TATA Steel may complete land acquisition for Chhattisgarh project by 2008

Ranchi Express reported that the tricky business of land acquisition for TATA Steel's plant in Chhattisgarh Bastar region is likely to be over by the end of 2008 with some plot holders already receiving compensation cheques.

Mr Ganesh Shankar Mishra district collector of Bastar said that a section of the 1,707 plot holders had agreed to give up their land for the project in Lohandiguda block of Chitrakote assembly segment. He added that "The protest has started melting with over 150 plot holders of four villages owning about 70 hectares receiving cheques of over INR 3 crore."

According to Mr Mishra, cheque would be distributed for the next few days with the takeover process likely to be completed by year end. He said that the administration had made arrangements for opening zero balance bank accounts for those receiving cheques.

It may be noted that TATA Steel had signed a MoU with the Chhattisgarh government in June 2005 to invest INR 100 billion to build a 5 million tonnes per annum steel plant in 2 phases in the hilly Bastar district. The planned project covers 10 villages where 1,707 plot holders, mostly tribals, have to agree to hand over 2,063.06 hectares to the company for the plant and the township. Out of the project's total land requirement, 86.5% is privately held and the rest belongs to the government's revenue and forest departments.

In September 2007, the state government had announced a compensation package for the project and said that TATA Steel would pay INR 100,000 per acre of barren land, INR 150,000 per acre for mono cropped land and INR 200,000 per acre for multi cropped land, besides employing one adult from each displaced family.

Indian government likely to raise natural gas price by 16%

It is reported that union government is likely to raise the price of natural gas produced by ONGC and Oil India Limited by 16% and index it to inflation rate. Union oil ministry has proposed to the cabinet raising prices of natural gas produced by ONGC from fields given to it on nomination basis to INR 3.71 per cubic meter from current INR 3.2 per cubic meter. For OIL, the gas price has been proposed at INR 4.15 per cubic meter.

Sources said that the price would change by INR 55 per thousand cubic meters for every 10 points change in wholesale price index. Price of gas produced by ONGC and OIL from fields given to them on nomination basis, called the Administered or APM rate, were last revised in June 2005.

Consumer price for power and fertilizer units outside north east may be fixed at 10% above the producer price at INR 4.081 per cubic meter, while for the plants in NE it would be 60% of the price at INR 2.449 per cubic meter.

Consumer price for transport and small consumers outside NE may be fixed at 20% above the price for power and fertilizer sectors at INR 4.897 per cubic meter. The difference between consumer price and producer price outside NE would be transferred to ONGC for research and development activities for maintaining or increasing the production of gas from nominated fields. All natural gas produced from nominated gas fields will be treated as APM gas, while the fuel produced from new fields would be allowed to be sold at market price.

Saraf Agencies inks JV with Russians for titanium project

SNS reported that Saraf Agencies Private Limited has signed a 45:55 JV agreement with the Russian Federation and Technochism holding for setting up of a titanium project at Chhatrapur in Ganjam district. The cost of the project is around INR 2,000 crore and is expected to come up in 3 years.

Titanium slag, titanium dioxide, pig iron and titanium sponge would be produced from the plant. The production capacity of slag will be 1,08,000 tonne per annum out of which the production of titanium dioxide will be 40,000 tonne per annum and of pig iron 68,000 tonne per annum. The unit expects to produce 10,000 tonne titanium sponge per annum. Saraf group also plans to set up a special economic zone with an approximate area of 600 acres for the beach sand mineral based industries. The Russian federation is going to join hands with the group in developing the SEZ.

Mr SM Shroff group chairman of Saraf said that the smelting technology for production of titanium slag from ilmenite will be environmental-friendly and added that India will be the fourth country in the world besides Canada, Norway and South Africa to produce titanium slag with minimum 90% titanium content.

Mr Shroff said that titanium sponge is the most prized product of the project and hoped that India will soon find its place as one of the largest producers of sponge. High quality pig iron, ideally suited for precision casting machine parts will be a co product. At least 1,500 people will get employment.

JSW Steel to set up 300 MW captive power plant

BS reported that JSW Steel is planning to set up a 300 MW captive power plant at an investment of INR 8.25 billion to be commissioned by 2010. It will raise INR 5.5 billion by way of debt and the balance out of cash accruals.

JSW Steel also plans to set up a 6 million tonnes per annum integrated steel plant in West Bengal through its subsidiary JSW Bengal Steel. The project cost is estimated at INR 150 billion to be raised by way of equity of INR 50 billion and debt of INR 100 billion in JSW Bengal Steel.

NTPC Q3 net dips by 15.3% YoY

National Thermal Power Corporation Limited has announced the following Unaudited results for the quarter ended December 31st 2007.

NTPC has posted a net profit of INR 17,799 million for October to December 2007 quarter down by 15.37% YoY as compared to INR 21,033 million for October to December 2006 quarter. Its total Income has increased from INR 93,110 million for October to December 2006 to INR 100,932 million for October to December 2007.

SAIL board declares interim dividend

Steel Authority of India Limited has announced that its board of directors, at its meeting held on January 29th 2008, has approved interim dividend at 19% of the paid up equity share capital for the financial year 2007-08.

Star Emmsons acquires coal mines in Indonesia

It is reported that Star Emmsons Resource, 70:30 JV between Dubai’s ETA Star Group and India’s Emmsons International Limited, has acquired Indonesia’s Bara Energy Makmur in an attempt to line up supplies for a plant its parent is setting up in Tamil Nadu and to trade in coal.

Star Emmsons’ newly acquired mines in Indonesia will have a production of 12 million tonnes a year and half of this will go into feeding the Tamil Nadu power project and the rest will be traded. ETA Star Group also plans to build a ship terminal as part of the project to receive the imported coal.

Mr M Tariq Raza resident director of ETA Star India Projects Private Limited said that “The acquisition is in line with our company’s strategy to become an integrated power generation company, and enter the coal import business in India. We will enter the coal import business in India on the back of our coal blocks. The coal block has coal seams of 15 meter size with ash content in the coal around 2% to 4%.”

ETA Star and Emmsons already trade in and source coal from Indonesia, South Africa and other African countries as well as China. ETA Star is setting up a 1,200MW coal based power project in Tamil Nadu at a cost of INR 6,000 crore.

Rotterdam Port eying Indian market

It is reported that Dutch port of Rotterdam is expecting to expand into India this year and is close to finalize a tie up with Indian builder Larsen & Toubro Limited.

Mr Pieter Struijs COO of Rotterdam said that "We are investigating several possibilities, more than one possibility hopefully this year."

However Mr Struijs denied talks with Larsen & Toubro for a Greenfield port. He said that "That is a wrong message. We have no connection with Larsen & Toubro."

FACOR Q3 2007 net profit up by 137% YoY

Ferro Alloys Corporation has posted a net profit of INR 137.27 million for the October to December 2007 quarter up by 358.6% YoY as against INR 29.93 million in October to December 2006 quarter. Net sales stood at INR 787.48 million up by 48.33% YoY as against INR 530.91 million while total income has recorded at INR 794.20 million up by 48.26% YoY as compare to INR 535.69 million.

FACOR manufactures standard grade high carbon ferromanganese and other ferroalloys complementary to ferromanganese production, such as low carbon ferromanganese, ferrosilicon, special iron phosphorous and such other ferroalloys. Its ferroalloys plant is located in Andhra Pradesh, the steel works plant is located in Maharashtra and the charge chrome works plant is located in Orissa. It is currently exporting ferroalloys to 30 countries including the USA, Japan, Germany and Britain.

World Bank to aid power projects in India

Discussing the role of World Bank in India's power sector, a senior analyst of World Bank told Project monitor that state owned projects will form a crucial component of the bank's lending in coming years.

During 2007-08, the bank will lend to a USD 300 million project for rehabilitation to coal fired power stations of the state owned generation companies of Maharashtra and West Bengal namely Mahagenco and West Bengal Power Development Corporation. World Bank will also support 444 MW Vishnugad Pipalkoti hydropower project in Uttarakhand. The USD 500 million project, targeted to commission within the 11th Plan period, is being implemented by Tehri Hydro Development Corporation.

In 2006, World Bank had lent USD 400 million to Power Grid Corporation of India Limited under the third power system project development for India, which aims to strengthen the transmission system to increase reliable power exchanges between the regions and states of India. The project would support PGCIL's investment program of system strengthening in various regions and developing inter-regional transmission links to enhance the power exchange capacities, eventually helping enhance the national power grid.

Indo Tech Transformers to double capacity

BL reported that Chennai based Indo Tech Transformers Limited will double its transformers manufacturing capacity to 7,450 MVA soon with the inauguration of its 5th 4,000 MVA new manufacturing facility during the second week of February 2008.

Mr PS Jagdish director of Indo Tech Transformers Limited said that the objective of setting up the Greenfield facility at Kancheepuram was to focus more on manufacturing power transformers up to 315 MVA capacity in 400 KV class. He added that “This would give the company lot of scope to grow by catering to the emerging demand in the domestic as well as exports markets. Till now, it has been manufacturing power transformers with a maximum capacity of 100 MVA in 220 KV class.”

Mr Jagdish said that it has received INR 20 crore worth of order from a couple of companies in Europe and Africa. At present, the share of exports in total sales is less than 1%, but would reach 20% in 3 years. He added that, to support capacity expansion, it would add 200 more employees to the existing 394 people.

Indo Tech Transformers Limited already has three manufacturing facilities in Chennai and one at Palakkad in Kerala. Indo Tech Transformers Limited makes distribution transformers at Palakkad with an installed capacity of 200 MVA and Thirumazhisai near Chennai with an installed capacity of 750 MVA. It also has power transformers manufacturing unit at Thirumazhisai with an installed capacity of 2,400 MVA. It recently commissioned a dedicated manufacturing facility to make open ventilated dry type transformers in technical collaboration with EI Dupont, with an installed capacity of 100 MVA.

During 2006-07, Indo Tech Transformers registered a turnover of INR 155 crore and in the current fiscal it hopes to report INR 210 crore. With additional capacities becoming operational fully, it hopes to cross the INR 500 crore mark by 2009-10.

