January, 27 2008
JSW planning a plate mill in India with foreign partner
BS reported that JSW group is close to roping in foreign partners for its INR 2,000 crore plate mill project.
Mr Sajjan Jindal vice chairman of JSW said that a JV company would be formed for the plate mill project with a Japanese partner. He said that JSW would have a majority stake.
Mr Jindal told reporters that “The plate mill will call for USD 500 million of investment. I am in talks with a Japanese company for this project.
Mr Jindal added that the slabs for the shipyard and plate mill projects would come from JSW Bengal Steel, which is setting up a 10 million tonnes plant at Salboni. He said that “The first phase of 6 million tonnes would be on stream by June 2011. Around 1.5 million tonnes slabs from Bengal would go to the facilities acquired in the US.”
JSW group’s investment in the plate mill project would be through JSW Steel.
Welspun and Remi Metals in talks– Report
ET, citing unnamed sources, reported that Welspun group is in talks to acquire Gujarat based steel and seamless pipe maker Remi Metals. The report added that Welspun is also in the process of finalizing plans to market pipes of Remi Metals.
The report cited an official at Welspun as saying that “We keep on looking at growth opportunities in all our verticals of businesses across the globe but a Remi Metals executive said that “It is not correct at the moment.”
The Saraf family holds 62.5% in Remi Metals. Mr Chiranjilal Saraf started manufacturing of fractional motors and laboratory stirrers under the aegis of Rajendra Electric Motor Industries in 1960 and the group was later christened as Remi. Remi Metals has steel making capacity of 140,000 tonnes per annum and a seamless pipe making capacity of 50,000 tonnes per annum. Its total outstanding to banks stands over INR 400 crore as against its last year’s gross sales of INR 235 crore.
The deal, if goes through, will be one of the rare cases of change in management control of an ailing company from the BIFR purview. The acquisition of the management control would require the Welspun group to come out with a mandatory 20% open offer for retail shareholders of Remi. The non promoter shareholding is 37.5%.
BEML net profit in Q3 of 2007up by 11.8%YoY
Bharat Earth Movers Limited has announced the following unaudited results for October to December 2007 quarter
BEML has posted a net profit of INR 592.4 million for the October to December 2007 quarter up by 11.8% YoY as compared to INR 529.7 million in October to December 2006 quarter. Total income has been recorded at INR 6407.6 million up by 14.6% YoY as against INR 5591.1 million.
Sical Logistics close to buying freight forwarding company
Mr Sudhir Ragnekar MD&CEO of Sical Logistics Limited said that it is close to acquiring a freight forwarding company to fill the only gap in our logistics portfolio. He added that 3 companies are being evaluated for taking over and talk with 1 of them is at an advanced stage.
Mr Ragnekar explained that to start a freight forwarding company and build it up would be time consuming. He said that “We have decided to leapfrog into the business by taking over an existing company.”
It intends to provide freight trains through a special purpose vehicle set up for the purpose. Over the next 4 years, Sical will pump in around INR 1,000 crore into the business. Most of the money will be spent on buying rakes. In February 2008, Sical Logistics will launch its freight train operations. It had placed an order with Titagarh Wagons Limited for 2 rakes, costing INR 12 crore each. The rakes are to be delivered at Kolkata in February 2008.
Sical Logistics, through subsidiaries and JV, manages port terminals, provides port stevedoring services, operates a fleet of 2,500 trucks and would start running freight trains from next month.
Areva India to double transformer capacity by 2010
BS reported that transformer manufacturer Areva T&D India Limited is looking at doubling its transformer capacity in India by 2010. It also expects exports to touch 22% next year from the current 10%.
Currently Areva has a capacity of 12000 MVA of power transformers and 3,000 MVA of distribution transformers. Once the expansion and new Greenfield plants are up and running, it will have a capacity of 30,000 MVA.
Mr SK Poddar chairman of Areva India, acknowledging the fact that 57% of the rural households and 12% of urban households do not have access to electricity, noted that the government’s vision of “Power For All by 2012” was driving large investments. He said that “A surge in the quality of life has also been boosting the momentum of consumption of industrial goods and eventually electricity. There is a peak demand shortage of around 12% and an energy shortage of 8%. To share the huge investment in generation has been an equitable need for private sector participation.”
He added that “Areva’s involvement here is strategic as at least 4 UMPP would be ordered in 2007-12 and 5 more during 2012-17.”
Areva’s sales turnover has shown an increase of 82% in 2007 as compared to 2005 and the operating profit recorded an increase of 187%. Areva T&D India is 72% owned by Areva T&D of France and has 4 different business divisions in India namely products, systems, automation and services.
JSW to rope in overseas partners for port and shipyard projects
It is reported that JSW group is in talks with overseas partners for its proposed port and shipyard projects.
Mr Sajjan Jindal vice chairman of JSW said that JSW Infrastructure which will build the port and the shipyard is holding discussions with a global leader on these two projects. He said the group would hold majority stakes in all the projects.
As per report, the port project needs USD 250 million while the shipyard project needs about USD 400 million.
JSW Infrastructure is a new company floated by the group and would handle all infrastructure related projects of the group. The company is already building a port in Goa, Kakinada and could be a candidate for a deep sea port in Bengal.
PFC approves USD 1.3 billion loan for Indira Gandhi STPP
It is reported that Power Finance Corporation has approved a loan of around USD 1.3 billion on January 24th 2008 for Aravali Power Company's 1,500 MW Indira Gandhi super thermal power plant at Jharli in Jhajjar district in Haryana.
The project is scheduled to become operational by October 2010.
Aravali Power is a JV firm between NTPC and the state governments of Delhi and Haryana. While NTPC holds 50% stake in Aravali Power, the state governments own 25% each in the venture.
NHPC awaits decision on Harbin award for Kotlibhel project
It is reported that National Hydroelectric Power Corporation Limited has asked the power and home ministries to take an early decision on the participation of the Chinese company Harbin Power Engineering Company Limited in the electrical and mechanical works package for Kotlibhel projects.
Harbin Power had submitted its application in response to the invitation for prequalification of bidders for E&M works package for 195 MW Kotlibhel IA, 320 MW Kotlibhel IB and 530 MW Kotlibhel II HEP projects, apart from others. Interestingly, the matter was placed before the board of directors of NHPC for exclusion of the Chinese company from participation in the project.
In a letter to the ministry, NHPC wrote that the E&M works package for the above project was in an advance stage and that the package be awarded in line with the civil package in order to avoid delay in the execution of the overall project.
GMR Energy bags 300 MW hydropower project in Nepal
BL reported that GMR Energy has outbid rival Jindal Steel & Power Limited to bag a 300 MW hydropower project in Nepal after it agreed to give 12% free electricity from the project to Nepal. An official of GMR Energy said that “It has bagged the Upper Karnali project and a MoU to this effect was signed recently.”
