January, 20 2008
RINL to increase capacity to 16 million tonnes by 2020
As per media reports, Rashtriya Ispat Nigam Limited plans to ramp up its liquid steel production capacity to 16 million tonnes per annum by 2020. The reports cited Mr PK Bishnoi CMD of RINL as saying that it is a must to ensure sustained profitability.
Mr Bishnoi told newsmen that RINL is in possession of land that would be required for expansion of capacity. He added that “Some steel plants are not able to come up owing to non availability of land. That’s not the case with us and we have enough land to meet the requirements of our expansion plans. The government, too, has declared that iron ore would be made available to all steel plants that require it.”
RINL is already executing plans to augment its steel capacity from current 3.5 million tonnes per annum at 6.3 million tonnes per annum by February 2010 at an estimated investment of INR 10,000 crores to INR 12,000 crore.
Mr Bishnoi said that “Following repairs and optimization of the capacity of the blast furnaces at an additional investment of INR 1,000 crore, the capacity of the blast furnaces would go up by 1 million tonne per annum. As such, by end 2010, RINL’s liquid steel capacity would go up to 7.3 million tonnes per annum.”
SAIL RSP wins Golden Peacock Innovation Award for 2007
SNS reported that SAIL Rourkela Steel Plant has been awarded the prestigious Golden Peacock Innovation Award for the year 2007 for developing innovative technologies for environmental protection.
The award was presented by Dr AR Kidwai governor of Haryana on January 12th 2008 to Dr BN Das GM of RSP.
The award is given by the Institute of Directors, World Environment Council and a well known international NGO which works for environment protection. The high level award selection committee was headed by Justice Mr PN Bhagwati former chief Justice of India and chairman of Golden Peacock Awards Committee.
INSDAG to set up model steel villages in Vizag for RINL
BS reported that Rashtriya Ispat Nigam Limited is planning to set up model steel villages in and around the township of Vizag Steel Plant.
The initiative, being spearheaded by Institute for Steel Development and Growth, promoted jointly by the steel ministry and domestic producers, aims to raise awareness and demand for steel from rural areas.
Mr RKP Singh director general of INSDAG said that “The first such village is ready and will have a cluster of single storey houses, a school building, health centre, a bus shelter and a panchayat meeting hall.”
India to enhance mining cooperation with Australia
Mr Sis Ram Ola union minister of mines has recently met Australian delegation, led by Mr Simon Crean minister for trade of Australia, to discuss enhancing bilateral co operation in mining sector.
Mo Ola said that mining industries of both countries are working together to promote mineral trade and investment between India and Australia. India and Australia established a joint working group on energy and minerals in the year 2000 for enhancing bilateral co operation in the energy and mineral sectors.
India has evinced interest in Australia’s administration of their mining regime, procedures and mining practices, mechanized large scale mining operations and handling arrangements, state of the art technology adopted for open cast mining, expertise in the areas of exploration, mining and environment protection and environmental management and practices adopted in Australia’s mining sector.
India looks forward to Australia both in terms of foreign direct investment and the superior mining technology. The potential areas for investment in mining are iron ore, bauxite, chromites, barites, china clay, potash and granite.
Australia’s mining industry has always been reckoned as one of the best in the world, in terms of mineral production, the technology used and the use of environmental protection measures in the mining sector.
HZL lowers zinc prices by 0.86%
Hindustan Zinc Limited has lowered the price of zinc by INR 900 or 0.86% to INR 104,300 (USD 2,654) per tonne effective immediately.
HZL also reduced the price of lead by IBR 1,000 or 0.85% to INR 116,300 per tonne.
Indian Railway hikes demurrage, wharfage and stabling charges
It is reported that railway board has announced upward revisions of demurrage charges, stabling charge and wharfage charges. The revised rates will come into force from February 1st 2008.
The demurrage charge will be INR 100 per eight wheeled wagon per hour for all users. At present there are two slabs like INR 50 per for steel plants and INR 75 for others and these rates came into force from December 2006.
The stabling charge has been hiked from the present INR 200 to INR 300 per wagon per day or part of a day from the time of arrival to the time of removal. The present stabling charge of INR 200 per wagon per day came into force from December 2006.
There are 3 slabs of wharfage charges and all of them have been hiked. Thus the wharfage charge for group I customers have been raised to INR 100 per wagon from INR 60 up to 24 hours and INR 90 for more than 24 hours. The wharfage for group II customers has been raised to INR 75 from INR 40 and INR 60 respectively and for group III customers using less than seven rakes to INR 50 from INR 10 and INR 15 respectively. The present rates came into force from April 2007.
New regulations on dead rent for mining operations likely
BS reported that union government has proposed to introduce new regulations for mining operations to penalize companies delaying development of mines by levying higher rent on the leasehold area. The proposal is part of new royalty and rent structure suggested by the ministry of mines in a note to the cabinet.
The new proposal aims to ensure timely development of mines by fixing milestone and increasing the quantum of dead rent. The dead rent is levied in lieu of royalty for the period in which mines remain in operational or do not yield metals or mineral ore. As per the cabinet note, the rates of dead rent is proposed to be almost doubled for a delay of two years by the lease holder in developing the mine from the date of getting the mining lease. The increase would be over 150% for delay of 5 years or more.
At present, the rate of dead rent applicable for lease granted for low value minerals like iron ore is INR 100 per hectare for first 2 years of lease and INR 400 per hectare from the third year onwards. The rent increases 2 times of the specified rates as for low value minerals for medium value minerals like chromite, manganese ore, rock phosphate, magnesite etc, 3 times for high value minerals like agate, gem, garnet and 4 times for precious metals and stones like gold, silver, diamond, ruby, sapphire etc.
Under the new structure, dead rent would change to a rent of INR 200 per hectare from second year of lease for period when mine remains an idle holding, INR 500 hectare for third and fourth year of delay and INR 1,000 per hectare from fifth year onwards for low value minerals. The same rate structure would increase by two times, three times and four times for medium value minerals, high value minerals and precious metals, respectively.
A government official said that “The increase in rate of dead rent would be a big disincentive for companies who get the mining lease but delay in developing the mining areas. As mining activities span over several thousand or at times lakh hectare, hike in dead rent would force companies to develop mines quickly.”
CESC plans to set up thermal plants at Haldia
CESC Limited has firmed up plans to set up a 2,000 MW capacity thermal power plant at Haldia in 3 successive phases, with implementation of the first phase of 600 MW at cost of INR 2,400 crore.
The thermal power plant would be set up at Baneswar Chawk near Jhikurkhali in East Mednipur district of West Bengal. The first phase of the power plant would comprise two units of 300 MW capacity each. This would be followed by the implementation of Phase II and III of the project making a total of 2,000 MW.
The estimated annual demand of coal for the first phase has been pegged at 2.7 million tonnes annually and the union ministry of coal has provided for coal linkages for the first phase of the project. Preliminary work on the infrastructure for the project has already begun and power generation is expected to commence by the middle of 2011.
