Survey at POSCO site faces protests on day one

Statesman News Service reported that members of United Action Committee, formed by some of villagers of POSCO area, have decided to request for suspension of the socio economic survey work undertaken by the district administration recently and have informed the Kujang tehsildar Mr Debasis Singh to suspend survey work for the proposed plant immediately.

As per report, some of the United Action Committee members have been irked over certain remarks made by an officer of the company degrading the status of land in the area. It is reported that POSCO India’s ED in a local TV channel expressed unwillingness to talk to United Action Committee saying that their demands are too tall to meet and describing the land to be acquired by the company as not fertile.

Though POSCO issued a clarification United Action Committee members were unhappy and felt they needed more time and a clear picture to convince the villagers. Till such time they want the survey to be suspended

United Action Committee members also complained of violation of terms and conditions by the revenue officials during survey work. As per a member of United Action Committee “We had proposed to the district administration to include 3 members of United Action Committee in each survey team to expedite the survey work. Though the district administration has formed 12 teams, not a single UAC member has been included in any of the teams. Similarly, UAC had restricted that no land demarcation should be taken up during survey but the survey team has allegedly gone for land demarcation at Noliashai without the consultation of the committee.”

It may be noted here that the socio economic survey of the area had taken off after a two year long delay with the consent of the UAC members who had submitted a charter of demands to the district administration.

Surana to acquire 49% stake in coal JV in Indonesia

TNN reported that Chennai based Surana Industries will form a 49:51 JV with Malaysia based Agate Group for mining coal in Indonesia. As per report, Surana will pick up 49% stake in the JV for INR 40 crores. The JV, PT Agate Resources. The infusion of fresh equity would augment the capital base.

Mr Dinesh Surana MD of Surana Industries said that “The average cost of coal would be around INR 2,800 per tonne against the current market price of INR 4,000 and the company was able to save INR 60 crore through the joint venture, as it would consume o.5 million tonnes of coal.”

Mr Surana added that “The coal will land at Chennai from an Indonesian port and will then be transported to Raichur in Karnataka, where Surana’s INR 473 crore integrated steel complex is coming up. The first coal consignment is expected to reach the plant in six months time. A railway siding is under construction at Raichur, for which the company has procured land.”

Surana’s integrated complex would have a sponge iron plant to manufacture 0.128 million tonnes, a steel melting shop to produce 0.225 million tonnes, a rolling mill to produce 0.2 million tonnes of steel and a captive power plant to generate 35 MW of power. Surana Industries proposes to boost total production capacity to 1 million tonne from its current capacity of 0.2 million tonnes by 2010.

Agate Group is engaged in duty free retail, commodity trading, IT, pharmaceuticals and mining related activities.

Vedanta to invest USD 12.5 billion in metals, mining and power

PTI reported that Vedanta Resources plans to invest over INR 50,000 crore in the next few years in metals, mining and power generation. The report cited a Vedanta source as saying that “The group has grown multi fold, over 650%, in the last 4 years and has planned investments of over INR 50,000 crore with a clear focus on metals, mining and power generation. Seeing the market growth, the spend is expected to double in the coming years.”

Vedanta Resource is building production capacity of 1 million tonnes each in aluminum, copper, zinc and lead, over 20 million tonnes of iron ore and commercial power generation capacity close to 10,000 MW in the coming years.

The London Stock Exchange listed Vedanta’s companies in India include Hindustan Zinc Limited, BALCO, Sterlite Industries (India), Konkola Copper Mines, Sesa Goa, Malco, Sterlite Technologies, Vedanta Aluminium and Sterlite Energy.

6 power firms to invest INR 29,800 crore in Chhattisgarh

It is reported that 6 private power firms have signed separate deals with the Chhattisgarh government to invest INR 29,800 crore for installing coal fired power plants with a total capacity of 6,500 MW in the state's northern region. The companies include:

Cost in INR Crore
Capacity in MW

Ford India plans INR 2,000 crore investment in Chennai facility

It is reported that Ford India Limited, a wholly owned subsidiary of Ford Motor Corporation, is planning an additional INR 2,000 crore investment into its facility at Maraimalai Nagar near Chennai.

The fresh investment will be primarily used to set up a small car facility, expand the existing production base and establish a fully integrated and flexible engine making plant. The investment plan will be implemented in phases over the next 3 years. The first phase of the plan has already commenced and will include the addition of a diesel engine plant at Maraimalai Nagar with an initial annual capacity of 50,000 units. The first engine is expected to roll off the assembly line by April 2008.

The proposed state of the art engine facility, to come up adjacent to the vehicle plant, will produce both diesel and petrol versions. It will have an annual capacity of 250,000 units and is expected to go on stream within 2010.

Essar invites suppliers for steel and power plant equipments

It is reported that Essar Group’s procurement arm has invited expression of interest for supply of capital goods, plants and equipment for its upcoming steel and power projects.

Essar Project Limited, in an advertisement has sought interest from experienced suppliers, including global majors, and the initial bids are to be submitted within a fortnight. The vendors, as per the EoI notice, should have supplied in the last three years similar equipment which should be operational as on date.

As per the terms of the EoI, the technological package for steel will include iron plant equipment, electric arc furnace, COREX plant equipment and rolling mills. Under the technological packages for power and refinery projects, EoIs have been sought for boilers, gas turbines, steam generators, fuel handling systems, coal handling equipment and systems.

Essar Project Limited is a part of the Essar Global Limited, which is a diversified industrial conglomerate operating in manufacturing and services sectors like steel, energy, power, communication, shipping and logistics and construction. EGL has operations in India, South East Asia, the Middle East, Africa, Canada and the USA.

Jharkhand power workers to go on strike from January 15

Ranchi Express reported that, upset by the procrastinations of the state electricity board bosses with regard to their long pending demands, the Jharkhand Rajya Bijli Kamgar Union had decided to strike work from January 15th 2008. The decision to strike work was taken at a meeting, chaired by Mr Ramkrishna Singh general secretary of the union.

Expressing dismay at the indifference displayed by the SEB authorities and the Government, Mr Singh said that power workers would paralyze workers would paralyze the functioning of all JESB offices if their demands were not conceded.

Union leaders said that the strike would force SEB bosses to concede to their demands. They added that some 32 of them has been kept in abeyance for far too long.

Kerala in talks for a possible JV between BHEL and KEL

It is reported that Kerala government and Bharat Heavy Electricals Limited are in talks for a JV between BHEL and Kerala Electrical & Allied Engineering Company Limited.

The proposal involves the Kasargod unit of KEL, which is into the manufacture of brushless alternators used in the power cars of the Railways and the Bhopal unit of BHEL. The Kasargod unit of KEL took up the manufacture of brushless alternators, a new technology, in technical collaboration with Leroysomer of France in 1990. Later, the engineers of KEL redesigned the product to suit the requirement of power cars of the Railways and it is now used in fully air conditioned trains such as Rajdhani Express and Shatabdi Express.

