Centre reviews steel projects for delays

It is reported that the Indian government has demanded action from state governments of Chattisgarh, Orissa and Jharkhand regarding the pending steel projects and an explanation for the delay has been sought from the state governments..

Indian government is worried because from being an exporter India has become a net importer of steel for the first time in several decades. Already more than 4 million tonnes of steel have been imported this financial year another million tonnes could follow in the next few months.

It is noted that mega projects like POSCO, Arcelor Mittal and TATA have failed to take off in the face of widespread local resistance essentially by tribals. Most steel projects are being planned in these 3 states. Small projects are also stuck, mainly due to fierce protests by tribals against forced land acquisition, often abetted by the state governments.

Metallurgists’ Day celebrated at SAIL SSP

Steel Authority of India Limited’s Salem Steel Plant and the Indian Institute of Metals Salem Chapter has celebrated the 45th Metallurgists’ Day on January 10th at the plant’s Bharathi Arangam auditorium.

Mr BB Singh ED of Salem Steel Plant pointed out that “At this juncture when the Indian economy is experiencing robust growth, the steel industry has a key role to play to provide the infrastructure and support and appreciated the role of metallurgy to achieve the same.”

Dr EG Ramachandran, an eminent metallurgist, gave the keynote address on Stainless Steel. He elaborated on corrosion of metals and the corrosion resistant qualities of stainless steel, including their physical and chemical properties. He explained the corrosion process and the properties of nickel and chromium in stainless steel for corrosion resistance.

Awards were presented to various achievers and teams on the occasion by Mr BB Singh, Dr Ramachandran and Mr S Sisodia VC of IIM Salem chapter.

RINL organizes customer meet

It is reported that Rashtriya Ispat Nigam Limited organized a Customers Meet of Visakhapatnam area at the Center for HRD in Ukkunagaram.

Mr PK Bishnoi CMD of RINL was the chief guest. Speaking on the occasion, Mr Bishnoi said that customer satisfaction is one of the core values of VSP and always attaching importance to the customers’ satisfaction.

Mr CG Patil director commercial of RINL informed the customers about the various initiatives being taken by VSP to satisfy the customer needs.

HZL increases zinc prices by 3.2%

Hindustan Zinc Limited has announced an increase in zinc prices by 3.2% or INR 3,500 a tonne to INR 114,100 (USD 2,903), effective immediately.

The price of lead remained unchanged at INR 115,600 per tonne.

Mr Nerurkar takes over as chairman of TATA Metaliks

TATA Metaliks Limited informed BSE that Dr T Mukherjee has relinquished his office as the chairman of TATA Metaliks after the end of the board meeting of the TATA Metaliks held on January 11th 2008.

Subsequently, Mr HM Nerurkar COO of TATA Steel, has been inducted as a director and the chairman of the board of directors of the TATA Metaliks.

TN cabinet approves L&T shipyard project

Tamil Nadu cabinet has approved the setting up of an integrated ship building yard at Ennore in Chennai by L&T with an investment of over INR 2,000 crore. L&T will build large tonnage ships of up to 300,000 DWT at the ship building yard.

L&T has decided to go in for an integrated port facility as well because of the cost and the breakwater construction work involved. The cost could be shared between the port and the shipyard.

Land for the project will be provided by Tamil Nadu Industrial Development Corporation and will have an equity stake in the project.

L&T has a ship building facility at Hazira in Gujarat and is looking to construct a Greenfield facility since it could not expand at Hazira and also because the ship building business was booming. It looked at sites in Gujarat, Andhra Pradesh and Tamil Nadu.

Indian Railway revenue in 9 months up by 12.46% YoY

Indian Railways has posted total approximate earnings of INR 50787.95 crore during April 1st 2007 to December 31st 2007 period up by 12.46% YoY as against INR 45161.72 crore during April 1st 2007 to December 31st 2006 period.

INR in crore

Bharati Shipyard to develop a new facility near Dabhol

It is reported that Bharati Shipyard is planning to develop a modern shipyard project at Usgaon near the Dabhol Port in Ratnagiri district of Maharashtra.

As per report, the shipyard to be spread over 250 acres of land and would have the capacity to build vessels up to 100,000 DWT.

Bharati Shipyard is reported to have already acquired more than 180 acres of land and is in the process of acquiring the remaining land. Civil work for the project has already commenced and is expected to be fully operational by 2010.

GAIL signs MoU with CIL for coal gasification project

GAIL India has signed a MoU with Coal India for setting up of a surface coal gasification project with an investment of INR 2,400 crore.

The project will produce synthesis gas to be used as feedstock for fertilizer production. The project will use 5,000 tonnes of coal a day to make 7.76 million standard cubic meters a day of gas, which will be used to make 3,500 tonnes of urea per day.

The 2 companies will form a joint working group to evaluate detailed feasibility report prepared by GAIL to evaluate the viability of the project in terms of techno-economic feasibility for the project.

GAIL had earlier carried out a study by Uhde India for examining the potential of the project and it is estimated that the project will consume around 5,000 tonnes per day of coal to produce 7.76 million standard cubic meters per day of synthesis gas for production of 3,500 tonnes per day of urea.

Foreign players interested in wind power projects in India

It is reported that India’s wind energy sector, estimated to have a potential of over 45,000 MW, has seen significant investments from foreign companies who are attracted by the development potential, availability of wind farm equipment at competitive prices and conducive government policies.

Foreign players that have forayed into India’s wind energy sector include Roaring 40s, JV between China Light & Power and Hydro Tasmania, which is setting up a 50 MW wind farm in Maharashtra. Hong Kong based CLP is setting up 100 MW and 82 MW wind farms in Gujarat and Karnataka respectively. Epuron Energy, a subsidiary of Coenergy of Germany, is planning to set up 550 MW wind farms in the next 3 to 4 years. Other multinational renewable energy companies such as Westwind of Australia and Axiona of Spain are also planning to invest in wind farms. BP Energy India Pvt Limited, a subsidiary of the multinational BP, is planning a 40 MW wind farm.

Mr Venkat Sundaram general secretary of Indian Wind Power Association said that “The wind energy sector in India is booming and growing at a rate of about 50% YoY. With price of oil touching USD 100 per barrel, the world has to look at other cheaper and safe options.”

Currently, about 7% of India’s installed generation capacity is accounted for by wind power, which has seen rapid growth in the 10th Five Year Plan with over 5,000 MW capacities being added against the few hundred megawatts in the previous Plan periods.

Today, with an installed capacity of 7,660 MW of wind energy, India stands 4th in the world after Germany, Spain, and the USA. By 2012, this capacity would further increase to 10,500 MW.

NALCO to build a smelter and a power plant in Indonesia

It is reported that National Aluminium Company Limited has signed a preliminary deal with the Indonesian government for a USD 3.2 billion project to build an aluminium smelter and power plant on Sumatra Island.

Mr BL Bagra finance director of NALCO said that, in the first phase, NALCO plans to build the smelter with an annual capacity of 250,000 tonnes and the coal fired power plant with the capacity to generate 750 MW of electricity. He added that it will double the smelter capacity to 500,000 tonnes and add another 500 MW to the power plant in the second stage.

Mr Bagra added that the project may start commercial operation within 5 years and would need 1 million tonnes of alumina a year once it is completed. The alumina will be supplied by NALCO in India. He said "We have spare capacity in India, so we will supply alumina from our plant in India."

