TATA Steel inks JV with Al Bahja for development of Uyun Limestone

TATA Steel Limited has announced that it has entered into a JV agreement with Al Bahja Group of Oman on January 16th 2008 for the development of the Uyun Limestone deposits at Salalah in the Sultanate of Oman. The JV agreement was signed by Mr Ajit Hamlai chairman of Al Bhaja Group and Mr B Muthuraman MD of TATA Steel.

TATA Steel will be holding 70% stake in the existing company named AL Rimal Mining LLC through its subsidiary TS Global Minerals Holdings Pte Ltd. Al Rimal Mining LLC will execute the project of developing and operating the Uyun Mine.

The initial phase will involve exploration and detailed feasibility studies. The project envisages mining of limestone in the Uyun region which lies in the Salalah province of Oman and has large deposits of limestone.

Mr Muthuraman said that "TATA Steel is pleased to have signed this agreement. TATA Steel has nearly 100 years of extensive experience of exploration, modeling, designing and operation of both underground and open cast mines. TATA Steel will continue with its policy of introducing best practices for mining, as well as for management of the environment in the development of the Uyun Limestone Mine in Oman. We value our partnership with the Al Bahja Group and we are sure that this partnership will play a significant role in the mineral development of the Sultanate of Oman. These investments in mining are the foundations towards achieving TATA Steel's vision of becoming a global benchmark in value creation, corporate social responsibility, environmental protection and safety through passionate, talented and motivated employees."

Mr Ajit Hamlai chairman of Al Bahja Group said "The Al Bahja Group is proud to have joined hands with TATA Steel as its partner for this Limestone project. It is one of the major steps towards strengthening the country's mineral resource base and opening new opportunities for the people of Oman. We are confident that TATA Steel's technical excellence and the rich experience shall take this project to its successful implementation.

Al Rimal Mining LLC, a group company of the Al Bahja Group of Oman, which enjoys good reputation in the business circles of Oman and has presence in Agriculture, FMCG, Copper, Real Estate, Hotels & Resorts, Pharmaceuticals and Alternative Energy Solutions in Oman.

JSW Steel acquires 8 mining concessions in Chile

JSW Steel Limited has announced acquisition of 8 concessions in a green field area through its Netherlands based wholly owned subsidiary for exploration and exploitation of magnetite iron ore deposits in the region of Atacama in the North of Chile for USD 52 million.

These exploration mining concessions extend over an area of approximately 1200 hectares.

Mr Sajjan Jindal vice CMD of JSW Steel while commenting on this acquisition said that "These mines are expected to have good quality magnetite iron ore deposits located near pacific coast facilitating shipment of ore at competitive cost. It acts as a natural hedge against high cost iron ore procured from third parties in India once these mines are operationalised."

He added that he is negotiating to forge a JV to develop various iron ore mining projects in South America which he is hopeful of concluding in the near future.

JSW Steel has been actively pursuing to augment captive sources of iron ore and coal both in India and overseas for its Indian steel making operations.

Cockerill Maintenance & Ingenierie makes offer for Flat Products

Flat Products Equipments India announced that Edelweiss Capital Ltd manager to the offer on behalf of acquirer Belgian Cockerill Maintenance & Ingenierie SA has issued a public announcement as under

Belgian Cockerill Maintenance & Ingenierie SA is making an open offer to the existing public shareholders of the Flat Products Equipments India to acquire up to 9,87,563 equity shares of the Flat Products Equipments India being 20% of the fully diluted voting capital of at a price of INR 517 per fully paid up equity share payable in cash in accordance with the SEBI regulations & subject to the terms & conditions mentioned in public offer and the terms & conditions that will be set out in the letter of offer in relation to the Offer.

Schedule of activities
Specified date - January 17th 2008
Date of opening of the offer -March 10th 2008
Date of closing of the offer - March 29th 2008

Mr Jean Marc Kohlgruber president of Cockerill Maintenance & Ingenierie said that “It is an exciting combination as Flat Products is a perfect complement to our strategy. Flat Products makes galvanizing lines and has set up mills for TATA Steel and the JSW Group. Since Cockerill Maintenance & Ingenierie is not present in low end galvanizing, the move would complete Cockerill Maintenance & Ingenierie’s portfolio.”

Rio Tinto plans to export iron ore from India

It is reported that Rio Tinto, which Rio has a 51% stake in an iron ore project with the government of Orissa, is all set to develop a new iron ore export business out of India.

Mr Sam Walsh chief of iron ore business of Rio Tinto said that "We think we are well placed in India and are quite optimistic that in negotiations with the Orissa Government we will be able to bring this project to fruition."

He was also upbeat on the prospects of being able to sell Australian iron ore to India as its steel consumption rises.

Rio's optimism on India comes as it is promoting its growth prospects to fend off a potential takeover bid from BHP Billiton.

Welspun Gujarat Stahl Rohren Q3 profit up by 136% YoY

Welspun Gujarat Stahl Rohren Limited has announced the following unaudited results for the October to December quarter 2007

It has posted a profit after tax of INR 974 million for the October to December quarter 2007 up by 136.4% YoY as compared to INR 412 million for the October to December quarter 2006.

Its total Income has increased from INR 7456 million to INR 10386 million up by 39.2% YoY.

Southern Ispat board approved merger plan

Southern Ispat Limited announced that its board of directors at its meeting held on January 15th 2008 has taken on record the following

1. The board accorded its in principle approval of the merger of Kerala Sponge Iron Ltd and the managing director is authorized to carry on with the discussions with the Board of Kerala Sponge Iron Ltd and to inform the board regarding the progress of discussions.

2. The Board has authorized the managing director to do all the necessary works related to the procurement of raw material to the upcoming Integrated Steel Plant at Kannur.

3. The Board has accorded its approval to change the name of the Company to Southern Ispat & Power Ltd.

Vedanta seeking partner for steel plant in Orissa

PTI reported that Vedanta Resources, which plans to enter India by setting up a steel plant in Orissa, is seeking a joint venture partner for the project.

Mr Anil Agarwal chairman of Vedanta told reporters that “The 10 million-tonne per annum plant will be set up as a 50:50 JV. The JV partner could either be a domestic company or a foreign entity.”

Mr Agarwal said that "Steel is not our business and we want to remain as an equity player in the business. Work on the project will commence by the end of this year.”

Vedanta to ramp up Sesa Goa's production capacity

Vedanta Resources said that it will ramp up Sesa Goa's iron ore production capacity to 20 million tonnes per annum to 25 million tonnes per annum from the current capacity of 12.2 million tonnes per annum over a period of 3 years.

As per report, Vedanta also intends to ramp up the pig iron production capacity to 1 million tonne per annum from the present 292,000 tonnes per annum while, metallurgical coke production will be increased to 750,000 tonnes per annum from the present 322,000 tonnes per annum.

The production increases will be achieved through de bottlenecking and capex in all over the next 3 years for this purpose will be INR 3,000 crore.

Steel Strips to consider allotting shares to Kalimati

It is reported that a meeting of the allotment committee of Steel Strips Wheels will be held to consider and allot 1,255,856 equity shares to Kalimati Investment Company, a wholly owned subsidiary of TATA Steel.

Chandigarh based Steel Strips Wheels, a part of the Steel Strips Group, is engaged in the manufacturing of single piece steel wheel rims in the range of 10 inches to 30 inches diameters for scooters, passenger cars, utility vehicles and tractors.

India plans ultra mega hydro projects

It is reported that, following the success of coal based ultra mega power project, Indian government is now planning ultra mega hydel projects and is considering replicating the model in the hydro sector by inviting tariff based bidding for ultra mega hydro projects.

An official of the union power ministry said that “A new UMPP scheme for hydro projects may soon be announced by the power ministry. Already, a task force on hydro power set up under the directions of Prime Minister’s Office has given approval for starting UMPP for the sector and the Central Electricity Authority has formulated guidelines for implementing it.”

The UMPP scheme is currently applicable only to 4,000 MW and above thermal power plants. Under it, tariff based bidding is invited by shell companies floated by Power Finance Corporation. The proposed UMPP scheme for hydro projects would follow a similar model with PFC being designated the nodal agency responsible for forming shell companies and inviting and finalizing bids. The shell companies would also have representation from National Hydro Electric Power Corporation, CEA and the power ministry.

The first projects to be bid out under hydro UMPP scheme would be rattle with 690 MW and Kwar with 520 MW in Jammu & Kashmir, Kiru with 600 MW and Lohit with 2475 MW in Arunachal Pradesh, for which the DPRs are complete or are in advanced stage of completion. In the next phase, bids for Naba with 100 MW, Naire with 800 MW, Oju-1 with 700 MW and Oju-II with 100 MW could be invited.

India has an estimated hydro power potential of 150,000 MW, of which only 33,700 MW has been tapped. During the new plan, about 16,500 MW of hydro electric power capacity is targeted to be added.

Indian Railways freight revenue in 9 months up by 11.6% YoY

Indian Railways have generated INR 33757.87 crore of revenue earnings from freight traffic during April to December 2007 period up by 11.62% YoY as compared to INR 30242.78 crore during April to December 2006 period.

It carried 571.35 million tonnes of freight traffic during April to December 2007 period up by 8.22% YoY as compared to 527.95 million tonnes. The net tonne kilometres went up from 346259 million to 367601 million, up by 6.16% YoY.

