Siemens to install turnkey process technology at Bokaro CR mill

Steel Authority of India Limited has awarded Siemens VAI Metals Technologies a contract to equip the new cold rolling mill of the Bokaro Steel Plant in Jharkhand with turnkey process technology. The cold rolling mill will have a capacity of around 1.3 million tonnes per year and is scheduled to take up production in 2010.

Siemens is responsible for the design, engineering, supply, installation and commissioning of the core lines of the new cold mill plant, which includes a coupled tandem pickling line, a hot dip galvanizing line and an electrolytic strip cleaning line. The contract also covers installation supervision, commissioning and intensive customer training. Among the reasons why Siemens was awarded the order were the superior solution and the high degree of standardization between the several lines which supports optimized operational costs.

The technological core components of the equipment will be manufactured in the Siemens workshops in Montbrison in France. The coupled tandem pickling line will feature two un coilers and one LW21H laser welder, followed by a scale breaker and a turbulence process section with a Faplac pickling model and Siemens special plastic tank design. The central part of the plant is the 5 stand tandem cold mill with six-high rolling stands and a carousel coiler. All systems and components form part of the solution platform Siroll CM for cold rolling mills. This also contains the entire Sinamics based drive technology, comprising the main drives of the rolling stands of type Sinamics SM150, and the basic and process automation including all the technological controls and process models.

The hot dip galvanizing line also includes two un coilers and a type LW21L laser welder. The line will additionally be equipped with strip cleaning equipment, a vertical annealing furnace, DAK dynamic air knifes, a skin pass mill, and a tension leveler from Siemens.

The equipment of the electrolytic strip cleaning line includes an un coiler, an ML 21L seam welder and cleaning tanks in a V configuration. Siemens is also supplying the drive, automation, and process technology for the two processing lines. The equipment for the hot galvanizing line and the electrolytic strip cleaning line will be based on the solution concept Siroll PL for strip processing lines.

With a raw steel output of around 13 million tonnes per year, SAIL is the largest steel producer in India. It operates integrated iron and steel complexes at five Indian locations including additional production plants for alloyed steel and iron alloys. SAIL produces a wide range of steel products for the Indian construction, energy, railroad and automotive industries, as well as for export.

Vizag Steel eyes INR 150 crore additional revenue in March

BS reported that RINL Visakhapatnam Steel Plant is expecting additional revenue of INR 150 crore through the sale of products in March 2008. It has increased its product prices on an average by INR 5,000 per tonne and during March 2008, it expects to sell over 300,000 tonnes of products.

In January 2008, VSP hiked steel prices by INR 2,000 per tonne and again increased it by another INR 1,000 per tonne in February 2008. However, it had to roll back this hike due to centre’s intervention. But again on March 8th 2008, VSP increased the prices of all its products by INR 4,500 to INR 6,000 per tonne.

Mr Krishan Rao, director of Vizag Profiles said that he steel plant did not issue any material from March 1st 2008 and started issuing it only after March 10th 2008, when the price hike came into effect.

During this fiscal, VSP is expecting a turnover of INR 10,000 crore. By the end of February 2008, the total sales of Vizag Steel stood at INR 8,884 crore, with February alone contributing INR 1,056 crore. In March 2008, it is expecting sales between INR 1,250 and INR 1,350 crore.

Steel ministry called for restrictions on iron ore export

Mr Ram Vilas Paswan union steel minister has called for restrictions on export of high grade iron ore considering the 13% growth in demand of steel and the mismatch in terms of production which was growing barely 5.5%.

Mr Paswan said that "By the year 2020, the steel demand will be over 300 million tonnes while the projected production will be only 224 million tonnes. If we continue to indulge in reckless export of high grade iron ore, we will be forced to import iron ore after 20 years."

Mr Paswan also expressed concern over the slow progress of industrialization in Orissa. He said "Merely signing MoUs does not help. The MoUs need to be translated into industries and this should be done expeditiously."

JSW Steel inaugurates its Vijayanagar CRM Complex

Dr JJ Irani director of TATA Sons has inaugurated JSW Steel Limited’s cold rolling mill complex at Vijayanagar on March 17th 2008. The 1 million tonne cold rolling mill complex will cater to the booming auto and auto component industry and act as a catalyst for attracting further investments in this sector in southern India.

The inauguration ceremony was attended by Mr Sajjan Jindal vice CMD of JSW Steel Limited, Ms Sangita Jindal chairperson of JSW Foundation and Mr Y Siva Sagar Rao joint MD & CEO of JSW Steel Limited.

Built in a record time of 22 months, the cold rolling mill complex facility is a forward integration of the existing facilities where hot rolled coils are cold rolled to produce high end cold rolled sheets which cater to the upper segment of the steel market. It would produce coils with a thickness of 0.3mm to 3mm and a width range from 800mm to 1650 mm. The technology providers are among world leaders in their field of expertise.

The cold rolling mill complex has level 2 and level 3 automation. The electrolytic cleaning line coming up with the main plant will ensure that the stringent requirement of surface quality of the auto sector is ensured from day one itself. It would cater to a wide range of industrial applications namely automobile bodies & components, white goods, electrical panels, drums & barrels, furniture, electrical stampings, packaging etc.

JSW Steel is on an expansion surge and plans to scale up production to 7 million tonnes per annum by 2008 and reach the coveted 10 million tonnes per annum capacity by 2010. This expansion would make it one of the largest steel plants at one location in India.

SAIL and RINL may detach from 4 million tonnes steel venture with NMDC

BS reported that the MoU between Steel Authority of India Limited, Rashtriya Ispat Nigam Limited and National Mineral Development Corporation for a proposed 4 million tonne plant in Chhattisgarh has been scrapped and the mining PSU would go alone in the venture.

A steel ministry source said that "NMDC is sitting on huge cash reserves and could diversify into steel making on its own. We are considering freeing SAIL and RINL from Chhattisgarh project to enable them to concentrate on their own expansion that has to be completed by 2010. A joint venture between RINL and NMDC could be considered at a later stage to undertake marketing of products."

It may be noted that the MoU was signed on August 17th 2007 and according to the arrangement, the 3 companies were supposed to have equal participation in the project, which would be set up at a suitable site based on the pre-feasibility study to be prepared by a consultant.

SAIL had taken the lead for preparing the feasibility report and had nominated Mecon for the purpose. NMDC was supposed to take the lead for obtaining land, mining leases and statutory clearances.

NMDC sources said that the ministry’s decision could be based on the fact that with NMDC’s knowledge of Chhattisgarh, it would be best that they go alone in the venture. NMDC currently produces 30 million tonne of iron ore from mechanized mines at Bailadila in Chhattisgarh and Donimalai in Karnataka.

SAIL’s corporate plan includes an investment of over INR 50,000 crore for nearly doubling hot metal capacity to 26 million tonnes by 2010 end. The steel ministry wants SAIL to stick to the target even though the PSU is finding difficulties in getting equipment suppliers from across the globe. RINL is also investing INR 8,000 crore for expansion.

Australian flood hits coal supply at SAIL BSP

Ranchi Express reported that heavy rainfall in the Australian coal mines in January and February 2008 has severely affected the supply of coking coal to steel plants in India.

As per report, Steel Authority of India Limited’s Bokaro Steel Plant has regulated its production system due to the supply and the crises will have an impact on production targets if it lasts long. Notably, coal accounts for nearly 60% of SAIL’s energy needs. It purchases around 13 million tones of coking coal from the market. Coal India Limited supplies 45% of the requirement while the balance is met though imports. The ash content of Indian coal is in the range of 19% to 20% as compare

Pratibha to spin off steel pipes unit

Construction firm Pratibha Industries Limited has announced that its board had approved spinning off its steel pipes unit into Pratibha Pipes & Structural Limited.

The board also approved merging Pratibha Shareholding Private Limited and One Metro India Private Limited into Pratibha Industries.

Centre clears coal to liquid project by TATA Sasol JV

BS reported that an inter ministerial group has cleared the USD 8 billion coal to liquid project of TATA Group and its partner Sasol of South Africa.

Significantly, the TATA Sasol project does not seek any tax concession from the government or protection from the market risk of oil prices falling below a certain level.

The coal to liquid project got clearance on February 27th 2008 from IGP chairman Mr Kirit Parikh. The project has now been recommended for coal block allocation by the ministry of coal.

The TATA group has sought access to 30 million tonnes per annum of coal for producing 3 million barrels of oil and 1,500 MW of power for the coal to liquid project, whereas Sasol will use the Fischer Tropsch technology, which converts the syngas, which in turn can be refined to produce diesel, naphtha, jet fuel, LPG and lubricants.

RPL acquires coalmine in Indonesia to feed Krishnapatnam UMPP

It is reported that Reliance Power has bagged a deal to buy a coal mine in Indonesia located in South Sumatra. The valuation of the coal mine is estimated to be around INR 20,000 crore.

Reliance Power is understood to have acquired the coal mine for about INR 1,000 crore and has acquired 100% interest in this coal mine. The coal mine, which has resources of 2 billion tonnes per annum, is spread over 100,000 acres.

The proposed coal mine will be the prime source of fuel for Reliance's power project in Krishnapatnam in Andhra Pradesh. It is estimated that the Krishnapatnam ultra mega power project will require about 14 to 15 million tonnes per annum of coal every year.

