SAIL sees great synergy with Nilachal Ispat

PTI reported that Indian steel giant Steel Authority of India Limited sees synergy with Nilachal Ispat Nigam Limited and is willing to invest INR 10,000 crore to ramp up its production capacity to 3 million tonnes.

Mr SK Roongta chairman of SAIL told PTI that "We are seriously interested to merge Nilachal Ispat with us as it would create a greater synergy. We have decided to invest INR 10,000 crore to ramp up its production capacity to 3 million tonnes per year.”

SAIL and NINL merger proposal is delayed after the Orissa government conveyed its disagreement on NINL valuation by IDBI Capital in September 2007, although appointed by the state government, pegged the share value of NINL at INR 27. NINL stakeholders argued that IDBI Capital did not taken into account the iron ore mines granted in favor of NINL while evaluating prices. But commerce ministry officials were understood to have pointed out that valuation of the company could not be an impediment for the merger as that could be mutually agreed upon by the stakeholders and suitors. Moreover, MMTC has been told that managing a steel plant was not within its core area of competence.

Steel ministry has also sought the consent of Orissa government and MMTC on the valuation to facilitate the merger and circulated a draft note for the consideration of the Committee of Secretaries, which is slated to meet soon to begin deliberations on the future course of action of the plant.

NINL is jointly promoted by MMTC and the Industrial Promotion and Investment Corporation of Orissa with MMTC holding the majority stake and Orissa government owns 26.29% through Industrial Promotion and Investment Corporation of Orissa and Orissa Mining Corporation while some stake is also held by MECON. NINL has a 1.1 million tonne capacity integrated iron and steel plant in Orissa’s Jajpur district. The company has a captive iron ore mine given by the Orissa government. The mine, located in the coastal state's Keonjhar district covers an area of 1,798 hectares and has reserves estimated at 100 million tonnes. The reserves are expected to meet the requirements of a plant with capacity of a little more than two million tonnes.

Delhi HC quashes Dantewada iron ore license to TATA Steel

PTI reported that the Delhi High Court, on a petition filed by NMDC Ltd seeking, has quashed the Center’s decision to grant a prospecting license to TATA Steel Limited for mining iron ore in Chhattisgarh by saying that it has not got environmental clearance. HC said that a clearance under the Forest Act is mandatory before allowing any non forest activities in a forest area and this was not considered by the Centre while granting the license.

Hon’ble Justice S Ravinder Bhatt said that "The impugned order dated February 14th 2007 issued by the Central Government and all the proceedings under Mines and Mineral (Development and Regulation) Act leading up to it are hereby quashed as being issued without jurisdiction and contrary to law.”

He added that "Whenever the state is asked to divert any forest land for a non-forest purpose, it has to, before taking other steps, seek prior approval under the Forest Act and Rules. Every steps towards non-forest activity, in a forest whether in the form of licence, permit, authorization can take place only after the approval under Section 2 ( of Forest Act) is granted,"

Central government had approved in February 2007 the prospecting license for mining the ore over an area of 2,500 hectare in Dantewada area of Chhattisgarh for two years. The indicative reserves for deposit 1 are around 138 million tonnes. NMDC was the first applicant for a prospecting license for deposit 1 and should have been allowed to prospect for iron ore on these deposits but Chhattisgarh government. Deposit 1 was promised to TATA Steel on the grounds that it would add value to the ore within the state.

TATA Steel had signed a MoU with the Chhattisgarh government in 2005 to set up a 5 million tonne integrated steel plant in the Bastar region.

Indian steel imports in 10 months up by 70% YoY - Report

DNA India reported that as per a steel ministry official, India’s steel imports in April 2007 to January 2008 period increased by 70% YoY to 5.7 million tonnes.

The report cited the official as saying that “The domestic production of finished steel, in the same period, has risen only by 5% YoY to 42.45 million tonnes.”

He said that “The growing imports show that there is adequate and growing demand for finished steel in India.”

Man Industries to relocate pipe mill to China - Report

BL reported that Man Industries India Limited is planning to set up a pipe production facility in China under a USD 75 million JV and is in negotiations with 3 Chinese steel manufacturers for the purpose. The report added that Man Industries is closing down its 135,000 tonnes Pithampur facility in Madhya Pradesh and will shift its machinery and equipment to China in 3 months.

The report cited Mr KG Mantri senior VP of Man Industries as saying that the JV with the steel manufacturer will give access to captive raw material and a booming market in China. He added that "The plant would be re commissioned in December 2008 with a total capacity of 300,000 tonnes."

Mr Mantri said that “As the Pithampur plant is land locked and far way from port, the freight charge was making the produced goods non competitive. A new industrial facility will come up on the same location.”

Mr Ratan Tata urges PM to halt iron ore exports

Live Mint reported that Mr Ratan Tata chairman of TATA Group has written a letter to Dr Manmohan Singh, saying the export of India’s mineral resources, including iron ore, without adding value should be avoided in all costs.

Mr Tata said that several international firms, such as POSCO and ArcelorMittal, and domestic firms such as the Jindals, Essar and TATA Steel face project delays as they await the clearance of mining leases. He added that the commission felt ore export would not be in the country’s long term interest and risks depleting the country of globally diminishing mineral resources. Mr Tata’s letter said efforts should be made to attract investments in plants that will add value to minerals.

It may be noted that steel companies and iron ore producers have been locked in a battle over exports. Steel makers want exports banned and the ore used for local production. Ore producers want exports to continue, given rising demand for the commodity in overseas markets.

Indian shipping sector needs USD 20 billion investment – SCI

Exim News Service reported that Shipping Corporation of India has outlined investments of USD 20 billion over next 5 years to 6 years in India’s shipping firms in order to hold on to their 13% market share.

The report quoted Mr S Hajara CMD of SCI, while speaking on the sidelines of World Shipping Forum 2008 in Chennai organized by the Institute of Marine Engineers, as saying that out of the projected USD 20 billion, SCI could manage to invest up to USD 4 billion.

He also disclosed that the shipping lines’ market share had sunk from 43% in the 1980s to 13% today. Indian ships carried 9 million gross tonnage and the figure was expected to go up to 10 million gross tonnage in 2008 and reach 20 million gross tonnage in over 5 to 6 years.

Mr Hajara was of the view that in order to increase the number of ships, the government must extend financial incentives to ship owners and preference to vessels that handle domestic cargo. He added that "Even though foreign direct investment has been permitted in the sector, we are unable to attract any FDI in the port sector."

Gandhidham Chamber calls indefinite strike at Kandla Port

It is reported that Gandhidham Chamber of Commerce & Industry has called for an indefinite strike at Kandla Port beginning March 3rd 2008, charging the union ministry of shipping with apathy in solving long pending problem.

Mr Parasmal Nahta president of Gandhidham Chamber of Commerce and Industry said that the issues that need to be addressed urgently include those related to mortgage fees, renewal of lease agreements, dredging, drop in container traffic, development and construction of new berths, improvement of road and other infrastructure outside port limit, release of long dwell containers, removal of monopoly for CFS operations outside Kandla Port, allotment of land for parking plot, under utilization of berths and congestion at the Port, among others.

Mr Nahta also said that the ministry’s apathy towards Kandla had benefited ports in the southern states. He added that “40% of Kandla’s traffic has already been shifted elsewhere and another 30% could be lost in the next 3 months if urgent steps are not taken. Certain actions of Port Administration on some matters as also inaction on their part has stalled further progress of the Port and even resulted in reversing the progress made in the last few years.”

Mr Nahta said that “Despite meetings and representation, nothing concrete seems to have been done. The under utilization of the berth allotted to the ABG Kandla Container Traffic Limited for container traffic has created a situation, where a berth lies vacant and vessels continue to wait.”

He added that “The renewal of lease agreements pertaining to salt fields and others issues have also been lying pending with the ministry of shipping since the last 4 years and in some cases more than 7 years. Maintenance dredging at the port has been suspended for the last one and a half months, which has deteriorated the draft in the channel. If immediate action is not taken the situation would worsen and adversely affect shipping activity.”

Government to organize meet on investments in steel sector

BL reported that Indian government has called for a meeting of the major steel producers and chief secretaries of Jharkhand, Orissa, Chhattisgarh, Karnataka and West Bengal this week to look into the issues hampering investments in the steel sector.

The report cited an official of steel ministry as saying that "Mr Ram Vilas Paswan union minister of steel, chemicals and fertilizers has convened a meeting of leading steel producers and state chief secretaries of the five states next week to sort out issues pertaining to their investment and expansion plans. The minister would also assess the progress made by the domestic producers in implementing their Greenfield and brown field projects.”

The official said that "The steel ministry is concerned that while the demand for steel is was growing at a double digit rate, the supply side is growing at less than 6%. So, there is a need to bridge the demand supply gap."

Indian steel manufacturers have requested the ministry to help remove the infrastructural bottlenecks that were impeding growth in the sector, especially on issues like railways, road and port connectivity to streamline distribution of their produce.