Dredging Corporation Q3 2007 net profit dips by 35% YoY

Dredging Corporation of India Limited has announced the following unaudited results for the October to December 2007 quarter

DCIL has posted a net profit of INR 148.90 million for October to December 2007 quarter down by 34.9% YoY as compared to INR 228.90 million in October to December 2006 quarter. Total Income has recorded at INR 1572.50 million up by 10.3% YoY as against INR 1424.50 million.

TATA Power Q3 2007 PAT dips by 29% YoY

TATA Power Company Limited has announced the following audited results for October to December 2007 quarter

TATA Power has posted a net profit after tax of INR 1972.80 million for October to December 2007 quarter down by 29.5% YoY as compared to INR 2799 million in October to6December 2007 quarter. Total income has recorded at INR 14608.40 million up by 17.2% YoY as against INR 12457 million. Revenues rose by 18.3% YoY to INR 1,419.40 crore as compared with INR 1,199.72 crore.

According to the consolidated figures, profit before tax grew up by 48.2% YoY to INR 195.97 crore in October to December 2007 quarter as against INR 132.23 crore in October to December 2006 quarter.

TATA Power has posted net profit of INR 644.91 crore in April to December 2007 period up by 6.8% YoY as against INR 604.07 crore in April to December 2006 period. Revenues rose by 13.6% YoY to INR 4,281.44 crore as compared with INR 3,767.92 crore.

Ennore Port plans RO RO terminal

It is reported that many Indian ports are looking to build dedicated terminals for ships that ferry cars to cater to the increasing demand for export of cars as more global auto makers set up factories in India to produce cars for both the local and export markets.

The latest to join the bandwagon is Ennore Port Limited in Tamil Nadu. Ennore Port plans to set up a dedicated terminal to meet the demand from car makers located in and around Chennai.

Mr A Rajagopalan director operations at Ennore Port said that "There is a big demand from car manufacturers such as Nissan and Renault in Chennai for export of cars through Ennore Port. We plan to set up a dedicated car terminal to facilitate their exports."

Mr Rajagopalan said that the planned car terminal at Ennore port will have a capacity to handle 200,000 cars a year. The berth will have a depth of 12 meter, enabling ships with a capacity to load 5,000 cars to call at the port. The terminal will be constructed and operated by the port.

Roll on roll off ships are designed to carry wheeled cargo such as automobiles, trailers or railroad cars. The vessels have built in ramps which allow the cargo to be efficiently rolled on and rolled off the vessel at ports. New automobiles that are transported by ships around the world are often moved on large roll on roll off ships called pure car carriers and truck carriers.

Usha Martin consolidated net in Q3 of 2007 up by 3% YoY

Usha Martin has posted net sales of INR 5,552.1 million in October to December 2007 quarter up by 16% YoY as compared to INR 4,803.8 million during October to December 2006 quarter. Profit after tax reached to INR 412.3 million up by 3% YoY as against INR 399.5 million.

The sales was registered at INR 16,362.7 million in April to December 2007 period up by 12% YoY as compared to INR 14,660 million during April to December 2006 period. Profit after tax rose to INR 1,248.6 million from INR 981.5 million, an increase of 27% YoY. The captive consumption of steel for down stream value addition has registered a growth of over 3% YoY at 130,285 tonnes in April to December 2007 period as compared to 126,010 tonnes in April to December 2006 period.

On standalone basis, Usha Martin has posted net profit of INR 324.50 million in October to December quarter up by 14.22% YoY as against INR 284.10 million in October to December 2006 quarter. Net sales rose by 14.58% YoY to INR 4,026.50 million as compared with INR 3,513.90 million. Total income rose by 14.65% to INR 4,043 million as against INR 3,526.10 million.

Usha Martin is one of the leading producers of specialty steel and one of the largest wire rope manufacturers globally. It is having manufacturing facilities at Ranchi, Jamshedpur, Hoshiarpur, UK, Thailand, UAE and USA. It has created a worldwide distribution, service and marketing network spread across the US, UK, Europe, Africa, the Middle East, South East Asia and Australia.

Russians express interest in Orissa

It is reported that Russian government has recently expressed desire to set up industries in the state of Orissa.

Mr Vyachesiav I Trubnikov Russian envoy to India has apprised Mr Naveen Patnaik chief minister of Orissa his country's interest in mining and allied sectors.

He said that "We have already held discussion with the state government about Russia's interest in bauxite mining and proposal to set up an aluminum plant here."

Mr Trubnikov said that Russia is interested in steel sector and also power generation in the state.

He added that "While we have spoken to the chief minister regarding the proposed aluminum plant, talks will be held on other projects."

Korba Power to award EPC contract by March 2008

Projects Today reported that Korba Power is likely to award the EPC contract for setting up a 600 MW coal based power unit in Raigarh district of Chhattisgarh by March 2008.

Among the applicants to the tender floated in October 2007, three have been short listed for awarding the construction job. The tender was floated for developing full facility excluding off site on EPC basis.

The power plant will require around 600 acres of land and the acquisition process is underway. Financial closure for the project is expected to achieve by mid 2008.

Bangalore to build a tall tower

It is reported that Bangalore based architect and designer Mr HR Vishwanath has designed the world's tallest tower for Bangalore in Karnataka.

The proposed tower, coming up at Tippasandra, near BDA's Anjanapura Layout, will scale 560 meters, beating the Canadian National Tower of 553 meters height in Toronto. The blueprint is with the Bruhat Bengaluru Mahanagara Palike which will be sent to the state government for approval. Nearly 5.2 acres have been sanctioned by former Chief Minister Mr HD Kumaraswamy.

Mr Vishwanath said "The sky tower is planned as an iconic building and a major landmark of Bangalore, another means to attract tourists. Earlier the tower was planned in Freedom Park on the old Central Jail premises, but was scrapped because it would have attracted a lot of tourists, leading to traffic problems. The structure will be built to boost communications, tourism and commercial activities.”

With a microwave dish platform at an altitude of 410 meters, the tower will enhance overseas and inter departmental communications of government organizations like the Railways, All India Radio, police and Doordarshan. Top four floors will be earmarked for private telecom giants who will set up their own infrastructure. The floor diameter at 350 meters serves as a microwave disc platform to facilitate live telecast of major events within a radius of 100 kilometers.

BHEL to pick up stake in TNEB's Udangudi power plant

Projects Today reported that Bharat Heavy Electrical Limited is planning to pick up equity in the Tamil Nadu Electricity Board's 1,600 MW coal based thermal power unit at Udangudi in Tuticorin district of Tamil Nadu.

The companies are in talks for finalizing modalities for allocation of equity to BHEL in the project. BHEL will also supply key equipment like boiler and turbine generator to the project.

Suzlon Q3 2007 net profit surges by 92% YoY

Suzlon Energy has posted net profit of INR 338 crore for October to December 2007 quarter up by 92% YoY as compared with INR 176 crore in October to December 2006 quarter. Its sale was recorded at INR 1,655 crore up by 50% YoY as against INR 1,106 crore.

Consolidated figures showed 17% lower profit after tax at INR 142.84 crore in the third quarter as against INR 172.72 crore. Income from operations in the period was INR 3,170 crore up by 66% as against INR 1,914 crore. The wind turbine generator segment contributed INR 2,608 crore for October to December 2007 quarter up by 81% YoY as against INR 1,443 crore in October to December 2006 quarter. Gear box manufacturing contributed INR 569 crore up by 26% YoY as against INR 453 crore.

Mr Tulsi R Tanti CMD of Suzlon Energy said that “While the wind power industry grew up by 20% to 25% in 2007, Suzlon posted a higher growth. Growth in the US and new orders from Australia, Latin America and Europe helped us post good results.”

Mr Tanti said that Suzlon’s capex plans were on track, to take its capacity to 5,700 MW from 2,700 MW with an investment of INR 2,900 crore in India. REpower is investing INR 290 crore and Hansen is investing INR 5,527 crore to expand facilities in Belgium, China and India.

Suzlon has an order book of INR 17,016 crore for 3,357 MW, which includes INR 2,404 crore for 441 MW orders from the domestic market. Sales have grown up by 66% in 2007 to about 2,725 MW from 1,637 MW in 2006.

GVK Power net income in Q3 of 2007 up by 76% YoY

GVK Power & Infrastructure Limited has posted income of INR 118 crore for the October to December 2007 quarter up by 76.1% YoY as against income of INR 67 crore in October to December 2006 quarter. Net profit was recorded at INR 40 crore up by 344% YoY as against INR 9 crore.

GVK Power has posted total income of INR 354 crore in the April to December 2007 period up by 66.9% YoY as against INR 212 crore in April to December 2006 period and net profit reached at INR 101 crore as against INR 24 crore.

Kalpataru Power to raise up to USD 125 million

Kalpataru Power Transmission Limited has announced that its board has approved raising of up to USD 125 million through various means.

US Steel 2007 net dips by 36% YoY

United States Steel Corporation has reported fourth quarter 2007 net income of USD 35 million, down by as 86% QoQ as compared to third quarter 2007 net income of USD 269 million and fourth quarter 2006 net income of USD 297 million. Its fourth quarter 2007 net income was reduced by USD 117 million due to inventory transition effects and a workforce reduction charge.

For full year 2007, US Steel reported net income of USD 879 million, which was reduced by USD 158 million, from inventory transition effects, a workforce reduction charge, early debt redemption expense and several discrete tax charges, down by 36% YoY as compared to USD 1,374 million in 2006.

In million USD

Mr John P Surma CEO of US Steel said "This past year was an important period of growth for our company as we completed major acquisitions in both our flat rolled and tubular businesses and commissioned our new automotive galvanizing line in Europe. We are making steady progress with integration activities on both acquisitions, and we still expect to achieve the anticipated synergies."

JFE and MOL develops new corrosion resistant steel for oil tankers

JFE Steel Corporation and Mitsui OSK Lines LTD have developed an advanced new corrosion resistant steel plate for inside protection of oil tankers and has named it JFE-Steel for Ship Inside Protection for Oil Tankers JFE-SIPTM-OT. The new corrosion-resistant steel plate is said to reduce corrosion by slowing down pitting to between a half and one fifth of the level seen with conventional materials.

