Indian steel makers announce steep price hikes for steel

It is reported that all Indian steel majors have announced a steep spot domestic price hike for all products across the board in line with international levels to pass on the increased costs of raw materials.

As per unconfirmed media reports the approximate hikes are as under

1. Steel Authority of India Limited
INR 1,500 to INR 2,500 per tonne

2. Rashtriya Ispat Nigam Ltd
INR 3,000 to INR 3,500 per tonne

3. TATA Steel
INR 2,000 to INR 2,500 per tonne

4. Essar Steel
INR 2,000 to INR 2,500 per tonne

5. Ispat industries Limited
INR 2,000 per tonne

6. Uttam Galva Steel Limited
INR 2,000 per tonne

The price hike is likely to be supported by surging international levels, which may see a further surge due to disruption of production by most of the Chinese steel mills this week due to severe winters and power shortages coupled by a very tight supply situation for raw materials, specially in view of recent disruptions in coal supply chain at Australia, South Africa and China and also for other ingredients like ferroalloys.

SAIL MOIL ferroalloy JV in Chattisgarh to start construction soon

It is reported that Manganese Ores India Limited and Steel Authority of India Limited’s 50:50 JV for setting up a 100,000 tonnes ferroalloy project at Bhilai in Chattisgarh is likely to start construction soon.

Mr KL Mehrotraa CMD of MOIL recently said that “The project is likely to come up with an investment of INR 250 crore and the construction work for the project would start in a couple of months.”

The MoU for the JV was signed in June 2007. The JV will produce ferromanganese and silicomanganese through three furnaces to be set up in or around Bhilai in Chattisgarh. JV will initially supply a projected volume of around 31,000 tonnes of ferromanganese and 70,000 tonnes of silicomanganese

Jai Balaji plans 9 million tonnes steel production by 2015

It is reported that Jai Balaji Industries Limited hopes to increase its capacity to 9 million tonnes from the present 1.2 million tonnes by 2015.

Mr Aditya Jajodia CMD of Jai Balaji Group recently said that “We are trying to increase our steel manufacturing capacity to 9 million tonne in next 7 to 8 years. Of the increased production, 5 million tonne would be added from the upcoming Purulia facility in West Bengal. The rest would be produced in our Jharkhand and Chhattisgarh units.”

Mr Jajodia said that “The first phase of the INR 160 billion project at Purulia would be operational within 40 months from the date the land is handed over to us. In the first phase, it would produce 2 million tonne of steel and 1 million tonne of cement.” He informed that the total land required for the project in Purulia is around 3,800 acres and has already acquired about 60 acres. In next couple of months another 1,400 acres would be handed over by the state government.

BSL board approves agreement with Sumitomo

Bhushan Steel Limited has announced that its board of directors, at its meeting held on January 31st 2008, has approved to enter into agreement with Sumitomo Metal Industries Limited for technical assistance concerning the production of high tensile steel sheet and the construction and operation for Orissa Project and supply of hot rolled steel coils.

Sumitomo Metal Industries Limited and Bhushan Steel Limited had announced signed a MoU in December 2007 end regarding Sumitomo Metals' participation in the Bhushan Steel Limited’s Orissa integrated steel project, which is currently under execution. Sumitomo Metals has provided technical assistance to Bhushan Steel Limited and supplied it with steel sheets since 1997. The alliance announced that it intends to deepen this relationship and give further impetus to Sumitomo Metals' strategy to grow its steel sheet business.

Specific details of the alliance are as follows
1. Sumitomo Metals will provide Bhushan Steel Limited with technical assistance for the construction and operation of the integrated steel works Bhushan Steel Limited is building at Orissa in India.
2. Sumitomo Metals will also provide Bhushan Steel Limited with technical assistance for the production of steel sheets for automobiles.
3. Sumitomo Metals will be the exclusive provider of this technical assistance.

Bhushan Steel Limited is building an integrated steel works that will include a blast furnace, steelmaking facilities and a hot strip mill. When it is completed in 2008, its initial capacity is expected to be 2.2 million tonnes per year.

IIL board approves hiving off of its jetty facilities

Ispat Industries Limited has informed BSE that its board of directors, at its meeting held on January 31st 2008, has considered and approved hiving off of its Jetty facilities or operations to an independent entity, subject to all requisite consents or approvals and valuation reports to be received from valuers appointed or to be appointed for the purpose.

MSL Q3 net profit dips by 14.7% YoY

Maharashtra Seamless Limited has announced the following unaudited results for the October to December 2007 quarter

It has posted a net profit of INR 511.60 million for October to December 2007 quarter down by 14.7% YoY as compared to INR 600.20 million in October to December 2006 quarter. Its total income has increased from INR 3504.80 million in October to December 2006 quarter to INR 3885.50 million for October to December 2007 quarter up by 10.8% YoY.

Leitner Shriram to manufacture wind turbines in Chennai

It is reported that Leitner Shriram Manufacturing, a 49:51 JV between Shriram EPC and Dutch firm Leitwind BV, will manufacture wind turbines in its Gummidipoondi plant near Chennai from April 2008.

The INR 200 crore projects will make 1.3 MW and 1.5 MW wind turbines.

Shriram EPC will raise capital of between INR 145 crore and INR 166 crore from an initial public offer to partly finance the proposed project.

SAIL ISP MD Mr Roy superannuates

Steel Authority of India Limited has informed BSE that on attaining the age of superannuation on January 31st 2008, Mr Nilotpal Roy MD of its IISCO Steel Plant has ceased to be director on the board of the company.

KEC Intl bags twp major TLT orders from PGCIL

KEC International Limited announced that it has been awarded two contracts for supply and construction of transmission lines worth INR 97.53 crores by Power Grid Corporation Of India Limited.

1. 400 KV Double Circuit Ranchi to Rourkela Transmission line on turnkey basis. The value of the contract is INR 56.87 Crores. The line is associated with East to West Transmission Corridor Strengthening Scheme of PGCIL Network. The line is to be constructed in the states of Jharkhand & Orissa and the job involves supply of towers, line materials, erection and commissioning. The length of the line is 141 Kilometers and the project is scheduled to be completed by November 2009.

2. 132 KV Single Circuit and Double Circuit Transmission line in North Bihar on turnkey basis. The value of the contract is INR 40.66 Crores. The line is associated with Phase II project of Bihar Sub Transmission System. The job involves supply of towers, conductor, insulator, other line materials, erection and commissioning. The length of the line is 150 Kilometers and the project is scheduled to be completed by July 2009.

India's 2007-08 GDP may grow up by 9% - FM

Mr P Chidambaram union finance minister recently said that full year growth in 2007-08 would be around 9%. For the first half of 2007-08 fiscal year, GDP grew at 9.1%.

He said that “It is a matter of considerable satisfaction that despite turbulence and heightened global uncertainties, our economy grew by 9.6% in 2006-07 and is estimated to grow close to 9% this year. Which side of 9% it is difficult to say.”

According to data released by the Central Statistical Organization, India’s economy has grew faster than previously estimated at 9.6% cent in 2006-07 and 9.4% in 2005-06.With the latest revision, India’s economy grew at 7.76% during the 10th Plan, close to the targeted growth rate of 8%.

Welspun denies interest in Remi Metal

With reference to the news item appearing in a leading financial daily titled “Acquisition buzz buoys Welspun Gujarat”, Welspun Gujarat Stahl Rohren Limited has clarified to BSE that at this juncture there is no proposal by the company to acquire any stake in Remi Metals.

