February, 05 2008
SAIL commences golden jubilee celebration titled Antaragni
The celebrations were inaugurated by Mr Ram Vilas Paswan union minister for chemicals & fertilizers and steel by lighting a symbolic torch to denote the first hot metal production at Rourkela Steel Plant on February 3rd 1959 and at Bhilai Steel Plant the following day. India's first President, Dr. Rajendra Prasad, had dedicated the two blast furnaces to the nation on the respective days.
Mr Paswan felicitated five former chairmen of SAIL who were present on the occasion including Mr RP Billimoria, Dr KC Khanna, Dr SR Jain, Mr Arvind Pande and Mr VS Jain. Mr Paswan also felicitated Mr B Mohanty, Mr Kailash Goyal and Mr Gopinath Panda, three former employees of erstwhile Hindustan Steel Limited, now SAIL, who were part of iron production teams in the first two integrated steel plants.
Mr. Paswan also unveiled a specially designed logo to mark the year long celebrations and released a commemorative book pictorially archiving the “Perfect past, positive present and promising future” of SAIL.
Mr Paswan commended the resilient spirit of the SAIL workforce that had withstood the various changes of the past five decades. Noting that the quality of SAIL steel was at par with the best in the world, he said that it was a myth that efficiency and competitiveness were attributes meant for the private sector alone. He said "The contribution of our public sector companies like SAIL to the national economy can be seen everywhere including in the area of corporate social responsibility.”
Mr Paswan urged SAIL to complete its modernization & expansion program on schedule in order to help take the country closer to the vision of becoming the second largest steel producer in the world.
Mr SK Roongta chairman of SAIL said that hot metal production at Rourkela and Bhilai marked the beginning of steel plant operations in the public sector in independent India, thus laying the industrial base for the country as envisioned by our first Prime Minister Pandit Jawaharlal Nehru.
Describing the contribution of all those who went to altogether undeveloped Greenfield areas and worked in most difficult conditions as unforgettable, he said they had been the inspiration for all SAIL employees who have helped the company to grow steadily from a modest beginning to a position of producing over 15 million tonnes of hot metal annually today.
He said that "SAIL is determined not only to enhance volume of production but also to produce newer varieties of steel in different grades which are required for the development of the country.”
World renowned flautist Pandit Hari Prasad Chaurasia performed Antaragni, a special dedication to the “Fire within the steel workforce” on the occasion.
RINL eying Bird Group to secure iron ore mines of OMDC
Sify.com reported that Rashtriya Ispat Nigam has proposed to acquire Bird Group of Companies including its Orissa Mining Development Corporation, to secure iron ore reserves for expansion and is willing to invest INR 500 crore to revamp OMDC's operations.
The report cited Mr PK Bishnoi CMD of RINL as saying that "We do not have captive mines and are forced to procure ore from the market at sky high prices. So, we have proposed to take over the entire BGC, including OMDC, which has iron ore reserves of 130 million tonnes to meet our growing production needs.”
He said steelmakers with iron ore security have a better turnover, while companies like his take a serious hit on their turnover. He said "I have to buy iron ore from the market at around INR 3,000 per tonne, which is a pretty high price. RINL's profits could have been higher by INR 1,000 crore, if we had captive mines.”
Mr Bishnoi said RINL is willing to invest about INR 500 crore to overhaul OMDC, which is not in good shape. He added RINL would like to use its expertise in prospecting more fields to figure out additional ore reserves in OMDC.
Bird Group of Companies has seven companies in its fold
1. OMDC
2. Bisra Stone Lime Company Ltd
3. Karanpura Development Company Ltd
4. Scott and Saxby Ltd
5. Eastern Investments Ltd
6. Burrakur Coal Company Ltd
7. Borrea Coal Company Ltd.
OMDC, which was incorporated in 1918, is one of the oldest iron ore mining companies. It has mines around Barbil town in Orissa.
MSL to invest in new steel plant
Domain-b.com, quoting a group official, reported that Indian seamless steel pipes maker Maharashtra Seamless Limited will invest INR 1,500 crore to INR 2,000 crore to set up a new plant in Maharashtra as part of its backward integration plan.
The report quoted Mr Anil Jain CFO of DP Jindal Group as saying that MSL plans to increase pipes capacity to 500,000 tonnes per annum from the current 350,000 tonnes through de bottlenecking and addition of balancing equipment.
As per report, MSL will relocate a seamless pipes plant from Romania, acquired in December 2007, at the same site as the new plant.
The report added that MSL is also planning to have own raw material sources so that there is less pressure on margins.
As per report the expansion would be funded through equity, internal accruals and debt.
Shyam Group inks pact for steel and power plant in WB
It is reported that Kolkata based Shyam Group’s Shyam SEL Ltd has inked a MoU with West Bengal Industrial Development Corp Ltd to set up a 1.1 million tonne integrated steel plant and a 1,000MW power plant at an investment of around INR 9,900 crore. The project, spread over 1,500 acres, will come up at Jamuria in Burdwan district of West Bengal.
Mr Bhushan Agarwal vice MD of Shyam SEL Ltd said that his plant would be the first to take off among all the steel projects proposed in the state so far. He said “We will commission a 200,000 tonne stainless steel and a 250MW power plant by the middle of the next year.” As per report, Shyam SEL will invest INR 2,000 crore in the first phase.
Mr Agrwal said that the capacity of the steel plant will be around 0.2 million tonne along with 0.2 million tonne of ductile iron pipe, 0.2 million tonne of black tubes, 0.5 million tonne of API, 0.25 million tonne for auto and special steel and the rest for power equipment. He said "What is unique about the project is that we will manufacture sections for transmission to the power grid. There are very few Companies in that.”
He said that 35% to 40% of the land for the project is with the state government, which could be leased out to the company within three to four months. The West Bengal Industrial Development Corporation will procure the rest of the land and lease it out to Shyam SEL.
Shyam SEL will source coal for the production of steel and power through a block allotted for the project by the West Bengal Mineral Development and Trading Corporation. It has already given a contract to a Chinese company for the sinter plant to make steel from iron ore fines.
TATA Steel opens steeljunction outlet at Behala
TATA Steel has opened up its fourth retail outlet steeljunction at Behala in West Bengal. This is a smaller format of the store opened under steeljunction express identity. The store would be run on a franchisee model and is spread over an area of around 1600 square feet.
The store was inaugurated by Mr Rajeev Singhal chief marketing & sales for long products. Other company officials including Mr Sarvesh Kumar chief of retail initiatives, Mr. Rajiv Soni head of marketing communications and Mr Kunal Kant senior manager retail were also present on the occasion.
The steeljunction store will retail all the products made up of steel. The product categories that will be sold through this outlet will include furniture, utensils, life style products, safes, almirahs and hardware items. All the TATA Steel brands like TATA Shaktee corrugated sheets, TATA pipes and TATA Agrico would also be retailed through this outlet.
The objective of TATASteel venturing into the organized retail is to change the perception of people towards steel and to showcase steel as providing useful products that touch people's life. The first store was opened up in Kolkata and TATA Steel is planning to open 5 more stores by March 2008.
Ramsarup Industries hikes steel wire prices
Kolkata based Indian wire major Ramsarup Industries Limited announced that it has raised prices of steel wires by INR 3,500 per tonne to INR 4,000 per tonne with immediate effect.
Mukund Steel Q3 2007 net profit dips by 19% YoY
Mukund Steel has posted net profit of INR 19.06 crore in October to December 2007 quarter down by 19.65% YoY as against INR 23.72 crore in October to December 2006 quarter. Its total turnover was up marginally at INR 552 crore as against INR 532 crore.
Its steel division clocked revenues of INR 480 crore in October to December 2007 quarter up by 5.36% YoY as against INR 456 crore in October to December 2006 quarter and the industrial machinery division posted a 30% YoY increase in revenue at INR 64 crore as against INR 49 crore.
MATS 2008 to begin at Jamshedpur
It is reported that an international conference on steel Microstructure and Texture of Steel - MATS-2008 will begin at Jamshedpur today. MATS-2008 is being organized by the Indian Institute of Metals and TATA Steel.
Mr Debashis Bhattacharjee Chief of R&D and Scientific Services of TATA Steel told newsmen that the director of National Metallurgical Laboratories would inaugurate the conference.
The conference is likely to be attended by participants from the US, the UK, Germany, France, Japan and Korea. A large number of post-graduate students from IITs, IISC, Katholeike University of Leuven of Belgium, GIFT of South Korea, University of METZ of France, RWTH AACHEN of Germany and Delft University of the Netherlands will present their technical work.