A release said that “A 5 year research project has proven that the new material limits deterioration of crude oil cargo tanks. The company will fully adopt this new corrosion-resistant steel plate on bottom and upper plates of the cargo oil tanks of an MOL operated very large crude carrier to be launched in November 2008. The adoption of this material on upper deck plate is the world's first.”

The company said “In current vessels, the bottom plate of the cargo oil tank is covered with a corrosion resistant membrane, but pitting occurs when the membrane gets chipped. It corrodes up to about 4mm annually. If no action is taken, this poses a risk to safety. General corrosion will occur at the rear of the upper plate in the cargo oil tank due to the effects of hydrogen sulphide. As corrosion spreads, it may reduce the strength of the hull structure, too.”

The new corrosion resistant steel plate, which combines several particular elements significantly reduces corrosion by slowing down pitting to one fifth of the level seen with conventional materials. It shows excellent corrosion-resistance, even for general corrosion which occurs on rear side of the tank’s upper plate. It has the same weld ability and machining performance as conventional steel plates used in the hull structure. It reduces maintenance work in dry dock, which is conducted every two and a half year

In current vessels, the bottom plate of the cargo oil tank is covered with a corrosion resistant membrane, but pitting occurs when the membrane gets chipped. It corrodes up to about 4mm annually. If no action is taken, this poses a risk to safety. General corrosion will occur at the rear of the upper plate in the cargo oil tank due to the effects of hydrogen sulfide. As corrosion spreads, it may reduce the strength of the hull structure, too.

The International Maritime Organization is discussing ways to improve corrosion protection by painting the inside the cargo tanks of crude oil tankers. Japan has promoted the use of corrosion-resistant steel as well as painting.
MOL and JFE continue working to improve the economy, safety, and reliability of merchant vessels, contribute to environmental protection, and proactively meet various needs of customers and society at large.

Country wise DRI production for 2007

World DRI production in 2007 for the countries reporting to the International Iron and Steel Institute is estimated to be 54.433 million tonnes up by 9.1% YoY as compared to 49.460 million tonnes in 2006.

India maintained the position of global leader by producing 17.820 million tonnes of DRI in 2007 and accounting for 32.7% of total global DRI production.

In ‘000 tonnes
Source is IISI

An analysis of country wise DRI change in their global share is as under

In ‘000 tonnes
Source is IISI

POSCO eyes bigger role in auto market

Mr Yoon Seok-man president of POSCO said that it wants to become more than a supplier of steel sheets for car makers, and has invited some 300 major auto and parts makers to introduce ways to expand its role in the production process, starting from design.

At its first early vendor involvement forum on January 30th 2008, Mr Seok said that POSCO plans to raise its steel sheet production by 8% to 6.2 million tonnes in 2008. He added that ''Steel and auto producers must develop a new paradigm in partnership to continue solid growth together.''

He said that after kicking off its auto steel sheet business in 2001, POSCO produced about 1.7 million tonnes in the first year and churned out almost 6 million tonnes in 2007. He added that the EVI practice will help bring POSCO's presence in the industry to a whole new level.

Mr Seok said that “We are going from plain suppliers to helping automakers grasp the overall production trend, design parts, carry out simulations and share sheet processing technology.'' He added that its EVI initiative will be expanded to other parts of the world to facilitate better communication with their buyers.

Rising raw material cost to push steel price to new high - MEPS

UK based MEPS reported that although US inventories are down at the distributors, the business is not robust. It said “However, margins are holding. Supply side tightness and ongoing escalating costs for raw materials, energy and freight are driving transaction prices up as producers announce a series of increases at USD 30 per ton in January 2008 to be followed by USD 40 per ton for February 2008 shipments. Import volumes are massively reduced and the price of foreign steel is soaring.”

MEPS said that “Canadian imports in the first half of 2008 are expected to continue at a low level as prices remain above domestic values and freight costs increase. Rising input expenses are creating a strong impetus for steelmakers to boost their prices, overshadowing relatively soft consumption. The strong local currency is still adversely affecting the country's manufacturing base.”

MEPS added that “Chinese ministry of finance finally issued new export tax rates on December 26th 2007 with effect from January 1st 2008. Domestic market prices have undergone further positive developments over the last month in a climate of good demand and relatively low stock levels. Increasing costs of production continue to drive the mills to push for price rises. Inventories are gradually reducing in Japan as producers limit output to the general market because of poor construction activity. Stocks throughout the supply chain are decreasing. Demand from the auto and electronics sectors is good.”

MEPS said that “Despite strengthening downstream consumption, South Korean producers kept flat product prices steady but in late January proposed significant hikes. As expected, values are on the rise in Taiwan, where sales are robust and raw material prices and shipping costs are climbing. CSC had already tabled price advances for the first quarter. Triggered by the Chinese ingot export tax rise of 25%, the gains were higher than the market expected.”

MEPS said that “In Poland, ArcelorMittal has pushed through a small increase on strip mill products for February delivery. The tendency for the next couple of months is likely to be upwards as the economy continues to prosper. Prices in the Czech Republic and Slovakia are slightly down, influenced by business in neighboring countries and the strong local currency. Although economic growth has slowed, it is still good. Steel stocks are low at service centers, consumers and mills. Market players are optimistic about conditions in 2008.”

MEPS further added that “Import offers are now well above those pertaining in Western Europe for the first quarter of 2008. This will certainly leave the domestic mills with opportunities to lift prices when period two discussions open.”

Baltic Capesize index sees record one day hike

Reuters reported that Baltic Capsize Index has jumped up by 1,108 points, its highest ever one day rise, on news of an agreement between BHP Billiton and Baosteel and an increase in Pacific period interest. The Baltic Exchange Capesize time charter average also recorded its highest ever one day jump of USD 12,798 up to USD 93,815 per day from the previous day.

The report cited a London broker as saying that “The jump is partly because of the BHP Billiton and Baosteel news and partly due to an increase in period interest from Charterers in the Pacific.” He added that the Chinese charterers had returned to the market ahead of the Chinese New Year to help bring up Chinese inventories ahead of any April price rise.

It may be noted that BHP Billiton has signed an agreement to supply Baosteel with an additional 94 million tonnes of iron ore. Baosteel will be supplied with 10 million tonnes or iron ore each year for 10 years at a price to be mutually agreed each year.

The broker said that the China Iron & Steel Association had released a press release, but denied that a price had been agreed. He added that “The CISA said that they had stepped away from talks on January 16th 2008 but this is obviously disingenuous otherwise they would not have got to this volume negotiation. The sticking point seems to be freight and who will control the shipping, but the consensus is for a contract price increase of about 60% to 65%.”

A standoff in talks between iron ore producers and Chinese steel mills has led to an abundance of available tonnage, which has pressured rates, as vessels wait for delayed cargoes. Chinese officials had proposed a 15% rise in iron ore prices, but were understood to have been offered a 30% hike, which was refused.

BHP Billiton was thought to be initially seeking a rise of about 50%. BHP said that the first shipment under the new contract is scheduled for April 2008.

US Q4 economy weakest in five year

It is reported that US growth skidded lower in the fourth quarter and was the weakest in five years for all of 2007.

The Commerce Department said gross domestic product, which measures total goods and services output within US borders, edged up at a weaker than expected 0.6% annual rate in the fourth quarter and for the full year advanced only 2.2% the slowest growth in annual GDP since 1.6% in 2002.

Analysts had forecast that Q4 GDP would grow at a 1.2% rate. The lackluster fourth quarter performance followed a booming Q3 when GDP surged at a 4.9% rate and is likely to fuel fears the economy is at risk of tumbling into recession in 2008.

Ferrowest Limited entered MoU with Kobe Steel and Midrex Technologies

Ferrowest Limited has announced that it has entered into a MoU with Kobe Steel Ltd and its 100% owned subsidiary Midrex Technologies, Inc.

The release said that the MoU, which is non exclusive and non binding, enables the Company to continue working with Kobe and Midrex to establish the operating parameters for the ITmk3 and Fastmet Fastmelt technologies which are being considered for the merchant pig iron plant component of the Company's Yalgoo Iron Project.

As per release the MoU follows a recent visit by Midrex representatives to Perth, Yalgoo and Geraldton to gain a first hand understanding of the Company's plans for the Yalgoo Iron Project. Before the MoU can be extended to a more formal agreement, the parties must agree
1. That the Yalgoo Iron Project is economically feasible using the selected technology
2. The selected technology must have been satisfactorily commercialized
3. That a mutually acceptable development time line has been agreed which will fit with Ferrowest's requirements and the various project commitments that Kobe and Midrex have internationally
4. On the final commercial terms for the licensing of the selected technology.

Mr Brett Manning MD of Ferrowest Managing said that the Midrex visit had been very productive and had led to the signing of the MoU. The ITmk3 process has always been our preferred technology for this project, although two others remain in contention, but this visit was an excellent opportunity to map out a path to take the technology selection process forward."

He said that "The studies into the Yalgoo Iron Project have reached a criticalpoint and we firmly believe that by extending the time line we will reap significant benefits in the optimization and ultimate economics of the Project."

Latin American rolled steel output seen at 65 million tonnes in 2008

BNamericas cited Mr Guillermo Moreno general secretary of the Latin American Iron and Steel Institute as saying that production of rolled steel products in Latin America is likely to total some 65 million tonnes in 2008.

Mr Moreno said rolled steel production in the region is estimated to have amounted to 59 million tonnes in 2007 out of which 18.6% was exported as compared to 22.2% in 2006. He said that the difference in shipments abroad from producing countries from one year to the next is attributed to a growth in internal demand, principally in Brazil.

Mr Guillermo said in light of the possibility of a recession in the US, the Latin American market is highly diversified and is not as linked to the US economy as it was in the past, so a possible recession shouldn't especially affect the steel industry. He said that Mexico and the Central American nations would be the countries most likely to feel the effects of a US recession.

Indonesia to issue more tin export licenses

Bloomberg cited Mr Hartojo Agus Tjahjono export director of mining and industry products at the Trade Ministry as saying that Indonesia is preparing to issue two new tin export licenses that would bring the total to 17 licensed tin exporters. He declined to identify the companies, which he said are independent smelters.