The official said that “The Nepal government was asking for 33% equity in the project and has now agreed for 27%.” He added that GMR would offer close to 36 MW free power from the 300 MW project to Nepal.
While permitting foreign investment from Indian companies in the hydropower sector, Nepal had decided to award the projects to developer who offers the maximum free power to the country. It also decided to give only 1 project to a company. Nepal is seeking 124 MW free power from the 2 projects.
It is noted that GMR Energy, a 100% subsidiary of GMR Infrastructure, was a front runner for Upper Karnali and 402 MW Arun III project. However, it lagged behind Jindal Steel & Power after the Nepal government changed parameters for awarding the projects early this month.
Haryana plans to harness solar power
It is reported that Haryana government is planning to harness solar energy by setting up solar power projects in the state. The power produced from these projects will be fed to the state grid for which Haryana Renewable Energy Development Agency has submitted an application with the Haryana Electricity Regulatory Commission for fixing of tariff.
Ms Sumita Misra director of the state renewable energy department said that Haryana had about 320 clear sunny days in a year and the solar insolation level in the state was in the range of 5.5 KWH to 6.5 KWH per square metre. She added that “This offered a great potential for using solar energy for various thermal and electrical energy applications but the potential available from solar energy was yet to be harnessed in large scale in India.”
Ms Misra said that the present generation cost through photovoltaic power generation was about INR 15 per KWH. Though the cost of generation was on higher side, it will have good impact on the environment by reducing carbon dioxide emissions, thus reducing the global warming. She added that with a view to promote solar energy, the union ministry of new & renewable energy was in the process of notifying a new scheme to promote generation of power from solar energy through solar photovoltaic or solar thermal technology.
According to the new scheme, the union ministry would provide financial assistance of INR 12 per KWH in case of solar photovoltaic and INR 10 per KWH in case of solar thermal power to the developers for encouraging them to set up the projects. These incentives would be given as the ministry felt that INR 15 per KWH was the base line at which such projects could become realistically viable.
Hindustan Shipyard delivers second vessel to Good Earth
It is reported that Hindustan Shipyard Limited has delivered the second vessel in the series of 30,000 DWT bulk carrier MV Good Princess to the Chennai based Good Earth Maritime Limited.
Mr Ajit Tewari CMD of Hindustan Shipyard said that the first vessel in the series had been handed over on May 31st 2007 and the third would be handed over by March 2008.
During the current financial year, Hindustan Shipyard will be delivering 6 ships, totaling 130,000 DWT, which will be a record in its history. It is also constructing six 53,000 DWT vessels for Good Earth, to be delivered in the next few years.
JSW software arm ties up with Descon to enter eastern sector
It is reported that JSoft Solutions Limited, a company of Mr Sajjan Jindal, has reached a deal with public sector IT company Descon Limited for providing support services to its upcoming projects in eastern India.
Descon in conjunction with JSoft will set up a steel detailing centre to take up projects on this domain. Descon and JSoft will work together on voice and amp, non voice based BPO business while the former would hire professionals. The expected annual revenue for the next 10 years from this alliance is around INR 500 million.
Mr Jindal said that “In order to support the planned investments in the area of auto CADD related work and various other design engineering services, JSoft Solutions Limited is making a strategic tie up with Descon.”
Mr S Radhakrishnan MD of Descon said that both the companies would participate in software projects, including web development.
JSW Group is planning to invest around INR 1,000 billion in West Bengal, Chhattisgarh, Orissa, Jharkhand and Bihar in the next 5 to 7 years. It is also setting up a 10 million tonne integrated steel plant at Salboni in West Midnapore district of West Bengal with an investment of INR 350 billion.
UBS cuts 2008 global growth forecast on US slowdown
UBS AG cut its forecast for global economic growth, predicting that the US will slide into recession in the first half of 2008.
Mr Larry Hatheway chief economist of UBS in a recent report said that “Global gross domestic product will expand 3.6%in 2008 down from an earlier forecast of 4.3% and the world economy will grow 3.8% in 2009, compared with a previous prediction of 4.1%.”
He said "We now expect below trend growth in the world economy for the first time since 2002, a significant departure from the robust expansion of the past four to five years. China and India are expected to be relatively well insulated from the global downturn but will not be immune."
UBS said that “The slowdown will hurt Asia's export dependent economies, UBS said, lowering its forecasts for Hong Kong, Singapore and South Korea. We believe harder hit will be Asia's smaller, more open economies, including Korea, Taiwan and most of Southeast Asia. The economies of central and eastern Europe and Latin America are also likely to grow more slowly."
Goldman Sachs Group Inc, Morgan Stanley and Merrill Lynch & Co also forecast that the US will slip into recession this year for the first time since 2001 amid fallout from the subprime mortgage crisis.
Vale Xstrata tie up – Vale hurrying for financing
Times Online reported that Vale has taken a decisive step towards a bid for rival Xstrata by lining up a USD 50 billion financing package from a powerful group of global banks. The report said that Mr Fabio Barbosa CFO of Vale flew to London last week and met up to 12 banks.
As per report, HSBC is leading a consortium thought to include Santander, BNP Paribas, Lehman Brothers, Credit Suisse and Citigroup.
The report added that Mr Roger Agnelli CEO of Vale recently met Mr Luiz Inácio Lula” da Silva president of Brazil, to get the final go ahead as the government controls nearly 53% of Vale’s stock.
The report cited a source close to the Vale-Xstrata talks as saying that “There is a real sense of urgency in Vale, particularly to get the financing organized in case markets get worse. There is also an added incentive to try to organize financing before the deadline for BHP to bid for Rio Tinto on February 6th 2008, again just in case the banks are tied up.”
Vale, which is being advised by Lehman, has been working on due diligence for several weeks. Xstrata is advised by JP Morgan Cazenove.
Dry bulk freight rates continue their downward trend
According to the Baltic Exchange, Baltic Dry Index continued its free fall last week retreating by 4.8% or 298 points to 5,948 points recently. The most notable decrease was observed in the Capesize index, a point of reference for the dry bulk market. The index plunged by 6.32% at 7,352 points.
According to yesterday's morning report provided by Dahlman Rose, capesize time charter rates stood at USD 86,748 down 2.9% recently USD 89,311 and last week's USD 95,627. Nevertheless compared with last year's figures at the same period, which stood at USD 68,684, capesize rates continue to be significantly higher.
According to Mr Omar Nokta's head of Maritime Research for Dahlman Rose said that there are no new developments to report in the dry bulk market. Rates continue to lack momentum, with some softening evident in the capesize market, following some modest firming to start the week. He said that the vessel queue off Newcastle in Eastern Australia continues to decline an indication of the lighter activity we have seen recently.
