India's iron ore resources can increase significantly – ICRIER

According to a study carried out by Indian Council of Research in International Economic Relations, India's iron ore resources can increase significantly from the current estimated level and there is no urgency to rush into any conservationist policy as regards to ore exports.

The study said that the size of mineral resources is a dynamic concept and depends on exploratory efforts, which have not been enough in India for lack of investments.

India's iron ore resources have increased by an average of 307 million tonne per year during 1980-2005 despite continuous extraction for domestic consumption and export. Currently, ore resources are estimated at a little over 25 billion tonne, considering a depth of 50 to 60 meters. Deposits can be found and economically mined even up to 200 meters and more.

The study pointed out that though there are concerns over reserves in view of the proposed capacity additions, a significant share of steel gets recycled. With increased use of scrap, demand for iron ore will be less.

The study added that in the current scenario, export restrictions will make it difficult to take care of excess fines. Restrictions on trade in iron ore will also restrict the economies of scale to Indian mining Companies and they may remain inefficient in global comparison forever. Such restrictions could also lead to closure of some of the mines, leading to loss of direct and indirect jobs.

India's iron ore production in 2006-07 was around 181 million tonne, which was in excess of the consumption level. India exported about 93 million tonne during that fiscal, which is expected to come down to about 88 million tonne in the current fiscal. Nearly 80% of exported ores are fines, because those are not adequately used in India. India's competitiveness in the Chinese market has already started falling, the study points out.

BBC Journalists assaulted by pro POSCO faction

SNS last week reported that at least 2 journalists were detained and assaulted allegedly by pro POSCO activists at Mahaveer temple of Nuagaon village under Kujang police station in Orissa.

As per report, a team of the BBC was in Noliasahi and other villages interacting with people on the proposed POSCO project when a mob intercepted them near the Mahaveer Temple and demanded money and snatched a camera and cash from the journalists.

Locals rushed in to intervene and someone managed to retrieve the camera as well as the cash. The villagers rescued the scribes and set them free while the accused absconded from the place.

Mr Anil Mishra police officer at Kujang confirmed the incident and said that "The miscreants had mistaken the scribes for employees of a dredging company engaged by the Indian oil corporation. No case has been registered as no complainant has been lodged."

ArcelorMittal open to other iron ore deposits

PTI reported that ArcelorMittal is now open for iron ore linkages for its proposed steel plant in Jharkhand to mines other than Chiria.

PTI quoted Mr Aditya Mittal CFO of ArcelorMittal as saying that “All I am saying is that we are open to either acquiring a different mine which fulfils our iron ore requirement or getting a direct allocation in Chiria or working it out on a joint basis. I mean we are open, we are not a closed company. We will do what we believe will ensure the viability of our project and that is important. The situation is open.’

Mr Mittal said that ArcelorMittal’s focus is to acquire iron ore capability both in Jharkhand and Orissa projects. He said “As far as the organization is concerned, we are open to good ideas. It is not that it has to be only one way. Anything that allows viability to our project is acceptable to us. Our focus is that we want to be vertically integrated. It has to be a low cost situation.”

Jharkhand government promised Chiria deposits to investors to lure them to state. And the Jharkhand government although fighting a court case in the matter has now realized that SAIL would not part with this asset as they would play a pivotal role in its growth plans.

Use of clean coal technology in Indian power sector

Mr Sushi Kumar Shinde union minister for power last week informed parliament that some of the steps being taken to adopt prevalent clean coal technologies in India are as follows

i) Supercritical Technology
In India supercritical units of 660 MW are under installation at Sipat and Barh thermal power stations of National Thermal Power Corporation Limited. Apart from these, a number of supercritical units with unit size of 660 MW to 800 MW have been planned to be set up by NTPC and state utilities. UMPPs are also envisaged to be with supercritical parameters.

ii) Circulating Fluidized Bed Combustion Technology
Four CFBC units of 125 MW each are operating at Surat lignite thermal power stations and Akrimota thermal power stations in Gujarat. Six CFBC units of 125 MW each are under execution at Surat Lignite, Giral thermal power stations and Barsingsar thermal power stations. CFBC units of 250 MW are being installed at Neyvelli by Neyvelli Lignite Corporation.

iii) Integrated Gasification Combined Cycle
So far the world over, IGCC technology has been adopted for low ash coal which is not suitable for Indian high ash coal. In India, efforts are underway to develop this technology through indigenous efforts.

Supercritical generating units are being manufactured by a number of countries like USA, Japan, Germany, Korea, Russia, China etc. BHEL has also on going collaboration for manufacture of supercritical boilers and turbine generators with Alstom and Siemens respectively. Larsen & Toubro Limited has also formed a JV company for manufacture of supercritical boilers and turbine generators with Mitsubishi Heavy Industries of Japan.

CFBC boilers are already being manufactured in India and BHEL has been supplying boilers and turbine generators for 125 MW and 250 MW supercritical units installed by power utilities.

BHEL and L&T bid for 1,600 MW power project in AP

PTI reported that 1,600 MW thermal Krishnapatnam project of Andhra Pradesh Power Development Corporation has once again received a tepid response with only two companies namely BHEL and Larsen & Toubro responding to a tender seeking supply of boilers.

The technical bids were opened by APPDC on March 5th 2008 for supply of boilers for the 1600 MW thermal project, to be based on energy efficient supercritical technology. However, APPDC would go ahead with the selection procedure and expects to award the engineering, procurement and construction contract by May 2008.

Mr K Reddy advisor to APPDC said that "Technical bids for boilers have been opened. BHEL and Larsen & Toubro have submitted their bids.

Earlier in December 2007, APPDC had cancelled tenders for power equipment after only BHEL responded. The project is expected to cost INR 8,000 crore.

After the cancellation of earlier tender, it had invited fresh bids in three packages of boilers, steam turbines and balance of plant equipment, expecting a better response. The contracts would involve manufacture and commissioning of 2 steam generators and an equal number of boilers.

Mr Reddy said that "We could not accept one single bid for lack of competition. Now, we will evaluate the technical bids, which will take at least a month. The price bids are likely to be opened on 15th April 2008."

India Cements plans investment in coal mines overseas

It is reported that India Cements Limited is heading to acquire coal mines itself after buying ships to ferry coal to its cement plants spread across in South India. The mandate now is to buy mines in Indonesia.

An official of India Cements Limited said that it has sought the services of a coal facilitator in Indonesia to shop for mines there. He added that “We are getting a lot of offers, we are evaluating each and a decision would be taken soon.”

The official said that “We have bought two ships each having a capacity of 40,000 DWT. With these we will save about USD 50 a tonne on cement which cost savings in coal movement.” He added that after this, ICL would have total control over all its raw materials except gypsum.

India Cements Limited consumes some 900,000 tonnes of coal a year. With the prices of coal in the markets touching the roof, India Cements Limited feels that that it could save considerably if it owns coal assets. Coal, which used to be available at USD 40 a tonne 2 years back is now costing USD 120 to USD 130 a tonne, this coupled with delays in coal availability for cement plants is the reason why India Cements Limited is looking for coal assets. Besides, the coal which is being imported can be used to fire its captive power plants as well.

RINL observes National Safety Day

It is reported that Rashtriya Ispat Nigam Limited’s Visakhapatnam Steel Plant had celebrated the 37th National Safety Day on March 4th 2008.

A function was organized in this connection at 3PM local time at Training & Development Centre Auditorium. Mr PK Mishra director of VSP has attended the function as chief guest and Mr VV Sashi Kumar inspector of factories Andhra Pradesh government had attended the function as guest of honor.

Mr NVK Raju deputy GM safety has welcomed the gathering and explained the importance of National Safety Day. Mr VS Rao GM environment & safety has made a presentation on safety highlights and activities of the previous year 2007.

Commemorating the National Safety Day occasion, VSP safety engineering department has conducted various competitions like safety performance & housekeeping among various departments, safety essay, debate, quiz, slogan, poster painting etc for employees and school children.

Prizes to the winners were distributed by the dignitaries of this function. The function was concluded with formal vote of thanks by Mr PMS Jayananda deputy manager media relations at VSP.

MRTPC finds cartelization by cement majors in old case

PTI reported that India’s Monopolies & Restrictive Trade Practices Commission has again pulled up cement manufacturers for cartelization, this time in a case related to Jabalpur in 2000-01.

As per report, cement manufacturers ACC, Lafarge, Grasim, Jaypee, Prism, L&T and 3 more have been found guilty by the regulator.

In its order, MRTPC said that the producers, through the Cement Manufacturers Association, acted in concert to raise prices. The regulator ordered the manufacturers to refrain from fixing the selling prices of cement in the market.

Sical Logistics starts operations of its first container train

Sical Logistics Limited recently announced that it has initiated the operations of its first container train from Hatta Road Railway station in Balaghat District of Madhya Pradesh near the Kanha Sanctuary on March 6th 2008. The train is shipping 86 containers of copper concentrate for Hindustan Copper Limited to their factory at Khetri in Rajasthan.

Sical’s 100% subsidiary Sical Multimodal & Rail Transport Limited will offer a total multimodal logistics solution to Hindustan Copper Limited in transporting their copper concentrates to and from their factories at Ghatsila in Jharkhand and Khetri in Rajasthan. Sical will also provide last mile connectivity for the finished products of Hindustan copper from their factory at Taloja near Mumbai.

