RINL to appoint advisor for Canada iron ore mine acquisition

TNN reported that Rashtriya Ispat Nigam Limited is in the process of appointing a consultant for advising it on its proposed bid for an iron ore mine in Canada.

The report cited Mr PK Bishnoi CMD of RINL as saying that “We will appoint a consultant for technical review of the mines soon. We are in the process of short listing consultants who will be mandated to look into the various criteria, including local conditions there to come up with their suggestion.”

Canadian iron ore mine is estimated to hold deposits of over 2.4 billion tonne of iron ore. RINL has submitted expressions of interest to explore the iron ore a few months ago

RINL does not own a single iron ore mine and has not been able to secure one so far, which threatens its raw material security. If RINL can secure Canadian deal, it would be cheaper to transport ore from Canada when the Gangavaram port in Vizag becomes fully operational.

TATA BlueScope unveils improved Zincalume

TATA Steel and BlueScope Steel’s 50:50 JV TATA BlueScope Steel has unveiled improved ZINCALUME® steel at a Launch Seminar in Chennai. The seminars will be repeated at Mumbai and Delhi as well.

As per release “Improved ZINCALUME® steel has better resistance to early corrosion, and retains its uniform metallic look for longer time. It exhibits superior long term surface appearance when compared with other metallic coated steel products. Improved ZINCALUME® steel also helps in reduction in energy cost due to better reflectivity over a longer period. Other benefits include higher durability, excellent design flexibility, better thermal efficiency and environment-friendly credentials, making it a widely accepted coated steel product for the construction industry. ZINCALUME® steel with AZ150 coating, on an average lasts up to four times longer than galvanized steel Z275, of equivalent coating thickness, in similar environment conditions.”

Mr Chetan Tolia MD of TATA BlueScope Steel said “TATA BlueScope Steel has been consistently looking at opportunities to add value to customers. Zinc and Aluminum alloy coated steel is preferred over Zinc coated steel, due to its superior resistance to corrosion. Improved ZINCALUME® steel also has enhanced aesthetics.”

Mr Darren Pye chief marketing & business development of TATA BlueScope Steel said “Aesthetics is a major issue in the construction industry and the new coating technology will help in providing a long lasting, uniform physical appearance and sustained good looks across the application.”

TATA BlueScope Steel currently imports the coated steel products from BlueScope Steel, Australasia. The coated steel manufacturing plant of the company is currently under construction at Jamshedpur. This facility has metal coating line with 250,000 tonnes per annum capacity and a paint line with 150000 tonnes per annum capacity. It also offers pre painted COLORBOND® steel for roofing and wall cladding applications.

NMDC confirms talks for acquisition of overseas iron ore mines

Reuters reported that Indian iron ore mining major NMDC Limited has begun talks with companies in Canada, Brazil and Australia as it hopes to secure an interest in an overseas iron ore asset.

Mr Rana Som CMD of NMDC during an interview told Reuters that "We have just started the process. The talks are at an initial stage.”

He added that "We have got some offers from Brazil and Australia, apart from Canada.”

Mr Som told "NMDC, being a Navaratna company, can invest up to INR 10 billion abroad (USD 250 million), if the project is viable, attractive and compatible with long term strategies.”

NMDC is setting up a separate unit called the Global Exploration Centre for investing abroad. Mr Som told that "This exploration centre will be used in India and abroad for mining projects. The funds will be decided on the basis of the projects.”

NMDC is India's leading state owned iron ore miner, with three iron ore mines in the country and is expecting iron ore production in the financial year ending March 2008 of 30 million tonnes. It is also setting up a pig iron plant with a capacity of 800,000 tonnes per annum and an iron ore pelletization plant with an annual capacity of 1 million tonnes.

Shah Alloys and POSCO in discussion for JV - Report

BS reported that Indian SS major Ahmedabad based Shah Alloys Limited is in talks for few months with POSCO for a possible tie up for floating a JV.

The report cited Mr Shashank Pattnaik spokesman of POSCO India as saying that “Shah Alloys has invited us to start steel business in Gujarat. But the company is yet to take a call on this.”

Details of venture under consideration are not reveled.

ArcelorMittal may consider listing on Indian bourses – Report

ET reported that ArcelorMittal, which is listed on New York, Luxembourg, Brazil and South Africa stock exchanges, may consider listing on Indian bourses after making certain progress on its INR 80,000 crore steel projects in India.

The report cited Mr Aditya Mittal CFO of ArcelorMittal as saying that “That will be quite interesting. We have to examine whether we could list ArcelorMittal in India as an Indian entity."

However, Mr Aditya said that going public in India through a stock market listing is currently not the main focus and it is more committed on making progress on its projects. He added that "Right now listing is not the focus area. The focus area is to get the projects going. We are focused on land acquisition, iron ore allocations, making investments and setting up facilities. And as we cross these milestones we will focus on those issues."

When asked how much time it could take for the company to get listed in India, Mr Aditya did not give a specific time frame and said that "I am not prone to speculations. We are focused on land acquisition, iron ore allocations, making the investments and set up facilities. And as we cross these milestones we will focus on listing issues."

Essar to bid for deep sea port in West Bengal

TOI reported that Essar group will bid for the proposed deep sea port in West Bengal and might rope in a foreign partner for the same. West Bengal government is likely to float a global tender soon for selecting a developer for the port.

Mr Sanjay Mehta MD of Essar Shipping Limited admitted that the group is keen to set up a deep sea port on the east coast. He said that "We have expertise in port business and have interest in deep sea port in West Bengal."

Sources said that Essar Shipping has started assessing the viability of deep sea port in Bengal. It added that "Lots of big steel projects are in the offing in Bengal. This includes Jindal, Videocon, Adhunik and Abhijit group. We are expecting a huge container traffic as all of them would require importing iron ore and coal. Now our focus is on handling cargo from oil, steel and power industry."

At present, Essar group operates a bulk terminal in Vadinar which has a capacity of 7 million tonnes of cargo. Essar Shipping has lined up mega investment plans for both Brownfield and Greenfield expansion. The projects will be executed by Essar Ports & Terminals Limited and the subsidiaries. After the restructuring, EPTL will have 3 subsidiaries namely Essar Bulk Terminal Limited, Vadinar Oil Terminal Limited and EBTL Salaya.

Ghaziabad unit of Rathi Ispat stops production

Rathi Ispat Limited td has informed BSE that it’s manufacturing unit which is located in Ispat Nagar at Ghaziabad in UP has stopped its production due to labor strike and financial.

Gujarat awards LoIs to IL&FS and L&T for Greenfield ports

BS reported that Gujarat Maritime Board has issued letter of intent to L&T for Sutrapada Greenfield port and IL&FS for Khambhat Greenfield port. A total investment of over INR 3,500 crore would be required to develop these ports.

Both L&T and IL&FS will have to submit detailed project reports within 12 months and get all necessary clearances including environment clearance within 18 months.

L&T will build 2 bulk cargo handling berths and break waters during the phase I of the project, which will see investments worth INR 670 crore. The total capacity of this port will be 5.6 million tonnes.

IL&FS’s Khambhat project would see investments of INR 120 crore. It will have 2 coal handling berths with a total capacity of 3.6 million tonne.

Centre has identified 10 Greenfield port sites to give a boost to the cargo handling capacity of Gujarat, which is eyeing to become the gateway to the northern hinterland. It has planned to create additional facilities to handle 220 million tonne cargo by 2012. As many as 12 companies have emerged as successful bidders for 8 other Greenfield sites identified to be developed as ports in Gujarat.

Updates on JSW Steel and SISCOL merger

JSW Steel Limited has announced that with regards to the scheme of amalgamation of Southern Iron & Steel Company Limited with JSW Steel Limited and their respective shareholders & creditors, the effective date of the scheme is March 7th 2008.

In terms of the sanctioned scheme, JSW Steel will issue 1 equity share for every 22 held in SISCOL for merger of the two companies.

With this share swap ratio, the equity capital of JSW Steel would stand increased to INR 179.05, from the existing INR 164.01 crore.
In February 2008, Bombay High Court had approved the scheme of amalgamation between the two companies.

Zambian regulator delays Vedanta ZCI transaction

SA Mining Weekly reported that Vedanta's acquisition of the 28.4% of Konkola Copper Mines shares held by Zambia Copper Investments has been delayed after the Zambian Competition Commission said that it would exercise jurisdiction over the transaction.

The report said that “As a result, Zambia Copper Investments had not yet received payment for the Konkola shares, which it still held. Zambia Copper Investments and Konkola Copper Mines have been entangled in a series of legal processes, to resolve a dispute over a call option on Zambia Copper Investment's shares in Konkola Copper Mines.”

Meanwhile, Zambia Copper Investments said that it had been assured by both KCM and Vedanta that the competition authority's concerns were purely procedural and would likely be resolved soon. Zambia Copper Investments board has planned to present shareholders with proposals regarding the future of the company, including whether it should be wounded up and its assets distributed to shareholders, or whether it should continue as an investment.
The report quoted Vedanta as saying that it would accept an independent investment bank’s valuation of the stake at USD 213.15 million.

TATA Steel eyeing for more coal & iron ore mines overseas

The Telegraph reported that TATA Steel is planning fresh acquisitions of coal and iron ore mines abroad. The report quoted Mr Arun D Baijal group director of TATA Steel as saying that "We are looking at various opportunities and you may hear from us soon."

Mr Baijal admitted that the global spurt in prices of iron ore and coking coal would also have an impact on the cost of acquiring the mines. He added that "If China continues to grow the way it is and there is consolidation in the mining industry, iron ore prices will not come down."

TATA Steel needs captive sources for its Corus operations in Western Europe. While it acquired coal and iron ore blocks in Mozambique and Ivory Coast last year, Corus will be able to get the benefits only after three or four years when the mines are developed.

As per report, TATA Steel is now eyeing mines that are at a fairly developed stage and can be brought to production in 6 to 12 months.

The TATA Steel group, comprising TATA Steel, Corus, NatSteel and TATA Steel Thailand, has set a target to double return on investment in the next 4 years. Captive mines will be the biggest driver if the group wants to achieve this. The group’s overall profitability will also depend on how soon it gets the captive mines.