The earnings from freight traffic during the month of December 2007 was INR 4341.47 crore up by 16.08% YoY as compared to INR 3739.92 crore during December 2006the. It carried 69.97 million tonnes of freight traffic during December 2007 up by 10.08% YoY as compared to 63.56 million tonnes. The net tonne kilometres went up from 41384 million during December 2006 to 46140 million during December 2007, up by 11.49% YoY.

Details of total earnings during December 2007 are

Volume in million tonnes
Earnings in INR crore

Essar Energy Overseas to buy 50% stake in Kenyan refinery

It is reported that Essar Energy Overseas has signed an agreement to acquire 50% stake owned by Shell Petroleum Co, Chevron Global Energy Inc and BP Africa in a Kenyan refinery, which has a capacity of processing 4 million tonnes per annum of crude a year.

The refinery, located in Mombasa, is being operated by Kenya Petroleum Refineries in which the 3 international companies together hold 50% while Kenya holds the remaining equity. Subject to certain conditions, the acquisition is expected to be completed in early 2008.

Essar plans to upgrade the refinery for producing more products at a projected investment of USD 400 to USD 450 million. The refinery's products are sold in the Kenyan market and exported to countries such as Tanzania, Uganda, Burundi and Rwanda.

Bharati Shipyard lays jack up drill rig at Dabhol Shipyard

Bharati Shipyard Limited has announced that keel laying ceremony of the self elevating jack up drill rig was held at its Dabhol Shipyard on January 11th 2008.

Mr PC Kapoor MD of Bharati Shipyard said that "We are very happy to perform the Keel Laying ceremony for the 450 feet self elevating jack up drill rig, being the first of its kind to be built in India. We are very glad that the ceremony is being performed jointly with officers from Great Offshore Limited, the owners of the rig.”

Mr Kapoor added that “The rig will be built at our Dabhol Shipyard. The construction of various parts of rig is already in progress at our Dabhol Shipyard and the other yards. This fabrication is being carried out at various yards and the fabricated parts will be transported to Dabhol where the rig will be erected. Dabhol has a very good natural draft of water which makes rig construction easier and more efficient compared to our other yards."

Indian ports need INR 105,000 crore investment in next 5 years

The working group on the port sector for the 11th Plan has estimated that a cargo handling capacity of 1.5 billion tonnes at India’s ports would require an investment of INR 105,000 crore in next 5 years.

Mr TR Baalu union minister for shipping, road transport and highways said that the non major ports would come to play an increasing role in the future as they will be expected to handle 302 million tonnes or 30% of the total estimated traffic of 1,009 million tonnes by the end of 2011-12.

He added that ministry of shipping has estimated the private sector component of the investment in major ports at INR 38,000 crore and non major ports at INR 29,000 crore.

Mr Baalu said that central government had approved the model concessions agreement for the implementation of infrastructure development projects under the public private partnership model in the major ports.

He added that some of the states including, Andhra Pradesh, Kerala, Orissa and Goa, that do not have a maritime board set up, would go in for the same by April 2008.

Mr Baalu further added that the centre is actively considering the setting up of international size shipyards, at least one each on the east and the west coast of India. He had already taken up this issue with the chief ministers of maritime states seeking concrete proposals for locating such shipyards.

Indian Railways to electrify Western corridor

It is reported that Indian Railways has decided to conduct a trial run of 40 feet containers under over head electric wire to accommodate Japanese government’s demand to have electric traction on the Western link of dedicated freight corridor. The trials would be held on a heavy haul route in Orissa.

Mr KC Jena chairman of Railway board said that “Indian Railways is in the process of procuring equipment for the trials to run double stack container trains under higher overhead wire of 7.1 metre height. We already have the cabinet approval to acquire land and conduct the basic designing work for the freight corridor project.”

Earlier, Indian Railways had planned to have the Eastern corridor on electric traction and the Western corridor on diesel traction. Western rail link would primarily serve container traffic and Railways wanted to run double stack containers without having to worry about overhead clearances.

However, Japanese International Cooperation Agency study team has stressed that the Western corridor of the dedicated rail freight corridor be electrified. The Japanese government, which is considering a soft loan for the project, had indicated that its unwillingness to finance the project if diesel traction was adopted.

CIL to decide on implementation of rehabilitation policy

SNS reported that Coal India Limited will take a decision on the implementation of national rehabilitation policy although its subsidiary Mahanadi Coalfield Limited has adopted Orissa government’s rehabilitation policy 2006.

Mr R Mohan Das director personnel of Coal India Limited said that “We are studying the national policy which contains the main concerns of the related states. It also carries most of the features of the state rehabilitation policy, 2006 of Orissa.”

Mr Das also hinted that at any time the new wage revision for coal workers would be announced as it is in an advanced stage after three sittings with the workers' trade unions. He declined to give any time limit for the declaration.

Amendment to Railways Act approved

Exim News Service reported that union cabinet has approved a proposal to amend the Railways Act to make land acquisition easier so that Indian Railways can acquire land on the same lines as facilitated for the National Highways Authority of India.

The cabinet decision clears the way for promulgating an ordinance to amend the Railways Act 1989.

Vedanta Aluminium invites EoIs for Orissa project

Vedanta Aluminium Limited has invited bids from EPC contractors having experience in design, engineering, manufacturing, erection, testing, digestion and red mud disposal for setting up various facilities on turnkey basis for alumina refinery in Orissa.

The expression of interest has been invited for settler and washer, evaporators, alumina handling etc.

It is noted that Vedanta Aluminium has commissioned the Greenfield alumina refinery at Lanjigarh in Kalahandi and is in the process of completing the alumina smelter.

India to roll out solar city scheme soon

ET reported that Indian government has finalised the draft policy on solar energy and would roll out a solar city scheme soon. The scheme would promote the non conventional source of energy in association with municipal bodies across the country.

Under the scheme, the municipal bodies should extend financial incentives to customers opting for solar energy, while MNRE will facilitate local bodies in procuring equipment at the most affordable cost. In the first phase, the centre will target about 100 cities, while the scheme will be extended to the rest of the country, after evaluating the primary stage of implementation.

Mr Muttemwar union minister of state for new and renewable energy said that the ministry has already initiated talks with the municipal corporations of Delhi, Mumbai and Pune. Talks with other municipal bodies will start once the scheme is out. He added that “It is up to the municipal bodies which have to implement the scheme effectively.”

Mr Muttemwar said that the centre is upgrading its research and development work on the promotion of renewable energy with an aim to bring down the generation cost, which is currently the main deterrent in the way of solar or hydro energy being generated on a very large scale.

Currently, the cost of producing 1 megawatt of solar power is about INR 20 crore, while for hydro, it is even higher. In sharp contrast, thermal energy, which is the most prevalent at the moment, costs only about INR 5 crore per MW.

Indian government plans to add 14,000 MW of renewable energy in the 11th Plan taking the total capacity from renewable sources to 25,000 MW from the current 11,000 MW and the proposed scheme is being seen as a move in that direction.

Vale, TATA Steel and JFE may form a slab mill JV in Brazil

Bloomberg reported that Vale may build steel mills in Brazil with TATA Steel and JFE Holdings Inc.

As per report, Vale in an e mailed statement for antitrust approval of a USD 4 billion steel mill it plans to build with China's Baosteel Group Corp cited future projects with TATA Steel and JFE.

According to a report on the Web site of the antitrust agency, known as Cade, Baosteel and Vale's mill, which will produce about 5 million tonnes of steel slabs a year would not hinder competition in Brazil because most of the output is destined for export. Cade approved the request for Vale and Baosteel to build the mill at Anchieta in Brazil.

Vale has taken minority stakes in four steel projects in Brazil as part of a plan to increase domestic demand for its iron ore. Vale, which will own more than 10% of the Baosteel plant, has made similar deals with Usinas Siderurgicas de Minas Gerais SA, Germany's ThyssenKrupp AG and a unit of ArcelorMittal.

Klöckner increases shareholding in the Swiss country operation

Klöckner & Co Aktiengesellschaft has acquired a further 20% of the shares in Debrunner Koenig Holding AG. With these additional shares, Klöckner & Co now holds 98% of all shares in the Swiss subsidiary Debrunner Koenig Holding.

In May 2007, Klöckner & Co had already increased its share in Debrunner Koenig Holding by 18% to 78%.

Dr Thomas Ludwig chairman of the management board of Klöckner & Co AG said that "By again increasing our shareholding, we have now almost fully acquired the highly profitable Swiss company Debrunner Koenig Holding. This is another major success for our growth strategy.

Together with its subsidiaries Debrunner Acifer, Koenig Feinstahl, Koenig Verbindungstechnik and Alu Menziken, Debrunner Koenig Holding AG is a leading company in the multi metal distribution, reinforcement and construction engineering, technical product and fastening engineering sectors in Switzerland, employing more than 1,700 people.

Rio Tinto’s Q4 2007 operations review

Mr Tom Albanese CEO of Rio Tinto said that "Rio Tinto has pulled out all the stops to boost production in 2007 while our safety record has continued to improve. Investment to expand capacity in recent years is paying off with record volume growth in many commodities. We are driving the business at record pace, as these strong numbers clearly show."

He added that "In 2007, we set annual production records for iron ore, bauxite, alumina, aluminium, refined gold, and refined copper on a like for like basis. With significant expansions in iron ore and aluminium and the contribution of the Alcan acquisition, which created the world's leading aluminium producer, we are set to see an acceleration of this growth in 2008. Against a background of record prices for many of our commodities and with a strong outlook for the demand for our products in the developing markets, we look forward with confidence."

