POSCO worried over delay in start of Orissa project

It is reported that POSCO, which has announced plans of setting up a mega steel plant in Orissa, has expressed concern over the slow progress in obtaining prospecting license for iron ore mining and acquisition of land leading to delay in start of the project.

Mr Chango ho Kwag director of POSCO Research Institute, while addressing on the sidelines of Steelrise 2008, said that securing prospecting license and land acquisition were the two major issues that were worrying the POSCO officials in Korea.

Mr Kwag, who is closely associated with the POSCO project in Orissa, said that although it had applied for prospecting license for iron ore mining in November 2005, there was not much progress in this regard.

He added that “The application, which was sent to the Orissa government for onward passage to the union ministry of mines, was sent back as the state had skipped the procedure of public hearing. Now the public hearing is taking place. This had led to considerable delay in the start of the project."

He added that “We are hoping to resolve the issue in a couple of months as POSCO is committed to the project.”

He, however, noted that pursuing mega projects in India is very time consuming as compared to South Korea. He said “The delay has also led to cost over run.”

Mr Kwag also stated that POSCO is now thinking whether the project in India was possible.

POSCO has proposed setting up a 12 million-tonne integrated steel plant in Orissa at a cost of INR 52,000 crore and signed a MoU with the state in June 2005 in this connection. The project requires nearly 4,000 acres of land, but it has been able to get only 300 acres. Out of the total land requirement, 90% belonged to the state government and the rest was to be purchased from the people.

TATA Steel 3 projects in India delayed by 12 months

TATA Steel has outlined that its 3 mega steel projects in Jharkhand, Orissa and Chhattisgarh have been delayed by about 12 to 16 months due to issues over land acquisition and resettlement. TATA Steel plans to invest about INR 90,000 crore in the three projects, which will have a total capacity of 23 million tonnes.

Mr H M Nerurkar COO of TATA Steel while speaking to journalists on the sidelines of Steelrise 2008 in Kolkata said that all the projects are delayed.

1. Kalinganagar plant in Orissa
Construction work has not started on the first project as about 400 families are yet to be re-settled for the project. It is yet to get recommendation for iron ore mines for its project in the state Equipment costing about INR 10,000 crore have already been ordered. But Mr Nerurkar is optimistic about the construction work starting by March end.

2. Bastar plant in Chattisgarh
According to Mr Varun Jha VP of Chhattisgarh project “The first phase is planned to be commissioned by 2011 and the second phase by 2015. But the project has been delayed on account of litigation over mines. About two thirds of the residents have accepted the compensation package. Investments would depend on when the project would start.”

3. Jharkhand project
Mr Partha Sengupta in charge of the Jharkhand project pointed out that “Applications for land acquisitions were made a year and a half ago. However, the state government is yet to announce a rehabilitation and resettlement package, which is necessary for land acquisition.”

Euro Group plans pelletization plant in Madhya Pradesh

It is reported that Euro Group is planning to set up a 2 million tonnes per annum pelletization plant in Madhya Pradesh with an investment of INR 1,100 crore.

Funds for the project will be raised from internal accruals and debt and the project is scheduled for completion by early 2011.

Mukand to start operation on its third mini BF by March

NewsWire reported that Mukand is expected to start operations of its third mini blast furnace at its Hospet facility in Karnataka by early March 2008.

Once fully commissioned and operational, it would take Mukand's steel making capacity to 500,000 tonnes from 300,000 tonnes now.

The Hospet facility will manufacture specialty and stainless steel products.

It is also increasing value added offerings such as stainless steel and bright bars to reduce dependence on automobile sector. Civil work on the 15 MW captive power plant in Hospet has also commenced. The modernization of its wire rod mill at Kalwa in Thane is on and the project is likely to be commissioned by April 2008.

JSL plans 20% YoY increase in 2008-09 revenues

ET reported that Jindal Stainless Limited expects revenue to rise by 20% in 2008-09 driven by higher stainless steel demand from Indian Railways and overseas.

Mr NC Mathur MD of Jindal Stainless said that "We are quite bullish about 2008-09. We expect a 20% rise in revenue."

He added that it has got a prospecting license for chrome ore mining in Vietnam and plans to initially invest as much as USD 40 million for developing it.

TATA Steel urges iron ore export ban

Mr HM Nerurkar COO of TATA Steel, while addressing Steelrise 2008, said that iron ore reserves in India are enough to produce 180 million tonnes of steel till 2020, if this captive resource is not exported. He added that "We have enough iron ore resource in India if we do not export it to other countries."

Mr Nerurkar said that about 60% of India's iron ore is being exported to foreign countries. He added that "If we export our iron ore to China and they produce steel out of that, if affect the domestic steel market. China supply steel to India and it floods the Indian market."

Steelrise 2008 is a 3 day international conference cum exhibition on steel to discuss development and employment generation in the industry.

Sinosteel to start work on roll plant in WB by April

It is reported that Sinosteel is likely to commence work on its 5,000 tonnes per annum steel mill rolls plant at Haldia in Midnapore district of West Bengal by April 2008.

The facility to be spread over 30 acres of land, will entail an investment of INR 200 crore and will manufacture cold forged steel rolls used in cold rolling mills. Sinosteel has already placed orders for the equipment which will be sourced from China.

The investment in West Bengal is part of a USD 2 billion package being readied by Sinosteel for India. Sinosteel has signed an MoU with the Jharkhand government for an integrated steel plant in 2007. The Jharkhand project is likely to come up in Silli-Chandil area near Ranchi.

Welspun Gujarat refutes news on steel plant

Welspun Gujarat Stahl Rohren Limited has informed BSE that it would like to strongly refute to the market news of the company putting up a steel plant.

Welspun Gujarat in a release to BSE said that “It is not contemplating any steel plant at this juncture."

JSL announces positive business outlook

Jindal Saw Limited has announced the following business outlook

A Jindal Saw release said that “Rising Demand for steel pipes is expected to be higher in the medium term on account of increased exploration activities and thrust on setting up infrastructure to transport oil and gas. In India, rapid economic growth faces an urgent need to develop and improve water supply, which would also increase demand for SAW pipes. Depleting oil reserves have led to increased exploration efforts, resulting in more wells in the exploratory rig. Demand for seamless pipes is directly proportional to the increase in digging of wells which is also expected to remain high.”

It added that “India is expected to see a spurt in construction of pipeline infrastructure as the country's spending on exploration and production and gas related pipeline CAPEX increases. It is expected that water and irrigation offer a very strong business opportunity in India, which will benefit Indian HSAW, ERW and DI pipe manufacturers, in addition to the opportunity from the energy sector.”

Jindal Saw follows a multi product approach to pipes, offering a full product portfolio of longitudinal submerged are welded, helical submerged are welded, seamless, DI pipes, anti corrosion coatings, connector casings and Hot reduction Bends. Its product portfolio allows it to comfortably straddle between value driven products and volume driven ones.

Indian Railways iron ore revenue in 2007-08 to rise by 44.56% YoY

Indian Railways expect the earnings from moving iron ore to touch INR 3,948.14 crore during the current fiscal up by 44.56% YoY. Indian Railways moved 40 million tonnes of iron ore in 2006-07 and earned INR 2,731 crore.

As per the budget estimates, Indian Railway expects the revenues from iron ore, to touch INR 4,386.25 crore during the 2008-09 financial year and hopes to move around 56.82 million tonnes.

The iron ore for the various domestic steel plants that Indian Railway has moved is expected to be only around 44.47 million tonnes and the revenues likely to touch INR 1,284.2 crore by the end of the current fiscal. During the fiscal 2008-09, Indian Railway hopes to move around 49.83 million tonnes and earn around INR 1,466.79 crore.

This increase is due to a huge surcharge introduced through a notification after the Railway Budget in 2007. Railway Ministry in December 2007 hiked the surcharge to 60% per tonne. Earlier, the congestion surcharge was at 35% per tonne, effective from October 1st 2007 up by 14 percentage points over the 21% surcharge level prevailing till September 2007 end.

L&T to set up power equipment manufacturing plant in Hazira

Larsen & Toubro recently announced that it has zeroed in on Hazira to set up its INR 1,500 crore power equipment manufacturing plant.

Mr AM Naik CMD of L&T said that it would make turbines and boilers at the Hazira plant and for this purpose, it has floated 2 companies namely L&T Turbines and L&T Boilers.

The plant would have a capacity of 2,000 MW to 3,000 MW a year and expected to be commissioned 24 months from now. The agreement follows the technology licensing and technical assistance agreement for manufacturing of super critical turbine and generator, signed between L&T, Mitsubishi Heavy Industries and Mitsubishi Electric Corporation.

Port & dock workers to go on nationwide protest in March

BL reported that 5 major federations representing India’s port and dock workers plan to organize nationwide protest day in March 2008 against government’s delay in implementing their long pending demands and they are also against the plan to corporatise some of the major ports.

Mr T Narendra Rao general secretary of Water Transport Workers Federation of India said that, at a meeting in Mumbai on February 22nd and February 23rd 2008, the federations decided to direct their affiliated unions at respective ports to organize nationwide protest day.

The 5 federations are
Water Transport Workers Federation of India
All India Port & Dock Workers Federation
All India Port & Dock Workers Federation
Port, Dock & Waterfront Workers Federation
Indian National Port & Dock Workers Federation

Their demands are
i) Payment of 15% interim relief from the basic pay with effect from January 1st 2007

ii) Merger of 50% industrial dearness allowance with basic pay from January 1st 2005 from the date at which it crossed the 50% mark

iii) Delay in the payment of balance amount of productivity linked reward after amendment to PLR settlement raising the definitions of wages and eligibility of the employees for productivity linked reward bonus

iv) An early meeting on the one man committee’s recommendations of categorization and classification of employees at the Major Ports

v) The early submission of RK Jain committee’s recommendations on realistic assessment of required man power at the Major Ports

Mr Rao said in September 2007 that the shipping minister assured the federations that as long as he is the shipping minister there will be no such plan to corporatise the major ports. While Ennore is India’s only corporatised port, there was an earlier plan to corporatise the ports of Haldia and Jawaharlal Nehru Port. He added that “We now hear that the corporatisation plan has resurfaced in the ministry.”