Mr Ashwin C Muthiah chairman of Sical Logistics said that "We would like to thank our customers for giving us the opportunity. SMART was established by Sical to offer competitive and value added rail logistics services to customers. With the first container train flagged off we are extremely confident of our recognition as an end-to-end logistics solutions provider."

Sical Multimodal & Rail Transport Limited is one of the concessionaires of railways to run container trains in India. It has obtained category I license to run container trains across all sectors on the Indian Railway system, catering to both exim and domestic traffic.

8 firms in fray for JSEB unbundling

Ranchi Express reported that centre’s plan to provide an alternative to the people of the Ranchi on power front and consumers' hope of betterment in the existing electric supply scenario will remain confined in papers till the notification of the transfer policy of the employees of the Jharkhand State Electricity Board.

In all 9 companies have filed expression of intent to the Jharkhand State Electricity Regulatory Commission however, 8 stands in the competition after scurrility.

Even though the state cabinet approved the transfer policy 6 month back, it failed to notify it till date. The matter went to the Jharkhand High Court in due time where it is in the process of hearing.

Essar Exploration bags oil block in Vietnam

Essar Oil Limited recently announced that its subsidiary Mauritius based Essar Exploration & Production Limited has bagged an award for an offshore block in the prolific Song Hong basin in Vietnam for exploring approximately 5,925 square kilometer by the Vietnam government.

The block was offered under the recent licensing round offering 7 offshore blocks. It is a shallow water block with average water depth of 60 to 70 meters. The minimum work program for the block envisages detailed geological and geophysical studies, reprocessing of selected existing 2D seismic data, acquisition, processing and interpretation of fresh 3D seismic of 1000 square kilometer and drilling of two exploratory wells with 3,500 meter target depth. The exploration phase is estimated to last 5 years and the investment would be approximately USD 60 million.

Essar Oil is in the process of consolidating its upstream exploration and production activities under its proposed subsidiary. This will help build a strong, fully integrated oil company with upstream, refining and downstream marketing activities. Once it exercise is completed, Essar Oil will have eight oil & gas blocks and one Coal Bed Methane block. This includes onshore blocks in Madagascar, an offshore block in Nigeria, on shore block in Mehsana in Gujarat, a coal bed methane block at Raniganj in West Bengal, the offshore field Ratna & R series and 2 onshore blocks in Assam.

Adani GSPC Essar consortium plans LNG terminal at Mundra

It is reported that a consortium of Adani group, Gujarat State Petroleum Corporation and Essar Oil is planning to spend INR 10,000 crore to build a liquefied natural gas regasification terminal at Mundra in Gujarat. The 10 million tonnes per annum terminal is likely to come up alongside the Mundra port and facilitate the movement of LNG ships into the terminal.

Mr Rajeev Sharma CEO of Adani Group said that an announcement in this regard is likely soon. He added that “We are still in the process of working out how much stake each of the companies will hold in the project. We are talking to various countries in the Gulf region.”

Mr Sharma said that 2009 would be a good time to seal long term LNG contracts as there was likely to be spare supply in the global markets then, with a few gas liquefaction plants coming up across the world. He added that “The Mundra terminal is likely to be completed by 2012-13.”

Petronet LNG is also expanding is existing 5 million tonnes per annum terminal at Dahej to 10 million tonnes per annum, while Shell is expanding its terminal to 3.5 million tonnes per annum from 2.5 million tonnes per annum and plans to reach a final capacity of 5 million tonnes per annum. Indian Oil Corporation also plans to set up an LNG regasification terminal at Ennore in Tamil Nadu.

Green Ventures to invest USD 300 million in renewable energy

New York based asset management company Green Ventures International’s subsidiary Green Ventures India plans to deploy over USD 300 million in renewable energy projects and supporting trading in carbon credits through private equity.

Green Ventures' India fund is likely to be launched by June 2008.

The company will invest in existing carbon credit projects, start renewable energy projects, or link foreign grown clean or energy efficient technologies with Indian entrepreneurs.

WIPS celebrates International Women’s Day at RINL

Forum of Women in Public Sector, Visakhapatnam Steel Plant, celebrated the International Women’s Day on 8th March 2008 in a grand manner.

Mr PK Bishnoi CMD of RINL was the chief guest of the occasion and Dr Meenakshi Anantharaman CEO of Razzmatazz was the guest of Honour. Members of Steel Executive Association, Trade Unions, Visteel Mahila Samithi, other PSUs and schools are participated.

Ms R Sumee president of WIPS welcomed the gathering and thanked the management for their constant support to wards the activities of WIPS. The WIPS news magazine, ‘DISHA’ was released on the occasion. A book compiled by Dr Surya Prabha, DGM (Medical) on the ‘Health Tips to all ages of Women’ was also released on this occasion.

Ms Suprabha Menon coordinator of WIPS presented a report about the National Meet of WIPS, the theme of which was ‘New Millennium Woman – Dreams Unlimited’ and Ms N Bhanu general secretary of WIPS VSP spoke on the occasion.

BHEL asked to speed up balance package for Dadri and Jhajjar

It is reported that union power ministry has asked Bharat Heavy Electricals Limited to execute the balance package of the NTPC promoted 980 MW national capital power plant phase II in Dadri and 1,500 MW Indira Gandhi super thermal power plant in Jhajjar according to schedule.

Union ministry has expressed concern over the delays and has stated that the matter would be brought to the notice of the department of heavy industries and public enterprises. The reasons for the delay have been attributed to a shortage of qualified vendors.

In this context, NTPC Limited suggested that orders be placed in bulk and in advance as suppliers had production constraints. The projects are being set up to meet the power requirements for the Commonwealth Games in 2010.

Mr P Uma Shankar appointed as new CMD of REC

Rural Electrification Corporation Limited last week announced that Mr P Uma Shankar, an IAS officer of the 1976 batch, has taken over as its new CMD from March 1st 2008, succeeding Mr Anil Kumar Lakhina, who has since retired.

Prior to joining REC, Mr Shankar was holding the charge of MD in National Cooperatives Development Corporation.

TN approves plans to set up cogeneration power projects

BL reported that Tamil Nadu government has cleared an INR 865 crore plan to set up over 185 MW of cogeneration power plants in the cooperative and public sector sugar mills.

Tamil Nadu Electricity Board will establish the power plants jointly with the state sugar department, which runs the 15 cooperative sugar mills and the 2 public sector mills in the state. The mills will lease the land available with them to TNEB to implement the project.

TNEB will raise a 13 year loan from the Rural Electrification Corporation Limited covering about 80% to 90% of the project cost. The members in the cooperatives will bring in 10% and the balance would be in the form of equity from the government. The sugar mills will run the cogeneration facilities, which will power the mills and the surplus power will be exported to the state grid.

TNEB would pay the sugar mills the power tariff at rates fixed by the Tamil Nadu Electricity Commission after deducting the loan repayment due to the REC. The cogeneration plants would be transferred to the mills after the entire loan is paid off.

TNEB pays INR 3.15 a unit to buy the power from cogeneration units. On an average cogeneration units earn about INR 5 million for every MW of power annually. According to official sources, this was in line with the state government’s decision to set up ethanol plants and cogeneration facilities in the cooperative sector sugar mills. The objective is to add value and augment income to the mills.

TNEB’s involvement in the project, which is structured as build lease operate transfer, will help the raise funds at competitive rates. The cooperative mills which are cash strapped do not have the financial capacity. The proposal to set up the distilleries for ethanol production is also on.

Kandla Port assurances last week to avoid strike

It is reported that Kandla Port management gave the following assurances to avert a strike last week.

1) On pilotage operations at the Port, it agreed to work out, in consultation with the steamer agents’ associations and others, a smooth and efficient system for providing pilotage services. A meeting would be scheduled in a fortnight to carry forward the matter

2) On the need for maintaining the requisite depth and width of the navigational channel, Kandla Port’s deputy conservator explained in great detail the procedures followed for awarding the maintenance dredging tender and assured the Port users that the matter would be taken up with the board soon for suitable action

3) On the functioning of ABG Kandla Container Terminal Limited, it was underscored that a complete review of its operations since March 2007 would be carried out. Also, KPT was working on ensuring appropriate access to berth number 11 A and optimal utilization of berth number 11 and 11 A for containers as well as other traffic. It was also stressed that the terminal must comply with the conditions laid down in the interim order passed by Tariff Authority for Major Ports and the provisions of the license agreement

4) Kandla Port agreed to have another interaction with the trade to chart out a course of action for improving container traffic at the Port and providing appropriate related services

5) On the inadequacy of the existing infrastructure at Kandla Port, the Port management said it would take up with the ministry of shipping the issue of expediting the public private partnership projects and whether Kandla Port itself should construct some berths

6) Kandla Port will also take up with ministry of shipping the issue of appropriate representation in the board, to include users groups such as stevedores, employers as well as Gandhidham Chamber

7) On the issue of long dwell containers, action had been initiated for de stuffing the maximum number of boxes and a suitable proposal would be put up before the board for waiver of demurrage charges beyond the prescribed period of 75 days

8) On mortgage fees, the chairman informed the trade that the scale of fees prior to March 2006 was proposed to be restored and the matter would be put up before the board. The issue would also have to be properly represented before ministry of shipping, for which he requested the trade representatives familiar with this matter to help Kandla Port in preparing a comprehensive proposal

9) On the demand for Kandla Port participating in the developmental projects of Gandhidham town, the Chairman agreed, in principle, to consider involvement in the projects of the local municipal corporation and other authorities, if possible in consultation with the chamber. He, however, stressed that the Port would not take up any project which was not sustainable in terms of maintenance and which did not concern general public welfare. Also, there could be no guarantee on the scale and size of the project

10) About the transfer of long held lease land to the lessees and other land matters, Kandla Port emphasized that matters concerning land would have to be in accordance with the policy of the Union government, which was equally applicable to all Major Ports. However, it agreed to take up this issue with the government and arrive at a mutually acceptable solution in future

11) As regards regularization of pending leases, especially the salt pan leases, Kandla Port agreed that till a final decision is taken by the government and TAMP, after due consultation with all concerned, the existing lease agreements would not be disturbed. The concern of the chamber, particularly with regard to the salt pan leases, would be conveyed to the government

Gandhidham Chamber of Commerce & Industry and others port users have deferred their indefinite strike at Kandla Port that was scheduled to start from March 3rd 2008, following a series of meetings over the last 2 weeks between representatives of the Kandla Port Trust. It may be recalled that GCC&I, along with other exim trade associations and port users, had served a strike notice on their operations at Kandla Port for what they claimed was the lack of development at the Port and apathy shown towards the growing needs of the exim trade.

