TATA Steel announces 2007-08 results

TATA Steel Limited has announced the following audited results for the year ended March 31st 2008

TATA Steel has posted a net profit of INR 46870.30 million for the year ended March 31st 2008 up by 11% YoY as compared to INR 42221.50 million for the year ended March 31st 2007. Total income has increased from INR 179847.60 million for the year ended March 31st 2007 to INR 200282.80 million for the year ended March 31st 2008, registering a growth of 11.3% YoY.

The consolidated results are as follows
TATA Steel has posted a profit after minority interest & share of profits of associates of INR 123499.80 million for the year ended March 31st 2008 up by 195.6% YoY as compared to INR 41772.70 million for the year ended March 31st 2007. Total income has increased from INR 256504.50 million for the year ended March 31st 2007 to INR 1321100.90 million for the year ended March 31st 2008, registering a growth of 415% YoY.

Addressing the media, Mr B Muthuraman MD of TATA Steel said that the TATA Steel group vision was to set a global benchmark in value creation and to increase the return on capital invested to 30% by 2012. He added that "Our aspiration in due course is to become a 50 million tonne plus steel company. Our bearings and tubular divisions are working on products for the TATA Nano."

Pencil ingot prices on fire in Kolkata region

Kolkata
Pencil Ingot

Price in INR per tonne
Inclusive of ED and VAT
Delivery - FOT

The movement of prices has been as under

This spurt in prices is attributed to coal and power shortages,

(Sourced from www.steelprices-india.com)

Government cannot ask steel major to hold prices - Mr Paswan

Mr Ram Vilas Paswan union steel minister said that the government cannot intervene again and ask major steel producers to hold prices for another few months at a time when global prices are hardening. He added that "Government cannot intervene every time as steel rates are governed by international prices."

Mr Paswan said that prices of iron ore and coking coal, the two main raw materials for steel making, have significantly shot up in the global market in over the last one year adding to cost of production of domestic steel players.

He said that “The government would not like the steel industry to close down for lack of profit, but would certainly monitor if prices have been upped in proportion to the increase in cost of raw materials. The government has no problem as long as steel producers raised prices in proportion to hike in input costs."

It may be noted that, in May 2008, leading steel makers had reduced prices of flat products by INR 4,000 per tonne and that of rebars and structural steel by INR 2,000 per tonne, endorsing government's concern that steel prices were exerting inflationary pressures on economy. The producers had also promised the government to hold their price line for 3 months.

TATA Steel to consolidate raw materials in an international firm

ET reported that TATA Steel is planning to form an international company for consolidating its raw material assets that are spread across the world and which could eventually be used to raise funds for future acquisitions.

Mr Koushik Chatterjee group CFO of TATA Steel said that "We will reorganize our group structure to unlock shareholder value over the next 6 to 12 months for growth in raw material assets and new market strategies. We are looking at an overseas group structure below TATA Steel to create the appetite for acquisitions. Since it would require capital, we are looking at various options."

Mr B Muthuraman MD of TATA Steel said that "Ownership of raw materials and a continuous improvement in production has been the key to TATA Steel’s profitability. In fact we have believed in owning raw materials for the past 100 years."

In addition to mining assets in India TATA Steel also owns raw material assets such as coal and limestone mines through joint ventures or completely, with the assets spread across countries such as Australia, Oman and Mozambique.

Work stops at NINL due to strike by contractual workers

SNS reported that production in Nilachal Ispat Nigam Limited in Kalinga Nagar industrial complex has come to a grinding halt for the last 2 days following a cease work agitation by the contractual workers demanding revision of wages and permanent status of their jobs.

Official source said that nearly 1600 contractual workers under the banner of Neelachal Contractual Sangha are on a dharna before the entrance and exit gates of the plant demanding to fulfillment their 22 point charter of demands. It added that blast furnace of NINL had been shut down following the agitation by the contractual workers, mostly of blast furnace unit of the plant who apparently operate the furnace.

Mr Bijay Kumar Panda MD of NINL said that "Blast furnaces of the plant have been shut down following agitation of the contractual workers. We had a meeting to resolve the issue yesterday but it yielded no result. We have instructed the contractors under whom the agitating workers are working to have a negotiation with them. I hope the problems will be resolved amicably."

Mr Pratap Kumar Panda leader of Neelachal Contractual Sangha said that "We are compelled to go for a strike as the management refused to hike the minimum wage for contractual laborers. Hence we demand abolition of contractual job system and introduction of equal work, equal pay principle to all."

NINL sources said that nearly 1600 contractual workers were engaged in raw materials handing division, supply unit, coal handling and blast furnace site of the plant. Since these units were vital, absence of contractual workers hampered production thus the company incurred a loss of about INR 18 crore in two days of their agitation.

Rebar prices in ER surge by 7% in one week

Kolkata
TMT
12mm
Fe 415

Price in INR per tonne
Inclusive of ED and VAT
Delivery - FOT

(Sourced from www.steelprices-india.com)

POSCO war zone - PPSS claims recovery of arms from school

SNS reported that lawlessness reigned supreme in Govindpur village as anti POSCO activists have confined two persons and claimed recovery of huge cache of weapons and bombs from Govindpur school premises.

The POSCO Pratirodh Sangram Samity activists claimed to have made a break through to the assault and murder of Mr Dula Mandal. They alleged that "We confronted a pro project activist Mr Narottam Mohanty, confined and interrogated him."

Some of the anti POSCO activists then assaulted schoolteacher Mr Jadumani Das to ascertain as to who had attacked Mr Mandal. Basing on the information provided by Mr Mohanty and Mr Das, they raided the school premises and claimed to have recovered six boxes containing country bombs, 75 swords and other weapons.