On the Jain committee, Mr Rao said that after the ban at entry level recruitment in the year 2000, there is a vacancy for around 13,000 employees at the major ports.

Indian miners welcome Railway Budget 2008-09

PTI reported that Indian mining industry has welcomed the Railway Budget for 2008-09, saying that Mr Lalu Prasad Yadav union railway minister has provided respite to them by not increasing the freight charges.

Mr RK Sharma secretary general of FIMI said that “The Budget is all right. The railway minister has been kind in not increasing freight charges.”

However Mr Sharma said that “I hope Indian Railways do not increase freight during the course of the year like last year.”

He further appealed that “Railway minister’s announcement on doubling of some railway lines will ease the movement of iron ore, but we request the wagon availability should further improve.”

Days before the budget, both the steel and mining industries had alleged that Indian Railways has been increasing freight charges so frequently that it had gradually started hitting their bottom line. They had also pointed out that along with rise in freight charges, shortage of wagons also compounded their problems.

Texmaco to set up SS wagon building Greenfield plant

It is reported that union railway minister Mr Lalu Prasad Yadav’s announcement that henceforth passenger cars would be made of stainless steel has prompted Kolkata based freight wagon builder Texmaco Limited to announce a new project to make these coaches.

Mr Ramesh Maheswari president & CEO of Texmaco Limited said that it has already got a pilot order for EMU coaches which it was planning to produce at its existing Agarpara facility. He added that “However, in view of the announcement, it would choose to go for a Greenfield project.”

Mr Maheshwari further noted that Indian Railways is now ordering stainless steel wagons and Texmaco has already begun deliveries of stainless steel freight cars.

Mr Maheshwari said that Indian Railway’s target of 20,000 wagons translated into a 100% increase over 2007-08. Texmaco, which accounts for 30% of the wagons manufactured in India, aims to build at least 7,500 wagons during 2008-09. The venture with Australia’s United Group Rail will design, manufacture and supply wagons as well as locomotive bodies and components.

Mr AM Naik honored with Danish Knight of the Order

ET reported that Mr AM Naik CMD of Larsen & Toubro has been appointed as Knight of the Order of the Dannerbrog by Queen Margarethe of Denmark.

The Knight Cross was formally presented to Mr Naik by Mr Ole Lansmann Poulsen ambassador of Denmark in recognition of contribution made by Mr Naik in Indo Danish relationship.

Mr Poulsen said that there is large potential for enhancing trade relations between Denmark and India. So far 75 Danish companies have made investment in India making Denmark 19th biggest investor in India.

Ashok Leyland to double investment in Uttaranchal

BS reported that Ashok Leyland has decided to double investment in Uttaranchal from the INR 1,000 crore to INR 2,000 crore as a part of its expansion plan.

Ashok Leyland is likely to buy another 17 acres at Pant Nagar for a manufacturing facility at an investment of INR 1,000 crore. It has already bought 175 acres at Pant Nagar for manufacturing commercial vehicles and engine parts. It has also promised to provide employment to 2,200 persons, mostly locals.

Many auto manufacturers are setting up new facilities in Uttarakhand to avail of tax benefits announced by the centre in 2003.
1. Hero Honda - INR 1,200 crore plant in Haridwar
2. TATA Motors - INR 1,859 crore in Pantnagar
3. Bajaj Auto - INR 500 to INR 600 crore at Pantnagar

Godawari Power & Ispat to foray into commercial power

BS reported that Godawari Power & Ispat Limited is foraying into commercial power generation with projects in Chhattisgarh or Jharkhand. The capacity of the project will range between 300 MW to 1,000 MW, with coal and coal rejects as fuel.

Mr Dinesh Gandhi director finance of Godawari Power & Ispat said that “Our board of directors is yet to consider or finalize any plan and, now, we are concentrating only on the existing expansion plans to increase our operating margins. We may enter into commercial power business in future since our businesses are closely associated with power generation.”

A consortium led by Godawari Power & Ispat Limited has been allocated four coal blocks at Nakia and Madanpur in Chhattisgarh with 243 million tonnes of total reserves, of which, Godawari Power & Ispat Limited 's share is 63 million tonnes. Of this, 40% to 50% will be wastage such as coal ash and gases during coal processing. Godawari Power & Ispat Limited is planning to optimize its coal mines with coal rejects fired power plants as part of its backward integration expansions. GPIL will start mining by 2009 and set up power generation facilities.

Ennore port to invite EoI for new terminal by February end

BS reported that the new terminal at Ennore port near Chennai is finally taking shape and the port plans to invite expressions of interest for the proposed mega container terminal by February 2008 end.

Mr S Velumani CMD of Ennore Port said that construction work on the INR 1,300 crore project is likely to commence in 6 to 7 months, while the terminal is likely to start operations by 2010 end or early 2011. The project will be built on the public private partnership model.

Mr Velumani said that a few international players, including the Rotterdam Port Authority of the Netherlands, had shown interest in the project. He added that the port is also planning to build a 4 lane road linking the new terminal with National Highway V.

National Highway Authority of India has prepared the project report, which is awaiting the shipping ministry’s clearance. The new terminal will come with 125 acres of container yard adjoining the kilometer wide berth. Once the terminal starts operations, it will be able to simultaneously handle 3 mainline vessels with capacities of 8,000 TEUs each, as well as four feeder vessels. The terminal is expected to handle around 1.5 million TEUs in its first year of operations.

BGR Energy bags power plant contract from APGENCO

It is reported that BGR Energy Systems has received a letter of intent from Andhra Pradesh Power Generation Corporation for execution of balance of plant for the 500 MW coal based power unit constituting the 11th unit under stage VI at the Kothagudem thermal power station in Khammam district of Andhra Pradesh.

The scope of work includes design, engineering, manufacture, procurement, supply, delivery, testing at manufacturer's works, transportation to the site, storage, construction, erection, testing at site and commissioning of balance of plant including civil works for the project. The order is valued at INR 793 crore and the contract will be executed over a period of 26 months.

BGR Energy is currently executing 3 balance of plant contracts for 500 MW capacity coal based power projects and the proposed contract will be the fourth contract. Its current order book stands at INR 3,715 crore.

MMRDA extended deadline for FOB project bid

Projects Today reported that the last date for bids submission of Mumbai Metropolitan Region Development Authority's foot over bridges project along Western & Eastern Express highway had extended from earlier February 18th 2008 to March 3rd 2008.

It may be noted that MMRDA invited bids for construction of 11 foot over bridges along the Western Express Highway and 7 foot over bridges along the Eastern Express Highway in Mumbai under contractor's own design on January 19th 2008.

Bharat Forge to raise debt of USD 100 million by ECB

Auto components maker Bharat Forge Limited has announced that its board had approved a proposal to raise debt of up to USD 100 million by way of external commercial borrowings or a bank loan.

The board also approved an issue of convertible warrants to the founders totaling INR 300 crore to help fund its expansion in to the non auto goods sector.

RIL makes its 8 gas discovery in Mahanadi Basin

It is reported that Reliance Industries Limited has made its 8 gas discovery in the NEC 25 block in the NEC Mahanadi Basin in Orissa. RIL is currently evaluating the potential commercial interest of the discovery.

The discovery has been named Dhirubhai40 and notified to the government of India and directorate general of hydrocarbons.

The shallow water block NEC OSN 97/2 or NEC 25, covering an area of 10,755 square kilometer in water depths ranging between 20 meter and 600 meter was awarded to Reliance and Niko Resources of Canada in the first bid round under New Exploration Licensing Policy in 1999. Reliance has 90% interest while Niko has the remaining 10%.

Transporters strike at Mormugao Port continues

Navhind Times reported that the tanker owners supplying fresh water to the Mormugao Port and the trailer owners engaged in transportation of containers, has extended their support to the strike undertaken by the truck and tipper owners associations in view of the plan to stop transportation of coal and coke from berth numbers 10 and 11 of the Mormugao Port Trust.

As per report the strike called by the seven associations of the transporters in Vasco under the umbrella of Rojgar Bachav Abhiyan has entered the second day, bringing all the transportation activities in the port to a standstill.

Mr Lyndon Rodrigues president of Rojgar Bachav Abhiyan informed that all the tanker owners who supply fresh water to the Mormugao port and the owners of the containers have decided to join hands with the Rojgar Mormugao in demanding the deletion of the clause, pertaining to stopping of the coal and coke handling activities at berths 10 and 11 of the Mormugao Port from the MoU signed by the Mormugao Bachav Abhiyan, Mormugao Port and state government.

Coking coal contracts prices seen at USD 200 level

Bloomberg reported that BHP Billiton Limited and Mitsubishi Corporation may get twice as much for contract shipments of the steelmaking raw material because of shrinking global supply.

According to the median forecast of 7 analysts surveyed by Bloomberg, prices for hard coking coal for the year starting April 1st 2008 may surge to a record USD 200 per tonne from USD 98 this contract year. Annual contract prices for coking coal are set each year between steelmakers and producers for the 12 months starting April.

Meanwhile, floods in Queensland in Australia has led at least 6 producers to warn of missed deliveries, pushing cash prices almost three times higher than contracts. Queensland producers including BHP, Rio, Xstrata Plc, Wesfarmers Ltd, Ensham Resources Pty and Macarthur Coal Ltd have warned customers they may miss contracted deliveries from mines in Queensland since monsoonal rains affected the Bowen Basin in January and February 2008. BHP and Mitsubishi, together control the BHP Billiton Mitsubishi Alliance.

Mr Mark Pervan senior commodity strategist at Australia & New Zealand Banking Group Limited said that "There is clearly a large supply disruption with about 40% of the world's coking coal which has been heavily impacted by flooding. That is creating a very strong short term pricing environment.'' Mr Pervan said that cash prices for coking coal have surged as high as USD 270 a tonne in February 2008 as shipments from Australia slowed.