The Kasargod unit of KEL has a spare area of 15,000 square meters, which is proposed to be utilized for the installation of additional machinery for the manufacture of alternators under the joint venture arrangement. While KEL will provide technology and training, BHEL will provide the required capital for the new venture, which is roughly estimated around INR 50 to INR 60 crore.

The Kerala government has also proposed a JV modeled on the recently concluded tie up between Transformers and Electricals Kerala Limited and the National Thermal Power Corporation, in which the state government has majority stake in the JV.

Exim Bank to finance hydropower project in Vietnam

BL reported that Exim Bank of India has entered into a line of credit agreement for USD 45 million with the government of Vietnam to finance construction of 200 MW Nam Chien hydropower project at Son La Province in Vietnam.

The hydropower project will be constructed by Bharat Heavy Electricals Limited.

This is the second line of credit extended by Exim Bank to Vietnam, the first being USD 27 million, utilized to finance export contracts such as supply of equipment for cold rolling steel plant, hydropower plants, tea processing machinery and textile machinery from India to Vietnam.

Development in real estate reflects growth in the Indian economy – Mr Kamal Nath

Mr Kamal Nath union minister of commerce and industry has recently stated that the developments in the real estate sector symbolize the changing face of India and it is a reflection of the growth in the Indian economy brought about by high rates of GDP and also by India’s integration with the global economy.

Mr Nath said that “With the economy on an upswing, the emphasis and requirement today is on creating international standard infrastructure and housing facility to sustain the growth rate projected in the 11th Five Year Plan. The real estate development sector has the capacity to pay for itself without straining the limited resources of the state government.”

He stated that “We have already opened construction development sector for FDI and the policy permits wholly owned subsidiary in this sector in India by a foreign company.” He added that of course, there are conditions regarding minimum area for development and minimum capitalization to be brought in by the foreign investor. A number of global players have entered the Indian market and many more have shown interest. Growth and investment have also created opportunities for investment in real estate sector.

Mr Nath further added that “While the role of the government is expected to be primarily as a facilitator to the development process, the private sector participation is aimed at bringing technical and managerial expertise in delivering good quality mass housing projects. It is a good sign that many state governments are joining hands with private entrepreneurs in resolving the acute housing problem in urban areas. The private sector and Government has to work in tandem towards a common goal. It is equally important to address the institutional and regulatory aspects as well as strengthen and expand the capacity of financing institutions for further growth of the sector.”

M&M confirms pull out from Chennai JV with Renault and Nissan

Mahindra & Mahindra have confirmed that it has decided to pull out of its Oragadam JV with Renault SA and Nissan Motor Co. A release said that “Mahindra & Mahindra realigns manufacturing plans and defers investment in the Chennai automotive manufacturing plant, while Renault & Nissan maintain their plans for the Greenfield plant in Chennai.”

Under its new plan
1. M&M will use the additional capacity at its new plant in Chakan in Maharashtra and other existing facilities to meet its medium term requirements and hence shall not participate in the joint plant at Oragadam.
2. – M&M shall continue its Mahindra Research Valley at Chengelpet and MRV test track and tractor plant plans in Oragadam.

3. M&M shall simultaneously evaluate a new automotive plant at Oragadam to further enhance its capacity. The Chakan plant owned by the Company will manufacture Mahindra as well as Mahindra international truck products

It is noted that M&M, Renault and Nissan formed a JV in February 2007, to produce 400,000 cars per annum cars at a new plant in Oragadam near Chennai, with an investment of around INR 4,000 crore.

Hyderabad metro project to finalize bids in March

BL reported that the documentation work for technology, safety standards and financials for the Hyderabad metro rail project in Andhra Pradesh has been finalized.

The Hyderabad Metro Rail have found that the technical bids of all the pre qualified consortia to be in order and have declared all of them eligible to participate in the financial bids.

The financial bid is expected to be finalized by March 2008 and the developers will be chosen by April 2008. Construction work is likely to commence by May 2008 and is scheduled for completion within 4 years.

J&K can produce 20,000 MW hydel power

Mr Babu Singh power minister of Jammu & Kashmir recently said that J&K government has identified a potential to 20,000 MW of hydro power in the state.

He informed that out of the total 20,000 MW, potential for 16,400 MW has been identified in the following places
1. 3,560 MW in Jhelum
2. 10,360 MW in Chenab
3. 2,060 MW in Indus
4. 500 MW in Ravi

J&K currently has an installed capacity of 1,869 MW, of which 309 MW is under state programs and 1,560 MW under central schemes.

He informed that the gap between installed capacity and actual generation is mostly because of high fluctuations in the discharge of the sources.

TATA and Reliance among bidders Amritsar airport bids

It is reported that national and international entities including TATA Group, Reliance Energy, Larsen & Toubro, Zurich Airport, Vienna Airport, Gammon Infrastructure, Emaar MGF, K Raheja Group, DS Constructions, Maytas Infra, Nagarjuna Construction, General Electric, DLF, Unitech, GMR Group and the GVK Group are among the initial bidders for the commercial operation, maintenance and site development at the international airport at Amritsar in Punjab.

The Airport Authority of India has recently developed a new terminal at Amritsar airport at a cost of INR 112 crore and the terminal is expected to be operational in March 2008. Amritsar airport is also setting up a new cargo handing facility to cater to the demands from exporters in Punjab, Haryana and Himachal Pradesh.

Sterlite bags INR 140 crore power contract from RRVPNL

It is reported that Sterlite Technologies bagged a contract worth INR 140 crore from Rajasthan Rajya Vidyut Prasaran Nigam for manufacture and supply of ACSR moose power transmission conductors.

The scope of work includes manufacturer and supplier for over 5600 kilometer of ACSR moose conductors that will be installed in 530 kilometer route length of 400 kV single circuit and 180 kilometer route length of double circuit transmission lines in Rajasthan.

The deliveries are scheduled from February 2008 through November 2008.

Jharkhand HC seeks answers on power crisis

Ranchi Express reported that hearing public interest litigations on the wretched condition of national highways and the poor power supply in the state, the Jharkhand High Court has directed the state government to furnish details of steps it had taken to resolve the ongoing severe power crisis.

It asked the counsel appearing for the central government about what decision had been taken for supplying 267 MW of electricity from the central pool to Jharkhand.

British Gas India may tie up with OIL for oil blocks in Assam

It is reported that British Gas’s Indian subsidiary BG India may forge a tie up with Oil India Limited to bid for some blocks in Assam in the 7th round of auction under New Exploration Licensing Policy.

Mr Kapil Garg MD of BG India said that "OIL has good presence in Assam. Out of the 57 blocks are on offer, 2 or 3 of them are in that state. We may tie up with OIL to bid for these blocks. We do have the technology for carrying out activities in deep-water blocks. We need partners which can add value." He added that it is open to bid for both shallow and deep water blocks, but it would evaluate different issues before finally submitting bids.

It is noted that Indian government expects USD 7 to USD 8 billion investment from the exploration work alone in the 57 blocks on offer under NELP VII.