ET, citing unnamed sources, had reported that Welspun group is in talks to acquire Gujarat based steel and seamless pipe maker Remi Metals. The report added that Welspun is also in the process of finalizing plans to market pipes of Remi Metals.

The Saraf family holds 62.5% in Remi Metals. Mr Chiranjilal Saraf started manufacturing of fractional motors and laboratory stirrers under the aegis of Rajendra Electric Motor Industries in 1960 and the group was later christened as Remi. Remi Metals has steel making capacity of 140,000 tonnes per annum and a seamless pipe making capacity of 50,000 tonnes per annum. Its total outstanding to banks stands over INR 400 crore as against its last year’s gross sales of INR 235 crore.

Steel PSUs to increase spending under CSR - Mr Paswan

Mr Ram Vilas Paswan union minister for steel, chemicals & fertilizers has favored higher spending by profit making companies in both private and public sector in corporate social responsibility activities.

He said that the public sector companies under the steel ministry are currently spending between 2% to 5% of their net profit under various CSR activities and they will step up the expenditure in the coming year.

He added that such activities have been benefiting the local population immensely in health care, improvement in educational infrastructure and civic amenities.

Indian Railway’s production units perform well during April to December 2007

It is reported that Indian Railway’s infrastructure manufacturing units, except Integral Coach Factory, have exceeded their respective targets during April to December 2007 period.

The production update for the month of December 2007 is as under

Mundra Port handles 20.3 million tonnes cargo in 9 months

Mundra Port & SEZ Limited has handled 20.3 million tonnes of cargo in April to December 2007 period as against 19.8 million tonnes in the entire 2006 fiscal. Altogether 1,169 vessels called at the port in April to December 2007 period as against 1,138 in the 2006 fiscal.

MPSEZ’s total income was INR 496.5 crore in April to December 2007 period and the net profit after tax was INR 122.3 crore as against total income of INR 587.2 crore and net profit after tax of INR 187.4 crore in 2006 fiscal. EBITDA margin for the 9 months was 62% while for 2006 fiscal it was 54%.

BHEL commissions hydro turbine unit at Bhopal

BS reported that the Bhopal unit of Bharat Heavy Electricals Limited has joined the big league of the hydro turbine segment by touching a 2,500 MW capacity. Under its ambitious expansion plan, the company started commercial production of its new hydro block expansion unit.

Mr Ashok K Puri CMD of BHEL has inaugurated the commencement of the production in the block christened as “Swarna Jayanti Block”. He said that “With this huge facility, BHEL has become the single largest company in the hydro power segment in India.”

He also laid the foundation stone of a new transformer block. The unit has a new computer numerically controlled machines and a new transformer block. BHEL will now boast of an increased capacity of transformer production at 30,000 MVA per annum. It has invested INR 180 crore in the block though the completion is behind schedule.

The unit was scheduled to start commercial production in October 2007, but slow pace of civil work made the progress tardy. This new unit has created 150 direct and 100 indirect jobs of the total headcount added this year.

JSW Energy files IPO papers with SEBI

ET last week reported that JSW Energy has filed papers with the Securities & Exchange Board of India for its proposed initial public offering of 63.2 million shares of INR 10 each. JM Financial, Kotak Mahindra Capital and ICICI Securities are book running lead managers to the issue.

As per report, JSW Energy plans to raise over INR 3,500 crore from the issue to finance construction and development of identified projects aggregating to 3,410 MW in capacity and to repay debt.

JSW Energy has 3,670 MW of generating capacity in the operational, construction or implementation phase and also has power generation projects at early stages of development with a combined installed capacity of 9,600 MW. It is also exploring options in the power transmission, distribution, generation business from non conventional energy sources and considering tie ups with well known equipment manufacturers and suppliers.

JSW Energy’s consolidated revenue has increased to INR 811.54 crore in April 2006 to March 2007 period from INR 550.52 crore in 2003 at compound annual growth rate of 8.07%%. Profit after tax increased to INR 290.4 crore in 2007 at compound annual growth rate of 68.38% against INR 21.46 crore in 2003.

International Tubular doubles ME revenues

Khaleez times reported thateading supplier of oilfield products and services to the global offshore oil and gas industry International Tubular Services has seen continued growth of its business in the Middle East and announced the relocation of its Dubai base in 2008.
The Aberdeen headquartered company, which set up operations in the UAE in 1996, has almost doubled its revenues in the region within the last two years securing contracts in Saudi Arabia, Oman, Qatar and UAE. The group has also been successful in supporting contract wins for the wider group in India and the FSU and has a large customer base of major operators and contactors.

The regional headquarters in Dubai, which act as an operational hub for trading throughout the Middle East and South Asia, currently employs 180 personnel. The base will relocate to a new purpose built facility on a five acre site in Sharjah this month.
Gladstone Pacific and MCC ink nickel supply MoU

Gladstone Pacific Nickel Limited announced that it has executed a MoU for the development of its USD 3.65 billion Gladstone Nickel Project with one of China's largest conglomerates China Metallurgical Construction Corporation. The MoU was signed by the Professor Clive Palmer chairman of Gladstone Pacific Nickel Ltd and Mr Shen Heting president Metallurgical Construction Corporation.

Under the agreement Metallurgical Construction Corporation will provide a commercial offer for construction and financing of the Project, with the potential to establish an off take agreement. Gladstone Pacific Nickel Limited will be responsible for operations of the Project.

Highlights of the MoU are

1. Metallurgical Construction Corporation has confirmed it is prepared to provide a commercial offer for the construction of the entire Project; and will send its technical team to Australia to work with Gladstone Pacific Nickel Limited to evaluate the full construction specification for the Project within 60 days. Metallurgical Construction Corporation has further confirmed its intention to provide a turn key EPC offer for the construction of the project.

2. Metallurgical Construction Corporation will establish a special team to meet with the Company to discuss and finalize the turn key EPC contract specifications. The Company believes the MCC offer will be commercially competitive and provide guarantees for the construction price and EPC process. The parties will work together to enable Metallurgical Construction Corporation to prepare a commercial proposal and offer for the turn key EPC construction of the entire Project by July 21st 2008. The target date for construction to commence in Australia is October 31st 2008 with a target to complete turn-key construction by April 30th 2011.

3. Metallurgical Construction Corporation has also offered to finance or assist in arranging finance sufficient to fund the Project from Chinese banks. Gladstone Pacific Nickel Limited has requested and Metallurgical Construction Corporation has agreed to consider coordination of the sale and off take of nickel in China.

4. Upon execution of the turn key EPC construction contract for the Project, Metallurgical Construction Corporation intends to invest equity in the shares of Gladstone Pacific Nickel Limited.

5. Metallurgical Construction Corporation has an exclusive right to negotiate and finalize financing and construction agreements until September 2008.

Mr John Downie MD of Gladstone Pacific Nickel Limited said "I am particularly pleased with the strong commitment MCC has given to the Project following the recent announcement of the financial results of the Project feasibility study."

Mr Downie said the financial results of the feasibility study for Stage 1 of the Project showed USD 625 million of profit after tax and interest in the first year of full production and a net present value of USD 4,322 million.