Mr Nokta said the situation appears to be deteriorating in the tanker trade. VLCC bookings in the Arabian Gulf/Far East route lost 15.1% in just one day, with rates retreating to USD 53,070. On a weekly basis, rates have lost about 43% of their value down from USD 93,225. Again, when compared to last year's figures, tanker owners continue to receive higher fees, since 12 months ago, VLCC rates for the same route stood at USD 44,434. Several days of slow activity earlier this month has created a backlog of vessels in the Arabian Gulf and even though volumes have picked up with the introduction of more February cargoes, rates continue to soften.
Macarthur declares force majeure
Macarthur Coal Limited announced that the recent heavy rain event in central Queensland has continued to impact production.
It said that “As previously reported on January 21st 2008, the rain has disrupted mining activities at Coppabella and Moorvale mines. Force majeure has been declared due to the disruption to production and the company will continue to assess the full impact of delays to coal mining and processing.”
Macarthur Coal has significant stocks of thermal coal at Moorvale Mine and sales of this coal may reduce the impact of the rain event on coal sales for the 2008 financial year.
Mr Nicole Hollows CEO of Macarthur Coal said that the Company will continue to work with our customers to manage shipments during the recovery of operations.
Macarthur produced about 4.9 million tonnes of coal from its Coppabella and Moorvale mines in 2006, its production report showed.
South Africa export coal to be kept for domestic
It is reported that some South African coal for exports will have to be diverted to state utility Eskom as a result of the current power generation crisis which has halted South African precious metal mining and cut ferro alloy and coal production also.
Although captive mines which supply 100% of their coal to Eskom are still being supplied with power, Eskom relies on a proportion of spot coal and this comes from coal producers whose output has been hit by the power cuts.
Eskom has the right under most of its contracts to call upon export destined run of mine coal from suppliers if there is a shortfall in the contracted tonnage of domestic coal. Eskom is expected to have to start making such a call within weeks.
Richards Bay FOB prices have hovered around USD 100 per tonne during the past several months, for 6,000 kc per kilogram coal of far higher energy content than the unwashed domestic grade coal consumed by Eskom.
LME extends prompt dates for future metal contracts
It is reported that the London Metal Exchange will extend the prompt dates for the following futures contracts
1. High Grade Primary Aluminium and Copper Grade A contracts from 63 months to 123 months
2. Standard Lead from 15 months to 63 months
3. Special High Grade Zinc and Primary Nickel from 27 months to 63 months.
Mr Martin Abbott CEO of LME said that “There is already substantial OTC activity in these contract prompt dates. Bringing this activity into the LME environment will give market participants increased transparency, access to liquidity and the benefit of risk management that clearing offers.”
Argentina to Bolivia gas pipe line supply bids
It is reported that Argentina and Bolivia have opened tenders from private companies to provide steel tubes for the USD 1.8 billion 2,000 kilometer long northeastern pipeline to bring in Bolivian natural gas and help Argentina face an energy crisis.
Mr Eduardo Sigal the Foreign Ministry’s international economic relations secretary said that the main reason for Morales’ visit is the opening of the offers from private companies to provide the tubes to build the gas pipeline.
A government spokesman said that two offers will be presented, one by an Argentine company and another from a foreign competitor, but declined to identify them. The spokesman said that the project will be awarded at a later stage.
The pipeline is scheduled to be operative in three years and to expand Bolivian natural gas supplies to 27.7 million cubic feet a day from the current 7 million. The main aim of the pipeline is to supply natural gas to Salta, Formosa, Chaco, Misiones, Corrientes, Entre Ríos, Santa Fe and Buenos Aires provinces.
Aurox signs contracts for Pilbara magnetite plant works
It is reported that Pilbara iron ore developer Aurox Resources Ltd has appointed engineering and manufacturing giants FLSmidth Minerals Pty Ltd and Siemens Ltd to construct its Balla Balla magnetite project, south west of Port Hedland.
Under the deal, the partners will engineer, manufacture and supervise installation of all major components required to commission Aurox's six million tonne per annum Balla Balla magnetite processing plant and related port infrastructure. Aurox will make an initial payment of approximately AUD 8 million shortly, to initiate detailed engineering work and secure key plant components.
Mr Charles Schaus MD of Aurox said that the lump sum contracts had been tendered by both groups, and provide for the scheduled first delivery of concentrate to Port Hedland in the third quarter of 2010. He said "Securing lump sum contracts for the plant and port infrastructure is a huge milestone for Aurox and its shareholders. It moves Aurox a major step towards our goal of becoming WA's first magnetite producer."
Aurox has also signed a Letter of Intent with Siemens to engineer, manufacture and install all major electrical systems including gearless drives for the grinding mills. Firm price contracts are being drafted by both groups with execution expected in approximately 30 days.
Aurox is in advanced discussions with other contracting groups for the balance of plant including earthworks, slurry pipeline and Australian Standards supervision.
The Balla Balla processing plant will incorporate a gyratory crusher and a SAG mill capable of 10 million tonnes per annum throughput in anticipation of the expansion from 6 million to 10 million tonnes per annum in 2014. A second ball mill will be installed as part of the proposed expansion.
Pig ion import prices on rise in Taiwan
It is reported that Taiwan purchased import pig iron with CNF USD 488 per tonne last week, increasing by USD 9 per tonne than CNF USD 479 per tonne.
According to information, global pig iron quotation has reached to more than CNF USD 500 per tonne recently. It is estimated that the lowest buying price is not low than CNF USD 495 per tonne.
Steel packaging sales in Brazil in 2008 to go up
BNamericas reported that Brazilian steel packaging association Abeaço expects sales volume to expand by 4% this year to 603,000 tonnes compared to 580,000 tonnes in 2007.
Ms Thaís Fagury executive advisor of Abeaço said that "Sales in the steel packaging sector in the first half of 2007 alone rose by 3.5%, while the growth of other packaging sectors grew some 2.7% in the period."
Ms Fagury said that increased activity in Brazil's civil construction segment last year led to a rise in sales of paint, a sector in which steel packaging has a 96% market share. Demand for paint by the civil construction segment will continue to grow throughout 2008. She added that the need for steel packaging will also come this year from the local food and beverage industries, among others.
Abeaço was founded in 2003 and boasts members such as Brazilian steelmaker CSN and local can manufacturers CBL and Bertol. CSN is the sole producer of tinplate in Brazil, the material used to manufacture the packaging.
CSC endorses forestation plan
Kaohsiung based China Steel Corp announced that it will foster 20 hectares of land dedicated to forestation on Tatu Mountain in Taichung County of Taiwan.
According to CSC officials, the company's forestation plan forms part of a program initiated by the Cabinet-level Council of Agricultural to develop an additional 20,000 hectares of woodland by 2012 as part of the country's efforts to reduce its greenhouse gas emissions.
The officials said the CSC as a major Taiwan enterprise and a member of the global community, has a moral responsibility to cooperate in government polices aimed at protecting the natural environment, reducing pollution and making profits.