Canada continues AD on plates from China

The Canadian International Trade Tribunal today issued orders following the expiry review of its order made on January 10th 2003, concerning hot rolled carbon steel plate originating in or exported from the People’s Republic of China, the Republic of South Africa and the Russian Federation.

The Tribunal found that the dumping of hot rolled steel plate from China is likely to result in injury or retardation. The Canada Border Services Agency will therefore continue to impose anti dumping duties on these products.

The Tribunal also found that the dumping of hot rolled steel plate from South Africa and Russia is unlikely to result in injury or retardation. The CBSA will therefore no longer impose anti dumping duties on these products.

The Tribunal is an independent quasi judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

ArcelorMittal to acquire Venezuela Unicon

ArcelorMittal announced that it has entered a definitive agreement to acquire Unicon, the leading manufacturer of welded steel pipes in Venezuela. The transaction is subject to customary closing conditions. Once the transaction closes, ArcelorMittal will disclose further relevant information.

Unicon supplies the Oil & Gas and Industrial & Construction sectors both domestically and overseas. Total shipments for the year ending March 2007 were 552,000 tonnes. Unicon employs 2,445 people across six pipe making facilities in Venezuela.

The purchase forms part of ArcelorMittal's strategy to strengthen its welded steel pipes business in South America.

Mr Aditya Mittal CFO and member of the ArcelorMittal Group management board said that "Unicon is an excellent company, commanding a leading position in Venezuela. This highly complementary acquisition will help us expand our position in the fast growing Americas market."

Hyundai Steel to increase SS output in 2008

South Korean Hyundai Steel announced plans to boost 2008 stainless steel production capacity.

In 2007, the company’s annual production capacity of cold rolled stainless steel was around 140,000 tonnes and they plan to lift the volume up to 160,000 tonnes in 2008.

Japanese automakers likely to accept steel price hike

JMB reported that top officials of Japanese automakers indicated they could accept certain price hike for steel products to reflect economic principle and supply balance.

Japanese major steel makers are preparing to increase automotive steel price for fiscal 2008 starting April depending on the raw materials cost for iron ore, coking coal and other materials.

Some steel industry sources indicate the price hike could be much more than JPY 10,000 per tonne after around total JPY 20,000 of sheet hike since fiscal 2003.

ArcelorMittal SA says steel price increase is conservative

It is reported that ArcelorMittal South Africa, which has hiked its prices by between 3% and 10% from February 1st 2008, has not passed on the total rises in its input costs to local consumers.

Mr Helgaard Meaker sales and marketing group manager of ArcelorMittal SA said that "In fact, we have not passed them cost increases on at all.” He added that the increases were conservative, when compared with what was occurring in international markets, where price increases had been dramatic.

French mills to raise steel prices in Q1 due to cost pressures

YIEH reported that several French steel mills have decided to increase the heavy plate price for the first quarter in 2008 due to the increased raw material costs.

French Steel Federation has released a satisfactory comment towards the domestic market performance of flat carbon steel, although the stock level is still high. However, in order to offset the rise of material cost, mills has planned to gain back the shrunk profit from buyers.

The demand for small section steel in French market returns to normal while customers’ inventories is also going down, compared to it in October. After a period of fluctuation, the prices are bouncing, triggered by the increasing energy costs and anticipated price increases of scrap.

On the other hand, orders placed for the stainless steel long products are active, despite those for wire rods are decreasing. However, the consumption of wire products is expected to rebound in 2008.

According to International Iron and Steel Institute data, the production of crude steel in French totaled 17.93 million tonnes in the first eleven months of 2007, which slipped by 2.2% YoY than it in 2006.

New steel plant opens in Dong Nai

BlueScope Buildings Viet Nam announced the opening of a steel fabrication facility in Bien Hoa Industrial Zone in the southern province of Dong Nai in order to meet the growing demand for pre engineered steel.

The plant, which will have an initial capacity of approximately 12,000 tonnes per year, brings the company’s total number of factories in Viet Nam to three.

The Australian invested firm said the new plant employs an integration of AutoCAD drawings and High Definition Plasma steel cutting systems to ensure top quality.

Xstrata welcomes appointment of facilitator for Hunter Valley coal chains

Mr Peter Freyberg CEO of Xstrata Coal has welcomed the appointment of Mr Nick Greiner as an independent facilitator to assist the Hunter Valley coal chain.

Mr Freyberg congratulated Mr Joe Tripodi minister for Ports on the initiative, designed to address the long running issue of coal chain capacity in the Hunter. Mr Freyberg said that "Mr Greiner's extensive commercial experience will greatly assist in finding a long term and sustainable solution for the coal industry to meet its coal export growth and efficiency aspirations for the Hunter Valley coal chain and Newcastle port.”

Mr Freyberg added that "The development and general acceptance of a coordinated coal chain model is fundamental and urgent. It will take two to three years to implement coordinated capacity plans, inclusive of properly underwritten track and rail expansions, to match current planned mine and port expansions. The development of appropriate access protocols will assure that future new production can be appropriately accommodated.

Mr Freyberg said that "Xstrata Coal looks forward to working with Mr Greiner in his new role to develop coal chain systems which facilitates growth, rather than hinders it, as well as ensuring that the significant ship queuing and associated demurrage costs witnessed over the last few years is not repeated in the future."

Japanese iron and steel exports drop in November 07

According to a report from the Japan Iron and Steel Federation, Japan's iron and steel exports declined by 1% YoY to 2.93 million metric tonnes in November 2007.

The report added that in November 2007, exports to South Korea increased by 24.1% YoY and those to Thailand climbed by 15.6% YoY. Meanwhile, exports to China were declined by 7.5% and those to the United States slipped 18.3%. Exports to Taiwan dropped 3.9%.

At the same time, total imports of iron and steel to Japan declined 9.6% YoY Imports from South Korea were up by 34.3% YoY and those from China declined 38.6%. Imports from Taiwan dropped 12.8% YoY.

Northwest Pipe bags USD 30 million casings contract

Northwest Pipe Company announced that it has been awarded an approximately USD 30 million contract by Major Tool & Machine Inc of Indianapolis, Indiana to manufacture tubing for steel casings that will be used for centrifuge machines in USEC's American Centrifuge Plant at Piketon in Ohio.

Northwest Pipe will begin manufacturing the tubing in 2008 at its Parkersburg, West Virginia Division. The contract will continue until 2012.

Major Tool & Machine was earlier awarded the contract to supply the completed casings which will be installed in USEC's plant. The American Centrifuge Plant will include 11,500 separate centrifuge machines. As America's only commercial uranium enrichment facility using US centrifuge technology, the American Centrifuge Plant will play an important role in America's energy security. Enrichment is the process by which the concentration of the fissionable uranium isotope, U 235, is increased in order to make fuel for nuclear power plants. USEC plans to begin operations in 2009 and be fully operational by 2012.