Assmang furnace out for up to six months after blast

Mining Weekly reported that African Rainbow Minerals furnace, which had exploded at the company's Cato Ridge works on Sunday, would be out of operation for the next five to six months.

Mr Jan Steenkamp CE of African Rainbow Minerals said that the rest of the ferromanganese plant, which had stopped running owing to the implementation of a prohibition order, is expected to resume operations by Friday, with a slow ramp up in production. He added that this also depended on the staff and convincing them that the environment was safe.

As per report the explosion was caused by an inflow of water into the furnace, this was initially caused by a water leak, however, Mr Steenkamp noted that the cause of the leak had not yet been identified.

When asked about the potential loss of production, Mr Steenkamp said that all the furnaces at the Cato Ridge works produced some 220 000 tonne per year of ferromanganese, which would equate to between 80 tonne and 100 tonne in a week. He added that, at this stage, the company had not quantified what losses had been incurred.

Billet price reaches new highs in Vietnam

YIEH reported that billet import market in South East Asia is dumb because buyers can’t accept the new quotation price of USD 755 per tonne.

As per report at the end of January 2008, the billet price was transacted at just around USD 745 to USD 750 per tonne CFR in Vietnam and USD 730 to USD 735 per tonne CFR in Thailand. But from February 2008, most of the quotations coming from Malaysia, and India to Vietnam have risen to USD 755 to USD 765 per tonne CFR. However, the highest price that buyers can accept is USD 750 per tonne CFR. Most of the local mills have enough storage, so they’re not in a hurry to replenish their stocks.

According to some professional analysis, the iron ore price increasing up to 65 percent will inevitably push billet prices up and finally mills cannot but accept the higher price level.

HRB spot prices moving to new highs

SteelBenchmarker reported that the US hot rolled band spot price for February 25th 2008 surged by 5.2% to USD 785 per tonne, FOB the mill for the eighth consecutive rise totaling USD 208, world export HRB price rise by 5.8% to USD 767 per tonne FOB the port of export, for the sixth consecutive rise totaling USD 186, Chinese HRB ex works price rose by10% to USD 604 per tonne for the fourth consecutive rise and the Western European HRB surged by 8.3% to USD 834 per tonne ex works for the second consecutive time.

USA
USD 785 per metric tonne FOB the mill
Up by USD 39 per tonne from USD 746 two weeks ago
Up by USD 225 per tonne from the recent low of USD 560 on August 13th 2007
Up by USD 155 per tonne from the recent high of USD 630 on April 9th 2007

China
USD 604 per metric tonne ex works
Up by USD 55 per tonne from USD 549 two weeks ago
Up by USD 134 per tonne from the recent low of USD 470 on October 22nd 2007
Up by USD 117 per tonne from the previous high of USD 487 on September 10th 2007

Western Europe
USD 834 per metric tonne ex works
Up by USD 64 per tonne from USD 770 two weeks ago
Up by USD 171 per tonne from the recent low of USD 663 on July 23, 2007
Up by USD 138 per tonne from the recent high of USD 696 on June 11th 2007

World Export Price
USD 767 per metric tonne FOB the port of export
Up by USD 42 per tonne versus USD 725 two weeks ago
Up by USD 217 per tonne from the recent low of USD 550 on July 23rd 2007
Up by USD 171 per tonne from the recent high of USD 596 on March 26th 2007

SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar, and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.

Ternium 2007 profit up by 1% YpoY

Steelmaker Ternium SA has announced the following results for 2007

In USD million
Shipments in million tonnes

Its Q4 net profit rose by 39% YoY due to higher sales volume after it acquired Mexico's Grupo Imsa, but the result was lower than expected.

In USD million
Shipments in million tonnes

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.

Production stops at LKAB Malmberget after the fire

The fire at LKAB’s Malmberget’s concentrating plant and its transformer station, which occurred in the early hours of February 21st has resulted in a production stop in the processing plants.

LKAB said that parts of the pellets production will resume sometime next 10 weeks and fines production is expected to start up running during the following week. It added that the delay is due mainly to time consuming operations to clean and repair electrical equipment damaged by the fire, as well as to a shortage of new electrical equipment.

LKAB has also declared force majeure in a notice to customers. Force majeure is declared in situations where serious interruptions occur in production and deliveries as a result of an extraordinary event or circumstance that is beyond the control of the parties in question.

Mr Johan Heyden vice president market division of LKAB said that “We are doing this now, since, owing to the nature of the effects of the fire, we do not know at present exactly when we can resume full production.”

He added that we are now working to determine how we can best utilize the capacity available in LKAB’s other palletizing plants to minimize losses to our customers.

Euro breaks 1.5 mark

European single currency surged to an all time high point of USD 1.5088 on Wednesday on concerns about the health of the US economy and renewed expectations of a cut in US interest rates.

A sharp downturn in the US housing market, which has suffered a wave of foreclosures as strapped homeowners fail to meet mortgage payments, combined with sluggish manufacturing activity and poor job growth have re ignited talk of a recession in the United States this year. That in turn has increased the likelihood that the US Federal Reserve, the central bank, will again slash its benchmark interest rate when Fed policymakers convene in late January, making the dollar even less attractive to investors.

Signature of the Treaty on European Union on February 7th 1992 known as the Maastricht Treaty, including provisions and conditions for economic and monetary union, for creation of the European Central Bank, of the euro common currency and of the eurozone.

Announcement of conversion rates for the euro against individual national currencies was done on December 31st 1998 for replacement of the European Currency Unit by the euro at the rate of one ECU for one euro. On July 1st 2002, Euro becomes the single currency

15 countries have now adopted the euro since its birth on January 1, 1999. The 12 countries that joined at its inception were: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Slovenia joined on January 1st 2007 after being admitted to the European Union in 2004. Mediterranean islands of Cyprus and Malta have been using the euro since January 1st 2008.

Euro fell to its historic low point against the dollar of USD 0.8230 on October 26th 2000 and that started steady climb to break 1.5 mark on February 27th 2008.

US Steel announces key executive changes

Mr John P Surma chairman & CEO of United States Steel Corporation announced a series of management changes at its headquarters and its operations in the United States and Europe that are expected to enhance the company's ability to effectively and efficiently manage its expanded asset base around the world.

The following key executive changes are:

1. Mr David H Lohr has been appointed senior vice president North American flat roll operations.

2. Mr Bridge has been appointed vice president operations East.

3. Mr Williams appointed as vice president operations, Midwest.

4. Ms Lisa A Roudabush has been appointed general manager of Mon Valley Works.

5. Mr Mark G Tabler has been named plant manager of Clairton Plant.

6. Ms Sharon K Owen has been appointed general manager of Granite City Works at Granite City in Illinois.

7. Mr David J Rintoul has been appointed general manager of Great Lakes Works in Ecorse and River Rouge in Michigan.

8. Mr Ralph Corrente has been named plant manager- primary operations

9. Mr David L Armstrong has been named plant manager- Midwest Plant.

10. Mr Richard M Efkeman has been named vice president worldwide marketing.

11. Mr Anton Lukac has been named vice president engineering & technology.

12. Mr Thomas Kelly has been named general manager blast furnace engineering & technology.

Mr Surma said that "Since late 2000, US Steel has acquired 18.9 million net tons of raw steelmaking capability in the United States, Canada, Slovakia and Serbia, as well as additional iron ore mining assets, coke making facilities, and flat rolled and tubular finishing operations. While we regularly review our management structure to ensure efficiency, we believe the time has come to make significant changes that will allow us to better focus our efforts in key areas and capitalize on market and operating synergies both realized and projected made possible by our growth."

Brazilian crude steel output in January up by 9.9% YoY

According to Brazilian Steel Institute, Brazilian steelmakers continued to work at full steam to start 2008, boosting crude steel output in January on strong domestic demand.

The Institute said that Brazilian steelmakers produced 2.971 million tonnes of crude steel in January2008 up by 9.9% YoY from 2.703 million tonnes in January 2007. Production of rolled steel products advanced 11.4% YoY to 2.243 million tonnes in January 2008 as compared with 2.013 million tonnes in January 2007. Output of both long and flat steel products continued the recent upward trend seen in both segments.

IBS said that strong demand from the civil construction industry and a surge in infrastructure projects has fueled demand for long steel products in Brazil. In January 2008, long steel output totaled 876,200 tonnes up by 17.6%YoY from 745,100 tonnes.

Record performance by the Brazilian auto industry, as well as increased demand from the oil, gas and naval industries also has sparked demand for flat steel. It added that flat steel production rose by 7.8% YoY 1.367 million tonnes up from 1.267 million tonnes in January 2007.

IBS said that January's gains follow record production in 2007, when steelmakers steadily boosted production throughout the year because of strong demand related to a government growth plan and an improved economic climate. In addition, last year's declines in local interest rates expanded access to credit for such steel-intensive goods as housing and autos. The Central Bank of Brazil's benchmark Selic base interest rate currently stands at 11.25%.

According to the IBS, January's domestic sales figures also continued the string of double digit increases posted in 2007. Domestic steel sales jumped by 27.2% to 1.849 million tonnes in January 2008, up from 1.453 million tonnes in January 2007. It said that high value rolled products, especially the flat steel used to make cars, trucks, pipelines and white line domestic goods, continued to dominate domestic sales.

SSINA releases US market data for December 2007

US based Specialty Steel Industry of North America has released statistical data on imports, US consumption and import penetration for YTD December 2007 compared to the same 2006 twelve month period.

Stainless steel
Imports of total stainless steel in YTD December 2007 were 765,431 tons, a 7.6% decrease compared to YTD December 2006; US consumption was 2,225,789 tons, a 14.0% decrease; twelve month import penetration was 34.4%, a 2.4% point increase from 2006.

Alloy tool steel
Imports in YTD December 2007 were 103,950 tons, a 2.9% increase compared to YTD December 2006; US consumption and import penetration were not calculable.

Electrical steel
Imports in YTD December 2007 were 110,612 tons, a 35.2% increase compared to YTD December 2006; US consumption was 429,651 tons, a 2.2% decrease from December 2006.