The Kandla Port Trust reaffirmed its desire to take steps, in consultation with Gandhidham Chamber, to resolve these issues at the earliest

Workers vandalize Vale pig iron plant at Monte Libano

AP reported that protesters from the Landless Rural Workers Movement invaded a pig iron plant in northeastern Brazil belonging to Brazilian mining giant Vale.

Vale said that the protesters vandalized buildings and machinery at the Monte Libano charcoal ranch in an extremely violent morning raid in the northeastern city of Acailandia.

Vale said that “The movement, known by its Portuguese language initials as MST, claimed the invasion was linked to Saturday's commemoration of International Women's Day.”

Vale said the protesters threatened plant workers and blocked the major Belem-Brasilia highway near the plant with tires and tree trunks. Police were called to assess the damage and protect Vale facilities.

It was the third time that the protesters had shut down the railway, which supplies Atlantic ports for shipment overseas.

Exxaro KZN Sands Furnace No 2 damaged

Diversified resources group Exxaro Resources Limited announced that a water ingress incident has resulted in substantial damage to Furnace 2 at the KZN Sands Empangeni central processing complex.

It said that no one was injured during the incident and the incident and extent of the resultant damage is the subject of a detailed investigation at present.

The incident has resulted in Furnace 2 being shut down. Furnace 2 was due for a scheduled maintenance shut beginning in June 2008 and the incident will require this planned four month shut to be brought forward. Preliminary estimates suggest that the repairs to the furnace will increase the total downtime by a further four months, including a one month ramp up period.

Although Furnace 1 is fully operational, the outage at Furnace 2 is expected to result in significant lower production of both slag and low manganese pig iron in 2008 when compared to the 2007 financial year.

Details of JFE expansion plans at Fukuyama Works

To meet further growth in both domestic and overseas demand for high end steel, JFE Steel intends to spend JPY 150 billion yen on plant investment to secure an additional 3 million tonnes of high end steel output, aiming to expand its domestic crude steel production by approximately 10% to 33 million tonnes per year.

The West Japan Works is the world’s largest steelworks, with current annual crude steel production of 21.5 million tonnes. JFE Steel plans to increase its capacity to 23 million tonnes per year by raising production capacity at the Fukuyama plant by a net 1.5 million tonnes to 13 million tonnes in an undertaking that will witness the construction of a new slab continuous caster and other steelmaking facilities.

Details of the facilities to be expanded are as follows
1. New construction of slab caster of 2.4 million tonnes
2. Expansion of degasser
3. New construction of slab finishing line
Operation is slated to start in the first half of FY beginning April 2010 and the total investment is approximately JPY 50 billion.

Five years have passed since the merger that created JFE Steel Corporation; during that time, the company has worked diligently to improve its financial base and expand production, primarily of high-end steel. The result of these efforts has been an increase in domestic crude steel output capacity from an initial 26.5 million tonnes to 30 million tonnes per year. Overseas, the company has improved its ability to supply high end steel by establishing Guangzhou JFE Steel Sheet Co Ltd, a Chinese joint venture, among other activities.

JFE Steel’s crude steel production forecast for FY ending March 2008 is 30.3 million tonne on non consolidated basis and 34 million tonnes on consolidated basis.

BHPB bid for Rio – Chinalco stake bolsters BHP rejection

It is reported that the recent purchase by Chinese aluminum group Chinalco of a stake in world No 2 miner Rio Tinto adds fire power to Rio's rejection of BHP Billiton's hostile takeover bid.

Mr Tom Albanese CEO of Rio told reporters in Toronto after a speech to a mining conference last month that "I see this as a strategic investment that Chinalco have made and it reinforces the value message that we have been saying from the beginning.”

Mr Albanese on the sidelines of the Prospectors and Developers Association of Canada convention said that "Chinalco's investment in Rio Tinto was unsolicited and unexpected and they don't seek the influence of management, they don't seek to put a person on the board.”

Chinese aluminum group Chinalco and US firm Alcoa Inc surprised markets by taking a 12% for USD 14 billion stake in Rio Tinto. Chinalco's chairman has said his company has no plans at this stage to increase its stake beyond that.

FMG may sell stake in infrastructure unit

It is reported that Fortescue Metals Group Ltd. wants to sell 49% stake in Pilbara project rail and port unit for its AUD 2.8 billion.

Mr Graeme Rowley ED of FMG said in an interview ''We always created The Pilbara Infrastructure Pty as a separate company because we saw that as being an entity that might be attractive to a different group of investors. Our first option is the very strong cash flow we have and we would attempt to manage it out of that.''

Mr Rowley added that ''Invariably the people that are interested are your customers. We may want to hang onto the value side of the business, the iron ore, ourselves.''

Fortescue is scheduled to ship its first ore to China in May after signing supply accords with mills including Baosteel Group Corp.

The mine, in the Pilbara region in the north of Western Australia State, is targeting an initial production rate of 55 million tones a year and the company is looking to increase that to 200 million tonnes a year through the expansion.

Algoma Steel to boost production after BF 6 firing

The Sault Star reported that Algoma Steel Inc's committed to a near doubling of production will include firing up a second blast furnace.

Ms Brenda Stenta manager of corporate communications of Algoma steel said that "Work on No 6 blast furnace is proceeding according to plan with a targeted start in late spring early summer, depending on a number of variables.”

She added that the twinning of the idle No 6 blast furnace with workhorse No 7, the Sault Ste. Marie steelmaker's lone operational furnace, would go a long way towards achieving the corporation's expanded production targets.

BF No 6, idle for more than a dozen years, since it performed a six-month backup in mid 1995, has the capacity to contribute one million tons of liquid iron annually, half the new production target. Prior to the backup assignment, No. 6, commissioned in 1953, had been out of service since June, 1991.

ASI expects to invest a minimum USD 500 million in the next three to five years aimed at increasing annual steel production from 2.5 million tons to 4.5 million tons.

US DOC extends Ad review on SS pipe fittings from Taiwan

US Department of Commerce has issued a notice of extension of time limit for preliminary results of antidumping duty administrative review on certain stainless steel butt weld pipe fittings from Taiwan.

On June 1st 2007, US DOC published a notice of opportunity to request an administrative review of the antidumping duty order on stainless steel butt weld pipe fittings from Taiwan for the period of review of June 1st 2006 through May 31st 2007.

On June 28th 2007, Flowline Division of Markovitz Enterprises Inc, Shaw Alloy Piping Products Inc and Taylor Forge Stainless Inc requested an antidumping duty administrative review for sales of SSBWPF from Taiwan produced by Ta Chen Stainless Pipe Co Ltd, Liang Feng Stainless Steel Fitting Co Ltd, Tru-Flow Industrial Co, Ltd, Censor International Corporation and PFP Taiwan Co Ltd.

On June 28th 2007, Ta Chen also requested an administrative review of its sales to the United States during the POR.

On July 26th 2007, the Department published the notice initiating this administrative review.

The preliminary results are currently due not later than March 1st 2008. Department is extending the time limit for the preliminary results by 120 days to not later than June 29th 2008, in accordance with section 751(a)(3)(A) of the Act. However, as that date falls on a Sunday, the preliminary results will be due not later than the next business day, June 30th 2008.

Vallourec 2007 net profit up by 7.5% YoY

Seamless tube major Vallourec announced that its full year net profit reached EUR 986.2 million up by 7.5% YoY as compared to EUR 917 million in 2006.

Vallourec said that its operating profit is EIR 1.623 billion up by 5% YoY, EBITDA rose by 5.1% EUR 1.751 billion giving an EBITDA margin of 28.5% down from 30.1% in 2006,

For 2008, Vallourec said it expects its EBITDA margin to be around 25% in the first half, which it called a high level in the face of an economic climate characterized by the weakness of the US dollar and the sharp rise in raw material costs. It also reiterated its guidance for flat underlying sales this year but specified that it expects 2008 sales to be at least equal to 2007 whereas previously it simply guided for sales in line with 2007.