Indian Railways seeks Chinese expertise in logistics parks

Exim News Service reported that Indian Railways will seek the help of the Chinese for the development of multimodal logistics parks, heavy haul operations, as well as research & development.

Following the MoU signed between both countries, a high level Chinese delegation is visiting India to understand the working of railway systems. The 13 member delegation, headed by Mr Wu Wei director of Sino India Railway Cooperation Working Group, proposes to visit Agra, Bhubaneswar, Mumbai and Bangalore during its 12 day visit. The team will also study the possibilities of cooperation in the proposed high speed corridor, development of stations and heavy haul operations.

Chinese Railways is experienced in signaling and telecommunication, high axle load operations, design and maintenance, development and operations and multimodal transport in the railway segment.

SAIL to set up an archery academy in Kiriburu soon

The Telegraph reported that budding archers of West Bengal are set to get one more state of the art academy to sharpen their skills as SAIL is setting up a new archery academy at Kiriburu in West Singhbhum district.

SAIL officials said that the academy would be completely residential. Initially, training on Indian round would be imparted to 20 talented archers, 10 boys and girls each. The selection of the first batch had been done through a mega selection trial conducted in 2007. Aspiring archers in the age group of 13 to 15 years would be inducted into the academy and Asian Championship 1989 medal winner Mr Rajendra Guian would be the chief coach.

Officials added that several local talents were spotted in Kiriburu during the archery events organized by SAIL as part of its corporate social responsibility and so the academy was being established. The SAIL authorities visited the local TATA Steel Archery Academy recently to grasp the nitty gritty of maintaining and running an archery academy.

Mr Kalyan Maiti GM mines at SAIL said that "The tentative date of inaugurating the academy is March 19th 2008. All the state of the art facilities would be provided to the budding archers at the academy. We have earmarked a shooting range and the training of these archers would be conducted throughout the day. In the evening, they will study. Our own teachers will be conducting their classes." He added that though there are 2 coaches as of now, more coaches would be inducted on contract. There are plans of inducting fresh cadets every 2 years.

SAIL officials said that the archery training cradle at Kiriburu would be on a par with the prominent hockey and football academies of SAIL at Rourkela and Bokaro. Besides getting stipend, for every 3 cadets there will be a teacher from the Project Central School run by SAIL in Kiriburu for imparting education.

Meeting held for parliamentary committee on ministry of coal

It is reported that the meeting of Parliamentary Consultative Committee for the ministry of coal was held under the chairmanship of Dr Dasari Narayan Rao union minister of state for coal.

Mr Rao said that a number of measures have been taken by the coal companies to prevent illegal mining which include, apart from conducting raids and seizing illegally mined coal, fencing of unused work areas, filling up of rat holes, sealing of exposed coal by dumping of overburden material, digging trenches, creation of concrete walls, regular and surprise raids by CISF and the security personnel of the coal companies, collection of intelligence, installation of check posts, filling of FIRs in police stations and close liaison with the state government authorities. He added that "Ministry of coal has been pursuing this matter with the state governments concerned on regular basis. Illegal mining has serious consequences for the states in terms of loss of revenue, environmental hazards, law and order problems, unscientific exploitation and resultant wastage of a precious natural resources, safety hazards etc."

Mr Rao said that he has discussed the issue with the chief ministers of Jharkhand and West Bengal who agreed to look into the matter and to instruct the administrative machinery for taking effective steps. Besides this, the state governments have also initiated some concrete steps. Government of Jharkhand has constituted task forces at the state and district levels. In West Bengal also, task forces have been constituted at the state and district levels. Joint action for prevention of illegal mining has been initiated by the coal companies and district collectors.

He added that central government has constituted a committee to look into the various aspects of illegal mining of coal. The committee has representation from the states of West Bengal and Jharkhand at the level of minister in charge of mining and leaders of opposition in the legislative assemblies.

Some of the members suggested the formation of a special task force to check the menace. Others felt that illegal mining had been thriving with the connivance of police and some bureaucrats and suggested that stern action is warranted against those found involved in the mal-practice. Special central illegal vigilance team should be formed for surprise checks and raids on illegal mining. The members felt that social security issues involving miners need to be tackled on a priority basis.

Foundation stone laid for NDPL's gas based power project

Projects Today reported that Ms Sheila Dikshit chief minister of Delhi has laid the foundation stone for North Delhi Power Limited's 108 MW gas based combined cycle power plant at Rithala.

The proposed power project has earlier been approved by the Delhi Power Department and Delhi Development Authority has given the requisite land use clearance for the identified 10 acre land at Rithala. Delhi Jal Board has also given its consent for supplying water to the facility.

The raw water of 170 cubic meter per hour will be sourced from Rithala sewage treatment plant. The gas requirement of about 0.6 million standard cubic meters per day will be met from the KG basin being developed by RIL to be supplied through the GAIL pipelines.

The power project is likely to be commissioned by 2009.

Titagarh Wagons to expand operation in West Bengal

Titagarh Wagons Limited recently announced that it would invest over INR 37 crore to expand its operation in West Bengal. It would tap the capital market to raise funds to part finance its expansion plans and acquire 51% stake in wagon maker Cimmco Birla referred to Board for Industrial & Financial Reconstruction.

Mr Umesh Chowdhary MD of Titagarh Wagons said that "We will set up an EMU coach manufacturing facility at the Uttarpara unit at a cost of INR 18.74 crore and another INR 18.84 crore would be spent till fiscal 2009 in modernizing the Titagarh and Uttarpara units."

Titagarh Wagons would raise INR 128 to INR 145 crore through an initial public offering through the 100% book building route. The issue would open on March 24th 2008 and close on March 27th 2008.

Coimbatore foundry business hit by raw material prices

It is reported that frequent increase in raw material price has threatened to hit production of foundries and also exports from Coimbatore, which currently accounts for about one fourth of India’s INR 4,000 crore annual casting exports.

Representatives of Coimbatore chapter of the Institute of Indian Foundrymen said that the units faced an unprecedented increase in raw material prices mainly, pig iron, coke, steel and scrap. They added that "The unit is unable to import pig iron and coke from China, which was the main raw material for the foundries. The government should control export of iron ore. It should also abolish import duty on pig iron to bring down the prices."

They further added that the duty entitlement passbook scheme benefits for casting exports should be increased in proportion to the current hike in raw material costs and the DEPB cap should be removed.

IREDA to set up SEZ for renewable energy system

Indian Renewable Energy Development Agency is planning to form a special purpose vehicle to facilitate setting up a SEZ for production of renewable energy equipment.

Presently IREDA is in the process of discussing the issue with state governments and private sector parties. One of the possible locations under consideration is near Nagpur however the final decision with regard to setting up a SEZ will depend on various techno economic considerations of investors.

SAIL donates INR 5 million to develop Netaji Museum

Mr Ram Vilas Paswan union steel minister, while announcing a donation of INR 5 million for installation of light and sound system at the Netaji Subhas Chandra Bose Museum in Cuttack, said that he would take up the issue of its development with Prime Minister Dr Manmohan Singh.

Mr said that "I will take up the matter with the prime minister and urge him to develop the museum. There should be a planned design to make this museum a remarkable place." He added that the INR 5 million would come from Steel Authority of India Limited funds.

ed to 8% to 10% in imported raw coal.

Government updates on mini and micro power projects

Capacity in MW

State wise details of numbers and aggregate capacity of small hydro power projects are as follows

Capacity in MW

China Huaneng wins bids to buy Tuas Power for USD 3 billion

BS reported that China’s leading power generator China Huaneng has outbid Reliance Energy Limited and GMR Group by placing the highest bid of USD 3.1 billion for Tuas Power put on block by Singapore’s investment arm Temasek Holdings.

The process for disinvestment of Tuas Power was kicked off by Temasek in October 2008. TATA Power, GMR and REL had submitted indicative bids for acquiring Tuas Power. GMR and REL qualified in the initial bidding stage of the two step process. Tuas Power is one of the 3 power generating companies being privatized by the Singapore government.

Besides, REL and GMR, 3 international firms including China Light and Power and Hong Kong Electric, were also believed to have been in the race to acquire Tuas Power.

Temasek Holdings has signed a share purchase agreement with SinoSing Power Pte Limited for the 100% sale of Temasek’s wholly owned Tuas Power Limited for a cash consideration of SGD 4.235 billion. The transaction is expected to be completed by March 24th 2008.

Mr Wong Kim Yin MD of Temasek said that "China Huaneng is an established player with a strong track record in the power business. Its proposal through SinoSing was the most attractive. It emerged as the winner, based on clear considerations of price and acceptable commercial terms."

Assets of Tuas Powers include 1,200 MW of oil fired steam turbine plants and 1,470 MW of gas fired combined cycle plants. It caters to the National Electricity Market of Singapore. It earned revenues of SGD 2.28 billion and net profit of SGD 177 million in the fiscal ended March 31st 2007.

OMDC's EoI on mines evokes sharp reaction from steel makers

PTI reported that steel companies are up in arms against Orissa Minerals Development Corporation for inviting Expression of Interests to form strategic partnership to develop Koyda mines with conditions that will exclude all the existing players.

Bhushan Steel Limited told OMDC management in a letter said that "You may cancel the present invitation and come out with a fresh one."