SSINA is a Washington DC based trade association representing virtually all continental specialty metals producers. Specialty metals are high technology, high value stainless and other specialty alloy products. Its member companies are AK Steel Corporation, ATI Allegheny Ludlum Corporation, ATI Allvac, Carpenter Technology Corporation, Crucible Specialty Metals, Electralloy, Haynes International Inc, ThyssenKrupp Mexinox SA de CV, North American Stainless, Outokumpu Stainless Inc, Precision Rolled Products Inc, Latrobe Specialty Steel Company, Universal Stainless and Alloy Products and Valbruna Slater Stainless Inc.

Nippon Steel to raise HR prices for Korean rerollers

JMB reported that Nippon Steel almost completed price hike negotiation with South Korean rerollers to increase the hot rolled coil export price by USD 200 per tonne for June shipment as compared with October to March period.

As per report Nippon Steel has increased the hot band price from FOB USD 720 for April shipment to USD 750 for June when the rerollers are suffered from higher cost price and lower selling price.

After the settlement with South Korean rerollers, Nippon Steel starts price negotiation with other Asian hot coil buyers offering USD 800 FOB.

Strike resumed at Sidor

Venezuelanalysis.com reported that thousands of workers at Ternium Sidor have activated staggered strikes as part of an ongoing dispute for a collective contract, which has dragged on for more than a year.

As per report, the dispute involves 5,400 permanent workers and a further 9,000 contract workers outsourced from 350 small and medium businesses that service the steel industry. In addition to improved health and safety conditions, the workers are demanding a salary increase to put them on par with workers in similar industries.

Meanwhile, Ternium Sidor claimed that the demand of the workers is unreasonable and the workers have characterized the Sidor management as intransient.

The latest demand by the union was for a raise of VEB 68 per day, down from their initial demand of VEB 80. Sidor has offered a VEB 24 raise and the intermediary proposal of the labor ministry is VEB 45.

Mr José Ramón Rivero labor minister of Venezuela said that the salary and conditions of workers in the steel industry are backwards but the 16 hour strike that paralyzed Sidor last Thursday was an error. He called on Sidor workers to agree to form of an arbitration committee to resolve the conflict. The proposal of the labor ministry involves the creation of a binding arbitration committee consisting of 3 members who have no direct relation to the conflict, one chosen by the company from a shortlist of three presented by the union, one chosen by the workers from a shortlist presented by the company and the other jointly designated by the company and the union.

Located in the state of Bolivar in the south of Venezuela, Sidor was privatized in 1997. Argentina's Trechint owns a 60% controlling stake, 20% belongs to workers and retirees and the remaining 20% is owned by the Venezuelan state.

Vinto ink contract with Ausmelt for construction of tin smelter

Itri reported that Bolivia’s Empresa Metalurgica Vinto has signed contracts with Ausmelt Ltd of Australia for the construction of a new tin smelter at EMV’s Oruro plant. Contracts worth AUD 3.6 million have already been signed and a further one for AUD 4.5 million for equipment and site services is expected to follow shortly.

As per report the smelter will have an annual capacity of 38,000 tonnes per year of concentrate or 18,000 tonnes per year of tin metal. This will be the second Ausmelt plant to be used by a major South American tin producer, as the technology is already used by Peru’s Funsur. China’s Yunnan Tin also uses Ausmelt technology.

Mr Francisco Infantes general manager of Empresa Metalurgica Vinto said the Bolivian government had previously announced plans to modernize the plant, at a total cost of USD 15 million. He said “This project is very important for us as this will be the first modernization after more than 30 years from the start up of the Vinto complex. This will put us in a position to favorably compete with other international modern tin smelters.”

The Ausmelt furnace will replace existing reverberatory furnaces, which may possibly used to treat other metals. Vinto produced 9,400 tonnes of tin in 2007. Full utilization of the new plant will require increased supplies of tin concentrates from Comibol’s Huanuni mine and other sources.

Ferrous scrap market in Tokyo hits a record high

JMB reported that ferrous scrap export price hit record JPY 48,550 per tonne for H2 from Osaka bay at export tender held by Osaka based ferrous scrap dealers' group Kansai Tetsugen on Tuesday.

The price increased by around 10% or JPY 4,450 from previous tender on January 15. The price was JPY 3,000 or around 7% higher than the record export price from Tokyo at tender by Kanto Tetsugen on February

Macarthur H1 profit falls on port congestion

PCI major Macarthur Coal Ltd said that’s its H1 profit declined by 68% as port constraints curbed exports from Australia.

Macarthur Coal in a statement said that its net income fell to AUD 13.5 million for the July to December 2007 period from AUD 42.4 million a year ago. It said that coal prices have soared to records as flooding of mines and congestion ports and railroads in Australia curbs exports from mining companies, driving down profits and restricting global supply. Record rainfall will cut output this quarter and may affect production in the next three months.

Mr Nicole Hollows CEO of Macarthur said that “With coal demand strong and supply constrained, it is likely that higher coal prices and higher sales as a result of infrastructure upgrades, will result in a very positive outcome for the 2009 financial year.”

Mr Hollows said that “It will be difficult to achieve the target, but we can achieve it if doesn't continue to rain. We have more water in the open pits than we do in the dams.''

Macarthur declared force majeure in January because of the weather and has cut its full year output forecast to 4 million tonnes from 4.5 million tons. Force majeure is a legal clause that allows a company to miss deliveries because of circumstances beyond its control.

Us clears GE buy of Tenaris Hydril business

AP reported that US federal antitrust regulators have cleared General Electric Company USD 1.12 billion purchase of Tenaris SA's pressure control business.

The Federal Trade Commission included the deal on a list of transactions that received an early termination of their antitrust reviews. Early termination refers to the completion of a review by the FTC or Justice Department before the end of a 30 day period required under antitrust law.

General Electric Company said last month it would acquire Tenaris' Hydril business which makes pressure control equipment for oil and gas drillers.

Strike at BHP's Colombian nickel plant

Reuters reported that workers went on strike at BHP Billiton's, Cerro Matosa ferronickel mining and smelting operation in Colombia.

The sources said speaking on condition of anonymity a strike at the operation some 400 kilometer north of Bogota began overnight. A company spokeswoman had no immediate comment.

According to Reuters Metal Production Database the business produces 55,000 tonnes of ferronickel annually or about 4% of the world's nickel.

Western Canadian Coal announces shareholdings

Western Canadian Coal Corporation has announced that according to AIM Rule 17, it has become aware that Mitsui Matsushima International PTY as at February 26th 2008 owns 4,823,400 common shares of the company, which is approximately 4.15% of the company's common shares outstanding.

Western Canadian Coal Corporation produces 3.1 million tonnes of high quality metallurgical coal from 2 mines located in the northeast of British Columbia. It also has interests in various coal properties in northern and southern British Columbia and a 50% interest in the Belcourt Saxon Limited Partnership.

Harsco establishes operating presence in Panama

Worldwide industrial services company Harsco Corporation announced that the further expansion of its international footprint with the establishment of a new operating presence in Panama for Harsco’s Access Services business group, a world leader in providing comprehensive scaffolding and concrete formwork solutions to the non-residential construction, infrastructure and industrial maintenance markets.

The new presence establishes a strategic, in county distribution channel for Harsco’s rental scaffolding and formwork systems in order to support the rapidly growing construction market in Panama and the surrounding region, where more than 150 major high rise and resort complexes are either in development or approved for construction. These include the 75 story Iron Tower, one of the largest developments planned in Latin America, and the 65 story Trump Ocean Club Hotel and Tower. Construction demand is expected to get an added boost when work is scheduled to begin next year on the planned USD 5.25 billion expansion and modernization of the Panama Canal.

The operations will be managed as a business unit of Harsco’s Patent Construction Systems division, one of three Harsco Access Services divisions that collectively provide comprehensive access services and support from an integrated network of close to market locations spanning more than 30 countries worldwide. Key among Patent’s Panama offerings will be its rental concrete forming and shoring products, which are used extensively on large scale construction projects to form and support cast in place concrete structures, such as floors, walls and columns.

Mr Salvatore D Fazzolari CEO of Harsco said that “This action establishes another strategic addition to Harsco’s expanding business presence in the Latin American sector and will give our Harsco Access Services group the necessary in county presence to directly support Panama’s booming construction market.” He added that the operations are also expected to foster broader regional distribution opportunities. We’re building a strong foundation to enhance our regional presence and expertise across all of Central America, Mexico and the Caribbean.”

Consol Energy to resumes output at Buchanan mine

It is reported that US coal miner Consol Energy has resumed production at two of the four sections at its Buchanan mine in Virginia, which was closed in July last year after roof falls damaged some of the ventilation controls in the mine, necessitating a general evacuation of the mine.

Consol said that repairs were still needed at the mine's 5 000 tonnes underground coal storage bunker. It had also restarted the mine's longwall mining system, the operation's primary production unit, on February 22, and full output was expected to be reached in mid- to late March.

It added that “Company engineers have made adjustments to the mine plan in the new area and expect that the changes will eliminate the problems encountered in July 2007.”

The Buchanan mine produces about 5 million tons a year of high quality metallurgical grade coal. The mine was sealed in late November as a final step before re entry, in order to ensure that the mine atmosphere was inert and incapable of supporting combustion.

Safety workers then entered the mine in January, to evaluate the damage to the operation.

Brazilian steel distributors revenues seen up by 25% in 2008

According to Mr Christiano da Cunha Freire president of industry institute Inda, gross revenues of Brazil's steel distribution sector could see an increase of some 25% in 2008.

Mr Freire told BNamericas that "Billing for the last year is estimated to have reached some BRR 15 billion (USD 8.88 billion) but the data is not yet compiled.” He added that "A conservative outlook would be an expansion of some 25% for 2008."

According to Mr Freire, the boost in 2008 gross revenues for steel distributors would be a result of higher sales volume and an expansion in prices.