SC directs Orissa over Tangarpada chrome mines allocation
IANS reported that Supreme Court has cancelled Jindal Steel’s deal with the Industrial Development Corporation of Orissa Ltd to set up a joint venture company for exploring Tangarpada chrome mines in Dhenkanal district of Orissa and to invite fresh and revised technical and financial bids from the three parties, who had quoted earlier.
Partly setting aside the Orissa High Court order, a bench of Justices Arijit Pasayat and P Sathasivam, ordered that “The appropriate and authorized committee of Idcol shall consider the technical bids and the financial bids, keeping in view the parameters of the advertisement, the NIT and the best interest of the state.”
The bench asked the government to take a final decision on awarding the contract by June 2008. The bench granted freedom to the state government to negotiate with the parties in the best interest of the state including generation of revenue and its overall development.
The apex court also scrapped certain observations made by HC regarding Jindal Steel. “Certain conclusions of HC are clearly indefensible The observations relating to favoritism, so far as Jindal is concerned, are without any foundation.”
The others bidders, who challenged the IDCOL Jindal JV are TATA Steel and VISA Industries Limited.
The Orissa government had granted lease of the Tangarpada mines in Dhenkanal district to IDCOL, which had subsequently invited bids for a joint venture partner to develop the chrome mines and take up mineral exploration, mining, mineral processing, value addition and marketing of the product.
Observing that the Idcol authorities never considered the effect of the incentives as claimed by Jindal on the state exchequer and public interest, HC said “the state government also acted in a matter of granting its approval to Jindal’s bid in an equally lackadaisical manner, if not deliberately, with a view to showing undue favor to Jindal Strips.”
Goa NGO seeks review of iron ore mining licenses
DNA India reported that Goa Foundation, a non governmental organization, has sought a review of 70 odd licenses given for iron ore mining in the state.
Mr Claude Alvares director of the foundation at a press conference said that these mines and a large number of industries were doing business in Goa for years despite not having requisite clearances from the ministry of environment and forests.
He said that “After the Supreme Court passed an order closing down these mines, the leaseholders approached the ministry of environment and forests for environment clearances. However, rather than use the opportunity to enforce its environmental regulations and impose conditions on these mining activities, the ministry sought to support the mining lobby by speeding up the process of clearances.”
MOIL to invest INR 350 crore to raise production capacity
It is reported that Manganese Ore India limited will invest about INR 350 crore during the ongoing 11th Plan period to ramp up its production capacity to 1.5 million tonnes in the next 5 years.
Mr KL Mehrotra CMD of MOIL said that "We will invest about INR 350 crore during the 11th Plan period to increase our production to 1.5 million tonnes and will strive to become INR 1,500 crore company by 2010."
MOIL is executing various capacity expansion projects simultaneously, including a 5 MW wind farm in Madhya Pradesh and a 500,00 tonne beneficiation plant at Balaghat. Besides, it has tied up with SAIL to produce ferro alloys at the steel giant's Bhilai plant at a capital outlay of INR 225 crore. The JV company along with SAIL would be incorporated with a debt equity ratio of 1:1. Besides, MOIL was also planning to set up a sintering plant at Balaghat at a cost of INR 18 crore. It has earmarked INR 3 crore towards corporate social responsibility activities for the current fiscal.
MOIL, which enjoys Miniratna 1 status, has registered profit before tax of INR 311.12 crore during April to December 2007 period. It achieved a turnover of INR 491.90 as against INR 294.63 crore. Profit after tax shot up by 156% YoY to INR 205.50 crore as against INR 80.18 crore.
Orissa & MMTC asked to agree on NINL valuation
PTI last week reported that union steel ministry has sought the consent of Orissa government and MMTC Limited on the valuation of Nilachal Ispat Nigam Limited, which is proposed to be merged with Steel Authority of India Limited.
The report cited a state government official as saying that "The steel ministry has requested MMTC and Orissa government to give their consent to the Industrial Development Bank of India's valuation report."
It may be noted that Orissa government had earlier shot down the report saying that valuation of INR 27 per share of NINL was untenable as it was on the lower side and asked for revaluation of the company. It argued that IDBI did not factor in the iron ore mines granted to NINL while making the evaluation.
Orissa holds a 22% stake in NINL through Industrial Investment Promotion Corporation of Orissa and 4% through the Orissa Mining Corporation. While MMTC is the major shareholder, MECON and other equipment suppliers have some stake in the steelmaker.
Judge inspects controversial iron ore mining area in AP
It is reported that Mr K Gaddenna district Judge has inspected the controversial mining area between the mining leases belonging to Bellary Iron Ore Company and Obulapuram Mining Company in Siddapuram village limits in Hirehal mandal in Andhra Pradesh.
He visited the mines after the Bellary Iron Ore Company had filed a petition in the High Court alleging that the Obulapuram Mining Company had encroached upon its mining zone, forcibly extracted the ore and diverted a huge quantity of it. Accompanied by district forest officer Mr Kallol Biswas and Mr A Satyanarayana assistant director mines & geology department, Mr Gaddenna visited the area as per the directions of the High Court.
Mr Biswas and Mr Satyanarayana said that they would submit a report to the High Court soon. The survey to demarcate the boundaries between the two companies would be completed next week to end the dispute. They added that the survey would be conducted based on the maps prepared in 1964 and 1988 and would examine all the maps available with them. They said that they had directed the two companies 8 months ago to fix the boundaries between two companies but they did not heed it.
Indian Railway Golden Rock workshop to manufacture SS wagons
Mr V Carmelus chief mechanical engineer at Southern Railway said that stainless steel wagon production, the first of its kind in the history of Indian Railways, has been undertaken at the Golden Rock Railway Workshop.
He added that the manufacture of 240 stainless steel wagons at a cost of INR 65 crore would be completed by April 1st 2008 and the first rake of 45 wagons would be dispatched in the current financial year.
The Golden Rock Railway Workshop had completed 320 BLC order for INR 43 crore, 470 BLC order for INR 70 crore and 990 BLC order for INR 201 crore and received a fresh order for 1125 container flat wagons at an estimated cost of INR 281 crore from CONCOR.
Jain Energy to set up 1000 MW thermal power plant at Balpur
BL reported that Kolkata based Jain Energy has entered into a MoU with the Chattisgarh government for setting up a 1,000 MW coal based thermal power plant at Balpur of Janjgir Champa district in Chattisgrah.
The INR 5,000 crore plant will be spread over 1,000 acres and is expected to be commissioned in 2011.
Apart from the thermal project, Jain Group is also exploring opportunities in hydro and biomass based power generation. Jain Energy has also submitted an expression of interest for hydro power projects in Arunachal Pradesh and Bhutan.
Indian Railways exports diesel multiple unit coaches to Angola
It is reported that Indian Railways has dispatched 15 diesel multiple units coaches to Angola. The DMU coaches were manufactured by Integral Coach Factory and exported to Angola by RITES.
Mr R Velu union state railway minister said that manufacture and dispatch of these DMUs and the self propelled accident relief train mark the successful completion of various on going projects undertaken by RITES in Angola which include technical assistance, up gradation of maintenance workshops and earlier export of passenger coaches manufactured in ICF and Diesel locomotives manufactured in Diesel Locomotive Works.
ICF has so far manufactured 230 varieties of different designs of coaches and is still venturing into new designs and assimilating the latest technology available to provide the best comfort to the passengers.
RITES, which exported the coaches, has worked in about 60 countries, including Myanmar, Vietnam, Mozambique, Tanzania, Ghana, Zambia, Bangladesh, Sri Lanka, Sudan, Senegal, Mali and Angola.
5 bids for Vizhinjam terminal project
In response to the global tender floated for identifying the promoter for the proposed international container trans shipment terminal at Vizhinjam in Kerala, 5 consortia have submitted bids as the deadline expired on January 31st 2008.
The five consortia are
1. DS Constructions in association with Apollo Enterprises Limited and KGL Ports International
2. Nagarjuna Construction Company, Maytas and OPM Singapore
3. Videocon Industries Limited, Gammon India, Gammon Infra and Sical Logistics
4. Lanco Infratech Limited, Lanco Power and Pembinan Redzai Sdn Bdh
5. Zoom Developers, Portia Management Services and Peter Fraenkael and Partners
Mr M Vijayakumar state minister for ports said that the project, estimated to cost INR 5,348 crore, would be implemented on a build operate transfer basis. He added that efforts would be made to implement and commission the project at the shortest time possible.