Mr Brian W Dunham president & CEO of Northwest Pipe said that "We are excited to be a part of this program. Our commitment to quality, years of experience, customer service and state of the art equipment all played a part in getting this contract. We are also pleased to be working with Major Tool & Machine, a very experienced fabricator for critical components in aerospace, defense and power applications."

North American Galvanizing & Coatings opens new technical center

North American Galvanizing & Coatings Inc announced the grand opening of a Technical Center located at Tulsa in Oklahoma.

The Technical Center will house the company's current Engineering Department which is being reorganized to incorporate an expanded customer Tech Support function and product and process development activities. The Group will continue to support current operations on capital projects, environmental compliance, safety program and become an on site training center and technical library for the company.

Mr Ronald J Evans president & CEO commented that "The Technical Center will allow us to expand our internal operational development and customer support activities. We look forward to offering all our customers expanded technical service and guidance on their product design and performance criteria as they pertain to hot dip galvanizing."

Mr Kevin Halstead director of Engineering said that "In addition to our expanded customer support role, we also look to utilize the facility to expand our internal company support activities. Projects to enhance plant operating efficiencies, reduce energy usage and improve product quality will be our primary focus."

North American Galvanizing is a leading provider of hot dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coating business through a network of plants located in Canton, Ohio; Denver, Hurst (Dallas/Forth Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area.

Thailand confirms Nippon Steel and JFE investment plans

Bloomberg reported that Nippon Steel Corp and JFE Steel Corp. submitted plans to build plants for a combined THB 200 billion (USD 6 billion) in Thailand.

Mr Chodechai Suwanaporn a government spokesman at a press conference said that the Japanese companies plan to build a plant each for about THB 100 billion producing so called high quality steel. But Mr Masato Suzuki said that Nippon Steel hasn't made a decision.

Mr Chodechai in Bangkok after a Cabinet meeting said that “Domestic production of high quality steel will be a key step in enhancing competitiveness in the country's major industries such as automotive and electronics.

Nippon Steel and JFE last year said they were studying building plants in the Southeast Asian nation to meet rising demand from automakers.
Nippon Steel's Suzuki said that “We are studying currently how to meet rising demand for steel in Thailand, but we haven't decided on anything.''

Thai government wants to lure steelmakers to build plants in its southern provinces to cut imports needed for manufacturers of electronics and cars and to bolster a slowing economy. According to data on the Board of Investment's Web site, Thailand, which does not produce high quality steel, imports about 4.5 million tonnes of the products a year, worth THB 150 billion from Japan and South Korea. It added that demand for the steel products may rise to 25 million tonnes a year over the next decade.

Esmark makes senior appointments

Esmark Incorporated announced several executive appointments, effectively immediately, as it aligns management responsibilities with the Company's two business segments Mill Operations and Downstream Operations.

Mr David A Luptak has been named executive VP Mill Operations of the Company. Mr Dave served as executive vice president, General Counsel and Secretary of the Company immediately prior to this appointment. Before joining the Company, Mr Dave worked for 20 years with US Steel holding various positions in the legal department and in operations, including plant manager of U.S. Steel's Edgar Thompson works.

Mr James Ledgard was also promoted to VP & COO of Wheeling Pittsburgh Steel Corporation and will report directly to Mr Dave Luptak.

Mr Glenn Steed and Mr Charles Dinger will both report directly to Jim Ledgard in their new capacities as GM Primary Operations and GM Hot Strip Mill and Finishing Operations respectively.

Mr Thomas A Modrowski was named executive VP Downstream Operations of the Company. He was previously served as president & COO of Wheeling Pittsburgh Steel Corporation. With more than 25 years of diversified steel industry experience prior to joining the Company in December 2006.

Mr V John Goodwin was named an executive VP of the Company and will oversee USW labor relations.

Mr David Pryzbylski has been named a vice president of the company and will report directly to Mr John.

Mr James P Bouchard chairman & CEO said that "This realignment is a natural outgrowth of combining Esmark's operations with those of Wheeling Pittsburgh Corporation last November. We're now one company with two core business competencies; these administrative changes assign the experience and skill set of our management team to the areas where their contributions are optimized."

Venezuela's Guasare renegotiating coal deals

Reuters reported that Venezuelan coal miner Guasare has told buyers that it will renegotiate all deals, but its partners and their buyers are unaffected.

Guasare delivered the news in a Christmas greeting to all its customers December 22nd 2007, adding that all contracts for export sales must be renegotiated.

An industry source said that non Venezuelan partners in the Paso Diablo mine, US based Peabody and British based Anglo American Plc and their customers are not affected.

Northwest Pipe will relocate to Vancouver

According to Mr Erin Flynn economic development director of Portland Development Commission, Northwest Pipe Co's plan to move its corporate headquarters from downtown Portland to Vancouver is a minor disappointment.

Mr Erin Flynn, PDC economic development director, was reacting to news that the manufacturer of large steel pipes would move about 50 employees across the Columbia River in March 2008. The publicly traded company is the ninth largest by stock value in Oregon or southwest Washington.

Mr Flynn said that "Portland is losing Northwest Pipe. However the region is not losing Northwest Pipe, either as a headquarters or as a manufacturer."

Mr Flynn said that company executives told PDC their lease was up and workers' average commute times would be shorter. They did not express frustration with Portland's business climate, Flynn said.

The company, based since 2000 at 200 S.W. Market St., is moving to the Tidewater Cove building at 5701 S.E. Columbia Way in Vancouver, the Columbian newspaper reported Tuesday. The Nasdaq-traded company, founded in the Portland area in 1966, has been at several sites in the metro area.

New distribution centre for auto steel company

It is reported that steel processing company Steel & Alloy Processing has opened a new distribution centre in Darlaston following a new agreement with Honda Trading Europe.

The centre is capable of handling 25 tonne steel coils. It contains three five tonne cranes, two 25 tonne cranes and a 36,000 square feet bay giving the business more space to develop and grow.

Curimbaba sees 2008 bauxite sales at 245,000 tonnes

BNamericas reported that Brazilian mining company Mineração Curimbaba expects sales volume of bauxite products to expand some 14% this year to roughly 245,000 tonnes.

The report quoted Mr Rafael Tadeu Acconcia commercial director of Mineração Curimbaba as saying that Curimbaba supplies bauxite for non metallic applications to the oil and petrochemical industries, among others.

Mr Acconcia said that "We had some problems last year due to the real's appreciation versus the US dollar, which had a negative impact on our business. But we expect to see an improvement of about 14% in 2008 in terms of sales volume versus some 215,000 tonnes of finished products sold last year.” He added that the US dollar depreciated some 17% last year compared to the Brazilian currency and was worth 1.76 reais on Monday.

Mr Acconcia said that demand is positive in the local and international markets, adding the company on average makes 55% of its sales to markets abroad while the balance meets the needs from companies at home. He added that "If this average changes in 2008, it would be by little, perhaps 60% would be directed to markets abroad and 40% would go to the local market.”

Mr Acconcia said that the company's main focus outside Brazil is the US.