The bone of contention is that under the EoI it has been stipulated that only those firms which have signed MoUs with the Orissa government for setting up at least 6 million tonnes of steel plant would be eligible to participate in the tender.

Under the terms of EoI, 3 companies including ArcelorMittal, POSCO and Jindal Steel & Power Limited would be able to participate in the bidding process as they have singed the MoU with the Orissa government to set up steel plants of six million tonnes or more.

Mr Anil Ahuja VP corporate affairs & raw materials at Bhusan Steel said that the terms of the EoI would exclude those firms which already have steel plants in Orissa. He added that "We feel that OMDC should consider those companies already having plants in Orissa instead of those who have pledged to set up a plant."

Centre approves revival of 28 CPSEs

Mr Sontosh Mohan Dev union minister of heavy industries & public enterprises said that based on the recommendation of the Board for Reconstruction of Public Sector Enterprises, centre has approved the proposal for revival of 28 central public sector enterprises involving a total assistance of INR 8409.31 crore during the May 4th 2005 to January 3rd 2008 period.

Mr Dev also identified sick central public sector enterprises and submits the proposal for their revival to Board for Reconstruction of Public Sector Enterprises from time to time. BRPSE has considered and given its recommendation on 51 proposals for revival including closure of 2 central public sector enterprises till February 29th 2008, out of which 28 proposals for revival have been approved.

PM to lay foundation for SAIL BSL expansion project

Ranchi Express reported that Prime Minister Dr Manmohan Singh will lay the foundation stone of INR 10,000 crore modernization and expansion plan of SAIL Bokaro Steel Plant on April 18th 2008.

Giving the information Dhanbad member of parliament Mr Chandrashekhar Dubey said that "It is a matter of honor that the PM has decided to visit Bokaro city for laying the foundation stone. The new unit would launch BSL on the course of achieving production of 20 million tonnes of steel." He added that
the PM would address a public meeting at the sector V ground.

While pointing out that land was crucial for modernization and expansion, he said that resestance put up by some leaders to the building of boundary walls by the BSL had pained him considerably.

ArcelorMittal reduce delisting tender offer price for ArcelorMittal Inox Brasil SA

ArcelorMittal announced that the price offered in the delisting tender offer for all shares of Arcelor Mittal Inox Brasil SA is being reduced to reflect the interim dividends declared by the Company in a Notice to Shareholders dated March 14th 2008.

The price offered by ArcelorMittal was ZAR 100.00 per common share and ZAR 100.00 per preferred share of the Company and, after the subtraction of the interest on equity already declared on December 19th 2007 and the declaration of interim dividends referred to herein, the offer price will be ZAR 94.55 per common share and ZAR 94.00 per preferred share, still subject to adjustment by the Referential Rate TR plus 6% per year, starting February 28th 2008 through to the Offer auction date April 4th 2008.

US January 2008 steel shipments up by 7.3% YoY

American Iron and Steel Institute reported that for the month of January 2008, US steel mills shipped 9.246 million net tons up by 7.3%% YoY as against 8.614 million net tons shipped in January 2007 and increase by 8.8% MoM as against 8.495 million net tons shipped in December 2007

YOY comparison of YTD shipments shows the following changes within major market classifications:
1. Service centers and distributors up by 9.3%
2. Automotive up by 1.3%
3. Construction and contractors’ products up by 8.5%
4. Oil and gas up by 3.2%

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months and year.

Sumitomo Corporation to establishment of Sumitomo Corporation Asia Pte Ltd

Sumitomo Corporation on April 1st 2008 will establish Sumitomo Corporation Asia Pte Ltd as a head office company for the Asian region in Singapore. At the same time, the title of the Regional General Manager for Southeast & Southwest Asia will be changed to the Regional General Manager for Asia.

As per release Sumitomo Corporation is pursuing wide zone operation not just in Asia but also in the Americas, Europe, China, the Middle East and the Commonwealth of Independent States. In the Asian region, a wide zone operation system was introduced in April 2005 under the Regional General Manager for Southeast Asia and it was broadened to include Southwest Asia in April 2006. Ever since then this system, which does not rely on a corporate format, has been in operation under the Regional General Manager for Southeast & Southwest Asia.

At this time, in a context of Asian economic growth and rapid lowering of borders, Sumitomo Corporation Asia is being established to supplement the existing setup, in which the Regional General Manager is in charge of the region's organization overall. In the new system the Regional General Manager for Asia will concurrently serve as the CEO of Sumitomo Corporation Asia and will strive to strengthen unified management across the region.

Sumitomo Corporation Asia will be formed by merging the existing Sumitomo Corporation (Singapore) Pte Ltd with the Office of the Regional General Manager for Southeast & Southwest Asia and it will function as the holding company of the region's subsidiaries. They are Sumitomo Corporation Thailand Ltd, PT Sumitomo Indonesia, Sumitomo Corporation India Pvt. Ltd and Sumitomo Corporation Vietnam LLC. In addition Sumitomo Corporation Capital Asia Pte Ltd (Singapore), which is the financial center of the SC Group in Asia, will become a subsidiary of Sumitomo Corporation Asia and it will work to strengthen financial functions, as by coordinating the functions of financial management of the group companies.

Henceforth, with Sumitomo Corporation Asia taking the lead, efforts will be directed at expanding the earnings base in Asia while optimizing the allocation of the region's managerial resources, utilizing these resources efficiently on a prioritized basis, and strengthening the region's administration function.

Outline of Sumitomo Corporation Asia
Company name: Sumitomo Corporation Asia Pte Ltd.
CEO: Mr Michio Ogimura concurrently regional GM for Asia
Capital: JPY 17.5 billion
Ownership: 100% Sumitomo Corporation
Date of establishment: April 1st 2008

CME Group to acquire NYMEX Holdings on terms previously announced

CME Group Inc and NYMEX Holdings, Inc announced they have signed a definitive agreement under which CME Group will acquire NYMEX Holdings, the parent company of New York Mercantile Exchange, Inc on the terms previously announced.

The transaction joins the complementary product offerings of two of the industry's leading and most dynamic exchanges. This combination will further diversify the company's revenues, with products in every major asset class. It also will better position the company to compete globally with other cash, over the counter and regulated markets and participate in the fast-growing global energy market. The transaction also is expected to deliver significant customer benefits through clearing capital efficiencies related to equity holding requirements, portfolio margining and security deposits for joint clearing members. Additional benefits will include harmonized trading and administrative technology systems, building on the existing CME Group/NYMEX exclusive electronic trading agreement.

Under the terms of the definitive agreement, shareholders of NYMEX will receive total consideration equal to 0.1323 shares of CME Group Class A common stock and USD 36.00 in cash for each share of NYMEX common stock outstanding, or an aggregate of approximately 12.5 million shares of CME Group Class A common stock and cash of USD 3.4 billion. NYMEX shareholders will hold approximately 18.6% of the combined company on a pro forma basis. Shareholders of NYMEX can elect to receive either CME Group Class A common stock or cash for each share of NYMEX common stock. The exact amount of the cash and stock consideration to be received by each NYMEX shareholder will be determined by proration in the event that total cash elections are either greater than or less than the mandatory cash component of approximately USD 3.4 billion. CME Group may choose to increase the cash amount if NYMEX shareholders elect to receive more than USD 3.4 billion in cash, under certain circumstances.

The strategic combination is expected to create substantial value for shareholders through the realization of approximately USD 60 million in cost synergies and additional compelling growth opportunities. As part of the transaction, NYMEX is required to offer to purchase the 816 outstanding NYMEX Class A memberships for consideration not to exceed USD 500 million in the aggregate, or approximately USD 612,000 per membership. The closing of the transaction will be conditioned on, among other things, at least 75% of the memberships being repurchased.

Mr Terry Duffy executive chairman of CME Group said that “This strategic combination with NYMEX, the premier exchange in energy and metals derivatives trading, continues both of our companies' traditions of finding innovative ways to create value for our customers and shareholders. This agreement builds on our existing trading technology agreement announced in April 2006 that has allowed customers around the world to benefit from access to NYMEX's benchmark energy and metals products. Since coming onto the CME Globex platform, average daily volume of NYMEX products on CME Globex has increased to nearly one million contracts. Through this combination, we will be better able to generate synergies between our exchanges to provide increased efficiencies and new trading opportunities for customers around the world and create new long term value for our shareholders. We greatly appreciate the statements of support made this morning by our Congressional leaders, including Senators Durbin and Schumer, as we continue our commitment to both New York and Chicago through this transaction."

Lehman Brothers, Goldman Sachs and William Blair are acting as financial advisors to CME Group and Skadden, Arps, Slate, Meagher & Flom LLP is acting as CME Group's legal advisor. JP Morgan and Merrill Lynch are acting as financial advisors to NYMEX, Sandler O'Neill is acting as special financial adviser to NYMEX in connection with NYMEX Class A memberships, and Weil, Gotshal & Manges LLP is acting as NYMEX's legal advisor.

Gates Corporation to acquires Singapore AE Hydraulic

Denver based Gates parent company Tomkins plc announced that it has purchased AE Hydraulic Ltd, a supplier of hydraulic and industrial hose products to the oil exploration industry.

AE Hydraulic was founded in 1999. Its head office and warehouse are at Jurong in Singapore's largest industrial area. The acquisition enables Gates to accelerate its market expansion into this high growth market for oil and gas exploration with access to the largest drilling rig manufacturers in the world.