The Kerala government had held a global investors’ meet for the project in April 2007, which was attended by 43 companies. Later, as many as 33 companies bought the request for proposal after the global tender was floated in July 2007.
Nagaland signs MoU with Trident for mine exploration
It is reported that Nagaland government will take up exploration work in conjunction with Trident Mineral Resources Private Limited and has signed a MoU to undertake exploration work at Naga Ophiolite belt. Mr HK Chishi chief of the directorate of geology & mining of Nagaland and Mr VN Vasudev director of Trident Limited has singed the MoU.
Both parties agreed to undertake exploration, prospecting and feasibility studies with the objective to improve the state's economic condition.
The Naga Ophiolite structure is said to be the host rock of many minerals, including gold, chromium, nickel, copper and platinum group of elements, among others.
Mumbai metro project to begin by June 2008
It is reported that work on Mumbai Metropolitan Region Development Authority's Charkop Bandra Mankhurd metro rail project is likely to begin by June 2008.
MMRDA is presently carrying out technical evaluations and will invite bids there after. The proposed line of the metro project, estimated to cost INR 6,000 crore, is to be built between western suburb Charkop and eastern Mankhurd.
MMRDA is also considering building the third line between Colaba in Mumbai and Bandra without any private participation since the viability gap funding for the project is very high. The cost of the corridor is estimated at about INR 12,000 crore which will make the viability gap funding very high at about INR 8,800 crore.
Asian coal prices reach record levels due to supply crunch
Reuters reported that coal prices jumped to a fresh record of more than AUD 115 a tonne at Australia's Newcastle port, as a global supply crunch worsened after a series of supply disruptions in key coal exporting nations.
China the world's largest producer and consumer of coal said on January 25th 2008 that it would halt exports in February and March after the nation's worse snowstorms in 50 years disrupted output and caused unprecedented power shortages across the country. News of China's supply halt was immediately followed by severe power shortages in South Africa, forcing miners such as Anglo American Plc to shut their mines.
Adding to a worsening a global squeeze, several Australian producers last month declared force majeure on immediate coal shipments due to recent heavy rain and floods in the key mining state of Queensland.
According to the globalCOAL's NEWC weekly index showed in the week ended February 1st 2008, based on FOB prices loaded at Newcastle port, thermal coal prices jumped by AUD 23.09 from a week earlier to AUD 116.44 per tonne.
Mr Mark Pervan a resource analyst at the Australia & New Zealand Banking Group said that "Spot coal prices will continue to rise. It doesn't look like there are many bearish factors in sight to push prices down.”
Ensham Resources Pty Ltd and BHP Billiton Mitsubishi Alliance were among the four Australian miners that have issued force majeure on shipments after heavy rains flooded their mines.
Some analysts estimated that the recent supply disruptions in Australia, China and South Africa could have removed about 5 million tonnes of thermal coal from the export market in 2008.
A worsening coal shortage have driven coal prices up by 21% so far this year. Indonesian coal exporter Bumi Resources Ltd BUMI.JK said last week prices could reach AUD 150 a tonne FOB because of the tight global supply.
ArcelorMittal acquires remaining 50% stake of Laminadora Costarricense and Trefileria Colima
ArcelorMittal has announced that it has successfully acquired the remaining 50% stake of Laminadora Costarricense SA and Trefileria Colima SA from Clarion Del Norte. The other 50% stake is already owned by ArcelorMittal Brasil.
Laminadora Costarricense SA has a rolled products capacity of 400,000 tonnes per annum of rebars and merchant bar quality, while Trefileria Colima SA has a wire products capacity of 60,000 tonnes per annum. Both entities employ around 400 people and mainly serve the construction market in Central America and the Caribbean.
Corus announces investment at Port Talbot steelworks
Corus Strip Products UK has announced a GBP 60 million investment into energy management technology at Port Talbot steelworks. The investment will materially reduce carbon dioxide emissions at the site through the reuse of gas generated inside the basic oxygen steel plant. This investment is Port Talbot’s largest since Corus’ acquisition by TATA Steel in April 2007.
According to Environment Agency Wales, Port Talbot produces more carbon dioxide than any other plant in Wales except Aberthaw power station in the Vale of Glamorgan.
Mr Robert Bizzell acting MD of Port Talbot "This is a significant vote of confidence by the Corus board and also by our new owners. This investment will play a significant part in creating a sustainable steel industry here in Wales."
Mr David Ferris chairman of Port Talbot said that "Not only is this great news for employees at the works, but there are great advantages for the community and the environment."
Port Talbot steelworks’ current demand for energy is about 140 MW, about half of which is internally generated. Corus already recovers process gas produced in Port Talbot steelworks’ coke ovens and the blast furnaces. This gas is used to generate heat and power, which contributes to the energy requirement for the whole plant. Reducing Port Talbot steelworks’ external energy requirements makes a significant contribution to reducing the future energy requirement for South Wales in general.
Corus Strip Products UK has invested over GBP 400 million in the strip products plant in Port Talbot, Llanwern and Pontarddulais since 2002. It directly employs 5,300 men and women in South Wales.
Lion Group to invests USD 500 million in steel plant
It is reported that Lion Diversified Holdings Bhd will be investing USD 500 million to build an iron making facility, which is expected to increase the company’s revenue by 60% by end 2009.
As per report the company, through subsidiary Apex Gem Sdn Bhd signed an engineering, procurement, construction and commissioning contract with Wisdri Engineering & Research Inc Ltd of China to undertake an integrated blast furnace project at Banting in Selangor.
Mr Tan Sri William Cheng chairman & CEO of Lion group said that the EPCC contract was valued at USD 165 million for the supply of plant and machinery for the blast furnace, with a production capacity of 2.5 million tonnes a year. He added that “The blast furnace would produce liquid hot metal to be used as feedstock for Lion’s steel making plants.”
Mr Cheng said that the hot metal would help replace imported scrap as raw material and reduce the reliance on scrap metal as the international scrap price had soared to a record high of USD 500 per tonne. He added that “By using hot metal from iron ore fines, our steel making operations will be able to produce high quality and higher grade steel at a substantially lower cost.”
Mr Cheng said he expected at least a 12% decrease in production cost, but it would be dependent on the prices of scrap, iron ore and coal as well. He added that “Using the hot metal from the blast furnace will help improve our productivity and increase our steel making capacity at the Banting complex from 3.2 million to five million tonnes adding that currently the group exported 30% of its steel overseas.”
Mr Cheng said that “The contract for the other plant facilities such as the dedicated jetty, raw material yard, sinter plant, coke oven and pellet plant would be finalized by mid March to enable the entire iron making project to be ready within 18 months. The estimated cost for the entire iron-making project is about USD 500 million.” It added that the company said it would fund the plant using internally generated funds or borrowings or both.
Vale Xstrata tie up - Merrill Lynch quits Vale
Financial Times reported that Brazil's Vale has fired Merrill Lynch & Co Inc as one of two lead advisers on a potential USD 90 billion takeover bid for Xstrata after Merrill decided not to help finance the deal.
The newspaper quoting people close to the situation reported that the investment bank was told by Vale it would lose its advisory role in the takeover if it did not commit to helping finance the transaction. It said Merrill Lynch had concluded that the terms of the financing were not economically feasible for either the bank's or Vale's shareholders.
The Brazilian group announced last month it was in talks with Swiss based miner Xstrata and said it had been in discussions with several banks about the financing. However, many banks are involved in BHP Billiton's hostile bid for Rio Tinto and do not have the capacity to finance two large cash deals.
The report said that so far, Vale is believed to have secured financing from HSBC, Lehman Brothers, Banco Santander, Calyon, Royal Bank of Scotland and BNP Paribas.
The report said Merrill Lynch declined to comment while Vale could not be reached.
Rautaruukki to deliver the foundation frames for Vantaa Airport
It is reported that Rautaruukki is to deliver the foundation steel frame and façade structures for maintenance and office building at Helsinki Vantaa Airport. The developer and owner is E-Pn Lentoasemapalvelu Oy and the facilities will be used by Finncomm Airlines. The project will be the first application of the rock foundation system, Ruukki’s own innovation intended to accelerate the construction process of buildings founded on a rock base.
Construction will start this spring and Ruukki’s deliveries will be completed in September 2008. The new maintenance and office building will be 16 meters high and cover a total area of 10,700 square meters of which 6,000 square meters are intended for aircraft and 4,700 square meters for offices. Ruukki’s delivery includes design and installation of the structures.