The companies invited to participate are Rashtriya Ispat Nigam Limited, Steel Authority of India Limited, JSW Steel, Essar, TATA Steel, Ispat Industries Limited, POSCO, ArcelorMittal and Bhushan Steel & Power Limited among others.

As per estimates, union steel ministry is envisaging an investment of around INR 280,000 crore and production of more than 100 million tonnes by the end of 2011-12 fiscal.

Vizag Port surpasses cargo handling record

BL reported that Visakhapatnam port has surpassed the previous best of 56.385 million tonnes of cargo achieved during 2006-07. Till now, it handled 56.412 million tonnes of cargo as compared to 49.631 million tonnes achieved during the corresponding period of 2007.

The incremental traffic of 6.8 million tonnes handled during the current fiscal is the highest ever in the history of the port, surpassing the previous best incremental traffic of 5.65 million tonnes achieved during 2006.

The target for the current financial year has been set at 64.24 million tonnes for the port and the authorities are confident that it could be reached. However, Kandla port is close on the heels of the Visakhapatnam port and several other ports crossed the 50 million tonnes mark last year itself.

Indian Railways plans 4,000 kilometer tracks for 25 tonne axle load

BL reported that Indian Railways is planning to strengthen tracks to be able to run 25 tonne axle load rakes on about 4,000 kilometer of rail tracks in 2009 up from the present level of 1,000 kilometer.

Mr SK Vij member engineering at Railway Board said that “This year we have 1,000 kilometer of tracks where we run 25 tonne axle load wagons. Next year, we shall take it up to 4,000 kilometer.”

Mr Vij said that “As on date, 22.3 tonne axle load trains have been universalized on Railways and 22.9 tonne axle load trains have been permitted on more than 21,000 route kilometer of tracks. With the limited experience of 25 tonne axle load and 22.9 tonne axle load operations, rate of wear and tear has increased, especially on weak areas in tracks. However, such effects were envisaged from experience on other world railways.”

According to the Research Design & Standards Organization data, 25 tonne axle loads can result in about 12% to 32% increase in throughput of a rake depending on the type of wagons.

Elecon Engineering eying port sector

Exim News Service reported that Elecon Engineering is exploring possibilities of entering the ports and special economic zones to impart its skills in engineering facilities in Gujarat and other states.

Mr Prayasvin B Patel CMD of Elecon said that it is looking at acquiring ports in India and abroad to get an entry into foreign markets in a big way. He added that “Elecon would be bidding again for the acquisition of Alcock Ashdown in Gujarat Limited when the Gujarat government resumes the process of divestment.”

It may be noted that last year, the state government had stopped the Alcock Ashdown divestment plans when it was put on the block. Elecon and ABG Shipyard were the final bidders. The state government had reportedly received bids for INR 169 crore, as against the reserve price fixed of nearly INR 350 crore, even as the company had turned around with a INR 1,500 crore order book and booming business.

Jharkhand denies immediate grant to HEC

Ranchi Express reported that Mr Madhu Koda chief minister of Jharkhand has refused to release any grant to the Heavy Engineering Corporation out of the revival package without the approval of the central government. He conveyed this to a delegation of Guild of HEC Officers Association, led by its president Mr Swaraj Mukherji, who met him recently.

Mr Mukherji said that the Guild members requested Mr Koda to implement the package approved by the state government and to release funds to the HEC.

He further said that HEC would achieve its target of INR 360 crore in the current fiscal, but for this HEC requires working capital.

He further added that delay in the release of the financial grant by the state government has badly affected the immediate prospects of the wage revision in the company and has evoked sharp resentments among the employees of the company.

Ex Jharkhand CM demand workers pay parity with executives in CIL

Ranchi Express reported that former chief minister of Jharkhand Mr Babu Lal Marandi last week demanded that the salary of workers in Coal India Limited should be equal to the officers.

Mr Marandi, while addressing a meeting of workers organized by The Jharkhand Colliery Mazdoor Union at Darbhanga House, said that there is great disparity in pay and perks between the two.

He added that some outside leaders were misleading the workers of CIL. He said that "Although they were representing the general workers of the CIL, they were more interested in their own affairs."

TATA Steel wins Amity Corporate Excellence Award

It is reported that TATA Steel has won the Amity Corporate Excellence Award from Amity International Business School. Mr Chanakya Choudhary of TATA Steel received the award on behalf of the company.
The award is given to Corporate, who have excelled in their respective domains and have outshined other companies because of their distinct vision, innovation, competitiveness and sustenance. The award is based on the results of a research conducted by an expert panel consisting of academicians and management students from Amity Business School.

The panel analyzed 200 companies across different sectors. Few of the key perspectives taken into consideration were: years of existence in India, employees’ strengths, gross revenue, market capitalization, net fixed assets, key initiatives taken by the organization and social responsibilities. Based on the results of this research, TATA Steel emerged as a contender for the award.

Eastern Railway freight traffic in 10 months dips by 9.8% YoY

Eastern Railway has posted freight traffic of 35.18 million tonnes in April 2007 to January 2008 period down by 9.8% YoY as compared with 39 million tonnes in April 2006 to January 2007 period.

Eastern Railway handled 23.14 million tonnes of coal down by 17% YoY as against 28.09 million tonnes. During the period, the Asansol Division loaded 22.95 million tonnes down by 16% YoY as against 29.53 million tonnes. The loading at the mines of Eastern Coalfields Limited, Central Coalfields Limited and Bengal Emta was lower than that in the previous year.

Coal loading at Eastern Railway’s Howrah division recorded a significant jump. In April 2007 to January 2007 period, Howrah division loaded 8.51 million tonnes up by 47% YoY as against 5.77 million tonnes.

Despite the drop in the throughput of total freight traffic, Eastern Railway’s earnings from freight traffic increased to INR 1719.39 crore up by 22.43% YoY as against INR 1404.44 crore.

West pressurising India to adopt expensive coal technologies

Mr Kabil Sibal union minister for science and technology recently said that the western world is putting pressure on India to adopt very expensive clean coal technologies, which could be feasible only after 15 to 20 years.

Mr Sibal said for the next 20 years, India would have to depend on coal as the main energy source to sustain a GDP growth rate of 9% to 10%. He added that as far as alternative sources of energy are concerned, India had limited options, 70% of our oil is imported, hydroelectricity is not a feasible option in all parts of the country and wind power could account for just 4% of the energy mix.

He said that “The corporate agenda of the developed world was sought to be set for political and economic considerations and not for climate change. The greatest victory for India in Bali was not to allow the rules of the game structure of the Framework Convention on Climate Change to change.”

ABB in talks for INR 2,000 crore orders from power companies

It is reported that ABB Limited is hoping to get INR 2,000 crore in new orders if it manages to win contracts from developers of ultra mega power projects as also from its strategy of making India a hub to cater to demand from South East Asian countries.

Mr K Rajagopal regional CFO of South Asia Region ABB said that “We are in talks with TATA Power Limited and Reliance Power Limited for supplying electrical balance of plant equipment for the three 4,000 MW each UMPPs to be developed by these utilities. Each of these orders is valued between INR 200 crore and INR 400 crore.”

While Reliance is developing two such projects, at Sasan in Madhya Pradesh and Krishnapattnam in Andhra Pradesh, TATA Power is developing the Mundra project in Gujarat.

Global DRI production in January 2008 up by 7.8% YoY

International Iron and Steel Institute have released the production figures for direct reduced iron for the month of January 2008. The global production of DRI in January 2008 was 4.966 million tonne up by 10.9% YoY and up by 3.8% MoM as compared to December 2007.

India retained the top slot with 1.6 million tonne production accounting for 32.2% of share out of total global DRI production.

In million tonnes
Source – IISI

US and Canadian steel inventories decline in January

According to the latest Metals Activity Report from US based Metals Service Center Institute, despite the weak overall economy, January declines in steel and aluminum shipments from US and Canadian metals service centers were small, suggesting more strength in metals end user markets than had previously been supposed. As per report, steel shipments were down from year earlier levels just 2.7% in the United States and 2.3% in Canada.

Steel shipments from US metals service centers fell to 4.5 million tons in January. Month end inventories totaled nearly 12.2 million tons, down by 25% YoY. At current shipping rates, the number of months of supply on hand was 2.7, well below the December months of supply figure because of the onset of typical spring seasonal supply requirements.

Canadian service centers shipped 329,400 tons of steel during January, down by 2.3% YoY. Steel inventories in Canada ended the month at 1.2 million tons or 3.8% YoY, but slightly larger than in December 2007. Canadian steel inventories equaled a 3.7 month supply at current shipping rates, like the US months of supply figure well below December 2007.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico, and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers

Iron ore price negotiations – Hike could benefit US steelmakers

Reuters reported that US steelmakers could benefit from new iron ore price hikes because unlike many Asian and European manufacturers they are less dependent on global supplies of the raw material.

Ms Michelle Applebaum an industry analyst of Michelle Applebaum Research in Chicago said that "Ironically, the higher the increases in global iron ore costs, the better off domestic North American steelmakers are.” This seemingly anomalous conclusion is due to the fact that very little of the ferrous raw material base of the North American steelmakers is bought from this seaborne trade.”