Indsil and GoodEarth inks JV for mining manganese ore in Indonesia

Indsil Electrosmelts Limited announced that it has signed a JV agreement with Nagpur based GoodEarth Group of Companies on March 7th 2008 to jointly operate an already acquired manganese ore mine in Indonesia.

The mine was acquired by Good Earth in November 2007. The mine is spread across an extent of 5000 hectares and has rich resources of high grade manganese ore. It is estimated that the manganese ore resources in this mine would be around 3 million tonnes of medium and high grade variety. Detailed geological surveys are being conducted for the purpose of accurate assessment. Estimated production from this mine is around 300,000 tonnes per annum.

As per the agreement, the manganese ore would primarily be sold to the group companies for captive usage and surplus material marketed across the globe.

Mr Vinod Narasimhan MD of Indsil Electrosmelts said that “We are large users of manganese ore, as Indsil is engaged in the manufacture of manganese alloys. The Good Earth group is engaged in the manufacture of manganese based chemicals. They also have significant business interest in mining resources, both in India and Indonesia. We would, through this joint venture, operate the acquired manganese ore mine.”

He said “Investment would happen in three phases. We propose to mine out of three pockets and in the first phase, we will start in about 100 hectares on an outlay of USD 1.5 million. The second phase of investment of USD 3 million will commence in September in 200 hectares and in the final phase, we propose to invest USD 3 to USD 4 million for mining in about 300 hectares.”

The JV is also setting up a wholly owned subsidiary in Indonesia for buying manganese ore mines.

Mazagon Dock plans to set up design office

PTI reported that Mazagon Dock is planning to set up a design office in collaboration with a foreign partner.

Mr Krishnan CMD of Mazagon Dock said that as a first step, Mazagon would float a bid to appoint a consultant to guide it through various stages of this business.

He added that "We are looking for a foreign partner who is superior to us and we might re enter offshore development."

In the past, Mazagon Dock was into offshore development and has developed over 65 platforms for ONGC. It has laid out a modernization plan for INR 500 crore by 2010. At present, Mazagon can make 6 ships at a time and with the modernization of the wet basin, it can make up to 10 ships at a time.

Jharkhand to set up 3 new thermal power projects

Ranchi Express reported that Jharkhand government has decided to set up at least 3 new mega thermal power projects, each with 1200 MW production capacity at Banhardi, Urma Pahari Tola and Tenughat that will be completed within the next couple of years.

Jharkhand State Electricity Board at the same time initiated serious efforts to ensure regular power supply across the state during this summer. The board has claimed that the state would never experience power crisis this summer after the commencement of power production from the second unit of Tenughat Thermal power station from May 2008.

Mr Brijmohan Verma chairman of JSEB said that the state had no dearth of power and the reason behind the chronic crisis is not the generation of electricity. But the continuous snags in the transmission and distribution system are the perennial problems.

HZL raises lead prices by INR 1300 per tonne

Hindustan Zinc Limited recently announced that it had raised lead prices by INR 1,300 to INR 149,600 per tonne with effect from March 8th 2008.

Zinc prices were unchanged at INR 127,300 per tonne.

Hinduja, M&M and Bharat Forge in race for ThyssenKrupp forging unit

BS reported that Hindujas, Mahindra & Mahindra and Bharat Forge are set to join the race for the main forging unit of Germany's ThyssenKrupp in a deal worth USD 1 billion.

As per report, the forging line has a turnover of over USD 800 million and ThyssenKrupp is looking for a premium of 30% to 40%. The forgings unit belongs to ThyssenKrupp Technologies, a subsidiary of ThyssenKrupp AG. It had sold its precision forging business to the Delhi based Sona Group for an undisclosed amount in January 2008.

ThyssenKrupp denied the move in an email response, but the Hinduja group confirmed that it has initiated talks with investment bankers for the acquisition. Mr Hemant Luthra president of M&M said that it did not want to comment and Bharat Forge did not respond to queries on the deal.

Mr Prabal Banerji CFO of Hinduja Group said that “An investment banker has approached us for the deal. Talks are at an initial stage and we have to see if the deal is strategic to us.”

As per report, Bharat Forge is likely to be the most aggressive bidder for the unit which would make it the company world’s largest player in the forging business.

RIL to ink JV with CIL for new CTL project

It is reported that Reliance Industries Limited is considering signing a JV agreement with Coal India Limited for its proposed coal to liquid project for synthesizing 80,000 barrels a day of oil from coal.

As per report, RIL has already written to the government, asking for coal acreages that can supply approximately 30 million tonnes a year and has sought mines with a total reserve of 1,500 million tonnes under the operational area of Mahanadi Coalfields that are mostly open cast mines.

Reliance sees the coal to liquid project as an area where it can leverage its expertise and leadership position in the petrochemicals business in India. A back of envelope calculation suggests an investment of over USD 5 billion in a project of this size.

The JV plan with CIL is the second public private proposal for coal to liquid projects. Indian Oil Corporation had last month requested external affairs minister Mr Pranab Mukherjee to flag to his South African counterpart a possible partnership in the tie up the TATA Group has with Sasol for a similar project.

The rush for coal to liquid projects comes in the wake of the new policy wherein projects for producing gas or oil from coal have been given the status of end use. This makes firms interested in setting up such projects to apply for coalmines for captive mining.

NTPC's Sipat project delayed due to water supply

PTI reported that an INR 12,000 crore Sipat power plant by National Thermal Power Corporation, that could have eased electricity deficit in western states, is idling despite completion due to Chhattisgarh government reneging on its commitment to supply water.

Mr T Sankaralingam CMD of NTPC said that it was to commission the first unit of 500 MW in October 2007 but had to put it on hold following the Chhattisgarh government's decision to revoke the sanction of water for the plant. He added that "There is already a delay of five months because of the water issue with the state government."

Mr Sankaralingam said that the second unit of 500 MW would have been commissioned in March 2008 or early April 2008 to partly meet summer power demand of Maharashtra, Goa, Madhya Pradesh, Gujarat and Chhattisgarh. But, the schedule has gone haywire due to the state government decision that has already led to a rise of INR 19 crore a month in capital cost on account of interest for the construction period.

Mr Sankaralingam further added that the state government stopped water supply to the plant in May 2007, alleging non drawl of water from the allocated reservoir within the agreed period.

Lack of water has prompted NTPC to approach officials at the centre and in Chhattisgarh to get the 500 MW units at the Sipat power plant on stream. The project will have a capacity of 3,000 MW when fully commissioned.

RIL to surrender 3 blocks in Kerala Konkan basin – Report

BL reported that Reliance Industries Limited is set to surrender 3 blocks in the Kerala Konkan basin as the government deciding against granting special status to these blocks.

Both RIL and ONGC had sought special R&D status for their blocks in region which would have given them 5 additional years for undertaking exploration and production activities. According to the exploration companies, special status was being sought for these blocks because exploration in the Kerala Konkan basin requires a completely different approach from the traditional methodology due to volcanic emplacements. Besides, the difficult geological conditions make it tough for the companies to undertake exploration activities as it requires more time and advanced technological application.

Mr PMS Prasad president & CEO of RIL said that “It is yet to officially communicate to the government, but it has taken a decision to surrender these blocks.” He added that RIL has 7 blocks in the basin out of which, in 3 blocks it has already completed more work than what has been committed under the minimum work program.

The decision not to grant special status to the blocks in Kerala Konkan basin was taken by an empowered committee of secretaries. It felt that considering the request would set a wrong precedent. Besides, grant of a special status to these blocks cannot be done without the cabinet's nod as R&D status would extend the exploration period beyond the stipulated time frame.

According to the NELP provisions, the total exploration period cannot exceed seven years for a shallow water block and eight years for a deep water block. The blocks located in the Kerala Konkan basin are deep-water blocks and require deep water oil rigs which are currently in short supply. The special status would have given both firms additional five years, by which time, the availability of rigs would have improved. ONGC has 10 blocks in the region. It has already relinquished three blocks in the basin.

Vale halts iron ore rail transport due to MST blockades

Bloomberg reported that Cia Vale do Rio Doce said that activists have blocked a railroad that transports 300,000 tonnes of iron ore daily between the state of Minas Gerais and the Vitoria port in Brazil.

It said “Shipments were halted after about 600 militants connected to the Landless Rural Workers Movement vandalized signs and blocked the Vitoria-Minas railroad in the city of Resplendor.”

The rural workers group, demanding more land for small farmers and an end to the use of gene modified crops, attacked a Monsanto Co. research unit in Sao Paulo state March 7th 2008 and Vale's office of reforestation in Maranhao state the next day. MST said March 4 that about 900 female activists destroyed four hectares of industrial eucalyptus plantations cultivated by Finland's Stora Enso Oyj in southern Brazil.

The 905 kilometer railroad is one of two major ore transport routes used by Vale.

Eramet plans new defenses against takeover

Thomson Financial reported that Eramet will ask shareholders at an EGM on April 16th 2008 to approve motions giving the board new powers to act in defense of the company in the event of a takeover bid.

As per report, the measures would include allowing the directors to issue new shares equivalent to up to 10% of capital.

Eramet shares have soared by 250% from a low of EUR 135 last March, lifted by a sharp rise in manganese prices but also by takeover speculation amid talk that the Duval family may sell its 37% stake.

Areva, with 26%, has been seen as the likeliest bidder.

Nisshin Steel raises SS prices by 10% on increased costs

Nikkei reported that Nisshin Steel Company has raised prices by as much as 10% with effect from April 1st 2008 to cover costs for fuel, iron ore and other materials.

Mr Naoyuki Kuroda a spokesman of Nisshin Steel said that the price of stainless steel sheet will be raised by about 5% or JPY 20,000 a tonne while, sheets using chrome will cost JPY 30,000 a tonne or up by 10%.

Iron ore price negotiations – Vale settles with Corus

Companhia Vale do Rio Doce the world’s largest iron ore producer, announced that it has concluded the iron ore fines price negotiations for 2008 with Corus Group one of the largest European steelmaker.

As an outcome of these negotiations, the iron ore prices for Southern System fines, FOB Tubarão increased by 65% relatively to 2007, while the price for Carajás iron ore fines, FOB Ponta da Madeira increased by 66% relatively to 2007. Therefore, the new reference prices per dry metric ton Fe unit for 2008 are USD 1.3441 for SSF and USD 1.4060 for SFCJ.

