed trend with price firms up in South China but weakens in North China.

Fe 63.5% Indian ore fine goes at CNY 1500 per tonne and Fe 58% and 62.5% Indian ore fine is offered at CNY 1050 per tonne and CNY 1300 per tonne respectively.

Import price for Fe 58% to 59% and Fe 63.5% Indian ore fine goes at USD 145 per tonne and USD 183 per tonne CIF respectively.

Steel prices rise will effect machinery industry in China

According to Mr ZhouJianPing secretary of industry management of National Machinery Industry Bureau the rise of steel prices will have an impact on the Machinery Industry in China.

He said that the machinery industry is a big consumer of steel accounting for nearly 80% in some machinery products. According to Statistics, the steel consumption of machinery industry accounted for 10% in the total steel output in china.

The rise of steel prices has a great impact on engineering machinery, electrical appliances, automobiles, heavy machinery, petrochemical, machine tools and basic parts, agricultural machinery, internal combustion engine and so on.

Yanzhou Coal to buy mining rights from parent

Xinhua reported that Shanghai listed coal producer Yanzhou Coal Mining Co plans to acquire from its parent Yanzhou Group the mining rights of the Zhaolou Coal Mine in Shandong province for CNY 747.3 million through its controlled subsidiary Heze Nenghua Company.

Zhaolou Coal Mine is designed to have an annual production capacity of 3 million tonnes and is scheduled to come into operation by the second half year of 2008. Its major products will be coking coal, gas coal and low sulfur coal, which are all undersupplied in China.

Yanzhou Group holds a 52.86% stake in Yanzhou Coal Mining and the latter holds 95.67% stake in Heze Nenghua Company.

ArcelorMittal Kriviy Rih increases roll output in 11 months up by 4% YoY

Interfax reported that Ukraine's largest steel maker ArcelorMittal Kriviy Rih has increased roll production tentatively 3.9%YoY to 6.491 million tonnes in January to November 2007 period.

In November 2007, ArcelorMittal Kriviy Rih produced 566,000 tonnes of roll, 644,000 tonnes of steel, 591,000 tonnes of pig iron and 928,000 tonnes of sinter.

In January to November 2007 ArcelorMittal Kriviy Rih coke producing subsidiary, increased production 12.8% to 2.766 million tonnes while its ore mining division's output of iron ore concentrate grew 9.2% to 7.723 million tonnes, with crude iron ore production up 3.6% to 1.806 million tonnes.

ArcelorMittal Kriviy Rih is Ukraine's largest steel producer with a market share of 20%. It has the annual capacity to produce over 6 million tonnes of roll, about 7 million tonnes of steel and over 7.8 million tonnes of pig iron.

Palmary raises offer for ConsMin

It is reported that 14 month Consolidated Minerals takeover saga appearing to be nearing an end after Ukrainian group Palmary Enterprises raised its offer to USD 1.3 billion forcing Pallinghurst Resources to quit the race.

Palmary, led by the Ukrainian billionaire Mr Gennadiy Bogolyubov, raised its offer for the miner to USD 5 a share. Palmary declared its USD 5 offer the last and final offer price unless another bidder lodged a competing proposal to acquire a substantial interest in ConsMin. That appears unlikely given Palmary already controls 15% of ConsMin.

Mr Gilbertson's group, Pallinghurst Resources, agreed to sell its 4% stake in ConsMin to Palmary since it could not justify a higher bid on value grounds. Although it is sure to have run up steep advisory fees in the past 14 months, Pallinghurst will pocket at least USD 50 million by selling its shares and convertible notes, along with an USD 11 million break fee from ConsMin.

ConsMin has proven an attractive takeover target because it produces about 10% of the world's high grade manganese, which is trading at record prices due to demand from steelmakers. It also owns nickel and chromite mines in Western Australia and has significant stakes in the copper-zinc producer Jabiru Metals and the iron ore explorer BC Iron.

Mr Bogolyubov and his business partner, Igor Kolomoisky partly own the Nikopol ferroalloys plant in Ukraine through Privat and ConsMin’s Woodie Woodie manganese operations is a key supplier to the Nikopol ferroalloys plant in Ukraine.

If Palmary's bid proves successful, there is sure to be market speculation over possible asset sales. Potential bidders for the nickel assets include fellow Kambalda miners Mincor, Sally Malay and Independence Group. Oxiana and Perilya could be among those interested in the stake in Jabiru.