In addition, Ms Applebaum wrote that domestic costs will rise less than global since most mills in the United States use iron ore pellets, rather than the fines form of iron ore particles. Ms Applebaum said that "Supply and demand for pellets has been far weaker than for fines, in fact, the spread between fines and the more value added pellet has continued to narrow over the past five years.”

Another US analyst Mr Charles Bradford of Bradford Research agreed the impact on US steelmakers would likely be less than on global manufacturers.

BlueScope H1 earnings slip on cost pressures

BlueScope Steel announced its first half results with a reported Net Profit After Tax of AUD 116 million and an underlying operational NPAT of AUD 305 million excluding non recurring items.

The half year performance headlines are:
Revenue – AUD 4,734 million
Reported Net Profit After Tax – AUD 116 million
Underlying Net Profit After Tax excluding non-recurring items – AUD 305 million

Mr Paul O'Malley MD & CEO of BlueScope Steel said "First half underlying operational EBIT was down 21% on the corresponding half last year, primarily due to raw material costs, reduced spread for the company's North Star BlueScope Steel operations in North America and adverse foreign exchange movements.”

He however added that "Directors are expecting an improvement in earnings largely driven by steel price increases based on strong steel demand. Expected price increases in iron ore will generally not apply to us until 1 July, given pricing arrangements under our supply contracts."

Mr Jun Kwang-woo appointed as chairman of POSCO

JoonAng daily reported that Mr Jun Kwang-woo chairman of Deloitte Korea and outside director of POSCO was appointed as the new chairman of the board of POSCO on weekend. POSCO’s new chairman was chosen from the group of 9 outside directors on the board, which has a total of 15 directors.

Mr Jun, 59, in an interview said that “I will play an active role in deciding investments, including mergers and acquisitions, to raise the company value.”

He said that “POSCO must strive to be a role model in corporate governance and ownership structure for other local companies, with a preference for management being separated from ownership spreading. In the future, the actual heads of most local companies and the main stockholders should be separated in order to ensure transparency and efficiency.”

POSCO chairman and other outside directors not only oversee the management but also lead decisions on new business and investment, unlike outside directors in family owned conglomerates, who only consent to or oppose top managers decisions.

Nippon Steel to boost tinplate demand and recycling

According to Japan Metal Bulletin, Japan’s largest tinplate producer, Nippon Steel is working to win back market share from aluminum in the beverage can market.

Nippon Steel supplies approximately 400,000 tonne of tin mill products every year out of total domestic market size of 1.1 million tonnes. Sales are expected to be flat at 1.1 million tonnes in both the current financial year 2008 and next financial year.

As per report the Japanese tinplate market has declined from a peak of 2 million tonne per year in 1991 as a result of declining demand for coffee cans and gift items.

Nippon Steel now aims to regain a share for steel cans in the beverage can market, which is currently dominated by aluminum. Through the Japan Steel Can Recycling Association it is also promoting collection schemes through schools and residents associations.

EU mills pushing for plate prices amid weak demand

Platts reported that ArcelorMittal, Duferco and Reiner Brach are set to increase prices of hot rolled reversing mill steel plate, despite indications in the market of weakening demand. The latest wave of price increases was initiated by ArcelorMittal announcement of a EUR 40 per tonne hike, additional to the EUR 50 per tonne increase implemented just two weeks ago.

A spokesman at Belgium based Duferco Clabecq confirmed the mill would initially increase its own base prices by a similar amount to a new level of EUR 790 per tonne and would seek further hikes at a later date. He said that "We are confident a EUR 40 per tonne increase will be easily accepted by our customers, as they understand our reasons for doing so.”

Meanwhile Reiner Brach, a German manufacturer of heavy plate of 40 mm to 200 mm thickness will increase its prices for new orders within the next two days, with earliest deliveries available in May.

Elsewhere, a mill executive at Italian plate maker Trametal told Platts that he is selling at EUR 750 per tonne for April deliveries, adding that the new prices were generally better accepted by buyers of higher grades. Production at the plant will stop in March while the rolling mill undergoes maintenance. He added that one more interruption will take place in July for the installation of a new reheating furnace at the San Giorgio di Nogaro mill.

Several market sources said that Eastern European mills are likely to follow the trend and boost their prices too.

Iron ore price negotiations – Chinese reject Rio push for higher prices

Bloomberg reported that Chinese steelmakers, the largest buyers of iron ore, will reject Rio Tinto Group's demand for a minimum 71% price increase in an attempt to slow accelerating costs for raw materials. People familiar with the negotiations said that the mills want to pay no more than 65% extra for Rio's mines in Australia.

As per reports, world’s second biggest iron ore exporter Rio wants a higher price because of its premium ore and proximity to China, which reduces shipping costs. Rio will meet Chinese steelmakers for further talks this week.

However, Mr Vicky Binns analyst of Merrill Lynch & Co Inc said that Australian producers are in a strong position' to match the 71% gain in price for premium Carajas ore won by Brazil's Cia Vale do Rio Doce, the biggest exporter of the raw material, because it is of similar quality,

Baffinland Nunavut iron ore project to cost USD 4.1 billion

Toronto based Baffinland Iron Mines Corp announced that it will cost USD 4.1 billion to develop the 100% owned Mary River iron ore mine in Nunavut, a project designed to ship iron ore to European steel mills.

Baffinland in a statement said that a feasibility study on the project says the proposed open pit mine would have a 20 year mine life based on proven and probable reserves of about 365 million tonnes of iron ore and the capital cost is forecast to be USD 4.1 billion, including a contingency of USD 438 million

Baffinland said that based on the shipment of 18 million tonnes of high grade iron ore per year primarily to the European market, the proved reserves of 160 million tonnes and probable reserves of 205 million tonnes can sustain a mine life of more than 20 years.

Mr Gordon McCreary president & CEO of Baffinland “The completion of our feasibility study is a major milestone toward the development of our world class, direct-shipping iron ore deposits and results in significant reduction in project risk. In the second quarter of 2008, further risk reduction is expected with the completion of a scoping study demonstrating the scalability of the project by expanding output to 30 million tonnes per year based on the enormous resources delineated in Deposits No 1, 2 and 3.

Baffinland is a junior miner focused on the Mary River iron ore deposits on Baffin Island.

Brazilian iron ore miners to invest USD 14 billion by 2011

According to Brazilian Institute for Mining, Brazilian iron ore producers are set to invest USD 14.130 by 2011 although demand for the product will remain high.

According to Brazilian Institute for Mining, Brazilian investments in mining ventures between 2007 and 2011 are forecast to reach USD 32 billion. Some USD 14.130 billion of this will be targeted at iron ore projects. In addition to direct investments related to mining the figures include expenditure on infrastructures for exports like the Carajas railroad being financed by Brazil’s CVRD. Other investments in the Brazilian iron ore are expected to be made by firms including EBX, MHAX and London Mining.

The report quoted Mr Paulo Camilo chairman of the Brazilian Institute for Mining as saying that the impact of investments on production would not be sufficient to ease the trend for rising iron ore costs on international markets as even with investment in mining high demand will remain.

Mr Camilo said that these fresh resources will have a strong impact on increased mineral production in Brazil, but China’s growth will continue to absorb the raw material, as currently is the case. He added that “Today there is no iron ore stock availability in any part of the world, not just due to Chinese demand but also because of firms’ inabilities to invest more in production” to respond to this demand.”

According to figures from the National Department of Mineral Production, if the predicted investments for between 2007 and 2011 are correct, they will represent a 314% increase over those made between 2002 and 2006, worth USD 3.410 billion.

Nissan sees tough times for automakers

According to Mr Carlos Ghosn CEO of Nissan Motor, a recession in the US auto market and rising raw material prices are pressuring global automakers.

But Mr Ghosn told reporters that these represent risk for the industry but expressed optimism that the situation would eventually improve He said that "We are very lucid on the situation of the industry that there is a recession in the United States, at least in the car market adding automakers also face rising costs for iron ore, precious metals, aluminum and other materials. I do not think that we are seeing trends today which will go forever. The American auto market will not stay in recession for a long time. One day it will grow again."

Mr Ghosn also said that raw materials prices, which are rising for a fourth year, will have to come down. There will be a moment where, for lots of reasons, this will stop.”

He added that US car and light truck sales totaled 16.1 million vehicles in 2007, the worst year in a decade, with forecasts for a decrease this year.

Earlier, Mr Ghosn told students at Seoul's Korea University that global automakers must increasingly focus on emerging markets as growth in countries such as Russia, China, India and Brazil will be the key factor in the industry in coming years. He said that " Developed markets such as the United States and Japan have been stagnant for the past four years and prospects for this year were not bright. The Russian market, meanwhile, expanded 25% last year, he said, with China just below that, and India and Brazil also growing strongly. No car manufacturer can ignore these markets.”

Eramet eying greater manganese output

It is reported that Eramet is planning to increase production of manganese ore from its mine in Gabon to fuel expected growth in global steel output.