Pakistan to generate 20000 MW of thermal electricity by 2019

Mr Muhammadmian Soomro caretaker prime minister of Pakistan said that the government is committed to utilizing diverse sources of energy to meet growing energy demands for the country to prosper. He added that utilization of Thar Coal resources through employing modern mining techniques would be a major step to overcome energy shortages.

He made these remarks while chairing a meeting of Inter Provincial Committee constituted by the Prime Minister to work out expeditious plan for International competitive bidding to produce 20,000 MW coal based thermal power by 2019 from 175 Billion tons of coal resource of Thar.

Mr Soomro said that to sustain the pace of economic development the requirement for energy had increased manifolds and Thar coal could play a pivotal role in bridging the demand and supply gap. He added that through utilization of Thar coal reserves, Pakistan would generate up to 20,000 MW of electricity by 2019.

He said that the share of coal in the overall energy mix should be increased as this low cost energy production would give a competitive edge to Pakistani goods in the international market. The prime minister said the government would employ diverse sources of energy including solar, wind and biogas.

Port & Free Zone inks cooperation agreement with RZD

Gulf News reported that Port & Free Zone World FZE has signed a cooperation agreement with Moscow based Russian Railways to initiate a partnership aimed at improving the supply chain within Russia and its surrounding region. The agreement was signed by Mr Jamal Majid Bin Thaniah group CEO of Port & Free Zone World and Mr Vladimir Yakunin president of Russian Railways.

Mr Bin Thaniah affirmed that this agreement will pave the way to explore investments in marine terminals, logistics and rail that will benefit both parties and support the economic growth of Russia and the surrounding region. He explained that the Russian economy has witnessed persistent growth over the last few years, especially with the rise in international oil prices since the country is a major exporter of this vital energy production commodity around the world. He said that “It is of strategic importance that we pursue opportunities that allow us to enter a market slated to become a key global powerhouse. It will also further expand our global footprint and serve commercial interests in Russia while contributing to that country's national growth.”

Mr Bin Thaniah also said that Russia and Dubai have both witnessed burgeoning bilateral trade over the decades, particularly in the last ten years. There has been a gradual shift from trade and tourism to high technology and contractual commercial investments. He added that “We look forward to working together and to further strengthening our relationship.”

The two parties also agreed to cooperate by sharing information and knowledge and provide support to improve levels of service, productivity, seamless solutions for end customers, competitiveness and to look into opportunities of combined innovative technology, business development and growth, implementing best practices and training for human resources and to adhere to the highest safety, health and environmental standards.

Mr Vladimir Yakunin said that “Our country can learn a lot from Dubai's developmental experience, especially with regards to the management of ports and free zones. Presently, Russia is a rapidly growing market and abounds with resources and potential. We invite Dubai World to seriously think of investment opportunities in our country that will add to its successful portfolio in business and vital sectors such as the ports, shipping, container handling, free zones and miscellaneous logistic services.”

Russian Railways is one of the biggest railway companies in the world with 85,500 kilometer of track and 1.2 million employees. Almost 1.3 billion passengers travel via Russian Railways annually as well as 1.3 billion tonnes of freight. It accounts for over 3.6 % of Russia's GDP and handles almost 80% of all transportation in Russia.

SABIC and Sinopec ink JV for plant at Tianjin

It is reported that China Petroleum and Chemical Corporation and Saudi Basic Industries Corporation has signed a heads of agreement toward forming a 50:50 JV company. Mr Saud bin Abdullah bin Thenayan Al Saud chairman of SABIC and Mr Su Shulin chairman of Sinopec Corporation has singed the heads of agreement.

The new JV will invest in a 1 million tonne per year of ethylene derivatives complex to be set up in Tianjin that will receive all its ethylene feedstock from an ethylene cracker owned by Tianjin Petrochemical Company, a branch of Sinopec Corporation. The total investment will be around USD 1.7 billion, with the complex scheduled to be completed by September 2009.

Mr Saud said that “The new JV with Sinopec Corporation will further strengthen the links between our two companies. This will be SABIC’s first JV in China and we hope this will lead to more JVs and a strong relationship with Sinopec in the important China market.”

Mr Mohamed Al Mady VC & CEO of SABIC said that “China is an important market for SABIC’s global strategy. This heads of agreement is a key milestone towards realizing SABIC’s goal of establishing a manufacturing center in Asia. This facility in Tianjin will serve customers in the world’s fastest growing market and is an important component in SABIC’s corporate strategy of being among the world’s top petrochemical companies by 2020.”

SABIC already has a strong relationship with Sinopec Corporation and Chinese engineers from Sinopec are currently helping to construct a world scale polyolefins complex for SABIC affiliate Yanbu National Petrochemicals Company in Yanbu in Saudi Arabia.

Ceytas Madencilik extends coal mining contract till 2033

Ceytas Madencilik mining company announced that it has extended its mining contract with the Turkish government to 2033.

According to the contract, the company will mine 15 million tonnes of coal until 2033.

Shortage of equipment at Port Qasim delaying operations

The News reported that lopsided handling of cargo at Port Qasim in Pakistan has impacted upcountry importers as port handlers unload ships loaded with 2,000 containers in one day but fail to place 60 containers on a goods’ train in 3 days for transportation to the upcountry.

Local port handlers keep all their equipment engaged in unloading cargo from the ships that anchor at Port Qasim but have not earmarked separate equipment for loading containers on railway bogies. A cargo train leaves the port after it is fully loaded and reaches Lahore dry port in 36 hours.

Sources said that Pakistan Railways had limited bogies and a delay of three days in loading the cargo on the train means loss of one trip to the upcountry. In monetary terms, Pakistan Railways loses PKR 2.4 million due to the delay as its capacity to lift cargo is greatly reduced.

The importers, however, make hectic efforts for early loading of cargo on bogies as they suffer personal loss. Most of them have to pay demurrage for the delay caused by slow loading on train. They said that if they got the goods cleared at Karachi, they could transport them immediately through private transport. However, the transportation cost of road is much higher than the freight charged by the railway, which increases their cost of doing business.

The importers said that the cargo handlers should load all the containers on the goods’ train in six hours, adding the port worked round the clock and had attained full efficiency in unloading and loading of ships. They contended that port handlers used the same equipment for loading containers on train that they used for loading and unloading of goods from ships. They said the equipment was busy on the ships and loading on railway bogies was neglected.

Landmark Group to invest USD 500 million in India by 2010

It is reported that Dubai based Landmark Group is planning to invest USD 500 million in India by 2010.

The investments will be made in setting up more lifestyle stores, home center stores, SPAR supermarket, food court and entertainment zone. Landmark intends to set up 35 lifestyle stores and 15 home center stores by 2010.

At present, Landmark operates 13 lifestyle stores, 5 home center stores and a baby shop store in Ahmedabad, Bangalore, Chennai, New Delhi, Gurgaon, Hyderabad, Mumbai, Vashi and Pune.

Syria ready to activate electricity agreement with Lebanon

Lebanese electricity firm Electricity du Liban said that the Syrian cabinet ratified an agreement under which Damascus will provide Lebanon with electricity until the end of 2008.

Electricity du Liban said in a statement that Syrian council of ministers ratified the agreement singed on December 27th 2007 in Damascus between Lebanon's main power provider and Syria's electricity institution to provide Lebanon with electricity until the end of 2008. Following the signing of the agreement, Syria would be providing 200 MW daily.