The released added that the iron ore price settlement with large high-quality companies and traditional customers such Corus is an evidence of our commitment to the benchmark pricing system, respecting the weight of the long term relationship and trust involved in these negotiations.

Newcastle Port cuts export quotas for Q2

Reuters reported that largest coal terminal Australia's Newcastle Port has cut shipping allocations to producers in the second quarter a bid to reduce rising ship queues and waiting times.

Port Waratah Coal Services, operator of the port, notified producers on Thursday that the port would cut allocations by 1.1 million tonnes in the second quarter.

PWCS, which reinstated a capacity balancing system in May 2007, has cut export allocations twice so far this year. The latest reduction will trim 2008 shipping quotas to 92.9 million tonnes, from a previously declared 95 million tonnes.

The CBS system provides all coal producers with an equal pro rata share of available coal chain capacity and matches vessel arrivals with capacity so that excessive vessel queuing is eliminated.

The cut in quotas could put further pressure on tight global supplies.

Western Canadian Coal completes Falls Mountain deal

Western Canadian Coal Corp announced that it has entered into an amendment to the terms of the conditional agreement between the Company and Cambrian Mining plc for the sale of Falls Mountain Coal Inc to Western.

Under the previously announced terms, Cambrian will sell Falls Mountain Coal to Western for consideration consisting of 18.74 million common shares of Western and a deferred payment of about CAD 14.06 million at Cambrian's election to be paid in cash or by the issuance of 9 million common shares of Western.

Western and Cambrian have agreed to amend the agreement to reduce the number of shares to be issued in the event the deferred payment is at Cambrian's election made in shares from 9 million common shares to about 4.53 million common shares of Western.

In addition, the completion of the sale of FMC will be conditional upon Western having obtained all necessary regulatory and shareholder approvals for the agreement previously announced on December 3, 2007 to amend the conversion rate under the CAD 5 million convertible loan which Western agreed to in exchange for Cambrian waiving its rights to repayment of its loan, setting the interest rate at 8.5% per annum, waiving payment of a CAD 125,000 fee and releasing the security granted in respect of the loan.

Vallourec & Sumitomo Brasil orders PQF seamless mill

Vallourec & Sumitomo Tubos do Brasil has awarded a contract to SMS Meer for supply of a new premium quality finish seamless tube plant of 600,000 tonnes per annum capacity for production of upto 16” diameter seamless OCTG pipes. The plant, to be built in the state of Minas Gerais, is scheduled to start production in 2010.

SMS Meer is to supply all the key components of the mill equipment for the PQF® plant, including the media systems and the technological automation. The scope of supply also includes the project management, the supervision of erection and commissioning and the training of the operating personnel.

The heart of the plant, the PQF® mill, will be equipped with individual roll drive and an all hydraulic roll adjustment system. In order to ensure the constant premium quality, the whole PQF® plant is monitored and controlled by the CARTA® technology system and the LASUS® wall-thickness measuring system. Both systems are developments from SMS Meer.

The new PQF® plant forms part of a new state-of-the-art integrated steel works and pipe mill that will strengthen the competitiveness of Vallourec and Sumitomo Metals in an expanding market.

CSC Q2 price hike details

On March 6th 2008, Taiwanese steel major China Steel Corporation held the domestic pricing meeting of the 2nd quarter of 2008 and announced the price increase adjustment as shown in the following table.

TWD per tonne

The average increase of CSC’s domestic steel price per metric ton is about TWD 4,200 per tonne

CSC said that “In line with the steel price rally of global steel mills, CSC expects that the price gap between the domestic market and many global ones will be narrowed to a reasonable range through this price adjustment. However, in view of maintaining the competitive advantages of downstream customers, the price adjustment does not fully reflect the inflated costs of raw materials. In addition, CSC will continue to reduce export volume to meet the strong domestic demand.”

Corus plans to cut dust emissions at Scunthorpe

It is reported that plans have been submitted by Corus for the go ahead on a EUR 9 million plus development aimed at cutting down dust emissions from the Scunthorpe steelworks. North Lincolnshire Council has been asked to approve the building of a filter plant and re agent building on the 2,000 acre site.

As per report the investment will see ventilation improvements carried out at the two desulphurization and two hot metal pour stations in the basic oxygen steelmaking plant. A new building for the storage of magnesium and lime, which is fed into the steel making ladles, is also part of the investment.

Mr Grahame Wallace project manager of Corus said "This significant investment will help us reduce the dust emissions from the site, and demonstrates that we take our environmental responsibility seriously. He said "We are continually exploring new ways to reduce and, where possible, prevent emissions as well as introducing sustainable practices across the business."

Local planners have been told the main purpose of the work is to reduce the amount of dust being emitted into the atmosphere. Airborne dust particles will be collected and transported through ductwork to a filter plant, where the dust will be extracted and stored. The dust will then be recycled to help increase productivity at an existing facility on the works.

The multi million pound investments is the biggest spend in Scunthorpe since the TATA takeover in April 2008 and is said to underline the company's commitment to safeguarding the environment.

Steel sector investments in South Korea to hit record

Korea Times reported that the South Korean steel industry is expected to spend the largest ever amount of money on new plants and equipment in 2008 to meet growing domestic demand.

The Korea Iron & Steel Association said facility investments by its 33 member companies are predicted to reach a record KRW 7.06 trillion this year up by 63.2% from last year. It said "The jump in capital spending is based on expectations that domestic demand will remain strong, despite sharp increases in international prices for iron ore and scrap."

According to the association said Capital spending by the integrated steel sector is likely to increase 21.3% YoY to KRW 2.9 trillion.

An association official said the local steel industry should make more facility investments to maintain growth momentum, stay competitive and overcome unfavorable external factors such as high raw material costs and competition from China. The official said "I believe this trend will continue for the next several years, based on the large investments that have been planned so far."

Japan mulls axing import tax on high carbon ferrochrome

Rusmet.com last month reported that Japan's finance ministry is proposing abolishing the 5.37% import duty on high carbon ferro chrome as stainless steel producers struggle to cope with soaring raw material costs.

The report quoted a senior finance ministry official of Japan as saying that "Japanese domestic production of high carbon ferro chrome ceased in 2003 and there is little chance of it ever restarting. Hence, the need for the duty, which was originally introduced to protect domestic producers, has essentially been rendered redundant.”

The ministry estimates that canceling the duty will save consumers mainly stainless steel producers some JPY 4 billion annually in raw material costs.

The request to do away with the duty was originally made by ministry of economy, trade and industry in June 2007 on behalf of its stainless steel producers, noting that they were facing huge cost pressures as the price of ferro alloys soar. The adoption of the proposal is a major victory for stainless steel producers.

A senior official at ministry of economy, trade & industry said that "It will probably be very difficult to persuade the ministry of finance to scrap the duties. We greatly welcome the ministry of finance's decision to adopt the measure, especially given the massive increase in ferrochrome prices in the past couple of years."

The measure will come into effect on April 1st 2008 if approved by Japan's parliament. However, the finance ministry has warned that there is no guarantee that its recommendations will be accepted by the Diet.

Vietnam to retain titanium for domestic production from 2009

It is reported that Vietnam wants to retain titanium for domestic production and has added titanium ore to a list of raw materials it wants to retain for domestic production.

In a statement issued at the weekend, Mr Hoang Trung Hai deputy prime minister of Vietnam asked the industry & trade ministry to amend a circular so that titanium ore can be exported until the end of 2008 and from 2009 the mined product will serve domestic production.

A senior official at the Titanium Industry Council of China Nonferrous Metal Industry Association said that "It will have a big impact on the industry, since imported titanium ore counts for about one third of the consumption in China." He added that 90% of titanium in China is used for pigment production and 10% for titanium metal, used for high-strength, lightweight metal alloys.

Mr Nguyen Tan Dung Prime Minister of Vietnam said that of would invest VND 2 trillion until 2015 in exploration, tapping and building three mills for titanium sponge, purified ilmenite ore and white pigment.

Coking coal prices will spike much higher – Pike River Coal

Pike River Coal, in its new report “Black Gold – Coal That Is”, said that further reports are backing its view that coking coal prices will spike much higher in northern hemisphere benchmark negotiations.

Pike River Coal miner's forecasts for 2008 were based on a coal price of USD 130 a tonne, but Australian based Xstrata Coal has said initial negotiating prices are starting much higher.

The Black Gold report by Citigroup's Citi Investment Research division said that it expects the 2008-09 annual contract prices for both thermal coking and coking coal to double in the ongoing round of negotiations. It added that "Coking coal is expected to increase to USD 200 a tonne up from USD 95 a tonne."

Mr John Dow chairman of Pike River Coal said that the report was another indication that higher prices were being talked about. Australian firms supplying Japanese steel mills usually set the international price, with other producers including the BHP Billiton Mitsubishi Alliance, Rio Tinto and Anglo Coal Australia. He added that "Negotiations are still under way. Really what you have seen is other people's estimates of where they think the market will eventually settle, but there has not yet been any settlement."

The Citi report noted supply problems. Tight markets are being further squeezed by new developments, floods in Queensland, power crises in China and South Africa are amplifying upward pressure on prices this year. It has also increased its long term estimate for hard coking coal to USD 120 a tonne.

US steel imports in January up by 33% MoM

According to preliminary Census Bureau data, American Institute for International Steel reported that US imports in January 2008 up by 33% MoM over December 2007, but remained down by 10% YoY as compared to January 2007.

According to YTD figures, imports decreased by 9.9% YoY to from to 2.657 million tons in 2008 from 2.949 million tons in 2007.

In '000 short tons

Mr David Phelps president of AIIS said that "While demand for steel is slowly improving in the US market, imports declined precipitously in November due to the weak dollar, high freight rates and prices in the US market that had not as yet become attractive to foreign mills when these products were ordered 3 to 5 months ago."

Mr Phelps added that “Current market conditions in most US steel markets are improving and so we believe that in the New Year, import ordering will slowly improve.”