Mr Patrick Buffet CEO of Eramet while speaking to a gathering of investors and analysts said that Eramet was exploring the possibility of producing more than 4 million tonnes of the metal going forward given the outlook for tight global supplies. He added that "We are studying the possibility of going above the 3.5 million tonnes we are even thinking of exceeding four million tonnes.”

It had previously stated that it would produce 3.5 million tonnes in 2008.

Last year, Eramet produced 3.3 million tonnes of manganese ore at its Gabon site.

Credit Suisse in a research note said that manganese ore had been selling for as much as USD 12 dry metric tonnes per unit on the spot market, nearly 180% above the average actual 2007 price of USD 3.54 dry metric tonnes per unit.

ARM charts aggressive iron ore growth plans

miningmx.com reported that African Rainbow Minerals expects to increase the price of its iron ore by between 65% and 71% for the coming year as it looks to secure transport and port space to double its iron ore exports in a ZAR 6 billion project.

Mr Jan Steenkamp head of African Rainbow Minerals Ferrous said that the price increase forecasts are based on what Brazil’s Vale, the world’s leading iron ore provider, has secured with three of the world’s biggest steel makers in recent days. BHP Billiton is expected to set its price increases for the year starting April 1st 2008 in coming weeks.

African Rainbow Minerals, which holds 50% of Assmang with partner Assore holding the rest, is to embark on a 12 month in fill drilling program at its Khumani iron ore mine in the Northern Cape to ensure the resources are in place to support a doubling of production.

Mr Steenkamp told miningmx that it will reduce its cutoff grade to 60% iron content from 62% to give those resources a boost. The drilling forms part of a feasibility study that will be completed by June 2008.

Assmang has already ordered a 10 million tonnes per annum crusher as the largest capital item and one of the longest lead items. It is expected to arrive in about 3.5 years, giving the company time to design its next 10 million tonne mine.

Japanese steelmakers on buying spree for FeSi and SiMn

Platts reported that traders close to Japanese integrated steelmakers started buying ferrosilicon and silicomanganese again after sellers in Asia returned to business from Chinese New Year holidays.

One Tokyo based trader said that at least one integrated steelmaker is said to be falling behind their ferroalloy purchase schedule, while another trader said steelmakers are purchasing above their requirement as they expect higher prices in the future.

According to traders, ferrosilicon deals were done at above USD 1,250 per tonne CIF Japan. March shipments from China for a total volume of over 2,000 tonne. Platts assessed the market at USD 1,250 to USD 1,280 per tonne CIF Japan up from USD 1,170 to USD 1,200 per tonne CIF Japan last week. One trader cautioned that the Japanese market may be overheated as in South Korea deals were still done at around USD 1,200 per tonne on a CIF basis.

One silicomanganese deal was reported at USD 2,020 per tonne CIF Japan for a lot of 1,000 tonne, shipment believed to be in February to March 2008. Traders said that some offers from Chinese producers were as high as USD 2,300 to USD 2,500 per tonne CIF Japan for March shipment. Platts assessed the market at USD 2,000 to USD 2,020 per tonne CIF Japan up from USD 1,950 to USD 2,000 per tonne CIF Japan last week.

Sims Group H1 net profit down by 9.5% YoY

Global scrap recycling major Sims Group Ltd announced that its H1 profit fell by 9.5% due to unfavorable currency movements that ate into its US dollar denominated metals sales, but forecast improved earnings in the third quarter. Sims said that it posted a net profit of AUD 102.2 million in H1 of 2007 as compared to AUD 112.9 in H1 of 2006.

Highlights for H1 result
1. Sales revenue of AUD 2.73 billion up 4% on HY07
2. EBITDA of AUD 211.3 million down 3.6%on HY07
3. Net profit after tax of AUD 102.2 million down by 9.5% YoY on HY07, in line with previous guidance after taking into account the recently-announced change in accounting treatment
4. Metal Management stockholder meeting to approve merger to be held on March 14th 2008, with closing scheduled to be effected by March 17th 2008
5. Ferrous margins adversely affected by high ocean freight rates, a weak US dollar and continued buy price competition. Non ferrous margins impacted by lower LME terminal prices
6. Sims Recycling Solutions continuing to grow impressively and a strong contribution from ARA, the Company’s Australian lead alloying joint venture

Mr Jeremy Sutcliffe CEO of Sims said that "The result was solid given the impact of ocean freight rates, currency movements and the decline in London Metal Exchange prices over the period.” He added that a strong rise in scrap ferrous metals prices that began in mid-December and higher LME prices would boost earnings in the coming quarters.

Sims Group’s is headquartered in Australia and earns over 70% of its revenue from international operations in the UK Continental Europe, North America, New Zealand and Asia. Sims has over 3,500 employees with annual turnover of AUD 5 billion and is listed on the Australian Stock Exchange.

LKAB to go ahead with new Malmberget main level

It is reported that the board of LKAB has voted to go ahead with construction of a new main level for the iron ore mine in Malmberget. As per report the total investment is estimated at several billion kronor, which includes projects for roads, for which decisions have already been taken.

The Malmberget mine consists of about 20 large and small, widely distributed ore bodies of which about ten are currently mined. The ore bodies are at different depths and the lowering of the main level therefore takes place successively in different parts of the mine. Currently, mining is taking place on three main levels; at 600, 815 and 1,000 meters below the original surface level, which were opened for operation in 1969, 1989 and 2000, respectively.

Today’s investment decision will entail the following:

1. The newest main level at 1,000 meters will be extended to the Fabian orebody in the so called Östra Fältet, where most of the orebodies are situated. Fabian is now being mined via level 815, contains magnetite and continues at depth.

2. A new main level will be built at 1,250 meters to access the other orebodies in Östra Fältet. All of these contain magnetite.

3. The Board is expected to decide later on a possible new main level for the so called Västra Fältet and increased hoisting capacity. In Västra Fältet, mostly hematite and small quantities of magnetite are mined. This operation is now conducted via the 600 meters main level.

Japanese coal imports in January surge

Bloomberg reported that world's fourth largest energy consumer Japan has increased coal imports at the fastest pace in four months in January to meet higher demand from power plants after an earthquake shut seven nuclear reactors last year. According to a trade report released by the Japan’s ministry of finance, coal imports rose for a seventh month by 14.3% to 17.7 million tonnes in January 2008.

Demand for coal, crude oil and natural gas has risen as Tokyo Electric Power Co and other regional utilities increased thermal power output to compensate for lower nuclear electricity generation. Tokyo Electric has kept its Kashiwazaki-Kariwa nuclear plant, the world's largest, shut for safety checks since an earthquake damaged the facility in July.

Mr Atsuo Sagawa a senior coal analyst at the Institute of Energy Economics in Japan said that ''Utilities apparently boosted coal procurement in January to meet increased electricity demand for home and office heating. Utilities are operating their coal fired power plants at full capacity.''

Perilya and CBH Resources in merger talks

ABC News reported that all mining in Broken Hill in far western New South Wales could come under one company for the first time in 135 years. As per report Broken Hill's major mining companies, Perilya and CBH Resources have been involved in merger discussions.

Mr Bob Besley MD of CBH Resources said that the need for more resources has been a driving force behind merger talks with Perilya. He added that all assets and mining operations of the two companies will be combined.

Mr Besley said that "Either way it goes, if it is successful or not successful, I think we are seeing increasing activity at Broken Hill and whichever way it goes I think it's a win win for Broken Hill.”

He added that “It is a big task, but at this stage that's the direction the two companies are looking at, because it probably generates the best end result in terms of value for shareholders."

Mexican utility to buy more coal on international market

Reuters reported that Mexico plans to buy more coal on international markets and is keen to buy coal pits abroad to meet its growing power needs.

Mr Alfredo Elias Ayub director of CFE said that Ailia will buy the coal from Colombia. Mr Ayub at a business event in the northern Mexican city of Monterrey told reporters that "Mexico does not have any coal and for that reason we will go to the international market or buy overseas coal mines or seek long term contracts to guarantee supply. We need to buy 8 million tonnes of coal a year."

Mr Ayub last week in Houston told Reuters that CFE, which supplies power to all of Mexico bar the capital, was studying buying coal mines in Australia or Colombia.

Mexican state utility CFE surprised coal traders last week by buying 3.77 million tonnes of coal from a little known company called Ailia, undercutting major international suppliers.

Japanese steel makers buying coking coal from US

Purchasing.com reported that Japanese steelmakers are buying coking coal from the US because floods in Australia have halted mining and cut supplies and spot prices for coal used in steelmaking have risen in Japan to as much as USD 270 per ton almost triple the USD 98 a ton contract price.

Floods this year in Australia's Bowen Basin forced suppliers including BHP Billiton, the world's largest mining company, to say they will miss deliveries of coal. So, even though it is boosting raw materials costs, Nippon Steel Sumitomo Metal Industries, Kobe Steel and Nisshin Steel are importing more expensive coking coal from the US.