The export licensing system came into effect last February and the last company to gain a license was the new YTC/STI subsidiary PT BGM International in November. The total volume of tin checked for shipment between February 23rd 2008 and December 31st 2007 was 86,305 tonnes. 11 of the 15 licensed companies had exported tin up to December, with the biggest volumes coming from the state controlled PT Timah and the three biggest independent smelters CV DS Jaya Abadi, CV Donna Kembara Jaya and PT Bangka Putra Karya.

Sumitomo to spin off of Titanium business to Sumitomo Metals (Naoetsu)

On November 29th 2007, Sumitomo Metal Industries Ltd announced plans to spin off its titanium plate business to subsidiary Sumitomo Metals (Naoetsu) Ltd.

A release said that the particulars of this move were decided at its board of directors meeting as under

1. Purpose of spin off
Sumitomo Metals thinks global demand for titanium will continue to rise going forward, led by aircraft manufacturers. Accordingly, Sumitomo Metals Group is integrating manufacturing, sales, and technical services in order to improve customer service and reinforce the foundation of our titanium business. As part of this, the Company has also decided to spin off its titanium sheet and plate business.

2. Summary of company spin off

(1) Spin-off schedule
- Board of Directors decision: January 30, 2008
- Spin-off agreement finalized: January 31, 2008 (expected)
- Date agreement effective: April 1, 2008 (expected)

(2) Spin-off method
Sumitomo Metals plans to spin the business off to its wholly owned subsidiary Sumitomo Metals (Naoetsu) via the simple spin-off method.

(3) Decline in capital, due to spin-off
Not available

(4) Handling of Sumitomo Metals' warrants and warrant bonds
There are no outstanding warrants or warrant bonds.

(5) Rights and obligations assumed by succeeding company
The succeeding company will assume assets and liabilities related to the titanium sheet and plate business as well as existing contractual positions. Assets and liabilities will be valued based on our September 30th 2007 balance sheet, with adjustments made for any change in value between then and the date the spin-off agreement takes effect.

(6) Redemption of debt
After the spin-off, both Sumitomo Metals and Sumitomo Metals (Naoetsu) will have sufficient non-exempt property to cover existing debts, so Sumitomo Metals foresees no problem for either company in terms of meeting obligations.

3. Outline of divesting company
(1) Outline of Sumitomo Metals (consolidated)
As of March 31, 2007

Nippon sees lower demand of carbon steel in Demand in H2

JMB reported that Nippon Steel has revised the estimate for Japanese carbon steel demand downward to 30.88 million tonnes in October-March period, which is 2.03 million tonnes lower than estimate as of October.

Nippon expects the construction materials demand will be 11.66 million tonnes, which is 2.13 million tonnes lower than former estimate and 2.56 million tonnes lower than same period of previous year. The firm concerns potential oversupply when domestic steel production keeps high level including for construction materials.

US steel mini mills boost demand for specialized coke product

Platts reported that prices for needle coke a primary component in electrodes for electric arc furnaces are on the upswing as part of the ongoing global steelmaking boom and the accompanying proliferation of electric arc furnaces.

A highly specialized niche market product derived from petroleum, needle coke production is relatively small in relation to most other raw materials involved in steelmaking between 3 million and 4 million tonnes per year by some estimates. Of that, roughly one third goes into the manufacture of graphite electrodes for EAFs, where it accounts for a considerable portion of the sales price of the finished electrode.

Global prices for needle coke, meanwhile, have doubled over the past three years and are up by roughly one third in the past 18 months to around USD 2,000 per million tonnes. As recently as June 2006, needle coke was available from some suppliers in the US market at around USD 1,500 per million tonnes, by comparison. Some producers, such as Texas based Seadrift Coke, have added a surcharge to their base needle coke price to reflect higher raw material costs.

According to India based HEG the trend has underpinned rising demand for electrodes and needle coke. The percentage of global steel produced in EAFs is expected to rise to 43% by 2010.

HEG previously announced that it expected needle coke prices to increase by 20% 25% and graphite electrode prices to increase by 15% 20% during the company's current fiscal year, which ends March 31st 2008. Demand from new EAF projects is driving much of the increase, together with higher petroleum prices.

Cape Lambert lifts resource estimate by 59%

Cape Lambert Iron Ore Limited has taken a significant step forward in the development of its namesake Western Australian iron ore project, following confirmation of a 59%increase to the resource estimate at the project to 1.56 billion tonnes.

The upgraded resource estimate prepared and classified by independent, international mining consultancy group Golder Associates Private Limited is based on drill data acquired in the company's 2006 drilling program and 65 Reverse Circulation drill holes from a total of 88 completed in the 2007 drilling program, together with earlier drilling data from Robe River acquired during the 1990s.

Mr Ian Burston chairman of Cape Lambert said that the substantial increase in the resource underpinned the board's confidence in the project and its fundamental underlying economic value. He said that "Located virtually on China's doorstep, and with clear infrastructure advantages, we believe further aggressive drilling has the potential to increase the mineral resource inventory at Cape Lambert to more than two billion tonnes, and as such sustain a plus 20-year mine life producing at least 15 million tonnes per annum of magnetite concentrate."

He added that "The Company’s expansive coastal land package contains significant under explored prospectivity that has the potential to underpin the further resource upgrades."

Cape Lambert Iron Ore Limited is continuing its aggressive drilling program and to this end expects to produce a further resource upgrade in the June 2008 quarter, incorporating the remaining 2007 and March quarter 2008 drilling results.

NYMEX to change margins for coal futures contracts

The New York Mercantile Exchange Inc announced that it will change margins for several of its coal futures contracts, beginning at the close of business recently.

Margins for the Central Appalachian coal futures contract will increase to USD 5,000 from USD 2,500 for clearing members, to USD 5,500 from USD 2,750 for members and to USD 6,750 from USD 3,375 for customers.

The margins for the Western Rail Powder River Basin coal swap futures contract will increase to USD 1,500 from USD 500 for clearing members, to USD 1,650 from USD 550 for members and to USD 2,025 from USD 675 for customers.

Margins for the Eastern Rail CSX coal swap futures contract will increase to USD 4,000 from USD 3,000 for clearing members to USD 4,400 from USD 3,300 for members and to USD 5,400 from USD 4,050 for customers.

Excel Maritime Carriers to acquire Quintana Maritime Limited

Excel will pay USD 13 per share in cash per share of Quintana common stock and 0.4084 shares of Excel Class A common stock per share of Quintana common stock. In the event the average closing price of Excel's Class A common stock during the 15 trading day period ending before the effective date of the merger exceeds USD 45 per share, this exchange ratio will be adjusted so that the total value delivery per Quintana share including cash is USD 31.38, unadjusted for dividend payments.

Based on Excel's closing price of USD 33 as of January 28th 2008 and unadjusted for dividend payments, the offer represents a total value of USD 26.48 per share, representing a 57% premium to Quintana's January 28th 2008 closing price of USD 16.89 and a 34% premium to Quintana's 30 day average price. In all cases, the value of the Excel Class A common stock to be delivered per Quintana share shall be reduced by the amount of any dividends paid by Quintana in 2008 up to the closing of the merger. The merger agreement was approved by the boards of directors of each company.

Mr Stamatis Molaris CEO& president of Quintana said that "This is a highly attractive offer for Quintana. By capturing significant value in cash and retaining equity upside via stock in the combined company, we believe that we are delivering the ideal value combination to our shareholders."

He said that “I am excited to have the opportunity to lead this new company and participate in the further consolidation of our industry. The new company will provide our customers with enhanced service and our shareholders with greater productivity and profitability. The combined Company will have sufficient scale and be one of the world's largest dry bulk companies by number of operated ships and DWT. I am anticipating that shareholders will realize considerable synergy benefits due to economies of scale and sophisticated management practices on operational and technical aspects of the combined fleet. We anticipate annual savings of between USD 15 million and USD 20 million."

Eskom can end coal shortage by paying more- Experts

Reuters reported that South African state utility Eskom can find the extra 5.5 million tonnes of coal it needs if it pays far higher prices.

One coal industry source said "There is coal available at the right price among the junior miners but Eskom is going to have to pay whatever it takes to secure that coal. He said that there's no need to be heavy handed and take producers' run of mine coal which was destined for export but Eskom has to speed up and simplify its buying. If they paid ZAR 150 or more a tonne, they'd find the coal. He added that Eskom pays around half this price for contracted coal."

Some industry sources said Eskom may find it impossible to pay high enough prices to compete with larger producers and traders buying spot coal from the junior miners. They said Eskom has in January paid the equivalent of parity or more with export prices for small quantities of domestic coal bought free on rail or truck but may not be able to buy millions of tonnes at over USD 100 per tonne.

Eskom has asked the country's largest producers, including Xstrata, Anglo Coal South Africa, BHP Billiton, Exxaro and Total Coal South Africa to come up with an extra 5.5 million tonnes of domestic grade coal within the next three months to alleviate the low stocks situation at power plant and stockpile ahead of the winter.

LME approves ArcelorMittal's membership application

London Metal Exchange has announced that it had approved ArcelorMittal's application to become Category 3 membership of the exchange.

LME said that the start date of clearing for ArcelorMittal will be announced later. Category 3 membership will allow ArcelorMittal to clear LME contracts in its own name but not issue contracts for other clients or trade in open outcry sessions.

LME also said that it approved Aston Commodities' application to become a Category 5 member, which does not give it trading rights except as clients.

Workers threaten strike at Venezuela's Sidor steel

Reuters reported that workers at Venezuela's largest steelmaker Ternium Sidor have threatened a 48 hour strike if a dispute over a new labor contract is not resolved.

The union, which pulled thousands of workers off the job for 24 hours last week in the same conflict, said that it would extend the strike indefinitely if management failed to meet its demands during the 2 day stoppage.

Hanjin to invest USD 2 billion in a shipyard in Philippines

It is reported that South Korean shipbuilder, Hanjin Heavy Industries and Construction Corp, has signed a deal to build the Philippines’ biggest shipyard in the southern part of the country.