Banpu Q4 2007 earning up by 69% YoY

Thai coal miner Banpu BANP BK has posted earnings of THB 1.98 billion in October to December 2007 quarter up by 69.2% YoY as against THB 1.17 billion in October to December 2006 quarter. It also posted an 84% YoY rise in net profit to THB 6.65 billion as against a forecast THB 6.6 billion.

Banpu posted 2007 sales of THB 32.4 billion down by 2.8% YoY, but earnings before interest and tax surged by 60.8% YoY to THB 9.72 billion.

Banpu, which has diversified into coal based power output, booked a THB 1.16 billion gain from the divestment of its PT Indo Tambangraya Megah Tbk subsidiary and THB 452 million from selling some of its 10% stake in Lanna Resources LANN.BK.

Banpu has 5 mines in Indonesia and operates 2 each in China and Thailand. It also has stakes in 3 power plants in China and a 50% stake in 1,400 MW Thai power producer BLCP.

South African SS growth slows but trend remains positive

Southern Africa Stainless Steel Development Association reported that South African stainless steel industry grew up by just over 1% YoY in to a total apparent consumption of 197,070 tonnes as against 194,916 tonnes in 2006 figure of.

Total imports, which accounted for 31% of total apparent consumption, slowed during 2007, with consumer product imports down substantially, suggesting slowing consumer spending. Flat rolled imports decreased by 20% and consumer ware by 23%. Consistently, 79% of finished goods imports come from China, India and Taiwan.

Overall exports were flat with primary product at 506,410 tonnes down by 2% YoY from 515,424 tonnes in 2006 and finished product at 76,870 tonnes up by 15% YoY from 66,645 tonnes from 2006. In particular, flat rolled steel grew up by only 1% YoY, automotive products by a remarkable 19% YoY and tubular products up by 81% YoY.

Mr Michael Campbell MD of SASSDA said that after a strong first half of 2007, growth in apparent consumption had slowed as a result of higher stocks and material price levels and nickel price volatility. He added that "While growth slowed in 2007, South Africa’s apparent consumption growth of 8.1% between 1991 and 2007 still comfortably outperformed average world growth."

Mr Campbell added that there had been strong growth in both the transport and capital equipment and general engineering sectors during 2007. He said "The latter was positively influenced by buoyant capital projects activity across a range of sectors, including petrochemicals, mining and materials handling, food and beverage."

Mr Campbell said that indications are that the overall growth outlook for the local industry remains positive as a result of lower stainless steel price levels and continuing strong demand for stainless steel from capital projects in South Africa.

Vinashin POSCO steel project at Van Phong under cloud

VietnamNet reported that representative of the Central Party Committee Office met with the Ho Chi Min City Oceanic Science and Technology Association last month to collect opinions of top scientists about the licensing of the Vinashin POSCO steel plant on the potential site of the Van Phong international container transit port at Hon Ong in Khanh Hoa province.

Mr Le Ke Lam chairman of the Ho Chi Min City Oceanic Science & Technology Association said that Van Phong Bay has an extremely important position in terms of economics and defense. This is the only site in Vietnam with the conditions necessary to build a large international transshipment port capable of competing with Hong Kong and Singapore. The bay is also large enough for naval operations, so it should not allow a project that has adverse impacts on the area.

Other members of the HCM City Oceanic Science & Technology Association shared the general’s viewpoint, saying that the South Korean-invested POSCO steel factory will cover up to 969ha of land, meaning the area devoted to the transshipment port will be too narrow. Moreover, a steel plant poses a high risk of environmental pollution.

Vietnam Shipping Lines Corporation previously planned to start construction of the Van Phong transshipment port on January 25th 2008. However, South Korea’s POSCO group asked the government’s permission to build a USD 5.8 billion steel factory on 960 hectare of land in the central area of Hon Gom peninsula in Van Phong Bay.

Previously the Vietnam Maritime Administration proposed that the Government and the Ministry of Transportation assign the Administration to seek and introduce another appropriate site for the POSCO steel project.

Japan to hike HR export prices

Japan has settled the export price of HR coil for the second quarter to the Middle East areas and Latin America, as the new price becomes USD 800 per tonne on FOB basis.

Besides, price of hot dip galvanized sheet for construction usage reached as high as USD 1,000 per tonne and cold rolled sheet was at USD 900 per tonne.

In the second half year of 2007, Japan’s export price of HR coil was USD 700 per tonne.

Churchill Mining begins study for East Kutai coal project

Churchill announced recently that, as part of its ongoing activities at the East Kutai Coal Project, it has appointed a number of new technical advisors as its moves forward in accessing and designing a development plan for the project.

At the suggestion of the Company's previous independent geological consultants SRK, Churchill has appointed SMG Consultants to complete the ongoing JORC resource statement for the EKCP. The first stage of the JORC resource statement is still on schedule for release in April 2008.

The Company has also appointed the Australian Canadian owned, Trans Tek Engineering, to immediately commence a General Scoping Study on the EKCP. The study is broadly based and will consider all aspects of possible mining facilities, transportation infrastructure to port, ship loading and port facilities.

Mr Paul G Mazak MD of Churchill's said that "The appointment of skilled international consultants actually based permanently in Indonesia will be of great benefit to Churchill in managing the EKCP development program on a daily basis."

CSC update for February 2008 production

Taiwanese steel major China Steel Corporation has given the following update on production during February – 2008

In tonnes

In million TWD

CSC said that revenue of February 2008 shrunk MOM due to fewer working days for shipments delivery

Abbot Point Coal Terminal to get AUD 163 million overhaul

It is reported that Australian state Government has given the go ahead for two new projects worth AUD 163 million at Abbot Point Coal Terminal north of Bowen.

Ms Anna Bligh premier of Australia recently said that the Abbot Point Coal Terminal will play a key part in Queensland and Australia's coal transport infrastructure. Ms Anna Bligh said Abbot Point is emerging as a significant port precinct in Queensland and would play an increasingly influential role in meeting the needs of a booming coal industry.

She said "The State Government's go ahead for the AUD 95 million X25 expansion project will take capacity at the terminal from 21 million tonnes per annum to 25 million tonnes. In addition, AUD 68 million will also go to upgrade the existing stockyard system."

As per report over 120 workers will be employed in the project with work on the X25 project to commence in July and be completed by mid 2009. The yard refurbishment work is due to start soon and be completed by the end of 2008.

The X25 project will include:
1. Fitting out the existing second rail in load pit with infrastructure to become operational, including rail beams, steel hoppers, vibrating feeder system etc.
2. Install a new in loading conveyor system from the second pit to the stockyard.
3. Improve the capacity of the existing stockyard conveyors servicing Bund 1.
4. Improve the existing out loading conveyors with new drives and pulleys and in some cases install wider conveyor belts.

Ports Corporation Queensland has completed the engineering design and an Environmental Impact Study for further expansion to take the terminal's capacity to 50 million tonnes per annum.

Fording Canadian to explore possible sale of the trust

The Canadian Press reported that Fording Canadian Coal Trust has put itself up for possible sale citing pending changes to the taxation of trusts in 2011 and consolidation in the mining sector.

Fording Canadian Coal Trust, whose earnings have been hit by a weak American dollar and lower coal prices, said it has hired two independent committees to explore alternatives for the trust and given them a broad mandate "to consider a wide range of alternatives.

Fording said options include selling its outstanding shares to a third party or a sale of its assets, including its interest in the Elk Valley Coal Partnership. A reorganization or business combination is also possible. It said "The trustees and board believe that this initiative is timely, particularly given the pending change in the taxable status of income trusts in 2011 and continuing consolidation in the trust sector as well as in the metals and mining sector."

RBC Capital Markets has been hired to assist in the review.

Fording, world's second largest supplier of hard coking coal shipped by sea, recently reported third quarter profit fell 27% due to lower coal prices and a weak greenback

G4G Resources and Iron Mineral Beneficiation Services ink Finesmelt JV

G4G Resources Ltd has announced the execution of a MoU with Iron Mineral Beneficiation Services to establish a JV to utilize FinesmeltTM technology a process which converts superfine iron ore into high quality iron units. G4G Resources is also exploring the possibility of expanding the relationship through the acquisition of equity in IMBS.

With the MOU in hand, G4G Resources will now proceed to the next step of the project, which will include initiating a scoping study on the economic viability of a FinesmeltTM project.

Mr Peter Arendt president & CEO of G4G Resources Ltd said "Due to the high demand for scrap materials used in the production of commercial iron and steel, supply of alternative iron units is critical to meet the demands of the steel industry. The FinesmeltTM process has the potential to deliver iron units well below average costs and will play a major role in supplying high quality feed stock to the steel industry throughout the world."

Mr John Beachy head & CEO of IMBS said "This is an exciting strategic development that will give G4G the opportunity to generate cash flow. We are excited that G4G will bring significant resource to IMBS' business, which is closely aligned with our global roll out strategy."

The FinesmeltTM process manufactures metallic iron units for use in traditional blast and electric arc furnaces. Benefits of this technology include:
1. Low capital cost
2. Capacity to process iron ore waste dumps and tailings
3. Ability to process superfine iron ore
4. Ability to generate up to 85% of electricity requirements
5. Substantial savings in production costs
6. Modular design allows ease of deployment and structured scalability

IMBS and the Industrial Development Corporation of South Africa will build the first commercial scale plant using FinesmeltTM beneficiation technology. The plant will be located of Nigel at Gauteng in South Africa and aims to produce 48,000 tonnes of Hot Briquetted Iron and 24,000 tonnes of ferrochrome per year, commencing in January 2009. Thereafter, a larger scale production plant with an initial capacity to produce a minimum of 500,000 tons of iron units per year will be commissioned in partnership with a large iron ore producer.

G4G Resources is a Canadian based mineral exploration and development company focused on base metal projects. The Company is actively evaluating a number of partnership and acquisition opportunities to create and enhance shareholder value.

Aquila Resources lifts iron ore resources by 85.3%

It is reported that Aquila Resources announced recently that it had boosted its total iron ore resources to 493 million tons up by 85.3% on an initial estimate released in May 2007. Aquila said 70% of the total resource was classified as either measured or indicated increasing confidence that it would be able to be mined.