Vallourec confirmed that it plans to pass on via price increases the impact of changes in the euro to dollar exchange rate and of higher raw material costs, notably the recent surge in iron ore prices. It said “The date on which such increases will be applied will depend on the duration and nature of Vallourec's existing commercial commitments.”

Vallourec also announced a plan to achieve annual cost savings of more than EUR 200 million by 2010 at its existing sites. Vallourec said the plan will involve all units, with a focus on equipment utilization rates, improved material consumption and energy savings, in addition to initiatives to reduce purchasing costs and overheads. In the mid term, the savings will be in addition benefits expected from a new pipe mill in Brazil and synergies generated through acquisitions currently in progress in the US.

In the longer term, Vallourec said the outlook for premium seamless tubes remains favorable, particularly in the oil & gas and power generation markets.

Korea Power to increase coal imports in 2008 by 15%

Reuters reported that South Korea state utility Korea Electric Power Corp is planning to boost coal imports by 15% in 2008 with a trebling in shipments from South Africa more than offsetting lower Chinese supplies. The increase in coal imports comes as Korea Electric Power Corp plans to build an additional 1,500 MW to 2,300 MW of coal fired power plants by the end of this year to meet growing domestic demand.

Korea Electric Power Corp said that its five power utilities will import 63.65 million tonnes of bituminous coal in 2008 up from 55.28 million tonnes a year ago.
1. Increase Australian coal import to 21.14 million tonnes up from 15.14 million tonnes in 2007
2. Decrease imports of Chinese coal by a quarter to 6.93 million tonnes in 2008.
3. Imports from South Africa will increase to 13.9 million tonnes in 2008 about three times higher than the 4.4 million tonnes imported in 2007.

Korea Electric Power Corp also said that it had already contracted to buy about 91% of its expected demand, a big shift from last year when annual deals covered only 76% of imports.

Coal fires about 36% of South Korea's power plants, while nuclear power is its biggest source of electricity with 39%.

BSRM Steel goes into trial operation

It is reported that Bangladesh based BSRM Steel Limited’s 0.375 million tonne per annum capacity rolling mill at Fauzderhat area of Chittagong went into trial operation last week.

As per report the rolling mill complex has been installed with all brand new machines from the Danieli of Italy at an investment of The BDT 370 crore.

Mr Alihussein Akberali chairman of H Akber Ali Group said “We have successfully commissioned the trial operation of the BSRM Steel Limited. On Thursday afternoon, finished steel bars rolled down on cooling bed at the mega steel mills. It took nearly two days to activate the total production process at the gigantic project.”

ACCC extends queue management system at DBCT

The Australian Competition and Consumer Commission have authorized the limited extension of the current vessel queue management system in place at Queensland's Dalrymple Bay Coal Terminal.

ACCC said that continuing the QMS should reduce demurrage costs and increase efficiency in the short term.

The QMS rations the amount of coal each producer can export via DBCT in a bid to ensure that the amount handled by the terminal matches the amount the chain can deliver.

Noting the intended short-term nature of the QMS when it was conceived in 2005, the ACCC expressed concern that the continued operation of the QMS has the potential to impact upon long term investment in the coal chain, reduce incentives for industry to develop a long term solution and reduce the likelihood of competitive entry in above rail haulage services."

ACCC criticized the industry for being slow to address the underlying capacity issues in the Goonyella coal chain and restated that the measure was not a lasting solution to the industry's transport woes.

ThyssenKrupp Marine Systems announces restructuring

ThyssenKrupp Marine Systems AG, headquartered in Hamburg, will restructure as of April 1st 2008. In a meeting of the Supervisory Board on March 7th 2008, it was decided that the naval shipbuilding and merchant shipbuilding sectors of Blohm + Voss GmbH are to be divided into two legally separate, autonomous companies.

From April 2008, the naval sectors of Blohm + Voss GmbH, Hamburg, and Nordseewerke GmbH, Emden, will be brought together under one roof as TKMS Blohm + Voss Nordseewerke GmbH. The company will be headquartered in both Hamburg and Emden.

The merchant shipbuilding sector of Blohm + Voss GmbH will change its name to Blohm + Voss Shipyards GmbH, simultaneously taking over the company management of HDW-Gaarden GmbH, Kiel. Both companies will concentrate on the merchant shipbuilding business. The frigates 125 designated for Blohm + Voss will still continue to be built in Hamburg.

As part of these structural changes, the merchant shipbuilding and repair sectors at the Hamburg site will be strengthened and expanded. The same holds true for the Emden site for naval surface vessels.

Under the guidance of ThyssenKrupp Marine Systems AG as a holding, three companies will steer the operative business in the future
1. TKMS Blohm + Voss Nordseewerke GmbH, Hamburg and Emden, focusing on naval surface vessels,
2. Howaldtswerke -Deutsche Werft GmbH, Kiel, focusing on submarine, and
3. Blohm + Voss Shipyards & Services GmbH, Hamburg/Kiel, focusing on merchant shipbuilding, repairs, offshore and components.

The business activities of the foreign shipyards of Kockums AB, Sweden and Hellenic Shipyards SA, Greece, both part of the TKMS Group, will be integrated into these new structures. These companies specialize in submarine and naval surface vessel construction.

Warren Fabricating picks Blytheville for new facility - Report

The Union City Daily Messenger reports that Ohio based Warren Fabricating and Machining Corp has chosen Blytheville in Arkansas State of US for the site of a new USD 500 million steel mill over a site in northwestern Tennessee.

Mr Kingsley Brock economic administrator of Tennessee told the newspaper that the company notified the state last month that it picked Blytheville over the Cade's Landing economic development project on the Mississippi River near Tiptonville.

The project includes a steel mill plant and fabrication shop and could employ up to 1,000.

Police continue to block tin supplies from Bangka Island

ITRI reported that action by police on Indonesia’s Bangka Island aimed at controlling ore shipments from illegal mining continues to affect tin supplies from the island. As per report, state owned tin company PT Timah is now facing delays in shipping refined tin, ore supplies to a private smelter have been seized and PT Koba Tin remains out of operation.

PT Timah, Indonesia's largest tin producer, said exports of the refined metal are now being delayed after local police seized and sealed a boat containing ore on February 22nd 2008, blocking access for the mining company's overseas shipments.

Mr Abrun Abubakar told Bloomberg in an interview that “We want to export, but the boat that is being investigated is in the way. Exports are being delayed, and we expect to resume on the 10th.”

PT Timah ships ore and metal through its private port near its Mentok smelter.

Japan exports 37,000 tonnes of rebar in January 2008

According to statistics, Japanese rebar export volume reached 37,230 tonnes in January 2008.

The first three importing countries are South Korea which imported 27,102 tonnes, America which imported 5,354 tonnes and Porto Rico imported 4,456 tonnes.

(Sourced from YIEH.com)

Brockman on the move with 1.1 billion tonne iron ore resource

Western Australian iron ore company, Brockman Resources Limited has positioned itself at the forefront of Australia's emerging iron ore sector after announcing a major upgrade in the JORC Compliant resource estimate for its 100% owned Marillana Iron Ore Project in the Pilbara region to 1.1 billion tonnes of haematite mineralisation.

As per release the resource encompasses both Channel Iron Deposits with grades ranging from 55% to 60% Fe and detrital ore with grades ranging from 40% to 62% Fe. The updated mineral resource was prepared by Perth based Snowden Mining Industry Consultants Pty Ltd.

Mr Wayne Richards MD of Brockman said that the updated mineral resource inventory was based on three deposits within the Marillana Project, which is located 100 kilometer north of Newman. He added that "This represents a substantial uplift in tonnage from the initial Indicated Resource of 43.5 million tones grading 57.6% Fe announced last year for the North West Sector deposit and significantly exceeds our previously announced target of confirming a mineralisation potential of at least 100 million tonnes at Marillana.”

Mr Richards said that "This gives us great confidence that Marillana has the potential to develop as a world-class iron ore project, capable of producing ore as a Direct Shippable Ore product with an average grade of over 59% Fe. A Scoping Study is already well advanced on a potential 10Mtpa DSO operation, with the updated resource providing a strong foundation for our development activities moving forward.”

The updated resource includes the previously reported CID mineralisation at the North West Sector deposits, as well as initial estimates for the CID and detrital mineralisation at the Rockhole Bore and Abalone deposits. Significantly, it includes an Indicated Mineral Resource for the North West Sector of 338 million tonnes of CID and detrital mineralisation.

Highlights:
1. Total JORC Compliant resource estimate of +1.1 billion tonnes of haematite mineralisation.
2. Includes 338 million tonnes of Indicated Resources within North-West Sector alone.
3. Beneficiation test work confirms that detrital mineralisation can be upgraded to +59% Fe.
4. Potential for +550 million tonne of Final Product grading 57.5% to 59.8% Fe.
5. Positive initial results from Scoping Study on potential 10 million tonne per annum operation.

Polish coal to be mined by Czech company

TVN 24 reported that Czech based corporation Karbonia PL has applied for a permit to undertake mining activities in a Polish coal mine. As per report Karbonia PL has plans to restart the dormant Dębieńsko 1 mine in Czerwionka-Leszczyny, Upper Silesia in southern Poland.

Karbonia PL is a company controlled by New World Resources energy holding company. Netherlands based holding is the main coal producer in Czech Republic.