Indo Nepal transmission line construction to begin in January
It is reported that the construction of transmission line between Nepal and India will start within this year and Nepal Electricity Authority and Indian Infrastructure Leasing & Financial Services have started discussion about transmission line construction.
In the first phase, the contract for line between Dhalkebar in Nepal and Mujaffarpur in India will be awarded in January 2008.
Once the transmission line is built, power can be transferred from one country to another. It is expected to help in bringing power to reduce load shedding in Nepal and in the long term to export power to India. Likewise, power generated from hydropower projects like Arun III and Upper Karnali will also be exported through this line.
Bhutan may allow 100% Indian FDI in hydro power
BS reported that Bhutan is considering allowing 100% foreign direct investment by Indian companies in hydel power space, which is a departure from the maximum 70% permitted in any sector at present.
Mr Sunil Kant Munjal former president of CII said that Bhutan has identified 6 to 10 hydro projects and has sought participation from Indian companies for their development.
Mr Munjal said that a task force has been constituted by CII to identify potential areas of business between India and Bhutan. Also, two joint study groups would be constituted between India and Indonesia and India and Australia for bilateral free trade agreements.
India has provided assistance to Bhutan in setting up Chukka, Tala and Kurichhu hydel power projects and their surplus power of about 1,400 MW is being sold to India. Another project, Punatasangchhu I, is also being set up with Indian assistance.
Hydro power accounts for around 30% of Bhutan’s exports to India. India had agreed to off take at least 5,000 MW power from Bhutan by 2020 under an agreement signed between the 2 countries in 2006.
PFC net profit up by 37.7% YoY for Q3 of 2007
Power Finance Corporation Limited has announced the following unaudited results for the October to December 2007 quarter
It has posted a net profit of INR 3204.90 million for October to December 2007 quarter up by 37.7% YoY as compared to INR 2326.58 million in October to December 2006 quarter. Total Income has increased from INR 9543.27 million to INR 12997.92 million up by 36.2% YoY.
India to rebuild Sittwe Port in Myanmar
Mr Jairam Ramesh union minister of state for commerce announced that India would rebuild Sittwe port in Myanmar at a cost of USD 120 million on build, transfer and use basis. The project, the first of its kind, will be financed by a grant by the government of India. A final agreement is likely to be signed in April 2007.
Mr Ramesh said that "It was Dr Manmohan Singh and Mr Pranab Mukherjee external affairs minister who changed the project from build, operate, transfer project into a build, transfer and use venture. That's because Myanmar authorities had serious reservations on BOT approach."
The scheme involves 3 components namely, rebuilding Sittwe, making Kaladhan river navigable up to Mizoram and developing highway connectivity from the border in Mizoram. The project may take 3 years to complete and it will be implemented by RITES.
In the centre's plan to develop the north east region, Sittwe project assumes great importance. The port will provide an alternate route to connect with South East Asia, without passing through Bangladesh. The project provides a direct link and trade route not just to Myanmar, but also to Thailand and the rest of South-East Asia.
Reliance Power IPO subscribed by 72 times
It is reported that initial public offering for Reliance Power has oversubscribed by 72 times. IPO has put in bids for over 1,654.8 crore shares as against the 22.8 crore shares on offer.
The figures are based on the latest data available but merchant banking sources associated with the offer said that the final tally and the investor composition will be known later. The issue has already pulled in roughly INR 60,000 crore by way of application money.
The IPO received maximum response on the last day compared to the first 3 days, with the subscription count racing from 24 times day three to over 72. On the evidence so far, it is clear that there has been surge in investor response on the last day compared to the earlier 3 days.
According sources in the merchant banking industry handling the IPO, in terms of number of applications Reliance Power IPO has set a new record. It received ever nearly 3.1 million applications by the end of day 3.
Pipavav Shipyard to raise INR 12.49 billion through IPO
Pipavav Shipyard Limited announced that it expects to raise INR 12.49 billion in an initial public offering and plans to sell 86.85 million shares to part finance the construction of a shipyard in western India.
Pipavav plans to invest INR 28.88 billion for the complex, part funding it from the share sale as well as debt of INR 9.35 billion and has already filed for regulatory approval. After the completion of the complex, it will be able to build vessels of different sizes and types, including rigs. Currently, it has contracts to build 26 bulk carriers valued at an estimated INR 42.99 billion.
JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited are book running lead managers for the issue.
GM to source USD 1 billion worth auto parts from India
BS reported that General Motors will source USD 1 billion worth of automotive component from India in the next 3 years. As per report, General Motors has set a target of sourcing auto components worth USD 1 billion from India in the next 2 to 3 years.
GM India officials said that it is in talks with the Indian government and will probably make an announcement regarding a new engine and transmission plant in the next couple of months.
Mr Karl Slym president & MD of GM India said that the components would cater to GM facilities worldwide. GM had sourced auto components worth USD 300 million from India last year. He added that GM India's new facility at Talegaon near Pune would be operational by August 2008 with a capacity of manufacturing 140,000 units per annum.
GM’s existing facility at Halol in Gujarat has a production capacity of 85,000 units per year. It is considering manufacturing its Captiva SUV, which it recently introduced to the Indian market, in India at some point.
BHPB bid for Rio - Rio defiant amid talk of fresh BHP move
Mr Tom Albanese CEO of Rio Tinto, on Friday set out a robust defense of his company’s independent prospects as rumors swept the market that BHP Billiton was preparing to improve the terms of its takeover proposal next week.
Mr Albanese told the Financial Times in Perth that Rio’s prospects are superior to BHPB particularly in iron ore and aluminum, two commodities that are among the chief beneficiaries of record Chinese demand. He said “GBP 1,000 invested in Rio in 1997 would now be worth roughly GBP 9,000 but GBP 1,000 invested in BHP is now equal to GBP 7,800. Words are important but numbers are better.”
The daily Telegraph reported that key investors in Rio Tinto have given the mining group's management their backing Mr Albanese told The Daily Telegraph in Perth "I have spent a lot of time doing the rounds of shareholders and will continue to do so. We do ask What do you think? And they say You are doing exactly the right thing and we agree with it.
A Daily Telegraph analysis of Rio's shareholder base also shows that cumulatively the company's top 10 investors increased their stakes between November, when BHP's initial 3 to 1 swap proposal was made, and this week suggesting they concur with Mr Albanese's assessment that BHP's bid is a low-ball offer and that whilst they may favour a tie up in principle, they expect BHP to come back with a higher price.
ThyssenKrupp forecasts for current fiscal year confirmed
ThyssenKrupp confirmed its forecast for the current fiscal year 2007-2008 and if the economy behaves as expected, anticipates a positive performance overall in 2007-2008 and 2008-2009.