Mr James Nicol CEO of Tomkins said that “AE Hydraulic Ltd provides our Gates business with a distribution network through which we can channel some of our other hose and fittings products, while building out our service platform in the high growth market for oil and gas exploration.”

Gates is one of the world's leading manufacturers of industrial and automotive products, systems and components, with operations in 25 countries. It's the largest non-tire rubber manufacturer in North America. Gates is part of the industrial and automotive division of Tomkins plc, a global engineering group with more than 34,000 employees worldwide.

China blocks Rio and BHP iron ore imports

Chinese trade sources said that China has delayed issuing permits needed to import some spot iron ore cargoes from miners Rio Tinto and BHP Billiton upping the stakes in ongoing price negotiations with miners.

The delays appear to be a response to Rio Tinto's earlier declaration that it would cut by 10% the volume of iron ore delivered to term customers as allowed under its contracts in order to maximize sales on the spot market, where prices can be twice as high. But the sources did not say how many cargoes were affected.

The miners, Rio Tinto and BHP Billiton are still negotiating with steel mills over term iron ore prices for the upcoming year, holding out for more than the 65% increase that mills agreed with Brazil.

A source familiar with the situation said that "The customs authority did not say it will not issue the permits for the goods. They were just delayed.” The source added that "That only means these ores can not be cleared by the custom authority right now.”

To prevent merchants and steel mills from importing too many spot cargoes and thereby driving up spot prices during negotiations, Chinese authorities vet contracts before clearing cargoes for import and delivery to final users.

Senior officials at top Chinese iron ore importer Baosteel Group declined to comment on whether spot imports from Australia were currently being delayed.

Last week, Mr Xu Lejiang chairman of Baosteel told reporters that Australian miners were already cutting the volumes delivered under term contracts. But Mr Liu Rujun chairman of Handan Iron and Steel Group said that last week that such cut would only take effect from April 1st providing a possible trigger for the import delays.

Australian iron ore exports to China rose 1.3% in January from December.

Siemen CEO and CFO buy shares in company worth EUR 3.5 million

Mr Peter Löscher president & CEO of Siemens AG, has privately purchased an additional 50,000 shares of Siemens AG stock on the Frankfurt Stock Exchange. This follows on a purchase of 50,000 shares of Siemens stock at the end of January 2008.

The price on the XETRA electronic trading platform was EUR 66.31234 per share. The transaction had a total value of slightly more than EUR 3.3 million.

The release added that Mr Joe Kaeser CFO of Siemens AG also increased his commitment to Siemens’ stock by purchasing 3,000 shares. In two transactions in November 2007 and at the end of January 2008, Mr Kaeser purchased a total of 6,000 shares. At a price of EUR 65.96 per share, the value of transaction totaled some EUR 197,880.

Mr Löscher said that "I’m convinced that Siemens’ reorganization has set the stage for a positive future. We’re working relentlessly to correct past errors and have taken measures to ensure that our earnings reflect our positive growth prospects. I have complete confidence in Siemens’ performance.”

Mr Kaeser added that “Our company has tremendous potential that we’ll continue to tap through our Fit for 2010 program.”

Mitsubishi Heavy Aims to Double Shipbuilding Profit

Japan's third largest shipyard Mitsubishi Heavy Industries Ltd aims to more than double earnings from its shipbuilding operations next fiscal year, helped by demand for vessels to carry goods to and from China.

Mitsubishi Heavy, which builds ships ranging from liquefied natural gas tankers to container vessels, is seeking to tap demand from shipping lines to carry Chinese imports of raw materials and exports of finished goods to the rest of the world. The company, which gets 9% of sales from the business, will invest JPY 50 billion in the unit by 2010.

Mr Shiro Iijima managing executive officer in charge of shipbuilding said that operating profit at the Tokyo based company's shipbuilding and marine business will climb to about JPY 10 billion (USD 97 million) in the financial year starting April 1, from an estimated JPY 4 billion in 2008.

Mr Iijima said that “We have brightness in our shipbuilding operations at last. We are boosting spending to replace old facilities.''

Mr Iijima said that Mitsubishi Heavy expects its operating profit margin to widen to 5% to 6% in the year ending March 2012, from 2008’s 1.4% estimate.

South Korea ended Japan's 44 year reign as the world's largest shipbuilder in 2000. China overtook Japan as the second largest shipbuilding nation by new orders in 2006 and extended its lead last year, threatening to also surpass Japan by construction.

Workers end strike at top Venezuela steel plant

Reuters reported that workers have returned to work at Venezuela's largest steel maker, Argentine owned Ternium Sidor.

Mr Nerio Fuentes union secretary general told Reuters that workers ended the strike on Sunday but have not resolved the long-running conflict over a labor contract.

One striker, union leader Mr Jose Rodriguez, was shot in the leg last week when police dispersed strikers blocking a road near the plant, which produces around 4.5 million tonnes of liquid steel annually.

Hyundai Steel buys A3 scrap from Russia

South Korea's second largest steelmaker Hyundai Steel has purchased about 70,000 tonnes of A3 scrap from Russia’s Daltransit and Dow steel.

As per report the price is settled at around USD 520 per tonne C&F. The A3 scrap price normally is more expensive by around USD 3 per tonne than H1 scrap price. Therefore, H1 scrap price is estimated to be around USD 517 per tonne C&F.

In South Korea, the import scrap price from the US has reached USD 530 per tonne.

(Sourced from YIEH.com)

Japanese steel industry makes 15% of nation's greenhouse gasses

The Nikkei learned from preliminary data due out from the government this month based on reports submitted by companies under a law that promotes measures to address global warming, the top 100 producers of greenhouse gas emissions in Japan accounted for about 30% of the 1.34 billion tonnes emitted by the nation in fiscal 2006.

As per the data JFE Holdings Inc a unit JFE Steel Corp was the No 1 emitter at 60.14 million tonnes, while Nippon Steel Corp and Sumitomo Metal Industries Ltd came in second and third place with emissions of 59.28 million tonnes and 22.14 million tonnes, respectively.

The steel industry accounted for nearly 15% of total emissions, reflecting the large amounts of energy they consume, such as for burning coal to heat blast furnaces

Sandvik to acquire Germany Aubema for an undisclosed sum

Swedish industrial tools and materials supplier Sandvik AB announced that it has agreed to acquire the German technology provider Aubema Beteiligungs GmbH for an undisclosed sum.

The transaction includes Aubema's subsidiaries AUBEMA Crushing Technology GmbH in Germany and Beijing AUBEMA Technology Co Ltd in China.

Aubema based in Bergneustadt, develops and manufactures customised solutions for fragmentation of coal, coke, limestone, different types of ore, salt, fertilizer and other softer minerals and materials. The group has 80 employees and reported sales of SEK 160 million in 2007.

Mr Lars Josefsson president of the the business area Sandvik Mining and Construction said that "The acquisition is in line with Sandvik Mining and Construction's objective to be a leading provider of crushers for softer materials. Aubema has a first rate product line within soft-rock applications, good design capabilities to further develop its product portfolio and is established within the large Chinese market for coal crushing.”

Sandvik headquartered at Sandviken in Sweden is a global industrial group focusing on tools for metal cutting, machinery and rock excavation, as well as industrial materials. The group has 47,000 employees worldwide and reported sales of over SEK 86 billion in 2007.

Indonesia may allow more mining in forest areas

Reuters reported that Indonesia may relax rules to allow more mining companies to operate in forest areas. Mr Simon Sembiring director general of mineral resources at the energy and mines ministry told Reuters that this move will alarm green groups worried about rapid deforestation. But dozens of mining companies could benefit from a decision to allow firms that previously held exploration permits in forest areas to develop mines.

Mr Sembiring said that the plan would still require a presidential decree and individual firms would also need to be reviewed on a case by case basis.

Indonesia's conflicting mining and forestry regulations have resulted in considerable confusion over which areas are protected and which may be opened for exploitation. The government issued a decree in February, which allows mining firms, including open pit miners, to pay between IDR 1.8 million and IDR 2.4 million per hectare for forest land used for housing, roads, mine sites and waste dumps.

The decree applies to 13 mining firms that four years ago were allowed to resume mining operations including exploration, development and production in forest areas after proving that their projects were economically viable and had mining reserves.

The 13 firms include Freeport McMoRan Copper & Gold which operates the massive Grasberg mine in Indonesia's remote Papua province that has been a frequent source of controversy over its environmental impact.

But Mr Sembiring said that other mining companies, which had mining permits before a forestry law was issued in 1999, could also be eligible for similar permits.

Indonesia's forestry law prohibited open-pit mining in protected forest areas. But in 2004, President Megawati Sukarnoputri issued a decree allowing 13 companies to resume mining activities in these areas.

Mr MS Marpaung director of coal and minerals at the energy and mining ministry said that "Many mining companies got permits to mine in the areas a long time ago before the forestry law was issued, so why should they be stopped?"

The government decree allowing mining firms to pay what is regarded as a pittance by some environmentalists to exploit protected forest areas has sparked anger among green groups.

According to Greenpeace, Indonesia had the fastest pace of deforestation in the world between 2000-2005, with an area of forest equivalent to 300 soccer pitches destroyed every hour.