Mr Heikki Pakari Chairman of E-Pn Lentoasemapalvelu Oy’s Board of Directors said “Ruukki’s quick and efficient design, manufacturing and installation methods will significantly shorten the construction schedule. It will decrease the number of subcontractors and thus also the risks associated with subcontracting. Compared with alternative solutions, we now have better chances of keeping the tight project schedule.”
Mr Saku Sipola president of Ruukki Construction said “Our new integrated solution will reduce the error risk and the risks related to the scope of contracts, because the building components are designed and constructed as a standard package in terms of jointing technology.”
In spring 2007, Ruukki launched a solutions package to increase the speed and efficiency of the construction of multi-storey office and commercial buildings. The solution package also improves industrial safety. Construction time will be reduced because the frame construction can be started as soon as the foundations have been installed and the concrete casting can be done later. The solution comprises Ruukki’s steel pile foundation base for soft soils and the environmentally aware rock foundation solution, which significantly reduces the need for blasting.
Analyst cuts 2010 Colombian coal output estimate
Reuters reported that Analyst Hill & Associates has cut its estimate of Colombia's 2010 coal output from 100 million tons to 77 million tons.
Ms Jaime Correal Fonseca who leads Latin American coal market analysis for Hill a Wood Mackenzie company said the reason for the reduced estimate is problems expanding infrastructure.
Australian iron ore exports in 2007 total 279.7 million tonnes
According to the Australian Bureau of Statistics, Australia has exported a monthly record 27.8 million tonnes of iron ore in December 2007, bringing total exports for 2007 to 279.7 million tonnes or annual growth of around 20 million tonnes. Over half of Australia's 2007 exports or 149 million tonnes were shipped to China and a further 81.2 million tonnes bound for Japan.
MultiServ bags major contract from ArcelorMittal ALZ Genk
Harsco Corporation has announced that its MultiServ mill services division has been awarded a 9 year contract by ArcelorMittal ALZ Genk in Belgium to assume on site responsibilities for managing the mill's scrap yard and slab yard operations, replacing a previous contractor. The new contract is expected to generate new service revenues in excess of USD 100 million over its term.
Mr Geoffrey Butler president of Harsco and Group CEO of Mill Services said tat "We are honored and privileged to accept this significant new contract which further cements our ongoing global relationship with the number one steel producer in the world."
ALZ Genk is one of two major ArcelorMittal stainless steel works in Belgium, both of which already use MultiServ for a range of services that include on-site slag pot transport, metal recovery, slab grinding and scrap oxycutting.
Murchison will not extend Midwest offer
Murchison Metals Limited has announced that its offer for Midwest Corporation Limited will not be extended beyond the scheduled closing time of 5PM Perth time on February 6th 2008.
Mr Paul Kopejtka executive chairman of Murchison said that the Murchison board had decided to close the offer because recent discussions with key shareholders in Midwest had convinced Murchison that there was no realistic prospect in the short term of reaching agreement on terms that would deliver an acceptable value outcome for Murchison shareholders.
Murchison notes that Sinosteel, which has purchased on market nearly 20% of Midwest, also appears to have been unable to reach agreement with the Midwest board to proceed with a takeover offer for Midwest. Murchison's decision to close its offer is based in part on the fact that Sinosteel has advised Midwest that it does not intend to make an unsolicited takeover offer.
Mr Kopejtka said that "We remain of the view that a merger of Midwest and Murchison is a compelling proposition that would generate significant value for Midwest shareholders over and above that which Midwest will be able to generate on a stand alone basis. Jack Hills and Weld Range remain highly complementary projects that have similar ore types, are located in the same geographic region, have similar development timetables and will rely on the same rail and port infrastructure. A combination of the two companies may also have avoided the need for a contestable process to award the rights to construct the new mid-west port and rail infrastructure, thereby expediting the construction of that infrastructure."
He added that "However, without the support of the board and major shareholders of Midwest there is little point in keeping our offer open. Whilst we remain of the view that a combination makes sense for all parties, our focus is on driving shareholder value. At this point we believe the interests of our shareholders are best served by closing the Midwest offer and continuing to focus our efforts on the development of the Jack Hills mine and associated infrastructure in joint venture with our partner Mitsubishi."
Mr Kopejtka said that Murchison looked to the year ahead with great confidence. He added that "The mine, rail and port feasibility studies are progressing very well and the board has growing confidence in those projects and the ability to add value through developing and expanding existing assets, nurturing existing relationships and forging new commercial alliances. Demand for iron ore remains very buoyant and Murchison is strategically positioned as an independent Australian group to participate actively in future industry opportunities. We have been delighted with the support Murchison has received from Australian and international investors and we look forward to continuing to attract and reward that support in the months and years ahead."
Murchison holds a 4.78% interest in Midwest and intends to assess its options in relation to that stake.
Proposal to acquire Coalcorp withdrawn
Coalcorp Mining Inc announced that the non binding unsolicited proposal to acquire all of the company's common shares which was announced by the company on February 1st 2008 expired today without the parties reaching an agreement as to arrangements for due diligence and exclusivity.
Last month, Pala Investments Holdings Ltd an investment firm based at Jersey in UK announced that it had increased its share ownership in Coalcorp to about 19%.
Coalcorp had announced the adoption of a shareholder rights plan in November in preparation for any possible takeover bids.
Coalcorp holds stakes in the La Francia and La Caypa coal mines and related infrastructure projects and a number of coal exploration properties in Colombia.
Petroline plans Mozambique to South Africa pipe line
It is reported that privately owned Petrolin which plans to build a petroleum products pipeline from Mozambique to South Africa has signed long term petroleum products storage and transport agreements with customers for the full capacity of its pipeline.
These agreed commitments exceeded the target of 3 million a year that was set to proceed with the project.
Petroline said in a statement that “All other activities of the project remain on schedule.”
The pipeline will run between Maputo and Nelspruit, eventually linking with Kendal. It will start supplying product by 2010.
Volkswagen to increase Mexican production
It is reported that Automakers Volkswagen AG Europe's largest carmaker plans to spend USD 1 billion over the next three years to boost production at its Mexican factory. The amount was provided by Mr Martin Winterkorn CEO of Volkswagen AG Europe's during a ceremony at the company's plant in Puebla.
Ms Israel Victoria a spokesman for Volkswagen's Mexican unit said the investment will run through 2010 to increase output of the company's Bora model, known as the Jetta in the United States.
Hamburg port throughput hits record levels in 2007
It is reported that the port of Hamburg handled record high 140.4 million tonnes of cargo in 2007 an increase by 4.1%YoY. The result was boosted by the rapidly increasing cargo business with growth markets in the Far East and Eastern Europe. The port's container traffic rose 11.6% to 9.9 million TEUs.
Unlike other northern European ports, including Bremen, Rotterdam and Antwerp, the container traffic at the Hamburg port continued to improve with its market share rising to 26% from 22% traditionally fuelled by the business with China.
Russia, Finland, Sweden, Poland and the Baltic countries counted to the port's biggest trade partners. The trade with India grew 48%YoY in 2007.
In 2008, Hamburg's container traffic is seen at around 10.8 million TEUs with a total of 146 million tonnes of goods.
Peabody School Creek coal mine not slated to start in 2008
AP reported that Peabody Energy's proposed School Creek coal mine in the southern Powder River Basin remains on the drawing board but does not appear to be in line to start up this year.
Peabody Energy's has been tightlipped about its plans for the mine in northeast Wyoming since it was first announced it in 2006. But Mr Greg Boyce CEO of Peabody told investors during a conference call this week that the company has not included the new mine in any of its 2008 production figures.
Patriot coal receives reclamation award
Patriot Coal Corporation has announced that the West Virginia Department of Environmental Protection and the West Virginia Coal Association have recognized Colony Bay's Stockton Mine with the 2007 Reclamation Award for exceptional reclamation of surface areas surrounding an underground mine. Colony Bay is a part of Patriot's Wells Complex in Central Appalachia. The reclamation plan focused on creating wildlife habitat, particularly designed for the wild boar population.
Mr Richard M Whiting President & CEO of Patriot said "We are pleased to be recognized for our ongoing reclamation efforts at Colony Bay. Consistent with our company's heritage, being a good steward of the environment and neighbor in the communities where we operate is a key component of the way we do business. By incorporating vegetation and structures in our reclamation plans, we can promote wildlife, preserve the environment, and restore lands to a condition that provides lasting benefits."