It said that “As expected, first quarter earnings before major nonrecurring items lower than a year earlier at EUR 700 million. Initial figures available confirm this. The prior year quarter was boosted by exceptionally strong demand and very high base prices for stainless steel which are absent this time in the Stainless and Services segments. ThyssenKrupp is ahead of budget in the first quarter and fully in line with its planning for the current fiscal year.
Dr Ekkehard Schulz executive board chairman of ThyssenKrupp said that “For the current fiscal year the executive board expects sales of EUR 53 billion and earnings before taxes and major nonrecurring items, including start up costs for the steel mills in Brazil and the USA, of over EUR 3 billion.”
Dr Schulz that “Our mid term sales target is EUR 60 billion, while our sustainable goal for earnings before taxes and major nonrecurring items is EUR 4 billion. In the longer term, especially after the startup of the steel mills of Steel and Stainless in North America and the investments of the other segments in other regions, our sales target is in the region of EUR 65 billion and our target for earnings before taxes and major nonrecurring items is EUR 4.5 billion to EUR 5 billion.”
Bakrie & Brothers to buy stakes in 3 firms for USD 5.5 billion
The Jakarta Post reported that investment company PT Bakrie and Brothers is set to raise IDR 51.3 trillion (USD 5.5 billion) to purchase stakes in three large companies. The shares of the three companies will be bought from the family of Mr Aburizal Bakrie, Indonesia's welfare minister, which also owns 28% of Bakrie and Brothers.
Mr Bobby Gafur Umar president director of PT Bakrie and Brothers said the company would buy 35% in the country's biggest coal exporter PT Bumi Resources and 40% each in PT Energi Mega Persada and PT Bakrieland Development.
Mr Umar said that “The company will spend IDR 36.9 trillion to buy Bumi shares at IDR 5,432 per share, IDR 7.2 trillion for EMP at IDR 1,249 per share and IDR 4.3 trillion for Bakrieland at IDR 556 per share.
Mr Umar added that “To finance the acquisition, it would first combine two of its existing shares into one, and then raise IDR 40.1 trillion through a rights issue. For the remainder of the fund, the company will sell warrants worth IDR 2.9 trillion and borrow IDR 8.3 trillion.
Mr Umar said that "All target acquisitions are high-growth companies in key strategic industries. When combining its existing businesses with the new acquisitions Bakrie & Brothers will have a strong strategic portfolio of the hottest sectors in Indonesia."
PT Bakrie and Brothers already controls, among others, PT Bakrie Sumatera Plantations and PT Bakrie Telecom. PT Bakrie & Brothers has a market capitalization of IDR 7.5 trillion, with assets in infrastructure projects reaching IDR 2.2 trillion, plantations IDR 5.26 trillion and telecommunications IDR 4.27 trillion.
Iron ore price negotiations –China to drive demand
Mining giant Rio Tinto Ltd shrugged off global concerns about the US economy, saying that even if the US falls into recession it would do little to slow the Chinese economic juggernaut driving the commodities boom sending a clear message that the underlying long-term fundamentals are intact and that this unprecedented resource boom is structural rather than cyclical in nature
Mr Tom Albanese CEO of Rio gave a bullish presentation of Rio Tinto's prospects. He said “The Chinese economy is becoming less dependent on the slowing US economy and would still grow about 10% this year even if the US went into recession.”
In a media presentation, Mr Albanese gave an upbeat assessment of his company's outlook and the prices of the commodities it produces. He said “"From 2008 onwards Rio Tinto is poised for exceptional growth as we reap the rewards of investment in exploration, resources, infrastructure, technology and people consumption.”
Rio Tinto expects growth in China of between 10% and 11% in 2008, and said that growth of 9% in the longer term looks sustainable, with the focus increasingly on domestic demand.
MMX eying new opportunities in iron ore and other minerals
Mr Paulo Gouvêa general counsel of Brazilian mining and metals company MMX said that it has an eye out for new iron ore opportunities in the northeastern Brazilian states of Bahia and Piauí.
He added that "We have been looking at other commodities as well. One of the opportunities would be uranium, a mineral which in Brazil is entirely in the hands of the government.”
Anglo American is in exclusive talks to gain control of two of MMX's projects for USD 5.50 billion. Anglo American would acquire 100% of a new special purpose company, which would be a spin off from MMX and would own MMX's current 51% stake in the Minas Rio iron project in Rio de Janeiro and Minas Gerais states, plus its 70% stake in the Amapá iron complex in northern state of Amapá.
In other iron ore projects, MMX unveiled this month plans to acquire Minas Gerais state based iron ore miner Minerminas for USD 125 million, while it purchased iron ore miner AVG last year, also in Minas Gerais, for USD 224 million.
Mr Sarkozy to assess ArcelorMittal’s closure plans in France
Mr Nicolas Sarkozy president of France said that he wants to look into plans by steel giant ArcelorMittal to close a steel plant in Moselle in eastern France. He added that "I asked to review the dossier, we are going to take a certain number of decisions."
Arcelor Mittal has unveiled plans to close its Gandrange plant in eastern France by the start of 2009, which would result in 600 job cuts. It said its decision was based on profitability issues. Gandrange produces 900,000 tonnes of steel per year.
CSP startup postponed to mid 2010
Mr Gustavo Bcheche CSP project coordinator told BNamericas that the start of operations at the 400,000 tonnes per year CSP long steel project in Brazil has been postponed for 12 months and is now expected to occur in mid 2010. He added that the delay mainly reflects equipment supply problems.
Mr Bcheche said that construction on the Maranhão billet plant is expected to start in May 2008, with works on the rolling mill in Goiás due to kick off in August 2008. A strategy regarding logistics and distribution of the steel products produced by CSP is under development.
Under the development plan, a steel shop to be built in Brazil's northeastern Maranhão state would focus on the production of billets, which would be shipped to CSP in Goiás state and rolled into long steel products. Sales will target the domestic market.
CSP is a JV between Brazilian groups Ferroeste with 40%, Sidepar with 40% and Toctao with 20%. Ferroeste will own 100% of the Maranhão facility.
Nucor seeks huge hike in sheet steel prices
According to Purchasingdata.com Nucor has continued the steel sheet price inflation charge, blaming the recent explosion in steel scrap prices for the USD 80 per tonne price increase for hot rolled sheet in coil.
As per report “If the proposed price sticks, delivered hot rolled coil from Nucor would cost USD 660 per tonne in March. The last time HRC was this high was in 2004.
As per Purchasing.com, hot rolled steel sheet prices have jumped from an average USD 544 in December to USD 565 this month and USD 580 for February deliveries. Other producers were planning for USD 640 price proposals in March.
Mr John Anton steel market economist at Global Insight said that he is having trouble reconciling all the announced price increases with a soft demand outlook. Mr Anton agreed that “Costs of production are certainly higher and mills do desire to pass these along. But there is only so much the market can bear and I fear we may find the breaking point.”