Mr Vicky Binns analysts of Australian based Merrill Lynch & Co said that once the supply returns to normal, Australian coal contract prices will probably jump to more than USD 220 a ton, excluding freight and insurance, in the fiscal year starting April 1st 2008.

Colombian coal exports in January down by 0.5 million tonnes

According to trade data quoted by the McCloskey Group, Colombian coal exports in January were 5 million tonnes this marks a decline of 0.5 million tonnes from December 2007.

The Group given the current tightness of steam coal supply producers in Colombia is under increased pressure to boost supplies to the export market.

US lowers forecast for economic growth in 2008

It is reported that Federal Reserve expects the US economy to grow between 1.3% and 2% in 2008, lower than a pace between 1.8% and 2.5% it projected in October 2007. It said that "With no signs of stabilization in the housing sector and with financial conditions not yet stabilized, the committee agreed that downside risks to growth would remain even after the interest rate cuts in January.”

The Federal Reserve also expects higher unemployment for this year. It said “With the economy slowing down further, the unemployment rate is expected to rise to 5.2% to 5.3% in 2008 higher than the Fed's previous forecast rate of 4.9%.”

As energy prices are soaring, the Federal Reserve also expects inflation to be between 2.1% and 2.4% this year. It had forecast that inflation would be at around 1.8% to 2.1% for 2008 but now said that "These downward revisions to the 2008 outlook stemmed from a number of factors, including a further intensification of the housing market correction, tighter credit conditions amid increased concerns about credit quality and ongoing turmoil in financial markets, and higher oil prices.”

It said that beyond 2008, however, a number of factors are projected to buoy economic growth, including a gradual turnaround in housing markets, lower interest rates associated with the substantial easing of monetary policy to date and appropriate adjustments to policy going forward and an anticipated reduction in financial market strains.

SACMH opens Umlabu Colliery in Mpumalanga

Mining Weekly reported that South Africa Coal Mining Holdings last week opened the new ZAR 140 million Umlabu Colliery in Mpumalanga which will supply 1.2 million tonnes of coal to Eskom as part of a newly clinched three year contract.

Mr Karl Gribnitz CEO of South Africa Coal Mining Holdings told Mining Weekly that South Africa Coal Mining Holdings will produce 1.7 million tonnes of coal a year with 1.3 million tonnes at a 60% yield, being sold as export coal. He said that the minimum price South Africa Coal Mining Holdings will receive from power utility Eskom will be a ZAR 110.50 per tonne free on mine and the average export price ZAR 450 per tonne.

Mr Melanie Steyn group executive of South Africa Coal Mining Holdings said that South Africa Coal Mining Holdings through its controlling shareholder, the Royal Bafokeng has committed itself to working closely with Eskom during this period of power crisis. However, Mr Steyn said that there are parts of the Eskom contract that the company is not at liberty to disclose, specifically the actual price SACMH will achieve when it delivers the maximum tonnage of coal to Eskom.

Bonatrans Group sales up 17% in 2007

CTK reported that Czech producer of railway wheels and wheel sets, Czech BONATRANS Group of Karel Komarek's financial and investment group KKCG, generated sales worth CZK 4.66 billion in 2007 up from CZK 4 billion in 2006.

Mr Vaclav Paprok CFO told CTK that last year's investments in modernization of equipment totaled CZK 260 million.

Czech weekly Tyden wrote in January that Moravia Steel- Trinecke zelezarny owners are eyeing Bonatrans and ZDB GROUP, both units of KKCG and both operating in Bohumin, in Moravskoslezsky region. The price has been estimated at USD 500 million. Trinecke zelezarny is a key supplier of ZDB Group.

Bonatrans exports most of its output to some 60 countries.

Sharaf Group, Finetec and Marvast to set up CNG cylinder plant at RAK

Gulf News reported that Sharaf Group plans to set up a state of the art cylinder manufacturing plant for compressed natural gas in the Ras Al Khaimah Free Zone. The project is a joint venture with Finetec Corporation and Marvast General Trading.

The plant will be located on approximately 410,000 square feet and the installed capacity of the plant will be 120,000 cylinders annually, which could be doubled in the future. The estimated cost of the project is AED 110 million and production is expected to commence from the first quarter of 2009.

The plant will be able to manufacture both domestic and commercial and industrial cylinders. It will catering to the needs of Middle Eastern countries as well as Asian countries like India, Bangladesh, and Pakistan and will supply world class quality cylinders suitable for commercial fleets, passenger cars and transport vehicles.

6 bid for Dolphin Abu Dhabi to Fujairah pipeline contract

MEED reported that 6 out of 9 pre qualified contractors have submitted technical bids on 14 February 14th 2008 for the contract to design and build Dolphin Energy gas pipeline from Abu Dhabi to Fujairah. Commercial bids will be invited once a technical evaluation is completed, with a contract award due in the summer. Work will start soon after.

The list of bidders is as under
1. Al-Jaber Energy Services
2. Athens based Consolidated Contractors International Company
3. Dubai based Dodsal
4. Egyptian Petrojet
5. Italian Snamprogetti
6. Russian Stroytransgaz.

The 3 pre qualified firms which did not submit the bid are Paris based Technip, Italian Techint and China Petroleum Engineering Construction Company.

The estimated USD 350 million contract covers the engineering and installation of a 240 kilometer long, 48 inch diameter gas pipeline between Taweelah in Abu Dhabi and Qidfa in Fujairah. The pipe itself has been procured by the client from Germany's Salzgitter Mannesmann International in a deal worth more than USD 200 million.

The gas, which originates in Qatar, will serve the Fujairah II independent water and power project at Qidfa. Abu Dhabi-based Dolphin Energy is providing 2 billion cubic feet a day of gas from Qatar.

UAE industrial sector contributed 20% of GDP in 2007 – Report

Mr Mohammed Khalfan Bin Kharbash UAE minister of state for finance & industry recently said that UAE’s industrial sector is the third largest economic producer, contributing almost 20% to GDP in 2007. The sector was worth AED 73 billion by the end of 2007, representing a 66% increase since 2003.

Mr Kharbash said that manufacturing units in UAE stood at 3,852 at the end of 2007, marking a 37.8% increase since 2003, when the government began prioritizing industry in its long term economic diversification plans. The industrial sector was now a key performer in the UAE, with no single sector dominating the landscape.

He added that "We will continue to foster progress in the industrial sector for the long term benefit not only of the economy, but also for sociological reasons as this sector can deliver fresh job and career opportunities for nationals. The government is now working to ensure global best practices are prevalent throughout the industrial and financial sectors."

Pakistan urges 30% cut in energy consumption

Dawn recently reported that, in an effort to tide over Pakistan’s worst ever energy shortage, the federal government has asked the provinces and trade and industrial bodies to strictly observe a set of energy conservation measures to reduce consumption by about 30% with immediate effect.

Pakistan Planning Commission, in a letter to the chief secretaries of the provinces of Azad Kashmir and Northern Areas and about 50 member organizations of the Federation of Pakistan Chambers of Commerce and Industry, said that the country is facing an acute and growing energy shortage coupled with rapidly rising consumption, depleting domestic oil and gas reserves and escalating international fuel prices. As an immediate measure, public and private employees have been asked to switch off unnecessary lights to save energy by 15%. They will be required to replace fluorescent tube lights with energy saving bulbs which will yield a saving of 20%.

Under the directive, office temperatures would be raised in winter by not more than 22 degrees centigrade and reduced in summer by not less than 25 degrees centigrade. Coupled with maintenance of heating and cooling systems, the measure would provide a saving of 15%. Reducing outdoor building lighting and illumination and switching off billboards after 7 PM local time will reduce consumption by 25%.

The provincial and local governments have also been directed to switch off lights in parks and grounds at 7PM local time. All consumers have been advised to wrap their water heaters with blankets to save heat and also to reduce their temperature to save 15%.

Saudi Arabia to set up a new container terminal at Dammam

Saudi Arabia has announced plans for a new container terminal at King Abdul Aziz Port at Dammam on a build operate transfer.

Mr Naeem ibn Ibrahim Al Naeem port director general of Saudi Arabia said that “Studies have been completed on the new container terminal and tenders will be invited within a few months to implement the project, which is open to Saudi and foreign companies.”

The new facilities will raise the port's handling capacity from 1.5 million TEUs to 3.5 million TEUs and will be complemented by a railway expansion project linking the Kingdom's east and west regions. Development costs for the new terminal have been estimated at some USD 267 million and a contract has been signed for a USD 9 million upgrade of current facilities.

According to Mr Al Naeem, the upgrading works will cover 40% of the port's 39 existing wharves while, the remaining wharves are rented to the private sector.

Nagarjuna plans to enter real estate development in Oman

It is reported that India's Nagarjuna Construction Company Limited is planning to enter real estate development in Oman.

A senior Nagarjuna Construction official said that “We have plans to develop a multi storied building in Sohar in partnership with an Omani company. The apartment, which will be constructed at a cost of OMR 3 million, will have several modern amenities, including health club and swimming pool.” He added that the twin tower apartment, which will be ready by 2010, will have 448 flats each.