Patriot Coal Corporation is a leading producer and marketer of coal in the eastern United States, with ten company-operated mines and numerous contractor-operated mines in Appalachia and the Illinois Basin. The company ships to electric utilities, industrial users and metallurgical coal customers and controls approximately 1.2 billion tons of proven and probable coal reserves. The company's common stock trades on the New York Stock Exchange under the symbol PCX.
South Korean raw material imports exceed USD 200 billion in 2007
It is reported that Korean imports of raw materials in 2007 exceeded USD 200 billion for the first time amid high flying prices of crude oil and other key products for manufacturing goods.
The Korea Customs Service said that Korea, Asia’s third largest economy, imported a total of USD 201.7 billion of fuel, minerals and other raw materials in 2007 up by16% from USD 173.9 billion recorded a year earlier. The amount made up more than half of the nation’s total imports.
According to the customs service imports of minerals reached USD 16 billion up by 22.9% from a year earlier, while those of non metal materials including aluminum expanded 16% to USD 14.3 billion.
An official at the customs service said "The increase last year was mainly attributable to higher prices of oil, minerals and non metal materials.”
Korea’s raw material imports which stood at USD 78.9 billion in 2000 jumped to USD 113.8 billion in 2004. It is the first time that Korea has seen the figure exceed the USD 200 billion mark.
Nippon Koshuha steel shares surge on profit forecast
Bloomberg reported that Nippon Koshuha Steel Company a maker of steel for bearings and tools rose the most in more than three months in Tokyo trading after lifting its profit forecast 9.1% on increasing product prices and sales.
Nippon Koshuha Steel Company said its net income is expected to gain 81% to JPY 2.4 billion in the year ending March 31st 2008 on higher prices of steel products, sales of steel used in tools, and lower nickel prices. Full year sales are expected to gain 16%.
Mr Yoshiharu Nakajo Nippon Koshuha Steel Company spokesman said “The nickel price had surged till May spurred by an influx of speculative money in the market from hedge funds, but it declined after the London Metal Exchange established a regulation on speculative funds which made our company profitable.''
He said declining metals prices led to a smaller than expected increase in material costs.
Danieli to supply equipments to Emirates Steel Industries
Reuters reported that Italian equipment maker Danieli has won a USD 1 billion contract to expand Abu Dhabi’s state owned General Holding Corp’s Emirates Steel Industries plant in Abu Dhabi.
General Holding Corp in a statement said the deal is part of a USD 4.5 billion plan to expand its Emirates Steel Industries plant. The deal will be 70% financed through borrowing and GHC has approached banks and financial institutions for loans. It did not give further details.
The second phase expansion of Emirates Steel Industries will increase capacity to 3 million tonnes per year from the current 2 million tonnes. The expansion includes building a new direct reduction plant, a steel melt shop with continuous casting for production of steel billets and beam blanks as well as a steel rolling mill. Work would start immediately and full commercial production is expected to start by the first quarter of 2011
Mr Sheikh Hamed bin Zayed al-Nahayan chairman of GHC said in the statement said that "The agreement signed today reflects the strategy of Abu Dhabi to promote basic industries and transforming the emirate into a regional industrial hub. Emirates Steel Industries will become, on completion of the current expansion projects within four years, one of the largest steel producers in the region with total investments exceeding USD 4.5 billion.”
El-Ezz hikes steel prices by almost 10%
Daily News Egypt reported that El-Ezz Steel Rebars, which controls almost 68% of domestic market share, has this week an extra EGP 370 per tonne to bring wholesale steel prices to EGP 4,170 per tonne and consumer prices to EGP 4,800 per tonne.
El-Ezz Steel officials justified domestic upsurges in the sector to leaps in international markets and rises in prices of raw material, which directly affected production costs. The company said that international indicators point towards further hikes in the prices of billets, predicting it would exceed 40% this year.
It earlier had said that “As is the case with cement, steel demand is expected to grow in the double digits in 2008 on growth in infrastructure and real estate investment. International iron ore and scrap costs, to which El-Ezz Steel Rebars is exposed, are expected to also increase significantly this year. So far, global steel giants have detailed plans to increase prices this year; and consequently El-Ezz Steel Rebars announced a 7% rise in ex factory prices at the start of 2008 and is expected to be able to pass on further rising costs in the near term.”
The report added that the issue of rise in steel prices has been searing hot for a long time now in Egypt, especially amid accusations of monopolistic practices by El-Ezz Steel and an investigation into possible monopolistic practices that is being carried by the Antitrust and Competition Protection Commission, in which major steel producers were suspected of monopolistic and anti competitive practices as well as gratuitously soaring market prices. Results of the inquiry were due last December, however, they have been postponed since then.
Saudi Arab to establish first car plant in the country
It is reported that Saudi Arab plans to establish its first car manufacturing plant in the eastern city of Damman to meet a rapidly rising demand for vehicles in the kingdom.
According to Saudi daily Arab News, UAE based Gulf Automobile Manufacturing Company is to launch the plant in a USD 100 million agreement with the Saudi Authority for Industrial Cities and Technological Regions.
Mr Toufique Al-Rabeea director general of the Saudi Authority for Industrial Cities and Technological Regions said that it will launch with a 15,000 capacity, but will move to a new industrial city in Sudair where it will occupy 3 million square meters with a capacity of 300,000.
As per report, Gulf Automobile Manufacturing Company is currently in talks with four Saudi investors to establish the Damman plant, which could start operations as early as next year.
Saudi Arabia currently imports vehicles worth more than SAR 22 billion (USD 5.9 billion) annually and car sales are expected to rise by 27% in 2008.
Kuwait unveils mega rail project
Gulf News reported that Kuwait’s cabinet is expected to approve plans for a national rail system forming part of a planned network across the Gulf region. As per report, Kuwait is planning to build an USD11 billion national rail network that will include a metro system for its capital.
Mr Saeed Dashti chairman of the Kuwait Overland Transport Union told a conference organized by the Meed business intelligence unit that around 500 kilometers of rail will be laid at a cost of KWD 1.8 billion (USD 6.59 billion) and will form part of a planned network across the Gulf region.
Mr Dashti said “In Kuwait City, where traffic clogs roads during rush hour, a four line, 171 kilometer metro is planned at a cost of KWD 1.3 billion. The project would be 65% above ground on an elevated track, and 35% underground.”
He added that the plans also include a 245 kilometers line to run from the country’s northern border with Iraq to the frontier with Saudi Arabia in the south, with links to the main airport and port.
Mr Dashti said that construction is scheduled to begin in 2009 for completion in 2017 if the plans, currently under review by the cabinet, are approved. He said “We are hoping for the final green light for the project by May”.
Simplex Infrastructures bags power plant projects in Qatar
Indian engineering major Simplex Infrastructures Limited announced that it has received a new order of INR 287 Crore for Qatalum Thermal Power Plant project in Qatar.
The release added that with this the order, its power vertical alone accounts for INR 1252 crore being 14% of the total order book of INR 9150 crore with foreign segment accounting for 27% or INR 2428 crore.
Pakistan to improve ports facilities
Mr Mohammedmian Soomro caretaker prime minister of Pakistan said that the government would ensure provision of necessary facilities at the ports so as to promote trade as well as exports of the country. He added that caretaker set up would continue its efforts to upgrade and modernize the facilities at ports to facilitate the exporters and business community.
He said that all measures would be taken to enhance trade and business activities in the country and better port facilities are essential to achieve this objective. The government is also actively pursuing the policy to build a road network across the country. He added that the ongoing road network project which links Gwadar deep sea port to the rest of the country will further enhance the trade volume of the country.
He further said that the linking of Gwadar through road network would cater the trade and business needs of Pakistan and its neighboring countries as well.
Crescent Petroleum denies participation in IPI
A spokesman of Crescent Petroleum has denied that it had any involvement whatsoever in any of the Iran Pakistan India Pipeline and Turkmenistan Afghanistan Pakistan Pipeline projects.
He said that Crescent Petroleum is not lobbying the Pakistan government and also has no American shares whatsoever. He added that it is a UAE based company and regionally focused, with almost 40 years history of operating across the region and offices in both Iraq and Iran.
He further said that “Crescent Petroleum put the Gulf South Asia Pipeline Project on hold when the supplier, Qatar placed a moratorium on new gas exports after lack of decision by the Pakistani government. It was always and still is very feasible and the company, as the project sponsor and leader, hopes to revive the project at correct time in future. In the meantime Crescent Petroleum closed down its Pakistan offices in 2007.”