Power shortage may delay new ferroalloy smelters in SA
It is reported that state owned power producer Eskom’s capacity crisis could delay the construction of up to ten planned smelters in South Africa’s ferroalloys industry.
The senior official told Mining Weekly Online that “Between 6 and 10 such projects could well be held up because Eskom would not be able to supply electricity for them until around 2013. It could delay big smelting projects until after its first new coal fired power station in about 3 decades came on stream in 2013.”
In March 2007, Tenova Pyromet said that South Africa could get 5 new ferrochrome furnaces in the next couple of years. Some 70% of the world’s chrome resources lie within South African rocks.
Meanwhile, Mr Bongani Nqwababa of Eskom said earlier this week that the timing of the massive aluminium smelter planned Rio Tinto Alcan planned to build at Coega could be affected by tightening power margins in South Africa.
Forward freight derivatives trade surges by 34% in 2007
According to the Baltic Exchange, trading in forward freight agreements, which protect shippers from swings in the cost of hauling coal, iron ore and grains, increased by 34% YoY in 2007.
The exchange said that traders hedged on the price of transporting 1.1 billion tonnes of cargo in the second half of 2007 as compared with 825 million tonnes a year earlier. It said forward freight agreements bets on the cost of hauling oil gained 70% to 559 million tonnes in 2007 compared with 329 million tonnes in 2006.
Baltic Exchange started compiling the data from its member brokers in the second half of 2006.
Dry bulk commodity shipping costs reached a record last year as China's demand for iron ore, coal and other raw materials surged. Crude oil shipping prices increased at their fastest pace in at least 16 years in November and December.
Massey fined USD 20 million for pollution
It is reported that Massey Energy Company has agreed to pay a USD 20 million penalty for polluting hundreds of rivers and streams in West Virginia and Kentucky, including Big Creek in Pike County.
The penalty arose from a lawsuit filed in May of last year accusing Massey Energy of violating the federal Clean Water Act more than 4,500 times between January 2000 and December 2006. The complaint alleged Massey subsidiaries discharged excess amounts of metals, sediment and acid mine drainage into the waterways.
An EPA statement on the settlement said many of the pollutants were discharged in amounts of 40%% or more than what is allowed. The EPA said the complaint also alleged the company spilled large amounts of slurry, or waste containing metals and sediment, into waterways numerous times which can clog streams and harm fish habitats.
Mr Robert Klepp the lead attorney in the case for the EPA said out of all 25 subsidiaries of Massey that were the focus of the case, Pike County’s Sidney Coal Company’s number of violations was “fairly prominent. He said a significant number of violations we brought forward came from Sidney Coal Company.”
Italian unions call for port strike after workers die
Reuters reported that three of Italy's main unions called for a nationwide ports strike to start recently after two workers died in early hours in a port near Venice.
Labor federations CGIL, CISL and UIL said in a statement they strongly protest following incidents which reached unbearable levels in 2007 and, unfortunately, continue. The unions said "The protest is aimed at those companies which do not guarantee work safety."
Police said two workers died early on Friday after being overcome by fumes while cleaning a ship's grain hold at Porto Marghera near Venice. The ship has been sealed.
PT Bumi eying 50% stake in coal liquefaction project
It is reported that PT Bumi Resources is eyeing a 50% stake in the country's first coal liquefaction project which will involve a total investment of USD 1.3 billion.
Ms Nenny Sri Utami the head of research and energy development agency at the energy and mineral resources ministry said that Bumi had sent a letter to her office, confirming its interest in obtaining half the project's shares. She said the letter states its interests in developing the project's next phase, which is a commercial one.
The on going phase of the project, which the government calls semi commercial, is run by a consortium made up of local coal producers, including Bumi. The consortium has been conducting a feasibility study since August and is expected to complete it soon.
The government said the project which will have a total capacity of 13,500 barrels per day, is scheduled to start the construction in 2009 and production in 2013. It would be followed with a commercial plant with a double capacity. This commercial project is estimated to need an additional investment of USD 800 million.
Mr Kaz Tanaka senior vice president of Bumi also the chairman of the project consortium said the company had not decided whether it wanted to involve the development of the commercial project saying, "it was still premature and no decision had been made".
Kumba sees rise in 2007 headline EPS
Kumba Iron Ore forecast that full year headline earnings per share would rise to between 940 cents and 1,000 cents from 677 cents in the previous corresponding period.
Kumba, which has benefited from a boom in demand for iron ore from thriving economies like China, said it saw headline earnings for the year to end December 2007 between ZAR 2.96 billion and ZAR 3.15 billion rand up from ZAR 2.125 billion.
Vietnam Steel Corporation sets targets for 2008
Vietnam News reported that Vietnam Steel Corporation targets to produce 900,000 tonnes of pig iron in 2008 up by 13.5% YoY over last year.
Mr Nguyen Thanh Chuy deputy GM of Viet Nam Steel Corporation said that it also hopes to produce 2.35 million tonnes of steel in 2008 and reach a total turnover of VND 38 trillion up by 8.5% YoY.
To reach this target, the corporation will strengthen projects and activities producing pig iron in the country. It will also continue to focus on co operating with strategic partners. The project focus will include expanding the Thai Nguyen Steel Company and boosting steel extraction at Thach Khe mine this year.
It said “If the plan is successful, the corporation's profit will be VND 100 billion. The plan sets many challenges for Viet Nam Steel in 2008. The first challenge is the high price of pig iron on the international market as steel production still largely depends on imported supply. Many changes are predicted in the domestic steel market this year. Steel prices are forecasted to continuously increase, causing-damage to domestic consumers. The corporation, in a report submitted to the Government, has made some proposals to stabilize the market.”
Last year, the corporation produced 792,000 tonnes of pig iron, earning VND 33 trillion up by 35.9% YoY over 2006. Cheap steel imported from China was one of the biggest challenges corporations faced in 2007.
South African Stainless Awards 2008
South African Stainless Steel association announced that it will confer several awards recognizing and applauding exceptional achievements in the stainless steel industry. Closing date for entries is July 31st 2008 and winners will be announced at a gala awards evening to be held on October 16th 2008.
Award categories include
1. The Stainless Steel Award
2. Best Stainless Steel Project
3. Best Stainless Steel Product
4. Best Stainless Steel Services
5. Innovation Award
6. Achievement Award
7. Student Award
The criteria with which they will use to judge the entries include excellence, innovation, sustainability aspects, efficiency of the project, completion of the job, quality, impact on the environment and job creation.
The judging panel is comprised of 7 members and a chairperson. This panel represents the wide stakeholder demographic of the industry, with bold old, diversified and new faces considering the entries.
Insteel industries posts lower first quarter results
Insteel Industries has announced financial results for October to December quarter 2007. Net earnings for the quarter were USD 4.2 million as compared with USD 5.8 million. Net sales for the quarter decreased 5.4% to USD 66 million from USD 69.7 million in 2006. Shipments decreased 6.1% while average selling prices rose by 0.7%.