Chinese steel mill production hurt by harsh winter

It is reported that Chinese steel mills are cutting production in response to the power shortfall and raw material shortages caused by the current severe weather affecting the country. Heavy snow in southern and eastern regions of China has significantly disrupted railway and road transportation in many areas, leading to the coal supplies of some steel mills to drop to critically low levels. Furthermore, authorities in snow hit areas have asked local steel mills to cut power consumption.

According to the latest information regions in the east, middle and south, southwest and northwest of China are hit by heavy snow now and the production of some steelworks there are affected thus effecting production and deliveries of steel products.

Chinese steel export prices remain unchanged this week

This week, Chinese domestic market prices are largely unchanged and there is little trading as many are winding down for Chinese New Year holiday. Export offers remain firm and transactions for February and March shipment were not bad.

HR Coil
SS400 for Asia
S235JR for EU
4.5mm to 11.5mm

In USD per tonne on FOB basis

HR plate
Q235/SS400 for Asia
S235JR for EU
12mm to 40mm

In USD per tonne on FOB basis

HDG
DX51D
Z140
1mm

In USD per tonne on FOB basis

W Rod
SAE1008 for EU
Q195 for Asia
5.5mm to 12mm
(5.5 limited to 20%)

In USD per tonne on FOB basis

R Bar
BS grade for EU and M East
HRB400 for South Korea and SEA
16mm to 25mm for EU & MEA
10mm to 32mm for SEA

In USD per tonne on FOB basis

CR Coil
SPCC
1mm

In USD per tonne on FOB basis

Billet
20MnSi
120mmx120mm

In USD per tonne on FOB basis

(Sourced from MySteel.com)

Iron ore price negotiations – Would Baosteel deal change the game

It is reported that BHP Billiton has gained ground after it sealed a long term deal with Baosteel which may allow a departure from the traditional benchmark price system.


Ms Samantha Evans spokeswoman for BHP said that flagged a possible departure from the benchmark system She said "The pricing mechanism in the iron ore industry is undergoing an evolution. Long term contract prices which have traditionally only referred to the benchmark need to have the flexibility to accommodate different, more market driven, approaches in the future.”

She added that the new contract with Baosteel gave BHP the opportunity to change with the times in terms of pricing, through mutual agreement, while maintaining a long term commitment and security of supply."

The new deal was announced during a contentious iron ore negotiation season for BHP. Under the new contract with Baosteel, BHP will sell the Chinese steelmaker 10 million tonnes a year for 10 years at a mutually agreed price. Baosteel had previously bought 6 million tonnes a year from the miner.

Gladstone Pacific and MCC ink nickel supply MoU

ET last week reported that JSW Energy has filed papers with the Securities & Exchange Board of India for its proposed initial public offering of 63.2 million shares of INR 10 each. JM Financial, Kotak Mahindra Capital and ICICI Securities are book running lead managers to the issue.

As per report, JSW Energy plans to raise over INR 3,500 crore from the issue to finance construction and development of identified projects aggregating to 3,410 MW in capacity and to repay debt.

JSW Energy has 3,670 MW of generating capacity in the operational, construction or implementation phase and also has power generation projects at early stages of development with a combined installed capacity of 9,600 MW. It is also exploring options in the power transmission, distribution, generation business from non conventional energy sources and considering tie ups with well known equipment manufacturers and suppliers.

JSW Energy’s consolidated revenue has increased to INR 811.54 crore in April 2006 to March 2007 period from INR 550.52 crore in 2003 at compound annual growth rate of 8.07%%. Profit after tax increased to INR 290.4 crore in 2007 at compound annual growth rate of 68.38% against INR 21.46 crore in 2003.

Iron ore price negotiations – CISA protests supply cuts

INTERFAX-CHINA reported that China Iron and Steel Association is against Rio Tinto's recent move to cut long term iron ore shipments to Chinese steel mills by 10%.

Mr Luo Bingsheng secretary general of CISA said that Chinese steel mills recently received written notices from Rio Tinto stating that, in accordance with contract stipulations, iron ore shipments under current long term contracts will be cut by 10% due to a force majeure.

He said that "According to our investigations, some iron ore miners have cut iron ore shipments to Chinese steel mills to under 90% of contracted amounts under this term's prices. We firmly oppose such a move and will take appropriate response measures.”

Mr Luo said that iron ore suppliers should live up to their commitments to Chinese steel mills and stick to international iron ore trading practices.

Mr Du Wei and analyst with Umetal told that regardless of whether Rio Tinto's move is the result of a force majeure or simply a ploy intended to pressure Chinese steel mills in the current iron ore price negotiations, supply to China's domestic iron ore market will tighten as a result. He said "Rio is increasing spot iron ore sales to Chinese customers to make up for the 10% cut from long term contracted supplies. However, the CIF spot prices it is offering at present are not particularly attractive to Chinese steel mills.”

Winter storms hit Chinese port operations

It is reported that blizzards and low temperatures have severely disrupted rail, road and air transport networks at numerous provinces in east, west and central China.

According to Mr Frederick Wong CFO of CIG Yangzte Ports some river ports have stopped cargo loading completely even though traffic along Yangzte River is still smooth. He said operations at Wuhan's Yangxi port had been halted for several days while handling operations at the port of Nanjing had been shut since Monday.

Mr Wong said that loading and unloading activities at CIG's terminals had slowed while snow was cleared and chains were fixed on equipment wheels.

Mr Cai Wei Chun deputy general manager of Shanghai International Port Company Limited Zhendong Container Terminal also said that loading and unloading activities have been slowed down. He said “It's hard to quantify the effect. Let's describe it this way - if we can make 30 moves of containers in an hour in normal circumstances, now we can only make 20 moves in an hour.”

Chinese power shortages estimated at 42 GW

Reuters reported that China's power shortage reached about 42 giga watts in late January and hit more than half of the country, after harsh winter cut coal shipments to power plants and brought down power cables.

The shortages, about 6% of China's total installed power capacity, are about the same as during the country's worst previous crisis in 2004, when a lack of capacity crippled industry along the booming east coast. More than 160 counties and cities in central China were suffering blackouts and with them water shortages, with millions without power for more than a week

Mr Zhu Hongren deputy head of the economic cooperation department of the National Development & Reform Commission said China is under huge pressure to supply coal and electricity. He said "Coal stocks at key power plants are still well below the normal level of 10 days to 15 days.”

The government has rushed to give coal shipments priority on the country's railways and officials said they were making preparations to get grids back to normal once the weather improved, but with the worst hit areas predicted to face another three days of snow, that may be little comfort to those still without light or heat.

As per analysts, even when coal supplies are back to normal, some analysts said shortages could drag on because a huge rise in coal prices had not been matched by an increase in power tariffs.

In the first 20 days of January, China produced 119 million tonnes of raw coal, 3.4% more than a year earlier but much slower than the 9.4% increase in 2007. China also generated 13.6% more electricity in January but down by 1.3% from December.

Severstal to resume Cherepovets BF operations in few days

OAO Severstal announced that operations at Blast Furnace No.5 at its Cherepovets steel plant will resume as early as this weekend, following a recent fire which resulted in the death of a Severstal employee and injury to two others.

Mr Anatoly Kruchinin GD of Severstal Cherepovets Steel Mill said "The procedures we have put in place will serve to minimize the impact of the incident on production".

The release added that the commission set up to investigate the incident is at this stage considering two possible causes of the incident: a partial failure of refractory resulting in local overheating of the armor of the air conduit and its subsequent rupture and the failure of a weld on the Cowper stove.