Aquila Resources said that as a result of drilling in 2007, three new deposits had been added and it had boosted the resources of previous deposits. It said “Cardo Bore North, Kens Bore and Trinity Bore, have been added to the May 2007 resource statement whilst re-estimates of the Catho Well and Upper Cane deposits have been completed following infill and extension drilling.”

Aquila said “The significant program of infill drilling completed at the Upper Cane deposit has resulted in 56 million tonnes being classified as measured. It said the increase in resource tonnes was primarily attributable to the evaluation of the Kens Bore and Trinity Bore deposits, adding 118.9 and 34.8 million tonnes respectively.”

Aquila said “Significant potential remains at both Kens Bore and Trinity Bore deposits to expand the resources, especially to the south of the identified Trinity Bore resource.”

Aquila Resources added that further potential remained in additional targets within the Red Hill and Mt Stuart JV areas. In addition, there is significant potential in the remaining 6,000 square kilometers of tenements available to API in the West Pilbara.

US Steel disappointed by Indiana court of appeals ruling

United States Steel Corporation has announced that the Indiana Court of Appeals reversed a previous decision of the Indiana Utilities Regulatory Commission involving a rate escalation provision in US Steel's electric power supply contract with Northern Indiana Public Service Company.

The decision, handed down by the Court held that a rate provision in a 1999 agreement between the parties applied to certain electric demand charges since October 1st 2005 that will continue until July 2009 and remanded the case to the IURC for calculation of the charges.

US Steel is surprised and disappointed over the outcome of the case, which it had won on a summary judgment motion before the IURC. US Steel intends to seek a review of this decision by the Indiana Supreme Court, but expects to establish a pre tax reserve of approximately USD 45 million in its first quarter results related to prior year effects.

OECD list 41 countries as tax havens

Data from the Organization for Economic Cooperation & Development points to 41 countries as having tax haven status according to 4 criteria namely insignificant or non existent tax levels, absence of transparency in tax matters, absence of fiscal data exchange with other countries and attractiveness for straw companies with fictitious activities.

Some jurisdictions have taken steps to boost transparency in their dealings with the OECD, which seeks to coordinate economic policies among the world's leading industrialized nations. Others, notably Liechtenstein, Andora and Monaco, exchange no information with other states. However, of the total, 38 countries have made commitments to the OECD to ensure transparency and to exchange data. They are

1) Anguilla
2) Antigua & Barbuda
3) Dutch Antilles
4) Aruba
5) The Bahamas
6) Bahrain
7) Barbados
8) Belize
9) Bermuda
10) Cyprus
11) Dominica
12) Gibraltar
13) Grenada
14) Guernsey
15) Cayman Islands
16) Cook Islands
17) Isle of Man
18) Marshall Islands
19) Mauritius
20) British Virgin Islands
21) US Virgin Islands
22) Jersey
23) Liberia
24) Maldives
25) Malta
26) Montserrat
27) Nauru
28) Niue
29) Panama
30) Samoa
31) Saint Kitts et Nevis
32) Saint Lucia
33) Saint Martin
34) Saint Vincent & the Grenadines
35) Seychelles
36) Tonga
37) Turks et Caicos
38) Vanuatu

The OECD has labeled 3 states as non cooperative. They are
1) Andorra
2) Liechtenstein
3) Monaco

UK coal users cut imports from SA over US sources

Bloomberg reported that UK power producers are avoiding coal supplies from South Africa in favor of imports from North America, South America and Australia to comply with tighter restrictions on emissions of nitrogen oxides.

According to data published on a Web site of the UK government office that collects tax, South Africa fell more than 45% in the Q4 to 2.1 million tonnes from 3.9 million tonnes in the year earlier period. South African supplies fell to less than 20% of total imports, from 30% in the Q4 of 2006, as shipments rose from the US, Canada and Colombia. Coal supplies to the UK from Australia rose by 30% in the fourth quarter to 1.3 million tonnes. Deliveries of the fuel from Colombia increased by 32%, reaching 1.3 million tonnes. Cargoes from Canada and the US rose by 30% and 18% to 400,000 tonnes and 600,000 tonnes respectively

British power generators had to cut emissions of sulfur dioxide and nitrogen oxides as of January 1 to avoid limits on the number of hours their coal fed plants may run. This can be achieved by installing equipment that removes the emissions, by burning less coal, or by using coal that burns with lower emissions of the oxides, known as SOX and NOX.

Mr Nigel Yaxley MD of the London based Association of UK Coal Importers said that “The issue with South African coal is the performance in terms of NOX. People were positioning themselves in advance of the NOX requirements.'' Mr Yaxley said that more than a quarter of coal burned for power in Europe is shipped from South Africa. Prices at Richards Bay rose to records in 2007 on increased Indian demand and rail and port constraints. He added that "We do not use much South African coal. We've always used Colombian and Australian coal when we have imported it.''

Mr Yaxley said that Russian coal, which made up 40% of the UK's imports in the fourth quarter, is becoming the default coal, because it is more convenient to transport, has low sulfur emissions and an average NOX performance.

Takara Resources and Aphrodeities Mining form strategic alliance

Takara Resources Inc has announced that since executing a MoU with South African based Aphrodeities Mining Limited in November 2007, the parties have now met certain milestones set out in the MoU in that certain coal projects have now been identified and are currently being evaluated by Takara's South African based coal advisors, CCIC Africa an affiliate of CCIC Canada.

The released added that the primary purpose under the MoU is the formation of the Venus Energy Strategic Alliance, wherein each of Takara a Toronto based mineral exploration company and Aphrodeities, a South African based mineral exploration company are mandated to jointly identify, explore, and/or develop South African mineral projects, primarily in the energy related sector.

The release added that “There is no guarantee that a transaction will be completed in respect of the coal projects that are currently being evaluated; however Takara's participation in the Venus Energy Strategic Alliance shall remain aggressive in further identifying and evaluating opportunities in accordance with the MoU. Each new opportunity identified by the Venus Energy Strategic Alliance shall be evaluated and negotiated on a project by project basis.”

For Takara, it represents a timely opportunity to access coal projects, particularly given the escalating global demand for coal. By combining the respective resources of Takara and Aphrodeities, the Venus Energy Strategic Alliance is strengthened in terms of access to local South African projects, corporate capability, understanding of the South African Department of Minerals and Energy permitting system, and geological expertise.

Kardemir to supply high quality rail for Turkish railways

Zaman reported that Kardemir is named the producer of the high quality rail to be used in the modernization of Turkey’s railroad network in the Turkish State Railways’ 2008 plan.

According to the plan, 500 kilometers of track will be renovated in 2008, with maintenance carried out on a further 500 kilometers.

Kardemir started producing 72 meter long rails after launch of its new rolling plant. Kardemir provided 25,000 tonnes of rail to TCDD and this year will produce the rail necessary for high speed trains as well as subways in addition to standard track.

KEC International bags mega TLT contract in Saudi Arab

Indian TLT major KEC International Limited announced that it has won the single largest contract in the Company's history.

KEC has signed this contract with Saudi Electric Company as part of the consortium of Al Sharif KEC. Valued at SAR 454.4 million (USD 120.73 million). Al Sharif KEC has been mandated by Saudi Electric Company South Region, to construct a 380 KV transmission line on a turnkey basis.

KEC will design, engineer, procure, supply, delivery, construct, install, testing and commissioning a new 380 KV DC OHL between Shoaibah-2 P/P 380KV S/S in WOA to the proposed Namerah North 380KV BSP in SOA, a total line route length of 268 Km.

Mr Ramesh Chandak MD & CEO of KEC International Ltd said "The size of this win underlines KEC's status as a global leader in the Transmission EPC player space. This win is our single largest win, in dollar terms, ever. I am delighted with the growth in our international operations.”

Reliance Industries to set up petrochemical unit in Qatar

Gulf Times reported that Reliance Industries is keen to set up a petrochemical complex in Qatar especially for polymer production.

Mr RP Sharma president of Reliance Industries said that it is definitely interested in establishing a world scale petrochemical complex in Qatar. He added that "India consumes a lot of polymer and is a huge market."

Earlier, making a presentation on 'Emerging trends in India and China' summit, Mr Sharma said that domestic gas production in the two countries was expected to increase rapidly over the next 15 years. He added that consumption is expected to be growing even faster, making gas imports necessary for both India and China. India also plans to import some 22.5 million tonnes to meet its demand in 2011-12.

Although RIL has been exporting petroleum products overseas, it has been consolidating its international presence. In 2007, it acquired a majority stake and management control of Gulf Africa Petroleum Corporation for an undisclosed sum. Gulf Africa Petroleum has retail distribution network in east African countries.

Updates on recent Arab investments in sub Saharan Africa

Reuters reported that Senegal will host a meeting of the Organization of the Islamic Conference in Dakar on March 13th and March 14th 2008, at a time when many Middle East and North African companies are making large investments in sub Saharan Africa.

Below is a list of some recent Arab investments in metals, mining and infrastructure and oil sectors.

Minerals

1) Qatar Steel took a 50% stake in 2007 in the USD 2.2 billion Guelb al Aouj iron ore project in Mauritania.

2) UAE's Ras Al Khaimah Minerals & Metals Investment Fund said that it would invest up to USD 250 million to develop copper and cobalt production in the Democratic Republic of Congo.

Shipping

1) DP World wrestled a USD 455 million contract to expand Dakar port from France's Bollore, a conglomerate which flourished in Paris' former colonies.

2) Dubai World's unit JAFZA has signed a USD 800 million deal to construct and operate a special economic zone outside the Senegalese capital, offering reduced tax rates and logistics services to companies looking to export to the US and Europe.

3) DP World already manages port terminals in Djibouti's strategically placed harbor which serves the Persian Gulf and Mozambique's port of Maputo.

Oil

1) OiLibya has acquired the service station business of American oil giant Exxon Mobil in 2007.

2) Venessia Petroleum will build a USD 150 million fuel storage facility in Malawi to boost the southern African country's reserves.

3) Middle East based companies are also involved in oil and gas exploration in Tanzania, including Dodsal Resources and Ras Al Khaimah Gas Commission of United Arab Emirates.

4) Dubai based refiner ENOC has storage facilities in Mozambique and Djibouti.