According to the CSC officials, the company has been engaged in forestation since its establishment in 1971. It has created some 48 hectares of forestation around its mills double the size of the Daan Forest Park in downtown Taipei.
Over the past several years, CSC employees and their families have paid more than 65,000 visits to Chungliao and are growing trees in a combined area of around nine hectares to help neighboring villages recover from the catastrophe.
US last week steel production increase by 11%YoY
US domestic raw steel production was recorded 2.084 million net tons while the capability utilization rate was 87.4% in the week ending January 19th 2008 as compared to production of 1.877million net tons in the week ending January 19th 2007 when the capability utilization then was 78.2 %. The current week production represents an 11% increase from the same period in 2007.
Production for the week ending January 19th 2008 is up by1.6% from the previous week ending January 12th 2008 when production was 2.050 million net tons and the rate of capability utilization was 85.9 %.
Adjusted YTD production through May 19th 2008 is 6.161 million net tons at a capability utilization rate of 86. 1%which is 9.4%YoY increase from the 5.631 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 US raw steel capability.
Bangladeshi experts oppose open pit coal mining
It is reported that Bangladeshi energy experts feel that open pit mining for extracting coal in a highly populated country like Bangladesh will seriously affect environment and the people.
During a recent seminar on draft coal policy and the national interest of Bangladesh, organized by progressive engineers and architects' forum at Dhaka reporters' unity auditorium, they highlighted different aspects of the draft coal policy and said there is no scope for trying the open pit mining method in Bangladesh.
Mr Sheikh Manzura Haque presented the keynote paper while Dr Nurul Islam, Dr Mohammad Firoze Ahmed, Dr Anu Muhammad and journalist Nurul Kabir took part at the discussion.
They said open pit mining would cause landslides, as the method will fail to support the 100 to 200 meter sand layer, which contains water, over the coal layer.
The speakers also said foreign investments could not bring in any positive changes for the country. Export of coking coal generated coke, which can make huge contribution to the development of steel industry in the country, will destroy the potentials of the industry here.
Wolf advances on Hemerdon project
It is reported that ASX listed Wolf Minerals has commissioned several companies to update information on the Hemerdon Ball tungsten tin project in Devon, UK with the aim of bringing the mine into production “as soon as possible”.
A new JORC compliant resource estimate will be published next month and the old feasibility study produced by previous owners in 1982 is being updated.
At initially projected annual production rates of 3,000 tonnes per year of tungsten and 500 tonnes per year of tin the mine would generate gross revenues of USD 83 million annually at current prices, with 90% of the revenue from tungsten.
Wolf acquired the project in December 2007, stating that it expected to start up a large scale open pit mining operation within three years.
DEME bags Newcastle dredging contract
It is reported that DEME Group has confirmed that Dredeco Pte Lty a subsidiary of the Belgian dredging and hydraulic engineering contractor has acquired a significant contract for the expansion of the coal export harbour at Newcastle in Australia.
DEME said the contract includes reclamation of land for wharfs, dredging an export harbor and deepening an access channel. A total of 5 million of material will be dredged. The JV will deploy equipment that includes cutter suction dredgers, backhoes and grab dredgers.
The project will take 18 months to complete and should be finished in mid 2009.
DEME said "This project in Australia is another of a series of large scale commodity driven projects on the global maritime infrastructure market. The market is driven by long term factors, such as increases in the global population, the growth of the global economy and international trade volumes and the developments on the energy markets."
Australia to supply coal to Sri Lanka for power stations
It is reported that Australia is looking to supply coal to Sri Lanka's power stations and also provide clean coal and natural gas technology that can improve the efficiency of thermal generation.
Mr Greg French ambassador of Australia at Sri Lanka said that "The government of course has plans to develop coal fired power generation in Sri Lanka and we are very interested in following that up. We believe that we have the best product for firing those coal fired power generation stations as they come on line."
Mr French said that Australia is the world's top exporter of steaming coal for energy generation and coking coal for steel making. Australia is also building the first carbon dioxide sequestered coal fire power plant which will not emit exhaust gas to the atmosphere. He added that "Within a couple of years, Australia will have the worlds first carbon-neutral coal fired power plant. The energy sector has a very exciting area where we look forward to further cooperation."
Australia is also looking to get involved in liquid natural gas plants in Sri Lanka. The country was a major exporter of LNG. Mr French said that "We are also one the world's largest exporter's of liquefied natural gas. In both of those sectors we see significant opportunities in Sri Lanka."
Sri Lanka is already building a Chinese funded 300 MW coal plant in the Western coast of the island and plans are being made to build a joint venture 500 MW coal plant with India's National Thermal Power Corporation in the Eastern coast.
Zimbabwe stops mining power generating coal
Local media reported that Zimbabwe faced a severe new threat to its crippled electricity supplies after coal production for the country's major thermal power station broke down following a power cut. The government owned Hwange Colliery Company stopped mining coal after a power outage.
Mr Burzil Dube spokesman of Hwange Colliery Company said that "Most operations have been stopped. This has greatly affected coal output. It was the first power outage in 2 years at the colliery, which is usually exempted from power cuts on the crippled national electricity grid.”
However, coal production has been repeatedly interrupted by breakdowns in equipment and machinery. The colliery has been producing 30 000 tonnes of coal a month, against a target of 50 000 tonnes. Although the colliery sits on a coalfield with an estimated life of 5 000 years, it struggles to meet national demand.
The colliery is the sole supplier of coal to the adjacent 1,200 MW Hwange thermal power station in north west Zimbabwe.
Zimbabwe has been reeling under a series of nationwide power cuts since Saturday last when whole cities were blacked out repeatedly for hours on end. The blackouts were the worst in the past 2 years, during which continual power cuts have become a way of life in Zimbabwean homes and companies.
Emerging markets spending to reach USD 21.7 trillion - Morgan Stanley
According to a Morgan Stanley research report, infrastructure spending across emerging markets is expected to reach USD 21.7 trillion over the next decade, with Asia representing 67% of the total and the Middle East representing 4%.
As per report, China and India are expected to dominate this spending with 43% and 13% of total forecast emerging market infrastructure spending, respectively, for the next 10 years. Russia makes up 10% of the next 10 year's infrastructure spending with Brazil representing 5% and South Africa 1%, alongside the Middle East's 4%.
One of the key findings from the research is that infrastructure funding is plentiful in most countries, particularly in China and the Middle East, from public and private sector firms. The constraints on delivery are in the availability of contractor services and other human resource and machinery limitations in certain countries.
The report also looked closely at 4 industries of materials, industrials, financials and utilities and examined 15 sectors including construction and engineering, roads and rail, transportation infrastructure and real estate management and development. It showed that the number of infrastructure stocks has risen from 87 to 152 over the last 5 years up by 75% and over the same time, the number of developed market infrastructure stocks has risen by only 12%.