CF should resume operations using three Cowper stoves in a process ensuring standard productive capacity as early as Saturday, while repairs of the failed stove will be carried out at the same time.

MMK signs design contract for Prioskolsky GOK

Mr Viktor Rashnikov Chairman of OJSC MMK Board of Directors and Mr Viktor Ten Director of Belgorod LLC Design Institute Tsentrogiproruda, signed a Design Contract for the construction of Prioskolsky Iron Ore Mining and Beneficiation Plant.

Magnitogorsk Iron and Steel Works started implementing the project for the development of Prioskolsky Iron Ore Deposit with the reserves of 45 million tons of rich ore and over 2 billion tonnes of ferruginous quartzite. On January 11th 2008 OJSC MMK’s branch Prioskolsky Iron Ore Mining and Beneficiation Plant was registered in the city of Stary Oskol, Belgorod Region.

The Iron Ore Mining and Beneficiation Plantcapacity and Iron Ore Deposit reserves will allow to completely covering OJSC MMK’s requirement in iron ore raw materials for over 60 years, and favorable geographic location of the deposit and large iron ore material reserves will allow considering their use both for OJSC MMK’s needs and for the Company’s international projects.

According to the terms and conditions of the Contract LLC Tsentrogiproruda will carry out the design and exploration work as a general contractor and will be responsible for the agreement of the project documentation and obtaining of approval of GlavGosExpertiza of Russia. It will prepare the design solutions and perform the designer supervision during the construction.

Preparation and approval of the technical design will be completed in the first half of 2009. According to MMK’s plans the construction of infrastructure facilities of the Iron Ore Mining and Beneficiation Plant will start as early as in the end of 2009. The commercial iron ore production will start not later than December 2012 and in 2016 the Plant will produce over 22 million tonnes per year. In 2017 the Plant is expected to reach its annual design capacity of 35 million tonnes of raw iron ore. The production of commercial products, such as sinter, pellets and iron ore concentrate will amount to 15 million tonnes. The achieved production of iron ore materials at Prioskolsky Iron Ore Mining and Beneficiation Plant will allow to completely covering MMK’s requirement in iron ore materials.

EBRD becomes Ukraine's top investor in 2007

It is reported that the European Bank for Reconstruction and Development became the biggest finance investor into Ukraine's economy in 2007, the bank told. The aggregate annual investments amounted to USD 1 billion as was projected at the start of the year.

The bank's contracts with Ukraine also hit a record of 32. The funds allocated under syndicated loans tripled, as compared to 2006, hitting EUR 321 million, the record of EUR 500 million. The number of the bank's Kyiv based staff increased by 30% and a new regional office was opened in Dnipropetrovsk.

A number of specific project contracts were also concluded, including a EUR 100 million loan for the communal Kyiv Subway and Kyivpastrans enterprises. The program stipulating provision of USD 100 M in loans for the gasoline station network OKKO run by OJSC Halnaftogaz has been implemented.

KMAruda to expand iron ore concentrate production

FIS reported that at the KMAruda combine in the city of Gubkin, Belgorod region under review is an investment project aiming the expansion of the enterprise's production capacity to 5.6 million tonnes per annum.

The working group composed of specialists of the enterprise and PiterGOR project one of Russia's leading engineering company in the area of designing enterprises of the mining industry and high complexity objects offered 6 options of project implementation.

One person died in Kostenko mine in Karaganda

Kazakhstan Today reported that one person died in Kostenko mine in Karaganda.

According to the Emergency Ministry, on January 31st 2008 the electro mechanic of Kostenko mine was fatally injured by exfoliated piece of coal.

Kazakhstan plan to build steel plant and aluminum smelter

It is reported that Kazakhstan plans to build a new aluminum smelter and, separately a USD 1.2 billion steel plant.

Mr Galym Orazbakov Industry and Trade Minister said that Kazakhstan wanted to attract foreign investment for the aluminum project. He said its start was slated for 2008 to 2009 but did not say how much it would cost. He said that "It's too early to talk about it, adding that it would be built in the bauxite rich region of Kostanai in the north of the country. We have discussed it with investors from the Arab world, they have shown interest in the project.”

Separately, the Sokolov-Sarbai Mining and Production Union, which is part of the ENRC said it would invest USD 1.2 billion to build a new steel products plant in Kazakhstan. Mr Vladimir Shcherba VP of Sokolov's said its construction was likely to start as soon as the end of this year but did not say where.

Russian GDP growth reaches 8.1% in 2007

RIA Novosti citing Mr Dmitry Medvedev First Deputy Prime Minister of Russia's as saying that GDP growth reached 8.1% in 2007.

He said that "The Russian Statistics Service has calculated GDP growth results for 2007, and according to their data, which differs from economics ministry reports, the figure was 8.1%."

The Economic Development and Trade Ministry earlier assessed the country's 2007 GDP growth at 7.7% to 7.8%.

UC RusAl to launch aluminum plant in Nigeria

RIA Novosti reported that Alscon, a smelter in south Nigeria owned by Russia's aluminum giant UC RusAl will resume operations within a month.

Mr Alexander Livshits director for international projects of UC RusAl said "We want to launch the Alscon plant in Nigeria within a month. He predicted that global aluminum output will rise at an annual rate of 7% to 8% over the next few years.”

RusAl closed a deal to acquire a majority stake in Alscon receiving a 77.5% share in a 193,000 tonne smelter, a port on the Imo River and a power generating station. Germany's Ferrostaal AG and the government of Nigeria remain minority shareholders with 7.5% and 15% blocks respectively.

Alscon, based in Nigeria's Akwa Ibom State, produced its first metal in 1997, but was brought to a standstill in 2000, caused by high production costs, inadequate gas supply, and a lack of working capital.

BHPB bid for Rio - Rio gets a Chinese wall

It is reported that state owned China’s largest aluminum producer Chinalco has hooked up with the world’s largest aluminum firm Alcoa and taken a 12% stake in Rio at GBP 60 per share, a whopping 20% premium to Thursday’s closing price.

The blocking move has been structured through a Singapore based vehicle called Shining Prospect Pte Ltd, owned by Chinalco and into which Alcoa is injecting USD 1.2 billion. Shining Prospect has said it does not intend to launch an offer for Rio itself, but reserves the right to do so if BHP proceeds and or Rio draws the attention of another predator.

Mr Xiao Yaqing president of Chinalco said “Our acquisition of a significant strategic stake in Rio Tinto plc today reflects our confidence in the long term prospects for the rapidly evolving global mining sector. We have confidence in the fundamental value of the Rio Tinto Group and the management’s strong ability to realize that value for shareholders. This strategic commitment underlines Chinalco’s determination to increase and diversify its exposure to the sector and to be well positioned within this changing industry landscape.”

Mr Alain Belda chairman & CEO of Alcoa said “We have long believed that Rio Tinto has a world class portfolio of assets and is very well positioned to prosper in the current mining cycle. This investment, made in partnership with Chinalco, allows us to mutually benefit from developments in the sector. We have known Chinalco for many years, dating back to our participation in the successful launch of Chalco’s IPO, and are looking forward to this new venture.”

Chinalco is a diversified metals and mining company based in Beijing, China. Chinalco is one of the largest diversified metals and mining companies in China and is engaged in exploration, mining and downstream processing of mineral resources including bauxite, alumina, aluminum, copper, as well as other nonferrous and rare metals. Chinalco is the largest alumina and primary aluminum producer in China and one of the leading alumina and primary aluminum producers in the world.