Gross profit for the quarter decreased to USD 10.6 million from USD 13.6 million a year ago due to the escalation in raw material costs, lower shipments and higher unit conversion costs. Most of the Company's manufacturing facilities operated on reduced schedules during the quarter in response to the soft market conditions and usual seasonal downturn during what is typically the weakest shipment period of the year.
Mr HO Woltz III president & CEO of Insteel said that "Considering the weak demand that we experienced in certain of our markets and rising raw material costs, Insteel posted solid results for the first quarter. Shipments for the quarter were unfavorably impacted by the continued downturn in housing related demand and low priced import competition in our PC strand business. Demand for engineered structural mesh and other products for markets related to nonresidential construction remained relatively strong."
GM offers buyouts to 46,000 employees
Reuters reported General Motors has offered buyouts to 46,000 employees despite this year's projected weakness and expects to increase revenue in all of its regions in 2008 and sees the probability of a stronger US industry in 2009 and beyond.
General Motor also said it launched another buyout program in January. Workers who accept the offers would leave the company starting in March. It said it plans to launch a second phase of buyouts in February.
GM has already idled a number of US plants and under a 2006 deal with the UAW, more than 34,000 workers left GM after accepting buyout packages ranging from USD 35,000 to USD 140,000.
AGL to spend USD 70 million to pipe gas
It is reported that AGL Energy, Australia's biggest electricity and gas retailer, will build a USD 70 million pipeline in north eastern Australia to secure access to coal-seam gas from Queensland Gas Co.
Brisbane based Queensland Gas said in a statement the 115 kilometer line would connect Queensland Gas fields with an existing pipeline grid, allowing fuel to be transported to western Queensland and eventually to the southern Australian states.
AGL, based in Sydney agreed last March to buy as much as 740 petajoules of fuel from Queensland Gas over 20 years while also buying a 27.5% stake in QGC.
Mr Michael Fraser MD of AGL said in the statement that "The structure of this transaction delivers value for both AGL and our strategic partner QGC."
AGL said the investment would be funded through existing cash and debt.
Astaldi wins Kadıköy Kartal metro line tender in Istanbul
The Astaldi Makyol Gülermak consortium has won a tender for the construction of a 21.7 kilometer long metro line between the Kadıköy and Kartal districts of Istanbul’s Asian side, after beating rivals like the Alarko OHL and Doğuş Yapı Merkezi Yüksel Siemens consortiums, with a bid of EUR 751 million.
The Kadıköy Kartal metro line will have 16 stops. 1 million cubic meters of cement will be used during the construction and there will be 270 escalators and 59 elevators at the stops on the metro line.
The consortium will complete the construction in 4 years, employing 2,000 people. Astaldi is the leader of the consortium, with a 42% stake, Makyol has 41% and Gülermak has 17%.
Mr Uğur Terzioğlu chief country officer for Turkey of the Italian Astaldi construction company said that “They will complete the metro line in its entirety, including terminals and maintenance facilities. The metro line will be constructed underground but will go above ground wherever possible.”
Mr Süheyp Bekiroğlu manager of Makyol said that the project currently includes the area between Kadıköy and Kartal but that it will later be extended to Pendik and Sabiha Gokcen Airport.
Another tender for the project had been held 2 and a half years ago but that it had been cancelled, as the construction project was not feasible at the time.
ArcelorMittal to host steel building design meet
Doha Time reported that ArcelorMittal is hosting a conference on “Designing the future buildings, innovative steel structures” at Aspire Academy on January 30th 2008 in which construction professionals will share the latest developments in steel design.
As per report, speakers would be sharing their experiences of achieving the safest and the most economical designs of buildings by specifying steel. The report said “By reviewing their recent and most famous projects, these speakers would highlight the superior aesthetic, functionality and potential of steel structures.”
Aspire Zone, Arep of France, Arup Gulf of Dubai, Projects International of Qatar, Six Construct and Midmac of Qatar are partners in organizing the event.
Qatar unveils Metro plans
The Peninsula reported that Qatar is planning a 140 kilometer light rail system in the capital Doha to help ease traffic congestion ahead of its 2016 Olympic Games bid.
Construction of the light rail system's first 85 kilometers is scheduled to begin in 2009, with completion of the metro scheduled for 2015. The report said "The rail network will link all major Olympic venues and villages, including the New Doha International Airport, Doha Port and the hotel district.”
Qatar, which officially launched its bid to host the summer Olympics last week, will spend billions of dollars to revamp its transport infrastructure irrespective of whether its Olympic bid is successful. According to the report, Qatar Public Works Authority, Ashghal, is undertaking 39 projects to improve the transport infrastructure, including a number of multi-lane motorways, extensions to road networks and improvements to the Doha bus system.
UAE electricity consumption to rise by 45% in 3 years - BMI
According to a report by Business Monitor International, electricity consumption in the UAE is predicted to grow by 45% in 3 years with rising population and new industries fuelling demand for energy, according to a study.
Dubai Chamber of Commerce & Industry said that UAE electricity sector will require USD 8 billion in investment over the next 6 years to 8 years to add capacity and the government plans to expand its approximate 10 GW of installed capacity by more than 50% during the next decade.
BMI estimates that Dubai alone will have to boost its power generation capacity to 9.5 GW by 2010. UAE's power consumption is expected to increase from an estimated 56.6 TWH in 2006 to 82 TWH by 2011.
Sources said that Dubai Electricity & Water Authority needs USD 16 billion to fund its generation, transmission and distribution projects over the next 5 years.
Mr Saeed Mohammad Al Tayer MD & CEO of DEWA said that Dubai will invite bids in August 2008 for a 3,000 MW power plant in Jebel Ali. The plant is part of a huge electricity generation and water desalination complex that will have a capacity of some 9,000 MW of power and 600 million gallons of water per day when fully ready.
Iraqi economy to expand significantly in 2008 - IMF
A senior official at the International Monetary Fund said that Iraq's economy is expected to expand significantly from the previous year's lows as long as the security situation allows for higher oil production and investment.
The official said that Iraqi oil production was forecast to climb by 200,000 barrels per day to 2.2 million barrels a day in 2008. He also said that the higher oil output would push gross domestic product growth significantly up to over 7% in 2008 and 2009 from just 1.3% in 2007 when violence drove the country to the brink of civil war.
In December 2007, the IMF approved a 15 month USD 744 million loan agreement for Iraq, which would focus on maintaining economic and financial stability, and facilitates higher investment and production in the country's key oil sector.
Pak Railways to purchase 150 new coaches
The News reported that, with a view to increasing its capacity to carry passenger traffic, Pakistan Railways plans to purchase and manufacture 150 new passenger coaches at the cost of PKR 5.838 billion. Around 40 carriages would be imported as completely built units and 110 carriages would be assembled locally from completely knock down kits.