Mr Mike Salomon president of New World Resources energy told TVN 24 that “Our application for a mining license in Dębieńsko 1 mine represents another step bringing us closer to executing our comprehensive strategy of growth in Central Europe, especially by finding new possibilities in Poland”

New World Resources energy is likely to expand its activities in Central Europe and enter the Polish market in pursuit of its growth strategy experts predict.

Baffinland arranges equity financing for Mary River project

It is reported that the Toronto based mining company Baffinland Iron Mines Corp has arranged a USD 175 million equity financing, to be used mainly for exploration and development at its Mary River mining project in Nunavut.

As per report a syndicate of underwriters led by Raymond James Ltd. has agreed to buy 47,945,205 common shares of the company for USD 3.65 each. That's a slight discount to the market price for the stock just prior to a trading halt issued ahead of the announcement.

Baffinland Iron recently estimated it will cost USD 4.1 billion to develop the Mary River iron ore mine.

Mr Gordon McCreary CEO of Baffinland said that a feasibility study on the project shows the proposed open-pit mine would have a 20 year mine life, based on proven and probable reserves of about 365 million tonnes of iron ore.

Harbinger Capital boosts stake in AK Steel to 11.8%

In an amended 13G filing after the close on AK Steel Holding, Harbinger Capital disclosed an 11.8% stake in the company. This is up from the 9.1% stake the firm showed in a February filing.

As of June 1st 2007, Harbinger Capital Partners was managing in excess of USD 8.7 billion. Harbinger is a disciplined, value investor with an emphasis on intensive credit research. Its focus is on middle market companies that tend to be misunderstood or under researched by the market. Investment approaches include: Restructuring/Bankruptcy, Turnaround, Liquidation, Event Driven, Capital Structure Arbitrage, Short Sale and Special Situations. Harbinger Capital Partners is a subsidiary of Harbert Management Corporation.

AK Steel produces flat rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.

SA approves rail and road project for 2010 World Cup

It is reported that the first African country to host soccer's World Cup, South Africa has embarked on a multi billion dollar infrastructure development program ahead of the 2010 World Cup.

South Africa government has approved a ZAR 8.6 billion rand road and rail improvement scheme to help cater for thousands of visitors expected for the 2010 World Cup. The project is designed to cut journey times and road deaths.

The Moloto rail corridor project will link Gauteng province, the country's economic hub around Johannesburg, with Mpumalanga province in the northeast close to the popular Kruger National Park.


It has specifically targeted public transport, refurbishing trains and railway lines, improving roads and scrapping un roadworthy taxis which ferry thousands of commuters to work.

Worthington expands presence in Mexico

Worthington Industries announced that its JV, TWB Company LLC, will now include ThyssenKrupp Tailored Blanks SA de CV, ThyssenKrupp Steel's Mexican subsidiary. With the contribution of the new Mexican operation, ThyssenKrupp Steel North America will own 55% of TWB Company and Worthington Industries 45%.

Headquartered in Monroe, Michigan, TWB Company has 400 employees in five facilities, two of which are located in Saltillo and Hermosillo, Mexico. ThyssenKrupp's Mexican subsidiary is located in Puebla with 38 employees. TWB is one of North America's leading suppliers of tailor welded blanks for use in the automotive industry.

By assuming the majority ownership of TWB, ThyssenKrupp Steel furthers the integration of TWB into their worldwide tailored blanks network. ThyssenKrupp also has tailored blank facilities in Germany, China, Turkey, Italy, Sweden and the Czech Republic.

Serviacero Worthington, a 50% owned joint venture with Serviacero Planos has announced plans to expand further in Mexico with a Greenfield site in the Monterrey, Mexico region. The addition of this facility would give Serviacero Worthington three locations in Mexico. The first phase of the Monterrey steel processing operation will include slitting with pickling and blanking added in phase-two. Serviacero Worthington is a steel service center with facilities in Leon and Queretaro in central Mexico.

Worthington Industries is a leading diversified metal processing company with annual sales of approximately USD 3 billion. The Columbus, Ohio, based company is North America's premier value added steel processor and a leader in manufactured metal products such as metal framing, metal ceiling grid systems, pressure cylinders, automotive past model service stampings and laser welded blanks. Worthington Industries and its subsidiaries employ more than 8,000 people and operate 68 facilities in 10 countries.

High input cost causes price hike of steel products – PSM

Daily Times reported that Pakistan Steel Mills has been advised to link its steel products prices with the international market in order to curb the black marketing, smuggling and other illegal trade activities. These recommendations have been made in continuation to review the product prices in a recently held workshop organized by Pakistan Steel Pipeline Association.

A Pakistan Steel Mill statement said that the recent increase in the products’ prices is mainly attributed to the substantial increase in the prices of basic raw materials such as iron ore, coke, coal and other materials.

The coking coal prices have been increased to USD 290 per tonne from USD 210 in a week, which also increased the prices manifold. Besides, freight prices are also high to add the cost of doing business of PSM.

Mabani Steel poised to increase PEB capacity

Constructioonline.com reported that Ras Al Khaimah based PEB major Mabani Steel has already been contracted for 64 pre engineered steel building projects within 6 months of having launched commercial production and is eagerly waiting to get its expansion projects on stream to cater to the growing demand for its products.

Mabani Steel is set to complete the construction of its new 2,000 tonnes per month structural steel fabrication facility, with commercial production of hot rolled steel structures expected to commence in January 2008. Mabani Steel is also expanding its head office building by 50% or 1,000 square meters to accommodate the additional engineering requirements of the structural steel fabrication unit and those of an identical factory that it is planning to construct in Saudi Arabia in 2009.

Mr Muayyad Khudairi president of Mabani Steel said that “All the covered space, material handling systems and equipment to achieve our monthly targeted production capacity of 6,000 tonnes of pre engineered steel building and 2,000 tonnes of hot rolled steel structures will be in place by December 2008. Our challenge now is staffing. We have made a decision to recruit only experienced steel engineers and detailers and we are progressing well in this effort. However, there is a shortage of experienced fabricators in this region and in Asia and this is delaying our earlier goal of achieving full pre engineered steel building production capacity by January 2008. We are now hiring structural steel fabricators and training them in PEB and we are confident that we can achieve our full pre engineered steel building production capacity of 6,000 tonnes by July 2008.”

He added that “Mabani Steel owns the most sophisticated and the most automated shot blasting and painting equipment in this region and has dedicated an entire 4,000 sq m building for this activity. The equipment we bought enables us to meet the demand for the highest end multi-coat epoxy and polyurethane paint system that are often specified by consultants in this region.”

Mabani Steel currently produces 2,500 tonnes of pre engineered steel per month, which is expected to rise to 6,000 tonnes by July 2009 as the engineering department and the pre engineered steel factory are gradually staffed to achieve the targeted levels. Mabani Steel claims the distinction of being the only pre engineered steel building manufacturer in this region that complies fully with the latest US codes applicable to steel buildings. It offers erection services for its products in the UAE and employs 150 erectors for this activity.

FPCCI terms PSM prices hike as unjustified

The Federation of Pakistan Chambers of Commerce & Industry has said that Pakistan’s business community is very much concerned on continuous increase in price of steel products by Pakistan Steel Mill.

Mr Tanvir Ahmad Sheikh president of the Federation of Pakistan Chambers of Commerce & Industry said that Pakistan Steel Mill has increased the prices of their products in two times in a month which is hurting the construction industry and large number of small & medium industries affiliated with construction

Mr Tanvir further said that on average the prices increase in last two months is more then 50% which will slow down the manufacturing activities in Large Scale Manufacturing, Engineering Industry as well.

Mr Tanvir added that “Some end users claim that current prices of Pakistan Steels are even higher then imported material, therefore to promote local production and encouraging use of local iron it is necessary for the Government to intervene in the matter for bringing stability in supply of Iron & Steel at reasonable prices which can also play important role in bringing down ever increasing trade deficit.”

India scraps minimum wage plan

Gulf Daily News reported that India seems to have turned on plans to impose a minimum wage for its citizens migrating to the Gulf as it has no intention of enacting the proposal. Mr G Gurucharan joint secretary financial services at the union ministry of overseas Indian affairs said that India would not impose a minimum wage.

Mr Gurucharan said that India had earlier given the power to Indian ambassadors in various countries to prescribe the minimum wage for women workers between USD 300 and USD 350 based on local conditions. He added that "The reason that we prescribed the wage limit for women workers was they were not covered under local labor laws."

It may be noted that an official at the embassy in Bahrain said that India would band its unskilled workers from migrating to the kingdom unless they were paid a minimum wage of BHD 100 a month. He added that "An announcement concerning the Emirates and other Gulf states was due this month. We will be sending a clarification to the ambassador soon on this subject."

The future of India's minimum wage plans was thrown into doubt on media reports claiming the country may scrap the idea due to opposition from contractors and government officials. The minimum wage rule was due to come into force on March 1st 2008, was delayed until the ministry of overseas Indian affairs resumed work on Monday.

The minimum wage proposal for unskilled Indian laborers follows October’s successful implementation of a USD 265 minimum wage for maids in the kingdom. In February 2008, Indian government followed this legislation with an introduction of a minimum wage of USD 299 for its female domestic workers recruited to work in the UAE.

Dubai International Capital to invest in India

Dubai International Capital has announced that it is planning to make big acquisitions in India, adding to the USD 1 billion already invested in India.