Gulfside Minerals poised to announce sites for coal mining

Gulfside Minerals Ltd announced last week the acquisition of mining rights for Mongolian. However, the company has not yet released the locations of their Mongolian sites.

According to Gulfside Minerals officials, reports on exploration and development of the sites have been submitted to Mongolian authorities.

Based upon these reports, Mr Robert L Card president of Gulfside Minerals Ltd announced that the agreements have been signed to move towards mining for coal.

Gulfside Minerals Ltd previously had acquired an option to purchase three parcels located in SW Mongolia at Gobi Altai, in north central Mongolia at Erdenet, Mongolia's third largest city and in NE Mongolia at Khentii.

According to the company’s website, Gulfside Minerals will continue to focus on coal mining because, “Coal is in great demand from China and other areas of Asia for power generation as well as steel making. Mongolian coal deposits are known for their thick coal seams which make mining lower cost than other areas.”

Homeland Energy Group to build new coal mine in South Africa

Mining Weekly reported that British Virgin Islands based Homeland Energy Group, expects to receive its mining license for the Kendal mine in the next couple of months and hopes to reach steady state production of 1.8 million tons a year by the third quarter of this year.

Mr Stephen Coates president and CEO of Homeland Energy Group in Toronto last week said that construction at the mine, in which Homeland Energy owns 74% and local partners hold the balance, has been completed and the washing, crushing and screening plants would be commissioned later this month.

The mine is located in South Africa’s Mpumalanga province, about 2.5 kilometer north east of the Kendal power station, which is owned and operated by State owned power utility Eskom. Once production begins, Kendal will supply run of mine coal to Eskom and will also sell beneficiated coal to industrial users in nearby Johannesburg.

The company expects to build a large opencast mine, with production of some 6 million tons a year, potentially supplying thermal coal to local and export power-generation customers. Outside South Africa, Homeland Energy is currently in negotiations to buy several prospecting licences in Botswana.

Mr Coates said that about 90% of South Africa’s power is generated by coal fired plants and, while the country wants to diversify to cleaner technologies, Eskom will clearly require increasing supplies of the carbon fuel as it scrambles to boost generation capacity and mitigate national power shortages.

Mr Coates said that Homeland Energy has opted for contract mining at Kendal and will award the initial three year contract in the next couple of weeks. The group has interests in several other South African properties, but the jewel in the crown is undoubtedly the Eloff prospect, on the far west of the Witbank coalfield.

Indonesia to exports 150 million tonnes of coal in years ahead

Reuters reported that Indonesia is likely to have a maximum of 150 million tonnes of coal available for export in each of the next several years due to rising domestic demand.

Mr Jeffrey Mulyono head of the Indonesian coal mining association while speaking at a Coaltrans conference in New Delhi said that Indonesia must secure its own coal demand first. Indonesia will have up to 170 million tonnes available for the export market in 2008, as domestic demand would be only 50 million tonnes, but the amount available for sale overseas was set to fall.

Mr Mulyono said that "In two and a half years, Indonesia will need to consume 100 million tonnes a year of coal.” He added that Indonesian production will rise during the next several years to a high of 400 million tonnes, but domestic demand will also keep rising as the country builds a series of coal-fired power plants.

Mr Mulyono said that "It seems like 150 million tonnes is the maximum volume which will continue to be available.”

Steel mills to raise wire rod prices

Purchasing.com reported that most wire rod producers are planning to raise mill list prices by USD 40 per tonne in April 2008.

The price announcements from ArcelorMittal, Keystone Steel & Wire, Gerdau Ameristeel and other producers match the previous USD 40 per tonne price increases in January and February 2008.

The mills are quoting list prices in March of USD 760 to USD 780 per tonne while buyer surveys show low carbon wire rod was purchased at an average USD 730 per tonne.

Mill marketing personnel said the price of wire rod is being pressured upward by increasing scrap costs. The spot purchase price of shredded auto scrap in the Midwest, for example, broke through the USD 400 per gross ton barrier earlier in the month.

EU promises to cut emissions laws in a year

It is reported that European Union leaders have made the ambitious promise to reach a deal on their reduction of greenhouse gases in one year's time

As per report the European Union have given themselves one year to produce new standards on gas emissions. The leaders also clarified that they wouldn't overburden heavy industry in their drive to fight climate change.

Following two days of talks in Brussels, Mr Jose Manuel Barroso president of European Commission argued that this was compatible with the Lisbon Strategy goals that the bloc could pursue growth and jobs while still making good on its environmental pledges, in time for global talks later in 2009. Their final statement stressed that methods to reduce the carbon dioxide that is being poured into the atmosphere must be affordable. The statement also noted that they must avoid excessive costs for member states at a time of economic uncertainty and market turmoil.

All 27 EU leaders stressed the need to ensure that the high cost of reducing emission should not drive energy intensive industries like steel, cement, paper and aluminum out of Europe or out of business.

Napocor awards coal supply contracts

Reuters reported that the Philippines largest power producer, National Power Corp had awarded contracts to supply 472,000 tonnes of coal to four Indonesian suppliers, one South African firm and one Australian company.

Napocor will spend USD 67.14 million to buy the coal for delivery between April and May for the Sual, Pagbilao and Masinloc plants once the contracts are approved by the government. It said that the six contracts were based on reference prices of USD 114 per tonne, USD 130 per tonne, USD 154.50 per tonne, USD 165 per tonne, USD 175 per tonne, USD 182 per tonne, all on a cost and freight basis.

The six coal contracts were for a gross calorific value of 5,000 kcal per kilogram, 6,090 kcal per kilogram, 6,150 kcal per kilogram, 6,000 kcal per kilogram, 6,095 kcal per kilogram and 6,000 kcal per kilogram.

In February, Napocor issued an open invitation to coal producers after failing to source coal at several auctions due to tight global supply.

Napocor is left with three coal fired power plants after it sold off the 600 MW Masinloc and 600 MW Calaca facilities as part of a privatization program. It was importing coal on behalf of Masinloc pending the transfer of ownership this quarter.

Korean shipbuilders' bumper year continues

Yonhap reported that South Korean shipyards, led by Hyundai Heavy Industries Co are raking in massive shipbuilding contracts this year, dispelling concerns that a slowdown in the US economy may pose a threat to the global shipbuilding market.

Hyundai Heavy won USD 5.7 billion worth of new contracts last month, an industry record, buoyed by growing demand for vessels to move consumer goods and fuel.

The world's largest shipyard, along with its unit Hyundai Samho Heavy Industries Co clinched USD 7 billion worth of orders in the first two months of the year, a great leap from the USD 803 million it received during the same period last year.

According to Mr Lee Young min an analyst at Kiwoom Securities, Hyundai Heavy and its unit Hyundai Mipo Dockyard Co have received orders so far this year equivalent to 25% and 30% respectively of their yearly targets. Mr Lee said that "Other shipyards such as Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co are also showing a good start in their business this year.”

Shipyards in South Korea, the world's top shipbuilding nation, have won record orders in recent years as demand has surged for vessels to transport raw materials to China and goods to the rest of the world. The shipbuilders already have enough orders to keep them busy for about four years. But investors have been worried that the US subprime mortgage crisis could leave global shipping lines facing difficulty in financing new vessel purchases this year, leading to a decline in orders.

Mr Cho Joon young an analyst at Shinyoung Securities said that "There have been concerns that shipbuilders' fundamentals may worsen as the troubled US mortgage market may pose a significant risk to the sector. But local shipyards are defying it.”

Mr Cho said strong demand for ships will remain this year, fueled by growth in China and other emerging economies.

According to London-based market researcher, Clarkson Plc, global shipbuilders have won a total of 6.38 million compensated gross tonnes in new orders for the first two months of the year, a steep fall of 36.2% YoY. But South Korean shipyards have won a combined 4 million ompensated gross tonnesin new orders, accounting for 62.7% of the total shipbuilding orders placed during the cited period.

According to Clarkson, the figure was also up 63.3% YoY, on the other hand, Chinese and Japanese rivals saw the new deals they received during the two months sink 64.3% and 73.4% respectively.

Mr Chung Dong ik an analyst at CJ Investment & Securities said that "It confirms that South Korean shipyards are maintaining their competitiveness despite a steep fall in shipbuilding orders.”

Northwest Pipe director sells shares

According to a Securities and Exchange Commission filing, Mr Mr Neil R Thornton director of Northwest Pipe Co, which makes welded steel pipe, fittings and tanks, exercised options for 2,000 shares of stock.

In a Form 4 filed with the SEC Friday, Mr Thornton reported he exercised the options Friday for USD 14 apiece and then sold 4,000 shares the same day for USD 39 apiece.

Summary of Japanese crude steel output in January

Japanese Hokkaido region's crude output was 96,400 tonnes in January 2008, down by 3.4% YoY than 99,900 tonnes in 2007; the crude steel output was 134,300 tonnes in northeast region, down by 2.1% YoY than 137,200 tonnes in 2007.

Crude steel output was 451,500 tons in the Kanto region, decreasing by 5.2% YoY than 476,100 tonnes in 2007. Crude steel output was 419,600 tons in middle region, increasing by 2.6% YoY than 408,900 tonnes in 2007.

Yusco raises stainless steel prices again in March

Stimulated by increasing nickel price, the largest integrated stainless steel mill, Yieh United Steel Corp announced to raise stainless steel prices again in March 2008.