Headquartered in Beijing and founded in 2001, Chinalco has operations across 21 provinces in China with subsidiaries and offices in 9 countries across 5 continents including operations and investments in Australia, Canada, Peru, Fiji and Guinea. Chinalco employs 221,000 people and for the 2007 financial year had total expected sales of USD 18.3 billion with profits of USD 2.99 billion. Chinalco’s largest asset is a 38.56% stake in Chalco which is listed on the New York, Hong Kong, and Shanghai stock exchanges. Chalco has a market capitalisation of more than USD 50 billion and had revenues of over USD 8 billion in 2006.

Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, through its growing position in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa® wheels, fastening systems, precision and investment castings, structures and building systems. The Company has 107,000 employees in 44 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. Alcoa is listed on NYSE and has a market value of approximately USD 27 billion.

Lehman Brothers and China International Capital Corporation acted as financial advisors to Chinalco and SPPL.

EU launches AD probe on CR SS from China, S Korea and Taiwan

It is reported that the European Commission has launched an anti dumping probe into imports of stainless steel products from China, South Korea and Taiwan.

The commission said the investigation was initiated following a complaint lodged on December 21st 2007 by the European Confederation of Iron and Steel Industries, a Brussels based industry body representing major EU steel producers. Upon receiving complaints, the commission has 45 days to decide whether to launch an anti-dumping investigation.

The European Commission may impose provisional anti dumping duties on imports within nine months of the launch of an investigation, followed six months later by possible definitive duties that would normally last five years.

A move to impose duties would have to be approved by a majority of the EU's member states, about half of which are usually reluctant to take measures to slow imports. The bloc has split in recent years over attempts to impose restrictions on imports of textiles, shoes and other products.

Mr Gordon Moffat director general of Eurofer said "We welcome the news that the preliminary analysis of the European Commission confirms that there is sufficient evidence both in terms of dumping and injury caused to the European industry to justify the initiation of a proceeding.”

European steelmakers association Eurofer complained to Brussels in October that China and other countries were dumping steel in the European Union. Eurofer estimated that Chinese steel exports to the EU probably doubled in 2007 to 10 million tonnes from record levels in 2006.

EC had already begun an investigation into possible dumping of hot dipped galvanized steel products from China earlier. Eurofer has also complained to the Commission about wire rod imports, used in construction, from China and Turkey.

ArcelorMittal to restart Seraing blast furnace No 6

ArcelorMittal announced that it has agreed to a solution proposed by the federal and regional governments of Belgium regarding the CO2 quota allocation issue and will consequently prepare for the relaunch of the Seraing blast furnace No 6 at Liège in Belgium.

The release said that the federal and regional governments of Belgium met today regarding the CO2 quota allocation issue and the solution they submitted to ArcelorMittal to allow for the restart of the Seraing blast furnace involves an intervention from the part of the Regional and the Federal governments as well as from the part of the companies.

ArcelorMittal has agreed to the intervention requested from the company and is currently planning the actions needed to re launch the Liège blast furnace with a view to start producing hot steel starting end of February.

Mr Michel Wurth member of ArcelorMittal's Group Management Board, in charge of Flat Carbon Europe, Automotive, Plates and R&D, expressed his satisfaction following this proposal. He said "We have just been informed about the solution which emerged from the Consultation Committee regarding the reopening of blast furnace n°6 in Liège. We are happy to hear that the Walloon and Federal governments were able to come up with substantial CO2 quotas within their allocation plan. I thank the authorities who have thus made possible the immediate relaunch of the blast furnace. This announcement allows us to proceed, together with the Walloon authorities and the social partners, towards this relaunch which will definitely strengthen the competitiveness and job situation in Liège and the Walloon Region".

GSHL denies Kremikovtzi sale news

Reuters reported that Mr P Mittal MD of Global Steel Holdings Ltd, the majority owner of Bulgaria's largest steelmaker Kremikovtzi, said on Friday that he is not in a hurry to sell the loss making mill and would consult a financial adviser first.

Mr Mittal told a news conference in Sofia that "We have no commitment to any person or investor of selling the stake of Global Steel Holdings Ltd in Kremikovtzi.” He added that Global Steel Holdings Ltd is in talks with several foreign investors to sell its stake. As per media reports US Steel Corporation and two Ukrainian billionaires Mr Kostyantin Zhevago and Mr Rinat Akhmetov have been interested in buying Kremikovtzi.

Mr Mittal denied reports that he was close to a deal with Mr Zhevago. He said "This message about the Ukrainian that we are close to business is not correct. We had dialogue but nothing was concluded. Nothing is there on the ground.”

Mr Mittal said GSHL has appointed a financial adviser to devise the best strategy for Kremikovtzi and contact would be suitors and that the adviser's report would take at least eight weeks.

He said that “We will try to do our best to support business. Things will improve. We have already invested working capital of EUR 20 million to stabilize and improve production. The market is good for now. I am certain this will help the company show what it can do. It has been rumored recently that the company will be closed and we have agreements with some people.”

Meanwhile the Bulgarian managers of the company including Mr Alexander Tomov CEO handed in their resignations and Mr Tomov was replaced by Mr Plamen Stoyanov.

Bulgarian government, which holds a 25% stake in the plant, has urged Mr Mittal and potential investors to provide guarantees that the mill, one of Bulgaria's largest industrial plants, would not close as Kremikovtzi is important for the economy, providing 10% of exports and 100,000 jobs.

Rio Tinto and Hyundai Steel ink long term iron ore pact

Rio Tinto and its joint venture partners have sealed long-term contracts to supply iron ore to Hyundai Steel, under which more than 40 million tonnes of iron ore from the Pilbara will be exported to the Korean producer over the next decade.

Under the contracts, Hamersley Iron, Robe River and Hope Downs will commence shipments in 2009 ramping up to an annual total of 4.6 million tonnes from 2012 to 2019.

Mr Sam Walsh CEO of Rio Tinto Iron Ore said the agreements marked the next stage in a relationship that had endured through most of the lifespan of the Pilbara iron ore industry. He said "Rio Tinto has enjoyed a long relationship with Korea, going back to our first shipment in 1973. These agreements with Hyundai Steel are the culmination of several years' negotiations and open the next chapter in what has been a successful, mutually rewarding partnership."

Hyundai Steel is South Korea's second largest steel maker and the world's second largest electric arc furnace producer.

BHPB bid for Rio - Rio repeats value statement

Rio Tinto vide a release said that it has noted the announcement by Chinalco and Alcoa.

Mr Paul Skinner chairman of Rio Tinto said "This unsolicited development, of which we had no prior notice, reinforces our view of the long term value of Rio Tinto.”

He added that "In line with our long standing strategy, we shall continue to focus on operating our many world class assets to maximize value and prospects for all shareholders."

Ternium completes sale of IMSA assets to BlueScope

Ternium SA announced today its subsidiary IMSA Acero SA de CV has completed the previously announced sale of its interests in Steelscape Inc, ASC Profiles Inc, Varco Pruden Buildings Inc and Metl-Span LLC to BlueScope Steel North America Corporation, a subsidiary of BlueScope Steel Limited for a total consideration of USD 726 million.