Details of Rio Tinto’s fourth quarter operation are

Rio Tinto's iron ore production set a new annual record at 179 million tonnes in 2007. On an attributable basis 2007 iron ore production was 145 million tonnes, up by 9% YoY.

Fourth quarter attributable iron ore production was also a record, 11% ahead of the fourth quarter of 2006 and 7% up on the previous quarter of 2007.

The Pilbara operations continued their rapid expansion with the Hamersley mines raising production by 17% YoY as compared with the fourth quarter of 2006. At the end of December 2007 the Pilbara ports were operating at a rate of 190 million tonnes per annum.

Rio Tinto's newest iron ore mine, Hope Downs, commenced production in November 2007, three months ahead of schedule. With the first expansion already approved, it is expected to reach 30 million tonnes annual capacity in 2009.

Fourth quarter bauxite, alumina and aluminium production were at record levels, increased by 74% YoY, 133% YoY and 287% YoY respectively compared with the same quarter of 2006. This followed the Alcan acquisition and its subsequent integration with effect from 24 October 2007. On a pro forma basis, excluding the Alcan acquisition, quarterly and annual production records were set for bauxite and aluminium.

Mined copper production was 5% higher than the third quarter of 2007 primarily reflecting increased throughput at Kennecott Utah Copper but decreased by 14% compared with the same quarter of 2006, mainly due to lower grades at Kennecott Utah Copper and Northparkes.

Fourth quarter production of refined copper and refined gold rose by 65% YoY and 98% YoY respectively above the 2006 fourth quarter level.

Fourth quarter uranium production was 13% higher than the prior quarter but 14% lower than the 2006 comparative period.

Corus forms JV in Bulgaria to serve growing construction market

It is reported that Fischer Profil GmbH, part of Corus Distribution & Building Systems Division, has signed a 65:35 JV agreement with the Bulgarian construction company Horizont Ivanov to set up a new profiling centre, Corus Building Systems Bulgaria, in Pleven, Northern Bulgaria, which will offer a full range of steel profiles.

The new Joint Venture will target the strongly growing construction market in Bulgaria and in the neighboring countries. The joint strengths of the Corus experience in running Building Systems companies and Horizont Ivanov's in depth knowledge of the Bulgarian construction market provide a strong basis for serving this growing market.

The new business is expected to commence operations in the second half of 2008.

ArcelorMittal outlines plans for Gandrange and Florange

ArcelorMittal announced that it has initiated information and consultation of personnel representatives on a reorganization project for its wire rod operations at Gandrange in Lorraine area of Eastern France and in other European locations.

Its release said that “At a meeting with the Select Committee of the European Works Council in Luxembourg, the Group outlined its analysis of the business situation of its wire rod activity in northern Europe and an approach to turn around the Gandrange plant and optimize this business segment, part of the group's European long carbon steel activities. In the afternoon, information documents were handed to the local works council in Gandrange during a meeting at the site.”

It added that “The project presented to the staff representatives aims at strengthening the specialization of the currently loss making Gandrange site in the wire rod rolling processes to enhance its future prospects. This project would be part of the Group's vision for the steel industry in Lorraine, aimed at making it a profitable and sustainable industry. In a separate meeting, ArcelorMittal confirmed its commitment to the neighboring Florange, Lorraine operations of flat carbon steel and announced further investments.”

Gandrange project that was presented has two aspects
1. Development of the Wire Rod & Bar Mill, which would process billets supplied from other steel plants, in particular from Duisburg-Ruhrort in Germany and Schifflange in Luxembourg, enhancing the competitiveness of the overall wire rod business
2. Closure of the steel plant and billet mill. ArcelorMittal Gandrange intends to fully honor its social responsibility during the implementation of this reorganization project. The Group, through dialogue with employee representatives, would give priority to the relocation of employees to its other sites in particular in Florange and in Luxembourg. Every employee would be offered a solution.

Florange
1. ArcelorMittal has decided to increase the capital investment budget for Florange for 2008 by more than 60% to a total of EUR 65 million. These investments will allow to extend the viability and effectiveness of steelmaking operations of this major integrated flat carbon steel production site.

The combination of both initiatives will be clearly strengthening ArcelorMittal's presence and future prospects in the Lorraine region, in line with the company's stated commitments.

Hong Kong named world's freest economy

According to the annual Index of Economic Freedom report, Hong Kong has been ranked as the freest economy in the world for the fourteenth time in a row.

The Washington based organization put the southern Chinese territory at the top of its 2008 Index of Economic Freedom that covers 157 countries and territories, although its gap with Singapore has narrowed.

The overall score in Hong Kong has dropped by 0.3 to 90.3 out of 100 points, while that in Singapore improved by 0.2 to 87.4 points. The higher the mark the lower the level of government interference in the economy.

Hong Kong's ranking comes despite criticism that its economy is dominated by a handful of powerful family-controlled monopolies and cartels, which not only control prices of particular goods but also block market access to competitors.

US auto demand to fall in 2008

It is reported that after years of crisis, the big three US automakers face another brutal year with demand expected to dip again due to an economic downturn threatening to snuff out 2007’s timid recovery.

The world’s major automakers exhibit upcoming models and the concept cars of the future from Sunday as media previews kick off for the Detroit motor show. But the extravaganza comes amid gloomy predictions for the market.

Mr Bruce Clark an analyst at Moody's financial research group said that “It’s pretty clear that demand in the US will decline during 2008. He said at this point we are anticipating total retail shipments of about 15.7 million units. But actual shipment levels could be even lower depending on the overall state of the US economy.”

According to the firm Autodata the three US manufacturers used to hold 95% of the market but this has been chiseled to just over half as Asian firms seized 47% with Japan leading the charge. Japanese giant Toyota for the first time passed Ford in the US auto sales rankings in 2007, taking second place behind General Motors Ford was pushed back into third place, with Chrysler in fourth.

Kremikovtzi denies sale reports

Reuters reported that Bulgarian steelmaker Kremikovtzi has denied media reports that its owner, India's Global Steel Holdings Ltd, is in talks to sell it.

The plant said in a statement said that the press office is authorized to say that the information for the sale of Kremikovtzi is an attempt to manipulate the public opinion,"

Kremikovtzi noted, however, that many foreign companies are interested in buying the plant. It said "The management has said many times that many companies are interested in the key steel plant in the Balkans."

Bulgarian daily Standart recently said two Ukrainian companies and a Russian one were vying to buy the plant and that the deal was likely to be sealed by the end of January.

Singapore remains world's busiest container port

Mr Raymond Lim minister for transport of Singapore said that 2007 also saw Singapore maintain its leading position for bunker sales and total vessel calls.

Mr Tay Lim Heng CEO of Maritime & Port Authority of Singapore said that “The good results reinforce our status as a global hub port. They also reflect the successful partnership between the MPA and the industry, as Singapore develops further as an international maritime centre.” He added that 2007 could however turn out to be Singapore's last year at the top as it has only narrowly edged Shanghai into second place in terms of container throughput with the Chinese port handling 26.15 million TEUs.

Total cargo throughput at Singapore in 2007 climbed by 7.8% from 2006 levels to hit 483.4 million tonnes, which is some 80 million tonnes short of Shanghai's 560 million tonnes for the same period.

Updates on Rio Tinto performance after Alcan acquisition

Following Rio Tinto's successful acquisition of Alcan Inc in the fourth quarter of 2007, Rio Tinto will report its 2007 full year financial results inclusive of Alcan with effect from October 24th 2007.

As an interim step, Alcan's contribution to Rio Tinto's 2007 full year financial results will be reported as a separate line in the financial information by business unit. Rio Tinto's other aluminium businesses will be reported separately and in a format that is consistent with previous financial results announcements.

For 2008 and beyond, Rio Tinto intends to report Rio Tinto Alcan as three separate business units like bauxite & alumina, primary metal & engineered products. The packaging business unit will be classified for accounting purposes as an asset held for sale. As previously announced on November 26th 2007, the group is exploring options for the divestment of the Engineered Products business unit taking into account broad stakeholder interests.

Salient points of Rio Tinto operations are

Annual post tax synergies of USD 940 million are expected from the end of 2009.

Estimated USD 372 million pre tax interest cost in respect of the USD 40 billion Alcan acquisition facility for the period to December 31st 2007

Rio Tinto is continuing with the sale process for the packaging business and is exploring options for the divestment of engineered products as part of the overall USD 15 billion asset divestment target. USD 10 billion of this total is targeted for 2008

Packaging will be shown as an asset held for sale in the 2007 accounts

The approximate long-term effective tax rate on underlying earnings for Rio Tinto Alcan, before one off items and excluding the impact of foreign exchange rate movements, is expected to be 31%

This release provides some clarification on key issues relating to the modelling of Rio Tinto Alcan assets

Further analysis of the USD 940 million synergies was provided at November 26th 2007 investor seminar

Iluka completes sale of Narama coal mine interest

Iluka Resources has completed its divestment to Xstrata Coal of its 50% interest in the Narama thermal coal mine in New South Walsh.

After final completion adjustments the price was USD 54.4 million and the profit on the sale, net of book value and expenses, is to be around USD 30 million. Proceeds will be used to support Iluka's mineral sands businesses.

West Virginia coal production increased in 2007

According to preliminary data, West Virginia is on the path to registering a slight increase in coal production in 2007 compared to 2006.