Hanjin will build the USD 2 billion yard at the Phividec Industrial Estate at Misamis Oriental on Mindanao Island. It will be Hanjin’s second shipyard in the Philippines. It already has a USD 1.68 billion yard the world’s fourth biggest at Subic Bay.

The new yard, to be called Misamis Oriental Shipbuilding Complex, will cover 442 hectares.

CSC to buy equipment from Mitsubishi-Hitachi Metals Machinery

China Steel Corporation announced that it will purchase mechanical equipment with a total value of NTD 5.33 billion from Mitsubishi-Hitachi Metals Machinery Inc.

Australian iron ore magnate sets up USD 100 million Pilbara fund

It is reported that Iron ore baron Professor Clive Palmer has established a USD 100 million foundation to support the Pilbara's Aboriginal communities, as part of a planned USD 1 billion philanthropic package.

Professor Palmer said that his company Mineralogy will channel the money it gets from its deal with Sino Iron to develop its iron ore project to establish community building projects in the iron ore producing region. He said foundation will aim to further medial research in Western Australia, address infrastructure needs, and provide intervention and aid to the Pilbara's Aboriginal and other underprivileged communities.

Professor Palmer said he hoped the foundation would show the way to other resource companies.

MSC expects Koba Tin to resume production

Malaysia Smelting Corp Bhd expects its 75% subsidiary Indonesia based PT Koba Tin to be allowed to resume tin ingot production soon.

It was reported that Koba Tin recently issued a letter by the head of the local police in Kabupaten Bangka Tengah instructing the company to stop receiving tin ore from its sub-contractors and cease production of tin ingots from its smelting plants in Indonesia. This was pending investigations into allegations that two of Koba Tin’s sub contractors had been mining in a forest area within the company’s contract of work area with the intention of sending the tin ore to Koba Tin’s warehouse.

A source close to MSC told StarBiz that the alleged illegal tin ore tonnage was small, about one to two tonnes. He said that “Koba Tin has been strictly monitoring its sub contractors and they know not to source tin ore from the forest areas."

Recently local police sealed a storage site belonging to a Koba Tin sub-contractor and arrested two miners over the alleged illegal mining activities. Meanwhile, MSC in a note to Bursa Malaysia said Koba Tin’s internal control measures and investigations confirmed that all production from its appointed sub-contractors had been derived from mining activities carried out within the company’s CoW and outside the forest area.

It said Koba Tin management was seeking clarification and assistance from relevant authorities at the district, provincial and central government levels on the actions taken by the local police to restore the operations “back to normal” as soon as possible.

Steel and cement prices reach record levels in Algeria

El Khabar reported that many construction works in Algeria have been temporarily halted because of surge in construction materials prices to record levels with steel is priced at DZD 8000 per 100 kilograms and cements is traded at DZD 500 per 50 kilogram bag.

Mr Bendrimie Mourad the representative of the construction materials merchants in the suburbs of Algiers said that he met with Algiers Trade Director, and discussed with him the new regulations of construction materials merchant’s commercial activities.

These high prices are as a result of the international markets increasing prices, according to the construction materials merchants.

Dubal inks MoU for aluminum smelter in Saudi Arab

AFP reported that Emirate based firms Mubadala Development Co and Dubal signed a MoU with Saudi Arabian General Investment Authority and the joint investment firm Emaar Economic City to build an aluminum smelter at an investment of more than USD 5 billion.

The 700,000 tonnes a year smelter would be located in King Abdullah Economic City, an industrial zone to the north of the Red Sea coast city of Jeddah that was launched in December 2005 with initial investment of USD 26.6 billion.

Mr Abdullah Kalban CEO of Dubal said “The additional aluminum production from the proposed smelter complex would help us realize Dubal's vision of becoming one of the world's five largest aluminum producers by 2015.”

Emaar Economic City is a joint venture between Emaar Properties of Dubai and a group of Saudi investors.

Dubal, owned by the government of the emirate of Dubai, is already the leading aluminum manufacturer in the Middle East with a capacity of 860,000 tonnes a year.

Pakistan Steel Mill looks for new supplier

Daily Times reported that Pakistan Steel Mill has decided to purchase coal and iron from Balochistan to cut its expensive imports.

Mr Muhammad Javed chairman of Pakistan Steel said that it will sign an agreement on January 29th 2008 with Chinese company to buy 50,000 to 60,000 tonnes of iron ore. He added that the purchase of 15,000 tons from Chagai had also started on an experimental basis which could be enhanced to 150,000 tonnes.

Pakistan Steel also plans to purchase 60,000 tonnes of coal during the current financial year from Balochistan. Over the last 5 years, coal demand increased by 400%. Currently the local coal is being sold at a rate of PKR 3000 to PKR 4000 per tonne, while imported coal costs between PKR 6000 to PKR 10000 per tonne.

Bolan Mining Enterprises, a JV of Balochistan government and the PPL, is the lease holder of 50 million tonnes of magnetite iron deposit at Chigendik and Pachinkoh in Chagai district and had supplied 100,000 tonnes of low grade iron ore to Pakistan Steel Mill in 2003 and no supplies have been made since then. It has been exploring possibilities for upgrading Balochistan iron ore through a beneficiation process and it recently signed an agreement with German consultants to carry out engineering studies for the set-up up such a plant.

Balochistan possesses huge reserves of coal at Hamai, Degari, Mach, Ziarat, Chamalang and Abegum. The estimated reserves of coal fields in the province are 217 million tonnes. Over 80% of the local coal is utilized by bricks makers, while the rest are being consumed by cement plants for blending it with imported coal to reduce the cost of production. Balochistan’s Dilband reserves of over 200 million tonnes contains between 30% to 40% iron and 60% is used by PSM. Similarly, the local coal has more sulphur content than the required level.

1. Coal resources in Balochistan
a) Hamai – 76 million tonnes
b) Sor Range Degari – 50 million tonnes
c) Duki – 50 million tonnes
d) Mach Abegum – 23 million tonnes
e) Pir Ismail Ziarat – 12 million tonnes
f) Chamalang with - 6 million tonnes

2. Significant iron ore deposits in Balochistan
a) Dilband – 200 million tonnes
b) Shekran – 10 million tonnes
c) Chilghazi – 23 million tonnes
d) Kundi Baluchap – 0.13 million tonnes
e) Pachin Koh – 45 million tonnes
f) Durban Chah - 1.125 million tonnes

JAFZA inks MoU with SBMA for industrial development

Khaleej Times reported that Dubai's Jebel Ali Free Zone Authority will invest up to USD 250 million in Philippine's Subic Bay Freeport over the next 3 to 5 years to develop industrial, manufacturing, tourism and high end housing facilities.

Ms Salma Hareb CEO of JAFZA and Economic Zones World said that the strategic location of Subic Bay coupled with the Philippines' sound economic policies gave Subic a genuine edge as an investment area because of its Freeport status and proximity to the Asian markets. She added that "The Subic Bay Freeport fits well in our agenda of forming beneficial alliances and expanding operations to vital business destinations around the world, as well as our intention to form a truly global logistics network."

Ms Celeste Ilagan executive director of the Philippines' Board of Investments said that the areas that interest JAFZA in Subic are its industrial Technopark, the Boton Wharf, Subic International Airport and the posh residential are of Cubi Point, where high end villas had been constructed in 1996 for the heads of state who attended the Asia-Pacific Economic Co operation, or APEC Summit. She added that "From what I understand, JAFZA wants to develop existing facilities, and not start from scratch," she said. "Well, Subic is a very good area for them to develop further."

SBMA Administrator Mr Armand Arreza, who signed the MoU with Hareb, hailed JAFZA for its long term customer relationship and world class services. He added that "The company's presence and involvement with the development of Subic Bay Freeport will certainly augment its value to make it an important port of call for commerce, industry and leisure in the region. We hope that relations and cooperation between the two sides will expand to wider horizons."

Subic Bay has been operated as a Freeport since mid 1990s, becoming instrumental in upgrading the local infrastructure around the area including the Clark Airport, also a former US facility, expressways and railways. The area was abandoned by the US in 1992, a year after the Philippine Senate voted for the scrapping of an agreement for US military bases in the Philippines.

RAK plans AED 3 billion road development program

MEED reported that Ras Al Khaimah will implement an ambitious road development program to upgrade its road infrastructure with an estimated investment of AED 3 billion.

Mr David Yaw regional MD of Halcrow, while speaking at the Ras Al Khaimah Conference 2008, organized jointly by the Ras Al Khaimah Investment Authority and MEED, said that plans are in place to upgrade the emirate's road and sewerage networks to cater to a predicted population of 600,000 by 2015. He added that "The road improvement program would include the extension of the Emirates road, creation of new roads, including those to rural areas and quarries and expansion of the existing road network. We are looking at an investment of AED 2 to AED 3 billion over a four to five year period. Part of that will be funded locally while another part will be federal funding."

Mr Yaw said that apart from the proposed extension of the Emirates road, the other development plans include creation of new highways, widening of existing roads, building of flyovers and improving congested junctions. It would also include development of the Siji to Shokah road and RAK Coastal Road as well as building the new Al Jais Mountain Road. He added that "The RAK Road Network Development Strategy is not just to serve the urban environment, but it also aims to help the industrial and manufacturing economy that figures prominently in the emirate's plans for the future and to take forward the vision of Mr Shaikh Saud Bin Saqr Al Qasimi crown prince and deputy ruler of Dubai, who is passionate about providing development to the people of Ras Al Khaimah, living both in the rural and urban areas."

He further added that the RAK government is currently setting up a sewerage network involving an investment of AED 360 million in 2 phases along with a waste water treatment plant incurring another investment of AED 60 million.

Erdemir buys real estate in northwest in auction

Turkey's biggest steelmaker Erdemir has bought real estate in northwest Turkey for USD 12.7 million. Erdemir won an auction held by Turkish regulators for real estate in Yalova.

Dubai RTA to build world's longest arch bridge

Dubai Roads & Transport Authority has announced that it is planning to build the world's longest arch bridge at a cost of AED 3 billion. The contract for the project was awarded to American firm FXFOWLE. It won the tender following an open invitation. Construction begins in March and the project will be completed in six different phases over four years. It includes the construction of a 12 kilometer road networks and 22 intersections leading on and off of the span. Once complete the bridge will overtake the Lupu Bridge in Shanghai as the longest in the world.