DP World port capacity to reach 15 million TEUs in 2008
Mr Mohammed Al Muallem senior VP & MD of DP World said that, in the continuous drive for excellence to maintain the vanguard position in terminal operations and management, DP World is constantly developing strategies, modernizing facilities and introducing new operational processes to meet the needs and expectations of customers.
Speaking at the MEED Middle East Port Development Conference, Mr Al Muallem said that a number of projects are underway at Jebel Ali Port to increase efficiency and services to customers. He also said that the expansion works at container terminal 2 of Jebel Ali Port will be completed before the end of 2008, raising the port’s handling capacity to 15 million TEUs and enabling it to accommodate mega ships of more than 12,000 TEUs, which are expected to enter the industry soon.
Mr Al Muallem said that said “We are not mere port operators, but an essential and efficient link in the supply chain.” He highlighted projects such as the port gate automation and the e token service recently introduced through Dubai Trade, which enables customers to take their containers without the need for queuing at documentation counters, the security management system, which recently obtained the ISO 28000 certification, and the new control room that permits monitoring and supervision of all operations at the port.
Mr Al Muallem noted that DP World now ranks 4th in the world in managing and operating marine terminals. He said that the remarkable success of being ranked among the world leaders in port operations is due to combined efforts. Progressive strategic planning and focus on meeting customers’ future needs are the key elements behind our success formula. He added that “We have achieved this rank by expanding our network of operations in the Indian Subcontinent, Far East, the Americas, Australia and also in the UAE. We have now 42 terminals in 22 countries and our future plans include 53 terminals in 27 countries.”
Mr Al Muallem said that the total container handling capacity is expected to grow steadily over the next 5 years. He added that “In 2007 the ports in Dubai alone achieved 20% growth rate in the volume of container handling compared to the same period in 2006, reaching 10.7 million TEUs. This is around 25% of the total handled TEUs in the DP World’s terminals worldwide, which was 43.3 million TEUs in 2007.”
Saudi business giants to invest in energy & steel sectors in Pakistan
Arabian News reported that 3 leading business groups of Saudi Arabia including Al Tawairqi, HUBCO and Al Bakri International have shown interest to expand investment in Pakistan’s energy, steel and pharmaceutical sectors.
As per report, CEOs of Saudi business giants evinced their readiness for enhancing investment in various fields for accelerating pace of economic development in Pakistan during their separate meetings with Mr Muhammadmian Soomro caretaker prime minister of Pakistan. Mr M Tariq Barlas CEO of Al Tawairqi, Mr Muhammad Ali Reza chairman of HUBCO and Mr Abdul Qadir CEO of Al Bakri met with Mr Soomro and showed interest for investment in Pakistan.
Mr Barlas showed immense interest for making investment in the coal based power projects in Pakistan. He appreciated the visionary approach of Mr Soomro for developing alternative energy sources including coal, solar and wind to cater to the growing demands of energy sources in Pakistan.
Mr Soomro said that Pakistan has appreciated investment and expansion plan of Al Tawairqi group in producing high quality steel. He expressed the confidence that a plan of enhancing investment in Pakistan will unleash boost to the economic development activities. He was of firm view that investment and business friendly approach of the government was encouraging foreign investment.
Al Tawairqi group of companies is scheduled to complete first phase of its state of the art steel plant at a cost of USD 197 million by the mid 2009. The production capacity of the plant can be expanded from 1.28 million tonnes to 1.5 million tonnes per annum in near future. It is employing one of the most advanced and best state of the art technology for wide range production of billets, rebars wire rods, spring wires, medium voltage electric which gears automation benals and compact sub stations etc. The group deals in a wide range of industrial supplies, building material and high tech medical equipments.
Mr Ali Reza chairman of HUBCO said that Pakistan had a strong human bank with a sound economy. He said that HUBCO was examining to set up a hospital of international standard in Pakistan. It has already made investment for setting up gas distribution depots in Pakistan.
HUBCO is in the process of finalizing a 225 MW oil fired power project in Punjab which is scheduled to be completed by March 2010. Hubco power station of 1292 MW was the first and largest Oil Fired thermal power project. It is stated to be maintaining highest international standard for power generation industry. Completion of the HUBCO oil fired power project of 225 MW will help tackle the energy issue of Pakistan.
Iraq cancels oil deal with Austrian OMV
It is reported that Iraq has halted oil exports to Austria's OMV to protest a deal with the self ruled Kurdish region. It joins South Korea's SK Energy in being cut off because of deals with the Kurds that are not sanctioned by the government in Baghdad.
In November 2007, OMV signed 2 production sharing contracts with the Kurdish administration in northern Iraq for two exploration blocks of Mala Omar and Shorish in Irbil, the capital of the Kurdish region.
An official from Iraq's oil ministry said that the decision to end the contract was enforced on January 1st 2008. He added that "The ministry has made it clear since December 2007 that it would stop cooperation with these companies and then blacklist them if they keep insist on maintaining these contracts which we consider illegal."
Since April 2007, the Kurds and Arab leaders have been wrestling in parliament over who has the final say in managing oil and gas fields. The dispute has delayed passage of the national oil and gas law designed to regulate foreign investment in Iraq vast reserves.
Frustrated with this delay, the Kurds have signed 15 production sharing contracts with 20 international oil companies, which are consider illegal by oil ministry.
As of December 31st 2007, South Korea's SK Energy refused to abandon its exploration project in Kurdistan as part of a consortium led by the state run Korea National Oil Corp. That prompted the Oil Ministry to cancel a contract to supply the company with about 90,000 barrels per day of Basra light crude.
Anglo American and China Development Bank ink strategic relationship
Anglo American and China Development Bank have announced that they have entered into a MOU, which represents a long term commitment from both Anglo American and China Development Bank to establish a strategic relationship to identify and develop a pipeline of natural resources projects in China, Africa and elsewhere.
Ms Cynthia Carroll CEO of Anglo American said "I am delighted that Anglo American and China Development Bank will be working closely together on what we hope will be a productive relationship lasting many years. Anglo American has an extensive pipeline of projects around the world and is actively looking for further projects in China. This MOU will further enhance Anglo American's project potential in China, Africa and other key markets."
Mr Chen Yuan governor of China Development Bank said "Anglo American is one of the world's leading resources groups, with a strong portfolio of world class mining assets and promising projects, including several in China. With the establishment of this strategic alliance, we have become much better positioned in doing business in the natural resources industry. With the growth of the global economy, we are confident that this relationship will be mutually rewarding."
China Development Bank plays an important role in providing financing to China's medium and large-scale priority projects in infrastructure, basic industries and the pillar industrial sectors, and supporting the overseas investment projects of Chinese enterprises.
US to review AD on imports of SS pressure pipes for China
Several American stainless steel welded pressure pipe producers have filed an unfair trade claim toward China’s welded stainless steel pipe imports on January 30th 2008. US DOC’s international trade committee indicated that the case will be arbitrated initially on February 20th 2008 and the commercial department will make first sentence against China’s subsidiary and dumping issues before March 17th 2008.
Mr Roger B Schagrin of Schagrin Associates filed the case on behalf of Bristol Metals, LP Felker Brothers Corp, Marcegaglia USA. Inc, Outokumpu Stainless Pipe Inc and United Steel Workers of America on January 30th 2008
In a letter to Mr Marilyn R Abbott secretary of USITC, Mr Schagrin requested the commission to conduct an investigation under sections 701 and 731 of the Tariff Act of 1930 regarding the imposition of countervailing duties and antidumping duties on US imports of welded stainless pressure pipe from the People's Republic of China.
Shenhua and CIC in talks to buy stake in FMG
According to the South China Morning Post newspaper, China Investment Corp, a US$200 billion sovereign wealth fund, and China Shenua Group, the China’s biggest coal mining firm, together would like to spend USD 2 billion to purchase 15.85% stake in Australia’s Fortescue. But no further details are released so far.
The paper however added that the discussions to buy into Australia's Fortescue Metals are still in preliminary stages.
Responding to a query from the stock exchange, Fortescue said it had held confidential discussions with a range of potential strategic equity investors. However none could be considered concluded or at a stage requiring specific disclosure.
Hong Kong listed China Shenhua, China’s biggest coal producer, has been looking for overseas acquisitions to expand its operations and boost the country's energy resources to fuel its growth. Government owned wealth fund CIC, which has USD 200 billion in capital, has been looking for viable investments overseas.
The report came days after Aluminum Corp of China and partner Alcoa Inc paid USD 14 billion for a 12% stake in Rio Tinto.