A senior railways official that “The main objective of the plan is to replace one train on main corridor and introduce seven new trains that will run on sections including Peshawar Cantt Karachi, Rawalpindi Karachi, Lahore Faisalabad, Lahore Rawalpindi. As a result of this operation, additional 3,165 million passenger kilometres will be earned.” He added that Peshawar Cantt Karachi route, one train would be replaced and on Rawalpindi Karachi route an additional train will be introduced while Lahore Faisalabad and Lahore Rawalpindi section would each get three additional trains.
The new trains would provide better, comfortable and safe journey, improved quality of services, higher standards of efficiency and restore good will of public through punctual running trains. The carriages with speed of 140 kilometres per hour would have air spring shock absorbers that provide more comfort to passengers and need lesser maintenance.
He said that “Out of 150 new design broad gauge coaches, 40 carriages will be imported as completed built unit, while 110 carriages will be manufactured locally at carriage factory, Islamabad through import of parts in completely knock down condition. Foreign training of 40 man months, augmentation of plant and workshops, transfer of technology and 3 year spares will also be a component of project.”
The present passenger traffic capacity of Pakistan Railways is 26,446 passenger kilometres annually that is not sufficient to meet the needs of developing economy amid growing volumes of passengers travelling across the length and breadth of Pakistan. Pakistan Railways is at present carrying 20% of the total passenger traffic moving only from Karachi due to which balance 80% is carried by road, which is more expensive as compared to rail out but also generates excessive pollution and is less safe.
Abu Dhabi to launch a Metal Park
Khaleej Times reported that Abu Dhabi would have 2 industry specific economic zones called Polymer Park and Metal Park, where large as well as medium scale industries would be set up by the private sector, capitalizing on the emirate's strong comparative advantage of capital, abundant and cheap energy resources, labour and ideal access to markets.
Both industrial parks would be located in the Industrial City of Abu Dhabi, located outside Mussafah industrial estate, for which land has already been earmarked, and infrastructure would be developed very soon.
Dr Jim White COO of Abu Dhabi Basic Industries Corporation said that Polymer Park is in advanced stage and may be announced as early as this quarter, while the Metal Park is in conceptual stage, which may take some time.
Dr White said that "Polymer Park would use Abu Dhabi's prime product polymer resin as a raw material to be converted into value added consumer as well as industrial products, while industries to be set up in the Metal Park, would use aluminum and steel as raw material to manufacture goods for exports purposes."
He added that government would be deciding on the tax and other benefits to be allowed to the industries to be set up in the 2 parks.
He added that the size of the investment being looked at would be USD 20 to USD 25 million. Dr White estimated that through the next 5 years, the industrial zone would generate USD 1 billion worth investment.
SABIC enters as partner in Osos petrochemicals project
Saudi Basic Industries Corporation has signed a MoU with OSOS Petrochemicals. Subject to this MoU, SABIC will enter as a partner in the OSOS Petrochemicals project at Yanbu industrial city.
According to this agreement, SABIC will complete in no more than 2 months, the exploration and review all works, studies and agreements prior to updating the respective economic feasibility study. A final agreement will then be signed, should the two parties agree on the study.
The total value of this project is estimated at USD 1 billion. SABIC will hold 35% in the JV. Products will include the following
1. Polybutylene terepthalate with 60,000 tonnes
2. Butanediol with 50,000 tonnes
3. Tetrahydrofuran with 3,500 tonnes
4. Malic anhydride acid with 85,000 tonnes
PBT is used in various applications including electronic chips, the automotive industry and computer and communications equipment. SABIC’s share of the total global PBT production will be 15%. BDO is an intermediate product used in Polyurethane and PBT. THF is used in Polytetramethylene Ether Glycol, drug compounds and is also used as a solvent. MAN will be used within the plant.
Tokyo and Abu Dhabi bourses ink tie up
The Tokyo Stock Exchange and the Abu Dhabi Securities Market has signed a deal for a future tie up as competition heats up among major bourses.
Under the MoU, the 2 markets will study areas of cooperation in a bid to expand trade at both bourses.
TAQA completes acquisition of Primewest Energy Trust
Abu Dhabi National Energy Company has announced that its wholly owned subsidiary TAQA North Limited has closed its acquisition of PrimeWest Energy Trust by way of plan of arrangement. The transaction was determined by the federal minister of industry to be of net benefit to Canada under the Investment Canada Act.
Mr Don Garner president & CEO of PrimeWest Energy Inc has been appointed to the position of CEO of TAQA North with immediate effect. He will be responsible for leading the integration of PrimeWest into TAQA North.
Emaar Properties posts records net profit for 2007
Emaar Properties PJSC focused on business segmentation, international expansion and strong regional partnerships has posted record annual net profits of AED 6.575 billion in 2007 up by 3% YoY as compared to AED 6.371 billion in 2006 in spite of significantly lower land sales and slow down of US real estate sector during 2007.
Its annual revenue increased by 25% YoY to AED 17.566 billion as compared to AED 14 billion in 2006.
Emaar recorded fourth quarter revenue and net profits of AED 5.029 billion and AED 1.736 billion. These represent a growth of 13% in revenue and 11% in net profit, respectively, over third quarter 2007 revenue and net profit of AED 4.459 billion and AED 1.560 billion.
Emaar’s international operations started contributing positively to the Group’s profitability with JVs in India and Morocco earning profits during 2007.
Emaar was ranked in the Financial Times Global 500 list, while its flagship development, Burj Dubai, scaled 158 storeys to become the tallest building and free standing structure in the world. Emaar also ranked in the top 10 of S&P’s IFCG Extended Frontier 150 Index for frontier equity markets covering constituents from 26 countries.
Rusail Industrial Estate to expand
Mr Hamad bin Salim al Harthy director general of Rusail Industrial Estate said that the region has acquired about 200,000 square meters new expansions at Al Misfat area to meet the increasing needs of the investors, who are interested to set up their projects at the RIE during the forthcoming period.
In a statement to Oman News Agency, Mr al Harthy said that the survey for the new expansion and additions which is expected to be acquired from the Omani ministry of housing in addition to the 97,000 square meters is underway. The goal of this survey is to identify the number of land plots that will be included in the new expansion so that they can be distributed according to sectors, utilities, services and infrastructure that will be set up in the expansion area.
Shougang 2007 sales revenue crosses CNY 100 billion
It is reported that China's Shougang Group got the best scores last year in terms of sales revenue, profits and steel output, with its sales revenue breaking CNY 100 billion for the first time.
According to Mr Zhu Jimin board chairman that the group realized sales revenue of CNY 109 billion in 2006 up by 31% from a year earlier profit CNY 4.36 billion up by 60%; steel output 15.4 million tonnes including 7.13 million tonnes of key products, representing 53.1%. These indicators all hit record highs.
The group also exported 2.025 million tonnes of steel products in last year plus the export of 79,000 tonnes by its subsidiary China Shougang international Trade & Engineering Corp total exports added up to a new record of 2.104 million tonnes.