Mr Dave Kessler, a state coal mining expert who closely watches production trends, estimated that when the final figure is in, it will show that production totaled about 160 million tonnes in 2007. That would be a 1% increase over the 158.8 million tons produced in 2006.

Mr Bill Raney president of the West Virginia Coal Association said that "With the increased attention on safety, capitalization of shelters, rescuers, communications systems, and an increase in fuel prices - by sustaining a product in light of all of those extraneous pressures is just an absolute compliment to the guys out there working."

Mr Kessler of state office for miners' health safety & training said that from January through mid November 2007, West Virginia mines reported producing 145 million tonnes of coal. The office, which keeps coal mining statistics, expects to issue a final 2007 production report in March 2008. He added that the production numbers have remained consistent through the months, ranging from 12 million to 15 million tonnes per month.

Mr Raney said that the preliminary 2007 production numbers are encouraging but the industry has a number of challenges, including the increased attention on safety. West Virginia mines employed more than 18,000 workers in 2007.

Design flaw called critical factor in Minnesota bridge collapse

Reuters reported that more than a dozen steel support plates suspected in a 2007 fatal bridge collapse in Minnesota were deficient in size and a routine inspection would not have uncovered the problem.

The National Transportation Safety Board will not reach a final conclusion until autumn on why the I-35 W bridge in Minneapolis collapsed into the Mississippi River, killing 13 people on August 1st 2007. But preliminary findings show 16 gusset plates, large flat steel pieces that hold load bearing columns in place, were too thin to support the weight they held.

Mr Mark Rosenker chairman of NTSB said that "During the wreckage recovery, investigators discovered that gusset plates at 8 different joint locations in the main center span were fractured.”

Safety board investigators discovered the original design process of the bridge led to a serious error in sizing some of the plates of the bridge's main skeletal structure. Investigators have not pinpointed why the apparent sizing issue occurred but suspect a calculation error, adding that a bridge inspections would not have uncovered it.

The safety board said that there was no deficiency in the quality of concrete or steel found in the Minneapolis bridge. It added that "There is no evidence to suggest that the deficiencies found in Minneapolis are widespread or even go beyond that bridge.”

About 1,000 feet of the bridge collapsed into the river during the evening rush. Vehicles plummeted into the water, killing 13 and injuring another 145.

Metso to supply coking equipment to Seadrift in the USA

Metso Minerals will supply coke calcining equipment to Seadrift Coke LP for upgrading its coke plant in Port Lavaca in Texas. The delivery will be completed during the second quarter of 2009. The value of the order is approximately EUR 8 million and it was included in Metso's fourth quarter order backlog of 2007.

The capacity of the Port Lavaca plant is currently close to 150,000 tonnes of coke per annum. Once the calcining upgrade is complete, Seadrift will have a calcining capacity well in excess of 200,000 tonnes per annum. Seadrift Coke employs some 130 people and a varying number of contract personnel.

Metso is a global engineering and technology corporation with 2006 net sales of approximately EUR 5 billion. Its more than 26,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.

Citigroup posts record USD 9.83 billion loss in Q4 of 200

It is reported that Citigroup Inc posted the biggest loss in the US bank's 196 year history as surging defaults on home loans forced it to write down the value of subprime mortgage investments by USD 18 billion.

Citigroup Inc said in a statement that the fourth quarter net loss of USD 9.83 billion as compared with a profit of USD 5.1 billion a year earlier. Citigroup also cut its dividend by 41% announced 4,200 job cuts and said it will receive USD 14.5 billion from outside investors to shore up depleted capital.

Citigroup racked up record losses as it misjudged the depth of the mortgage crisis. The write down for subprime home loans and related securities was almost double what the company expected in. The bank also said it set aside USD 4.1 billion more in the fourth quarter of 2007 to cover loan losses.

USs last week steel production increase by 9.2% YoY

US domestic raw steel production was recorded 2.050 million net tons while the capability utilization rate was 85.9% in the week ending January 12th 2008 as compared to production of 1.877 million net tons in the week ending January 12th 2007 when the capability utilization then was 78.2 %. The current week production represents a 9.2% increase from the same period in 2007.

Production for the week ending January 12th 2008 is up by1.1% from the previous week ending January 5th 2008 when production was 2.027million net tons and the rate of capability utilization was 85.0 %.

Adjusted YTD production through May 12th 2008 is 4.077 million net tons at a capability utilization rate of 85.4 %, which is 8.6 % YoY increase from the 3.754 million net tons during the same period in 2007 when the capability utilization rate was 78.2 %.

AISIs estimates are based on reports from companies representing about 75% of the USs raw steel capability.

Thai economy could grow by 5.7% in 2008 – Macquarie

According to Me Daniel McCormack strategist for regional equity markets for Macquarie Securities Asia, Thai economy could grow by 5.7% in 2008 and jump to 6.5% in 2009 due to a turnaround in private investment and consumption.

Mr McCormack said that the Bank of Thailand's steady interest rate decreases in 2007 would play a key role for the recovery of the domestic economy in 2008. He added that ''Politics is not the major issue for the economy in 2008. Monetary and economic issues will matter more. The interest rate has come down and will be simulative for the economy this year.''

Mr McCormack said that the latest economic indicators, including private investment, consumption, manufacturing, credit growth and money supply, all showed that the Thai economy had 'turned the corner. A more stable political environment following the December 23rd 2007 elections would also help boost confidence this year.

He said Thai exports were likely to slow from the torrid 17% growth posted in 2007, but not significantly as Thailand and Asian manufacturers have diversified their markets away from the US. He added that ''Exports will decelerate in the second quarter as the effect of the US slowdown starts to take hold. But a rebound in domestic consumption and private investment would trump that exports were expected to rebound and add to growth momentum in 2009. Thailand's domestic demand is on an upward trend. The region's exports will also be an upward trend and add to the economic growth momentum in 2009.''

Mr McCormack further added that ''Thailand is one among the few in the region whose economy is expected to pick up this year. It is a very defensive market. During times of uncertainty, many investors will be looking at Thailand as a safe haven.''

Greece port workers called strike against privatization plans

It is reported that strikes have been called following an announcement by Greece's new shipping minister that a global tender for operators to run Piraeus and Thessaloniki ports under a 30 year concession will be launched in the first half of January 2008.

Recently, Mr George Voulgarakis shipping minister of Greece said that it will go ahead with plans to privatize its largest commercial ports despite the strikes. He added that “The ports' development is a one way street.”

According to Mr Voulgarakis, the tender would be for management contracts for 2 of the 3 container facilities at Piraeus and for the entire container terminal in Thessaloniki. He said the tenders could be decided by June 2008. According to a Hellenic Shipping News report, parties interested in the privatization include DP World, COSCO Pacific, Maersk, Hutchison Port Holdings and ZIM lines.

Meanwhile, Mr George Nouhoutides head of Piraeus port's employees union said that “Piraeus port is a profitable business. It is the cow that provides us with milk, it cannot be handed over to private or international investors.”

It is noted that strikes led to clashes with Greek riot police as they fired tear gas to disperse some 500 dock workers at the entrance to the port of Piraeus and strikers responded by throwing stones and setting rubbish bins on fire. The series of strikes has disrupted operations Greece's 2 largest ports, Piraeus and Thessaloniki.

Panama Canal expansion in full swing

As early as the 1930s, new locks were proposed for the Panama Canal to ease congestion and to allow larger ships to pass. On October 22nd 2006, a USD 5.25 billion plan to expand and modernize the canal was approved by Panama voters. With a symbolic blast, physical work started on September 3rd 2007 as an estimated 30,000 people joined the Panamanian government and Panama Canal Authority in a groundbreaking ceremony at Paraiso Hill.

Expansions of Panama Canal, scheduled for completion by 2014, will double its capacity. Since the 1999 handover from the United States, the Panama Canal Authority has begun shifting the Canal's operations from a profit neutral utility to a market oriented business model focusing on customer service and reliability. Among 23 modernizations action points were widening of the Culebra Cut, a narrow portion of the canal, to at least 192 meters along straight stretches and 222 meters in the curves.

This initiative allows the canal to meet growing transit demands by increasing the waterway's operating capacity and allowing for more flexible traffic scheduling. It enables two Panamax vessels to transit simultaneously in either direction without compromising navigational safety. Furthermore, the Gatun Locks fire fighting system has been upgraded and a state-of-the-art simulator for enhancing the training of ACP pilots, tugboat captains, seamen and launch operators has been established in a new simulator center.

Meanwhile, plans in the pipeline for a significant expansion that would allow vessels bigger in size than the 'Panamax' ships to make use of the canal, took shape on the drawing tables in the historic administration building. In short, there will be a new lane built along the Panama Canal through the construction of a new set of locks, which will allow more traffic and longer, wider ships.

By 2011, post Panamax vessels could represent 37% of the world's container ships. Panama can't afford to let the canal miss the boat. The project will include two sets of single lane three step locks, one bypassing the Miraflores locks at the Pacific side and one adding to the Gatun Locks in between the Gatun Lake and the Atlantic Ocean, and two new navigational channels to connect the new locks to the existing channels. Deeper and wider versions of the existing shipping lanes are also needed.

An increasing number of container ships and other vessels are too big for the canal, referred to as post Panamax. The new locks will accommodate 1200 feet long post Panamax ships displacing 170,000 tons with a maximum load of 12,000 containers. The current maximum capacity is 5,000 TEUs.