He said that the Indonesian government has allowed the company to explore the possibility of mining coal in the province, but if there is no coal available there the provincial government will arrange supplies from Tanjung Enim coal mine operated by state coal firm PT Tambang Batubara Bukit Asam. He added that "There will be a long term contract with Bukit Asam because the life of the project is 30 years."

NALCO's project would be another fresh investment in aluminium processing in Indonesia. In September 2007, Indonesian state miner PT Aneka Tambang Tbk and Russia's United Company RUSAL signed a deal worth up to USD 1.4 billion to construct a bauxite and alumina complex on the island of Borneo.

NALCO owns bauxite mine with annual production of 4.8 million tonnes per year and alumina processing with output of 1.575 million tonnes per year. It also owns an aluminium smelter, producing 345,000 tonnes of aluminium.

Indian Railways urges states to share feasibility study costs

It is reported that Indian Railways is in talks with state governments to share the costs of feasibility studies to be undertaken for developing high speed passenger rail systems and states that want high speed rail corridors would have to start sharing costs with the central government right from the feasibility study stage.

Mr KC Jena chairman of railway board said that “We are asking state governments, which are likely to benefit from high speed rail systems, to share the costs of the feasibility study.”

It is noted that several states including Kerala, Tamil Nadu, Karnataka, Maharashtra, Gujarat, Rajasthan, Uttar Pradesh, Punjab and Haryana had responded to Indian Railways’ proposal to start high speed passenger trains.

India discusses bilateral mining issues with Canada

Dr T Subbarami Reddy union minister of state for mines has met a Canadian delegation, headed by Ms Sandra Pupatello minister of economic development & trade to discuss about mining related bilateral issues.

Dr Reddy has requested Canadian government for transfer of technology for exploration and mining of gold and diamonds for which the delegation responded favorably. He is confident to achieve unearthing of huge resources of gold and diamonds in next 5 years in which Canada also agreed to extend their technology. He also requested the delegation for training Indian geo scientists in Canada and also deputing a team of Canadian experts of mining technology to train experts of Indian mining in India.

At the request of Dr Reddy, the Canadian delegation assured to expedite the supply of Helicopter with modern state of air borne technology to Geological Survey of India for exploration of mineral wealth of the nation.

Dr Reddy also enquired about the progress of monitoring and mitigating landslide at selected sites in India under Indo Canadian collaborative projects as follow up of the MoU. The Canadian delegation invited Dr Reddy for attending Prospective and Developers Association of Canada meeting to interact with the Canadian entrepreneurs in March 2008.

Canada is known for its rich mineral resources of nickel, coal, copper, iron ore and gold. Canadian Mineral Metal Industry is contributing 3.7% of its GDP employing over 6% of its work force. The minerals and metals constitute 17% of total Canada’s export.

Nepal government clears FDI in hydel projects

It is reported that the new Nepalese government has cleared foreign investment in two of its hydropower projects Arun-III of 402MW and Upper Karnali of 300 MW.

However, even as the investment approval is an important milestone in Nepal's attempt at seeking foreign investment in its emaciated power sector, the final award of projects might still be a way long ahead.

Both the projects will be awarded taking into account the technical and financial competence of the bidders and also the amount of free power that incumbent power producers will offer to energy starved Nepal.

This is a significant development for India given that a majority of companies which have bid for the projects are leading names like GMR Energy, Reliance Energy, Jindal Power, Satluj Jal Vidyut Nigam, KSK Energy Ventures etc.

Volvo inks JV with Jaico for manufacturing unit in Bangalore

It is reported that Volvo Bus Corporation in JV with Azad Group’s Jaico Automobiles is setting up a new company called Volvo Bus Body Technologies India.

With an initial investment of INR 80 crore, the new company will undertake selling of complete Volvo bus units including bus body manufacturing at its new facility at Hosakote near Bangalore.

With Volvo Bus Corporation as the majority stakeholder, the new plant will have an annual manufacturing capacity of 1,000 buses and cater to both domestic and export markets. The new plant is slated to roll out a new version of Volvo 9400 Intercity buses by March 2008.

CCEA approves electrification of Udhna Jalgaon rail section

India’s Cabinet Committee on Economic Affairs has approved the doubling of 306.93 kilometer long Udhna Jalgaon rail section with electrification.

The project will be taken up at a total cost of INR 714.60 crore and is scheduled for completion within 5 years.

The doubling of this section will provide additional capacity on the track for catering the projected traffic to meet with the requirement of thermal power plants particularly in Wanakbhori, Gandhinagar and Ukai Sonagadh.

India to enhance role of CEA in Indo Nepal water project

It is reported that Indian power ministry has decided to enhance the representation of Central Electricity Authority officials in the joint mechanism on Indo Nepal water resources development projects.

It is noted that, in the second inter ministerial meeting chaired by Mr Anil Razdan union power secretary on Indo Nepal Water Resources Development Projects, a joint mechanism comprising 3 levels was proposed to resolve the stalemate in Indo Nepal water projects.

A senior power ministry official said that while going through the constitution of various committees it was felt that the representation from CEA requires to be enhanced in the proposed joint mechanism. He indicated that the member may be included as a member of the Indo Nepal joint river commission in addition to the chairperson of CEA.

RIL to invest USD 2.28 billion in oilfield development

BS reported that Reliance Industries Limited will invest USD 2.284 billion to produce crude oil from its eastern offshore KG D6 block from March 2009. It was previously targeting oil production in February or March 2008 but has changed the schedule to keep the third quarter of 2008 deadline for first gas from the predominantly gas rich block.

KG D6 was awarded to Reliance and its 10% Canadian partner Niko Resources in first round of international bidding of oil and gas blocks in 1999. Capital expenditure for the oil find includes USD 733 million for acquisition of a floating production and storage unit.

The oil discovery is estimated to hold 68 million barrels of reserves and initial targeted production will be in the range of 30,000 to 35,000 barrels per day and planned plateau rate of 40,000 barrel per day. The reserves have been independently vetted by third party and there is a further upside potential based on quine marine survey carried out during 2007.

Reliance is separately investing USD 5.2 billion in developing Dhirubhai 1 and 3, the first two of the 15 gas discoveries in the 7,645 square kilometres KG D6 block. Initial output is likely to be 40 million standard cubic meters per day, which will be raised to 60 million standard cubic meters per day in 2009-10. Gas production from the block will peak to 80 million standard cubic meters per day in 2011-12 and remain at that level till 2016-17, after which it will fall to 60 million standard cubic meters per day in 2017-18 and to 40 million standard cubic meters per day in 2018-19.

Rio completes capacity increase at Dampier Port

Rio Tinto's USD 1.4 billion Dampier Port upgrade project in Western Australia has been completed on time and on budget. Capacity at the iron ore port has increased by 90% from 74 million tonnes four years ago to a current capacity of 140 million tonnes per year.

The upgrade was conducted in two phases. Phase A took annual port capacity from 74 million tonnes to 116 million tonnes and Phase B to the current capacity of 140 million tonnes, comprising Parker Point 94 million tonnes and East Intercourse Island 46 million tonnes. The installation of two new ship loaders at the Parker Point wharf allows two vessels to be loaded simultaneously and a 600 meter extension of the wharf allows up to four vessels to be berthed at the one time, reducing ship waiting time.