BNDES to help fund Alumar refinery expansion

BNamericas reported that Brazil's national development bank BNDES has approved financing worth BRR 650 million (USD 370 million) for the local unit of US based aluminum giant Alcoa.

BNDES in a statement said that funds will target the expansion of the Alumar alumina refinery in northeastern Brazil's Maranhão state capital São Luís to 3.5 million tonne per year from 1.4 million tonne per year with expanded operations due to come on stream in the second quarter of 2009.

It added that the project is expected to require investments of BRR 4.9 billion while the bank's funding represents 13% of the total capital.

The Alumar alumina refinery is a JV between Alcoa holding 54%, Anglo Australian resource giant BHP Billiton holding 36% and remaining Canadian Aluminum Company Alcan holding 10%, and a subsidiary of Anglo Australian miner Rio Tinto.

UAE steel rebar prices up in two months

It is reported that prices of reinforcing steel bars in the UAE have surged to unprecedented levels in the past 2 months on a pick up in international billet prices as compared to USD 600 levels in October 2007.

The report cited a UAE based steel producer as saying that "There is always a strong correlation between billet prices and rebar prices and the former have been rising for the past 5 months. I do not see prices easing for both products at least for the first half of 2008."

Mr Chakib Khelil appointed as new president of OPEC

UAE state news agency WAM reported that Mr Chakib Khelil energy & mines minister of Algeria has took over the presidency of the Organization of the Petroleum Exporting Countries for the year 2008 succeeding Mr Mohammed bin Dhaen Al Hamli energy minister of UAE.

Mr Khelil has committed in recent statements to deepen dialogue with oil consuming nations, with a view to both preserve OPEC members’ revenues and secure energy supply to the world economies.

He also expressed his intention to focus his work on promoting dialogue between oil producing and consuming countries to ensure oil market stability.

MoU inked for 4 new dry ports in Pakistan

Business Recorder reported that Pakistan Railways, Qasim International Container Terminal and Premier Mercantile Services have signed MoU to work jointly on the 4 new dry ports projects being planned in Pakistan.

This is a JV program at the cost of PKR 1729 million out of which Railway share is PKR 494 million and the rest will be invested by Qasim International Container Terminal and Premier Mercantile Services. The parties will sign a 35 year contract to run the project.

Four Dry Ports at Peshawar, Islamabad, Lahore and Karachi are operating on railway system whereas additional three are functioning in private sector at Faisalabad, Sialkot and Multan.

100 acres of land has been acquired for the terminal and Pakistan’s federal government has approved the project and Pakistan Railway has paid PKR 202 million for land.

Pakistan Railway will provide rail infrastructure whereas allied facilities including building, machinery and office equipment will be arranged by the private parties. It will earn additionally PKR 911 million for first year which will increase to PKR 17118 million by the end of 25th year of commercial operation.

This Dry Port will also contribute significantly to the industries being established in Sundar Industrial Estate, which is the biggest industrial estate in the Punjab. It will also cater for the needs of the industry in Sahiwal, Okara, Kasur, Lahore, Sheikhupura and Gujranwala districts.

GE signs letter of intent with QAFCO for equipment supply

Qatar Fertilizer Company has signed a letter of intent with GE Oil & Gas for the supply of gas turbine and compressor technology for an expansion project that will result in one of the world’s largest fertilizer plants. The GE equipment will be used for an expansion of the ammonia and urea plant at the site and for a new cogeneration facility that is part of the overall project.

Under the terms of the LoI, GE will supply 4 Frame 6B gas turbine generators, 5 compressors, 5 steam turbines, heat recovery steam generators and related services. The cogeneration plant will provide 140 MW of power and up to 600 tonnes per hour of steam required on the ammonia and urea plant process.

The gas turbines and compressors for the new project will be manufactured at GE Oil & Gas facilities in Florence in Italy and the steam turbines in Le Creusot in France. The gas turbines are scheduled for delivery to the site in Qatar in the first half of 2009, with the compressors and steam turbines to be shipped in the second half of 2009. The gas turbines will be equipped with dry low NOx technology that will limit DLN emissions to 15 parts per million, and also will be customized to meet QAFCO’s specifications as well as the petrochemical industry requirements.

Mr Mohammad Ayoub operations leader and region GM Middle East for GE Oil & Gas said that “Our long term relationship with QAFCO and the confidence they have in our technology and services were key factors in securing this LoI. GE’s capability to act as a complete solution supplier of gas turbine, compressor, steam turbine generator and services will provide a significant benefit for the customer. QAFCO 5 offers further evidence of GE’s on going commitment to support Qatar’s growing oil and gas industry by providing reliable technology and services for projects throughout the country.”

Mr Ayoub said that “Establishing this service complex underscores GE’s strong commitment to continue increasing technology and service offerings for our customers in Qatar, one of the fastest growing centers for the oil and gas industry worldwide.”

When completed in 2010, QAFCO 5 will increase the company’s total production capacity to 4 million tonnes per year of urea, up from current levels of 2.8 million tonnes per year and to 3.1 million tonnes per year of ammonia up from 2 million tonnes per year.

Iran Pakistan gas agreement to be signed next week - Report

Dawn reported that Pakistan and Iran will sign a gas sales and purchase agreement for their cross border pipeline project next week, following a clearance by the Economic Coordination Committee.

Mr Ahsanullah Khan the caretaker minister for petroleum & natural resources of Pakistan said that the gas price finalized for the project, on the basis of the Japan Crude Cocktail, would be 40% less than the current furnace oil prices and cut the oil import bill by about USD 1 billion. He added that 3 options for pipeline diameter were currently under consideration namely 36 inches, 42 inches and 56 inches, and would depend on India’s decision to join the project or otherwise.

Mr Ahsanullah said that Pakistan would welcome Indian participation in the project at any stage, but clarified that New Delhi had not given a clear response so far. He added that the implementation agreement for the project would be an intergovernmental sort of agreement and would be signed soon by the heads of states.

Mr Ahsanullah said that after gas disconnection, these power plants had to be shut down, aggravating the power crisis. The overall gap between supply and demand stood around 25% or about 1 billion cubic feet, against a production of 3.90 billion cubic feet. The domestic gas consumption had increased by 60% this year. He added that the overall loss to the oil and gas sector due to 3 days of violence was to the tune of PKR 1 billion.

Power crisis will ease within week in Pakistan - PEPCO

Business Recorder quoted Mr Saleem Arif advisor of Pakistan Electric Power Company as saying that power crisis would ease within week, as emergency steps are being taken to secure 200MW to 250 MW electricity by ensuring supply of oil to some of the thermal units.

Mr Arif requested the business community to help government at this crucial stage to deal the crisis. He constituted 2 committees in consultation with Mr Mohammad Ali Mian president of LCCI to manage ongoing power crisis. One of the committees will deal with load management, while the other will collaborate with PEPCO in policy making.

Mr Arif said that the release of less water from Mangla also curtailed the availability of electricity from 3600 MW to 1200 MW. He said the government has allowed a new 430 MW thermal power station in Nandipur that would be put up in collaboration with a Chinese firm for which letter of interest has already been issued. He urged the business community to adopt power conservation measures to ensure availability of required power to their industries.