Inda represents about 80% of the Brazilian steel distribution chain. Shipments from companies affiliated with the institute came in at 3.31 million tonne in 2007 and are expected to hit 3.58 million tonne in 2008.

Steel distributors buy large quantities of metal from producers and resell in smaller amounts. Inda boasts members such as Comercial Gerdau, controlled by Porto Alegre based long steelmaker Gerdau and metal products maker Mangels.

Taiwan to raise H beam prices

It is reported that Taiwan’s Tung Ho Steel is going to negotiate with Dragon Steel over the new domestic H beam price of March shipments, and is considering raising prices.

As per report with the rising rebar prices, recently the H beam price in Taiwan’s domestic market is actually lower than the rebar price, a situation considered unreasonable in a normal market.

In general, the rolling process fee for steel rebar is about TWD 1,200 to TWD 1,500 per tonne and the processing fee for H section will be at least TWD 1,000 per tonne above that of rebar because of the H beam’s need to use higher quality scrap than is the case for rebar. Therefore, generally, the H beam price will be higher than rebar’s in the market. So far, those two mills have not yet decided on the new H beam price, but it is expected that the new H beam price will increase by about TWD 800 to TWD 1,000 per tonne in Taiwan.

Buildmax to acquire Diesel Power open cast mining

It is reported that South African construction materials manufacturer Buildmax has concluded an agreement to acquire opencast mining and earthmoving contractor Diesel Power Open Cast Mining for ZAR 565 million.

As per report, Buildmax has agreed to acquire all the shares in and shareholders' claims against, Diesel Power from its current MD Mr Michael Watson with effect from September 1st 2007 and Diesel Power would continue to be managed by Mr Watson, who would have a significant interest in Buildmax as a result of the transaction. He would enter into a five year service agreement with Buildmax and was restrained from competing with the business of Diesel Power for a period of five years after the termination date.

Buildmax in a statement said that the acquisition of Diesel Power enhanced the company's equipment and services division by enlarging the size and scope of opencast coal mining and rehabilitation services and adding civils and bulk earthworks to its operations. It noted that "Diesel Power strongly positions Buildmax to service the high growth mining and construction industries.”

Buildmax also said that it saw sustainable growth opportunities coming from the power sector, driven by Eskom and industrial consumers' increasing need for coal, as well as the new coal fired power stations coming on stream. It noted that "These factors and the continued high-level demand for coal and commodities globally will drive growth in coal and other mining activities. However the shortage of equipment remains a constraint to growth in both large mining and construction groups.”

BHPB wants incentives for exploration in Trinidad

Reuters reported that BHP Billiton is interested in deep water exploration in Trinidad and Tobago but wants the government to review its very high tax regime and provide incentives for upstream companies that take risks.

Mr Vincent Pereira president of BHP Billiton Trinidad and Tobago said that exploration and development in the deep water, which could hold the key to new hydrocarbon reserves, comes at a very high cost and holds significant risks. He added that BHP Billiton did not participate in the last year's deep water round because the terms of the new fiscal regime and the expected economics were insufficient to justify a bid.

Mr Pereira told an energy conference in Caribbean that "The new fiscal terms resulted in economic outcomes significantly below our opportunities for a petroleum project elsewhere in the world and this is even without consideration of the associated geological risk. The key commercial issue in our view is that the very high tax regime, combined with the significant upfront investment required for a deep water development, cannot sustain the very slow payback over time that occurs with such a tax regime.”

Trans Pacific Petrochemical Indotama declares force majeure

Reuters reported that Indonesian petrochemical firm Trans Pacific Petrochemical Indotama has declared force majeure this week due to a problem with port facilities. The second time it has done so in four months.
Mr Russell Kelly director of PT Tuban Petrochemicals Industries, a majority stakeholder in Trans Pacific Petrochemical Indotama said that "The port facility is considered unsafe for navigation at the moment.” But he declined to comment further on the issue or on the duration of the force majeure.

Trading sources said deliveries of feedstocks condensate and naphtha, as well as loadings of petrochemical and oil products for sale had been stopped.

The complex in Tuban on East Java province includes 100,000 barrels per day condensate splitter that can process naphtha or condensate. When at full capacity, Trans Pacific Petrochemical Indotama can produce an estimated 1.1 million tonnes of kerosene, 189,000 tonnes of diesel oil, 500,000 tonnes of paraxylene, 120,000 tonnes of orthoxylene and 100,000 tonnes of toluene per year.

A source said that breaches in the breakwater wall that protects the plant from the sea prevented cargoes from entering the port facilities to discharge and load from the refinery. It was unclear what caused the breaches but rough weather in Indonesia last week caused disruptions to berthing operations at key coal terminals across Java Island, hampering deliveries to power plants.

A port agent said earlier this week high sea swells also halted berthing operations at Indonesia's offshore terminal pumping Widuri crude.

Bombardier to supply new locomotives for NJ Transit

Bombardier Transportation has been awarded a contract for 27 ALP-46A electric locomotives by the New Jersey Transit Corporation. The order for 27 locomotives is valued at an estimated EUR 155 million and the contract also includes options for an additional 33 locomotives.

The powerful new locomotives will help NJ TRANSIT expand capacity in its passenger rail operations, hauling specially designed Multilevel commuter rail cars Bombardier is currently delivering to the transit service provider.

The new ALP 46A locomotives are based on service proven ALP 46 electric locomotive technology that has been in successful operation with NJ TRANSIT since 2002. NJ TRANSIT currently utilizes 29 ALP 46 locomotives as part of its commuter rail fleet.

ALP-46A locomotives will feature a number of technology upgrades along with improved acceleration and increased operating efficiency. The locomotives will be capable of speeds up to 125 mph and will be powered by highly reliable BOMBARDIER MITRAC propulsion and controls equipment. MITRAC propulsion and controls technology offers high performance and intelligent features such as remote diagnostics systems and sophisticated adhesion control for improved traction and hauling efficiency on steel rails

The new locomotives will be built at Bombardier's manufacturing site in Kassel, Germany. Shipments are scheduled to begin in the Fall of 2009.

Mr Edmund Schlummer president of Bombardier's locomotive division said that "An important factor in this follow on order is the excellent reliability of the 29 ALP 46 locomotives, as well as the high quality and on-time delivery of the product.”

NJ TRANSIT is an established customer of Bombardier and the third largest provider of public transit in the United States. In addition to ALP-46 locomotives, Bombardier has supplied more than 300 Comet II, III and IV push pull commuter cars to the transit agency, and is currently delivering 234 MultiLevel commuter rail cars.

Bombardier Transportation has its global headquarters in Berlin, Germany with a presence in over 60 countries. It has an installed base of over 100,000 vehicles worldwide. The Group offers the broadest product portfolio and is recognized as the leader in the global rail sector.

Vena Resources to invests in the clean coal business in Peru

Vena Resources Inc announced an initial investment in Sudamericana de Carbon SAC, a Peruvian company focused on the exploration, development and processing of anthracite coal in Peru.

Vena's investment of up to USD 2.5 million over time to obtain 70% of Sudamericana de Carbonwill be used to speed up the scoping study for the installation of an anthracite washing plant in Peru, explore Vena's northern Peru properties where anthracite is known to be available with the goal of identifying a NI 43-101 compliant coal resource, and to purchase an anthracite washing plant based on the results from the scoping study.

Sudamericana de Carbon is currently selling run of mine anthracite coal to the local market on a small scale. Vena expects that its investment over time will enable SDC to generate larger sales and margins once an anthracite washing plant and larger briquetting operations are in place.

Newmont receives extension from Indonesian government

Newmont Mining Corporation announced that it had requested and received an extension of the Government imposed deadline to complete agreements in principle to divest 10% of PT Newmont Nusa Tenggara owner of the Batu Hijau mine in Indonesia.

As per release “The government extended the deadline until March 3rd 2008. If an agreement to sell shares in PT Newmont Nusa Tenggara to the local governments cannot be reached by this date, or a further extension of the deadline is not granted, PT Newmont Nusa Tenggara may be forced to protect its interests by resorting to conciliation or arbitration.

Mr Richard O'Brien president & CEO of Newmont said that "We are pleased that the government granted additional time to try to reach agreement on the initial share divestiture. We have worked diligently and in good faith to offer and complete the sale of shares and hope to reach agreements in principle within the week. We remain committed to resolving this issue in a fair and transparent manner."

Hyundai Mipo wins KRW 570 billion order

It is reported that Hyundai Mipo Dockyard Co, a unit of the world’s largest shipyard Hyundai Heavy Industries Co has received two orders valued at KRW 570 billion (USD 602 million) to build eight vessels, including four petrochemicals carriers.

Shipyards in Korea, the world’s largest shipbuilding nation, have received record orders in recent years as demand has surged for vessels to transport raw materials to China and goods to the rest of the world.

Mt Isa operations help boost Xstrata performance

The latest annual production report released by Xstrata indicates north west Queensland operations have played a key role boosting the company's performance.

Xstarat said that Mount Isa Mines, zinc production increased from 209,000 tonnes last year to 226,000 tonnes, although lead concentrate production declined.

Mr Steve de Kruijff CEO of Xstrata Copper said overall the company produced almost 1 million tonnes of copper, despite falling grades in Mount Isa. He added that "We had slightly lower copper in concentrate tonnages from the previous year because that was impacted by lower head grades out of the mine.”

Mr Kruijff said that "We did see an increase in production for the full year against our previous year, for both our smelter production, where we saw an increase from 212,000 tonnes on a previous year to about 218,000 tonnes."

Rocky Mountain discovers vanadium and zinc at Gibellini project

Rocky Mountain Resources Corp announced the results of a 16 hole exploration drill test on the Gibellini Project, 24 miles south of Eureka, Nevada. The program was designed to test soil vanadium and zinc anomalies 500 meters south of the known Gibellini vanadium deposit and three nickel vanadium zinc breccia pipes identified on the property.