DMCC plans USD 200 million oil storage facility in Dubai

Dubai Multi Commodities Centre, Star Energy Resources and Tropicana Trading DMCC have jointly announced the signing of a framework agreement to build a world class oil products storage facility at Techno Park in Dubai.

The facility will store a wide range of oil products, including gasoline, gas oil, diesel and jet fuel, as well as offer complementary services such as blending. The storage infrastructure facility is expected to service the new airport via a pipeline directly linking the two facilities. In addition, two new oil tanker berths will be built at the western breakwater of Jebel Ali port for easy supplier access, with the capacity to accommodate tankers of up to 80,000 tonnes.

The proposed oil storage terminal will involve an estimated investment of USD 200 million. The final investment decision for the project will be subject to positive results from front end engineering and design study, which will be completed within 6 months' time.

Mr Ahmad Bin Sulayem executive chairman of DMCC said that "Ensuring adequate oil storage facilities is crucial for enhancing Dubai's role as the Middle East's leading oil products trading hub and for accommodating the rapid growth of Dubai's own oil products demand, particularly its need to support a burgeoning civil aviation sector."

Noor and Ikarus plans huge investment in Singapore and India

Reuters reported that Kuwait's Noor Financial Investment Company and Ikarus Petroleum are considering investments of about USD 220 million in Singapore and India.

Mr Naser al Marri MD of Noor Financial said that it is acting as the financial adviser to Ikarus to acquire a 10% stake in the USD 2 billion Jurong petrochemical plant project in Singapore. He added that "The project will be funded USD 500 million from capital and USD 1,500 million from borrowing."

Mr Suheil Abu Quries CEO of Ikarus said that it is yet to decide on the Jurong investment plan. He added that "We are studying the opportunity and will decide in April 2008."

Mr Marri said that Noor is also in talks to acquire 10% of an Indian energy firm in a USD 20 million deal. He added that "We need to bring them to Kuwait and will create a JV in Kuwait."

Project investors include Swiss based commodity trader Glencore, South Korean refiner SK Energy, Chinese polyester producer Jiangsu Sanfangxiang Industrial Group and Jurong Energy Corporation.

OPEC blames US’s mismanaged economy for oil price hike

IRNA reported that OPEC has rejected calls from Mr George W Bush US President to increase oil output citing mismanagement of the American economy as a major factor driving prices up.

OPEC members in its Vienna meeting have decided to leave their production levels unchanged, declaring that the market has plenty of oil already. OPEC also blamed financial speculators and American economic problems, which have helped lower the value of the dollar, for the high oil prices.

Mr Fadel Gheit an oil analyst at Oppenheimer said that "OPEC is angry that President Mr Bush wants them to increase production while the dollar is sinking and the administration is doing nothing about that."

In January 2008, Mr Bush traveled to Saudi Arabia and urged producers to open their taps. But the plea failed to sway OPEC. When the group met in February 2008, it kept its production level unchanged.

With the US economy slowing down, oil prices have risen as investors flee the stock market and seek refuge in hard assets like commodities. The fall in the value of the dollar gives OPEC an incentive to keep prices high since oil is sold in dollars, petroleum producers see the value of their exports decline any time the dollar drops.

Energy firms eying Ankara’s gas distribution

Zaman reported that several energy giants are racing to participate in the privatization of Ankara’s natural gas distribution.

Mr Veysek Karani Demir GM of Ankara Metropolitan Municipality’s Başkent Doğalgaz Dağıtım distribution company said that companies from the US, Russia and Europe will compete for the privatization along with domestic energy giants. He added that "Thirty five firms have acquired the bid specifications for the tender for the distribution rights, which will be held on March 14th 2008."

Some of the major companies that acquired bid specifications are Bosporus Gaz, Zorlu Petrogas, Energaz, Türkerler İnşaat, Gaz Natural, Çalık Enerji, ENBW, Suez Tractebel, Palgaz, HSBC, Yüksel İnşaat, Koç Statoil and JP Morgan. The companies who applied for data room were Merrill Lynch, Bosporus Gaz, Zorlu Petrogas, Gaz de France, Suez-Tractebel, Energaz, Nurol Holding, Çalık Enerji, Gaz Natural, Palgaz, Akfenhes, Güriş, Eni, ENBW, Limak, Elektromed and Unicredit.

Mr Demir said that they had sent letters promoting the tender to Turkish Union of Chambers and Commodity Exchanges, Turkish Foreign Ministry, Turkish Industrialists and Businessmen’s Association, the Independent Industrialists and Businessmen’s Association, municipalities and numerous energy institutions in Europe.

He said that Ankara Municipality will make further investments with the money acquired from this tender after paying its USD 676 million debt to the Turkish Pipeline Corporation and USD 200 million to the Treasury.

Dubal cements 7th rank globally

Dubai Aluminum Company Limited has consolidated its status as the 7th largest aluminum smelter in the world by raising the production capacity of its Jebel Ali plant to 950,000 tonnes per annum.

Mr Abdulla Kalban CEO of Dubal said that “Dubal’s additional production volume provides scope for the company to expand its customer base and grow its sales revenue. Accordingly, we are looking forward to another record breaking year in 2008.”

Dubal had commissioned second phase of its latest expansion project in February 2008. The project entailed a 32 pot, 22,000 million tonnes per annum extension of Potline 5, completed in July 2007 and a 40 pot, 40,000 million tonnes per annum extension of Potline 6. The combined Potline 56b expansion project, completed at a cost of USD 236 million, has brought the number of electrolytic aluminum reduction cells in the plant infrastructure to 1,557 pots, arranged in 8 potlines.

The extension of Potline 6b represents a particular milestone in Dubal’s ongoing quest to develop advanced technologies which can compete with similar technologies on the world market in terms of productivity, capacity and efficiency, while maintaining the highest standards of environmental conservation. The 40 new cells in Potline 6b incorporate Dubal’s proprietary DX technology, which operates at high amperage of more than 340,000 amperes to yield greater productivity of approximately 2.615 tonnes per cell per day.

Dubal’s DX technology is also 5.9% more energy efficient than earlier generation technologies, thus offering environmental advantages. A team of 30 Dubal employees worked on the Potline 6b expansion project, the majority from the operations with the remainder representing the Technology Development department.

Pars Energy to upgrade oil & gas projects in Turkmenistan

Press TV reported that Iran's Pars Energy Company will upgrade a Turkmenistan ferry dock & liquefied gas shipment and construct a railway linking Turkmenbashi to Kyanly.

Mr Gurbanguly Berdimuhamedov president of Turkmenistan has signed a decree asking the Turkmenbashi complex of oil refineries to enter into a contract with Pars Energy in order to develop Turkmenistan oil, gas and petrochemical industries.

The contract is worth USD 29.325 million and the construction should start in April 2008 and the facilities are expected to come on stream in April 2010.

Pars Energy was founded by Iranian capital as a private institution in February 1992 and has established branches in the UAE, extending its activities throughout the UAE, Turkmenistan and Iran.

Pertamina to ink USD 2 billion oil refinery deal with Iran

The Jakarta Post reported that Indonesia's oil & gas company Pertamina is planning to sign a deal with Iran to build a USD 2 billion oil refinery in Indonesia's Banten region.

The oil refinery will have a maximum capacity of 200,000 barrels of oil per day. If the JV materializes, the facility will be the second largest oil refinery in Indonesia.

Mr Ari Soemarno director of Pertamina said that a team from the company's processing and refinery division was on its way to Tehran to meet with representatives of National Iran Oil Company. The team will discuss a number of points before the signing, including the security of the crude oil supply.

Pertamina and National Iran Oil Company had long planned the project but negotiations stalled over a disagreement on the refinery's oil supply.

Progress made in Iraqi oil sector– IMF Survey

Mr Bert Keuppens IMF official on the United Nation’s International Monitoring & Advisory Board said that it cannot say whether all of Iraq’s oil money was properly used but significant progress has been made to improve transparency. He added that more than USD 100 billion has flowed into an Iraq oil fund since it was launched in 2003.

Mr Keuppens said that "Our objective is to be able to report that all oil revenues were used for the benefit of the Iraqi people. Because of many shortcomings in a country that is torn apart by war, IAMB has not been able to unilaterally declare that all oil revenues have been used for the benefit of the Iraqi people. You simply have no control over all oil revenues."

Mr Keuppens said that oil is Iraq’s main source of hard currency needed to rebuild after years of mayhem prompted by a 2003 US led invasion. Proceeds from oil sales pass through the Development Fund for Iraq. In 2007, oil output was around 2 million barrels, of which three fourths were exported, amounting to between USD 25 billion and USD 30 billion a year in sales.

The UN Security Council created the IAMB to watch over the stewardship of Iraq’s natural wealth. It includes representatives from the IMF, the United Nations, the Arab Fund for Economic and Social Development and the World Bank.

Mr Chris Hemus, who heads the IMF’s safeguards assessments division, said there were still concerns about the lack of a proper metering system for Iraq’s oil in the field and controls in the spending ministries. He said that an Iraqi Committee of Financial Experts established in 2006 to follow up on IAMB recommendations for improvements will eventually take over the IAMB’s functions.

Taigang plans USD 4 billion specialty steel plant

Reuters reported that China's largest stainless steel maker Taigang plans to invest CNY 28.5 billion in a specialty steel plant fed by local coal and iron ore. The specialty steel project will be built in Lujiang, also in Shanxi province and will be offset by the closure of 9.64 million tonnes of outmoded steel furnaces. That will allow it to draw on iron ore and coal reserves in the area.

Mr Li Shaobo vice chairman & president of Taigang said that “When completed, the project will have a capacity of 5 million tonnes of silicon steel, galvanized steel and other specialty steel.” He did not give a timetable for the project, which was first proposed in 2004.

Mr Li said Taigang was shielded from rising raw materials prices by its iron ore and chrome holdings and by a 6.5% stake in Jinchuan Group Ltd, which is China's largest nickel producer. He said that "I think funds are pushing up nickel." Nickel futures MNI3 have risen 24.5% since the beginning of 2008 to USD 32,820 a tonne, squeezing margins and pushing stainless steel producers like Taigang to substitute nickel pig iron, a cheaper raw material.

Chinese CRC export prices on up trend last week

It is reported that export offer for CR steel coil have witnessed another jumped last week and it has reached another record level.