WB sees Viet Nam’s economy growing at 8.2% in 2008

The World Bank has launched the Global Economic Prospects 2008, saying that Viet Nam’s economy will grow at 8.2% in 2008 and 8.3% in 2009.

The WB report, released on January 9th 2008, said that resilience in developing economies is cushioning the current slowdown in the United States, with real GDP growth for developing countries expected to ease to 7.1% in 2008, while high income countries are predicted to grow by a modest 2.2%.

As per report, GDP in East Asia and the Pacific is expected to grow at 9.7 % in 2008 and 9.6 % by 2009. The effects from the turmoil in the world’s financial centres may be small in most economies in the region.

The WB also said that developing countries, including Viet Nam, should enhance their ability to absorb technologies to ensure further economic growth in the future.

Auto makers to use sustainable plastics to reduce vehicle weight

It is reported that Sabic Innovative Plastics has teamed up with two automobile manufacturers to introduce plastics technology used to make vehicle parts that are lightweight and that use sustainable materials. Both collaborations will be featured at the North American International Auto Show, which will take place in Detroit, USA, January 19th to 27th 2008.

The first of these collaborations is with the Ford Motor Co which is set to introduce its concept automobile, the Lincoln MKT at the show. The vehicle features a number of environmentally responsible technologies, including:

According to Sabic by using high performance resins in its design, Ford has reduced the weight of the automobile by 47 kilogram without compromising safety, these weight savings implemented over mass quantities of vehicles have significant affects on reducing fuel consumption.

The Sabic plastics used to replace metal or glass in the automobile include:
1. Smart iQ, made from up cycled polyethylene terephthalate bottles, replaces metal in a number of applications
2. Xenoy iQ is used for front and rear bumper energy absorbers, the center console and liftgate inner structure;
3. Valox iQ features in the engine cover, connectors, power distribution boards and the composite hood
4 Lexan GLX polycarbonate with Exatec coating features in the roof, windshield and rear lift gate, replacing glass and reducing weight by 12.9 kilogram
5. A halogen free flame retardant, Flexible Noryl is used as a thin wire coating, reducing weight by 1.1 kilogram

The second collaboration is with Land Rover which will launch its Land Rover LRX concept car a new three-door premium cross coupé prototype at the show.

By using the polycarbonate and coating supplied by Sabic, the automobile maker was also able to provide high impact strength and ultraviolet protection for the LRX concept. The polymer glazing material is used in the A-posts, side windows, rear quarter windows, panoramic roof and backlight. Further, by incorporating glazing technologies from Exatec LLC enables the usual mast antenna to be eliminated with hidden antennas incorporated within the panoramic roof glazing.

Miner union strike hits Mexico

BNamericas reported that Mexico's mining industry practically shut down on Wednesday morning as national mining metalworkers union STMMRM walked off in protest at the labor ministry decision to declare a strike at Grupo México's Cananea copper mine illegal. The strike was scheduled to last only for the first eight hour shift and workers were expected back at their posts by midday Wednesday.

Roughly 90% of STMMRM's sections participated in Wednesday's strike, affecting national and foreign companies working in the Nafta nation, a union spokesperson said.

On January 11 Mexico's labor ministry through its federal arbitration and reconciliation council declared the strike at Cananea, which began July 30, illegal and asked workers to be back at their posts within 24 hours. Grupo México has said that most workers have returned and the mine will return to normal output in some three month.

PSM increases flat steel prices

Daily Times reported that Pakistan Steel Mills has raised its ex works prices of various steel products by PKR 500 per tonne to PKR 1,500 per tonne.

The report cited quoted some steel traders as saying that
1. Prices of various size hot rolled coils have been increased by PKR 500 to PKR 1200 up to PKR 38,300 and PKR 39,500
2. Prices of cold rolled coil have also been raised by PKR 1,000 to PKR 46,000 per tonne
3. The prices of different sized galvanized coil have been increased by PKR 500 to PKR 2,000 to PKR 50,000 and PKR 53,000

The prices are exclusive of 18.5% sales tax

The report added that prices of steel billets have soared by PKR 2,000 to PKR 2,500 to PKR 36,250 and PKR 36,750 per tonne.

China Harbor to build Ras Al-Zour Port

Arab News reported that China's Harbor Contracting and Engineering Co won a SAR 2.2 billion contract to build port facilities at Saudi Arabia's Ras Al-Zour. China Harbor has partnered with the local Rafid Group on the project to form China Harbor Engineering Arabia Company. The facilities will be finished in 2010.

The Chinese group fought off competition from Belgium's Dredging International with the local Huta Group and a JV of the Dutch Royal Boskalis Westminster with Geneva-registered Archirodon Construction (Overseas). The three groups submitted bids in July 2007 and the contract was originally expected to be awarded in August that year. However, a series of technical and commercial issues have delayed the final decision until now.

The port, which will cost USD 600 million, will serve nearby fertilizer and aluminum smelting complexes. Three berths will be built, to handle general, dry bulk and liquid cargo. The new terminal will be built based on designs made by the British engineering consultancy Halcrow and is scheduled to begin operating fully in the fourth quarter of 2009. Designed to handle 1.5 million containers annually, it will increase the port's overall capacity by 45%.

It is the second big contract win in the Kingdom for the company in recent months, and provides further evidence of the increasing influence of Chinese companies across the region. In November 2007, the group was selected to build a USD 230 million container terminal at Jeddah Islamic Port.

Iran to launch dry port in Tehran

Mr Mohammad Hossein Dajmar MD of Islamic Republic of Iran Shipping Lines said that a dry port will be built in Tehran’s Aprin region in the near future.

Mr Dajmar said that after negotiations with Ports & Shipping Organization, Islamic Republic of Iran Customs Administration and Islamic Republic of Iran Railways, the IRICA will become active in the region. He added that 50 vessels with 2.467 million tonnes of capacity will be added to the IRISL’s fleet and 5 more will join its subsidiaries’ marine.

Dry Port is a yard used to place containers or conventional bulk cargo, usually connected to a seaport by rail or road which has services like, storage, consolidation, depot, maintenance of containers and customs clearance. They may be used for shipping, receiving and distribution centers designed to relieve the congestion in increasingly busy seaports, like an inland port.

High steel prices pin down new homeowners in Saudi

Arab News reported that prices of rebar are expected to increase by SAR 300 and hinder the real estate projects in the Kingdom especially for houses belonging to middle income people.

Many real estate dealers and owners said that this increase would delay their works and would paralyze over 70,000 real estate projects. 95% of them are owned by middle income families. The majority of middle income families who received loans from Real Estate Development Fund said the surge in prices dampened their hopes.

The report cited an owner of a real estate company as saying that “It is important to import iron to increase the local supply and prevent the increase in prices. The rise in prices did not only paralyzed the projects, but also resulted in great loses for the real estate companies. The new prices have disappointed citizens as they cannot have their own houses now."

Affected people said that many would put their projects on hold because of the increase in construction prices in general.

Iran to construct separate gas pipeline to Turkey

Today's Zaman reported, in a bid to reach a final solution to recurrent gas problems with Turkey, Iran has decided to construct a new pipeline to carry its natural gas to the Turkish market.

Mr Ahmad Nurani the undersecretary for economic & commercial affairs at the Iranian Embassy in Ankara said that Iran had enough reserves to double the gas provided to Turkey. He added that “However, as the current pipeline between the 2 countries was connected to Iran's domestic natural gas network, gas flow might drop depending on weather conditions and natural gas consumption. A new pipeline dedicated to shipments to Turkey will be installed soon, so that the gas flow will not be affected from sudden changes in Iran's domestic market."

It is noted that Turkey and Iran signed a natural gas agreement in August 1996, allowing Turkey to purchase 10 billion cubic meters of natural gas per year from Iran for 25 years.

Iran to file suit against Turkmenistan for halting gas exports

Mr Kamal Daneshyar head of Iranian parliament's energy commission said that Tehran will file suit against Turkmenistan for halting gas exports to Iran. He added that Tehran can demand compensation from Ashgabat for cutting gas supplies in the midst of the recent cold snap.

Meanwhile, Iranian government spokesman Mr Gholam Hossein Elham said that the cut in Turkmen gas export to Iran was not caused by payment delay, rather gas price among other contract issues had resulted in the problem. He said the cut in Turkmenistan's gas export to Iran has left millions of people in the northern and western parts of the country without gas supplies amid a cold snap.

Mr Akbar Torkan deputy oil minister of Iran said that Ashgabat wanted to change the terms of an existing gas contract. He added that "The contract is transparent. Turkmenistan wants to cancel it and put forward new claims. Cutting off the flow of gas in the coldest days of the year is immoral."

It is noted that Turkmenistan has stopped daily deliveries of up to 23 million cubic meters to Iran, citing technical problems. However, it later demanded a higher price for its exported gas to Iran claiming Tehran's payment delays had prevented the timely repair of the damaged pipeline.

Iran had a 25 year contract running to 2024 but had signed another agreement for additional supplies since that original 25 year deal was signed. Turkmenistan wants to double the price of gas it supplies to Iran to USD 140 per 1,000 cubic meters. Iran gets about 5% of its needs from Turkmenistan and the supply disruption has caused shortages in some northern regions. The disruption has also prompted Iran to cut its own gas exports to Turkey.

Jordan Steel acquires remaining 50% of Jordanian Alliance

Jordan Steel Plc has announced that it signed a purchase agreement to acquire the remaining 50% of the share capital of Jordanian Alliance for Iron Steel Company for a total value of JOD 30 million. It is now wholly owned by Jordan Steel Plc.