Southern China shuts power plants due to coal shortage
Bloomberg reported that China has shut down more than 6% of the power generating capacity in its southern provinces because of a coal shortage, with the region bracing for the worst electricity shortage in at least five years.
Mr Xiao Peng VP of China Southern Power Grid Co while speaking at the China 2008 Economic & Energy Outlook conference said that Guangxi has shut 2.3 gigawatts, Guizhou 4.2 gigawatts and Yunnan 3.8 gigawatts. China's southern provinces have 164 gigawatts of combined capacity.
He said that” The problem is serious. We have sent an urgent request to the central government to address the issue.”
He added that China burns coal to generate about 78% of its electricity. The nation became a net importer of coal for the first time in January last year and consumption has outpaced gains in output from Australia and Indonesia. Rising coal prices and domestic transportation bottlenecks have contributed to a lack of the fuel.”
Mr Donovan Huang a coal analyst at Nomura Securities Ltd said that this is kind of an every year event due to bad weather, winter heating demand and low output. The Chinese New Year is approaching and a lot of the mines have started to shut down as the miners return home.''
Shanghai International Port buys inland River Port of Jiujiang
It is reported that Shanghai International Port Corporation Limited is to take a majority stake in an upcoming USD 75.8 million JV expansion of the inland Yangtze River port of Jiujiang.
Shanghai International Port Corporation Limited will own 91.67% of the JV while the Jiujiang state owned asset supervision and administration commission which controls Jiujiang port will own the remaining 8.33%.
According to Mr Li Yuezhen press officer of Shanghai International Port Corporation Limited “Purchasing Jiujiang port is part of the company's expansion strategy along the Yangtze River. It will invest in more ports in the middle and lower reaches of the Yangtze in future to explore central and western China as new freight sources.”
Mr Li said that “The move is also in response to the government's call to build a national navigation hub to better serve the Yangtze River Delta and the inland areas. Leveraging on Yangshan deepwater port SIPG is increasing the transit cargo ratio of total throughput, which is an important parameter for judging the size and efficiency of an international shipping center.”
2007 saw Shanghai retain its position as the world's busiest cargo port for the third year running with the past 5 years seeing cargo volumes more than double.
China to monitor companies for electricity savings
Xinhua reported that Beijing recently began the monitoring of the city's 50 major electricity users. The enterprises, in sectors including automobile manufacture, electronic and IT industries and transport, all have an annual energy consumption equivalent to more than 20,000 tonnes of standard coal.
Mr Li Ping a local government official said that "The real time monitoring system, with an investment of CNY 6 million is expected to provide an energy saving plan for the enterprises, based on the information gathered."
He said the system will help the municipal government to map out energy plan by providing statistics for reference. He added that the government would monitor more Beijing enterprises in future.
Statistics revealed China has cut energy consumption for every CNY 10,000 of GDP by more than five percent over the past two years.
Shanxi to face power shortage due to low coal supply
Power grid operator the Shanxi Electric Power Corp announced that Shanxi Province in northwestern China will continue to face difficulties in meeting electricity demand in the near future because power projects are lacking sufficient coal reserves.
The released said Coal stockpiles in 11 Shanxi power projects have fallen to critical levels. Seven of the projects have storage for just one day of electricity consumption.
According to Shanxi Electric Power in January, 650 MW of capacity stopped operations in the province due to the shortage in coal supplies. In the meantime, electricity demand in Shanxi is increasing.
Shanxi Electric Power has twice carried out emergency plans to relieve supply tension this month. According to the emergency plans, Shanxi Electric Power will control the amount of electricity being consumed during peak times. The company said it will also work to transport power from western China.
13 killed in southwest China mine blast
AFP reported that at least 13 miners were killed when an explosion ripped through a mine in southwestern China, just weeks after safety inspectors warned of high levels of gas in the shaft.
As per report the blast occurred in the Gaoqiao coal mine in Chongqing municipality early Thursday evening. An investigation into the precise cause of the explosion is underway.
China is the world's largest coal producer and consumer, and its mines have been rife with accidents as energy demand has rocketed along with the boom in the nation's economy.
China Coal energy produces 90.52 million tonnes of coal in 2007
Xinhua reported that China Coal Energy Co Ltd hefty increase in production of major products in 2007 with coal output reaching 90.52 million tonnes increasing 14.5%YoY.
China Coal Energy Co Ltd output of coke reached 3.37 million tonnes in the year surging by 42.8%YoY and that of coal production machine was 202,000 tonnes up by 24.4%.
At the same time, the company, which is a wholly owned subsidiary of the China National Coal Group Corp for listing in Hong Kong, produced 2.36 billion kWh of electricity up by 4.4%YoY and 98,000 tonnes of electrolytic aluminum.
China Coal Energy Co Ltd founded in August 2006 mainly engages in coal, coke and coal equipment production.
Yingkou Port traffic in 2007 up by 27% YoY
Xinhua reported that the Port of Yingkou at eastern China's Liaoning province handled more than 120 million tonnes last year, 27% higher than 2006's volume of 94.8 million tonnes.
By early October 2007, the port had achieved its annual target of 100 million tonnes two months ahead of schedule, becoming the 10th Chinese sea port with a throughput more than 100 million tonnes.
By the end of November 2007, the port had lifted 110 million tonnes. Yingkou Port is aiming at an annual throughput of 200 million by 2010 and the port's operator Yingkou Port Group is seeking to be listed in the stock market.
ABB wins major orders for power link in China
It is reported that ABB, the power and automation technology group, has won orders worth USD 440 million from the State Grid Corporation of China and other partners to provide new ultrahigh voltage technology for the world’s longest power transmission link.
The power superhighway running 2,000 kilometers from western China to the highly industrialized coastal area in the east will have a capacity of 6,400 MW. That is enough to meet the needs of about 31 million people in China, based on average consumption per capita1.
The link from the Xiangjiaba hydropower plant to Shanghai is scheduled for completion in 2011. The ultrahigh voltage direct current link comprises two substations and a power transmission system using breakthrough technology to transmit electricity at ultrahigh voltage which will minimize the amount of power lost in transmission.
Baosteel’s Filiale raises SS tube prices
It is reported that on January 16th 2008 Special Steel Filiale of Baosteel has uplifted the future prices for stainless tube up by CNY 1000 per tonne but the future prices still remained at CNY 28,500 per tonne.
Under the current situation, stainless seamless tube enterprise faced the pressure of price rising in Yangtze River Delta region. It is forecasted they will likely to adjust the prices in the near future.
Shanghai Railway to spend CNY 20 billion for upgrades
It is reported that Shanghai Railway Administration will spend up to CNY 20 billion upgrading railway facilities and constructing new lines this year as it begins construction on 10 new lines in Shanghai, Zhejiang, Jiangsu and Anhui provinces.
The administration, which manages rail traffic in Shanghai, the neighboring two provinces and part of Anhui said its investment in upgrading railway infrastructure this year has increased 25% on the previous year, partly because of the expansions of rail links in the region.