Ternium will use the proceeds of the sale to prepay financial debt. Ternium sold the assets after determining that they were not a strategic fit with its production system. The Company continues to own Steelscape’s Shreveport LA plant, which has already been integrated into its operations. Ternium also has retained its pre engineered metal buildings and insulated steel panels businesses in Mexico.

Mr Daniel Novegil CEO of Ternium said “We are very pleased with the completion of this transaction, as it enables us to focus on our core businesses in the Americas. We will continue working to increase our penetration of attractive market segments in which we believe we can compete and add value to steel-consuming customers.”

Ternium is one of the leading steel companies in the Americas, offering a wide range of flat and long steel products. With its main operations in Mexico, Venezuela and Argentina and 21,000 employees, Ternium has annual sales of approximately USD 10 billion and annual shipments of approximately 12 million tons of finished steel products.

PT Krakatau Steel to invest USD 400 million in steel project

Indonesia's PT Krakatau Steel plans to invest USD 400 million this year to expand its steel processing facilities to reduce imports of semi finished steel products by a number of projects.

It plans to set up a blast furnace with the capacity to produce 1 million tonnes of steel slab and a mini blast furnace with production capacity of 500,000 tonnes of steel slab a year. Aside from blast furnaces, the company plans to expand production capacity at its hot strip mill plant to 2.4 million tonnes of hot rolled coil from 2 million tonnes.

Mr Fazwar Bujang president director of PT Krakatau Steel said that "The projects aim to reduce imports of semi finished products such as slab.”

PT Krakatau Steel is Indonesia's sole producer of hot rolled steel coil and cold rolled steel coil and annually imports about 500,000 tonnes or 25% of its demand for steel slab, used in production of hot rolled coil steel. Krakatau Steel produced 1.8 million tonnes of steel products in 2007 or 30% of total Indonesia's steel demand at 6 million tonnes.

Sidor union to end strike

Reuters repapered that the workers at Venezuela's largest steelmaker Ternium Sidor will end a two day strike on Friday night but could walk off the job again next week.

Mr Nerio Fuentes boss of workers union told Reuters that workers had not reached a deal with management in a contract dispute and could strike again on Wednesday if new talks were unsuccessful.

Mr Fuentes said the company had not responded to the latest union offer and that government mediated talks would begin again next week. He said "We were waiting for the counter-proposal today but they didn't present anything. They sat at the table and just apologized.”

The dispute at Ternium Sidor has dragged on since last year and has produced a number of short stoppages at the company.

Xstrata declares force majeure on ferroalloys from South African

Reuters reported that Xstrata has declared force majeure to its vanadium and ferrochrome customers as power shortages disrupt mining in South Africa. Xstrata said that although it might be able to deliver the materials as normal but has declared force majeure to cover the possibility that it might miss delivery schedules.

It said "Xstrata Alloys has declared force majeure to its ferrochrome and vanadium customers as a precautionary measure in the light of reduced electricity supply to its ferrochrome and vanadium operations from Eskom, as part of a national energy shortage in South Africa.”

It added that "It is not possible at present to evaluate accurately what impact these restrictions will have on the supply of ferrochrome and vanadium to our customers, but we will work to mitigate any impact on customer deliveries as far as possible.”

South Africa is the world's biggest producer of ferrochrome, an essential ingredient in stainless steel, and is also a major source of vanadium, used to harden steel for use in oil pipes. Power cuts have disrupted production across the South African mining industry.

Prices of vanadium and ferrochrome jumped this week, as the prospect of lower supply from South Africa has sent customers in Europe scrambling for metal.

Usiminas buys 3 iron ore miners in Brazil

It is reported that Brazilian steelmaker Usiminas has bought three local iron ore companies located in the central Minas Gerais state of Brazil for a total of USD 925 million.

The three miners are
1. Mineracao J Mendes
2. Da Somisa
3. Global Mineracao

Usiminas said that "The initial payment was USD 925 million. There can be additional payments depending on tests of the quality and quantity of the reserves over the next two years.”

Nippon Steel Corp is the largest single shareholder in the consortium that controls Usiminas.

Outokumpu plan to increase high grade SS capability

Outokumpu's has announced that it plan to increase the share of direct end user and project sales and to expand the value added special stainless steel products capacity.

Its board of directors has approved a major investment to start the production of high quality ultra clean ferritic stainless steel grades, as well as bright annealed austenitic and ferritic stainless steel products at Tornio in Finland. The total investment is some EUR 370 million, including also a service center in Southern Germany. The investment project in Tornio also comprises some upgrades in the melt shop and finishing lines. The return on the investment is well above the Group target of 13%.

The released said VOD equipment will be installed in the Tornio melt shop to enable the production of high quality ultra clean ferritic stainless steel with very low carbon, nitrogen and hydrogen content, for the most demanding end-use applications, within the current capacity frame. High purity ferritics are mainly used in automotive and chemical industries, as well as in building and construction.

The released added that a new bright annealing and cold rolling line will be installed at Tornio Works. The new line will enable Tornio to start the production of both austenitic and ferritic bright annealed products, with an annual capacity of some 100 000 tons. The bright annealed finish stands for a mirror like shiny stainless steel surface, and the products are typically used in applications like domestic appliances and food processing.

The released also said that the investment, together with the on going replacement of the No 2 annealing and pickling line, will increase the total finished products installed capacity of Tornio Works from the current 1.2 million tonnes to some 1.3 million tonnes by the end of 2010. The production capacity of ferritic grades will be some 230 000 tonnes annually. After these investments Outokumpu has the capability of producing all major stainless steel grades.

Cargill Coal buys 30% stake in Mashala coal miner in SA

Reuters reported that Cargill Coal has bought a 30% stake in South African junior coal miner Mashala Resources. The price for the deal, which was concluded in the past two weeks, was not disclosed.

Mashala Resources is one of the junior miners currently with around 220,000 tonnes a year of export access via Richards Bay Coal Terminal under the Quattro program for Black Economic Empowerment miners. Mashala has been seeking greater export access to reflect growing production from its South African mines.

Cargill Coal last year bought a 49% stake in New Zealand coal miner Solid Energy and is on the acquisition trail for stakes in coal assets in South Africa.

Xstrata Nickel declares offer for Jubilee Mines

Xstrata Nickel Australia Pty Limited has declared its takeover offer for Jubilee Mines NL free from all conditions, including the 90% minimum acceptance condition.

Xstrata Nickel Australia Pty Limited has instructed Macquarie Capital Securities Limited to commence processing acceptances under the Institutional Acceptance Facility. At the time this instruction was given, Xstrata Nickel Australia Pty Limited had a relevant interest in Jubilee of 61.66%.

Mr Ian Pearce CEO of Xstrata Nickel said “We encourage those shareholders who have not yet accepted our offer to do so now to ensure that they receive payment with a minimum of delay. Our offer of AUD 23 per share is final and will not be increased.

He added that “We are delighted to welcome Jubilee Mines employees into Xstrata Nickel and to announce the establishment of Xstrata Nickel Australasia as a new operating division with an excellent operational track record and exciting near term growth potential.”

Samuel Manu-Tech acquires Tubular Products

Samuel Manu-Tech Inc announced that it has acquired Tubular Products Company. . This acquisition complements Samuel's existing tube bending and welding capability at its Tube operations located at Statesville in North Carolina

The transaction is structured as a 100% stock purchase. The purchase price is USD 33 million plus an earn out payment, subject to certain adjustments for working capital items. Management expects this acquisition to be accretive to earnings in its first full year of operations. Funding for the acquisition came from Samuel's existing revolving credit facilities.