Morgan Stanley said that sovereign wealth funds will also play an important role in funding infrastructure investment cross border between emerging market countries as well as via investment in local financial institutions or directly in projects in certain cases.
Transco to put up PHP 2 billion more in transmission lines
It is reported that the Philippine’s National Transmission Corporation recently signed a PHP 3 billion contract for the construction of additional transmission lines for Southern Mindanao. The project will cover the construction of steel towers, switching stations and the installation of high capacity power lines.
Ms Milfrance Capulong corporate communications officer of Transco in an interview said the construction of the Maramag, Bukidnon to Bunawan, Davao City portion of the Abaga-Kirahon-Maramag-Bunawan 230 kV Transmission Project Line will provide a more efficient transmission of electricity at an increased amount. She said it will be another backbone of the power grid of Mindanao.
According to Ms Capulong the latest project of Transco, it would in a way avert the feared power crisis. She added that there is an annual growth of 6% to 8% in the power demand of Davao City and the increased capacity of the transmission lines will enable the power generators to supply the demand.
Transco is directly transmitting electricity to the Davao Light and Power Corporation, Davao del Sur Electric Cooperative, Davao del Norte Electric Cooperative, Davao Oriental Electric Cooperative, as well as to the private firms of Apex Mining and Holcim.
South Korean economy grows 1.5% in Q4 of 2007
Korea’s economy expanded by 1.5% in the October to December 2007 quarter accelerating from 1.3% in the preceding quarter, as exports and facility investments jumped. The fourth quarter GDP figures were higher than a 1.2% on quarter expansion and a 5.2% annual rise predicted by 11 analysts surveyed by Yonhap Infomax, the financial news arm of Yonhap News Agency.
Compared with a year earlier, the gross domestic product rose by 5.5% in the October to December period up from 5.2% in the preceding quarter. In 2007, the economy advanced 4.9% from a year earlier, up from the central bank’s earlier projection of 4.8%. However, it was a slowdown from a 5 percent growth in 2006.
In the fourth quarter, exports, which make up nearly 40% of the economy rose by 7.3% from three months earlier, up from 1.5% in the third quarter, on brisk outbound shipments of machinery and wireless communications equipment. Facility investments, mainly on machinery, grew by 4.4%, a sharp turnaround from a 6.3% dip in the previous quarter.
Construction investments gained 0.4 percent, a turnaround from a 0.5% fall. Private spending, one of the main growth engines of the South Korean economy, advanced 1.1%, down from 1.2% in the preceding quarter.
Manufacturing expanded by 3.4% up from 2.7% in 3 months earlier, on increased production of semiconductors and machinery. The construction sector rose 0.4%, compared with a 0.2% drop three months earlier. However, the service sector grew 0.5 percent, down from 1.8 percent in the third quarter, as the financial and insurance industries sank.
Meanwhile, India’s gross domestic income, reflecting the actual purchasing power of the population, rose by 0.5% on quarter in the fourth quarter, down from 1.4 percent three months earlier, as terms of trade worsened amid soaring costs of raw materials.
Indian AR Group in talks for rolling mill JV in UAE
It is reported that Indian manufacturer of medium and heavy mechanical engineering equipment AR Group is discussing with several local partners in the UAE to set up a steel rolling mill for the production of rebars and sections.
Mr Shitij Kapoor director of AR Group said that “UAE is facing shortfall of steel, as it is able to meet only 20% of its demand through local production. The steel industry in the UAE is facing shortfall of 73%. In addition, the overall demand in the GCC is growing at 19.3% YoY.”
Mr Kapoor said that “With a mix of imported sponge iron and steel scrap available in abundance in the GCC, AR would be able to produce structure angles steel required for high rise buildings.
Mr Kapoor said “The steel grade produced by AR Group complies with European quality standards. The company will also produce round bars for smaller storey buildings. This will bring the cost of steel prices down by 30%.”
Foreign investors interested in Pakistan steel sector -Report
Mr Salmaan Taseer minister for industries, production & special initiatives of Pakistan said that a number of foreign investors are interested to invest in steel sector in Pakistan.
Mr Taseer said that steel is the fastest growing industry in Pakistan with a lot of potential for the foreign investment. The foreign funds especially the investors of the Middle East are very much interested in making investments in Pakistan and steel is one of the major areas for their investment. He added that “There is a flood of money around the world especially in the Gulf States and we have to make efforts to attract this investment.”
Mr Taseer said that Indian industrialists have not put the entire local money there and it was the foreign direct investment that had led to industrial boom in that country. Pakistan is playing the role to help industrial sector work efficiently. He added that “It is government’s job to provide enabling environment with an objective to accelerate the economic activity in the country.”
Mr Taseer urged the steel sector to attract foreign investment from different parts of the world by adopting the much-required concepts of good governance in their businesses. He added that “The government has always showed an encouraging response to the investors and businessmen.”
Mr Muhammad Javed chairman of Pakistan Steel Mills said that it is working efficiently like any commercial entity. He added that “We are much alive to our role of stabilizer in the market.”
US to transfer cheap electricity technology to Pakistan- Report
Mr Bryan D Hunt principal officer of US consulate, in a recent meeting with Mr Muhammad Ali Mian president of Lahore Chamber of Commerce & Industry, said that US is all set to transfer technology to Pakistan that could help to generate cheaper electricity through use of hydel, coal and windmill methods instead of going for producing expensive electricity through nuclear technology.
He said that US could help Pakistan to produce cheaper electricity through coal and his country is ready to help Pakistan for construction of water reservoirs.
He added that US has already given USD 500 million aid to Pakistan and would extend further support, especially for education and health sectors.
L&T bags major contract for Kuwait's clean fuel project
It is reported that Larsen & Toubro has bagged the contract worth USD 421 million to manufacture and supply of 22 hydro cracker and atmospheric residue desulphurization reactors for Kuwait National Petroleum Co's clean fuel project 2020.
The proposed order is the largest export order ever placed with any single manufacturer in the world for such critical reactors. These reactors will be manufactured from advanced technology steels containing Chromium, Molybdenum and Vanadium, with thickness up to 300 mm and weights up to 1450 tonnes per annum.
L&T will manufacture these critical reactors in its state of the art facilities at Hazira works. These reactors are required to be delivered to the refinery in Kuwait by December 2010-11.
First monorail in MEA nearing completion
It is reported that the first monorail in Middle East will be ready to transport commuters along The Palm Jumeirah by the end of 2008 as more than 90% of the work has been completed on the 5.4 kilometer track that runs from the top of The Palm’s crescent and down the length of its trunk.
Work began in 2006 on the mass transit system. When complete, it will have 4 stations namely Gateway Towers, Trump Tower, a retail centre and the Atlantis Hotel, currently under construction on the crescent. A depot and an operations control centre have been planned for the route.