Mr Sameer Al Ansari executive chairman & CEO of Dubai International Capital said that "We have big deals in the pipeline. We are very actively looking at more things in India." He added that areas of interest include petrochemicals, oil and gas, tourism and travel.

Mr Ansari said that Dubai International Capital, which is owned by Sheikh Mohammed bin Rashid al Maktoum, aims to increase the value of assets it manages in India, China and Japan to USD 5 billion within 2 to 3 years and in the Middle East and North Africa to a similar amount from USD 1.5 billion.

He added that "In the region, every sector has huge opportunities because of the demographics, young population and growth."

PEPCO to have additional 6,000 MW electricity by 2010-11

Mr Munawar Baseer Ahmad MD of Pakistan Electric Power Company said that it will have an additional electricity of 6,000 MW by 2010-11 as a result of new projects in both public and private sector on fast track basis.

Mr Ahmad said that a new 500 MW power project would be ready by the end of 2008, while another 300 MW project was being rehabilitated by WAPDA. He added that "An open cycle power project of 300 MW was also coming up on fast track basis in the private sector, besides a 700 MW power unit."

He said that Karachi Electric Supply Corporation had to arrange its own power generation to meet the growing demand for Karachi. He added that "If we do not get the payment against the supplied electricity, how can Karachi Electric Supply Corporation expect to get power from us. Karachi Electric Supply Corporation also needs to recover PKR 15 billion from the government departments and PEPCO arrears are more than that amount."

Mr Stefan Hatt VP of ABB said that "Pakistan needs to go for gas fired power plants which are economical and needs lesser time for commissioning."

Northwest Oil Group to build oil refinery in Syria

FIS reported that Northwest Oil Group CJSC has won the tender on the construction of an oil refinery in Syria.

Northwest Oil Group CJSC will act as the project operator jointly with its subsidiary NWOG. Investments into the construction are estimated at USD 1.2 billion and may take 3 to 5 years to finish the construction.

The oil refinery will have the capacity of 140 barrels per day and will make oil products in conformity with Evro 4 and Evro 5 standard.

Real estate sector still going strong in Egypt

Daily News Egypt reported that despite soaring steel, cement and land prices, Egypt’s real estate market is still attracting developers and investors looking for safer havens in the shadow of a global slump.

According to HC Securities, construction costs in Egypt have surged by 27% since January 2008 pressured by continued hikes in raw material prices, namely steel rebar and cement. Steel currently sells at record highs of more than EGP 5,300 per tonne up from EGP 3,900 in December 2007. Cement sells at around EGP 500 per tonne up from EGP 380 per tonne in December 2007.

Ongoing upsurges in steel and cement prompted Egyptian property developer Mr Hisham Talaat Moustafa to ring the alarm. Mr Moustafa, who is also chairman of the General Section of Real Estate Investment, said that "GSREI would not overlook escalating prices in steel and cement that will eventually affect not only the building and construction industries, but also domestic economy and society in general."

HC Securities statement said that “Nevertheless, construction sector in Egypt is growing remarkably, fueled with heavy Gulf investments. Dwellings average price per square meter reach levels as high as EGP 8,000. Investments will continue to pour into the economy, fueling growth across the board. Egypt has been attracting investments and with a US slowdown and a possible similar scenario taking place in Europe, Gulf and foreign investors will be more interested in investing in Egypt, especially since growth rates are expected to remain strong in fiscal year 2007-08.”

Several Gulf investors have recently eyed Egypt’s promising real estate market, developing several mega projects in parallel. Dubai’s heavyweight Emaar Properties revealed investments of around USD 5.8 billion in four projects nationwide. Market rival Damac is pouring in USD 22.9 billion in four luxury residential projects in Egypt. Similarly, Dubai Holding Company revealed intentions to invest some USD 4 billion in real estate projects in Egypt. Al Futtaim Group also plans to bring Dubai Festival City to Cairo with investments totaling USD 3.4 billion.

(Sourced from Daily News Egypt)

Private sector to construct refinery in northern Iran

Tehran Times reported that management of National Iranian Engineering & Construction Company is intending to construct 300,000 barrel Caspian oil refinery in Golestan Province.

Mr Ali Asghar Sajadi MD of National Iranian Engineering & Construction Company said that the main aim of construction of this refinery is to process crude oil from countries surrounding the Caspian Sea. Before now Turkmenistan and Kazakhstan had also announced willingness to invest in this project. He added that the studies to choose the location and placing of the refinery have begun and investment on the project will come from the private sector.

The report added that the operations are expected to cost in the region of IRR 600 billion and with the completion of the project, possibility for docking of 70,000 tonne tankers will be achieved. It has also been decided to construct three 63,000 tonnes oil tankers in the north of the country with another 3 orders being placed with Russia.

Operations to expand the Neka port lagoon to 1 million to 1.5 million barrels capacity will be carried out by a JV between a Dutch and Iranian company under management of Naft Khazar Company by April 2008. The operation will last 18 to 20 months. The project is now in the stage of contractor selection.

National Engineering & Construction Company said that the new refinery foreign investment will come from Malaysia, Indonesia and Syria according to signed agreements. The feasibility studies on the Indonesian side have ended and the time has been assigned. The Syrian studies are still under way.

Bahrain signs exploration deal with Thai PTT Exploration

Gulf Daily News reported that Bahrain has signed a new oil exploration deal with PTT Exploration & Production, hoping that the contract will bring a wave of oil discoveries after 75 years. PTT Exploration & Production will operate Block 2, located offshore in the north of Bahrain which covers about 2,228 square kilometers.

Dr Abdulhussain Mirza oil & gas affairs minister of Bahrain has signed an exploration & production sharing agreement with PTTEP, under which it will be drilling two wells offshore in the Khuff formation. He added that the total exploration period will be 6 years and in case of a discovery, the production term will be 24 years.

Dr Mirza said that the soaring cost of oil, which this year hit USD 100 per barrel, meant even a small or medium sized discovery made the project economically viable. He is confident the project will be successful and pointed to PTTEP’s track record in establishing international ventures in Iran, Algeria, Egypt and Oman.

Mr Khun Mrigadat president of PTTEP said that it is unlikely to start drilling until 2009, when it has completed a geological study and seismic survey of the area at a cost of USD 13 million.

Thailand’s PTTEP and US major Occidental were awarded exploration rights last year to explore three out of four Bahraini blocks. Occidental will operate Blocks 3 and 4 to drill three wells to the Arab Formation. Block 1 will remain for future bidding.

In 2006, Bahrain produced about 35,000 billion barrels per day of crude oil. Its proven oil reserves stood at about 125 million barrels as of January 2007. Over the years, Bahrain has been slow to explore for oil in its offshore waters. Unlike most GCC countries, Bahrain imports about 225,000 billion barrels per day of Arab Light crude oil from Saudi Arabia, for which it shares production via a subsea pipeline linking the two countries.

NDRC price index for February 2008 up by 25.6% YoY

According to Saturday's China Securities Journal, average price of steel products in China surged by 25.63% YoY in February 2008 to CNY 5,095 (USD 717) per tonne.

Figures from the National Development and Reform Commission, which are based on market surveys in 30 provinces, autonomous regions and municipalities, also showed that the average steel product price rose by 2.6% MoM from January 2008.

Mr Zhang Ping an analyst with umetal.com said "The production of some iron and steel manufacturers decreased due to the weather related disruptions that affected central and southern China and pushed steel product prices up. Raw material costs, including those for iron ore and coal, also boosted steel prices.”

Chinese rebar export prices firm despite domestic correction

It is reported that the despite the halt in price hike and small correction in domestic rebar prices in China, export offers were raised further by steel makers as they wish to get better profit than domestic sales considering that overseas market prices have caught up now.

Chinese construction steel prices saw small decrease this week and this is believed to be the result of profit-taking on the market. At the same time, there is also likelihood that the prices are close to tops.

In Shanghai, HRB335 20mm rebar is being quoted at CNY 4760 per tonne to CNY 4780 per tonne, HRB400 rebar at CNY 4910 per tonne to CNY 4930 per tonne. Commercial wire rod goes at CNY 4980 per tonne, hi speed cargo at CNY 5030 per tonne to CNY 5040 per tonne. As expected, prices for HRB335 20mm rebar are moving down after they arrived CNY 4900 per tonne to CNY 5000 per tonne.

As per report prevailing offer for commercial rebar is at USD 810 per tonne FOB with contract price at about USD 800 per tonne FOB. Low carbon wire rod is being quoted at USD 870 per tonne to USD 880 per tonne FOB.

Rebar export tonnage totaled 142,509 tonnes in January 2008 down by 31.88% MoM and for wire rod went is 317,152 tonnes a decrease of 11.4% MoM.

China exports 15.3 million tonnes more coke in 2007

Xinhua reported that China sold 15.3 million tonnes of coke overseas for USD 3.05 billion in 2007 a growth of 5.8% YoY and 52.4% YoY respectively as compared to 2006.

The average price of the exports was USD 199.60 per tonne up by 44.1% YoY. The price rise is attributed to mounting demand on world markets, increasing production cost and a tax policy shift.

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

In million tonnes

China began to levy a 5% export duty on coke in November 2006. It raised the tax rate to 15% on June 1st 2007. As the world's largest coke producer and exporter, the country has a say in pricing for coke on international markets. Foreign buyers chose to bear price rises based on the 15% export duty.