Tubular was founded in 1973 and is based at Birmingham in Alabama, employing approximately 160 people in its 150,000 square foot facility. Annual sales of Tubular approximated USD 30 million in its most recently completed fiscal year ended August 30th 2007. It is a recognized leader in the design, engineering, manufacturing and supply of laser cut carbon steel tubing, fabricated tubular components and welded sub assemblies used primarily in outdoor and power transmission equipment, all terrain automotive and other vehicles and reusable coil carriers in North America.

Mr Mark Samuel chairman & CEO of Samuel said "We are excited to welcome Tubular Products, their management and employees to our group of companies. We consider this to be a positive addition to our tubular products operations within our growing family of Metal Processing businesses."

Samuel Manu-Tech Inc is a leading North American industrial products and technology company producing a wide range of steel, plastic and related industrial products and services from locations in Canada, the United States and Mexico.

Schnitzer Steel likely to buys JT Knight Inc

It is reported that one of US’s largest metal recyclers Portland based Schnitzer Steel Industries is likely to close a deal to acquire assets of the scrap metal company JT Knight Inc in Columbus. As per report, the purchase will be made by its subsidiary Schnitzer Southeast LLC. Although it will be part of Schnitzer Southeast, the Columbus business will retain the JT Knight name.

Mr Rick Caldwell president of JT Knight, a fifth generation family owned company said 'We feel like it is a good strategic move for our company. The acquisition increases JT Knight's global presence and offers growth opportunities while giving the owners and employees more security.”

He said the infrastructure of the business will stay the same. Caldwell and his three partners will continue to manage the business and the employees will not be affected. He said the company's 50 employees will get higher pay, better benefits and job security through the acquisition.

JT Knight was founded in Columbus in 1900. The company purchases and processes a variety of metals, including aluminum, copper, brass and stainless steel. The recycled material can end up becoming anything from soda or beer cans to an automobile engine block.

After the acquisition, Schnitzer Southeast will have 12 scrap metal recycling facilities in Alabama and Georgia.

Kobe Steel net profit in 9 months dips by 9.6% YoY

Kobe Steel Limited posted net profit of JPY 68.69 billion in April to December 2007 period fell by 9.6% YoY as against JPY 75.99 billion in April to December 2006 period due to hit by soaring ocean freights for steel materials, as well as a drop in appraisal gains on its metal inventories. It’s operating profit dropped by 3.6% YoY to JPY 140.97 billion, while revenue rose by 13.3% YoY to JPY 1.539 trillion.

For the full year to March 2008, it cuts its revenue forecast to JPY 2.13 trillion from JPY 2.15 trillion, citing lower than expected prices of aluminum and copper materials. But Kobe Steel maintained its projection for net profit of JPY 90 billion and operating profit of JPY 195 billion.

Hyundai Heavy 2007 operating profit up by 99% YoY

Hyundai Heavy Industries has posted an operating profit of KRW 1.75 trillion in 2007 up by 99% YoY as against KRW 878.9 billion in 2006. Net profit surged by 144% YoY to a record KRW 1.74 trillion as it earned KRW 188.3 billion in interest income and KRW 482.5 billion in non operating gains from its profitable affiliates, including Hyundai Samho Heavy and Hyundai Oilbank. Sales increased by 23.7% YoY to KRW 15.5 trillion.

For the fourth quarter, its operating profit surged by 69.7% YoY as global demand for large-size vessels increased sharply thanks to increased international trade. Fourth-quarter operating profit came in at KRW 556.1 billion as compared with KRW 327.7 billion in fourth quarter of 2006.

Oil price hikes sparked a number of sizable orders from the Middle East and a rise in shipping charges enabled international shipping companies to place more new orders. It said that "The strong performance was attributed to vessel price hikes and orders of high profit margin ships, which offset any negative impact of a rise in steel plate prices."

Sales rose by 18.3% YoY to KRW 4.25 trillion, while net profit jumped by 78.8% YoY to KRW 512.9 billion. It will pay a dividend of KRW 7,500 in cash to its common shareholders for 2007.

Kobe Steel open business office in Australia

It is reported that Japan's Kobe Steel Ltd has opened at Sydney in Australia, its first ever business office devoted exclusively to raw materials used in making steel.

As per report the new office will gather information on production trends for iron ore, coal and other raw materials from local mining companies, as well as port congestion and freight rates on transport ships. It will also assist in making arrangements for transport ships and deepen ties with trading firms involved in resource development.

Australia is already Kobe Steel's largest steel raw materials supplier, having provided roughly half the 11.7 million tonnes of iron ore and 6.3 million tonnes of coal procured by the steelmaker in fiscal year 2006. With many new large scale projects coming on stream, including an iron mine being developed by Mitsubishi Corp. Australia will likely remain an important source of raw materials in the future.

Vale clarifies on investments in Colombia

Vale has clarified that its investments in Colombia had not been analyzed by its senior management and as a consequence no decision had been made about them.

It said that “In accordance with its long term strategic plan Vale has been looking for opportunities to exploit its large and high quality bauxite reserves. In order to make it feasible, a key condition is the availability of low-cost energy, a factor that ultimately will define the location of an eventual new aluminum smelter.”

It added that “In line with its strategic goal, Vale, with the cooperation of the Colombian government, has been evaluating some power generation projects in the country. However, there was no technical definition about any specific project yet.”

Colombia has been indicating its interest in attracting investments to its coal business. On the other hand, Vale became a coal producer with the acquisition of Australian operations in 2007 and it plans to develop the Moatize project in Mozambique as well as it is performing a feasibility study of the Belvedere coal deposit in Australia. In addition, the Company is building a coal fired thermal plant at Barcarena in state of Pará of Brazil.

Eramet Q4 profit up by 30%YoY

The consolidated turnover of the Eramet group rose by 30.5% YoY in the fourth quarter 2007 as compared with the fourth quarter 2006, indicating acceleration in the group's growth. In the full year 2007, turnover reached EUR 3,792 million up by 24.1% YoY. All three of Eramet's divisions registered strong annual turnover growth.

Eramet Nickel posted turnover of EUR 335 million in the fourth quarter up by 15.9% YoY due to continuing high nickel prices and an upturn in deliveries compared with the third quarter. Turnover in FY 2007 rose by 26.6% YoY to EUR 1,290 million.

The turnover of Eramet Manganese increased by 53.2% YoY as compared with the fourth quarter of 2006. In the full year, the turnover of Eramet Manganese reached EUR 1,473 million up by 28.4% YoY.

Eramet Alloys accelerated turnover growth in fourth quarter 2007 by 20.8% YoY and by 15.8% YoY in the full year 2007 to EUR 1,033 million.

In EUR million

Peabody Q4 net income down on discontinued operations loss

Peabody Energy Corp said its Q4 net income dropped to USD 35.8 million from USD 175 million a year earlier, as latest period results included a loss from discontinued operations.

Peabody expects earnings of 5 cents to 25 cents a share in the first quarter and USD 1.00 to USD 1.85 a share for 2008. Earnings on a continuing operations basis are predicted between USD 14 million to USD 66 million for the first quarter and USD 270 million to USD 500 million in 2008.

Peabody expects 2008 results to be affected by issues including Australian coal price settlements for the upcoming Japanese fiscal year, coal chain performance and about USD 150 million in higher energy related expenses.