It added that it would take 4 years to construct the mega bridge, which will measure 1,600 meters with an arch 205 meters high and 667 meters long. At 64 meters wide, the bridge will accommodate 12 lanes of traffic and a metro line running down its center. The bridge will also include a metro station, an abra station and the man made island on which an Opera theater will be constructed.

The bridge connects Al Jaddaf in Bur Dubai and Deira areas of the city and will be the 6th creek crossing. Currently the 5 Dubai Creek crossings are Al Shindagha Tunnel, Al Maktoum Bridge, the Floating Bridge, Al Garhoud Bridge and Business Bay Crossing.

Mr Mattar Al Tayer executive director of the RTA said that the 6th crossing was one of the biggest projects ever undertaken by the RTA. He added that "The project aims at easing traffic flow between the two banks of Dubai Creek and serve the new property developments."

The RTA is currently investing around USD 22 billion in Dubai's transport infrastructure as it looks to reduce congestion. The investment plan allocates USD 12 billion for new roads, USD 2.5 billion each for marine transport and tram systems, USD 6.3 billion for the Dubai Metro and USD 600 million for new buses.

Sharjah’s port throughput passes 2m TEU mark

It is reported 2007 volumes at the Gulftainer UAE container terminals in Khorfakkan and Sharjah finished an incredibly buoyant year at a record 2,173,867 TEU an increase of 8% on 2006 business.

In 2007 KCT received a significant boost with the addition of a weekly service call from South America. Chilean shipping line CSAV joined with French shipping giant CMA-CGM and began the container service from east coast South America to the Middle East last December. KCT has proved itself a vital gateway into UAE markets allowing other options to shipping line customers who may otherwise be locked into the landside infrastructural challenges posed by use of other ports.

Located on Sharjah's Indian Ocean coast, Khorfakkan is close to the main east-west shipping lanes, and outside the Straits of Hormuz. The Sharjah terminal in Khorfakkan is undergoing a multi million dollar investment project that will increase KCT's present 1460 meters of quay by another 440 meters. Additional dredging to 16.5 meters is nearly complete and the current phase of development is scheduled for completion by year end 2008.

Expectations at the port remain high for an even more productive 2008, on the back of confirmation that DP World's Port Rashid, in Dubai's city centre will be completing the winding down of commercial cargo operations in March this year.

Cyprus and Qatar explore natural gas deal

ANI reported that Cyprus is considering signing a bilateral agreement with Qatar for the supply of natural gas to cover the needs. Cyprus, which is a member of the European Union, has the obligation to reduce carbon emissions and put an end to its absolute dependence on oil as an energy source. The issue was raised during a meeting between Mr Antonis Michaelides commerce & industry minister of Cyprus and Mr Mubarak al Nasser first ambassador of Qatar to Cyprus.

Qatar is estimated to hold 14.9% of natural gas world reserves, putting it in the second place on the list of gas producing countries, while it comes first in the production of liquefied natural gas.

Mr al Nasser conveyed to Mr Michaelides the readiness of his country to negotiate with the Cyprus government the supply of natural gas and assured him that an official invitation would soon be extended to him towards this purpose. He also invited Mr Michaelides to inaugurate the forthcoming launch of direct flights between the 2 countries.

DP World upgrades berthing in Chennai port

Gulf News reported that Chennai Container Terminal, operated by Dubai's DP World, will reinstate window based berthing of vessels. The move comes after feeder operators serving Chennai threatened to reintroduce a congestion surcharge if there were no berthing and productivity improvements.

Terminal management said to Chennai Feeder Operators that they are confident that they will be able to achieve and maintain the productivity if vessels arrive as per their assigned windows. The operators had earlier imposed a surcharge of USD 100 per TEU which was later withdrawn, as of January 11th 2008, after the port authority assured them of reinstating window berthing and equitable cargo-carting schedules. The terminal operator said that it has convened a meeting of the stakeholders to review various operational issues.

Meanwhile, officials of the Container Shipping Lines' Association complained that their members are facing vigorous resistance from the local clearing house agents community about the choice of off-dock facility for import clearance. The carriers recently took a decision to move import boxes to freight stations of their choice in a bid to speed evacuation of cargo from the terminal.

Quality Energy to build a petrochemical complex in Chelyabinsk region

Mr Pyotr Sumin governor of Chelyabinsk region and UAE based Quality Energy Petro International Limited has signed a preliminary investment agreement on the construction of an oil refining and petrochemical complex in Korkino in Chelyabinsk region. Oil refinery is to have the capacity of 180000 barrels of crude oil per day.

Quality Energy plans to invest about USD 4.5 billion into the project and will own 75% of the newly created JV and the Chelyabinsk will hold 25%. Startup of the construction is scheduled for the end of 2008.

Assaluyeh power plant project nearly complete

Tehran Times reported that construction operations of the Assaluyeh power plant project have been finished and all the steam turbines have been mounted.

Mr Mehdi Khabbaz Pisheh project manager of Assaluyeh power plant said that the gas fueled generators of the power plant, comprising six 159 MW turbines, are being installed. Through the installation of three 160 MW steam turbines, the plant’s power generation capacity will be increased to 1400 MW. He added that the power plant will consume some 300 cubic meter of natural gas per hour.

When the power plant is connected to the national power grid, it will help stabilize the country’s electricity generation system. The project will also encourage private run companies to invest more in the sector.

Syria to speed up construction of oil JV

SANA News Agency reported that Syria is planning speeding up the construction of a joint oil refinery project agreed to by Iranian, Malaysian and Venezuelan oil companies.

On October 30th 2007, Syria had signed a USD 2.6 billion contract with Iran, Venezuela and Malaysia for the construction of an oil refinery in central part of the country that will have a daily capacity of 140,000 barrels.

Under the agreement, Venezuela will get 33% of the revenues, while Iran and Malaysia will each receive 26%, with Syria getting the remaining 15%. The refinery will be provided with 42,000 barrels of crude oil per day from Venezuela, Iran will supply 28,000 barrels per day and Syria 7,000 barrels per day for at least 25 years.

The contract was signed by representatives of the National Iranian Oil Refining & Distribution Company, Syria's oil ministry, Venezuelan state oil firm PDVSA and the Bukhari Group of Malaysia.

BHPB and Baosteel ink long term iron ore supply agreement

BHP Billiton announced that its joint venture partners have signed an agreement to supply Baoshan Iron & Steel Co Ltd with an additional 94 million tonnes of iron ore.

With this new contract, Baosteel will be supplied with 10 million tonnes of iron ore each year for 10 years at a price to be mutually agreed each year. The first shipment under the new contract is scheduled for April 2008.

Mr Tom Schutte president marketing of BHP Billiton said the agreement underlined BHP Billiton's long term commitment to Baosteel. He said "Baosteel plays a significant role in China’s steel making industry. We are absolutely delighted to be able to support Baosteel’s future development by guaranteeing a stable and predictable supply of iron ore.”

He added that "This is a significant quantity of iron ore and highlights our interest in keeping pace with high demand in China during a time when supply is tight. We are doing this through substantial investment in the expansion of our mine, rail and port operations in Western Australia, with planned installed production capacity of 300 million tonnes per annum by 2015.”

Mr Dai Zhihao VP of Baosteel said "We are pleased to enter into this iron ore supply contract with BHP Billiton. This will enhance the long term cooperation between Baosteel and BHP Billiton based on mutual interest. The new supply highlights our optimism about the long term prospects for the steel industry in China."

BHP Billiton has been a long time partner to Baosteel through the supply of its full suite of carbon steel materials products, including iron ore, manganese and coking coal. It also supplies nickel for Baosteel’s expanding stainless steel production. BHP Billiton and Baosteel also entered into an agreement in 2005 that focuses on technical research in iron ore and steel making raw materials.

BHPB’s JV partners are Itochu Minerals & Energy of Australia Pty Ltd, Mitsui-Itochu Iron Pty Ltd, Mitsui Iron Ore Corporation Pty Ltd. BHP Billiton share is 85%.

Shougang buys 19.73% stake in Mount Gibson from Gazmetall

It is reported that Shougang Group has acquired 156.8 million shares in Australian iron ore producer Mount Gibson Iron Limited from substantial shareholder Gazmetall Holding Cyprus. The shares represent approximately 19.73% of Mount Gibson's issued capital

According to Mt Gibson, Gazmetall representatives have informed the miner of the share transaction with a member of the Shougang Group. According to the miner, its board is making enquiries regarding the transaction which will be subject to approval by the Commonwealth Foreign Investment Review Board.

Shougang confirmed it bought the shares in a separate statement today without disclosing the sale price of the stake.

Mt Gibson has appointed Freehills as its legal adviser and UBS Investment Bank as its financial adviser.

Coke and coal shortage hits Chinese steel majors

China Iron and Steel Association said that power and transport outages due to snow have reduced coal and coke stocks at some Chinese steel mills to critical levels, with less than three days' worth of supplies in some areas as against normal levels of more than two weeks.

Unusual winter snow has snarled the transportation of coal and cut power lines in south central China, forcing industrial plants to shut or reduce operations to conserve power supply to residences ahead of the Chinese New Year holiday next week but this report points that shortages are spreading to the north, where normal winter weather still makes it more difficult to mine, wash and process coal.

Mr Luo Bingsheng secretary general of CISA told reporters that "At Angang, coal stocks are down sharply.” He added that the furnace at Angang Steel Co Ltd in the northeastern province of Liaoning also provides heat to the people of Anshan city. He said “If the mill, China's third-largest by output and the cornerstone for the local economy, is forced to halt operations, it could hurt not only the company's production but also local residents.”

As per reports,
1. Shagang Group, is expected to lose production of as much as 80,000 tonnes of hot-rolled steel and 100,000 tonnes of construction steel
2. Shanxi Taigang Stainless Steel Co Ltd has shut 10% to 20% of its capacity
3. Hunan Valin Iron and Steel Group declined to comment on the mill's operations although power supplies to a zinc smelter and mines have already been cut in that province
4. Steel shipments from Ma'anshan Iron and Steel located in central province of Anhui, had been disrupted by rail transport problems caused by the most severe winter weather to hit some regions of the country in half a century
5. Earlier, Wuhan Iron and Steel Group shut some non-essential units as heavy snow in its home province of Hubei reduced supplies of coal and power.