ZYPOSCO puts new tinplate line in operation

It is reported that a tinplate production base with annual production capacity of 250,000 tonnes was formally put into production at Qinhuangdao in Hebei Province on February 28th 2008. The construction started in April 2007, following an agreement signed on December 21st 2006.

The project, run by ZYPOSCO, a JV of Guangnan Limited, the listed subsidiary of GDH Limited and POSCO's fully owned subsidiary POSCO China, has a total investment of USD 60 million.

Mr Luo Jianhua general manager of ZYPOSCO said the company's ETL production line runs at 450 meters per minute and has capacity of 250,000 tonnes.

After the operation of this project, Guangnan Limited has two tinplate production bases in Zhongshan and Qinhuangdao respectively with an annual production capacity of 500,000 tonnes, ranking the second in the country.

(Sourced fro MySteel.net)

Wuhan’s steel project at Fangchenggang to break ground

It is reported that Fangchenggang City and Wuhan Iron and Steel Company signed a MoU recently for the construction of the Fangchenggang iron and steel base project.

As per report representatives from Fangchenggang City visited Wuhan Iron and Steel Company and had a talk with the managers of the company. Both parties agreed on boosting the iron and steel base project in Fangchenggang.

Mr Hu Wangming deputy GM of Wuhan Iron and Steel Company said “Fangchenggang project is in accord with national industry policy and has advantages in location, resources and transport. The project should be realized as soon and our company will develop the project a high grade and high quality iron and steel production base, contributing to the development of Fangchenggang City.”

Chinese ferromoly export prices hold firm despite thin trade

Platts reported that the export price of Chinese origin ferromolybdenum has held firm at USD 79 per kilogram to USD 80 per kilogram CIF Rotterdam this week unchanged from a week ago amid thin trade.

According to one local trader, offers were around USD 80 per kilogram CIF Rotterdam but, his company had done no spot deals this week. He said "Prices are very steady despite little buying interest. Overseas consumers still have some stocks available and they are not in a hurry to buy."

A Chinese producer said "We are focusing more on domestic sales than on exports as we get better prices in the local market. Domestic demand from steel mills is strong and we have supplies enough only for local consumers. He added export prices in the near future would hold steady on strong domestic consumption and reduced exports from China. Prices are also expected to go up once overseas demand picks up as consumers abroad come back to replenish stocks after March.”

According to latest customs statistics, China exported a total 1.068 million tonnes of ferromolybdenum in January 2008 down by 27.23%YoY.

Shougang to produce 350,000 tonnes of SBQ plates in 2008

It is reported that Shougang medium plate plant plans to produce 1.05 million tonnes of steel products including 350,000 tonnes of shipbuilding plate in 2008.

As per report, the plant will try to produce over 400,000 tonnes of ship plate, over 60,000 tonnes of SQ550D and over 20,000 tonnes of high strength construction steel.

Hunan Nonferrous and American Tungsten ink strategic pact

Canadian press reported that Chinese non ferrous major Hunan Nonferrous Metals Corp has forged a strategic alliance by purchasing a stake in Vancouver based North American Tungsten Corp.

North American Tungsten announced a private placement to sell approximately 13.4 million units at a price of CAD 1.45 as part of a strategic alliance. The funds will be used for the development of Mactung, which is expected to have a feasibility study completed in the third quarter of 2008.

Mr Stephen Leahy CEO of North American Tungsten Corp at PDAC had highlighted China’s tight grip on the tungsten market given its 85% share of global production. He said that “There has been no exploration in the western world for several decades.’

North American Tungsten produces 4% of the world’s supply of the specialty metal used in tools and steel alloys and has both a producing project Cantung near the Yukon-Northwest Territories border and the biggest high grade deposit Mactung nearby.

Plan for Ansteel and Bensteel merger may be issued soon

Deputy to the National People’s Congress Mr Zhang Xiaogang, also the general manager of Anshan Iron and Steel Company said in First Financial Daily interview that he hopes Ansteel and Benxi Iron and Steel reorganization would make progress soon.

Board of Benxi Iron and Steel also Committee member of Chinese People’s Political Consultative Conference Mr Yu Tianchen expressed to Financial Daily that the merger plan will be announced and affirmed the reorganization work will make headway.

It’s worth noting that the inner integration of two parities finished last year and now waiting to be approved by the State Council.

The organization process will be very complicated, since Anshan Iron and Steel and Benxi Iron and Steel both of them owned subsidiary listed steel companies. Director Wang Xiaoqi of Stated-owned Assets Supervision Administration Commission of the State Council said at the end of last year that the reorganization of two parities would adopt stockholding system.

Ansteel ranked the fifth in domestic steel industry, and if finished the integration with Benxi Iron and Steel, the output will likely to excess that of Baosteel Group, which ranked first at present.

Angang claims of sufficient iron ore linkages

It is reported that Liaoning Province based Angang has stored up sufficient resources of iron ore.

Angang has 8.9 billion tonnes of proved iron ore reserves in Anshan and Liaoyang nearly a quarter of the nation's total. In the meantime it had participated in mining in Australia as early as in 1990's. It tied up with Gindalbie Metals on the Karara project in 2006 and then took a stake in Gindalbie the next year.

As per report, Angang Mining Corporation sets two targets:
1. 22.3 million tonnes iron concentrate output to post a leading position at home
2. 40 million tonnes iron concentrate output

In 2007 Angang output of pig iron and crude steel both topped 16 million tonnes. Yet, the ongoing expansion of steel scale currently three bases: Anshan, Bayuquan and Chanyang will pose increasing demand for iron ore resources and it's a big element whether iron ore supply can keep up with Angang's growth and the plan to vault into fortune 500.

(Sourced fro MySteel.net)

Chinese demand fuels Mauritanian iron ore sales

Reuters cited Mr Mohamed El Moctar Ould Mohamed El Hacen Oil and Mines Minister of Mauritania's as saying that strong Chinese demand for iron ore helped Mauritania's state owned iron ore producer SNIM to post record sales last year. The Societe Nationale Industrielle et Miniere, which is 78% owned by the state, reported sales of USD 557 million last year on production of 11.8 million tonnes and its net profit reached USD 180 million.

Mr El Hacen said that strong Chinese demand for steel had pushed up iron ore prices around the globe, boosting the company's revenues. He said "SNIM is benefiting from very favourable conditions, including sales which reached record levels in 2007."

Mr El Hacen said SNIM aimed to increase its production by at least a further 4 million tonnes a year, excluding its participation in the new USD 2.15 billion Guelb El Aouj iron ore project which is expected to export its first iron in 2011. He said this venture being led by Qatar Steel, a subsidiary of Industries Qatar with the participation of Australia's Sphere Investments.

Mr Mohamed Ali Ould Sidi Mohamed MD of SNIM's told analysts in Paris last month that the company's iron ore reserves could rise from current levels of around 1 billion tonnes to as high as 5 billion tonnes or 6 billion tonnes. He said production could reach 18 million tonnes a year by 2012. Four to fifths of SNIM's production currently heads to Europe, with one fifth going to China.

SNIM is planning a USD 600 million investment at the Guelb 2 site, to the northeast of Mauritania's northern mining hub of Zouerat. Production from Guelb El Aouj is eventually expected to reach 7 million tonnes a year.

It is one of three partnership projects currently being developed by SNIM. The others are Tazadit 1 venture with China's state owned Minmetals, which expects production of 2.5 million tonnes by 2010, and the Guelb El Agareb project with ArcelorMittal.

Xining's net profit in 2007 up by 41.7%YoY

It is reported that China’s Xining Special Steel Company reported 2007 net profit of CNY 473 million up by 41.7% YoY. Sales revenue rose by 68.2% YoY to CNY5.8 billion and operating income reached CNY 507million up by 70.3% YoY compared with the 2006 figure.

As per report Xining produced 1.15million tonnes of crude steel up by 44.1%YoY increase. Followed the government’s energy saving campaign, the Qinghai Province company built two 31,500KVA transformers, four filters and four cooling towers last year which reduced coal consumption by 19 kilogram per tonne of steel produced and water from 24.6 tonnes to 7.29 tonnes.

Xining invested CNY 5.1million to develop iron ore resources within the province to take more control of its own raw material supply. The company's main products are special steel slab, plate, wire rod and bar.

Baosteel SA 738B nuclear power steel verified by Westinghouse

It is reported that Baosteel’s SA 738B steel for nuclear power has passed the last examination of US Westinghouse Electtic’s nuclear power steel qualification management system and been produced in bulk.

It will provide the steel to China’s third generation nuclear power plant.

This is the first time for Baosteel to organize production in accordance with the standards of international nuclear power materials qualification system.

Jianlong aims at CNY 7.3 billion revenue in 2008

It is reported that the production value of Heilongjiang Jianlong steel company reached CNY 4.5 billion in 2007 and the development of the company also boosts the large increase of the economy in Shuangyashan, where the iron ore resources are abundant.

In 2008, Jianlong steel plans to invest more than CNY 1 billion to finished eight projects including the No 2 sinter and the 0.2 million tonnes of seamless steel pipes. Then the prime operating revenue will reach CNY 7.3 billion and the tax CNY 350 million.