The monorail will initially carry 4 trains, each of 3 carriages. Eventually, 9 trains will travel the length of The Palm Jumeirah at 5 to 10 minute intervals using an automatic train operating system. Nakheel said that there would be space for 361 passengers per vehicle, so the monorail will initially carry up to 2,400 passengers per hour in each direction. At full capacity, the figure will rise to a maximum of 6,000 people in 9 vehicles.
Mr Aaron Richardson senior spokesperson for Nakheel said that “Construction work is right on schedule and we expect the system to be operational by late 2008.” He added that piers were currently being constructed in the water at the north end of The Palm, between the trunk and the crescent, on its way to the fourth station at Atlantis. The monorail track is expected to be completed by the middle of this year and the system will then undergo 6 months of testing.
Mr Richardson said that discussions were ongoing over how The Palm Jumeirah monorail system can connect with the Dubai Metro or with the Al Sufouh tram link. He added that “The idea is to ensure complete connectivity so that tourists can leave Dubai International Airport on the Metro and continue through to The Palm, where they change over to the monorail system and move onwards to their hotel.”
Emirates Aluminum awards power island contract to GE
Emirates Aluminium Company Limited has announced that it has awarded AED 1.8 billion power island contract to General Electrical International Operations Company Inc. The power plant will be a natural gas fired combined cycle plant with supplemental duct firing and dual fuel operations.
This contract includes the following equipment
1. Six 9FA GE combustion turbine generators
2. Four bypass stacks for simple cycle operations
3. Four heat recovery steam generators with exhaust stacks
4. Two steam turbine generators
5. Two sea water cooling surface condensers
The project is scheduled to start receiving GE equipment in December 2008, ending with the last equipment deliveries in July of 2009. The first phase of the project is scheduled to be complete in 2010.
The Emirates Aluminum Company Limited smelter project consists of a 700,000 tonnes per year aluminium plant with a supporting 2,000 MW power plant. When both phases of the Emirates Aluminum Company Limited smelter plant are completed the plant will be the largest for aluminum production in the world.
Emerson gets supply order from Reliance Petroleum
It is reported that Emerson Process Management has secured a USD 19 million contract to supply metering systems to Reliance Petroleum Limited.
According to the contract, Emerson will engineer and deliver the multi run high performance oil and gas metering systems. High integrity custody transfer measurement is required for fiscal accounting and taxation purposes.
The Daniel model 3804 liquid ultrasonic meter will be used to determine fiscal transfers of all petroleum products ranging from heavy crude to light hydrocarbon processed for the export market. The Daniel devices were chosen for their cutting edge technology and reliability in this critical custody transfer application.
Mr Mike Train president of Emerson Asia Pacific said that “We are delighted to be entrusted with the vital fiscal metering responsibility for this major refining and petrochemical project of Reliance Petroleum Limited. This major project will have us supplying oil and gas metering systems that play a key role in ensuring that the project is a financial success by providing accurate fiscal measurement.”
It is noted that Reliance Petroleum Limited is set to make history by constructing a Greenfield petroleum refinery and polypropylene plant at a special economic zone in Jamnagar in India.
Iran likely to resume gas supplies to Turkey next week
Mr Hilmi Guler energy minister of Turkey said that he expects Iran to resume gas exports by next week, ending a 2 week cut forced by cold weather and a consumption crunch in Iran.
Mr Guler said that "Iran is working on this issue. The pressure in the pipeline increases from time to time and then decreases. But I believe the gas will flow again next week."
It is noted that Iran interrupted the gas flow to Turkey on January 7th 2008, six days after it had to slash its exports to Turkey from 20 million cubic meters a day to 5 million cubic meters a day. In addition to the cold snap in Iran that peaked domestic consumption, Turkmenistan also stopped sending gas to the Islamic republic. Turkey in turn was forced to stop its gas exports to western neighbor Greece and increase its imports from Russia.
In January 2007, Iran was forced to stop gas to Turkey for 5 days to compensate for a similar domestic increase in consumption.
Turkey has been buying gas from Iran via a pipeline from the northwestern city of Tabriz to Ankara since December 2001 under a deal that raised eyebrows in the United States.
Jafza to build USD 800 million Senegal SEZ
Khaleej Times reported that Dubai World Group's Jafza subsidiary has signed a USD 800 million deal to build and run a special economic zone in Senegal.
Mr Sultan Ahmed bin Sulayem chairman of Dubai World said that construction would start before the end of 2008 on the first phase of the project, covering 650 hectares next to a planned international airport 45 kilometres from the capital Dakar.
He added that Operations are due to begin in 2010 and should attract 1,000 companies and create some 30,000 direct jobs. Mr Sulayem said that "This will be an example to many African countries that when free trade operates with government support, you will see that businesses will come."
It is noted that Senegal hopes its strategic location between markets in the Americas, Europe and Asia will entice businesses to the low tax area, one of the first of its kind on the continent. The government has reserved a total of 10,000 hectares for the expansion of the zone, with the possibility of constructing a power station and refinery nearby to tackle a shortage of electricity capacity which has been one of the main obstacles to foreign investment.
Another affiliate of the Dubai World Group, ports operator DP World, in October 2007 signed a 25 year concession to develop and operate Senegal's main container port and invest more than USD 600 million in future port expansion. This involves plans to build a new shipping terminal near the Senegalese capital.
GCC set to sign FTA with India, China and EU in 2008
Dr Mohammed Khalfan bin Kharbash state minister for financial & industrial affairs of UAE said that GCC will conclude free trade agreements with China, India and European Union in 2008 which would boost industrial cooperation, trade and business.
Mr Kharbash said that "Investments worth AED 73 billion were attracted by end of 2007 reflecting a big leap towards industrialization. From virtually small workshops in 70s we graduated to small and medium scale industrial units in the 80s and now the UAE has a large scale industrial sector which utilizes the nation's comparative advantage in the area of energy, geo graphical proximity and capital."
Dr Kharbash said that as part of the UAE federal government's strategy, the minister for financial & industrial affairs recently finalised the development and conceptualization of the best practices in boosting the industrial sector.
He further added that "GCC member states are of growing political and economic importance. The world watches the sustainable growth of the GCC economies with amazement. In the current era of globalization, the Gulf Cooperation Council is of vital importance for our world and will emerge as a major economic and political contributor in the near future."
RZD to bid for Bahrain and Qatar link
It is reported that Russian Railway RZD plans to participate in the tender for construction of 40 kilometer long bridge between Bahrain and Qatar in 2008, as RZD has passed prequalification and acquired the right to conducting civil works in Bahrain.
Other potentially interested rail projects that RZD could engage in are expected to be announced in Algeria, Iran, Libya, Northern Korea, Bulgaria and a number of other countries.
Coal shortages in China attributed to excessive demand
Interfax cited a coal producer in Shanxi Province as saying that the coal shortage that China's coal fired power plants are currently experiencing is mainly due to excessive demand and that it will last until March.