The projects to be launched this year are
1. The Shanghai Nanjing section of the Shanghai Beijing high speed railway.
2. The Shanghai Nanjing inter city line and the Shanghai Hangzhou Ningbo passenger line.
3. Shanghai Nantong and Nanjing in Jiangsu Province, Hangzhou and Ningbo in Zhejiang Province as well as Bengbu, Hefei and Anqing in Anhui Province will be terminals for the 10 new provincial lines.
4. Shanghai Railway Station, the city's major railway hub, north of the downtown city area will have its North Square area modernized.
5. The platforms at the Shanghai Railway Station will also be upgraded, giving passengers more space and providing more rain shelters.
Mr Wu Qiang director with Shanghai Railway Administration said the face lift will completely change the appearance of the square which for too long has been dirty and run down. He said the square would have new facilities and they would be superior to those now found at the South Railway Station, the city's second major downtown railway hub. The face lift will be completed by 2010.
Bulgaria to join South Stream gas pipeline project
Itar-Tass cited a source in Bulgarian government as saying that it has made the decision to join the South Stream gas pipeline project.
Mr Sergei Stanishev PM of Bulgarian said at his meeting with Mr Dmitry Medvedev Russian First Deputy Prime Minister that the cabinet of ministers has reviewed the agreement on South Stream on which we had held talks. He said work on this document had been continuing until Thursday night.
He said “The result is good. The government has approved the document and Mr Dimitrov Bulgarian Minister of Economics and Energy is authorized to sign it.”
Mr Stanishev said “Bulgaria’s interests in the project are fully considered, because the company that will build and manage the gas pipeline in the territory of Bulgaria is established with equal 50 participation of each of the sides.”
The South Stream pipeline will run from Russia's Black Sea coast under the sea to Bulgaria, where it will branch off to different destinations in the European Union, supplying 30 billion cubic meter of gas annually. Possible routes for the land section are still under discussion.
EC to help attract investment to modernize Ukraine pipeline system
Interfax reported that the Ukrainian Fuel and Energy Ministry and specialists from the European Commission will work on a concept and the logistics of the organization of a conference to attract investment in the modernization of Ukraine's oil and gas transportation systems in the near future.
The agreement was reached at a meeting between Mr Yury Prodan Ukrainian Fuel and Energy Minister, Mr Ian Boag Head of the European Commission Delegation to Ukraine and Mr Faouzi Bensarsa European Commission energy advisor in Kyiv.
The event has been tentatively planned for July or August 2008.
Mr Bensarsa noted the special significance of projects for the reconstruction of Ukraine's oil and gas transportation systems and the need to attract about EUR 2.5 billion up to 2013 for their implementation.
PGOK increases iron ore supplies to Alchevsk in 2008
According to Alchevsk Steelworks, Poltava OMEP will increase pellets supplies to the steelworks by 30%YoY to 35%YoY in 2008.
The average monthly pellets supplies will rise from 0.160 million tonnes to 0.208 million tonnes - 0.216 million tonnes.
Khartsyzsky 2007 large dia pipe production slides
FIS reported that in December 2007, Khartsyzsky Pipe Plant made 17,000 tonnes of large size pipes 33% less than in November.
The annual production of large size pipes totaled 508,900 tonnes, 86,800 tonnes less as compared with 2006.
Western Siberia Railway transported 180.2 million tonnes of Kuzbass Coal in 2007
FIS reported that annual coal output in Kuzbass totaled 181.8 million tonnes of which 180.2 million tonnes were transported by rail, a growth by 2.7 million tonnes as compared with 2006.
The production plan for 2008 is 190 million tonnes which requires the organization of additional transportation of 8 million tonnes.
Currently the coal enterprises are often late with the loading of coal so the gondola cars remain under loading 1.6 hours longer than required. In 2007, penalties for excess idle time exceeded RUB 640 million.
Ukraine to modify laws for scrap procurement and processing
Ukrainian News Agency reported that President Viktor Yuschenko has proposed that the Verkhovna Rada abolish licensing of procurement and processing of scrap metal.
This follows from a statement by the president’s press service. According to the message, this initiative is stated in the draft law on amendments to several regulatory acts regarding licensing of separate types of economic activities, which was submitted to the parliament by Mr Yuschenko.
The main aim of the draft laws is to significantly simplify permissive and regulating procedures in entrepreneur activity, bringing them closer to European standards, particularly reducing the number of activities that are subject to licensing.
Apart from procurement and processing of scrap metal, Mr Yuschenko suggested canceling licensing of production of precious metal and gem goods, surveying and cartographic work, tourism services and recreational activity, as well as licensing of production of cars and buses since transport is already subject to obligatory certification.
The bill on market oversight should introduce control over compliance of products in circulation with technical regulations, completeness and reliability of such products, which will create additional mechanisms for protection of consumers’ rights.
ENMZ to increase charter fund
Yenakievskiy Steelworks has announced that it plans to increase its charter fund by 1.7% to USD 31.9 million.
According to Yenakievskiy Steelworks, 0.180 million in new ordinary shares at USD3.02 par value will be issued. The charter fund increase is to be voted on at the AGM on March 21.
Ukraine sets no new conditions for Russian gas transit
Itar-Tass reported that after a recent meeting between Mr Alexei Miller CEO of Gazprom’s and Mr OIeg Dubina newly appointed head of the Naftogaz Ukrainy oil and gas company, Ukraine has not put forward any new conditions for transiting Russian gas to Europe
As per report “At today’s talks with Mr Alexei Miller CEO of Gazprom Mr Oleg Dubina the chief of Naftogaz Ukrainy voiced no new proposals for the terms of payment for Russian gas transit through Ukraine.”
At first, the meeting was held in a one on one format. Mr Igor Didenko Naftogaz Ukrainy acting deputy chief and Mr Konstantin Chuichenko Gazprom board member joined in later.
The meeting was of preliminary nature. The main result was both sides agreed such contacts should be continued.
Russian Corporation of Transport to increase capacity
FIS reported that directors of Russian Corporation of Transport Machine Building have approved the project of production capacities reconstruction envisaging the growth of steel and cast iron blanks production to 90,000 tonnes by 2010.
Investments into the project will total RUB 4.4 billion the pay back period is estimated at 5 years. Under the project the corporation is planning to use modern equipment of the leading world manufacturers such as Henrih Wagner Sinto, Laempe GmbH and Kunkel Wagner.
The board also approved the growth of freight car production to over 8,000 in 2008.
GM-AvtoVAZ boosts production by 15% in 2007
FIS reported that Production output totaled 55,052 Chevrolet Niva and Chevrolet Viva. In 2007, sales grew by 14% to 54,610 cars including 6,457 cars sold in CIS countries.
By the end of 2007, the company had 121 dealer centers in 79 Russian regions and 9 CIS countries.