Only Baosteel said its operations in Shanghai, where it can ship in its coal and iron ore, are normal even as snow began falling again in the coastal city.

Mysteel has reported that Power outages and transport delays due to snow could cause some Chinese steelmakers to lose 500,000 tonnes of production output of hot rolled steel. My steel added that the icy weather and low materials stock piles could also lead to a production cut of 700,000 tonnes of construction steel, 150,000 tonnes of medium plates, and 50,000 tonnes of cold rolled steel.

Export prices for Chinese steel plates on upward trend

It is reported that Chinese steel plate export offers are still on an ascending trend and most steel makers continue to raise export offers for April shipments on good demand and higher input costs.

Offers by tier one steel mills are prevailing at USD 870 per tonne to USD 880 per tonne FOB for commodity grade plate and they are expected to approach USD 900 per tonne FOB soon. Now quotations for SS400 plate by most tier two steel makers have risen to USD 840 per tonne to USD 845 per tonne FOB. But prices differ from mill to mill. A Hebei based producer is only offering at USD 820 per tonne, another in Beijing is quoting commercial plate at around USD 850 per tonne FOB, April shipment.

According to its export manager, while a Tianjin based producer is tagging at USD 830 per tonne FOB, April shipment. Transactions are said to be not bad and probably 40% to 50% of the allocation has been booked till now.

Steel mills indicate that export volume for February and March is satisfactory, but April shipment would see drop due to less production in February, during which there is Chinese Spring Festival and electricity restriction.

Zhuzhou suspends operations partially due to power shortages

Interfax reported that China's largest zinc smelter by output Hunan based Zhuzhou Smelter Group has stopped refined lead production and has suspended the operations of some of its zinc smelting facilities due to power shortages.

An official with Zhuzhou Smelter Group said that "Our raw material supply is blocked by poor transportation, and electricity supplies are limited by harsh weather. Resumption will depend on whether the weather improves.”

He declined to say how much zinc capacity the company has cut."

Zhuzhou Smelter produced 415,000 tons of refined zinc and 94,300 tonnes of refined lead in 2007. For 2008, it plans to produce 428,000 tonnes of refined zinc and 96,000 tonnes of refined lead.

25 confirmed dead in N China coal mine blast

Xinhua reported that the death toll in a disaster at an illegal coal mine in north China's Shanxi Province has risen to 25 after rescuers found four more bodies in the mine on Monday evening and another body that was hidden by miners. The rescue operation has now ended.

The blast occurred at around 9 PM on January 20th 2008 in Weijialing Coal Mine in Fenxi County of Linfen City.

Police have arrest an organizer of the illegal mining and are investigating into the accident.

According to Shanxi Work Safety Administration, the mine was opened in 2004 but had later been closed for failing to meet safety requirements. Illegal miners took the opportunity afforded by heavy snow cutting the area off to sneak into the mine.

China Coal and Shenhua halt coal exports - Report

The report added that “China's economic planning agency, the National Development and Reform Commission, is likely to officially announce a coal export suspension for February and March soon.”

The Ministry of Communications last Friday required ports to halt coal loading coal for export in a move to raise domestic supply.

Seventeen of China's 31 provinces have suffered power shortages, while the closure of coal-fired power plants has forced 13 provinces to ration power.

Baotou steel net profit increased 150% in 2007

It is reported that Baotou steel net profit increased 150% YoY, increased 50% per share and net profit is CNY 653.8 million in 2006.

Baotou steel said the reason for the profit increased is that Baotou steel issued 3.032 billion shares to the controlling shareholder of Baotou iron and steel group in the middle of 2007.

Xinjiang discovers a large iron ore deposit

According to Xinjiang bureau of geology and mineral that Xinjiang autonomous region’s geological prospecting scored a major breakthrough and discovered 17 new mineral producing areas. The iron ore reserves of Chagang Nour iron ore and Dimu iron ore exceed 3.2 billion tonnes increasing a new large scale iron ore deposit for Xinjiang.

Chinese MOC issues expiration notice on AD measures

China’s ministry of commerce has issued a notice on AD measures as under

According to the Article 48 of the Regulations of the People's Republic of China on Anti dumping, the period for the levy of an anti dumping duty and fulfillment of a price undertaking shall not exceed 5 years. However, the period for the levy of the anti dumping duty may be extended as appropriate if as a result of the review, it is determined that the termination of the duty would be likely to lead to continuation or recurrence of dumping and injury.

Any domestic industry or natural person, legal person or relevant organization on behalf of the domestic industry may make a written application to MOC for an anti dumping investigation 90 days before the deadline of anti dumping cases. The application letter shall contain sufficient evidence to prove possible continuation or recurrence of dumping and injury as a result of termination on anti dumping duties.

If domestic industry or natural person, legal person or relevant organization on behalf of the domestic industry do not make written applications and MOC does not initiate expiry review on the anti dumping investigations prior to the deadline, the former cases will be terminated by the time of expiry date.

Xinyuan Stainless to expand production

Xinyuan Stainless Steel Corp a privately owned mill in Gaoyao city Guangdong province in southern China announced that it will start its melt shop and annealing & pickling line in 2008.

The production capacity of both the stainless melt shop and the APL will reach about 200,000 tonnes per year.

According to Xinyuan Stainless Steel Corp the products mainly composed of 201 and 304 grades with width up to 510mm and thickness between 2.2mm and 5 mm.

Growth of steel exports ex Jiangsu based ports slows down in 2007

Statistics by Nanjing Customs show that steel export volume through Jiangsu based ports totaled 10.77 million tonne in 2007, worth USD 6.81 billion up by 44% and 76.3%YoY respectively than 2006. However, the growth rate slows down by 128% than that for 2006. The monthly exports are also on the decrease. Tonnages peaked at 1.38 million tonne in last April and stepped down to 0.677 million tonne in December.

EU, South Korea and ASEAN remain major destinations, but exports to USA have witness remarkable decrease. In 2007, the tonnages to EU, South Korea and ASEAN through Jiangsu based ports are 3.41 million tonne, 1.88 million tonne and 1.45 million tonne up by 90.5%, 21.7% and 44.5%YoY respectively. The volume destined for above mentioned areas takes 62.7% of the total exports which go through ports in Jiangsu. During the same period, exports to the United States saw substantial drop by 74% to 234,000 tonnes.

The export cost for steel has been raised remarkably due to surge in iron ore price, energy cost and the introduction of export tariff. It is worthwhile to notice that the advantage in export cost is weakening due to jump in raw material prices, higher environmental protection threshold and quick appreciation in CNY.

AD duty against CR Stainless Sheet import to expire in September 2008

According to China's Ministry of Commerce the duration of anti dumping measures against six commodities including cold rolled stainless sheet shall expire on September 23rd 2008. The anti dumping measures involve Russia, Kazakhstan, Ukraine, South Korea and Taiwan etc.

According to the Article 48 of anti dumping Regulations of the Peoples Republic of China the measures may be prolonged when the review confirms that the termination may cause the continuation or recurrence of the dumping and injury,

The natural person, juridical person, or related organizations of or representing domestic industry may put forward final review application in written form to Ministry of Commerce 90 days before the termination of anti-dumping measures. The applicants are expected to give ample evidence to the Ministry of Commerce. If they fail to show that, the measures will expire as scheduled.

China Jiangsu Golden Horse Steel to list on Frankfurt exchange

Leading Chinese manufacturer and supplier of ball bearings China Jiangsu Golden Horse Steel Ball Inc announced that it has received its European listing on the Frankfurt Stock Exchange with the ticket symbol of "4J3."

A release said that “The approval of the European listing on the Frankfurt Stock Exchange is an important move in order to broaden the Company's shareholder base and increase exposure to worldwide capital markets, and it is part of Golden Horse's international strategy.”

The Frankfurt Stock Exchange is the world's third largest organized Exchange trading market in terms of turnover and dealings in securities. It ranks third in the world behind NYSE and NASDAQ. It is owned and operated by Deutsche Borse, which also owns the European futures exchange Eurex and clearing company Clearstream.

Russian steel output in 2007 up by 2.2% YoY

According to preliminary data by Russia's Federal State Statistics Service that Russia's steel output rose 2.2% to 72.4 million tonnes in 2007 as compared with 2006.

The data shows that cast iron and ferroalloy production shrank 1.6% to 51.5 million tonnes, while the output of finished rolled ferrous metal products went up 2.4% to 59.6 million tonnes.

Russia produced 8.706 million tonnes of steel pipes up by 10.2% from a year earlier including 3.125 million tonnes of seamless and 0.248 million tonnes of welded tubes.

Mirinvest buys ISTIL

International Steel & Tube Industries Limited announced that in London on January 21st 2008 its subsidiary, Metalsrussia Investment Limited, agreed the sale and purchase of ISTIL Group Holdings Limited (Cyprus) the holding company of CJSC "Mini Steel Mill "ISTIL(Ukraine)" based in Donetsk, Metalsukraine Corp Limited at Odessa, ISTIL Middle East LLC in UAE, ISTIL (UK) plc, ISTIL Milton (USA) Inc and MRHK Limited (Hong Kong) and other related companies with Cyprus registered Berycan Limited, a company owned by Russian investment company 'MirInvest' LLC, representing Mr Vadim Varshavsky, a Russian Duma Deputy and its senior management.

According to a statement issued by Mr Varshavsky’s company “He and Stemcor acquired 100% of ISTIL Group Holdings, giving them control of the group’s mini steel mill in Donetsk, a US mill and trading companies across the globe.”

The price paid was not revealed but experts estimated ISTIL to be worth between USD 500 and USD 700 million.

Existing ISTIL management will remain with the Company to assist Mirinvest in managing and integrating ISTIL's business.

Completion of the transaction is expected in April 2008.

ISTIL was advised by Nomura International plc, London and MirInvest LLC was advised by Alfa Bank, Moscow. 