India and Oman to launch USD 100 million joint investment fund

Mr Pranab Kumar Mukherjee union external affairs minister recently said that a joint investment fund planned by India and Oman with an initial seed capital of USD 100 million is expected to be launched soon.

He added that "We have already proposed a model and a team from India is to visit Muscat to finalise the details and launch the fund."

Mr Mukherjee called for closer linkages through concerted and sustained interactions between private sectors in the 2 countries. He said that the forthcoming meeting of the Oman India Joint Commission would give the final shape to the project.

Mr Mukherjee offered Indian assistance to Oman in a number of sectors. He said "We would be happy to share our capabilities and expertise with Oman in the fields of health, information technology, telecommunications, science and technology, human resource development and education." He added that India could also offer its services in training Omanis in vocational and entrepreneurial skills.

He said that Indian companies in recent years had won several contracts for projects in Oman. Some of them had entered into strategic tie ups with Omani companies for setting up projects in a number of sectors such as engineering, construction, petrochemicals, manufacturing, tourism and hospitality. He added that Indian companies have also secured oil and gas and mining concessions, while a consortium involving an Omani company had won exploration bids for oil blocs in India.

DMCC and Eco Security to develop emissions reduction projects

Dubai Multi Commodities Centre and EcoSecurities has announced the signing of a strategic alliance agreement with Dana Gas PJSC and Crescent Petroleum of Sharjah, to jointly develop emissions reduction projects in the oil and gas sector, under the Kyoto Protocol's clean development mechanism.

Under the terms of the agreement, Dana Gas and Crescent Petroleum will identify projects across their regional oil and gas operations to reduce greenhouse gas emissions and improve energy efficiency. EcoSecurities and DMCC will facilitate the development of the CDM component of these projects, and create value by trading the certified emissions reduction credits thus generated.

In addition, DMCC and EcoSecurities will collaborate with Dana Gas and Crescent Petroleum to jointly identify opportunities to work with other energy companies and governments throughout the region, to reduce their greenhouse gas emissions.

Mr Ahmed Bin Sulayem executive chairman of DMCC said that “Emissions from the oil and gas sector form the largest part of the Middle East's carbon footprint, and DMCC is delighted to partner with Dana Gas and Crescent Petroleum to reduce this impact. Such cooperation puts Dubai, Sharjah and the UAE at the forefront of the regional development and trading of carbon credits.”

Mr Adrian Fernando COO of EcoSecurities said that “This strategic alliance will pioneer the development of CDM in one of the world's most carbon intensive industries. It will encourage sustainability and efficiency throughout operations across the region.”

Mr Rashid Saif Al Jarwan GM of Dana Gas said that “Since its establishment, Dana Gas has aimed to conduct its operations to international standards, and we involved the World Bank Group in devising our corporate environmental policies. This partnership in the area of CDM is the logical next step, applying market techniques to enhance the environmental benefits of major energy projects in our region.”

It is noted that in June 2007, DMCC and EcoSecurities signed a MoU to promote CDM projects and generate emission reduction credits within the UAE, while raising the profile of Dubai as a regional centre for carbon emission reductions and trading.

QP inks MoU with Gaz de France for joint operations

Mr Laurence Hezard CEO of Gaz de France said that it has signed a MoU with Qatar Petroleum for joint international operations.

Me Hezard said that the MoU encompasses a broad spectrum of activities and the 2 companies have already identified potential projects in Europe, Asia and the Gulf. He added that Gaz de France, which inaugurated its Qatari branch, would consider Qatar as its focal point in the Gulf area.

US DOC imposes AD on steel nail import from China and UAE

The US Department of Commerce announced its affirmative preliminary determinations in the antidumping duty investigations on imports of steel nails from the People’s Republic of China and the United Arab Emirates.

US DOC determined that Chinese and UAE producers & exporters sold certain steel nails in the United States at 20.77% to 118.04% and 4.47% less than fair value respectively. As a result of these preliminary determinations, DOC will instruct US Customs and Border Protection to collect a cash deposit or bond based on the preliminary rates. US DOC is scheduled to issue its final determinations in these investigations in June 2008.

Mr David Spooner assistant secretary for import administration said “Price discrimination hurts American manufacturers. The Administration is committed to aggressively enforcing America's trade remedy laws in order to achieve strong and fair relationship s with our trading partners.”

The merchandise covered by these investigations is certain steel nails, having a shaft length of up to 12 inches. Certain steel nails are produced from various grades of steel and principally used to fasten two pieces of material, such as wood or other solid building material. Nails that are subject to these investigations have a variety of finishes, heads, shanks, points, and sizes. Steel nails are classifiable under the Harmonized Tariff System of the United States under the HTSUS subheadings: 7317.00.55, 7317.00.65, and 7317.00.75.

These investigations exclude roofing nails of any length or diameter, either collated or in bulk, and whether or not galvanized. Also excluded are corrugated nails; thumbtacks, currently classified under HTSUS 7317.00.10; fasteners suited for powder actuated hand tools, not threaded and threaded, which are classified under HTSUS subheadings 7317.00.20 and 7317.00.30; and certain brads and finish nails.

Case Calendar
Petition Filed May 29th 2007
DOC Initiation Date July 9th 2007
ITC Preliminary Determination July 30th 2007
DOC Preliminary Determination January 15th 2008
DOC Final Determination June 5th 2008 (Estimate)
ITC Final Determination* July 21st 2008 (Estimate)
Issuance of Order** July 28th 2008 (Estimate)

The petitioners for these investigations are Mid Continent Nail Corporation, Davis Wire Corporation, Gerdau Ameristeel Corporation’s Atlas Steel & Wire Division, Maze Nails a division of WH Maze Company, Treasure Coast Fasteners Inc and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

Import statistics

Value in USD million
Volume in tonnes

Baosteel 2007 net profit surge by 50% YoY

It is reported that Shanghai Baosteel Group Co.'s net profit for 2007 totaled CNY 33.92 billion up by 50% from CNY 22.58 billion a year earlier.

Baosteel Group Co's spokesman said that its sales jump 20.6% to 28 million tonnes.

Shanghai Baosteel is the parent company of Shanghai listed Baoshan Iron & Steel Co.

Chinese remain net coal exporter in 2007

It is reported that China's total coal imports in 2007 amounted to 51.02 million tonnes up by 34% YoY due to swelling domestic demand up 34%. China also exported 53.17 million tonnes of coal resulting in net exports of 2.15 million tonnes in 2007.

According to China Customs, the government tightens control on mine safety, leading to dropping coal capacity whilst domestic demand for coal keeps strong upswings; on the other hand import cost has fallen as import tariff is adjusted downward.

Mr Donovan Huang a Shanghai based coal analyst with Nomura Securities said that ''It is expected. 'The underlying trend is what's important, we are seeing a sharp drop in exports.''

He expects China to be a net importer of 15 million tons of coal in 2008.

Its net coal exports once reached 82.931 million tonnes in 2003 yet it turned to a net importer in the first quarter of last year.

NDRC makes detailed plans for obsolete capacity elimination

It is reported that China’s National Development and Reform Commission has called for detailed plans for obsolete steel capacity elimination.

According to the requirements by NDRC, the first round of the 10 provinces & municipalities and the second round of the 18 provinces & municipalities should hand in the work accomplished and issue certificates for outdated equipments that have been washed out.

Besides, provinces who eye some obsolete capacities beyond the written commitments, i.e. Hebei, Henan, Shanxi, Shandong, Xinjiang, are asked to carry out the second round of elimination and submit detailed plans.

Written commitments that have already signed imply China will shut down and weed out outdated steelmaking capacity and iron making capacity of 77.76 million tonnes and 89.17 million tonnes respectively by 2010 with 38.2 million tonnes and 37.06 million tonnes to be closed down by the end of this year. The campaign covers 573 enterprises.

Mr Shao Wen an analyst from Mysteel Research Institute said that obsolete steel capacity elimination will speed up in this year. With surging cost for raw materials and remarkable adjustment of export tariffs, the cost and price advantages of obsolete capacity is now decreasing. The campaign may come to an end successfully in advance.

Banks' reserve ratio in China raised to 15%

It is reported that China’s central bank has raised commercial banks' reserve requirement ratio, a proportion of money they must hold in reserve, by 0.5 percentage point, the first time in 2008. It is the 11th hike since the start of 2007 and, effective from January 25th 2008, will push up the ratio to 15%.

The People's Bank of China said in a statement that the move is to implement the nation's policy of strengthening macroeconomic measures, tightening liquidity in the banking system and reining in excessive money and credit growth.

Chinese government pledged at the Central Economic Work Conference early last month that it would implement tightening measures to prevent the economy from overheating and structural price rises from evolving into entrenched inflation.

As the economy is expected to expand by about 11.5% for the whole of last year, excess liquidity has become a concern for policymakers as the trade surplus continued to expand, although the growth is slowing.

China plans for second West East gas pipeline

Xinhua reported that China has laid out a primary plan for its second pipeline of the West-East natural gas transmission project. According to the plan, construction of the 8,794 kilometer gas pipeline, which consists of one major line and eight sub lines, will involve an investment of approximately CNY 143.5 billion (USD 19.8 billion).