As a result, the domestic price of 300 series stainless steel is increased by around USD 162 per tonne and that of billet is increased by about USD 260 per tonne and the export price of 300 series stainless steel prices are raised by USD 200 to USD 360 per tonne.

In addition, Yusco indicated the price increases weren’t enough to counter their elevated costs of nickel and they will probably announce another price increase in April. The average LME nickel price was USD 32,500 per tonne as compared to that of USD 28,000 per tonne in February 2008.

Update on incident in Perú

Mr Tom Albanese CEO of Rio Tinto and other senior executives spent in the city of Chiclayo in northern Peru for the search and retrieval of the victims of the helicopter accident that occurred on March 11th 2008.

The Rio Tinto executives also met with family members to give their condolences and pledge the company's continuing assistance and support. In addition, they also held meetings with the Peruvian authorities leading the search and retrieval efforts, as well as with company employees.

Mr Tom Albanese said that "I am here to extend my personal condolences and prayers and those of thousands of our employees throughout the world to you and your families during this tragic time. When communication was lost with the helicopter on Tuesday 11 March, I was immediately notified and the company initiated our emergency response procedures. Our primary concerns were the safety and health of those on the helicopter, as well as the wellbeing of their families."

Mr. Albanese also thanked the Peruvian authorities for their efforts during this difficult time. He promised Rio Tinto's continuing cooperation and assistance with their search and retrieval efforts. He also stated that Rio Tinto will fully cooperate with the Peruvian authorities in their investigation, as well as conduct its own extensive investigation of the accident. Rio Tinto has committed ongoing support to the employees' and contractors' families.

Alpha Natural appoints Mr Dupree as VP of health and safety

Alpha Natural Resources, Inc a leading Appalachian coal producer announced that Mr Allen Dupree has joined the company as vice president of health and safety, a newly created executive role.

Mr Dupree comes to Alpha with more than 20 years of experience in various capacities with the US mine safety and health administration. Most recently he was assistant district manager for mine safety and health administration District 5 at Norton in Virginia, where he was responsible for coordinating all industry mine plan approvals within Virginia and managing the district's ventilation, health, roof control and electrical departments. Prior to that, he was assistant district manager for MSHA District 6 in eastern Kentucky with enforcement oversight for approximately 200 underground mines, surface mines and facilities.

Mr Dupree will augment Alpha's existing team of safety experts and provide leadership and guidance on all matters related to mine safety. He will also provide counsel to executive management on regulatory and legislative issues related to worker safety and health.

Mr Kevin Crutchfield president of Alpha said that "Putting someone as talented and respected throughout the industry as Mr Allen Dupree in this key role signals our unwavering commitment to a philosophy of 'Running Right' at Alpha, which is grounded in our core safety principles.”

Iran and Congo ink cooperation protocol

Mehr News Agency reported that Iran’s industries and mines minister and the energy minister of the Democratic Republic of the Congo have signed a cooperation protocol agreement. The officials also voiced interest in signing agreements on mining nickel, chrome, and iron ore at quarries in the Congo.

As per agreement, the two countries agreed to cooperate in the fields of technology, industry, infrastructure, energy, housing and urban development, economy, trade, mining and geology.

Establishment of 10 cement factories in Congo with the total production capacity of 10 million tonnes, export of minerals to Iran, establishment and renovation of steam and hydro power plants of Congo, and exploration of oil fields in Congo are the other stipulations of the protocol.

Mr Ali Akbar Mehrabian Iranian industries minister noted that Iran is prepared to contribute to implementation of different projects in Congo in mining, power, energy and housing sectors with participation of the private sector.

The two sides also consented for opening an LC by the ministry of finance and economic affairs of Iran for joint ventures in governmental and private sectors.

Sempra Metals and Terramin agreement

Sempra has agreed to purchase 100,000 tonnes of zinc concentrate per annum from the commencement of production at Tala Hamza in Algeria for a period of 5 years, with an option to extend for a further 5 years. The pricing under the agreement will be based on European benchmark terms.

The tonnage agreement is only a portion of the potential initial and ultimate production rate forecast currently the subject of on going technical studies. The uncommitted production easily accommodates the commitment to supply the Algerian domestic market with metal.

Sempra has also agreed to subscribe for USD 15 million of 5 year unlisted convertible redeemable notes with a coupon LIBOR plus a margin reducing to 200 basis points.

The notes are convertible into Terramin ordinary shares at the election of the company at any time or at the election of Sempra at the volume weighted average Terramin share price for the period immediately prior to conversion. Interest may be paid in cash or shares at the election of the company.

The terms of the existing USD 5.05 million of unlisted convertible notes issued in June 2005, to assist with financing the Angas feasibility study will be amended to align with the terms of the new issue.

Terramin is building into a significant base metal production company through the development of its lead and zinc resources. Its advanced projects total over 58 million tonnes and contain nearly 4 million tonnes of lead and zinc, and are distinguished by high grades in proximity to infrastructure such as ports, roads, water and power.

Its projects in Australia and Algeria are on track to produce more than 300,000 tonnes of zinc and lead metal in concentrate per annum.

Memon awards AED 40.35 million contract

Khaleej Times reported that Memon Investments has awarded an AED 40.35 million contract for the construction of its AED 80 million Cambridge Business Centre. The project is Memon's first commercial development and was won by Cairo Contracting Company for the project in Dubai Silicon Oasis.

As the main contractor, Cairo Contracting Company joins other established industry experts, who have worked on the project such as Eng Adnan Saffarini Office for the architectural design, Stromek Emirates Foundation for the initial shoring and excavation, and a host of subcontractors and suppliers.

A total of 225 staff including project managers, site supervisors and laborers will work onsite in a bid to complete the project in 19 months.

Arabtec receives Emaar LoA for AED 520 million project

Emaar Properties PJSC has issued a letter of acceptance to Arabtec Construction Llc for the design and construction of 68 Polo Homes at Dubai Polo & Equestrian Club in Arabian Ranches. The total value of the order amounts to AED 520 million. The project is to be completed in phases over a period of 32 months.

The order brings the total number of villas currently under construction by Arabtec Construction LLC to 2,700 villas including 940 villas for Mohamed Bin Rashid Housing Program and 712 villas for Emaar and 1047 for Dubai Silicon Oasis.

Oman may slash import duty on building materials

Oman said that it is considering reducing import duty on building materials in an effort to put a cap on rising inflation in the construction sector.

Mr Khalil Al Khonji chairman of Oman Chamber of Commerce & Industry said that "We are revising the import duty on building materials to help reduce the cost of cement, steel and wood."

Oman’s import duties range from 5% to 15%. It had restricted the import of cement 2 years ago to support the sale of local firms Oman Cement Co and Raysut Cement Co, but the move caused shortage in the market.

Mr Al Barwany chairman of Al Barwany Construction said that Oman needed an extra 20,000 tonnes per day of cement to help reduce the shortage. The price of cement has doubled in the past yea. A 50 kilogram bag of cement rose from OMR 2.4 to OMR 3.6 and in the same period last year, it was only OMR 1.3 per bag.

Abu Dhabi eyeing India's energy and power sectors

Khaleej Times reported that a high power delegation of Abu Dhabi Economic Department will visit India in May 2008 to study the large potential of one of the fastest growing economies offers for investments in the energy and power sector.

Mr Talmiz Ahmed India's ambassador to UAE said that the strong economic indicators shown by India have drawn the attention of investors from around the world. He added that "A proposal is currently under study to launch a fund in the UAE, proceeds of which would be invested in the lucrative energy sector in India. At this stage we do not need to set up the fund, but have to sensitive the Emirate institutional as well as individual investors about the India's growth story."

Mr Talmiz Ahmed is of the view that The Emirates over the past 5 years have started investing heavily in Asia, thus diverting from their traditional investment plans of putting their investible surpluses in Western markets. This trend provides an opportunity to offer attractive ventures for them to invest in. For that India should have to be more investor friendly.

He said that these wide ranging funds offer different innovative investment products tailored to suit the investors' appetite for risk and encourage them to save more. He added that "There is huge scope for the mutual funds industry for their higher returns, as India's financial markets are well managed and offer handsome yields."

Turkish industrial production in January 2008 up by 11.7% YoY

According to the January Industrial Production Index released by Turkish Statistics Institute, monthly industrial production in Turkey has grown up by 11.7% YoY in January 2008.

In industrial sub sectors, the entire mining sector increased by 7% YoY while utilities and manufacturing rose by 12.4% YoY and 11.7% YoY, respectively, in January 2008. The mining sector and manufacturing sector as well as the utilities sector grew by 16.5% YoY, 15.5% YoY and 11.4% YoY, respectively, in January 2007. Thus, in comparison, production still grew in January 2008, but at a lower rate.

The highest increase in production in January 2008 was seen in the transportation equipment manufacturing sector, with a 78.8% YoY rise in January 2008. Production of motor vehicles increased by 26.1% YoY, while the metals mining sector grew by 21.8% YoY. Black coal and lignite mining rose by 19.9% YoY each as furniture manufacturing grew by 17.6% YoY.

Qalhat LNG wins 'Best in Project Finance Award 2008'

It is reported that Qalhat LNG has won the 'Best in Project Finance Award' at the prestigious 2008 Excellence in Energy Awards ceremony held in Dubai. Mr Harib al Kitani CEO of Qalhat LNG has received the coveted honor on behalf of his company.