Mr Sam Walsh CEO of Rio Tinto said that "The expansion of Dampier Port is another testimony to the ability of our teams to bring large projects to fruition on time and on budget. We are investing heavily to help Rio Tinto take advantage of the strong demand growth in the global market, particularly in China. With our studies of the expansion to 320 million tonne per annum capacity in the Pilbara and the Simandou project in Guinea, West Africa, this aggressive ramping up of production to meet that growing demand is set to continue."

He added that the project achieved a significant milestone with over five million work man hours free of lost time injuries, and during peak construction Dampier Operations also managed to achieve record tonnages of shipments.

First iron ore from the new Hope Downs joint venture mine was carried by train to Dampier Port in December 2007, ready for shipment as part of Rio Tinto Iron Ore's new product, Pilbara Blend.

US ITC revokes AD on SS bars

The US International Trade Commission has determined that revoking the existing countervailing duty order on stainless steel bar from Italy and the antidumping duty orders on this product from France, Germany, Italy, Korea, and the United Kingdom would not be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

As a result of US ITC's negative determinations, the existing orders on imports of stainless steel bar from France, Germany, Italy, Korea, and the United Kingdom will be revoked.

This action comes under the 5 year sunset review process required by the Uruguay Round Agreements Act. The sunset reviews concerning Stainless Steel Bar from France, Germany, Italy, Korea and the United Kingdom were instituted on February 1st 2007. On May 7th 2007, ITC voted to conduct full reviews. With respect to France, Germany, and the United Kingdom, all six Commissioners found that both the domestic group response and the respondent group responses were adequate and voted for full reviews.

Duferco sees slowdown in steel industry in H2 of 2008

FT reported that global trading major Duferco sees the possibility of its first prolonged slowdown of global steel industry since 2001 in the second half of 2008.

Mr Bruno Bolfo chairman & owner of Duferco told FT that a period of lower prices and weaker demand might be expected as a result of a delayed reaction to the credit crunch, the impact of which is beginning to seep into some consumer businesses. Mr Bolfo said that “You have to be concerned when you see the reports about the problems in the financial services industry. It is difficult to imagine these would not have some impact on steel.”

Mr Bolfo however added that there are a lot of positive indications for the steel industry that might reduce the impact on the sector of any general slowing in the world economy. He said “China and India are still very strong in terms of their demand for steel and so is the Middle East. It is as though in the past few years we have had 600 million to 700 million new people added to the world.” He added that demand for steel in sectors such as transportation and energy is still very strong even in the US where much of the credit crunch has its roots.

Usiminas in talks to acquire iron ore miners in Brazil

Business News Americas reported that Brazilian flat steelmaker Usiminas is in exclusive talks to acquire local iron ore miners J Mendes, Somisa Siderúrgica Oeste de Minas and Global Mineração. The takeover targets operate in Minas Gerais state, where Usiminas is also based.

Usiminas told the Bovespa stock exchange in a statement that “Negotiations underway are based on market parameters and similar transactions and are in line with Usiminas' long term strategy.”

Usiminas and its subsidiary Cosipa have combined installed capacity of 9.5 million tonnes per year.

Japanese steel makers to hike domestic SBQ plate prices

JMB reported that Japanese integrated steel makers could offer more than JPY 15,000 per tonne of price hike for plate to domestic shipbuilders for fiscal 2008 starting April.

As per report the steel makers try to increase the relative lower price than international level despite of higher cost for raw materials while they could face major cost increase for iron ore and coking coal for fiscal 2007. They could offer wider hike depending on raw materials price for fiscal 2008.

Linde seals long term gas contract with Corus Scunthorpe

Linde Group announced that it has signed a long term supply contract for industrial gases with Corus, a part of TATA Steel. The agreement involves the construction of a new air separation unit at Corus' Scunthorpe site for around EUR 80 million.

The new ASU with a capacity of 1,600 tonnes per day of oxygen as well as smaller quantities of nitrogen will go on stream in mid 2010 in order to support the increase in steel output from the site. The Linde investments also involve refurbishment of the existing ASU and a significant extension of the pipeline network supplying the steelworks.

Dr Aldo Belloni member of the executive board of Linde AG said "This agreement seals the long term future of our relationship with one of our largest customers in the UK and confirms our market leadership in this key market.

Dongkuk Steel increases section prices

It is reported that South Korean Dongkuk Steel has decided to increase its steel section prices by about USD 42 to USD 53 per tonne in order to offset higher production costs of scrap and billet.

Accordingly, H beam price will be about USD 767 per tonne and common section steel price will be about USD 752 per tonne.

Dongkuk is expected to commission its blast furnace in Brazil this October. On the other hand, the company has planned to purchase 50.07% shares from Ssangyong Engineering & Construction Co, Ltd, although Dongkuk has no comment on this case.

Japanese scrap export dips in November 2007

YIEH reported that Japan exported 496,000 tonnes of scrap in November 2007, a decrease of 4,000 tonnes than the same time of last year, decreasing by 0.9% YoY.

The figure has decreased constantly for last nine months. Japanese scrap export totaled 6.02 million tonnes from January to November, decreasing by 15.3% YoY than the same time of last year. It is estimated that the export volume will reach 6.56 million tonnes in 2007.

In addition, Japanese stainless steel scrap export totaled 24,233 tonnes at the same time, increasing by 16.1% than 20,856 tonnes in October 2007.

Timah forecasts strong tin sales in 2008

Dow Jones reported that after rising by 35% to 58,000 tonnes in 2007, PT Timah’s refined tin sales are forecast to remain at the same level in 2008.

According to the company’s published financial results, Its sales in 2006 were 42,613 tonnes, but had already reached 47,270 tonnes in the first nine months of 2007.

Mr Wahid Usman president director of PT Timah told Dow Jones that he expects the price of tin to continue to rise this year due to a decrease in supply. But he refused to give a tin price estimate for 2008. I do not want to affect the market sentiment.

He added that Timah is adding to its offshore dredging and smelting capacity this year and is also planning to invest in downstream tin products and coal production.

JFE and IHI may merge shipbuilding operations

It is reported that JFE Holdings Inc and IHI Corp have entered talks to merge their shipbuilding operations by year end in a move that would create Japan's largest shipbuilder on a tonnage capacity basis.

According to sources close to the deal the two heavy machinery makers envision combining Universal Shipbuilding Corp, JFE's 50:50 JV with shipbuilder Hitachi Zosen Corp and IHI's wholly owned arm IHI Marine United Inc.

Steel from warship HMS Fearless to be recycled

IISI announced that the HMS Fearless, a British Navy warship launched in 1963 and withdrawn from service in 2002, is to be recycled in Belgium. The Ghent based firm Van Heyghen Recycling will take a year to carry out the task.

The ship weighs 11,060 tonnes. From this, almost 7,000 tonnes of waste and scrap, including steel, will be extracted and sorted. Around 6,700 tonnes of steel from the vessel will be smelted at the ArcelorMittal plant outside Ghent.

SSAB announces refinancing of IPSCO acquisition credit facility

SSAB announced that t has successfully negotiated replacement loans for portions of the credit facility entered into for the acquisition of IPSCO Inc on July 18th 2007.