The major line will extend 4,945 kilometers running from Khorgos in the northwestern Xinjiang Uygur Autonomous Region to Guangzhou, capital of south Guangdong Province. It would carry natural gas from central Asian countries and Xinjiang to the economically prosperous but energy thirsty eastern and southern China areas, including Shanghai and Guangdong Province.

Construction of the pipeline will begin this year and it will go into operation in 2010. The pipeline would pass through 13 Chinese regions.

Chinese HDG export price picks up

It is reported that hot dipped galvanized coil prices on Chinese domestic market have been improving recently. This is also the case with export offers despite drop in tonnages.

The rise in domestic market prices has been driving up the export offer. On Shanghai market, 1.0mm HDG by Anshan Steel is being quoted at CNY 5550 per tonne up by CNY 100 per tonne from early January. 0.5mm material by private steel mills goes at CNY 5880 per tonne an increase of CNY 80 per tonne from the level on January 2nd.

In the short term, 1.0 HDG by Anshan Steel is going to approach CNY 5600 per tonne in Shanghai which we have already forecast several months ago when price was above CNY 5200 per tonne. If price for 1.0 HDG could top CNY 5600 per tonne, the next target will be CNY 6000 per tonne. Otherwise, there would be downward corrections.

Export offers have also been raised accordingly to reflect the increase in local prices. Quotations for 1.0 HDG are prevailing at USD 740 per tonne to USD 750 per tonne FOB which compares with USD 730 per tonne FOB in last two weeks.

POSCO to invest USD 5 million in China car parts plant

Reuters reported that POSCO’s units will invest USD 2.5 million in a car parts plant in China, marking the South Korean steel maker's entry into the car parts business.

A spokesman said the units will set up a joint venture with Austem a South Korean car parts maker to produce body panels and chassis. POSCO units will hold a stake of 19.9% in the company and Austem will have 80.1%.

POSCO is expected to produce the parts early in 2009 and supply them to Shanghai GM, General Motors Corp venture with Shanghai Automotive Co.

Chonggang to exploit of Wushan iron ore mine

It is reported by media in the city of Chongqing that the government in the county of Wushan has recently signed investment agreement with Chongqing Iron & Steel Group Co, Chongqing Huitong Mining Corporation and Chongqing Zhongliangshan Coal Electric Co Ltd.

These 3 companies will invest CNY 1.4 billion in exploiting Wushan Taohua iron ore mine. Chonggang Group would be in a leading position in the project.

Mr You Xiao’an the secretary of the president of Chonggang noted that they are not clear of the development of the project. However, he believed that it would be benefit in reducing the purchase cost of iron ore.

As per report the reserves of iron ore in Taohua diggings is around 150 million tonnes. Together with diggings in the west of province Hubei, the reserves of iron ores in the whole diggings should be as much as 470 million tonnes. At present, they have finished the exploitation of the mine and the development is supposed to start in this year. It is expected that it could produce 1.5 million tonnes of pellets with a value of CNY 1 billion within five years.

Due to the location and the lack of iron ore resources in Chongqing, Chonggang depends much on iron ore import. Now the quantity of imported iron ores takes about 75% in total iron ore input in Chonggang. Because of higher price of imported iron ore and international ocean freight, Chonggang Group anxiously hopes to enlarge the purchase of domestic iron ores and to strengthen the exploitation of domestic mines.

Philippines nickel ore shipments to China declines

Bloomberg reported that Philippines nickel ore shipments to China nearly halved in December as prices of refined nickel dropped, reducing the appeal of the cheaper alternative raw material.

According to Bureau of Customs data obtained by Bloomberg News that shipments fell 3.9% in November. Exports from the southern Philippines which accounted for more than 90% of the nation's shipments in 2006, dropped to 148,158 tonnes in December, from 254,600 tonnes a year earlier.

Philippines is China's biggest supplier of low grade nickel ore, which can be processed into pig iron and used instead of refined metal to strengthen stainless steel.

Jilin Tonggang inks iron ore agreement with IMX

It is reported that Jilin Tonggang mining company and Australian IMX Resource have signed strategic cooperation agreement in Changchun city on January 15th 2008.

As per reports, IMX resources company agreed to issue additional shares to make Tonggang mining company hold 9.99% stake of IMX resources company. Tonggang mining company agreed to construct mill run factory in china, to purchase the iron ore which are produced by IMX resources’CairnHill project. The project can produce about 1.2 million tonnes to 1.4 million tons of ore every year.

The successful cooperation of the project is a major breakthrough for Tonggang group and Jilin province, it marks that Tonggang group has entered into the Australian resources market, successfully takes the first step in the development of overseas resources.

Shanxi Lu'an to buy Shanxi Zuoquan Jiaxin Energy Co

Chinese coal company Shanxi Lu'an Environmental Energy Development Co Ltd has announced that it will pay more than CNY 158.5284 million for 68% stake in Shanxi Zuoquan Jiaxin Energy Co Ltd.

Shanxi Lu'an Environmental Energy Development Co Ltd located in Zuoquan County, eastern part of the coal rich Shanxi Province, owns two coalmines with combined recoverable reserves of 48.84 million tonnes of lean coal and is capable of annually producing 450,000 tonnes. Registered CNY 20.6 million in capital, the company is preliminary evaluated to have total assets of CNY 438.72 million, liabilities of CNY 205.59 million and net assets of CNY 233.13 million.

The buyer plans to regroup the target company after the deal, in order to enlarge the latter's annual production capacity to 1.2 million tonnes in the future. In addition, Shanxi Lu'an plans to buy a coal company from its major shareholder for CNY 1.90278 billion and enlarge its stake in a Shanxi coal company to 51%.

Coal shortage in China likely to continue

It is reported that China, the world's largest coal consuming nation, used more coal than it produced in 2007 and will stay short through at least 2010.

Mr Wu Chenghou executive director of the Coal Sale and Transportation Association of China said China's demand for coal is expected to rise to 2.76 billion tonnes in 2008 from 2.62 billion tonnes in 2007.

Mr Wu estimated that China produced 2.58 billion tonnes of coal in 2007, slightly above an estimate of 2.52 billion tonnes issued by the State Administration of Work Safety. He did not comment on whether the country had drawn down coal stocks in 2007 to remain a net exporter, despite producing less than it consumed. China has not yet issued official output data for 2007 and often revises that figure several times.

Mr Wu at an industry conference said that by 2010, China's coal consumption will reach 3.06 billion in 2010 up 10% compared with last year more than will be satisfied by domestic production of between 2.9 billion and 3 billion tonnes. He said Coal output in 2008 could be reduced by a number of factors, including a crackdown on mines that are unsafe, polluting or wasteful of energy.

Gengsheng Minerals to supply refractory to Aoyu and Xinjiang

China Gengsheng Minerals Inc, a leading manufacturer in China of heat resistant and energy saving industrial materials, has announced that it has signed new supply contracts with Aoyu Iron and Steel Co Ltd and Xinjiang Bayi Iron and Steel Co.

Gengsheng Minerals Inc has agreed to supply 1 million tonnes of comprehensive refractories for steel ladle linings to Aoyu and to provide Xinjiang Bayi with 6 million tonnes of refractory castables for troughs and runners in blast furnaces for the term of their respective contracts. The Aoyu agreement will expire on December 25th 2008 and the Xinjiang Bayi agreement will expire on November 12th 2008. Based on the Company's projected output for the term of the contracts, the Company estimates the contracts to be worth USD 1.3 million and USD 400,000 in revenues, respectively.

Mr Shunqing Zhang chairman, CEO & president of Gengsheng said that "We are pleased to add Aoyu and Xinjiang Bayi as new customers. Aoyu and Xinjiang Bayi are both on the forefront of the campaign for cost-cutting and energy saving in the Chinese steel industry. We believe that our refractory products are uniquely positioned to fulfill the growing needs of steel factories to produce more durable products with higher energy efficiency."

Aoyu is the 38th largest steel manufacturer in China by capacity and one of the top steel makers in Hebei Province. It specializes in the production of diversified steel and iron products. Aoyu's parent company, Aowei Group is also known for its specialty in metallurgical technology as well as for its diverse range of operations from manufacturing steel and iron to international trade.

Xinjiang Bayi is a majority owned subsidiary of the Baosteel Group, China's largest steel manufacturer by output and one of the most profitable steel enterprises in the world with an annual production capacity of over 20 million tonnes. Xinjiang Bayi is the largest iron and steel company in China's Xinjiang Autonomous Region. It produced 2.84 million tonnes of crude steel last year and held over 75% of the market share in Xinjiang. The Baosteel Group plans to make use of Xinjiang Bayi's geographical location in China to further exploit the potential steel consumption in Asia.

China Gengsheng Minerals Inc founded in 1986 and based in China's Henan province develops, manufactures and markets a broad range of mineral based, heat-resistant products, including monolithic refractories, refractory bricks, industrial ceramics and fracture proppants. Using customized solutions, Gengsheng's products are widely used in the iron and steel industry, such as steel making furnaces, industrial kilns and other high temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy such as oil, gas and electricity.

Mitsubishi and Changfeng to form auto JV in China

It is reported that Mitsubishi Motors Corp will set up an auto making venture in China with Hunan Changfeng Motors Co due to rising demand for sport utility vehicles in the world's second largest auto market.

Mr Li Jianxin Chairman of Changfeng in an interview at the Detroit motor show recently said that "Both Changfeng and Mitsubishi will gain. Mitsubishi will be able to sell more vehicles in China, while we can tap their management and technology to help our expansion in other markets."