Qalhat LNG clinched the top honor after being shortlisted for the evening's 2 main awards. The recognition is the latest in a succession of prized international awards and underlines the company's growing stature in the global energy industry.

Mr Harib al Kitani added that "It is a great honor and privilege for our company to be first shortlisted among the top three regional energy companies and then being declared the winner of the ‘Best in Project Finance Award’. We are grateful to our partners and the international oil and gas community for their support in the form of this prestigious acknowledgement."

He said “The award belongs to all the staff of Qalhat LNG who have been really dedicated, hardworking and very professional in what they are doing. The success of Qalhat LNG is proof of the high reputation and respect the Government of Oman and the private shareholders have in the international arena."

The 2008 Excellence in Energy Awards acknowledge organizations throughout the GCC region that have made significant contributions to the industry through demonstrable improvements and successes in multiple areas. These successes, driven by long-term finance project management and strategic planning, include expansion into new revenue generating areas and overcoming challenges to maintain excellence.

This recognition highlights Qalhat LNG’s vision of ‘Your Partner in Excellence’, by showcasing its outstanding achievements in all spheres, which includes completing one of the best international projects ahead of schedule and well below the allocated budget, best safety record, outstanding Omanization rate, efficient start up and increasing value to its stakeholders.

Qalhat LNG was set up as part of the government’s Vision 2020 economic charter to reduce dependence on oil revenue. It now stands testimony to the vision and the wise leadership of Mr Sultan Qaboos. This is the third year in a row that Qalhat LNG has been selected for a prestigious international award.

In 2007, it won the 'Energy Company of the Year 2006' at the much acclaimed Petroleum Economist Awards ceremony in London. It was also nominated for the best LNG company in the world and finished in the top 3 short listed companies for the 2006 CWC World Gas Intelligence LNG Award in Rome.

Completion of Indus Refinery to be delayed – Report

Reuters reported that the completion of Indus Refinery Limited has been delayed mainly because of political instability.

Mr Mohammad Sohail Shamsi chairman of Indus Refinery Limited said that the USD 900 million refinery was originally scheduled to start production in December 2007 but it is likely to be completed by October 2010. He added that "The delay is because of concerns of foreign investors, who are taking time to decide whether or not they should be investing here."

The refinery will have a capacity of 93,000 barrels a day and is being built near Port Qasim in Karachi. Foreign investors have a 89.33% shareholding in it, while the remaining 10.67% is held by local sponsors.

Foreign direct investment in Pakistan rose by 7.9% to USD 2.26 billion in July to December 2007 period. But foreign investors have been getting increasingly concerned that the attraction of hefty returns is being outweighed by political risk.

Mr Shamsi said that 70% of the equipment for his refinery had reached Pakistan and construction was under way. He added that "Up to 70% of the engineering work has also been completed. We have so far spent USD 285 million on the project."

Pakistan's annually consumes about 16 million tonnes of oil products and refines nearly 12 million tonnes. It paid USD 4.2 billion for oil imports during July to December 2007 period, up from USD 3.7 billion in July to December 2006 period.

QLNG to move into new premises by 2009

Gulf News reported that Qalhat LNG will shift into their spacious and state of the art headquarters by 2009 from its present leased offices in Qurum, following a contract with Al Ansari Trading Enterprise Llc for the construction of the company’s new head office.

The new Qalhat LNG head office will be located in the new Ghala commercial area and would be tailor made state of the art premises to minimize the energy requirements and create for QLNG staff a modern office atmosphere with international standards. The building will be equipped with the latest communication and information technology infrastructure to meet the requirements for current and future businesses.

Mr Harib al Kitani CEO of Qalhat LNG said that "We are extremely excited about the plans for our new offices in a prime upcoming business area in Muscat. We have now outgrown the space in our present offices in Qurum, which we have been occupying since 2005."

Mr Al Kitani added that the offices will also portray Qalhat LNG as a local but international company which has been internationally recognized recently as the ‘Energy Company of the Year 2006’. The building design was carried out by consultants WS Atkins International and Co which has designed these modern premises to accommodate current and potential growth of the company. Atkins has also been appointed as project consultants for the construction phase.

The building comprises of a basement car park plus three office floors and a penthouse covering a total built-up area of around 7,800 square meters placed within a total plot area of 2,600 square meters. The main construction work will be undertaken by Al Ansari Trading Enterprise Llc and is expected to be completed in a period of 13 months. The contractor, in line with Qalhat LNG’s commitment to safety, has committed to closely adhering to strict safety standards at site.

Nakilat Q4 2008 net income surged by 619% YoY

The Peninsula reported that Qatar Gas Transport Co has posted its biggest quarterly profit on record in the fourth quarter on returns from funds it plans to use to expand its fleet and higher oil prices.

Net income in October to December 2007 quarter surged by 619% YoY to QAR 40.48 million as compared with QAR 5.63 million in October to December 2006 quarter. It also posted profit of QAR 128.8 million in 2007 up by 186.8% YoY as compared with QAR 44.9 million in 2006.

Set up in 2004, Nakilat plans to own as many as 56 LNG and 4 liquefied petroleum gas tankers by 2010.

Iran to manufacture tractor in Zimbabwe

IRNA quoted Mr Ahmad Masoumifar head of office for investment & special economic projects affiliated to the foreign ministry as saying that Iran will manufacture tractors in the Zimbabwean capital of Harare.

Mr Masoumifar said that a trilateral contract to the effect has been signed by Iran Tractor Manufacturing Company, Iran Foreign Investment Company and Zimbabwe Industrial Development and Company. He added that "Under the contract, some 500 tractors will be exported to Zimbabwe in the first phase and the assembly line will be established in the next stage."

Mr Masoumifar noted that the Iranian foreign ministry will fully support the project financially or spiritually. Referring to the establishment of tractor manufacturing companies in Venezuela, Sudan, Tajikistan, Libya, Azerbaijan and Uganda, he stated that Iran has high ability in terms of manufacturing tractors based on international standards and can achieve a high share of the national markets.

He concluded that the joint tractor manufacturing company is a symbol of cordial relation for both countries and a historical event for Zimbabwe.

Labor crisis threatens Gulf construction – Report

Gulf Daily News reported that Gulf could face an acute labor shortage of up to 5 million workers over the coming 5 years as competition for wages from booming Asian countries keeps low-cost workers at home.

According to a study presented at a forum organized by the Project Management Institute, the construction sector is likely to be hardest hit with USD 1.9 trillion worth of projects planned in the Gulf region at risk of being understaffed as a result of the imminent labor crisis.

Mr Abdulmajeed Al Gassab VP of Arabian Gulf Chapter said that "The golden days of cheap labor from Asia for the Gulf contractors are gone. Now with the Asian economy booming, especially in India, such workforces are paid heavily back home and they are not keen on working in the Gulf."

Mr Abdulkarim Al Sayed CEO of Bahrain Petroleum Company said that US, Europe and Asia are also competing for skilled, cost effective labor. He added that "Coupled with the still common misconception outside the region, the Middle East is a dangerous place to work in and it is somewhat difficult to attract foreign professionals to the region."

Mr Al Sayed warned that the result of increased competition would be higher costs for developers and the likely loss of much needed skilled workers to man the Gulf’s extensive development plans. He said "The inevitable result is that employers in the region are going to have to pay inflated prices to attract the necessary resources. The cost hike would drive up the cost of projects and further restrict the development of indigenous talents."

The Gulf construction boom is also at the mercy of a supply chain bottleneck for raw materials. Driven by skyrocketing demand from competing emerging nations, in particular China, the cost of raw materials has bloated in recent years and threatens to derail regional developments, especially those that have not been able to lock in future contracts at agreeable prices.

Hunan Valin Steel 2007 net profit up by 50.8% YoY

Chinese Hunan Valin Steel Tube & Wire Co Ltd which ArcelorMittal holds 33.02% announced that its net profit in 2007 rose by 50.8% YoY to CNY 1.61 billion on higher output and exports of its steel products as well as strong market demand.

Hunan Valin Steel Tube & Wire Co Ltd said it produced 9.76 million tonnes of iron in 2007 up by 15% YoY while steel output rose 12% YoY to 11.12 million tonnes and steel products output up by 9% YoY to 10.48 million tonnes. Operating revenue rose 28.56% YoY to CNY 43.84 billion but its sales expenses also increased noticeably due to higher exports of steel products.

Hunan Valin Steel Tube & Wire Co Ltd exported 2.02 million tonnes of steel products in 2007 up by 15% YoY with a value of USD 1.3 billion up by 27%. However, selling expense was up by 24.07% YoY to CNY 606.73 million. Operating expenses up by 14.79% YoY to CNY 1.45 billion due to higher maintenance costs, while financial expense was also up 21.52% YoY to CNY 925.05 million because of higher interest payment after the central bank raised the benchmark lending rates several times in 2007.

Hunan Valin said it aims to produce 9.81 million tonnes of iron, 11.45 million tonnes of steel and 10.67 million tonnes of steel products in 2008.

Citic Pacific 2007 net profit up by 31% YoY

Citic Pacific Ltd, the Hong Kong listed arm of China's biggest state owned investment company posted a 31%YoY increase in 2007 profit, helped by higher earnings at its special steel unit.