Export offers for 1.0mm CRC are prevailing at USD 900 per tonne to USD 910 per tonne FOB, a strong increase of USD 40 per tonne to USD 50 per tonne.

Some traders told Mysteel that they have inked more CRC export contract for delivery to USA and the EU due to higher price in the destinations.

Chinese CRC export volume is on the decrease since August 2007. The export tonnage stood at 115,874 tonnes in January 2008 down sharply from 201,200 million tonnes in December 2007.

(Sourced from MySteel.net)

Herald Resources backs Antam and Zhongjin bid over PT Bumi

It is reported that Australian miner Herald Resources Ltd has backed a bid by Indonesian PT Antam and Chinese Shenzhen Zhongjin Lingnan Nonfemet Co Ltd, trumping rival Indonesian bidder PT Bumi.

Herald Resources, which owns a zinc and lead project in Indonesia, has recommended shareholders accept an offer of around AUD 500 million by the Indonesian and Chinese consortium, made through their vehicle Tango Mining.

It said "Each of the Herald directors intends to accept the Tango offer, in the absence of a superior proposal, but intends to wait until near the end of the Tango offer period to do so.”

Herald Resources said that shareholders should wait until near the end of the offer period before accepting the AUD 2.50 a share deal in a case a better offer emerged.

The Antam-Zhongjin offer is subject to a number of conditions including a minimum 50.1% acceptance and approval from the Foreign Investment Review Board of Australia. Antam has bought a 10.7% stake in Herald Resources and also holds a 20% interest in Herald’s 80% owned Dairi zinc and lead project in Northern Sumatra.

PT Bumi had offered AUD 2.25 a share, a price previously recommended by Herald directors.

Shagang expected to take over Yonggang

China Business Journal reported that China's largest private steel enterprise Jiangsu Shagang Group is reportedly in talks with Yonglian Steel Co to purchase the left shares after buying a 25% stake last year end. This suggests Shagang may entirely take over Yonggang, the steel mill based in the same city Zhangjiagang.

Spokesman for Shagang said there is no public news yet, but Shagang and Yonggang are in the process of merger in terms of technology and capital. Another source said the merger is likely matched with the government as a go between, because the two have been competitors in the same market.

As per report, once taken over, Yonggang will become a subsidiary of Shagang, mainly producing low and medium grade products like rebar and wire rod, leaving the group to devote into high end products businesses.

Yonggang is facing narrowing profits in recent years due mainly to escalating raw materials prices and for lack of self owned iron mines or JV overseas. Currently, its debt rate comes close to 80% and being acquired seems a last resort for it.

Shagang is the only steelmaker among China's top ten that has not been listed and the recent slew of acquisitions are considered to increase its financial pressure and push it to list on the international market. Last year, Shagang spent CNY 2 billion buying Huaigang, largest in North Jiangsu and Henan Province's largest private mill Yongxing steel, expanding capacity by over 5 million tonnes.

Chinese HDG export prices increase last week

It is reported that export offer for HDG have witnessed another jumped last week and it has reached another record level.

Export offers for 1.0mm HDG are prevailing at USD 930 per tonne to USD 950 per tonne FOB and contract prices are said to be increased at USD 900 per tonne FOB. The strong rebound of market price in the EU and USA are bolstering more imports of Chinese steel products.

Traders told Mysteel that HDG price and volume to the EU have picked up again following the sharp decrease in stock level, which is due partly to the anti dumping investigation on Chinese origin HDG.

A Shanghai based trader said "Importers seem to be replenishing inventory after the substantial drop in imports. In face of such a swift rise in price, they start to increase the purchasing from China. The result of anti dumping result is expected to come out in the latter half of 2008."

At the same time, some international traders who have offices or sub branches in the United States have already taken positions at lower levels before Chinese New Year. Currently, most of their contracts are arranged for May shipments.

(Sourced from MySteel.net)

Jinan to improve automation of its plate mill

Chinese Jinan Iron & Steel Co has awarded a contract to Siemens Metals Technologies to extend the automation of the 3.5 meter two stand plate mill in Jigang.

This project involves providing not only new automation equipment for the roughing stand but also the interface to the existing automation of the finishing stand. This new technology will further improve the quality, throughput and output of the plate mill. It is scheduled to come into operation by the end of 2009.

Siemens had previously equipped the finishing stand with main drives and automation equipment in 2000. Within the scope of the current project, Siemens will now also be equipping the roughing stand with basic and process automation, following the proven Siroll-PM concept. This will facilitate fully automated, coordinated operation of the entire mill. It will also enable those logistics processes to be improved which are required for interconnected multiple plate rolling for materials that have to be thermo mechanically treated in order to be able to efficiently use the cooling times required by the process. The scope of supplies and services also includes upgrading the process models of the finishing mill to the state of the art. Siemens will also be supervising the installation and commissioning of the equipment, and training the customer's employees to use it.

Jinan Iron & Steel Co is the largest steel producer in Shandong Province and one of the leading producers and exporters of heavy plate in China. Its plates have been certified for international shipbuilding and oil and gas industry including X-70.

Angang to expand the crude steel capacity to 19 million tonnes

It is reported that China Angang Group expects to expand the crude steel capacity to 19 million tonnes in 2008.

In 2007, Angang had an output of iron and steel both exceeding 16 million tons and that of iron ores mining of 50 million tonnes.

Mr Zhang Xiaogang general manager of China Angang Group said that Angang’s joint project of steel products processing in Spain will begin in two months and intends to purchase a steel processing company in Italy. It also plans to buy stakes in nickel mines in Australia to add the resource reserve.

The stock listing company, Angang Company Ltd is a subsidiary of Angang Group.

Jinchuan to retain stake in Allegiance

Reuters reported that Jinchuan Group Ltd, the largest shareholder in Allegiance Mining NL, which is being taken over by Zinifex Ltd, plans to retain its interest and it examining the implications of Zinifex's own takeover by Oxiana Ltd.

Mr Yang Zhiqiang vice chairman of Jinchuan told the news agency in Beijing "For the time being we are not selling, we want to hold on and see how things develop", adding that he was waiting to see the outcome of the planned Zinifex and Oxiana merger.

Mr Tony Howland-Rose chairman of Allegiance told AAP that Jinchuan may be happy to become a minority shareholder in a merged Oxiana and Zinifex because it will open up opportunities with a range of metals markets. He said "There have been some very sharp changes in the past few months and I suppose they are taking time to evaluate that.”

Mr Howland-Rose said "They are always very cautious people and will do what they judge to be in their best interest in due course, they've got the off-take and both parties will benefit from that, they have concepts of becoming much larger in a broader range of metals. They've been good partners to date and will continue to be for Allegiance in its new form. I think it will work out quite well."

Allegiance has recommended an AUD 852.4 million offer comprising AUD 1.10 per share from Zinifex to its shareholders. Zinc producer Zinifex, meanwhile, is being taken over by gold and copper miner Oxiana, under an AUD 6.2 billion deal.

Jinchuan has off take agreements for all nickel produced by Allegiance assets.

Jinxi Steel and Lubao Group inks coke deal

It is reported that Jinxi Iron and Steel and Shanxi Lubao Group Coking Company Ltd have signed a strategic cooperation agreement under which the coking group will supply 800,000 tonnes of high quality coke annually for the mill.

Lubao Group was founded in 1994 and is a large joint venture dealing with energy, power, traffic, transportation, travel and real estate. The group runs a dozen of stockholding, stock sharing enterprises and wholly owned subsidiaries with total assets of CNY 2.89 billion.

Baosteel and Beijing SBS lays stone for housing project

It is reported that Asian largest steel structured house project "Baosteel - SBS steel structure model project at golden port" jointly developed and co constructed by Baosteel and Beijing SBS set up the foundation at Wuhan Golden Port Resident Zone recently. Mr Cui Jian, deputy GM of Baoshan Iron & Steel Company Limited and other leaders presented at the foundation laying ceremony.

As per report, "Baosteel - SBS steel structure model project at golden port" is an 11 floor building with total area at 10000 square meters. It is the sustainable house model building in China by IISI steel structured house project group and is the first application of Baosteel's complete technology about steel structured house at engineering construction through her technology innovation and self integration. All steel columns of this building will use Baosteel's cold curved rectangular tubes, which can practically advance the economy, comfortableness and safety of this building comparing with traditional H-steel and square steel.

In 2005, Internal Iron and Steel Institute organized and started the steel structured house project which aimed to search for high efficient and economical "sustainable houses" proposal through construction innovation.

Shanxi to add 63.9 million tonnes of coal output in 2008

It is reported that Shanxi Province intends to raise its coal output by 63.9 million tonnes to 680 million tonnes in 2008 up by 9% YoY.

As per report in 207 Shanxi produced 630 million tonnes of coal and sold 536 million tonnes to other provinces which increase by 70 million tonnes.

Shanxi plans to increase the sales by 8.2% YoY to 580 million tonnes in 2008.

China unlikely to become net coal importer in 2008

It is reported that China will not become a net coal importer this year and tight supply during the Spring Festival and net imports in the first half of last year are special cases.

Mr Wu Yongping secretary of the party committee from Datong Coal Industry said that it is unlikely that China follows oil to shift to a major imported from an exporter this year. He said that total demand is estimated at 2.72 billion tonnes whilst output is expected to reach 2.73 million tonnes

(Sourced from MySteel.net)

Sumitomo Mitsui and Industrial & Commercial Bank ink pact

Kyodo News reported that Sumitomo Mitsui Banking Corp has signed a strategic alliance agreement with the Industrial and Commercial Bank of China on shipping finance in an effort to expand the business globally.

The report added that under the agreement Sumitomo Mitsui Banking Corp, the core banking unit of Sumitomo Mitsui Financial Group Inc, and the major Chinese national bank will cooperate in shipping finance as well as shipping finance advisory services. It said they will exchange personnel to share know-how and information in the shipping finance business and introduce potential clients.

Sumitomo Mitsui Banking Corp said ICBC is a major provider of shipping finance in China, the world's core shipping market, and is the world's largest bank in terms of market capitalization as of the end of 2007 with the largest domestic branch network in China.

Sumitomo Mitsui Banking Corp is one of the major shipping finance providers in the world and ranked among the top 10 providers in the business in 2007 for the second straight year, according to the Japanese bank.