In the Oman, Nagarjuna Construction is building the dualisation and realignment of Al Amerat Quriyat Road, Wadi Adai Al Amerat road project, a water network scheme in Sohar and initial civil work for Sama Dubai's Yitti residential cum resort project. With a cost of OMR 56.5 million, the 7.5 kilometer long Wadi Adai Al Amerat road will be completed within 18 months. The project involves construction of 6 bridges of varying lengths, 9 box culverts and 1 single lane bridge. The total contract value of all Omani projects of Nagarjuna is around OMR 180 million.

Aramco chief calls for energy vision clarity

Mr Abdallah S Jum‘ah president & CEO of Saudi Aramco, during his keynote address at the Cambridge Energy Research Associates Annual Conference, said that “The world simply cannot afford to leave massive quantities of oil, gas and coal in the ground and move precipitously to unproven alternatives while still hoping to satisfy future growth in global energy demand.”

Mr Jum‘ah said that “We also need the whole world to arrive at greater clarity as to what it wants and realistically can achieve in terms of a future energy mix, to achieve a greater consensus among producers and consumers about the roles and responsibilities of each in terms of realizing that mix and finally, to enhance the security of both supply and of demand over the long term.”

Mr Jum‘ah pointed out that “If conventional and non conventional oil resources fall victim to well intentioned but ultimately flawed or confusing energy policies, then the necessary investment of time, toil and treasure may not materialize and a significant proportion of these precious resources might not be recovered.”

Kuwait to invest USD 51 billion in refinery sector

Kuwait Petroleum Corporation has announced that it intends to invest USD 51 billion over the next 5 years to upgrade production and refinery capacity. Mr Saad Al Shuwaib CEO of Kuwait Petroleum said that "The spending aims to increase Kuwait's output capacity from 2.7 million barrels per day at present to 4 million barrels per day by 2020."

The announcement was teed up by the revelation the previous day that Kuwait National Petroleum Company, the wholly owned refining and liquefaction subsidiary of KPC, expects global demand for oil to reach 115 million barrels per day by 2030, up from the present high of 85 million barrels per day. KNPC further added that it expected 68% of demand to emanate from Asia by then, indicating that supply growth of 70% for Asia and the Middle East would need to be met.

Kuwait currently supplies 3.4% of global crude demand. Its refinery capacity, however, is only 1% of world total. Regional refining margins spiked during 2006 before dipping, yet they remained high by historical standards at around USD 3 per barrel. As such, it makes sense for Kuwait to increase its refining capacity, increasing the profit it makes on every barrel. Part of the planned USD 51 billion investment is indeed earmarked for downstream production, including the implementation of the clean fuel project and the building of a grass-root refinery, and international downstream diversification particularly within the Asian market.

On the domestic front, Mr Al Shuwaib suggested Kuwait will diversify its energy sources to supply its power plants in the coming decade. While ruling out coal and wind power as alternatives, he gave qualified approval to solar and nuclear energy as potentials. The announcement follows on from French President Nicolas Sarkozy's recent visit to the Gulf, where an agreement was signed with the UAE concerning civil nuclear development.

UAE and Turkey to boost bilateral trade to USD 10 billion

Khaleej Times reported that Mr Abdullah Gul Turkish President has received Ms Shaikha Lubna Al Qasimi UAE minister of economy, who headed the UAE delegation to the just concluded UAE Turkey joint committee meeting in Turkey. They discussed relations between the two countries, particularly economic ties including the results achieved at the end of the joint committee meeting.

Ms Qasimi reiterated her country's commitment to further boost the existing ties with the UAE. He said the private sectors of both countries should seize opportunities provided by economic reforms in the two countries to boost bilateral ties and joint investment.

Ms Qasimi said that the UAE is highly committed to boosting bilateral ties and economic cooperation with Turkey, adding that the two countries should surmount all challenges to boost bilateral cooperation in their mutual interest. She praised the positive results achieved during the joint committee meeting. She said the results will further boost economic prosperity in the two countries and will strengthen bilateral relations.

She briefed the Turkish president about the latest economic developments in the UAE and the government's plans for economic growth, developing the non oil sector and boosting development in various sectors. She said the UAE's economy had witnessed in 2007 a gross domestic product growth rate of 16.5% to bring the GDP to AED 698 billion, with the non oil sector accounting for 65% of the total.

She added that the UAE, which has become a hub for foreign investment, having attracted in 2006 a total amount of USD 19 billion in foreign direct investment, a figure which represents an increase of 10.8% compared to the FDI recorded in 2005.

Gulf Investment Corporation posts USD 253 million profits

The board of Gulf Investment Corporation has reviewed and approved the audited financial statements for the year 2007 with net profit USD 253 million after provisions, representing credit and returns on equity of 15%.

Dr Yousef Hamad Al Ebraheem chairman of the GIC Board said that "GIC achieved good results particularly in such a difficult year where the international capital markets in general and liquidity markets in particular faced one of the hardest shakes. GIC once again proved its ability to achieve good results reflecting sound strategic planning in its diversified assets and revenue sources and managing the risks in scientific methods.”

Mr Ebraheem added that “GIC successfully won the bid to construct and develop Shuqaiq and Marafiq, two major Power & Utilities projects in Saudi Arabia, taking into consideration that Marafiq project won the international awards for Best Energy project in the Middle East, Europe and Africa. In 2007 El Ezzel Power Project and the Stainless steel factory in Bahrain became operational and in addition, the iron pellets factory doubled its capacity".

Dr Al Ebraheem also mentioned GIC's intention to open branches in some of the GCC countries in 2008 to execute its expansion strategy in the coming five years.

Gulf Investment Corporation is a leading regional financial institution that was established under the auspices of the Gulf Cooperation Council and is equally owned by the six member states of the Council.

Akkadian to undertake 300 MW power project in Pakistan

Unique Pakistan reported that Akkadian Energy is undertaking a 300 MW power generation project in the Sundar Industrial Estate, which would start functioning in 2009. A delegation of Akkadian Energy Limited called on Mr Mohammedmian Soomro caretaker Prime Minister, which was led by Mr Rozz Connelly MD of Akkadian.

Mr Soomro said that the interim government is working with a focused approach to ensure continuity and consistency of economic policies and is taking numerous steps to meet the rising demand of energy in the country by undertaking new projects as well as through conservation.

Pakistan has emerged as a preferred destination for investment and has strong fundamentals as well as substantive structural reforms, which are helping the country attract more investment in all sectors of national economy.

Akkadian Energy Limited is an international finance and project development firm that specializes in emerging markets around the world particularly focusing on the energy infrastructure and services sectors.

Alumil undertakes reality project in Abu Dhabi

Greek aluminum processing group Alumil Mylonas has announced undertaking a projects in the wider Gulf Area for a complex is created in the Emirate of Abu Dhabi, totaling a budget USD 169.4 million.

The project consists of four 10 store buildings, which include a 5 star Rotana Hotel 280 rooms capacity two buildings for 342 apartments, a large building for 46 offices, while an extensive mall will be based on the lower flours. Al Mada Tourism Investment Co LLC is the owner of the project.

Alumil is ranked among the largest aluminum extrusion and profiles production private European group establishing production sites, large sales networks and warehouses for products targeting architectural & industrial use, shipbuilding, transportation, etc. With 26 subsidiaries, 20 of which are spread throughout Europe, Africa and the Middle East, Alumil offers production sites in four Hellenic industrial areas, Romania, Bulgaria, Serbia, Bosnia and Albania.

Growing Chinese demand to underpin iron ore market – KIO

It is reported that JSE listed miner Kumba Iron Ore, which became a pure play producer when it separated from diversified miner Exxaro Resources in 2006, said last week that Chinese steel production could nearly double by 2012 to 750 million tonnes per year requiring more than 730 million tonnes a year of iron ore imports.

Kumba Iron Ore said that the seaborne market for the steelmaking ingredient had grown at a compound rate of 8.1% yearly from 454 million tonnes per year in 2000 to 782 million tonnes per year in 2007.

Kumba Iron Ore said "China is expected to continue being the main driver of global steel production growth, with current forecasts suggesting that China will increase production from 420 million tonnes per year in 2006 to 750 million tonnes per year by 2012."

Usipar to triple production of pig iron with Minmetals

It is reported that Brazilian steel maker Usina Siderúyrgica do Pará is studying the possibility, in partnerships with China’s Minmetals, of increasing its pig iron production from 500,000 to 1.5 million tonnes. For the third quarter of 2009, Usipar expects a new furnace to go into production, which is to be built in partnership with Minmetals and pig iron production will increase to 1 million tons.

As per report the Chinese company and Companhia Siderúrgica do Pará are currently working on a new study, which is to be concluded by the end of next month, and aims to increase production to 1.5 million tonnes within a period as yet to be decided.

As well as projects to increase pig iron production, the two companies are working on sinter plant of 800,000 tonnes capacity. Chinese experts are currently at the Usipar unit, in Pará state in northern Brazil, to supervise the transfer of technology and installation of the equipment.