He said that "Snow and rain are not the major reasons for the coal shortage this time. Production from China's coalmines has not been able to keep up with increasing demand from the domestic market. This is the main reason for the current emergency."
With the upcoming Spring Festival in early February, most small or middle sized coalmines in Shanxi have ceased operation for the holiday. Even some big coalmines will temporarily stop production for the holiday.
On January 23d 2008, the National Development Reform Commission announced a new regulation requiring national coal producers to continue normal operations during the Spring Festival, in an effort to meet the demand of coal fired power plants. NDRC has also said that coal producers should not take advantage of the coal emergency to raise coal prices.
Previous media reports had put the blame for China's current coal crisis mainly on transportation problems.
Handan rejects Tangshan merger offer
The official Shanghai Securities News cited Mr Liu Rujun chairman of Handan as saying that Handan Iron & Steel Group has rejected a takeover offer from Tangshan Iron & Steel Group and is instead considering a new restructuring plan.
The report cited Mr Rujun as saying that the new restructuring plan would take a three steps approach, including acquiring stakes in other medium and small steel makers in Hebei province, production capacity expansion as well as introducing foreign strategic investors.
Mr Rujun said that Handan Iron & Steel Group, the parent of Handan Iron & Steel Co Ltd, is considering acquiring stakes in Xingtan Iron, Shijiazhuang Iron and private steel makers in northern China's Hebei province.
He said Handan plans to build a steel plate production base with annual capacity of 3 million tonnes in Hengshui and a 10 million tonnes capacity steel plant in Cangzhou. He added that the firm is also seeking foreign strategic investors in a move to expand to overseas markets.
Baosteel plans to build special seamless tube mill in 2009
It is reported that Baosteel is planning to build a special seamless steel pipe factory in 2009, with designed capacity of 23,000 tonnes per year at an estimated investment of USD 37.5 million in 2009.
As per report, once completed, the factory will make nickel alloy steel pipe, titanium alloy pipe, duplex stainless pipe and austenitic stainless pipe, to be used in domestic nuclear power stations, the oil prospecting, power and chemical industries.
Last year, Baosteel co funded a special steel pipe venture with Yinhui precision pipe co, which is able to produce 500 tonnes per year 690-U tube, with raw materials supplied by Baosteel.
Currently, Baosteel's special steel branch is capable of making 2000 tonnes special seamless pipe per year, while it has a scheme to raise total special steel pipe capacity to 1.5 million tonnes per year by 2012, representing a over 50% jump.
China orders ban on coal export loading
It is reported that China's Transport Ministry has ordered ports to temporarily stop loading coal for exports as the country struggles to meet domestic needs amid mounting power shortages. The coldest winter with the most snow in decades has left millions of Chinese without heating and running water, causing mounting losses from power shortages and other damage.
The Transport Ministry's emergency notice, posted on its Website, ordered railways and other transport networks to make hauling coal and food a priority over coming weeks. It said “Ocean shippers should stop loading coal for export and divert shipments, if needed for domestic thermal coal requirements.”
It has warned of severe consequences for failing to comply with the order, to stay in effect through the Lunar New Year holiday in February.
It is unclear the amount of coal shipments that would be affected by the order.
Chinese industrial output in 2007 up 18.5% YoY
Mr Xie Fuzhan director of the China National Bureau of Statistics said Industrial output jumped up by 18.5% in 2007 or 1.9 percentage points more than in 2006.
Mr Xie said output growth rates were 13.8% for state owned enterprises and organizations in which the state holds controlling stakes and 17.5% for foreign, Hong Kong, Macao and Taiwan invested businesses.
According to Mr Zhang Liqun a researcher at the Development Research Center of the State Council that Industrial output and gross domestic product could both expand more slowly this year as the sub prime crisis and a potential recession in the United States could reduce demand for Chinese exports.
Industrial output growth decelerated from September onward, as the government's tightening measures took effect. The YoY growth figures for September and October were 18.9% and 17.9% respectively. The rates for heavy and light industry were 19.6% and 16.3% respectively.
Pansteel profits in 2007 brake all records
It is reported that Pansteel business earning was CNY 36.7 billion in 2007, and profit was CNY 2 billion, up by 7.36%, 183% year-on-year respectively. The output of iron is 6.95 million tons, steel is 6.44 million tons, iron and steel products is 6.12 million tons.
In 2007, Panzhihua Company accurately grasped the market trend, resource structure and variety of structural adjustment, actively explored the domestic and international markets, and strengthened security for fuel and transportation coordination.
Chinese nickel imports in 2008 likely to remain flat due to substitution
It is reported that Chinese nickel imports are expected to remain flat in 2008, as a weaker global economy keeps nickel demand in check while nickel pig iron continues to provide stainless steel makers with an alternative raw material.
Ms Xu Aidong an analyst with state consultancy Antaike said that "The gap between nickel demand and supply will continue to be around 100,000 tonnes. We expect China to import about 100,000 tonnes in 2008. He said that slower global economy will put pressure on metal prices, which will make nickel pig iron less attractive to produce. She forecast nickel prices will average USD 27,000 per tonne in 2008.
A Shanghai based analyst said that "Imports will fall because the macro economy and industry are both weak."
Mr Hao Peigang a senior economist at Taiyuan Iron and Steel said that "Since nickel pig iron has become a major source of nickel for the stainless steel industry in China, the impact of the possible merger of VALE and Xtrata wouldn't very significant, unlike that of BHP Billiton and Rio Tinto on iron ore. He said that thanks to nickel pig iron, we have felt a lot better in nickel price negotiations in recent years.”
Official customs data showed recently that China's refined nickel and alloy imports rose by 8% YoY in 2007 to 105,300 tonnes, while exports fell by 25% YoY to 16,930 tonnes. Chinese import of nickel matt also rose by nearly 8% YoY.
Wenzhou merchants to fund development of iron Ore in Shanshan
It is reported that some merchants from Wenzhou in Zhejiang Province have established a Zhongya United Iron Industry Co Ltd in Shanshan County of Xinjiang for funding CNY 1 billion in building a direct reduction pellet production base.
Promoted by the local C of C, City College Wenzhou University entered into intended cooperation agreement with the municipality last year and established Zhongya Iron Industry Co Ltd aiming to build a 1 million tonnes per year direct reduction pellet line in Shanshan County.
Shanshan County is reportedly rich of iron ore resources, but for lack of technology, the resources have yet to be explored and mined.
Chinese tin production in 2007 up by 7.4% YoY
ITRI reported that, according to provisional non ferrous metals production figures released by China’s National Bureau of Statistics, refined tin production rose by 7.4% YoY to 149,102 tonnes in 2007. China’s December 2007 output is reported at 12,682 tonnes up by 2.3% YoY.
ITRI believes that the NBS data slightly over states China’s production in 2006 and 2007 due to some double counting. It said “Output in the second half of 2007 may also include some re refining of tin imported from LME warehouses in Singapore and Korea.”