Dniprospetsstal net profit in 2007 up by 76% YoY

Millennium Capital reported that Dniprospetsstal's shareholders have approved the company's financials and voted for USD 68 million in dividends or USD 63.4 per share.

Dniprospetsstal increased net sales in 2007 by 47% YoY to USD 740.8 million, EBITDA grew by 75% YoY to USD 116.5 million and net income by 76% YoY to USD 68.3 million.

Mr Andriy Ivasiuk analysts of Millennium Capital said that “In H1 of 2007, DNSS benefited much from the booming stainless steel market but slowed down its financial performance at the end of the year due to a cooling market.”

He added that “In late February the stainless steel market started going up again, which will support DNSS' strong position. At the same time we want to emphasize the company’s reporting improvement. We associate this with a probable step towards IPO preparation.”

Nord Stream pipeline to be built in line with schedule

RIA Novosti cited Mr Vladimir Putin president of Russia as saying that the construction of the Nord Stream gas pipeline will proceed in line with the schedule.

Mr Putin Putin after a meeting with German Chancellor Ms Angela Merkel said "I will say once again that we are firm in our intention to continue joint construction of the Nord Stream gas pipeline in line with the plans and the schedule."

Russian energy giant Gazprom is building the pipeline together with Germany's E.ON under the Baltic Sea to pump Russian natural gas to Germany.

Indian auto component majors eying Russian market

RIA Novosti cited Mr Rantideb Maitra executive director of India's Engineering Export Promotion Council as saying that India plans to take over a substantial part of Russia's auto components market.

He said this will be a trial visit. If five or seven Indian companies get a foothold in Russia, there could be up to 150 of them in Russia next year.

Mr Maitra said that India was an active participant in international fairs and exhibitions and that participation was yielding positive results. He said an examination of the participants of any major exhibition will prove that India is a major player, translating its participation into orders. He added that the establishment of foreign car assembly plants in north-west Russia gives Indian companies a chance to supply auto components to that market.

Mr Maitra said India is a leading exporter of auto components. Auto production giants such as Mercedes, Ford and BMW, order their components in India. He said there are several centers in India producing auto components for international companies. General Motors buys them from Chennai, the capital city of Tamil Nadu, while Mercedes places its orders with the production units based in Puna.

Mr Maitra also said that Indian companies are ready for fair competition with firms from industrialized countries, including China. India has one of the largest workforces in the technical sector and believes in its bright future because of the great number of graduates with a technical education who enter the job market every year. He said "The Soviet Union was India's partner, and I see no reason why Russia cannot remain its partner."

Odfjell cancels contract with Sevmash for 12 vessels

It is reported that Russian shipyard Sevmash lost a USD 500 million contract for up to 12 bulk chemical product carriers with Norwegian Odfjell SE because of production delays and price increases in February end.

Odfjell SE said that it is canceling the contract as its terms were violated. Odfjell said that the fixed total contract price for all 12 vessels was about USD 500 million but Sevmash later increased that to USD 544 million. Odfjell also said it would claim full compensation for its costs and losses caused by what it called willful misconduct and massive contract breaches.

Sevmash, located in Severodvinsk on the White Sea, denied breaching the contract and accused the Norwegian company of failing to agree on a fair price for its work. Mr Mikhail Starozhilov spokesman of Sevmash refused to comment further on the dispute but said that the yard would continue building the vessels and try to find another customer.

In a similar conflict, Sevmash has fallen behind the schedule on the USD 1 billion contract to modernize the Soviet-built Admiral Gorshkov aircraft carrier for the Indian Navy and demanded to more than double the price. The Indians have complained vociferously, and negotiations are continuing.

Vostochniy Port traffic in 2 months up by 29% YoY

FIS reported that according to recent data, Vostochniy Port handled almost 1.170 million tonnes of cargoes of different purposes in February 2008 up by 29% YoY.

Its universal transshipment complex handled 132.400 tonnes up by 90% YoY and specialized coal complex handled 1.037 million tonnes of coal up by 24% YoY.

Vostochniy Port processed 2.454 million tonnes in January to February 2008 up by 19% YoY. Its universal transshipment complex handled 270,600 tonne up by 157% YoY and specialized coal complex handled 2.184 million tonnes up by 12% YoY.

Total invites Gazprom to Nigeria

FIS reported that the French oil and gas company Total offered Gazprom OJSC to jointly implement oil and gas projects in Nigeria.

According to preliminary data, Total is set to manage the technical aspects of the projects and to transfer necessary technologies to Gazprom. The companies will cooperate to share the risks related to local political instability and development of hard-to-reach deposits.

The parties abstained from any comments. Nigeria's proven reserves total 4.9 billion tonnes, gas 5.2 trillion cubic meters. In 2006, Nigeria produced 3% of the world's oil output.

LUKoil buys hydrocarbon assets in Uzbekistan

RIA Novosti reported that Russia's major private crude producer LUKoil has closed a deal to buy USD 580 million worth of oil and gas assets in Uzbekistan.

LUKoil said in a statement that "LUKoil Overseas has closed a deal with the oil company SoyuzNefteGaz to acquire a 100% stake in SNG Holdings Ltd including SoyuzNefteGaz Vostok Ltd which is a party to a production sharing agreement for the fields in Southwest Gissar and Ustyurt Region in the Republic of Uzbekistan."

The deal gives LUKoil access to seven fields in Uzbekistan with estimated reserves of 100 billion cubic meters. The production sharing agreement was signed on January 23rd 2007 for 36 years and came into effect on April 23rd 2007.

An estimated USD 700 million will be invested in the project. The company said USD 70 million has been invested so far.

LUKoil said hydrocarbons from Southwest Gissar fields will be processed at the Shurtan Gas and Chemical Unit while the dry gas produced there will be shipped via Gazprom transportation networks Central Asia-Center and Bukhara-Urals.

Ukraine parliament recommends to increase gas price

According to the Ukrainian News, Ukraine parliamentary committee for fuel and energy, nuclear policy and nuclear safety has recommended that the National Electricity Regulatory Commission review the structure of the natural gas price of Ukrnafta and other gas extracting companies.

The committee recommended that National Electricity Regulatory Commission to take into account the production costs and low profits that prevent the gas producers from exploiting wells and developing new deposits.

UNAF currently gets from Naftogaz Ukraine a gas price of USD 39.45 per 1,000 cubic meters. Until February 28th 2008 the gas price was USD 53.90 per 1,000 cubic meters. UNAF appealed against the latest gas price decrease.

Enel offers Gazprom stake in power plant

Reuters reported that Italy's Enel is offering Russian gas export monopoly Gazprom a minority stake in an Italian power plant as reciprocity for gas supplies to OGK-5.

Mr Fulvio Conti CEO of Enel said Enel had given Gazprom a choice between five power stations, which he declined to name, for the minority stake offered. Gazprom would pay USD 200 million to USD 250 million for it.

He said "With Gazprom we have a very open, friendly cooperation ongoing. In terms of reciprocity we are offering a minority stake in one generation asset in Italy."

OGK-5 is one of six wholesale generation companies in Russia. It has four power plants with a total capacity of about 8,672 megawatts.

GM and GAZ on a low budget car deal

It is reported that General Motors and GAZ carmaker are close to an agreement on forming a venture to produce budget cars. The companies may sell the cars for less than USD 10,000 each.

As per report production at a GAZ plant in the Nizhny Novgorod region of central Russia would be able to turn out 50,000 cars per year initially and as many as 300,000 a year later. GAZ would need to invest about USD 1 billion in the project.

GM is the only foreign carmaker in Russia that both build cars on its own and with a local partner. Its models are also assembled at a private plant in Kaliningrad, as well as in Ukraine, Kazakhstan and Uzbekistan.

Orsova Shipyard net profit in 2007 up by 3.48% YoY

It is reported that Orsova shipyard registered in 2007 a net profit of RON 7.032 million up by RON 236.997 million as against 2006. The company's total revenues grew by some RON 15.3 million compared to the previous year standing at RON 97.466 million and spending increased RON 15.35 million up to RON 89.219 million.

As per report Orsova shipyard turnover stood at RON 87.376 million up 9 million as against 2006. At the end of last year, Orsova shipyard had to recoup debts worth RON 11.442 million and to recoup debts of RON 37.409 million.

Orsova Shipyard is currently an entirely private stock company. Its shareholders are SIF Transilvania 50%, SIF Oltenia 12.13%, non-resident customers 9.93% and other shareholders 27.94%.

RZhD to invest heavily in Far East Russia

FIS reported that about RUB 113 billion will be invested into the development of railway infrastructure in the period up to 2015.

At the conference of railway specialists in Khabarovsk last week President of RZhD Vladimir Yakunin told about investment projects to be implemented in the Russian Far East.

In 2008, RUB 2 billion will be invested in the reconstruction of the Owne Vysokogornaya section and construction of a new railway tunnel in the Komsomolsk-on-Amur - Sovetskaya Gavan section will cost RUB 59.9 million in current prices.

The project aims to increase the throughput of the railway that is used to transport domestic cargoes for the Far East's territories and Sakhalin Island and foreign trade cargoes to and from APR countries as well as transit cargoes. Another important project is the construction of the second phase of the bridge across the Amur River near Khabarovsk.

All in all, RZhD is planning to invest about RUB 113 billion into the development of the Far East's rail infrastructure, of these RUB 50 billion into Transsib's reconstruction and RUB 63 billion into BAM