Russia and Ukraine settle for 38% increase in gas price

It is reported that Ukraine has agreed to increase payments for Russian gas by 38% in 2008. Gazprom in a statement said that the deal had been reached at a meeting of Mr Alexei Miller CEO of Gazprom with Mr Yuri Boiko energy minister of Ukraine and the price of gas would rise to USD 179.5 per 1,000 cubic meters from USD 130 per 1,000 cubic meters in 2007.

It is also agreed that the gas transit fees would be set at USD 1.7 per 1,000 cubic meters both for Russia and Ukraine as against USD 1.6 per 1,000 cubic meters.

Russian gas export monopoly Gazprom, which supplies a quarter of Europe’s gas, said that this deal is likely to remove the threat of supply disruptions to Europe.

Under another deal signed last week, Gazprom would pay USD 130 per 1,000 cubic meters of Turkmen gas in the first half of 2008, up from USD 100 in 2007 and USD 150 in the second half of 2008. Turkmenistan pumps gas via a Russian controlled pipeline network, but has been considering diversifying export routes. Russia's gas monopoly Gazprom currently buys 45 billion cubic meters of Turkmen gas a year for USD 100 per 1,000 cubic meters and sells a mixture of Russian and Turkmen gas to Ukraine at USD 130.

CIS billet export prices firmed up

It is reported that CIS steelworks are expecting to raise billet prices due to the strong demand in Middle East market.

At present, the prices of 3SP and 5SP billets are quoted at USD 530 per tonne to USD 535 per tonne FOB Black Sea for January and February deliveries and at USD 600 per tonne to USD 610 per tonne CFR for Taiwan market.

In addition, Far Eastern steel billet market continuous to be strong. Russia steel billet import price has reached CFR USD 610 per tonne in Vietnam.

MMK expects raw material prices to go up in 2008

Interfax cited Mr Vladimir Shmakov VP for economics and finance of MMK as saying that Magnitogorsk Iron & Steel Works is discussing raw material contracts for 2008.

Mr Shmakov said that MMK is expecting prices to go up 15% to 30% for iron ore, 30% to 50% for coal and 10% for scrap metal.

He said agreements with suppliers had not yet been finalized.

Mechel may increase loan for Yakutia coal fields purchase

Thomson Financial reported that Mechel OAO may increase the size of the loan it is raising to finance the acquisition of Yakutugol OJSHC, Elgaugol OAO and other assets to USD 2.3 billion from USD 2 billion.

Syndication of the loan will be completed before December 15th 2007.

Mechel announced last month that it had arranged a USD 2 billion refinancing package to finance its October acquisition of the coal mines.

Ukraine seeks help from overseas in Zasyadko investigations

According to Ukraine Government's press service reports, during the preliminary investigation of the reasons of explosion in Zasyadko Mine, gas dynamic processes were found, which the Ukrainian scientists and experts of coal sphere had never faced before.

In this connection the Government of Ukraine made a request to Mr Viktor Zubkov Head of Government of the Russian Federation, Mr Donald Tusk Chairman of the Council of Ministers of the Republic of Poland, Ms Angela Merkel Federal Chancellor of Germany, Ms Condoleezza Rice United States Secretary of State to provide possible consultative and practicable aid in investigating the reasons of the accident, liquidating its consequences and preventing situations of a similar nature in the mentioned and other mines in the future.

Outotec opens offices at Almaty in Kazakhstan

It is reported that Outotec has established subsidiaries in India and in Kazakhstan in order to better serve the growing markets in the countries.

Mr Tapani Järvinen president & CEO of Outotec said that "Kazakhstan has vast mineral resources and is currently building up the mining and metals industry. We have had a representative office there for several years. To confirm our presence, we have now established a legal company in Almaty to provide sales services and technical support to our customers in Kazakhstan and the surrounding countries."

Tulachermet to install nuclear emission spectrometer

FIS reported that Tulachermet purchased the nuclear emission spectrometer ARL 3460 of Switzerland's Thermo Electron ARL so that its central laboratory is adequately equipped to analyze cast iron, steel, copper and others. The device is to be put into industrial operation by the year end.

The spectrometer costs over RUB 6 million and has high resolution stable optics demonstrating maximum sensitivity and minimum detection limits.

Other purchases include the gas analyzer CS-600 to determine the content of carbon and sulfur in cast iron, COBA cooling system, KFK-3-01 photometer and a shaft furnace. The next step will be the purchase of portable chromatographer to analyze blast furnace and natural gas.

US and Russia ink Uranium supply deal

Mr Sergei Novikov spokesman for Federal Atomic Energy Agency said the United States reached an agreement with Russia that will ensure uranium supplies beyond 2013.

Russia’s state owned uranium industry under the plan will ship supplies directly to utilities, who now receive material that has been recovered from dismantled Soviet warheads.