ITRI added that “The data nevertheless confirms China’s status as the world’s number one tin producing country by a substantial margin.”
Ausmelt signs 9th contract for smelter in China
It is reported that Ausmelt Ltd has recently signed a major new contract with a leading Chinese metals producer to provide Ausmelt TSL Technology for a new copper smelter to be built in the People's Republic of China.
The client company has requested confidentiality until its Board of Directors has approved a suitable starting date for the project. Work of new project is expected to begin towards the end of the March quarter. When completed, the project will be the ninth Ausmelt Technology smelter operating in China.
Mr Paul Abbott MD of Ausmelt said that “The growing Chinese metals market and China’s requirement for environmentally sustainable smelting technology are creating new business opportunities for Ausmelt technologies. He said the company is currently working on six Chinese smelting projects and Ausmelt technology is becoming the technology of choice for many Chinese metals producers.”
Mr Abbott said Ausmelt’s top submerged lance smelting technology had now been adopted in China to produce copper, nickel, lead and tin. He said that the latest contract would begin contributing to earnings during the June quarter of 2008.
Probe points to negligence for Zasyadko coal mine blast
AP reported that negligence by coal mine managers eager to ratchet up output led to a methane blast that killed 101 workers in Ukraine's biggest coal mine Zasyadko in the eastern city of Donetsk on November 18th 2007. In addition to the colossal toll of the blast and its immediate aftermath, five cleanup workers were killed and dozens were injured in two explosions at the mine over the following two weeks.
Mr Oleksandr Turchinov first deputy prime minister of Ukraine who heads the government commission investigating the tragedy said the push by mine managers for greater output led them to ignore safety rules.
He said “The main problem was that the mine's work load was colossal. The volumes of production were such that it was very difficult to observe all the safety norms. As result we had this horrifying death toll.”
Mr Turchinov said the methane blast occurred at a depth of some 1,300 meters and was probably caused by a spark from faulty electronic equipment. He said that while the mine was supplied with the necessary ventilation and other equipment, it was pushed to the limit of its capacity at the expense of safety precautions.
Mr Turchinov said the example of Zasyadko showed that there are no production tasks that can cost the lives of hundreds of people. And in this hunt for profit, very often those who run the mines forget that this profit turns into blood.
Evraz increases stake in West Siberian Heat and Power Plant to 100%
Evraz Group has announces that, through its subsidiary, it has completed the buyout of all outstanding common stock of West Siberian Heat and Power Plant.
The procedure was carried out in accordance with the Russian legislation through mandatory offers to all minority shareholders. As a result of the buyout, ZapSibTETs has become Evraz’s wholly owned subsidiary.
The Plant has a nominal capacity of 1,307 giga calorie per hour of heat and 600 MW of electricity. Heat and electricity are mainly consumed by ZSMK, one of Evraz’s steel mills in Russia.
United Ferroalloy 2007 sales up by 110% YoY
FIS reported that United Ferroalloy Systems recapped the results of 2007.
Its total sales with VAT totaled RUB 3,511 million, 110% more than in 2006.
Supplies were conducted to 230 customers, about 28,000 tonnes of ferroalloys and non ferrous metals were shipped.
Search for MV Kapitan Uskov in East China Sea continue
Interfax reported that Searches for the Kapitan Uskov Bulk carrier that went missing in the East China Sea continue.
The Vladivostok naval rescue coordination center is carrying out a search and rescue operation together with Japanese, Chinese and South Korean services.
It was reported earlier that a Japanese coast guard aircraft was searching for the missing vessel in the area of its last communication and along its proposed route. Due to the fact that many naval routes go along the search area, the possibility of finding the vessel is high. The incident is being managed by the federal transport oversight service.
As per report no communication has been established with the Kapitan Uskov bulk carrier, which was to arrive on Thursday in Hong Kong with a cargo of metals. The ship owned by Alazara Navigations has a crew of 17 Russian citizens. The vessel, sailing from Nakhodka to Hong Kong, started its voyage on January 15th 2008.
Vladivostok Port freight turnover in 2007 up by 20%
FIS reported that freight turnover of Vladivostok Port OJSC in 2007 was equal to 4,855,800 tonnes.
223,496 TEU accounted for +40% of total cargoes handled, cars and machines 262,909 items for +2%. Transshipment of metals and hardware slumped by 14% to 945 thousand tons, including 259 thousand tons of slabs.
On the import side, the port handled 92,000 tonnes of large size pipes. Metal scrap handling grew to 434,000 tonnes.
Russian Coal mines 1.175 million tonnes at Inskoye in 2007
Interfax reported that Russian Coal units developing the Inskoye deposit in the Kemerovo region mined 1.175 million tonnes of coal in 2007. The Zadubrovsky open pit mine produced 1.083 million tonnes of coal and removed 5.116 million cubic meters of overburden.
The company is considering in the next few years making the Belorussky pit a section of Zadubrovsky, which will mine the No 9 coal seam.
It was reported earlier that the company invested 384 million rubles in the construction of the Belorussky mine, which has reserves of 13 million tonnes of coal and design capacity to produce 500,000 tonnes per year.
Russian Coal owns coal assets in the Rostov region, Kemerovo region, Khakasia and Amur region.
Kazakhstan to raise gas transit fee
Reuters reported that Kazakhstan plans to raise its fee for the transit of Turkmen and Uzbek gas to Russia to USD 1.4 per 1,000 cubic meters across 100 kilometer from USD 1.1. The new fee will come into effect on April 1st 2008.
The report added that "The companies have reached a preliminary agreement and the negotiations will be carried out shortly to sign the documents."
Gas supplies from Central Asia help Gazprom, the world's largest gas producer cover demand in the former Soviet world as well as Europe to offset stagnant output in Siberia. As per report Russia's Gazprom buys about 55 billion cubic meters of Central Asian gas annually and resells it mostly to Ukraine.
Mitsubishi to ink pact for assembly plant at Kaluga
Interfax cited Mr Dmitry Levchenkov deputy head of investment policy at the Russian Economic Development and Trade Ministry as saying that Mitsubishi will sign an agreement with Russia's Kaluga region on the construction of an assembly plant by the end of this quarter.
He said "The agreement will be signed during the first quarter."
Mr Levchenkov said Mitsubishi is thinking of building and operating some production capacity in conjunction with Peugeot Citroen. He said the companies will have separate assembly lines, but they could combine welding and painting shops. The companies are discussing this issue.
Russian Railways and North Korea to establish JV
Mr Vladimir Yakunin head of Russian Railways announced that the company and the Government of North Korea came into agreement to establish a JV which will be responsible for the modernization of rail road Khasan.
Mr Yakunin pointed out that Russian Railways will operate terminals at the port of Radjin.
Currently project documents on the rail road modernization are being worked out. It is planned that the project will be ready by the summer of 2008.