Mr Luis Guilherme Monteiro financial and new business director of Cospiar said that the study also outlined the start of steel production. He said that "The partnership is in the process of being studied, equipment specification and surveying investment.” He added that “As it is a bigger investment, we need a more detailed study.”

Cosipar's partnership with Minmetals began some five years ago when the Chinese company began supplying production equipment, in the north of Brazil, for pig iron, the raw materials used, amongst other things, to make steel.

Coke shortage threatens Chinese steel makers

It is reported that Chinese steel makers are struggling with a shortage of coking coal after a power crisis in the country, which prompted Chinese government to urge its coalmines to focus their efforts on raising thermal coal supplies. Industry officials and traders said that many steel mills have already been forced to cut production plans.

A trader at an international company said "The supply of coking coal is a problem. It is very tight and more acute than iron ore. There would not be any increase in crude steel output in January or February because of that and power shortages."

Mines in coking coal producing provinces such as Shanxi and Anhui shifted to thermal coal, tightening supply of coking coal. Coke is now quoted at about CNY 2100 a tonne compared with about CNY 1000 a year ago.

In an attempt to solve one of the country's worst power crises in the run up to lunar New Year holidays, Chinese government last month urged all parties involved, including railways, to give priority to supplying thermal coal to power generators in southern and central China.

Chinese exports of coke in 2007

Chinese export of coke in 2007 amounted to 15.300 million tonnes destined to a total of 42 countries.

Japan accounted for 22% of China’s total exports and top 10 destinations accounted for 82.5% of China’s total coke exports.

In million tonnes

Baotou Steel raises flat product products

It is reported that Inner Mongolia's Baotou Steel has released its latest EXW prices for HR and CR products yielded in March 2008 on the basis of prices published on January 17th 2008.

HR price up by CNY 400 per tonne
Latest price stands at CNY 5220 per tonne for Q235 3.0mm HRC and CNY 5050 per tonne for Q235 5.5mm HRC.

CR price up by CNY 400 per tonne
Full hard price up by CNY 400 per tonne
SPCC 1.0mm CRC is offered at CNY 6000 per tonne
SPCC 1.0mm full hard price at CNY 5200 per tonne

HDG price up by CNY 500 per tonne
SGCC 1.0mm galvanized sheet price at CNY 6000 per tonne.

Prices listed above are inclusive of 17% VAT effective as of February 21st 2008.

China launches 2nd West to East gas pipeline project

Xinhua reported that China began work on its second West to East natural gas transmission pipeline. It will mainly carry natural gas from Turkmenistan and China's Xinjiang Uygur Autonomous Region to the Yangtze and Pearl River deltas.

As per report construction of the 9,102 kilometer pipeline, which consists of a main line and eight sub lines will cost CNY 142.2 billion. With a designed gas transmission capacity of 30 billion cubic meters annually, the pipeline would traverse 12 provinces and autonomous regions before reaching Shanghai and the southern Guangdong Province. The main line extending 4,843 kilometer would start from Khorgos in northwestern Xinjiang to Guangzhou, capital of Guangdong Province.

Mr Jiang Jiemin general manager of China National Petroleum Corporation leader of the pipeline construction said that the western segment of the main line would go into operation by2009 and the eastern segment would start by June 2011.

By the time the line goes into full operation, it will pipe gas mainly from two contracted fields in Turkmenistan, to serve civilians, public facilities and producers who combine heat and power generation. Two domestic gas regions Tarim and Changqing would be the emergency sources.

China predicts slowdown in trade surplus growth in 2008

It is reported that growth in China’s trade surplus is likely to slow down this year as a result of policy changes and slowing US demand.

Mr Wang Xiaoguang the top economic planner of the National Development and Reform Commission said that the 2008 trade surplus will probably hit USD 320 billion up by 22%YoY. This compares with growth last year of 47.7% when the trade surplus ended up at USD 262.2 billion.

Mr Wang said factors behind the easing included changes to export rebate policies to curb export growth, the hiking of the corporate income tax for foreign companies and a slowdown in US demand.

He said that more measures would be needed to limit growth in the trade surplus, including trimming policies encouraging export, curbing domestic investment and allowing the Chinese currency to be more flexible.

China's proved coal reserves gain 44.8 billion tonnes in 2007

It is reported that China's proved energy reserves increased substantially in 2007 with coal reserves adding 44.8 billion tonnes.

According to initial statistics, 62 large deposits were found by the end of 2007, for 17 kinds of resources, inc. coal, natural gas, iron ore, manganese, copper, lead and zinc etc.

As per report in specific, there are three 100 million tonnes oil fields, five 30 billion cubic meter natural gas fields and 41 coal mining areas which include 14 oversized that has over 1 billion coal reserves, aside from aluminum soil mines, gold mines etc.

Separately, China's proved coal reserves have topped 724.116 billion tonnes so far with 186.822 billion tonnes under production or construction. In 2007, China produced 2.523 billion tonnes crude coal up by 8.2%YoY compared to consumption of 2.5 billion tonnes.

Dongbei SS wire annealing furnace to start in September 2008

It is reported that Dongbei Special Steel Group located in Liaoning province of China has awarded the Gases Division of The Linde Group a contract for a new state of the art annealing furnace for stainless steel wire in October 2007. The commissioning of the world’s first REBOX® DST furnace in this application is scheduled for September 2008.

The Linde Gases Division will deliver a project of key components and functions, including guaranteed capacity, emission levels and quality. The new annealing furnace for stainless steel wire will combine two of Linde’s market-leading technologies, DST and REBOX®. Direct Solution Treatment has earlier been installed at Fagersta Stainless in Sweden and POSCO Specialty Steel in South Korea. REBOX® oxyfuel solutions are employed in over 100 reheat and annealing furnaces. The use of oxyfuel will further improve important parameters such as fuel consumption, throughput capacity, and emission levels. Compared to air fuel solutions, oxyfuel can boost production throughput up to 50 percent, equally reducing fuel consumption and CO2 emission by 50 percent.

Founded in 1905 as Dalian Steel, Dongbei Special Steel Group is a leading manufacturer of high added value specialty steel products. In an ambitious program, Dongbei Special Steel Group is investing EUR 800 million in a Greenfield specialty steel plant.

Second round of China EU trade talks to be launched soon

It is reported that China and the European Union will launch a second round of talks in the near future to update the existing bilateral agreement on trade and economic cooperation.

Mr Yu Yuantang an official with the commerce ministry's European affairs department while speaking at a seminar on China EU trade sustainability impact assessment in Beijing said that "The second round of negotiations is expected to focus on areas such as investment and consumer protection. The two sides are actively preparing for the talks but the timing is not yet settled."

Mr Yu said some consensus was reached in the first round of talks on economic and trade ties, which concentrated on development aid, internal markets and e-commerce.

As per report after the EU's enlargement in 2004, the China-EU trade relationship became the biggest in the world. But it was based on a four-page bilateral agreement signed in 1985 between China and the former European Economic Community.
Talks on both agreements were launched separately last year.

The China EU trade volume was USD 356.15 billion in 2007 up by 27% from a year earlier.

Zinc futures surge on supply shortages

It is reported that six Shanghai futures products rose sharply last week with zinc surging to the daily allowable limit on expectations of strong demand and short supply after recent blizzards halted production.

As per report all 12 zinc futures contracts for delivery in different months on the Shanghai Futures Exchange soared to their daily allowable limits. The most actively traded zinc futures contract for delivery in May jumped 4.2% to close at CNY 20,525 per tonne.

Power disruptions in provinces hit hard by recent snowstorms forced many zinc and other metal manufacturers to suspend part or all of their production. Analysts said repair of infrastructure damaged in the blizzards is expected to create strong demand for a wide range of raw materials.

Mr Zhou Jie at China International Futures Co said "Serious production disruptions in Yunnan and Guizhou provinces have further upset the supply and demand balance. He said intensified concern about rising global inflation has triggered a buying spree in commodities.” He added that the rapidly depreciating US dollar against most major world currencies has made buying commodities a safe bet for investors because trading in those commodities is settled in the US currency.

Mr Liu Chao an analyst at Xiangcai Qinian Futures Co in Shanghai said that "Expectations of further US dollar depreciation also pushed up prices of commodities in the global markets. He said investors are rushing into commodities to seek refuge in anticipation of an upswing in energy and metals prices."

Baosteel to build wheel base with Shanghai Automotive Industry

It is reported that Baosteel Group has inked a letter of intent with Shanghai Automotive Industry Group to cooperate on steel wheel businesses.

The automaker will support a proposal, in which the mill has decided to establish a modern steel wheel base at Yuepu Industry Park Zone with a design capacity of six million pieces per year.

Ukrainian steel output in 2008 to Increase by 7.8% YoY

Millennium Capital reported that according to the Association of Secondary Metals, Ukraine's steel output will increase in 2008 by 7.8% YoY based on companies' plans announced. The figures are preliminary and are subject to correction.