Mr Ali Mian said that trade and industry is aware of the acute shortage of electricity. He added that “It also understands the need for load shedding. What the industry actually desires is that the industry be assured uninterrupted power supply for sufficient time to ensure completion of most production processes."

Belgium Aluminum to invest in a new factory in Abu Dhabi

Belgium Aluminum & Glass Industries has announced an investment of AED 80 million towards the construction of a new factory in the Industrial City of Abu Dhabi to leverage the demand for aluminum building systems amidst the UAE's booming real estate sector, which is currently witnessing the construction of USD 700 billion worth of property developments.

Belgium Aluminum & Glass recently held a groundbreaking ceremony to mark the commencement of construction for the state of the art manufacturing facility within the Industrial City of Abu Dhabi in Mussafah. Upon its completion by May 2008, the factory will be equipped with the latest production technology and a production capacity of 360,000 square meters per year, which includes 2 production lines dedicated for unitized curtain walls.

It also announced that it has partnered with German based Alcoa Group for the delivery of its award winning Kawneer architectural system within the factory. In addition, the company's strategic agreement with Alcoa will augment the company's aggressive expansion strategy, which is currently being supported by its long-standing partnerships with Belgium based Sapa RC Systems and French company Technal.

Mr JR Gangaramani CMD of Al Fara'a Construction Group said that "The unprecedented boom in the value of construction projects in the Gulf, which currently tops USD 2.4 trillion, has been the result of the surge in interest from international investors to penetrate lucrative local markets such as the UAE. Accounting for more than USD 700 billion of the total regional real estate revenues, the UAE has emerged as one among the top property destinations in the region, which is being driven by the strong growth and investment in infrastructure development. We have recognized the tremendous opportunities that Abu Dhabi has to offer as an ideal location for our new manufacturing facility, where we are aiming to leverage the USD 10.17 billion worth of mixed use projects currently under construction in the emirate."

Belgium Aluminum & Glass Industries is a part of the Al Fara'a Construction Group, a leading fully integrated construction services company. The strategically located new facility together with BAG's 2 existing manufacturing plants is a part of the company's planned future expansion, which is directed towards meeting the growing market demand in the coming years.

Dubai Metro to serve within emirates only

Dubai Roads & Transport Authority said that the ambitious public transport plans for Dubai are not designed to alleviate congestion in any other emirate.

Mr Abdul Majid Al Khaja CEO of the Rail Agency at RTA said that Dubai’s extensive public transport infrastructure is being implemented to serve residents and visitors of Dubai only and not as a means of easing congestion in other emirates.

He added that “It would be wrong to say that the Dubai Metro will ease traffic congestion in neighboring emirates unless they build a similar metro system and connect to the Dubai Metro. I should emphasize that Dubai Metro and tram is purely to serve Dubai city. We want to make journeys within Dubai pleasant with less time."

Mr Al Khaja said that there were no plans as yet to extend the services beyond Dubai's borders, despite the fact that thousands of workers commute from neighboring emirate Sharjah to Dubai and in particular to Jebel Ali Free Zone every day for work. He added that “There have been no discussions so far with authorities in the neighboring emirates on the issue of linking the Dubai Metro. But we can receive their metro lines anytime to connect them with our system if they approach us."

Mr Al Khaja said that Dubai was planning up to 8 metro lines that will link major destinations across the emirate. So far the RTA has announced plans for 4 lines namely red, green, purple and blue. He added that “We are roughly looking at 8 metro lines but I cannot give the exact number because it will be decided with the growing needs of the city and new projects.”

OEOC inks exploration deal in Iran

Mehr News Agency reported that Oil Exploration Operation Company has signed the EUR 7.7 million contract on exploring Northern Khorassan region in Iran.

Mr Mahmud Mohaddes exploration manager of National Iranian Oil Company said that it is equipping the workshop for exploration operations. He added that Raz, Sarakhs, Darregaz, and Khangiran are the blocks where seismographic operations start soon.

Iran plans IRR 2710 trillion budget for the next fiscal

Mr Ahmadinejad President of Iranian has submitted to the Majlis the 600 page IRR 2,710 trillion budget bill for the next fiscal year starting from March 21st 2008 to March 20th 2009. He termed the bill delicate and comprehensive.

According to Mr Ahmadinejad, the development budget shows 30% growth in the budget for next fiscal year. He also said that the budget bill features lower share of the petrodollars in document.

Mr Ahmadinejad said that the budget bill is oriented towards goals of the 5 year plan. The non oil revenues have gained more shares in the bill. He added that total budget of government out of the general budget is IRR 715,000 billion and the state companies too will have a budget of IRR 2,030,000 billion.

Qatar to produce 18 million tonnes of petrochemicals by 2012

The Peninsula reported that Qatar will be producing some 18 million tonnes of petrochemicals by the year 2012.

Mr Abdulla bin Hamad Al Attiyah deputy premier and minister of industry & energy of Qatar said that "2012 is just a road map. But we are also discussing beyond 2012, because in our business we should never stop. Now we have embarked on aromatics production and are studying other products for beyond 2012."

He added that there are a lot projects under study either in Qatar or also outside the country through Qatar Petroleum International. Mr Al Attiyah said that "QPI is very actively discussing now with our partners such as Total and others to undertake also downstream projects outside Qatar. We are conducting discussions in Algeria for petrochemicals, in China, India and in many other parts of the world. We have very ambitious plans to invest outside Qatar and that is why QPI has been set up to invest in upstream and downstream different projects."

Dr Mohammed Yousef Al Mulla GM of Qatar Petrochemical Company said that it is planning to open 3 new offices overseas in Jordan, Yemen and Thailand by the end of the year bringing the total number of offices worldwide to 19. He added that the new ethylene expansion project has boosted its annual ethylene output by 200,000 tonnes which could be increased by an additional 30,000 tonnes. The ethane cracker to be built in Ras Laffan Industrial City with a capacity of 1.3 million tonnes per annum of ethylene will be one of the world's largest. He added that "This cracker is going to feed plants in Mesaieed, including Qatofin and Q Chem through a 125 kilometer long pipeline. All this will be completed by February or March 2009."

Iran’s imports in 9 months down by 5.8% YoY

Iranian Students News Agency quoted Mr Mohammadreza Naderi customs affairs head of the Iran customs administration as saying that Iran has imported USD 33,027,100,000 worth of products in the March to November 2007 period down by 5.82% YoY as compared to March to November 2006 period.

Mr Naderi said that in the period, Iran’s exports stood at 23,868,650 tonnes of products valued at USD 11,453,380,000, indicating 35.13% and 14.55% rise in terms of weight and value respectively. He added that Iran exported 8,649,300 tonnes of gas condensates valued at USD 5,108 billion up by 48.77%.

Iran has totally exported USD 16,561,380,000 worth of gas condensates, petrochemical, and other products in March to November 2007 period up by 23% YoY.