Rocky Mountain Resources said that three holes in the Rich Hill area tested a portion of the soil anomaly, identified last summer and discovered a stacked zone of ore grade vanadium rich shale. The shale starts at the surface, on the top of a hill and there appears to be four stacked zones of shale enriched in vanadium and zinc.

Mr Brian McAlister president of Rocky Mountain Resources said that "This opens up significant potential to expand and develop a new vanadium-zinc deposit at the Gibellini project. This new zone, similar to the main Gibellini deposit is well situated for mining and preliminary metallurgical tests at Gibellini suggest the mineralization might be processed by heap leach techniques, which would open the door to low cost production at the project with relatively low start-up capital demands. We now have additional exploration potential along with the newly announced vanadium resource."

Rocky Mountain Resources is a precious and base metal exploration and development company focused on the development of new resources.

Orscam to set up steel fabrication plant in Egypt

Cairo based Orascom Construction Industries has announced that it plans to expand its investments in the industrial zone in Ain Sokhna through its wholly owned subsidiary National Steel Fabrication. It said that approximately EGP 450 million in capital expenditure has been earmarked for the construction of a new state of the art steel fabrication plant to be commissioned during 2008.

The capital expenditure will be used to finance a new steel fabrication plant with an annual production capacity of 80,000 tonnes. The new yard will be built on a total area of 500,000 square meters in Ain Sokhna in the industrial park that is managed on a concession basis by Orascom subsidiary Suez Industrial Development Company. The new plant will create approximately 3,000 new jobs.

National Steel Fabrication has also completed the acquisition of IBSF, formerly known as Nasr Boiler & Pressure Vessels Company, which specializes in the design and manufacture of all types of boilers, pressure vessels, condensers and heat exchangers which serve as integral components in power plants and various industrial projects. In addition to the design and manufacture of the aforementioned products, IBSF also offers engineering, procurement, installation and startup services. The acquisition was completed at total enterprise value of EGP 75 million.

Mr Nassef Sawiris CEO of Orascom Construction Industries said "our steel fabrication plants provide a competitive edge for our Construction Group in the execution of turn key industrial and infrastructure projects across the region, especially in power, oil & gas and large scale infrastructure."

The new plant raises Orascom Construction Industry’s annual steel fabrication capacity to approximately 120,000 tonnes which includes the already existing plants in the 6th of October industrial park and Algeria.

Dubai turning to coal to meet power demand

MEED reported that Dubai is planning to generate up to 4000 MW of electricity from coal as lack of gas is forcing Gulf countries to turn to alternative energy sources. It is also pushing ahead with plans to import electricity from Iran and is working on developing steam and nuclear plants.

An official at Dubai Electricity & Water Authority said that "It is a very serious option and a plot has already been allocated."

A UAE based industry figure saw that Dubai would not be the best location for the project. The official said that "It would make more sense in Fujairah. The barges would not have to come into the Gulf and they could get the coal there more easily. If they bring the coal barges through to Dubai, they will have to pay high insurance rates and there is a lot of handling involved."

While the costs of building a coal-fired power plant are higher than for a gas plant, DEWA is confident it will be more cost effective in the long term. Gas shortages have forced the authority to run its plants on expensive liquid fuel oil and coal could cut its costs.

Dubai is not the first country in the region to look at coal power. Oman is also considering it. However, DEWA's calculations could be affected by soaring coal prices, which hit a record high of USD 116 a tonne in early February 2008 because of a combination of high demand and tight supply.

ABG Shipyard delivers AHTS vessel to Lamnalco Group

ABG Shipyard Limited informed BSE that it has delivered a new anchor handling tug supply vessel Lamnalco Mallard to the owner UAE based Lamnalco Group.

Lamnalco Mallard is the third vessel to be delivered to Lamnalco in this financial year. ABG Shipyard has so far delivered 8 vessels, including the present one, to Lamnalco Group. Besides, it is building another 6 vessels for the Lamnalco group.

The 53 meter long 90 tonne bollard pull azimuth drive propulsion Lamnalco Mallard vessel is able to carry out anchor handling, towing rescue, offshore supply, transport pipes, fresh water, diesel oil, stores, materials and equipment, move men and materials between platforms and shore, external fire fighting and other related duties.

The vessel is to supply, support the floating production offloading storage vessels, offshore oil and gas field on a 24 hour per day basis.

Saudi firm plans bridge on Red Sea

It is reported that Saudi based Tarek bin Laden Construction is negotiating with Saudi and Yemeni governments about plans for building a 28.5 kilometer long bridge across Mandab Strait on the Red Sea, to link Djibouti in Yemen. The proposed bridge would carry a 6 lane motorway and a railway.

Mr Tarek bin Laden owner of the firm has spent time lobbying politicians in Djibouti and Yemen to accept his proposal to build the bridge across the Mandab Strait, from Djibouti to Yemen's Perim Island. The Yemenis are convinced that the project will be carried out with Saudi and Emirates funds to connect the Arab world to Africa.

Mr Dileita Mohamed Prime Minister of Djibouti said that his government is not actively involved. He added that “The project fell on us from the sky with the proposal by Osama bin Laden's brother, who has a construction company in Saudi Arabia. People are talking about it a lot here and the Yemenis are convinced the project will be carried out with Saudi and Emirates' funds to connect the Arab world to Africa.”

If the bridge were ever constructed, it would be among the worlds longest. The longest existing cross sea bridge is the 32 kilometer Donghai Bridge in China.

Tractebel wins transmission contract in Egypt

Egyptian Electricity Holding Company has awarded the consultancy contract to Belgium's Tractebel Engineering for the development of a master plan for Egypt's power transmission network to meet growing power demand.

The USD 0.8 million projects is funded by the Arab Fund for Economic and Social Development. The master plan will cover the period from 2008-2030.

UAE Central Bank sees economic slowdown in GCC in coming years

UAE news agency WAM quoted Mr Sultan bin Nasser Al Suwaidi governor of the UAE Central Bank as saying that the economic growth in the GCC countries may experience a slowdown in the coming years as compared to the quick pace posted in recent years.

Mr Al Suwaidi said that "The GCC region will not witnessed the past years' boom, fueled by the increase in oil and gas demand. Next years will not see the birth of new China."

He added that "UAE's gross domestic product, which achieved a 9.1% growth in 2007, will drop to 6.6% in 2008, to rise again to 9% in 2009, and then drops to 8.5% during 2010 and 2011."

Iran and Tunisia may setup steel plant jointly

It is reported that the Mr Afif Chelb industry and energy minister of Tunisia and Mr Ali Akbar Mehrabian minister of industries and mines of Iran reviewed expansion of bilateral industrial ties between two countries.

Mr Afif Chelbi who is heading a visiting Tunisian delegation in a meeting with Mr Ali Akbar Mehrabian said automobile, food and construction material industries are some of the appropriate areas for cooperation between Iran and Tunisia. Mr Chelbi said that Tunisia is interested in having an Iranian auto manufacturing plant in Tunisia in which production of Iranian automobiles in Tunisia and exporting them to other countries would be highly profitable for both countries. He added that Iran can also help Tunisia in such other areas as cement, steel and tractor manufacturing industries.

Mr Mehrabian proposed that Iran and Tunisia would do well to invest in a joint steel plant and Mr Chelbi welcomed the proposal and invited his Iranian counterpart to visit Tunisia.

PTT Exploration signs offshore exploration deal with Bahrain

MEED reported that Thailand's PTT Exploration & Production has signed an agreement with Manama for an offshore exploration and production concession in the northwest.

The 3 year concession for Block 2 covers an area of 2,288 square kilometer. TT plans to spend USD 13 million on the project over the next year. It had carried out a geological and geophysical assessment of the block in 2006.

The concession was one of four offshore exploration packages offered by Bahraini in 2007. One of the concessions was withdrawn having received no bids, while the others were awarded to the US Occidental.

PTT operates in 12 countries, including Algeria, Iran, Oman and Egypt. It expects to produce an estimated 223,000 barrels of oil equivalent a day in 2008 up by 24% YoY on 2007.

BAPCO extends deadline for oil refinery bid

MEED reported that Bahrain Petroleum Company has extended the deadline for bids to build a lube base oil refinery at Sitra by a month to the end of March 2008.

Four international contractors including South Korea's Samsung Engineering Company, Spain's TR, Paris based Technip and Japan's JGC Corporation are believed to have been invited to submit bids for the USD 250 million to USD 300 million engineering, procurement and construction contract.

The project calls for the routing of about 12,000 barrels a day of unconverted oil from the existing hydrocracker at the BAPCO refinery to the unit which will convert the feedstock to 400,000 tonnes a year of sulphur free lube base oil, predominantly for export.

The US' Jacobs Engineering is the front end engineering and design contractor.

Kuwait to expand refinery capacity by 2012

Reuters reported that Kuwait is planning to boost the crude processing capacity of its Mina Abdullah refinery by 104,000 barrels per day by mid 2012. The expansion forms part of Kuwait's plans to raise refinery capacity to 1.415 million barrels per day from 930,000 barrels per day.

Mr Nasser Al Shamma manager of technical services at Kuwait National Petroleum Company said that "The expansion will take total crude processing capacity at the plant to 374,000 barrels per day from 270,000 barrels per day. The completion date for the Mina Abdullah expansion has been pushed back from 2011 due to delays in the plans for Kuwait's giant new 615,000 barrels per day Al Zour refinery and now the expansion project is scheduled for completion in June 2012."
Mr Shamma said that a new crude processing unit with capacity of 264,000 barrels per day will be built at Mina Abdullah, while an old crude processing unit with capacity of 80,000 barrels per day will be retired. He added that it also plans to add a diesel producing hydro cracking unit and a desulphurization plant at the plant.

Mr Shamma further added that Fluor Daniel is undertaking the engineering and design study for the expansion, which should be finished by June 2008.

DIC expects USD 15 billion investment in infrastructure

Khaleej Times reported that Dubai Industrial City, a project being developed by Dubai Holding unit Tatweer to create a strong manufacturing sector in the emirate, expects total investments of USD 15 billion in its infrastructure and factories.