The USD 8.050 billion initially drawn on the Acquisition Facility has gradually been reduced to an outstanding amount of USD 1.5 billion as of January 22nd 2008. The reduction has been made from proceeds generated by the rights issue completed in August of 2007, cash flows from operations and replacement loans of USD 4.46 billion.

SSAB has also launched the EUR 2 billion Medium Term Note Program that was presented to investors in November of 2007, which will be utilized by the Company when conditions in the credit markets are deemed appropriate.

SSAB release said that “The replacement loans will result in longer average credit maturities and lower interest costs. The early repayment of loans drawn under the Acquisition Facility will result in one off costs of SEK 140 million in the fourth quarter due to the early activation of up-front fees that would normally be distributed over the full term of the loan.”

ThyssenKrupp opts for Quintiq Planning Solution

ThyssenKrupp Steel AG announced that it has decided to implement the Quintiq Advanced Planning & Scheduling solution to optimize capacity utilization at its steel mills as well as its supply chain procedures.

The APS solution from Quintiq will help ThyssenKrupp to analyze every step of its process chain and plan each individual stage of production.

The main challenge for this steel scheduling would be to optimize the steel mill selection process, which involves spreading production orders over six continuous casters so that their capacities are optimally utilized. One way of achieving this is by optimizing production parameters such as the duration of production sequences and the casting width, as well as further reducing the number of slabs in stock. Further improvements in delivery performance should be achieved by increasing the number of on schedule slabs and by reducing the amount of orders shifted forward.

Building on the orders provided and consolidated by ThyssenKrupp's own systems, the Quintiq APS solution provides an analysis of order backlogs and draws up the initial rough sequencing. It sequences the continuous casters, generating weekly plans and the final casting programs. The software also performs an evaluation of ThyssenKrupp's key performance indicators, productivity and delivery compliance. This KPI analysis functionality ascertains the quality of each sequence and the associated sequence planning in real time.

ThyssenKrupp Steel started its implementation of the Quintiq Advanced Planning & Scheduling solution in July 2007. The system is expected to go live in the second quarter of 2008.

AK Steel named one of the 10 best performing stocks of 2007 in US

AK Steel Holding has been named by CNNMoney.com as one of the ten best performing Fortune 500 stocks for 2007.

According to CNNMoney.com, AK Steel turned in a "solid 174% increase in stock performance" in 2007, which ranked AK Steel as the second best return to investors among Fortune 500 companies.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "During 2007, we 'put the pedal to the metal,' shifting into a higher gear to accelerate our company's growth and performance. We are very pleased that our continuing progress has been reflected in increased value for AK Steel's shareholders."

As per release, AK Steel’s 2007 stock performance follows a 113% YoY increase that was recorded in 2006, which Fortune magazine termed stellar in its annual ranking of America's largest corporations last April. AK Steel is currently number 378 on the Fortune 500 list of America's largest corporations, ranked according to revenue. Over the past four years, AK Steel has increased shareholder value by about 2,000%.

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.

Resources sector to stay strong - ABARE

According to Australian Bureau of Agricultural and Resource Economics, there is no indication yet the resources boom is about to slow.

The resource Economics said that the outlook for the year ahead remains positive, although there may be some softening of prices in base metals including copper and zinc.

Mr Alan Copeland commodity analyst said that investment in base metals continues to be strong. He said that "For the resources sector as a whole, we certainly think that the good times that we've seen over the past few years are going to continue.”

He added that "Record prices were achieved in 2007 and even though prices might soften in 2008, they are still going to be at very high levels compared to what we've seen over the past three to five years."

Mr Bada says world steel demand to keep high level

According to Mr Hajime Bada, chairman of Japan Iron and Steel Federation, world steel demand will keep high level under firm economy growth worldwide and high rate growth for East Asian and BRIC countries.

Mr Bada, who is president of JFE Steel, also said that Japanese steel industry should overcome worldwide surge for mineral price and environmental issue.

Peabody appoints Mr Navarre as president and CCO

Peabody Energy recently announced that Mr Richard A Navarre has been named president & CCO of the company. Mr Navarre also will remain CFO until a successor is named.

In his new role, Mr Navarre has executive responsibility for Peabody's global sales and trading; business development; strategic planning, generation and Btu Conversion initiatives, resource development opportunities, international growth initiatives including China, business performance and investor relations and corporate communications.

Mr Navarre has been CFO since 1999 and has 25 years of varied financial and business management experience. He has held a series of increasingly responsible positions with the company, including executive responsibility for departments as diverse as Sales, Marketing, Trading and Transportation, Legal, Information Technology, Materials Management and Post-Mining Reclamation.

Mr Boyce chairman of Peabody said that "Mr Navarre has been a key member of the team that has added significant value to Peabody over the last 15 years. Specifically, he led the company's financial and capital market initiatives through the company's leveraged buyout, initial public offering and shaping of the capital structure, directed Peabody's largest acquisitions, and led our initiatives to serve the fast-growing China market. I look forward to working with Rick as we continue to focus on creating outstanding shareholder value. Rick possesses an excellent ability to think strategically and act decisively, coupled with a proven record of driving complex high-value projects to successful completion."

Mr Navarre said that "It is an honor to be named president of Peabody at an extraordinary time in the history of the energy industry and the company. Coal continues to raise its profile as the fastest-growing fuel in the world, global coal demand is rapidly expanding, clean coal technologies are being advanced around the world, and leading countries and companies are aggressively pursuing all energy resources. I look forward to working with the best team in the global coal industry to continue our intense focus on industry leadership and value creation."

Cleveland raises quarterly dividend by 40%

Cleveland Cliffs Inc announced that its board of directors has approved a 40% increase in regular quarterly cash dividend to USD 0.175 per common share from USD 0.125 per common share. The new rate, effective with the quarterly dividend the Board has declared, will be payable on March 3rd 2008 to shareholders of record as of the close of business on February 15th 2008.

Cleveland Cliffs said that the dividend increase brings the annualized dividend on the Company's common stock to USD 0.70 per common share.

Mr Joseph A Carrabba chairman, president & CEO commented that "Today's announcement marks the third common stock dividend increase since 2005, and demonstrates our Board's commitment to creating value for shareholders, as well as continuing confidence in our ongoing business outlook."

ArcelorMittal and Ashton Commodities apply for LME membership

The London Metal Exchange said that the world's largest steelmaker, ArcelorMittal had applied to join the Exchange. The exchange said Arcelor Mittal wanted to become a Category 3 member, which would allow it to clear LME contracts in its own name, but not issue contracts for other clients or trade in open outcry sessions.

The exchange also said it had received an application from Ashton Commodities to become a Category 5 member, which does not give it trading rights except as clients.

GE to provides credit facility to support purchase of Winner Steel

GE Commercial Finance Corporate, a unit of GE, announced that it provided a USD 115 million asset based credit facility to support the acquisition of Winner Steel Inc by a JV between Novolipetsk Steel and Duferco Group.

Winner is now operating as Sharon Coating LLC. Based in Sharon, Pennsylvania, Sharon Coating LLC is one of the largest galvanized steel producers in the United States.

Genesis supported Manazil plant commissioned

Genesis Worldwide Inc, an industry leader in green structural building technologies using light steel in the residential, commercial and institutional construction markets, announces the commissioning, in December 2007, of the new production facility of its licensee, Manazil Steel Framing Factory in Abu Dhabi.
The Manazil manufacturing plant, located in the industrial zone of Abu Dhabi, will produce light steel paneled structures using the Genesis turn key solution, which includes leading edge software, industrial equipment, hardware, processes and engineering services.