China Metallurgical Corp to raise CNY40 billion in dual listing

It is reported that China Metallurgical Group Corp one of the top 20 state owned enterprises in China is planning to list on both mainland and Hong Kong stock markets at the same time.

According to its IPO schedule the group submitted its IPO application to the State Assets Supervision and Administration Commission two months ago and may launch the dual listing as early as the end of August 2008. The estimated proceeds from the listing are CNY 40 billion.

China Metallurgical Group aims to boost its sales revenue up to CNY 150 billion in 2008 of which CNY 19 billion are expected to come from overseas market and total profits to CNY 8.2 billion.

In 2007, it achieved sales revenue of CNY 126 billion.

Private firms called to invest in railways in China

China Daily reported that Mr Liu Zhijun minister of railways for China has encouraged overseas and domestic private investors to get a share in the railways' as the country accelerates the construction and reconstruction of its railway network.

He said "We welcome overseas and domestic private investors to get part ownership of the railway lines, except the trunk rails. This is a major step in investment reform and will get the government ample capital to realize its plan to expand the railway network from the present 70,000 kilometer to 120,000 kilometer by 2012.”

Mr Liu said overseas and domestic investment in the railways from 2003 to 2007 was CNY 10 billion. But their share is less than 2% of the total investment of CNY 522 billion in past five years. He said "Future investment opportunities will increase because we are going to raise some incentives to change the situation.”

He added that the government will spend up to CNY 300 billion to build 7,820 kilometer of tracks in 2008 when separate power generating units will be set up at more than 2,000 railway stations.

ArcelorMittal investment in Ukraine to exceed USD 3 billion

Dow Jones reported that ArcelorMittal might be forced to spend more than it had planned on the development of its Ukraine assets.

Mr Narendra Chaudhary executive VP of ArcelorMittal while speaking at the Adam Smith conference said that due to difficult global financial conditions, the company will spend more than USD 3 billion to achieve its aim of producing 12 million tonnes a year by 2012.

He said the company is satisfied with its Kryvyi Rih steel mill, but cited lack of infrastructure, human resources and cumbersome bureaucratic procedures, notably when it comes to buying land and its future usage, as the main challenges to the company in Ukraine.

He said that “He does not see Ukraine joining the World Trade Organization as a risk to greater competition in steel production but urged the country's government to abandon indicative export prices, which make Ukraine's production less competitive.”

EU approves ArcelorMittal's buy of Galvex

It is reported that ArcelorMittal has won permission from the European Commission on Monday to buy Galvex, an Estonian steel galvanizing line.

Top competition regulator of the 27-country European Union said in a statement that the proposed merger would create an overlap in the market for galvanized strip and coils, where both ArcelorMittal and Galvex are active.

It said "However, the Commission's investigation found that the operation would not give rise to competition concerns in this market, as Galvex's share in the EEA market is very low and a number of other significant competitors are active on this market."

The statement said "The transaction is unlikely to result in supply problems for competitors of the merged entity, particularly as Galvex is a very small player both as a consumer of cold rolled steel and as a producer of galvanized strip and coils."

No financial details were disclosed when ArcelorMittal announced the deal in November last year.

Imports into the EEA market for galvanised strips and coils are also increasing (from 10 pct in 2006 to 15 pct in 2007) and are expected to continue to grow, providing a further competitive constraint on the merged entity.

TMK announces preliminary results for 2007

OAO TMK one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry, provided the following trading update in advance of the publication of its preliminary results for the year ended December 31st 2007 which will be announced in May 2008.

2007 was a successful yet challenging year for the Company given the scale of ongoing investment projects at its mills. Nevertheless, TMK managed to continue improving its production and overall financial results.

For FY 2007, TMK expects revenues to exceed USD 4 billion up by 20% YoY as compared to 2006. Increase in EBITDA for 2007 is expected to be in the area of 15%; EBITDA margin for the full year is expected to be slightly lower than for the first half of 2007 and the full year 2006. Profitability in the second half of 2007 was negatively affected by the ongoing installation of a PQF mill at Tagmet. A related seamless rolling mill stoppage since October, necessary to install the new mill, resulted in deteriorating product mix and increasing share of fixed costs.

As previously stated in 2007 TMK increased shipments of tubular goods by 1.9%YoY as compared to 2006. Seamless pipes shipments increased by 4.2%YoY compared to 2006. It is worth noting that this growth in seamless pipe shipments was achieved during the extensive upgrading of production facilities. It managed to achieve higher than expected prices for its products. Prices for seamless OCTG pipes up by 20% during 2007, while its prices for seamless line pipes up by 14%. Seamless industrial pipe prices grew by around 12%.

Growth in TMK’s large diameter welded pipe prices was in the area of 20%, above trends in the prices of coils and plates. Prices for industrial welded pipes were relatively flat in 2007 as a result of intensifying competition. Despite some weakness observed in the global markets, particularly in North America, the Russian seamless pipe market remained strong, fuelled by increasing E&P spending from Russian oil and gas companies. The Russian pipe market grew by 13%, while the seamless OCTG pipes market increased by 15%.

TMK increased its domestic sales by decreasing exports from its Russian plants by 8%. Consequently, the share of non-Russian sales volumes decreased to 28.5%.

In 2007, for the second year in a row, prices for scrap increased considerably. TMK prices for scrap and pig iron increased by as much as 30%. Increase in prices for coils and plates in the fourth quarter 2007 compared to the fourth quarter 2006 was in the area of 6% to 7% with a notable spike in the middle of this period.

US official says EU needs no gas pipeline war

Reuter reported that Gazprom's South Stream gas pipeline project should not torpedo the European Union's plans to build the cheaper Nabucco pipeline so as to cut reliance on Russian gas.

Mr Dan Brown assistant secretary of state for European Affairs said that South Stream was aimed at crushing competition. He said "The US view is that we do not want a gas pipeline war.”

He said that “Only Nabucco will promote conditions needed for competition, protect Hungary and other EU states against supply disruptions and increase transparency in the energy sector."

Hungary said early this week that it would join a rival of Nabucco, the EUR 10 billion South Stream project, which would be a second pipeline to supply Hungary with Russian gas.

TMK develops cooperation with Turkmenistan

It is reported that Mr Dmitry Pumpyansky board of director chairman of TMK in a meeting with Mr Gurbanguly president of the Republic of Turkmenistan discussed the prospects of cooperation with Turkmenistan's oil and gas complex and TMK plans to expand market presence in Central Asia.

The meeting was also attended by Mr Igor Blatov ambassador of Russia in Turkmenistan and Mr Tachberdy Tagyev deputy chairman of the Cabinet of Ministers of Turkmenistan.

As per report in a meeting both sides expressed their common interest in increased shipping companies pipes Turkmen fuel and energy sector in particular the "Turkmenneft", "Turkmengaz", "Turkmenneftegazstroy", "Turkmengeologia."

The parties discussed the prospects for the supply of large diameter pipes, including diameter 1420mm to participate in the Republic of major pipeline projects construction of the Caspian pipeline and the pipeline Malay-Bagdyyarlyk.

The developing cooperation largest Russian producer of pipes for the oil and gas industry with state owned companies TAC Turkmenistan is actively promoting the work of the Company's trade office in Turkmenistan opened at the end of last year.

Global tender for water project in Azerbaijan

It is reported that Azersu Open Joint Stock Company of Azerbaijan has invited global tenders for an ADB funded urban water supply and sanitation project that aims to improve the quality, reliability and sustainability of water and sanitation services in Agdash, Goychay and Nakhchivan.

As per report the project has two components, one for physical infrastructure construction and rehabilitation, and the other for institutional reforms and capacity building. Physical infrastructure includes new well fields with six new boreholes and rehabilitates two existing boreholes to replace current water sources; replace the existing water distribution system with new pipes; and build elevated reservoirs and treatment facilities.

Naftohaz Ukrainy and Gazprom to hold further talks

Ukrainian News Agency reported that the Naftohaz Ukrainy national joint stock company and Russia’s Gazprom gas monopoly plan to hold talks on supply on natural gas to Ukraine.

Mr Oleksandr Shlapak the presidential secretariat’s first deputy head said “A delegation from Naftohaz Ukrainy is expected in Moscow. He said that Naftohaz Ukrainy and Gazprom will succeed in completing the negotiating process on mutually beneficial terms and resolve the conflict.

As Ukrainian News earlier reported, the National Electricity Regulation Commission is not ruling out the possibility of issuing Russia’s Gazprom gas monopoly or its subsidiary with a license to supply natural gas on the Ukrainian market if the company applies for such a license.

The Cabinet of Ministers has said that it is prepared to grant Gazprom the right to sell 1.25 billion cubic meters of natural gas to Ukrainian consumers per year. Ms Yulia Tymoshenko PM of Ukraine recently said that she would not allow creation of any joint enterprises for delivering natural gas to Ukraine or for selling natural gas on Ukraine’s domestic market.

Ukraine and Russia agreed on February 12th 2008 that Ukraine’s Naftohaz Ukrainy national joint stock company and Gazprom would create two 50:50 joint ventures to replace the RosUkrEnergo company and the Ukrhaz-Energo joint venture.

Gazprom to develop China green power industry

FIS reported that Gazprom is soon to conclude the talks on its participation in a large project to construct five wind-driven power plants in China.

The energy giant is planning to get up to USD2.4 billion within the next 3 years from its participation in the projects to develop alternative power-generating or 'green' power objects in the form of additional quotas for emission of greenhouse gases in the frame of the EU system based on Kyoto protocols.

KHARP develops production of railway roller bearings

FIS reported that Kharkov Bearing Plant, one of CIS largest producers of bearings, the member of UPEK Group signed an agreement with Japan's Muratec on the purchase of a state of the art robotized turning complex for EUR4 million.

The bearing plant also intends to purchase some technologies and other equipment from Muratec for USD1.5 million. The purchases are part of a large scale investment project on the modernization of railway roller bearing production.

The project of modernization was developed jointly with Ukrainian Design Bureau of Bearing Industry and one of European engineering companies. The modernization aims at creating the production of bearings of a principally new level of quality of the annual capacity of 1.2 million per annum.