Brazilian iron ore export to China crosses 100 million tonnes in 2007

According to statistics from Industry and Foreign Trade of Brazil, the country exported a total of 105 million tonnes of iron ore to China in 2007, first time breaking 100 million tonnes per annum and up by 29%YoY.

The unhindered iron ore export volume stood at 96.05 million tonnes up by 29.6%YoY with a value of USD 3.119 billion up by 45.6% in the same comparison. The export volume and value of this ore type to China took up by 43.8% of the nation's total export volume and value.

The shipment of sintered iron ore was 8.97 million tonnes up by 24.8%YoY valued at USD 591 million a 21.2%YoY increase or taking up 17% of the total value of this kind.

This occupies 39% of Brazil's total ore export volume, with a value of USD 3.71 billion up by 41%YoY and taking up 35% of Brazil's total ore export value. The ratios of export volume and value to China both posted about 6 percentage points higher than in year 2006.

Jinchuan buys Fox Resources

It is reported that China's biggest nickel refiner, Jinchuan Group, deepened its investment in Australian mining recently agreeing to pay USD 15.5 million for 11% of Fox Resources Ltd as it chases access to raw materials.

China's government has encouraged its state owned metals and mining firms to consider foreign takeovers as a way of securing raw materials for the world's fastest growing big economy.

Mr Keith Goode Eagle Mining Research analyst said "Chinese firms are looking very closely at Australian mining companies. He said this year appears to be heading for a year of M&A activity, especially among the junior Australian metal producers, with possible premiums of 35% to 40% being paid."

Jinchuan paid AUD 0.95 a share for the Fox stake a 14% premium to the company's last closing price, sending its shares up 10% on speculation of a full takeover.

Shanghai rebar price to stay at high level in January

It is reported that rebar and wire rod prices, which have rebounded since the start of 2008 despite low demand and thin trading, are likely to remain firm in the first quarter.

Mr Liang taigeng GM of Shanghai Hualei Enterprises believes that rebar prices will stay at high level in Shanghai and there would probably be more fluctuations. He said "Construction steel prices have witnessed increases since the first trading day of 2008 in Shanghai. There is not a lot of trading activities since most end udders are employing wait and see attitude. But there is no oversupply at moment and there seems to be little likelihood of great decrease in market price."

Mr Liang indicated that construction steel prices often edge up in January and pointed out three major factors as below for supporting his viewpoint.

1. Robust demand from construction sites. People would always stock up before Chinese Spring Festival for holiday use. It happened that 25 new city construction projects have started working in Shanghai since late December or early January. They include 114 subway stations, the third round of environmental protections, and Chengshan vivarium. Besides, there is also good demand from the sites of 2010 world expo.

2. Low inventory and high cost. The stock in Shanghai is still lower than common level. Some sizes have been sold out and it is clear that there is not a lot of cargo on the market. At the same time, high production cost gives no great room for drop and some producers have to raise ex works again. Under such circumstances, traders would not choose to cut price substantially if they wish to make profit.

3. Financing status improved. There is no need for traders to lower sales prices to collect capital at moment. The tightening on credit has eased temporarily and they prefer to hold cargoes for a longer period since most are upbeat on future performance.

Mr Liang considers that construction steel market in Shanghai features high price level, general upward trend and small fluctuations in January.

Taiyuan’s new precision SS to begin in 2009

It is reported that China’s biggest stainless steelmaker, Taiyuan Iron & Steel, has begun the construction of new cold rolled precision stainless strip project with annual capacity 20,000 tonnes in Shanxi province.

It costs Taiyuan CNY 1.02 billion to build 2 precision strip mills with two pickling lines, a skin pass mill, a tension leveler and 2 slitting and shearing line. The expected cold rolled strip ranges from 0.03mm to 0.3mm thickness and 10mm to 610mm width.

Taiyuan Iron & Steel said in a statement that such move will help Taiyuan to broaden its products range and lower China’s imports on those products. The new mills are scheduled to commission in October 2009.

Baosteel supplies shell plate for nuclear reactor

It is reported that at the end of 2007, Baosteel and Shandong nuclear power equipment manufacturing company signed plate procurement contract after Baosteel’s independently developed nuclear special plate.

These plates will be used by the Chinese first third generation nuclear power plant Zhejiang Sanmen.

As per reports, Baosteel become the only one nuclear power safety shell plate supplier in China. In the next two years, Baosteel will provide all the necessary plate for the third-generation nuclear power plant project.

China imported the third generation of nuclear power plant technology from United States. The third generation of nuclear power plant technology adopts AP1000 technology, it is one of the most advanced nuclear power technology in the world. Compared with the previous two generations of technology, it has greater capacity, higher security and a better economy. According to insiders that at present, only the United States, France and a few other countries have the key technology of third generation of nuclear power technology.

Net profit of Baiyi Steel in 2007 up 150%YoY

It is reported that Baiyi Iron & Steel Co Ltd scored net profit of over CNY 400 million last year up by 157.5% from that in one year earlier.

Baiyi Iron & Steel Co Ltd realized sales revenue of CNY 12.79 billion in 2007 with profit of CNY 432 million. Net profit hit CNY 405 million and earnings per share reached CNY 0.71.

China auto production and sales in 2008 to hit 10 million mark

According to an industry executive that auto production and sales in China are both likely to hit a record 10 million units in 2008.

Mr Dong Yang vice chairman of the China Association of Automobile Manufacturers said that it was a foregone conclusion that both China's auto output and sales would surpass 8.7 million units in 2007. They will continue to expand at double-digit rates in 2008.

He said the domestic car market had huge potential as the country had 57 million motor vehicles by the end of last year. Among them were 21.5 million privately owned cars. He added that motor vehicles will play an extraordinarily important role in China's consumer spending, as the economy maintained fast growth and the government tried to encourage people to spend money.

According to China Association of Automobile Manufacturers data total auto sales in China jumped to 7.95 million units in the first 11 months of 2007 up by 23.2% from a year ago. Vehicle sales in November alone rose 16.3% in comparison to the same period a year earlier to 800,900 units.

Output of WISCO’s No 5 blast furnace lead the world

It is reported that No 5 blast furnace of WISCO has opened for 3 days with usable capacity of 3200 cubic meters on December 26th 2007.

Its utilization ratio reached to 2000 tonnes per meter cube per day, the production speed was still the leading and first class level among the large blast furnaces.

From the beginning of the blast furnace’s renovation, they created the favorable condition for its successful opening on designing and construction, equipment selection, installation as well as full preparation work.

Baogang sets up logistics Company in Suzhou

It is reported that Baotou Iron & Steel Co Ltd jointly founded a logistics company in Xushuguan Economic Developing Zone in Suzhou New District recently with Suzhou Kaiyuan Group.

The newly founded logistics company will introduce world advanced technologies and equipments and adopt modernized steel storage, processing and distribution mode. It can help customers in resources enquiry, shipment and distribution.

Currently both annual processing and storage capacities reach 500,000 tonnes.