Kunming plans to invest CNY 7 billion CAPEX
In the past five years, Kunming Iron and Steel Group Company Ltd has invested CNY 5 billion in Yuxi and intends to further invest CNY 7 billion to complete three projects in Yuxi
The projects are
1. Dahongshan Expansion Phase two – CNY 3.6 billion
2. Yugang vanadium titanium steel project – CNY 1.4 billion
3. KISC welded pipe project – CNY 1.6 billion
These projects will have an annual production value of CNY 20 billion.
The investment in Yuxi in the past 5 years has boosted the development of mining and electricity generating industry in Yuxi, and helped local economy stop declining and begin to increase smoothly and quickly. In 2007, Yuxi had a production value of CNY 49 billion Yuan, increasing by CNY 21 billion from that of 2002; financial revenue of CNY 19.4 billion up by CNY 8.7 billion and local financial revenue up to CNY 4.4 billion from CNY 2.2 billion in 2002.
Baosteel commissions new large dia pipe mill
It is reported that Baosteel's large dia longitudinal welded pipe production line has been commissioned recently succeeding in making the first piece of longitudinal submerged arc welded pipe with a diameter of 1016mm.
Baosteel's large dia longitudinal welded pipe production line comprises of four stages bending, welding, finishing and crack detecting, is capable of producing X100 pipeline steel and having a designed capacity of 500,000 tonnes longitudinal submerged arc welded pipe per year.
This line is set to make products of an outer diameter from 508mm to 1422.4mm a wall thickness of 6mm to 40mm and a length of 6000mm to 18300mm.
Baosteel held a product introduction meeting last July attended by China National Petroleum Corporation, China Petroleum & Chemical Corporation and China National Offshore Oil Corp etc.
Baosteel ink strategic cooperation with Huajin coking coal
It is reported that Baosteel and Shanxi Huajin Coking Coal Company reached a medium long term strategic cooperation agreement recently which is signed by Mr Zhu Junsheng deputy general manager of Baoshan Iron & Steel Company Ltd and Mr Wu Huatai chairman of the coal maker.
Mr Wu Huatai said on the signing ceremony he will try best to meet Baosteels demand for coking coal amid the supply strains and intensify their partnership.
Mr Zhu Junsheng also praised signing of this cooperation agreement as lucrative to stabilize resource, supply/demand and production of the coal, and promoting each other's competitiveness by jointly resisting risks.
Ningbo Steel 1780 HR project commissioned
It is reported that Ningbo Steel has succeeded in hot commissioning of the 1780 hot rolling project January 21st after 16 month long construction.
Ningbo Steel grows from the former Jianlong Steel a private mill controlled by Tangshan Steel that started building from June 2003. The project was yet suspended from May 2004 on China regulation and then resumed since July 17th 2008 with a new name of Ningbo Steel with Hangzhou Steel as the controlling shareholder.
Ningbo Steel is the first complex steel company in Ningbo, with construction items including steel rolling, raw material, blast furnace, coking, sintering etc. It is expected to form 6 million tonnes per year hot rolled sheet and plate capacity.
Iron ore import at Rizhao Port in 2007 up by 16% YoY
China Rizhao Custom’s Statistics show that iron ore import in Rizhao Port in 2007 was 42.89 million tonnes valued at USD 4.34 billion and increased by 16% and 66%YoY respectively accounting for 56.4% of the Freight Transportation by Foreign Trade of Rizhao Port.
Rizhao Port strengthened its effort to build the infrastructure and improved delivery capacity, so iron sand annual delivery capacity increased more than 1 time than that of the same period last year.
Toyota mulls new assembly plant in China
Nikkei business daily reported that Toyota Motor Corp is considering setting up its eighth assembly plant in China which would boost the automaker’s annual output in the country to 1 million cars.
As per report production at the plant, to be built by a joint venture with Chinese automaker FAW Group Corporation at Changchun in Jilin province is expected to start as soon as the early 2010s.
The Nikkei added that the Corolla sedan was among the models being considered for production. No details were available on output, but the plant along with another factory in Guangzhou due to start production in 2009, would increase Toyota’s overall output in China to 1 million vehicles per year.
Toyota sold 499,000 vehicles in China last year and the company said in November that it aimed to sell 700,000 in 2008.
Qingdao port monthly throughput exceed 25.02 million tonnes
It is reported that by the end of January 31st 2008, Qingdao port held 25.02 million tonnes handling capacity and 836 million TEU, both hitting new high. It is the first step for Qingdao port to realize the throughput of 300 million tonnes per year.
In 2007 the output of Qingdao port reached 265 million tonnes, increased by 40.87 million tonnes YoY and it is expected to be the No 7 port in the world.
Severstal resumes BF No 5 operations at Cherepovets
Severstal announced that operations at Blast Furnace No 5 at its Cherepovets steel plant resumed operations on February 2nd 2008 and now production volumes have returned to normal.
Severstal shutdown operations of Blast Furnace No 5 on January 31st 2008 after a fire.
The release added that investigations into the cause of the incident are underway.
ArcelorMittal Kriviy Rih January output dips by 4.4% YoY
Interfax reported that Ukraine's biggest steel producer ArcelorMittal Kriviy Rih reduced its roll production tentatively by 4.4% YoY to 590,000 tonnes in January 2008.
Its crude steel production grew by 11.5% YoY to 641,000 tonnes, pig iron by 11.2% YoY to 570,000 tonnes and sinter by 12.6% to 909,000 tonnes.
Mechel Beloretsk plant masters unique wire production technology
Mechel announced that its Beloretsk Metallurgical Plant subsidiary has succeeded in mastering a unique technology to produce stabilized reinforcing wire for prestressed concrete structures used in the construction industry.
The equipment supplied in March 2007 by one of the leading European manufacturers, KOCH –GSG, enables Mechel, for the first time in the world, to implement mechanical descaling and surface preparing of 9 mm to 16mm diameter high carbon wire rod in the drawing line resulting in output of 3mm to 8mm high tensile wire with 1,700 MPa to 2,300 MPa maximum strength at the level of approximately 20,000 tonnes annually. The investments in the project are approximately RUB 97 million (USD 3.9 million).
Wire rod mechanical descaling and surface preparation in a drawing line became widely popular in Europe and the USA to process low carbon wire rod of up to 18 mm diameter and high carbon wire rod of 5.5mm to 6.5mm diameter. At the same time, wire for prestressed concrete structures was manufactured only from wire rod subjected to sulfuric or hydrochloric acid pickling followed by phosphatation.
In the process of manufacturing the equipment and developing and mastering the technology, the specialists of KOCH, TRAXIT, and Mechel jointly solved the following problems
1. Increase of the wire rod diameter required significantly higher intensity of mechanical descaling, which, in the processes applied previously, resulted in local quenching of the wire rod surface. Development and optimization of a new high performance descaling method was necessary;
2. Development of special pre-lubricating salts with high adhesion characteristics and selection of modes for applying and drying it was required, as borax base pre-lubricating salts used previously did not provide adhesion of lubricants sufficient for repeated drawing of an increased diameter wire;
3. Use of a big diameter air-patented wire rod required more intensive wire rod cooling in the Stelmor line to obtain fine structure. This presupposes optimization of wire rod rolling and cooling modes of rolling mill 150.
The work resulted in obtaining a stable drawing of 5.0 mm diameter wire at reasonable drawing speed, which is matching to phosphate coated stock material. The wire was successfully processed at the stabilizing line supplied by GCR - Eurodraw.
Mr Vladimir Polin CEO of Mechel Management said “The new technological process enables producing high quality finished products, while complying with environmental and industrial safety requirements and reducing production costs. In addition, the process enables Mechel for the first time in Russia and CIS to implement manufacturing stabilized wire from Stelmor type wire rod, ensuring high production performance. The new equipment and technologies enable Mechel to manufacture stabilized reinforcing wire conforming to principal international standards, which have better consumer properties as compared to the GOST standard requirements.”
PC wire is used in such prestressed concrete structures as railroad ties, reinforced concrete pressure pipes, road slabs, etc. Previously, mainly tempered high tensile wire was used for that purpose in Russia and CIS. Three to four times lower relaxation losses of wire tension force in final products and their 10% to 30% higher strength enable builders to significantly reduce consumption of reinforcing materials.
MMK-METIZ boosts production by 22% YoY in 2007
Magnitogorsk MMK-Metiz Plant manufacturing steel wire, cables, mesh and fasteners produced 746,600 tonnes of products in 2007 up by 22% YoY accounting for 32% of Russia’s total output of such products in 2007.
The best performers have been the plant’s divisions producing railway fasteners, general purpose wire, wire nails, calibrated steel, steel strips, and core wire.