Mr Rashid Al Ansari CEO of Dubai Industrial City said that the zone has attracted 430 industrial investors and basic infrastructure work is being expedited to enable investors to start building facilities. Most of the land for industrial use has been leased and 85% of land for commercial buildings has been sold. He added that "This year we will be focused on construction work to turn the plan into a reality."

Dubai Industrial City achieved more than AED 1.5 billion in commercial plot sales of lands for use as schools, shopping centers, hospitals, residential areas, and recreation and entertainment facilities. The investment on buildings, industrial plants and basic infrastructure like roads and utilities is expected to be USD 15 billion.

Spread over 560 million square feet, Dubai Industrial City features six industrial clusters for food and beverage, base metals, mineral products, chemicals, transport equipment and parts, and machinery and mechanical equipment.

Sitindustrie starts 2008 with good orders for pipes

It is reported that Sitindustrie has started 2008 by increasing its market position in the business of stainless steel tube, pipes and fittings for the oil & gas application with two orders in Qatar and Malaysia for a total amount of EUR 16.5 million.

Sitindustrie also said that its UK subsidiary company, Mardale Pipes Plus got a EUR 10.5 million order in Qatar with the customer National Petroleum Construction Co of Abu Dhabi for the supplying of 6 Moly & duplex pipes and fittings for the Al Shaheen Block 5 Development Project operated by Maersk Qatar.

The project consists of the development of the present, area raising the pump capacity to 525,000 bpd from the present 240,000 bpd under a USD 5 billions fast-track project within 2009. The field is about 1006 meter below the seabed. Al-Shaheen will become Qatar’s biggest oilfield, but will also produce associated gas in a big way.

Furthermore Mardale Pipes Plus got another important order with the engineering company Foster Wheeler in the Far East for the supplying of EUR 5.9 million of heavy wall stainless steel pipes & fittings for the Melaka Refinery Project in Malaysia operated by Malaysia Refining Co. The project includes the revamp of a hydrocraker unit and other modifications to the process units and associated off sites and utilities.

Al Anwar divests 31% stake in NAPCO

Al Anwar Holdings SAOG has announced that it has completed the divestment of a 31% stake in Oman’s National Aluminum Products Company at the rate of OMR 0.382 per share in favor of National Investment Funds Company.

With this deal, Al Anwar’s stake in NAPCO now remains at 20%.

Dubai World Trade Centre wins DERA award

Dubai World Trade Centre has been honored as one of the key partners of the Dubai Economic Research Award in a ceremony held under the patronage of Mr Shaikh Hamdan bin Rashid Al Maktoum deputy ruler of Dubai and also minister of finance of UAE.

The award was launched by the department of economic development as part of a wider effort to support joint research partnerships across key industry sectors. Mr Sultan Saeed Al Mansouri UAE minister of economy presented the award.

Dubai World Trade Centre was named as one of the program’s partners based on its ongoing contribution to the UAE’s knowledge economy. As the region’s leading destination for conferences, meetings and exhibitions, DWTC venues have provided an important discussion forum for information-sharing, networking and idea generation.

Mr Helal Saeed Al Marri director general of Dubai World Trade Centre said that “We are honored to receive this recognition for our work as a partner of the Dubai Economic Research Award. DWTC understands the significance of new research in stimulating innovation and driving economic growth and we are proud of our involvement in this initiative. This award is symbolic of our commitment as an organization to contribute continuously towards enabling sector growth aligned with his Highness’s Vision for Dubai 2015.”

DERA has also supported original research into entrepreneurialism in Dubai, the role of small and medium businesses and the changing challenges of the investment climate.

DP World upgrading berthing in Chennai port

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

Terminal management said to Chennai Feeder Operators that they are confident that they will be able to achieve and maintain the productivity if vessels arrive as per their assigned windows.

The operators had earlier imposed a surcharge of USD 100 per TEU which was later withdrawn, as of January 11th 2008, after the port authority assured them of reinstating window berthing and equitable cargo carting schedules. The terminal operator said that it has convened a meeting of the stakeholders tomorrow to review various operational issues.

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

Iran and Morocco ink 5 MoUs on bilateral cooperation

Mehr News Agency reported that Iran and Morocco have signed 5 MoUs on bilateral economic and trade cooperation. Mr Massoud Mir Kazemi Iranian commerce minister Mr Abdul Latif Mazouz Moroccan minister of foreign trade have signed the deals at the end of the 5th session of Iran Morocco joint trade and economic commission which started on February 23rd 2008.

The two ministers also signed four agreements on Tehran Rabat cooperation in the fields of shipping, custom duties, tourism and industrial activities.

Iran and Morocco experienced a growing trade relation during the past couple of years. Latest figures show that the volume of the 2 countries non oil trade exchanges stood at more than USD 14 million in the first 2 quarters of the current Iranian calendar year.

Oman and Brunei sign deal to avoid double taxation

Khaleej Times reported that Oman and Brunei have signed an agreement to avoid double taxation and evasion of income tax.

Mr Ahmed bin Abdulnabi Macki Omani economy minister, who signed the accord with Mr Pehin Dato Lim Jock Seng Brunei’s second minister of foreign affairs, said that it would define the legal framework for bilateral trade relations and pave the way for more cooperation between private and public sectors in the two countries.

The latest deal brings the number of such agreements that Oman has signed with other countries to 27. The two ministers discussed possibilities of joint venture projects, especially in the tourism, industry and energy sectors.

Chinese rebar and wire rod export offers climb further

It is reported that export offers for rebar and wire rod were raised again to reflect the rise in production cost and according to trading sources transactions have been heard at the updated levels.

A Jiangsu based steel producer has raised its rebar quotation to USD 810 per tonne on FOB basis up by around USD 50 per tonne from the level before holiday. Contract prices are at USD 800 to USD 805 per tonne on FOB basis and most shipments go to South East Asia and Middle East. Rebar exports to Europe is said to be not satisfactory despite strong increases in ex works price by local producers.

However, sources in South Korea told Mysteel that Chinese 10mm rebar is being quoted at USD 800 per tonne on CFR basis and most transactions are concluded at USD 775 to USD 785 per tonne on CFR basis. According to Steel Daily, the rise of billet export price probably would drive that of rebar further for shipments to South Korea,

Offer for commercial wire rod has gone up to around USD 840 per tonne on FOB basis up USD 50 to USD 60 per tonne from early February. Steel mills said that customers are bidding at USD 20 to USD 30 per tonne lower and transactions are not quite good.

(Sourced from MySteel.net)

Xinxing to set up iron ore pallet plant in Karnataka

BS reported that Chinese company Xinxing Group has formed a partnership with Indian investors Manasara Investments, Kelchandra Group and another global company Sigma Minmet Ltd to set up a 6 million tonne iron ore pellet plant in Karnataka for an estimated investment of INR 8,735 crore.

Xinxing Group and Sigma Minmet Ltd hold a combined 55% stake in Xindia Steels, the balance is held by the Indian promoters.

The newly formed company Xindia Steels Ltd will set up an iron ore pellet plant in Koppal district in North Karnataka in the first phase. A steel plant of a 2.5 million tonne capacity will be set up in the second phase which will also see the capacity of the pellet plant reaching 6 million tonne. The Koppal project also plans to produce 250,000 tonnes of iron pipes.

Mr Liu Mingzhong chairman of Xinxing Group said “This investment is in line with our strategy to be an active contributor to the emerging Indian steel industry. Xinxing has the products and the capability to produce them locally for the Indian market.”

Mr Alex Huang vice chairman of Xindia Steels Ltd said “There is a demand for the production of steel globally and in India. As per the National Steel Policy, the projected demand is about 200 million tonnes by 2020. We see a tremendous growth opportunity.”

According to Mr Gopi Ramanathan director of Xinidia Steel, the project is expected to provide employment to over 16,000 people in the local community both directly and indirectly over the first and the second phases. He added that “The first phase of the investment will meet the needs of the steel and sponge iron plants. The second phase of investments will bring in Xinxing’s steel technologies. Instead of exporting raw materials, Xindia will export finished products.”

CISA finds Canadian ruling on AD on seamless pipe unfair

The China Iron and Steel Association said that Canada's decision to impose anti-dumping duties on steel seamless casing pipe from China is unfair and unacceptable. CISA said that "The CBSA decision is unfair on Chinese steel manufacturers and the result of the investigation is unfounded,”

As per report, the case could lead to a monopoly situation. A CISA source said that "And once the sanction is imposed, it could set a bad example for other countries.”

An officials from Tianjin Pipe Group Corp, the largest seamless casing maker in China, said that CBSA deemed China's steel seamless casing sector non market oriented and claimed the value of products is based on an unauthorized price from a metals magazine,

A Canada Border Services Agency probe concluded earlier this month that Chinese steel seamless casing pipe manufacturers are subsidized by the government and are dumping products in the Canadian market. It was Canada's first anti dumping and countervailing investigation into Chinese steel products. The Canadian International Trade Tribunal is yet to make a final decision on whether to impose anti dumping duties.

Steel company Tenaris Algoma Tubes, which initiated the complaint, said steel products imported from China had harmed Canada's domestic market. But local industry sources said the market downturn is not due to Chinese products but other factors.

According to Canadian Customs, China exported 68,700 tonnes of the investigated products in 2006, valued at USD 100 million.

Chinese coal output in January up by 3.2% YoY

China has produced 177.63 million tonnes of raw coal in January 2008 up by 3.2% YoY.

Major state owned coal mines accounted for 100.29 million tonnes or 56.5% up by 5.2% YoY, coal mines under the administration of local governments made up 24.72 million tonnes up by 1.8% YoY and township mines produced 52.61 million tonnes up by 0.3% YoY.

The growth was mainly due to government orders to transport thermal coal as part of disaster relief efforts following severe winter weather beginning mid January.

China exported 4.56 million tonnes of coal in January 2008 down by 1.4% YoY.

The report said that 110.22 million tonnes of coal was transported by train up by 7.7% YoY. Major harbors handled a record 42.77 million tonnes of coal up by 8.4% YoY.