Genesis Worldwide Inc had previously announced the signing of the License & Services Agreement on July 10th 2007. Under the terms of the Agreement, Manazil will be the exclusive provider of Genesis building systems in the United Arab Emirates and Qatar. Manazil will remain the exclusive provider of Genesis building systems as long as annual minimum targets are achieved. The term of the Agreement is for a 5 year period, with an option to renew for a further 5 year period.

Genesis light steel structural technology, an energy efficient, environmentally friendly building alternative, is well suited to the hot climates of the UAE. The Genesis Solution utilizes a cavity wall design that incorporates air barriers, vapour barriers and insulation materials in order for its structures to improve energy efficiency, as opposed to the use of a single material, such as concrete, which does not conserve energy as well as buildings with a cavity wall design. By using light steel, less energy is consumed in order to bring the temperature down to a comfortable level.

Manazil is a subsidiary of Khalifa Al Fahad Company of Abu Dhabi, United Arab Emirates, an Emirates construction company established in 1980.

Dubai Drydocks World plans shipyard expansion in Asia

Khaleej Times reported that Dubai Drydocks World is eyeing yards in China, India and Vietnam, to expand capacity in the hot business of rig building with oil at records near USD 100 a barrel.

Mr Geoff Taylor CEO of Dubai Drydocks said that it is part of a joint venture which is in advanced talks to buy a small unlisted shipyard in China's Jiangsu province along the Yangtze River delta. The deal is likely to cost Drydocks World a total of USD 55 million. After the acquisition, it plans to inject more cash to turn the yard into a larger shipbuilding and repair facility. He added that "We have big overall expansion plans. Right now we are looking at more places in China, in India and Vietnam. Any potential acquisitions in Europe and the Americas will be down on our list of priorities."

Dubai Drydocks moved for its first acquisitions abroad, paying about USD 424 million in May 2007 for Singapore shipbuilder Pan United Marine and USD 1.6 billion in October 2007 to buy the city state's offshore oil rig builder Labroy Marine. Currently it builds ultra large crude carriers, converts tankers into floating production vessels and builds floating offshore rigs to explore and drill for oil.

Its parent, Dubai World, has long been on a global shopping spree, snapping up huge stakes in ports, airlines, office buildings and casinos, mostly in the developed world. Drydock World's sister firm Dubai Ports World, which was forced to sell its US assets after agreeing to buy P&O for USD 6.8 billion in 2006, has rivaled Singapore's state owned port operator PSA International in several bids for stakes in ports across the world.

Mr Taylor said that Drydocks World also expects to see strong competition in Singapore. Both the Singapore yards together have about one third of all offshore rigs under construction worldwide. Drydocks World is developing another ship and rig building yard on a 200 hectare site in Batam that was bought in November from Indonesian authorities. The yard is due to start by 2010. Drydocks World has funded its purchases mostly with bank loans, including a USD 1.7 billion syndication loan which it launched in November. He added "We carry a lot of debt, but the debt is weighed against the business potential. We are a very strong group and a lot of banks are quite willing to work with us."

Drydocks World saw its revenue and profit grow up by 25%YoY in 2007. It raised almost USD 5 billion in November 2007 in Middle East's biggest IPO.

Iran backs technical and engineering projects in Persian Gulf

IRNA reported that Trade Promotion Organization of Iran has undertaken to implement 2 technical and engineering services projects in the Persian Gulf states.

Mr Mehrdad Jalalipur director general for export development affairs at Trade Promotion Organization of Iran said that members of the working group will carry out the projects worth about USD 150 million. He added that the first project is the construction of 350 houses in Sharjah worth AED 220.5 trillion and the project should be accomplished in 38 months.

Mr Jalalipur further said that the expansion of ties between Iran and the Persian Gulf states are among the most important objectives of applying for the project.

He also referred to the project of a power plant with the capacity of 54 MW and Oman refinery, saying that an Iranian company has won the USD 76 million project from British, German and Dutch rivals in an international tender. According to the official, the project includes engineering, procurement and construction, which should be completed in 28 months.

Kuwait's IPC wins USD 1.2 billion oil supply contract in Zambia

Reuters reported that Zambian government has awarded a USD 1.2 billion two year oil supply contract to Kuwait's International Petroleum Group.

Under the contact, International Petroleum Group will supply 1,440,000 tonnes of crude oil over a period of 2 years and the first batch of 90,000 tonnes will arrive on or before February 9th 2008.

International Petroleum Group would also supply 16 shipments of 90,000 tonnes of crude oil to Zambia, which has recently faced serious fuel shortages.

Pakistan would not wait for India in IPI deal – Mr Musharraf

Daily Times quoted Mr Pervez Musharraf President of Pakistan as saying that the IPI gas pipeline project will be completed irrespective of India's participation.

Mr Musharraf, in a meeting with Mr Manouchehr Mottaki foreign minister of Iran, said that Pakistan would not tolerate any external pressure to abandon the Iran Pakistan India gas pipeline project.

He added that the deal was important for Pakistan to meet its energy needs and called for the multi billion dollar project to be implemented as soon as possible. He further expressed hope that India would rejoin the project and talks were under way with Indian officials in this regard.

It is noted that India left the trilateral talks over differences with Islamabad on issues such as the fee Pakistan would charge India for gas transit. India and Pakistan were forced to continue negotiations without India.

Meanwhile, Iran and Pakistan began a new round of talks on the project, also known as the 'Peace Pipeline', in mid December 2007 in Tehran, where the details of the deal were finalized.

S&P assigns 'BBB-' rating to Emirates Trading Agency

Standard & Poor's ratings services said that it assigned its 'BBB-' long term rating to the USD 300 million unsecured credit facility of Emirates Trading Agency LLC, a fully owned subsidiary of Dubai based industrial conglomerate ETA Group.

The original borrowers under the facility are Emirates Trading Agency, Associated Construction and Investments Co LLC and ETA Star Holdings Ltd Jebel Ali. The loans under the facility will be guaranteed by material subsidiaries and affiliates of the borrowers, corresponding to at least 75% of total EBITDA of ETA group.

The facility has been rated at the same level as the corporate credit rating on ETA, reflecting the upstream guarantees and the implicit support factored into ETA's rating from its 52% owner Al Ghurair family.

Emaar MGF gets SEBI nod to float INR 7,000 crore IPO

Real estate major Emaar MGF has received Indian market regulator SEBI's approval to launch an initial public offer to raise about INR 7,000 crore. The issue is likely to hit the capital market in the first week of February 2008 and is expected to be listed by February end.

Emaar MGF, a JV firm between Emaar Group of Dubai and Delhi based MGF Development, had filed a draft red herring prospectus with SEBI in September 2007 for selling 10% stake in the company to the public through the IPO.

Mr Mohamed Ali Alabbar chairman of Emaar Properties had said in December 2007 that the JV firm would be rising about USD 1.7 billion through dilution of 10% stake.

Emaar MGF has a land bank of over 12,500 acre, which is spread over 22 cities in 16 states in India. It has commenced projects in eight cities in 7 states in India. It is engaged in development of properties in residential, commercial, retail and hospitality sectors. In addition, it has identified healthcare, education and infrastructure as business lines for future growth.