The second stage of its processing and storage base is now under preparation. Annual processing and storage capacities will double when the second stage is put into use.

Wugang develops high strength container steel

It is reported that Wuhan Iron & Steel has succeeded in developing 3.2mm and 6.0mm hot rolled conti rolling steel with high strength of 700MPa to 800Mpa.

As per report properties of this product even surpass that of international standards.

The products could be applied to container production for North America markets.

China Shipping Development 2007 profit up by 65.5% YoY

It is reported that China Shipping Development Co Ltd unaudited net profit of CNY 4.65 billion for 2007 up by 65.5% from 2.81 billion achieved in 2006 under Chinese accounting standards.

China Shipping Development Co Ltd said its operating revenue rose 34.9% in 2007 to CNY 12.54 billion while operating profit rose 51.2% to CNY 4.74 billion. Earnings per share for 2007 reached CNY 1.40 up from CNY 0.85 in the previous year while net return on assets was at 28.86% compared with 22.50%.

Privat completes acquisition of Consmin

Kyiv Post reported that on January 3rd 208, Mr Genadiy Bogolyubov controlled Privat Group won Australian manganese miner Consolidated Minerals in a hard fought bid. As per media reports, Privat Group the now controls more than 232 million shares or 90.02% of ConsMin

The bidding war for Consolidated Minerals started in February 2007 but Privat only entered the game in late August through its offshore vehicle Palmary Enterprises. In December 2007, Palmary increased its offer to USD 1.1 billion and outbid a rival offer by Pallinghurst Resources.

ConsMin produced some 888,000 tonnes of manganese in 2006 equivalent to 10% of annual high grade world production.

The Privat group currently controls much of Ukraine’s ore and ferroalloy business and holds interests in factories in Russia, Poland, Romania and the US.

Privat’s acquisition of ConsMin signifies the largest takeover by a Ukrainian business group since Independence.

Mechel wins tender For Sale of the Property of Port Temryuk Production Complex

Mechel announced that its Mecheltrans transportation subsidiary has won the open tender held by Russian Railways OJSC for the sale of the Port Temryuk production complex. The acquired property complex is located in immediate proximity to Temryuk-Sotra, which is already owned by Mechel.

The tender of RZhD OAO was held on December 28th 2007 and involved the sale of the real estate assets of the Port Temryuk production complex, two land plots of about 150,000 square meters total area.

Mr Vladimir Polin CEO of Mechel Management OOO said “The acquisition of this property complex will enable us to strengthen our presence in the export shipping markets and provide us with more opportunities to efficiently manage the port’s operations and regulate logistics of our deliveries.

He said that “Following complete commissioning of the real estate assets of the Port Temryuk production complex, we plan to achieve its transshipment capacity of approximately 1.5 million tonnes of cargo in 2008 and approximately 1.8 million tonnes beginning from 2009.”

He added that “The operations of the both assets are supported by the same railway branch owned by Temryuk-Sotra and this affords us an opportunity to subsequently join these two infrastructure facilities into a high capacity port transshipment.”

Mechel had acquired 100% of the shares of Temryuk-Sotra seaport located on the Taman shore of the Sea of Azov in September 2007.

YUKU and Raspasdaskya merger in Q1

FIS reported that Russia's largest coking making company will be formed through a merger of Raspadskaya and Yuzhkuzbassugol joint stock companies in the first quarter of this year, which would command a 30% market share.

Earlier it was announced that Raspadskaya OJSC will own 100% of Yuzhkuzbassugol and in turn, Evraz Group will own Raspadskaya through its Corber Enterprises Limited.

Mr Alexander Frolov chairman of Evraz believes that after the merger will create a company that will go down in the world's three largest companies in the coking coal sector.

Yuzhkuzbassugol has 11 mines, two dressing plants, two engineering plant, a motor and cargo transport companies, service unit and it produced 16 million tonnes of coal in 2006.

Raspadskaya combines three mining companies, mine construction, washing plant, as well as the transport and production infrastructure. In 2006, the company produced 10.6 million tons of coal.

Ukrainian coke imports spikes following mining problems

Ukrainian Journal reported that Ukraine’s imports of coke in November 2007 increased by 37.6% MoM following a shutdown of the country’s biggest coking coal producer due to a series of recent explosions.

Ukraine’s imports of coke rose to 195,150 tonnes in November 2207 as compared to 141,780 tonne in October 2007.

Montenegro: Steelworks record losses in 2007 despite good results

MINA News Agency reported that the Steelworks in Niksic produced about 175,000 tonnes of raw steel and 156,000 tonnes of finished products last year, which is 95% of the quantity planned. In 2007, production of raw steel was 8% or 13,000 tonnes higher than in 2006, while increase in finished products was 4% or about 6,000 tonnes.

Radomir Vukcevic resident of the Board of Directors of the Steelworks however said that “Despite these results, the company would be loss making in 2007. Unfortunately, such production results were not accompanied by adequate financial indicators which is why the Steelworks would close the year 2007 with a loss.”

He added that "These production results are even more important when one takes into account the fact that in the period July 15th 2007 to August 15th 2007 we made a general overhaul of equipment and plants and that production had to be stopped in that period.”

Mr Vukcevic added that the Steelworks produced about 23,000 tonnes of special quality steels, which is 9,000 tonnes more than in 2006.

Ms Tymoshenko ready to lend money to Zasyadko mine

Ms Yulia Tymoshenko PM of Ukraine while speaking at the meeting concerning problems solution caused by accident at Zasyadko coal mine said that Zasyadko coal mine must finance in full scope the purchase of accommodations for families of dead and suffered miners.

Ms Tymoshenko said “It is necessary to make a register of all families, who are in need of accommodation, or in need of repair of accommodation, to make up an estimate, then the coal mine will take a credit, and the government will support it in order the coal mine to obtain a long term credit.”

At the same time she has noted that all housing problems of suffered families must be solved in short terms.

Gazpromneft and Lukoil sign a cooperative agreement

FIS reported that Gazpromneft OJSC and Lukoil OJSC established a JV 'Oil and gas company 'Regions Development' for the implementation of projects in the exploration and production of hydrocarbons.

The JV management will be conducted on a parity basis. Gazpromneft's share in the JV share capital is 51%, Lukoil's 49%.

Norilsk Nickel has independent directors board now

FIS reported that at its extraordinary meeting Norilsk Nickel directors board considered the issue on the formation of an independent board.

The independent board will analyze possible deals with the company's shares that may produce an effect of the shareholders' interests and the standing of the metallurgical complex itself. The formation of such a board agrees with the best international practice of corporate management.

Russia to export oil to North Korea

FIS cited Mr Alexander Losyukov Russian deputy minister of Foreign Affairs as saying that Russia is soon to export fuel oil to North Korea in exchange for the latter's actions on deactivation of nuclear objects.

North Korea pointed to the delay in Russian fuel oil supplies as a reason for the postponement of its actions on the deactivation of nuclear objects. The delay is expected to last until the beginning of next year.