Tonghua orders equipments for HSM and CRM

Siemens Metals Technologies announced that it has received orders to supply equipment to the steel producer Tonghua in the north east of China. For new hot strip mill Siemens will supply the complete automation and for a cold mill the main drives and the automation. The two projects are scheduled for completion by end of 2009.

For the hot strip mill, Siemens will supply the automation ranging from the furnace exit side to the down coilers and include all technological controls and process models which are required for mill setup, short stroke and width control, profile and flatness control as well the accurate cooling of the steel strip to enable the production of modern steel grades.

For the cold mill, Siemens will supply the technology essential for operating of the 6 high mill stands as well as main drives and automation. A central feature will be the thickness control system based on an advanced mass flow concept for reaching the tight tolerances required by customers in the automotive and household industry.

Both mills will be equipped on the basis of the successful “Siroll” concept. Its modular design and the high degree of standardization ensures short start up times and a safe and maintenance friendly operation and will encompass technological control systems along with all the process automation including a pickling model and the rolling process models. Siemens is also supervising assembly and installation of all the components in addition to commissioning and will train the customer's personnel. The mechanical and electrical equipment will be supplied by Chinese firms. Siemens components and systems will be widely used therein.

In Jilin province, the state owned Tonghua Iron and Steel Group operate a production complex with an annual capacity of around four million tonnes of steel. The company has mainly produced structural steel as well as special steels for a wide variety of applications. Within the framework of an investment program for expansion of the production range to include high quality flat products, a new hot galvanizing line is currently being built, for which Siemens is already supplying special equipment. In the course of the completion of the flat production chain, Tonghua is going to build a 1600mm hot strip mill with a scheduled capacity of 1.5 million tonnes per year and a reversing two stand cold mill with 800,000 tonnes per year capacity.

China claims of 60.7 billion tonnes of proven iron ore reserves

Xinhua reported that China has 60.7 billion tonnes of proven iron ore reserves.

Mr Wang Min vice minister of land and resources of China said unproven iron ore reserves were estimated to stand at more than 100 billion tonnes.

He said in 2006 and 2007, the country discovered 187 iron ore deposits with proven reserves of 3.2 billion tonnes.

Mr Wang said investment in iron ore exploration had increased rapidly in the past few years to meet the rising demand for iron ore. He said the spending totaled CNY 2.3 billion from 2004 to 2007 more than five times higher than in the 15 years to 2003. The country's demand for iron ore would remain high in the long term.

According to the China Iron and Steel Association China produced about 490 million tonnes of crude steel last year 15.66% higher than in 2006. Meanwhile, it imported 383 million tonnes of iron ore up by 17.4%.

3 dead and 3 trapped in coal mine flood in Shanxi

Xinhua reported that three people died and three were trapped following a coal mine flood over the weekend in the coal rich northern province of Shanxi.

According to Taiyuan Coal Gasification Corporation a state owned firm that owns the mine rescuers found three bodies on Tuesday night.

The corporation said the flood occurred at about 8:20 PM on Sunday at the Donghe Coal Mine and trapped eight miners. Two were rescued and three were found dead. The remaining three are still believed to be trapped. Rescuers restored the ventilation system on Monday and have been pumping out water.

Local coal mine officials are investigating the cause of the accident.

Chinese province wise crude steel production in 2007

China produced 489.241 million tonnes of crude steel in 2007 up by 15.7% YoY as compared to 422.853 million tonnes in 2006.

Hebei took the first spot with 107.064 million tonnes accounting for 21.9% of China’s total crude steel production. Top 5 provinces accounted for 54.1% share.

Province wise detail is as under

In million tonnes

(Sourced from MySteel.net)

Ansteel new plate plant to be put into production this year

It is reported that Mr Yang Yongfang the secretary of the party committee of Ansteel group said that Angang’s new steel plant with annual production of 6.5 million tonnes which is located in Bohai Bay will be formally put into production later this year

As per report, the total investment of Angang’s new steel plant is CNY 30 billion, an area of 8.3 square kilometers, the annual production capacity for 6.5 million tonnes steel including 2 million tonnes of heavy plate and 4.5 million tonnes of hot rolled plates.

At present, the main sintering plant has been completed and is being installed equipment, four coke ovens with an annual production of 2.55 million tonnes also have been constructed, two blast furnaces of 111.4 meters high have almost been completed and the world’s largest specification 5500mm wide plate mill has been installed.

After the completion of this project it will produce much need shipbuilding plates, naval vessels plates, bridge plates, pipelines and other high end plates used in cars and home appliances.

Taiyuan Steel hikes March price for medium plate

It is reported that Taiyuan Steel recently published its medium plate price for March 2008 productions. Prices are raised by CNY 500 per tonne from February prices.

Q235 14mm to 20mm is quoted at CNY 4810 per tonne.

Prices listed above are exclusive of 17% VAT effective as of February 25th 2008.

Jiangsu Dajiang orders annealing plant from LOI Italimpianti

It is reported that Chinese company Jiangsu Dajiang Metal Materials Company Limited of Jiangyin City in Jiangsu Province has awarded a contract for the supply of an HPH® Bell Type Annealing Plant for the annealing of low alloy CR steel strip coils to LOI Thermprocess GmbH an LOI Italimpianti company. Commissioning is scheduled for March 2009.

The new HPH® plant is to consist of 11 bases, 6 heating hoods and 6 cooling hoods with water spray cooling systems. The plant will be designed for maximum stack weights of 120 tonnes with maximum outside coil diameters of 2000 mm and max stack heights of 5300 mm. Steel grades from CQ to DDQ and micro alloyed steels will be treated. The new plant is to be equipped with a Siemens S7 300 PLC control system and the advanced ProView® HMI system.

LOI Italimpianti is a market leader for industrial furnaces for metals. LOI Italimpianti is a company of the TENOVA Group formerly Techint Technologies. Tenova develops and produces leading technologies, products and services for the metals and mining industries. Tenova is near to the customer through a network of 20 companies in 14 countries.

Baosteel and Jiannanchun team up for ferrochrome purchase

It is reported that Baosteel Group has clinched a three year cooperation agreement with the economic and trade company of Jiannanchun Group and the former has ordered 50,000 tonnes high carbon ferrochrome with the Sichuan based group this year and plan to expand chrome ore purchase in Sichuan region.

According to the report, the Sichuan based group is engaged in metallurgy and tourism businesses apart from its well known alcoholic drinks. The economic and trade company is a holding company under the group, in charge of purchase of chrome ore or other metallurgical materials. The group has other two plants doing metallurgy with yearly output of 100,000 tonnes.

Baosteel source said it buys 65% of desired high carbon ferrochrome at home and 35% from abroad while Sichuan Province has provided nearly a half of its procurement. Baosteel began making stainless steel from 2004 and expected output to hit 1.35 million tonnes in 2008, requiring 450,000 tonnes high carbon ferrochrome as feed.

(Sourced from MySteel.net)

Chihong Zinc resumes production after snow

Reuters reported that Chihong Zinc and Germanium, a major Chinese producer of zinc and lead, has resumed production at one of its smelters following a 12 day halt due to bad weather.

The report said Chihong resumed the zinc and lead production at the city of Qujing in southwestern China's Yunnan province recently as power was restored. It suspended production on February 11th 2008 after heavy snows hit the area and damaged the power grid.

Chinese manufacturers have been resuming production interrupted by heavy snows that blanketed much of the country's east and south between late January and early February. Jiangxi Copper China top integrated copper producer has also resumed full production at its mines in eastern China's Jiangxi province.

Chinese steel and cement makers readying for emission norms

It is reported that China, the world's second biggest emitter of carbon dioxide, is preparing its steel and cement industries for potential greenhouse gas limits before a new global climate agreement starting in 2013.

Mr Tom Luckock an associate at Norton Rose in Beijing said that steel and cement factories in the Asian nation are no longer entering agreements to sell certified emission reduction credits beyond 2012. He said that China is preparing for all possibilities as it takes part in United Nations sponsored talks to set climate protection limits. He added that sellers are now only offering first right of refusal agreements at most.

London research group New Carbon Finance said demand for carbon credits would probably surge more than fourfold under emission reduction rules being considered by lawmakers around the world. China is the biggest supplier of CERs. Demand in 2013 for CERs may rise to the equivalent of 2.1 billion tonnes of carbon dioxide with more than half of that coming from the US.

According to the latest figures from the International Energy Agency demand will be about 500 million tonnes a year. The US is the biggest emitter of carbon dioxide from fuel consumption.

Shenhua to ensure overseas coal orders

It is reported that China Shenhua Energy Company Limited will completely implement its coal supply contracts with overseas clients on the basis of coal supply for domestic power generation agreements.

An insider from Shenhua Energy said, the company plans to guarantee its stable coal supply to China's power plants and long term partners via production expansion. On the other hand it will not abandon the orders from overseas territories and countries such as Taiwan, Hong Kong, Japan and South Korea.

Shenhua Energy produced about 14.5 million tonnes of commercial coal in January 2008 and sold 18.8 million tonnes of coal up by 10.7% YoY and 14.6% YoY respectively. Meanwhile, 2.4 million tonnes of coal were exported with a 14.3% growth YoY.

Recently, Shenhua Energy announced that it intended to produce 20.2 million tonnes of coal in February 2008 increasing 12% from the prior month.

Coal and power supplies returning to normal in China

It is reported that the pressure on power and coal supplies strained by the recent snowstorms is easing even as reconstruction speeds up in disaster hit regions.

Mr Huang Yi spokesman for the State Administration of Work Safety said Coal reserves at power plants under the State Grid Corporation of China have reached 27.58 million tonnes which is sufficient for more than 14 days. He said that "During the Lunar New Year festival, 64% of the country's coal mines with 96.7% of state owned large mines in this group had remained at production capacity. This helped boost national reserves to the current 36 million tonnes, the highest in recent years."

He added that "This is proof that State owned large mines, instead of collieries should be at the backbone of a stable and safe supply of coal in China."

Mr Huang reiterated the SAWS position th