QP inks 50:50 JV with Weatherford International

The Peninsula reported that Qatar Petroleum has signed an agreement with Weatherford International to build a 50:50 JV called Al Shaheen Well Services Company with a capital of USD 225 million.

Weatherford's core service lines, including directional drilling, tubular running, drilling tools and wire line, both open and cased hole will form the joint venture's initial activities. Other Weatherford products and service lines will eventually support the joint venture, including services for controlled pressure drilling, under balanced drilling, coiled tubing drilling, tubing intervention, pressure pumping and project management.

Mr Abdullah bin Hamad Al Attiyah Qatar’s deputy premier and minister of energy & industry and Dr Bernard J Duroc Danner chairman, president & CEO of Weatherford had signed the agreement at QP headquarters.

Mr Al Attiyah said that "Weatherford's name and reputation will enhance the joint venture's value to clients, especially since the partnership will benefit from having access to the company's advanced technologies, product line support, training facilities and quality management systems." He added that the JV activities would not be limited only to Qatar, but the partners may conduct their business wherever they find the right opportunities.

Dr Danner said that "Our partnership with QP will permit us to participate more effectively in the rapidly growing oil and gas business in Qatar." He added that Weatherford is keen to set up an R&D centre at the Qatar Science and Technology Park as soon as possible.

Saudi Arab and German trade may reach SAR 4.1 billion

Jeddah Chamber of Commerce & Industry said that the volume of Saudi German investment in the Kingdom is estimated at SAR 4.1 billion in 115 projects.

Mr Saleh Turki chairman of JCCI said that “This shows the success of the Kingdom’s steps to attract foreign investments with a target of SAR 620 billion over the next few years.” He added that the mutual trade between the 2 countries rose by 15% in 2006.

The German exports to the Kingdom stood at SAR 18.24 billion accounting for 8.18% of the total Saudi imports in 2005. On the other hand, the Saudi export to Germany was SAR 4.08 billion accounting for 0.6% of the total imports of Germany. Volume of trade between the two countries stood at SAR 22.32 billion, with SAR 14.15 billion in favor of Germany in 2005.

The major Saudi exports to Germany include crude oil and related products worth SAR 3.79 billion, polyethylene worth SAR 65 million and packaging paper worth SAR 7 million. While, the major German exports to the Kingdom in 2005 included mobile phone equipment worth SAR 917 million, cars worth SAR 870 million, barley worth SAR 804 million and medicine SAR 695 million.

Tabreed to provide cooling services to Dubai & Abu Dhabi

Khaleej Times reported that cooling company Tabreed has signed long term agreements to provide cooling services to 3 new projects in Dubai and Abu Dhabi with a total of 7150 tons of refrigeration annually.

The 20 year agreements provide the Rolex Building owned by Ahmed Seddiqui & Sons with 2200 tons of refrigeration, 1350 tons of refrigeration for the Foresight Development & Project Management of Offices Tower located at W10 C 67 and 3600 tons of refrigeration for the Commercial and Residential Complex Project of SEBA Real Estate.

Mr Dany Safi CEO of Tabreed said that “Developers in the region are nowadays more aware of the benefits of district cooling technology. The recent trend of developing green buildings in the UAE has encouraged the district cooling sector and we are confident that the coming years will witness increased interest in this advanced technology.”

Tabreed has provided cooling services to Offices Tower in December 2007 and will start supplying for the Rolex Building from February 2009 from its Sheikh Zayed Road plant while Tabreed's Spinney plant in AD 11 will start cooling for the SEBA Real Estate from March 2010.

Makkah real estate market may cross SAR 1.5 trillion in 2008

Arab News reported that the volume of the real estate market around the Haram Mosque in Makkah is projected to cross SAR 1.5 trillion in 2008up by 50% YoY.

Mr Bandar Al Homaidah member of the real estate committee in the Makkah Chamber of Commerce & Industry said that the new developmental projects and construction of infrastructure including circular roads in Makkah would reduce the residential facilities in general. He warned an impending real estate crisis because of various factors including the evacuation and demolition of around 1,000 properties comprising 4,000 residential units for the new expansion scheme of the Haram Mosque courtyard.

Mr Abdullah Ibrahim Al Saggat chairman of the property assessment committee in the Makkah region said that the work on the northern expansion of the Haram Square, which will be ready for worshippers in 5 years, would start the after the completion of the assessment of the value of the properties and the transfer of the ownership. He added that “The properties to be demolished are within 400 meters in the Al Ezzah Street toward the Jabal Kaaba in the north western direction of the Haram Mosque.”

Mr Essam Basnawi deputy chairman of MCCI said that the available plots would not be able to accommodate 75% of the displaced. He added that “A chamber committee plans to form a real estate bloc that can head off a real estate crisis in Makkah after the demolition of 1,000 properties. Makkah is in need of more residential buildings to satisfy the increasing demand. Those who build new properties will serve as the substitute for the properties demolished for the expansion project.”

Nakheel lays last stone for World's breakwater

Khaleej Times reported that property developer Nakheel has laid the last stone of the 34 million tonnes of rocks used to construct the 27 kilometre breakwater surrounding The World, a man made archipelago of 300 islands.

Nakheel said that Mr Hamza Mustafa director of The World laid the last stone. It added that "The next phase involves handing over islands to developers for the construction and building of infrastructure."

This marked the completion of the first phase of The World, which is being built 4 kilometer off the coast of Dubai and involves the breakwater land reclamation requiring 320 million cubic metres of sand dredged from the sea.

The latest project involved Dubai Promenade, a waterfront community surrounded by the sea and anchored by a five star wheel shaped hotel along the Dubai shoreline. Set for completion by 2011, the project gives emphasis to open space and waterfront lifestyle. Its reclamation work, which involves 750,000 tonnes of rocks and 650,000 cubic meter of sand, will be finished in March 2008. The value of all of its projects currently under development is AED 220.35 billion.

Jinchuan finds Zinifex offer for Allegiance undervalued

China's largest nickel producer Jinchuan Group, a major shareholder of Australia's Allegiance Mining, said that Zinifex's AUD 775 million offer for the Sydney based nickel miner undervalues the company.

In a statement lodged with the Australian Securities Exchange it said that Allegiance's highly prospective Avebury nickel mine in western Tasmania remained largely unexplored. It said that "Jinchuan believes that there is significant upside in Allegiance, therefore the AUD 1 per share offer for Allegiance is not reflective of the true value of the company.”

Mr Li Yongjun chairman of Jinchuan in the statement added that "We strongly support the management and board of Allegiance and believe they are creating excellent value for shareholders, and jointly we will
continue to do so.”

Zinifex launched its all cash offer of AUD 0.9 per Allegiance share last month and pledged to increase the offer to AUD 1 per share if it acquires more than 30% of Allegiance shares, or if Allegiance's board approves the offer. Allegiance has advised shareholders not to take action on the offer.

Jinchuan has a 10.4% stake in Allegiance, and strategic agreements with the miner including an offtake deal for production from the Avebury mine. Avebury is scheduled to begin production later this month.

Chinese import and export data for 2007 released by customs

Subsequent to the tentative numbers from unconfirmed sources, Chinese customs has released export and import details for 2007.