Mr Wang Liusheng an analyst with China Merchants Securities Co in Shenzhen said "Having a venture like that will help Mitsubishi sell more vehicles in China Changfeng will be able to add more models in its lineup."

China Strategic to acquire coal mines in Inner Mongolia

China Strategic Holdings Ltd has announced that its unit Uni-Dragon International Ltd has agreed to acquire two coal mines in China's Inner Mongolia region from China Railway Group Ltd.

Under the agreement, China Railway will sell at least part of Xiao Bei Yang Mining Co Ltd and not less than 20% of Mang Lai Mining Co Ltd as well as its interests in other mining and railway companies in Inner Mongolia, to China Strategic.

China Strategic will pay at least 50% of the purchase price in cash, while the remainder will be satisfied by an issue of China Strategic shares.

The consideration amount is yet to be fixed, while the number of consideration shares will be determined based on the average closing price of the stock for a period of 12 months.

Fosun Group to invest at least CNY 500 million in Hainan Steel

It is reported that Fosun Group is planning to fund at least CNY 500 million to strengthen exploration of iron ore, gold mine, zirconium mine, etc and also the upper and downstream sectors in 2008.

Mr Guo Guangchang chairman of Fosun Group said that “Last year, he successfully regrouped Hainan Steel, out of special feeling for the place. Smooth transition and organized development can describe the regrouped company. Having reformed, Hainan Steel shows more vitality.”

Ms Tymoshenko endorses Kryvorizhstal privatization as successful

Ukrainian News Agency reported that Ms Yulia Tymoshenko prime minister of Ukraine has said that Arcelor Mittal Kryvyi Rih is successfully fulfilling the investment program it undertook during the privatization sale. She announced this in her opening statement at a recent cabinet meeting.

Ms Tymoshenko said that she had a meeting on January 15th 2007 to discuss the matter. She said "I can tell you that Kryvorizhstal has significantly increased production volumes and has already invested around UAH 800 million in the enterprise.

Ms Tymoshenko added that the mill also raised wages to its employees and that it observes all environmental requirements stipulated in its investment program. She added that "And the budget receives a UAH 1 million higher revenue from this enterprise than it was receiving before its privatization.

She described the sale of Kryvorizhstal as an example of open and successful privatization.

IUD to buy coking coal from Canada and US

Ukrainian News Agency reported that The Industrial Union of Donbass intends to buy 2 million tonnes of coking coal from Canada and the United States in 2008.

Mr Anatolii Starovoit GD of the Ukrkoks Association, said this at a balance meeting in Dnipropetrovsk. He said “There are contracts of the Industrial Union of Donbass for 2 million tons of Canadian and American coal.

He emphasized that thus Ukrainian metal industry is trying to replace the deficit of Russian coking coal. Mr Starovoit added that one should not await a great influx of coking coal from Russia due to the EvrazHolding company’s purchase of three coke ovens belonging to the PrivatBank Group. He said “The sale of the plants does not yet stand to mean that coal will start flowing there.” Thus, in the opinion of Mr Starovoit, EvrazHolding does not have a great volume of qualitative coal for supply to Ukrainian cokeries.

Evraz Group 2007 steel output up by 1.4% YoY

Evraz Group announced its Q4 and financial year 2007 operational results. Its crude steel production in 2007 has increased by 1.4% YoY to 16.3 million tonnes as compared to 16.1 million tonnes in 2006. Evraz said that pig iron output dropped by 1.4% YoY to 12.5 million tonnes in 2007, while rolled product output stood at 15.2 million tonnes up by 5.3% YoY.

Iron ore concentrate mining in 2007 has increased by 38.9% YoY to 3.5 million tonnes from 2.5 million tonnes in 2006, while iron ore agglomerates production has declined by 8.9% YoY to 7.7 million in 2007 from 8.5 million tonnes in 2006. Coking coal output increased by more than 10 times to 7.5 million tonnes, while vanadium mining in 2007 has increased by 0.8% YoY to 11.7 million tonnes as compared 2006.

Product wise results for steel segment are as under

In ‘000 tonnes

The results for steel operations in its areas of operations are as under

In ‘000 tonnes

In ‘000 tonnes

In ‘000 tonnes

In ‘000 tonnes

The results for Evraz’s mining division are as under

In ‘000 tonnes

The results for vanadium business are as under

In ‘000 tonnes

In ‘000 tonnes

In ‘000 tonnes

Evraz Group SA is one of Russia’s largest vertically integrated steel and mining businesses. Evraz Group produced 16.1 million tonnes of crude steel in 2006. Evraz Groups principal assets include 3 of the leading steel plants in Russia namely Nizhny Tagil in the Urals region and West Siberian and Novokuznetsk in Siberia as well as Palini Bertoli in Italy, Vitkovice Steel in the Czech Republic and Evraz Oregon Steel Mills headquartered in the USA.

Coal production at Kuzbass in 2007 cross 180 million tonnes

FIS reported that in December 2007, 7.1 million tonnes of coal was extracted by underground methods and 8.7 million tonnes by open pit methods.

In 2007, total production amounted to 181.76 million tonnes, growing by 7.4 million tonnes as compared with 2006.

The largest coal producers were Managing Company Kuzbassrazrezugol OJSC and Raspadskaya Coal Company CJSC.

Russia's total coal production in 2007 was equal to 313.4 million tonnes.

OMK Almetievsk shipped 8% more pipes in 2007

It is reported that in 2007, Almetievsk Pipe Plant, member of United Metallurgical Company, produced 138,516 tonnes of pipes of different kinds and 44,661 tonnes of pipes with external polyethylene coating, posting a growth by 12% and 3%, respectively, as compared with 2006.

The dispatch of the pipes of different sorts was 169,034 tonnes in 2007, considering 43,983 tonnes of pipes with outside polyethylene coating, it is relatively by 8% and 3% more than the indexes of 2006.

The United Metallurgical Company is one of the largest Russian pipe, railway wheel and other metal product producers. United Metallurgical Company comprises six large enterprises of the metallurgical industry. The United Metallurgical Company's Pipe Division comprises Russia's major pipe producers: Vyksa Steel Works in Nizhny Novgorod region, Almetyevsk Pipe Plant in the Republic of Tatarstan and Trubodetal in Chelyabinsk region. The United Metallurgical Company's Metallurgical Division OMK's Metallurgical Division comprises Chusovoy Metallurgical Works in Perm Territory, Gubakha Coke in Perm Territory and Shchelkovo Metallurgical Works in Moscow Region.

TMK share holders approve result of EGM

TMK announced that its shareholders duly approved all the resolutions proposed at the Extraordinary General Meeting of Shareholders which took place on December 25th 2007 in the form of a postal vote.

The following were approved by shareholders

1. Decision to approve interim dividends for the first January to September 2007 of RUB 3.63 per share. A total of RUB 3,168,993,630 will be paid out as dividend by February 24th 2008.

2. Proposal to amend the Regulations on the Management Board.

3. Decision to approve transactions regarding loan agreements between OAO TMK and its subsidiaries, associated with the financing of TMK’s Strategic Investment Program and the restructuring of the company’s credit portfolio and of its subsidiaries. Approval of OAO TMK’s guarantees for its subsidiary, Seversky Tube Works with respect to a loan from France's Société Générale to partially finance the acquisition of a Fine Quality Mill from the Danieli Corporation.

Vyksa Steel 2007 production of tubes and wheels up by 11% YoY

UMC press service reported that in 2007 Vyksa Steel Works produced 1.707 million tonnes of tubes of different range exceeding the output in 2006 by 11%. In 2007 the works produced 944,000 tonnes of pipes which is 12% more than in 2006.

In 2007 wheel rolling plant of Vyksa Steel Works produced 820,680 wheels against 805,379 wheels in 2006.

In December 2007 the works produced 127,150 tonnes of tubes including 68,400 tonnes of pipes and 75,020 railway car wheels.

SUEK starts production of semi coke at Beryozovsky Pit

FIS reported that the monthly production of semi coke at Beryozovsky pit will total 300 tonnes. Note that in 2007 SUEK produced 1,500 tonnes of semi coke and increased investments into the project to boost production at Beryozovsky pit twice.

In 2007 semi coke was supplied to Evrazruda OJSC, Sredneuralsky Metallurgical Plant and Lipetsk research institute of metallurgy ecological problems.

Zorlu to increase power plant investments in Russia

According to a filing with the Istanbul Stock Exchange that Zorlu Enerji, a Turkish power generator, will boost investment in two Russian power plants by USD 400 million to increase capacity.

Zorlu Enerji is already spending about USD 700 million on the two power stations, which will have a production capacity of 170 megawatts each when they begin generating electricity in the fourth quarter. The additional USD 400 million investments to be made from 2009 will double the plants' capacity to a combined 680 megawatts. The power stations are located near Moscow.

RZD to increase freight turnover by 4.3% in 2008

FIS reported that in 2008, RZHd OJSC will start implementation of the financial plan and investment program for 2008 to 2010 as approved by the Russian Government on November 15th 2007.

According to Mr Vladimir Yalunin president of RZhD that freight turnover is to be increased by 4.3% in 2008, passenger turnover by 3%. The investment program envisages the financing in amount of RUB 405 billion, 1.5 times more than in 2007.

Priority tasks are improving technical and economic indicators through all round optimization of the management of production activities, accelerated modernization of infrastructure and rolling stock, strengthening of the company's positions in the national and world markets.