Mr Andriy Ivasiuk analysts with Millennium Capital said that “We have a positive view on Ukraine's steel sector for 2008 and forecast an output growth of 5% YoY to 7% YoY.”

He however added that the coke issue remains to be the main challenge for the industry in 2008.”

SDS to open new coal mine at Maiskaya

It is reported that Siberian Business Union intends to build the new mine of 10 million tonnes capacity by 2014 in the Maiskaya Mine field. Now the Company studies the Chinese technologies for the building of such entity.

As per report the project is assumed to be launched in 2009. The pit of 1.5 million tonnes capacity should be built along with the mine having 8.5 million tonnes in the output. Besides, the enrichment plant should be built. The project is appraised to demand RUB 17 billion.

The probable sale market is undetermined yet but the main part of the output is assumed to be exported.

MN Speciality to invest EUR 60 million on equipment

MINA News Agency reported that the British company MN Speciality Steels is negotiating with the leading West European countries on investments of about EUR 60 million on purchase of strategic equipment for the Steelworks in Niksic.

The report quoted Mr Radomir Vukcevic president of the board of directors of the steelworks as saying that MN Speciality Steels paid EUR 20 million for investments for 2008, but that the sum of EUR 14 million deposited for 2007 could not be spent, since it was not physically possible.

According to Mr Vukcevic, the production in the Steelworks is going in line with the plan, but the management was not satisfied with its level and sale of special steels.

He said that the production plan for 2008 was 100,000 tons of special steels, which is three times more than in 2007. Mr Vukcevic said “That is the reason why we have to invest a lot. The Steelworks should produce special steels only and currently it produces them just part.”

Mr Vukcevic said that the company had enough raw materials for production, but he added that MN Speciality Steels is investing into the Port of Bar in order to make supply of raw material more efficient. He further added that “We have completed the investments in the Port of about EUR 3.5 million.”

Aricom moves into profit in 2007

Reuters reported that Russian miner Aricom Plc posted its first profit making a net profit of USD 100,000 in 2007 after a loss of USD 2.6 million in 2006. Aricom Plc said it had net assets of USD 1.14 billion at the end of the year up from USD 527 million a year earlier.

Mr Jay Hambro CEO of Aricom Plc said "Aricom has achieved another year of significant development and I am pleased to announce Aricom reports a maiden profit."

Recently Aricom Plc said output in 2008 of titano-magnetite ore was forecast at around 225,000 tonnes while ilmenite sales were due to begin in October and would total 36,000 tonnes in 2008.

Aricom Plc has an off take agreement with China National Gold Group Corporation, although it will also have some extra ore left over for sale elsewhere. Prices will be set quarterly based on the average global price in the preceding three months.

OMK VMZ improves environmental performance in 2007

It is reported that OMK’s Mining Metallurgical Plant OAO VMZ in Nizhny Novgorod region has improved environmental performance of production by lowering the level of pollution per unit of output in 2007.

Specific number of discharges of pollutants into water bodies has decreased as compared with 2006 from 1 kilogram to 0.9 kilogram per tonne of production, the number of pollutant emissions in the air decrease from 2.6 kilogram to 2.4 kilogram per tonne of product, quantity of education waste production decrease from 163 kilogram to 122 kilogram per tonne of products.

Reducing waste generation has been achieved, in particular with the launch of the new installation of spent waste lubricating coolant in the complex manufacturing large diameter pipes. The cost of the project amounted to about RUB 70 million.

In 2008, VMZ will continue to implement environmental projects. In particular, it is planned to send about RUB 54 million for the construction of treatment plants at No 5 which would increase production and cleaning storm water discharged into the Zheleznitsa. More than RUB 27 million will be sent for reconstruction of purification facilities galvanic production in the shop No 5. In addition construction of the cleaning of dust and gas, waste from the production of blast furnace steelmaking is schedule to begin. At present, the engineering company Energokaskad installation is developing a project, the creation of which will reduce air emissions of nitrogen dioxides by 20% and 95% of dust.

NMP certified by TUV CERT

JSC Novosibirsk Metallurgical Plant has received the certificate of compliance of its quality management system to the international ISO 9001:2000 standards. The certificate was issued as a result of auditing the enterprise late last year by a German certification authority TUV CERT.

The certificate confirms that the quality management system applied at JSC Novosibirsk Metallurgical Plant named after Kuzmin is compliant with ISO 9001:2000 in the following spheres, production of sheet roll, bands, strip, joist webs and road guardrails.
To guarantee the compliance of NMP products with the fixed requirements, NMP created and successfully applies a quality management system certified earlier in 2006 by Novosibirsk centre of standardization, metrology and certification for the compliance to the state standard R ISO 9001-2001.

Ukrainian committee bans Karbon coal mining operations

Ukrainian News Agency reported that Ukraine state committee for industrial safety, labor protection and mining supervision has banned mining works at Coalmine No.222 that belongs to Karbon coal company.

The report said Mr Leonid Marchenko, an adhoc commission with chairman of the committee’s territorial department, is investigating causes of the accident involving a group of people.

A militarized mining rescue team is working on the site and the mining site is being examined.

US supporting Nabucco pipeline

Reuters reported that US threw its full diplomatic weight behind the European Union's troubled Nabucco pipeline project to bring gas from the Caspian Basin to central Europe. A senior US official said Nabucco was as important to the United States, to help European allies diversify sources of supply and reduce dependency on Russia, as the Baku-Tblissi-Ceyhan oil pipeline had been in the 1990s.

Mr Matthew Bryza deputy assistant secretary of State told reporters after talks with Mr Andris Piebalgs energy commissioner of EU that "The Nabucco pipeline will be built because it makes commercial sense. We are trying to build on the success of the last decade and expand the infrastructure put in place with the same commitment, the same intensity."

Mr Bryza said the planned 3,300 kilometer pipeline across Turkey to central Europe was a much more cost efficient way of transporting gas from Azerbaijan to Europe than the rival South Stream pipeline project being pushed by Russia's Gazprom.

Mr Bryza said “Nabucco makes eminently more commercial sense than any of the other projects, comparing the US diplomatic effort to support the project with the intense campaign Washington waged in the late 1990s to promote the TBC pipeline.”

As with the Baku-Ceyhan project, the US was interested for both geopolitical and geo-economic reasons and would help the partners involved to synchronize their decisions.

Russia offers to jointly develop oil and gas fields in Ukraine

Mr Viktor Zubkov PM of Russia after negotiations with Ms Yulia Tymoshenko PM of Ukraine said that that Russia has offered to jointly develop oil and gas deposits in both countries. Mr Zubkov said "Our proposals to Ukraine include not only the transit, but also joint development of hydrocarbon deposits in both countries, with an equal exchange of assets."

Mr Zubkov during talks with his Ukrainian counterpart, Ms Yulia Tymoshenko said "We have reaffirmed our rigorous compliance with the commitments made by our presidents in this field."

Trade turnover between the two former Soviet republics increased 22% to just under USD 30 billion in 2007. Imports from Ukraine, mostly foodstuffs and agricultural products, grew almost 40%, while Russian exports grew 9% in the same period.

Ports in Nakhodka increase cargo turnover in 2007

Vladivostoktimes reported that cargo turnover of four Nakhodka ports increased by 6% in 2007 and amounted to 36 million tonnes. The captains of the biggest ports and representatives of Nakhodka stevedore companies discussed the prospects of sea transport development at the meeting with the City Administration leaders.

Mr Boris Gladkikh first deputy head of Nakhodka w said that “Sea transport is one of the main sectors of Nakhodka economy. There are four big ports in the city district territory, Trade, Fisheries, Oil loading and Vostochnyi. In 2007 total volume of processed cargo amounted to 36 million tonnes that is 6% more than the indicator of 2006.”

Mr Gladkikh called the construction of oil loading port in the Kozmino Bay as one of the most prospective investment projects. He said “The terminal will become the end point of oil loading system Eastern Siberia Pacific Ocean and will be able to receive oil by railroad and load tankers of 300,000 tonnes deadweight.”

Planned capacity of the first turn of the port will be 15 million tonnes per year. It's planned to deliver oil through the pipeline increasing the volume in future.

Gazprom gets Kyrgyz gas field licenses

Reuters reported that Kyrgyzstan has awarded Gazprom exploration licenses for two oil and natural gas fields and invited the Russian gas monopoly to buy stakes in its state owned companies. Gazprom said it would invest up to USD 300 million to develop the Central Asian nation's fields within the next four years.

Mr Alexei Miller CEO of Gazprom told reporters after meeting Mr Igor Chudinov PM of Kyrgyzstan in the capital Bishkek that “We were given exploration licenses today. He said during the second stage Gazprom will invest about USD 300 million into Kyrgyzstan.”

Mr Chudinov said the government had also invited Gazprom to take part in the planned privatization of two state owned oil and gas companies Kyrgyzgaz and Kyrgyzneftegaz.

Kyrgyzstan produces about 70,000 tonnes of oil and 30 to 40 million cubic meters of gas a year, but the government says there are sizeable unexplored hydrocarbon reserves.