As per the posting the details are as under

In million tonnes

Iron ore

In million tonnes

Coal & coke products

In million tonnes

Goldman Sachs bags a slice of upcoming Chinese shipbuilder

It is reported that GS Phereclus Holdings a wholly owned unit of US based Goldman Sachs, has acquired a 20% stake in shipbuilder Yangfan Group of China for USD 50 million.

The shipbuilder has two manufacturing bases, one on the Lujiazhi Island in Putuo District of Zhoushan City of East China's Zhejiang Province and the other on the Mayi Island of the city. The base in the Mayi Island which was put into production at the end of 2007 has an annual manufacturing capacity of 320,000 tonnes and annual production value of CNY 4 billion.

This is another move of the US Company in China's shipbuilding industry. It purchased a stake in Chinese shipbuilder Jiangsu Rongsheng Heavy Industries Group Co Ltd for USD 250 million in November 2007.

Jiangsu Xinrui denies talks of takeover bid by Shagang

China Business News reported that Jiangsu Xinrui Special Steel has refuted the media report on January 8th 2007 that Shagang has nearly concluded takeover of Xinruin.

Mr Liu Jiangang owner of Jiangsu Xinrui Special Steel told China Business News that “It is not true.’

Xinrui has been operating Tieben under lease from the Jiangsu provincial government since September 2004, six months after Tieben was ordered to shut its doors. Tieben encountered trouble because it began upgrading capacity without proper government approvals.

The Xinrui acquisition puts Shagang in a good position to vault into China's second largest steel producer from third if it can also boost its stake in the 5 million tonne Yonggang. It currently has no management control at Yonggang but said that it wants to engage in joint venture projects. Shagang also bought the 2.5 million tonne Yongxing in 2007 and the 3 million tonne Huaigang in 2006.

TISCO becomes market leader in electrical steel in 2007

It is reported that 2007 has been the mile stone for Taiyuan Steel in its development of high grade cold rolled silicon steel. It succeeds to realize historical breakthrough and become No.1 in market share of high grade CR silicon steel.

Over the past years, capacity of CR silicon steel has been surging. Most producers are sparing no efforts to step up investment so as to seek more profits through output increase. Facing cut throat competition, Taiyuan Steel decided to assume the strategy of differentiation marketing by concentrating on the development of CR silicon steel.

During the past two years, it developed 50TW250, 50TW 35TW230, 35TW250, 35TW270 in succession, with thickness at 0.35mm and 0.65mm. In addition, it has been improving its overseas sales channel and set up cooperation ties with several famous enterprises home and abroad.

10,000 mining sites closed down in 2007 in China

It is reported that China closed down 10,258 illegal mining areas, investigated and prosecuted 2,228 cross boarder and tortuous mining cases.

As per report Ministry of Land & Resources of all provinces, regions and cities cancelled 5,546 and suspended 798 mining permits, investigated and prosecuted 2,228 cross boarder and tortuous mining case, pursued CNY184 million of compensation for mineral resources, fined CNY7,203.99, confiscated 2.7389 million tonnes of iron ore and handed over 224 criminal punishments to judicial authorities.

It also points out the key points of annual inspection in 2008 include reorganizing and regulating the mineral resources development order, improving comprehensive utilization of mines’ resources, checking environmental protection, and enhancing the overall level national mineral resources development and utilization.

China’s 1st HR based wide HDG line commissioned

It is reported that the China’s first domestic hot rolled wide galvanizing line was put into production on January 3rd 2008 and the first 4.0mmX1250mm HR bases galvanizing coil was produced.

Capital Engineering & Research Incorporation Limited developed hot rolled plate galvanizing line of Nan Jiguang Iron & Steel Company Ltd successfully on the basis of absorbing foreign advanced technology, and with the annual output of 300,000 tonnes.

The economic benefits of hot rolled galvanizing plate are more than cold rolled galvanizing plate notably and sales cost per unit as well as business operational cost is lower than cold rolled galvanizing plate, so the hot rolled galvanizing plate produced by Nan Jiguang Iron & Steel Company can replace part of cold rolled galvanizing plate with the same quality and specification. S

Shaogang profits in 2007 reach CNY 20.5 billion

It is reported that in 2007, Shaogang steel output was 4.41 million tonnes and the profit was CNY 20.5billion up by 60% YoY, beast ever in Shaogang’s history.

Mr Yu ziquan the board chairman of Shaogang expressed that the steel output of 5 million tonnes and the sale income of CNY 25 billion is the target for future.

China's logistics flow grows by 25.5% in 2007

According to the estimates of the China Federation of Logistics and Purchasing, China's total logistics flow in 2007 grew 25.5%YoY to CNY 74.8 trillion.

China's demand for modern logistics continued to increase due to fast economic growth, with the logistics demand elastic coefficient in 2007 rising to 3.2 from 2.8 in 2006.

Mr Lu Jiang chairman of the China Federation of Logistics and Purchasing at a forum on international logistics cooperation in Beijing on Thursday said “Although the industry maintained stable development in 2007, competition from foreign peers will mount in 2008 and the domestic logistics sector will see increasing openness."

He also pointed out challenges facing domestic logistics enterprises, including insufficient information technology support and un advanced transportation methods.

China to announce revised resource tax system in 2008

According to official with China State Administration of Taxation, details of a new resource taxation system will be announced this year.

The system is still being finalized, but sources have said that it may include a shift to taxation by price instead of volume and an expansion of the category of taxable resources. The goal is to end a situation where resources are lightly taxed to support economic development, which has in turn led to waste and pollution.

Mr Yang Suizhou vice director of the SAT's local tax department said that the agency was refining the plan to meet the requirements of the State Council, China's cabinet. He said that there is still no timetable for the introduction of a fuel tax. First proposed in 1994, the introduction of a fuel tax has been delayed amid concerns that it may impose too great a burden on those who use more oil, such as bus and taxi drivers.

Mr Han Wenke director of the energy research institute of the National Development and Reform Commission said that a tax would help to maximize fuel efficiency and minimize pollution, but its timing needed to be carefully studied. Surging world oil prices and government concerns about inflation have also stymied introduction of the proposed tax.

China raised taxes on lead zinc, copper and tungsten ores in 2007, the first raise since 1994 as well as on coking coal.

Hainan sets up thermal coal mining base

It is reported that Hainan's first thermal coal reserve base has welcomed its first batch of 46229 tonnes of coal from Qinhuangdao Port. The reserve base is now under construction and will be completed in early half of this year.

Total investment of the base amounts to CNY 30 million. The first stage will reserve 300,000 tonnes of coal, which can feed electricity generation stations for 30 days. The capacity will expand to 1 million tonnes to ensure normal generation in three months.

Yankuang Group CTL project approved

It is reported that China's top coal company Yankuang Group has won initial governmental approval to build a CNY10 billion coal to oil project in Shaanxi Province.

Mr Zhang Minglin deputy general manager of Yankuang said that Several technical experts sent by the National Development and Reform Commission have finished assessing the project in Yulin in the Northwest China province, but the NDRC hasn't yet given its final permission to start building the venture.

He said that that Yankuang's Hong Kong listed unit, Yanzhou Coal Mining Co Ltd will take a stake in the project without elaborating. Yankuang may spend a further CNY 50 billion to expand the venture to 5 million tons a year by 2013.