Citic Pacific in a statement said that its net income rose to HKD 10.8 billion from HKD 8.27 billion a in 2006. Sales fell to HKD 44.9 billion from HKD 47 billion a year earlier.

Mr Larry Yung Chairman of Citic Pacific is expanding in steel and property in China, the world's fastest growing major economy. The company, whose interests range from power companies to tunnels, in October completed the HKD 4.6 billion share sale of its motor vehicle and food distribution unit in Hong Kong.

He said “In 2007, we continued to focus on developing our three core businesses, special steel manufacturing, iron ore mining and property development in mainland China and increased our investments in them. We also continued to divest our non-core businesses. This included the listings of CITIC 1616 and Dah Chong Hong. By listing these companies as separate entities, we are further demonstrating our focus on our core businesses. In addition, this helped to further unlock the true value of our Group as a whole.”

Baosteel began the construction of a new pipe coating line in a subsidiary

It is reported that Baosteel began the construction of a new pipe coating line in a subsidiary. The project will lead the production of high grade coated line pipe in China to new era.

As per report the new coating line is a supplementary project of Baosteel’s large and middle diameter welding line pipe production line, which includes inner and outer coating lines, with the specifications of the products ranging between 219 and 1,422 mm, and a design capacity of 370,000 tonnes per year.

Having a large capacity and a full processing configuration, and following a high technology standards, the line is to be completed in January 2009. Till then, the line will meet the demand for high grade inner and outer coated line pipes from consumers domestic and abroad.

Steel giant confident of its development after relocation

It is reported that Shougang Group is confident of its future development after moving out of Beijing.

Mr Zhu Jimin president of Shougang Group said that "When the relocation completes, Shougang will grow into a modern conglomerate featuring state of the art technology, high end products and efficient management. He said "When we move to Caofeidian, I am sure we will inject a new blood into the local economy and our business in Beijing will enter a new phase of development."

Mr Zhu Jimin said that it was a plan Shougang put forth in 2005. According to the plan, the headquarters of Shougang will stay in Beijing while by the end of 2010 its highly polluting steel plant will be moved to Caofeidian, some 80 kilometers to the south of Tangshan, Hebei Province.

As per report to prepare for the relocation, Shougang has made great efforts to promote its research and development of advanced technologies. Because of these efforts, the group is now able to produce improved quality pipeline and automobile steel.

The relocation is also expected to open up new opportunities for Shougang's business in Beijing. According to the overall plan of the Beijing municipal government, the land of Shougang's old plant will be transformed into a base for innovative industries.

China province wise ferroalloy production in 2 months

China’s ferroalloy output in February 2008 is reported at 1.272 million tonnes up by 11.8% YoY. And during, January to February 2008 it is reported at 2.48 million tonnes up by 10.6% YoY.

Province wise ferroalloy production is as under

(In million tonnes)

(Sourced from MySteel.net)

WISCO's iron ore import costs up CNY 6 billion in 2008

It is reported that Iron ore import costs reported by Wuhan Iron and Steel Corporation will gain CNY 6 billion and that by Shougang Mining Corp will increase by CNY 1.074 billion.

As per report WISCO's annual capacity of 20 million tonnes will demand 31 million tonnes of iron ore. The steelmaker is expected to absorb 24 million to 26 million tonnes of iron ore from overseas countries and 5 million tonnes from domestic market. It will pay additional CNY 6 billion for iron ore price increment as well as the freight rates.

According to Mr Xu Jinghai deputy general manager of Shougang Mining Corp the company plans to import 4.52 million tonnes of iron ore this year. Long term contract price for iron ore now stays at around USD 85 per tonne indicating import costs rises of some CNY 1.074 billion. However, Shougang is blessed with domestic iron ore mines hence it can ward off some cost increases in view of spot price of CNY 1700 per tonne to CNY 1800 per tonne.

(Sourced from MySteel.net)

SinoSteel intends to join in ore mining in Brazil

It is reported that China SinoSteel Corporation claimed to sign an agreement within this year expecting to supply domestic steel making with Brazil origin iron ores.

As per report SinoSteel has not been in official talks, but its partners to work with might be MMX, a mineral subsidiary of Brazilian merchant EikeBatista and other companies.

Seeking iron ore supplies aside from the top three miners has become a must option to meet China's demand and raise leverage in the benchmark talks.

Mr Xu Xiangchun a steel analyst said "From prospecting to mining of iron ore takes at least five years. But for China's economy and the steel industry, it's not really long.” He said Chinese steelmakers can first ink long term supply contracts with the smaller ore exporters and expand mining if they find the sales are good. The Chinese mills should join in the expansion projects based on local policies.

China imports over 50% of needed iron ore from abroad.

(Sourced from MySteel.net)

Wuhan gears up for Central China auto market

According to Mr Luo Changgang administration head of the Wuhan Economic & Technological Development Zone that Wuhan City is positioning as the automotive capital of Central China in view of brisk sales from the presence of global automotive giants in this historic industrial hub.

He said that the move began in 2006 when automotive output dislodged the iron and steel industry as the pillar of the local economy. By next year, the local automotive industry should turn up CNY 100 million.

Mr Lingyun Zhao dean of Hubei Academy of Social Sciences said that "Wuhan's location is perfect for the blueprint of the central 'Automotive city. The well organized infrastructure and convenient transportation can support the supply of raw materials for the industry. Unlike the export-oriented coastal cities as Guangzhou and Shanghai, Wuhan is more focused on the domestic automotive market. He said that the experts and talents storage within the automotive specialty in local colleges are very good resources for further development of the industry."

Mr Lingling Yuan the executive manager for automotive market of Wuhan Zhuyeshan Group Co Ltd said the main driver is the presence of global brands. A large number of foreign companies, such as Honda, Nissan and Peugeot Citroen are participating in the construction of the automobile market in Wuhan. The auto market is full of joint stock automobile models and lack of independent self developed car brands.

The three global brands have formed joint venture firms separately with Dongfeng Motor Corp, one of the Big Five Chinese automakers. In January, Dongfeng Honda Automobile Co Ltd reported double digit growth rates in output and sales volume from 2006 levels, according to the official website of the Wuhan municipality. Meanwhile, Dongfeng Peugeot Citroen Automobile Company noted in its 2007 financial report that both output value and sales hit CNY 20 billion as gross output volume exceeded 200,000 last year.

China's industrial output in 2 months of 2008 up by 15.4%

Xinhua reported that China's industrial output increased by 15.4% in January to February 2008 that was moderately lower by 2 percentage points than the figure for December 2007.

Mr Fan Jianping forecasting department chief of the State Information Center said that the slower pace to the seven day break during the Spring Festival and the severe snowstorms, which cut power supply, disrupted transportation and halted production in southern China. He said the slowdown also reflected the weakening of exports due to slack US demand a key market for China.

Mr Fan added that however, the slower growth does not reflect the future development trend as the snow and festival factors fade away.

The customs statistics showed China's trade surplus shrank to USD 8.56 billion in February, roughly one third of the level in the same month last year. During the first two months exports rose by 16.8% YoY compared with a 41.5% increase in the same period of 2007.

According to the NBS, output of the ferrous metals smelting and processing industry rose 14% in January to February 2008 down by 5.4% than that in December 2007. Production of crude steel and raw coal hit 79.45 million tonnes and 360 million tonnes up by 6.4% and 13.4% respectively.

Auto parts suppliers urge Beijing to keep spiking steel price in Check

It is reported that steel prices have surged over 50% since second half of last year and the pig iron purchase price has also jumped similar amount causing great pain for domestic auto parts suppliers. Therefore, Mr Li Jindian chairman of Liaoning Shuguang Automotive Group has submitted a proposal to the National People's Congress, urging the government to rein in rampant resources price upsurge.

As one of the major steel consuming sectors, automobile manufacturing has made up 50% of the steel plate consumption and 20% to 30% of various casting iron parts. Steel accounts for 70% of the raw materials for making automobiles. As a result, escalating steel price has inflicted significant loss on the sector, with the price increase magnitude already become unaffordable for most auto parts suppliers.

The casting companies have complained that their purchase price of pig iron has soared 51.6% YoY within ten months and the round steel price up 59.2% from the year before, 510 plates used in automotive frame rises 33.2% and STE 285 plate for automotive suspension increases by 16.5% YoY. Moreover, some steel mills have increased their delivery price by CNY 600 per tonne to CNY 700 per tonne on a monthly basis.

Spiking raw materials price of iron ore and coke has driven up steel price to an all time high. However, the auto parts suppliers are not allowed to hike the sales price by such big amount given current intensifying market competition.

Mr Li said "Some suppliers suggest that they would be forced to halt supply if the price rally spread into June and that might threaten the normal production of auto body producers. His proposal has already been passed to the National Development & Reform Commission.”

He said the proposal that the authority put a cap on the swelling price of raw materials such as steel, pig iron and coke to ease the crisis encountered by a great number of automobile companies. And Beijing should step up efforts in encouraging export of Chinese auto parts, which have cost competitiveness in the global market.

(Sourced from MySteel.net)

CITIC Pacific rise 40% capital for the development of its Pilbara iron ore

CITIC Pacific announced that it has rise a 40% in the capital needed to fund the development of its Pilbara iron ore mine.

As per report CITIC Pacific mining is developing an AUD 5.2 billion iron ore project 100 kilometers