ISTIL is the trade name of International Steel & Tube Industries Limited, a group of companies founded in 1991 by Dr Mohammad Zahoor, a British citizen of Pakistani origin. ISTIL produces up to 1 million tonnes of steel annually. ISTIL produces continuously cast square billets for rerolling and continuous cast pipe billets, as well as hot rolled rounds of carbon, structural, high alloy and stainless steel grades for mechanical engineering works, ball bearing plants, pipe mills, oil and gas industry and nuclear power engineering.

ESTAR to construct first stage of New Zlatoust Electrometallurgical Plant

It is reported that ESTAR Group is investing EUR 75 million in the construction of the first stage of New Zlatoust Electrometallurgical Plant in Chelyabinsk region of Russia. A shipment of Swedish equipment for arc furnace base melt shop was received recently and the construction of a residential building for 300 people and an administrative building was finished.

The first stage includes constructing an arc furnace base melt shop, administrative facilities, public utilities infrastructure.
The second stage envisages construction of a rolling mill.

It was previously announced that construction of a plant for special steels production, New Zlatoust Metallurgical Plant, was launched at the site of the former open hearth furnace of Zlatoust Metallurgical Plant. The volume of investments in construction will reach EUR 130 million and the plant will provide special steels production to the volume of 520,000 tonnes per year. Commissioning of the plant is scheduled for September 2009.

NLMK invested RUB 1.5 billion in environmental activities in 2007

In 2007, investments in environmental projects at NLMK’s production site in Lipetsk exceeded RUB 1.5 billion, including over RUB 1 billion allocated to the construction and upgrade of environmental facilities, implementation of resource-saving and low waste technologies.

The implementation of these environmental projects helped to reduce gross emissions by 8,000 tonnes or 2.5%, decreased water withdrawal from the Voronezh River by 1.4 million meter cube or 2% and diminished the discharge of water pollutants with industrial effluents by 0.7thousand tonnes or 7% as compared to the previous year. Accumulated waste shrank by 220,000 tonnes due to waste recycling.

In rolling production, obsolete GO electrical steel pickling lines were equipped with a set of modern chemical units for the recovery and recycling of hydrochloric acid. Resource-saving technologies were implemented at coke battery #2 and Blast Furnace #5 where coke dry quenching dust-free charge units were installed. In the ferroalloy production facility gas cleaning plant was refurbished. Several units of the heat and power plant and water supply shop underwent major overhauls.

This year, NLMK will complete the upgrade of its process water supply system. Implementation of this project will allow effluent discharge into the Voronezh River to be reduced by 15 times, and river water consumption to be diminished by 4.5 times compared to 2007.

As a result of NLMK’s environmental programs, an index of air pollution in the city of Lipetsk fell from 25 points in 2000 to 8.3 points in 2007. Effluent water discharge was reduced by 26% and accumulated wastes decreased by 16% for the same period. As part of the 1st stage of the Technical upgrade program implementation during 2000 to 2005, NLMK invested RUB 3.4 billion in environmental activities.

From 2007-2011, NLMK plans to invest over RUB 10 billion in environmental projects which form part of the 2nd Phase of the Technical upgrade program.

Centravis launches new pipe mill

Ukrainian Journal reported that Centravis Ltd International Holding has launched a new pipe production line in January by investing USD 15 million.

Centravis said that the installation of the new line is a part of a long term program on the development of production base of Centravis Production Ukraine, which includes technical upgrading and increasing the quality of servicing.

Centravis was established on the basis of Nikopol Stainless Pipe Plant in Dnipropetrovsk region, UVIS Ltd manufacturing and commercial group, Ukraine's major stainless steel pipe producer, in January

Raspadskaya plans USD 323 million CAPEX in 2008

Reuters reported tat Evraz Group part owned Russian coal major Raspadskaya announced that it would invest USD 323 million this year developing its mines and processing plant, keeping output roughly steady. Its 2008 capital expenditure program would include USD 80 million for a new underground mine, Raspadskaya-Koksovaya, which is due to start in the second half of 2009.

Mr Gennady Kozovoy GD of Raspadskaya said that "This is a good year to incur investments that will help ensure our future growth because 2008 high contract prices for our products allow us to anticipate string financial results.”

Raspadskaya said that it plans to mine 13.7 million tonnes of raw coal in 2008. Mr Kozovoy added that "In 2008, our focus will be on cementing the level of production achieved in 2007."

Mr Kozovoi said he expected Raspadskaya's average price per tonne of coal concentrate in 2008 to be about USD 140 in the Russian market and USD 118 for export. As per earlier reports, Raspadskaya achieved USD 93.7 per tonne for coal concentrate price in the fourth quarter of 2007 for domestic market and U91.6 per tonne for export.

Last year Raspadskaya mined 13.6 million tonnes up by 27.7% YoY as compared to 2006.

Raspadskaya, listed in Moscow, is owned 80% by Corber Enterprises, a joint venture between its management and Evraz, Russia's largest steel maker by domestic volume. It currently operates two underground mines, an opencast mine and a coal preparation plant in Siberia.

Ukrzaliznytsia finds steelmakers demands for lower tariffs ungrounded

Ukrainian News Agency reported that Ukrzaliznytsia state railway transport administration considers that demands of metallurgical enterprises to cancel increase of tariffs for railway transportation, which had been introduced by the Transport and Communication Ministry as of February, are ungrounded.

Mr Vasyl Melnychuk GD of Ukrzaliznytsia at a press conference said that the introduced increased tariffs would not entail considerable increase of consumer prices. He said "It would not considerably influence on the consumer prices. I mean that having one billion we want two and let Ukrzaliznytsia state enterprise go bankrupt.’

He also said that in 2007, Ukrzaliznytsia failed to provide earlier planned tariff increase for freight transportations, when metal producers increased prices for produce needed to railways by 25% to 33%.

Mr Melnychuk also said that currently size of Ukrainian tariffs for cargo transportations is twice lower that at Russian railways and 1.7 times lower than at Belarusian railways.

As Ukrainian News earlier reported, managers of metal companies have urged President Mr Viktor Yuschenko and Prime Minister Ms Yulia Tymoshenko to cancel the order by the Transport and Communications Ministry concerning the growth in rates on railway cargo traffic and create an independent commission to regulate the prices and rates of state monopolies, including in the transport sector of Ukraine.

On January 17th 2008, the Transport and Communications Ministry of Ukraine has unified tariffs on domestic, export and import transportation of cargoes by railway beginning from February. In addition, the Transport and Communications Ministry cut discounts on cargo traffic by private open wagons from 33% to 51% to 16% to 36% from February 2008.

Ukraine suggest to EU for joint construction of White Stream pipeline

Ukrainian News Agency cited Ms Yulia Tymoshenko PM of Ukraine, while speaking at a joint press conference with European Commissioner for External Relations and European Neighbourhood Policy Benita Ferrero-Waldner at Brussels in Belgium, as saying that that Ukraine suggests the European Union joint construction of White Stream main gas pipeline to deliver Central Asian gas through the Caspian Sea and Ukraine to Europe.

Ms Yulia Tymoshenko said that "We suggest the commission joint implementation of White Stream project, which would lie through the territory of Ukraine to Europe. It could be more effective. We would like the European Union and Ukraine to be partners in implementation of the project.”

Ms Tymoshenko also said that they agreed on creation of EU donor group, which would allow accumulation of funds for reformation of system of gas supply to Europe. She said such donor conference will take place soon.

ArcelorMittal Kriviy Rih to raise output in 2008 by 2.4% YoY

Ukrainian Journal Staff reported that ArcelorMittal Kriviy Rih, Ukraine's largest steel mill, plans to raise crude steel production in 2008 to 8.3 million tonne up by 2.4% YoY as compared with 2007.The total will include 6.42 million tonnes of converter steel.

VMZ to supply 160,000 tonnes of pipes for underwater section of NordStream

FIS reported that Russian pipe major OMK’s Vyska pipe plant’s total supplies for the Nord Stream will amount to 280,000 tonnes and will begin in March to April 2008, including 160,000 tonnes for underwater section.

According to Nord Stream's management, VMZ supplied 89,400 tonnes of pipes with the diameter of 1,420 mm in 2007, Europipe and OMK proved to possess all necessary competencies and conditions for the production and supply of pipes for this major European project.

UIC starts coking coal production at Elegest deposit in Tuva

FIS reported that United Industrial Corporation has started the production of coking coal at Elegest deposit in Tuva and expects to mine 775,000 tonnes of coking coal in 2008.

In 2010, United Industrial Corporation will extract 3 million tonnes and reach the projected capacity of 13.5 million tonnes of coal per annum in four years, which will make the company the world's third largest producer of coking coal.

The reserves of the deposit are estimated at 900 million tonnes.

Severstal and NAMS Complekt sign a quarterly agreement

FIS reported that CherMK Severstal and NAMS-Complekt signed a quarterly agreement regulating the volumes and prices for metal roll, which stipulates a 20% growth of the hot roll supplies. All in all, roll supplies to enterprises of lifting and transport machine building totaled about 50,000 tonnes in January to September 2007.

Tostekhnadzor toughens safety norms for scrap processing

FIS reported that the Federal Service on Ecological, Technological and Atomic Supervision prescribes that its territorial bodies toughen control in the sphere of metallurgical supervision over hazardous metallurgical objects and take measures aiming the improvement of industrial safety situation at ferrous and non ferrous metal scrap refining.

Earlier the agency found that scrap refining enterprises in Russia often use low quality scrap and wastes of ferrous and non ferrous metals, which is the violation of safety standards. There are cases when metal scrap goes to refining just from the armed forces and contains explosive materials and other hazardous contaminants.

Severstal completes voluntary buy back offer for Celtic

Interfax reported that Severstal has completed its voluntary buy back offer to shareholders of gold producer Celtic Resources Holdings at 290 pence per share. The results are not yet known.

The offer, made by Severstal's Centroferve Limited, expired at 6:00 PM Moscow time and there had been no announcement that it would be extended.

Severstal said at the end of last year, when it extended the offer, that it had received enough applications to buy back shares to enable it to consolidate 84.7% of Celtic.