According to China's largest coal producer Shenhua, China's first direct coal to oil plant will start operation this year. The project is based in Erdos in the Inner Mongolia autonomous region. Its annual output capacity is 1.08 million tonnes and will consume 3.45 million tonnes of coal. Shenhua launched the project in 2004. The company has joined forces with South Africa based Sasol to set up two indirect coal to oil plants using Sasol's technology.

Baogang unveils strategic objectives for 2008-10

It is reported that Baotou Iron & Steel Co Ltd has confirmed its operation objectives in 2008 and the following three years.

In 2008 the steelmaker aims to produce 9.5 million tonnes to 9.65 million tonnes of iron, 9.8 million tonnes to 10 million tonnes of steel, 9.24 million tonnes of billet and export 0.9 million tonnes to 1 million tonnes of steel products. It plans to realize sales revenue of CNY 40 billion and profit of CNY 2 billion.
During the following three years Baogang plans to raise both sales revenue and total assets to USD 10 billion each in the end of the 11th "Five-Year" Plan. It intends to change its major products to pipes and flat products, achieving sales revenue of over CNY 60 billion; in the meanwhile in rare earth sector it will score sales revenue of over CNY 10 billion through resource integration, industrialization and independent innovation.

ArcelorMittal Kryviy Rih steel output in 2007 up by 7% YoY

Ukraine's largest steel maker, Arcelor Mittal Steel Krivoi Rog, produced 8.103 million tonnes of steel in 2007 up by 7.1% YoY.

Its steel roll output in 2007 increased to 7.119 million tonnes up by 3.9% YoY as compared with 2006.

Iron output increased by 6% YoY to 7.208 million tonnes. Agglomerated iron ore output increased by 4.9% YoY to 11.954 million tonnes. Concentrate output increased by 8.4% YoY to 8.461 million tonnes.

It’s coke output increased by 11.6% YoY to 3.009 million tonnes.

Blast at coalmine in Kazakhstan kills 7 miners

It is reported that a methane gas explosion that ripped through to ArcelorMittal’s Abaiskaya coal mine in Kazakhstan early Friday killed 7 miners and 23 were still missing.

ArcelorMittal statement said that “At this time it is believed that there are 7 fatalities. Current indications show a further 23 people are still missing. The cause of the accident is not yet known. “

The release added that “Emergency planning procedures are in place at the mine and have been immediately implemented. Rescue work is currently underway. Senior members of ArcelorMittal Temirtau management including CEO Mr Satish Taparia, are present at the mine. A full investigation is being launched into the causes of the accident.

Mr LN Mittal president & CEO of ArcelorMittal said “I deeply regret that there has been an accident in one of our mines in Kazakhstan. We are doing everything we can to locate those still missing and to assist the bereaved. The safety of our workers is our number one priority and there has been a significant capital expenditure, change in operating practices and a change in management to improve health and safety at our mines in Kazakhstan over the past years. An investigation into the causes of the accident has been launched.”

PMH buys 30% of Tulachermet from Mikhailovsk GOK

FIS reported that on the New Year's eve Production and Metallurgical Holding closed the deal on the purchase of a 29.9% shareholding in Tulachermet from Mikhailovsk GOK for USD 150 million.

Until recently PMH managed the company jointly with Metalloinvest Holding. The Company's press service reports that the deal will enable the holding to implement steel project at Tulachermet aiming to develop new production of the capacity of 3.5 million tonnes of slabs per annum.

Russia, Greece and Bulgaria ink Balkan pipeline deal

RIA Novosti reported that Russia, Greece and Bulgaria initialed on Thursday an agreement on establishing an international project company to build an oil pipeline across the Balkans. Once completed, the pipeline will pump 35 million tonnes of oil a year, a volume that could eventually be increased to 50 million tonnes.


The report cited a source as saying that "The agreement that has been initialed paves the way for the project's implementation, in particular, for technical surveys and the solution of financial issues related to the construction of the oil pipeline."

Russia, Bulgaria, and Greece had signed a deal on the Burgas to Alexandroupolis oil pipeline to carry Russian oil via the Bulgarian Black Sea port of Burgas and Greece's Alexandroupolis on the Aegean on March 15th 2007. Russia will have a 51% stake in the international project company while Greece and Bulgaria will own 24.5% each

One killed at Severstal NA plant

It is reported that a worker at the Severstal Steel North America’s plant at Dearborn in US has been killed after falling nearly 25 feet.


Ms Katya Pruett spokeswoman of Severstal NA said that the accident is under investigation and that plant officials are preparing a statement.

This is the second accident at the plant, formerly known as Rouge Steel, this week. Recently a furnace exploded and one worker was hurt.

Ukrainian steel output in 2007 up by 5% to 8%

Ukrainian Journal Staff reported that Ukrainian mining and metallurgical companies in January through December 2007 increased production of main types of steel products by an estimated 5% YoY to 8% YoY.

As per report finished rolled steel output last year grew by 5% to 36.168 million tonnes, steel output grew by 5%, to 42.830 million tonnes and cast iron output grew by 8%, to 35.647 million tonnes.

Severstal consolidates 71.1% of SeverCorr

RIA Novosti reported that Severstal, Russia's top steel producer has acquired 100% of Baracom Limited consolidating 71.1% of US based company SeverCorr's shares as a result.

Severstal said in a statement that the full consolidation of SeverCorr financials would begin in Q1 of 2008.

SeverCorr can now produce 1.3 million tonnes of high quality rolled steel per year with 1.5 million tonnes at full capacity. Its capacity is expected to double in 2011.

Hitachi to make excavators in Russia

Itar-Tass reported that the Japanese major company Hitachi plans to open a joint venture in Russia to make hydraulic excavators.

According to preliminary estimates the implementation of the project with the participation of the company TBS will begin this spring, Hitachi’s financial contribution will amount to about 70% to 80%.

The joint venture is to be placed on the territory of a plant of the Kostroma region which will be modernized and it will annually make some 3,000 such excavators.

According to Japanese experts’ estimates Hitachi has been already supplying some kinds of heavy machinery to the Russian market, which is very perspective.

Nord Stream project cost to exceed initial plans

AP reported that costs for a proposed Baltic Sea pipeline to deliver gas from Russia to Germany will exceed the initial estimate of USD 7.3 billion.

Mr Jens Muller spokesman for Nord Stream said that a revised cost estimate for the 1,200 kilometer pipeline will be presented in March 2008. He said that it has become quite clear that the cost will be higher than the original estimate.

Mr Dirk von Ameln Nord Stream official said however, that the consortium is so confident that the project would be approved by Baltic Sea nations that it has ordered its pipelines already. He said that there will be no need for increased Russian military presence in the Baltic Sea and the environmental impact has been investigated carefully.

The pipeline is planned to carry 55 billion cubic meters of gas each year from the northwestern Russian port of Vyborg to the northern German port of Greifswald, bypassing current routes through Poland, Belarus and Ukraine.

AvtoVAZ car sales in 2007 up by 6.2% YoY

RIA Novosti reported that Russia's largest automaker AvtoVAZ announced a 6.2%YoY increase in domestic car sales in 2007 to an all time high of 663,500.

AvtoVAZ said in a statement that "In 2007, AvtoVAZ sold 663,500 cars in Russia a record number in the history of the company's operations on the domestic market. AvtoVAZ car sales in Russia in 2007 exceeded the 2006 figure by 38,500 vehicles or 6.2%."