MMK release said that “This growth is, in the first place, attributable to a steady supply of raw materials made possible thanks to a smoothly operating purchasing system and the fact that the key supplier of steel to the plant is OJSC MMK, the mother company. Another positively contributing factor was a sound marketing philosophy aimed at attaining maximum sales efficiency.”
The releases added that “According to the data from the PROM-METIZ Association and the Metallosnabzhenie I Sbyt Bulletin, in 2007 MMK-Metiz became a leader in production growth rates among Russian metalware producers. In terms of production performance and market share, the plant now holds the second place. MMK-Metiz share in the total Russian production of metalware rose to 32%, from 27% in 2006.”
For MMK-Metiz 2007 was the first full year of its existence as a single enterprise. On June 1, 2006, the Magnitogorsk Steel Sizing Plant and the Magnitogorsk Metalware Plant were merged in one joint stock company now known as MMK-Metiz.
MMC Norilsk Nickel announces production results for 2007
MMC “Norilsk Nickel” announces preliminary consolidated production results for 2007 at its Polar and Kola Divisions in Russia and international operations in Finland, Australia, Botswana and South Africa.
Overall saleable nickel production over the 12 months of 2007 amounted to 295,209 tonnes. Norilsk Nickel overall saleable nickel production for 2007 from the acquisition dates amounted to 276,339 metric tonnes. MMC Norilsk Nickel increased its saleable nickel production in 2007 by 13% compared to 2006, when the Company’s saleable nickel production amounted to 244,000 tonnes. The Company operations in Russia, Finland, Australia, Botswana and South Africa produced 75,457 tonnes of saleable nickel in the fourth quarter of 2007.
The released said the Polar and Kola Divisions in Russia produced 234,454 tonnes of saleable nickel in 2007. In addition, the Polar Division produced high-grade nickel matte containing approximately 3,920 tonnes of nickel to be refined at Norilsk Nickel Harjavalta in 2008 as part of a test of prospective technology. In the fourth quarter of 2007 the Polar and Kola Divisions produced 59,442 tonnes of saleable nickel excluding the high-grade matte.
The released added that the Tati Nickel and Nkomati operations in Southern Africa produced 16,990 tonnes of saleable nickel starting January 1st 2007. Saleable nickel production of these operations from the acquisition date amounted to 8,324 tonnes. The full year saleable nickel production was below the previously announced estimate due to lower nickel grades at Tati Nickel and the transition from mining at the Massive Sulphide Body to the Main Mineralized Zone at Nkomati. The “Interim Plan” Project successfully started commissioning two months ahead of schedule in August 2007 and within budget. In the fourth quarter of 2007 these operations produced 3,855 tonnes of saleable nickel.
The released also said that the Waterloo and Lake Johnston operations in Western Australia produced 9,215 tonnes of saleable nickel over the 12 months of 2007. Saleable nickel production of these operations from the acquisition date amounted to 4,222 tonnes. The full year saleable nickel production exceeded the previously announced estimate despite the ground fall at the Maggie Hays mine in May 2007 and subsequent rehabilitation aimed at ensuring safe operating conditions. In the fourth quarter of 2007 these operations produced 3,031 tonnes of saleable nickel.
The released said that Norilsk Nickel Harjavalta in Finland produced 54,964 tonnes of nickel starting January 1st 2007 including tolling and 34,550 tonnes of saleable nickel excluding tolling. From the acquisition date Norilsk Nickel Harjavalta produced 46,437 tonnes of nickel including tolling and 29,339 tonnes of saleable nickel excluding tolling. In the second half of 2007 Norilsk Nickel Harjavalta achieved the production rate at 60,000 tonnes of nickel per annum including tolling. Moreover, a monthly nickel production record was achieved in December 2007 at 5,480 tonnes of nickel including tolling. In the fourth quarter of 2007 Norilsk Nickel Harjavalta produced 9,129 tonnes of saleable nickel excluding tolling.
Mr Denis Morozov General Director of MMC Norilsk Nickel said “We are satisfied with 2007 production volumes. Norilsk Nickel in 2007 strengthened its leading position both in the Russian and the international mining and metals industry. The acquisition of OM Group’s nickel business and LionOre has contributed a lot to the operational results of our Company, and provided a basis for further growth and development of our business.”
On March 1st 2007 Norilsk Nickel acquired the Norilsk Nickel Harjavalta refinery in Finland and the Norilsk Nickel Cawse operation in Australia from OM Group. On July 1st 2007 Norilsk Nickel acquired Tati Nickel in Botswana, Nkomati in South Africa as well as the Waterloo, Lake Johnston and Black Swan operations in Australia as part of the acquisition of LionOre Mining International Ltd.
RZD approves financing of 3 projects at Far Eastern ports
RIA Novosti cited Mr Denis Tripelets head of the PR department of Far Eastern Railway as saying that, the management of Russian Railways has approved financing of three projects on development of transport infrastructure adjacent to large ports of the Far East.
Mr Tripelets said that the project also envisages construction of a roundabout between Owen Vysokogornaya stations as well as reconstruction of Vysokogornaya, Toki, Tumin stations and construction of several new sidetracks. This project is valued at RUB 60 billion till 2016.
Within the strategic program for 2008, RZD plans the development of the railway infrastructure at Kozmino Bay near Nakhodka to cater for oil routes. The project also envisages reconstruction of the Kuznetsovo Khmylovsky sector, construction of the new node at Skovorodino station capable of handling up to 15 million tonnes of crude per year.
Implementation of this project will contribute to considerable speeding up of transportation by Far Eastern Railway to the seaports of Primorje. High emphasis is also laid upon modernization of railway infrastructure at the approaches to Vanino and Sovetskaya Gavan. The project aimed at reconstruction of railway sector Komsomolsk on Amur Sovetskaya Gavan envisages construction of new Kuznetsovski tunnel.
In 2008, another large investment project is to be completed in the south of Primorje. The project Kuzbass Far Eastern Transport Hub is aimed at reconstruction of railways, systems of automatics and teleautomatics, electrification and electricity supply.
According to the source, the investments under Strategic program on development of the Far Eastern Railway till 2030 is to total RUB 890 billion including RUB 22 billion in 2008.
South Korean Might & Main eying shipyards in Croatia
Croatia Today reported that South Korean company Might & Main is interested in Croatian shipyards 3 maj and Kraljevica, while representatives of the company already asked for a due diligence in targeted shipyards.
Interest expressed by Koreans was also confirmed by Mr Damir Polancec Government Vice President and Economy Minister of Croatia who said that several other foreign companies were also interested in acquisition of Croatian shipyards which confirms that this sector of economy, despite present difficulties, has a strong potential.
Poland seeking cheaper pipeline route for Nord Stream
It is reported that Mr Donald Tusk PM of Poland will seek to persuade Russian officials to pick a cheaper route for Gazprom's planned Nord Stream pipeline during a visit to Moscow recently.
Mr Waldemar Pawlak economy minister of Poland's said "Nord Stream is three or four times more expensive than a rival link that passes through Estonia, Latvia, Lithuania and Poland, known as the Amber pipeline. It also costs about three or four times more to transport gas via Nord Stream."
Mr Dirk von Ameln in charge of getting approval from countries affected by the pipeline said the Nord Stream pipeline will stretch 1,200 kilometers from Vyborg in Russia to Greifswald in Germany and is scheduled to begin carrying gas in 2011. Nord Stream's costs will probably be higher than the EUR 5 billion initial estimate,
RZD buys a blocking interest in Transmashholding
FIS reported that Russian Railroads, which is the major consumer of machine building products, has turned into a partner able to influence the industrial and pricing policy of Russia's largest producer of railway rolling stock CJSC Transmashholding.
Before the deal Transmashholding's assets were evaluated by Ernst & Young at RUB 46.6 billion though RZhD bought 25% plus one share for RUB 9.3 billion and not for RUB 11.65 billion.
The deal is of much importance for the development of transport machine building in Russia.
UGMC starts construction of a cement plant in Osetiya
FIS reported that UGMC has started construction of Alagir Cement Plant at Osetiya that will have a capacity of 1.5 million tonnes per annum. It will start operations in 2010. Investments into the project will total USD270 million.
At present UGMC internal needs in cement total 400,000 tonnes per annum and are expected to grow to 500,000 tonnes to 600,000 tonnes soon.
The Alagir Cement Plant will fully cover the needs of the Company and will become the supplier for Northern Osetiya, which imports 400,000 tonnes of cement every year.