It may be noted that Mr Mandal and other anti POSCO activists had clashed near the Govindpur primary schools premises on June 20th 2008. Bombs were hurled and Mr Dula Mandal died in the attack.

The PPSS which is observing a Black Week since June 22nd 2008 had alleged that it was a pre planned attack by goons who had been hiding at the school. The counter version was that a pro project faction was holding a meeting at the school when their rivals started pelting stones leading to the violence.

Police had arrested 22 people in this connection with the clash even as PPSS activists aggressively held a meeting attended by CPI leader Mr AB Bardhan and leaders of all Opposition political parties. The arrests and police action had irked pro project activists who said that strangely the administration was behaving like stooges of the PPSS.

Plate cutting from ship breaking up by 7.5% in 10 days

Alang
Plate cutting
1”

Price in INR per tonne
Inclusive of ED and VAT
Delivery - FOT

(Sourced from www.steelprices-india.com)

Caterpillar to expand manufacturing operations in India

As part of its strategic plan to increase its manufacturing footprint in the rapidly growing Asia Pacific region, Caterpillar Inc announced a four year, USD 200 million investments to increase manufacturing capacity in India.

Caterpillar will invest to significantly increase production for off highway trucks made at its facility near Chennai. Those Caterpillar trucks are used for coal and other mining applications in India. The company also plans to expand engine production at its facility in Hosur, adding production of the Caterpillar 3508 engine. The 3508 engines will be used primarily in off highway trucks produced by Caterpillar in India.

The company is also investing in increased India production capability for backhoe loaders. The backhoe loader is the most widely used construction machine in India, and Caterpillar has already more than quadrupled production of backhoe loaders in country in recent years. The company is also studying increasing its range of products made in India, with the possibility of building additional manufacturing facilities to meet demand for other earth moving products.”

Mr Jim Owens chairman & CEO of Caterpillar said that "Caterpillar machines and engines are being used by our customers in India to drive sustainable development and to support economic growth in the areas of infrastructure development, commercial and residential construction, mining, power generation and energy production."

He said that "We are pleased to continue contributing to the growth and development of India. This additional investment demonstrates Caterpillar's commitment to customers in India and the importance of such emerging markets as we build our proven global business model across the Asia Pacific region, an area that is critical to Caterpillar's 2010 and Vision 2020 goals."

Mr Tom Bluth vice president with responsibility for Asia Pacific manufacturing operations of Caterpillar said that "This increased capacity will help Caterpillar serve customers in India and Asia-Pacific with world-class machines and engines produced in the region and serviced by our unmatched dealer organization. For the industries we serve, Caterpillar already has the widest base of operations and product support in the world, and we will continue to invest in our business in the rapidly growing Asia Pacific region to meet the needs of our expanding customer base in these critical markets."

HR and CR prices increase by 15% in Pune in last 10 days

Pune

Price in INR per tonne
Exclusive of ED and VAT
Delivery - FOT

It is learnt that traders and stockiest are in buying mode to build stocks as the market news indicate that HR prices will go up by INR 5000 per tonne on July 1st 2008

These materials are mainly used by auto component makers

(Sourced from www.steelprices-india.com)

ArcelorMittal to roll Jharkhand steel plant in 5 years

The Telegraph reported that the proposed Jharkhand plant of ArcelorMittal at Torpa Kamdara will start steel production in 5 years. The plant will have an initial capacity of 6 million tonnes and will be doubled later as the company gets leases for more iron ore.

ArcelorMittal’s investment is one of the largest in the state. It will be the first Greenfield plant of the company after several decades. Work on the project report and the mining project has started and will be completed shortly.

ArcelorMittal’s plans for a steel plant at Keonjhar in Orissa will be in two phases of 6 million tonnes each. It is still to get an iron ore concession in the state. It has received provisional approval from the Orissa government to acquire 7,500 acres of land at Keonjhar. Some 6,000 acres will be used for the steel plant, 1,000 acres for a 1,500 MW power plant and the rest for a township. It is expecting mining concessions in nearby areas, which will help to create synergies.

CCEA approves financial restructuring of Bharat Wagon

Cabinet Committee on Economic Affairs has given its approval for financial restructuring of Bharat Wagon & Engineering Company Limited as per following

1. Department of heavy industry will provide INR 26.83 crore non plan fund for discharging employee related dues up to March 31st 2008 and outside liabilities and subsequent reduction of equity by INR 26.83 crore against accumulated losses. This figure may undergo minor change by updating liability up to date of transfer of BWEL to ministry of railways.

2. To convert plan and non plan loan of GOI/BBUNL amounting to INR 79.81 crore as on March 31st 2008 into equity and subsequently reduce the equity by INR 79.81 crore with a corresponding reduction in accumulated losses.

3. To waive normal and penal interest of INR 45.95 crore as on March 31st 2007 on government of India loans and further no interest would be levied beyond the cut off date of March 31st 2007 till the date of approval.

4. To allow reduction of existing equity capital of INR 9.50 crore with a corresponding reduction in accumulated losses.

5. Ministry of railways will initially provide plan equity of INR 6.83 crore and plan loan of INR 6.83 crore for capital investment.

6. Ministry of railways will engage the existing employees or to provide non plan loan of INR 10.00 crore for meeting expenses towards VRS of 200 employees.

7. To convert plan loan of INR 6.83 crore towards capital expenditure into Equity and subsequent reduction of equity of INR 6.83 crore with corresponding reduction in accumulated losses.

8. Ministry of railways to assist the BWEL to raise working capital of INR 5 crore.

9. Ministry of railways to allow moratorium of repayment of loan and interest holiday for 5 years.

10. After takeover the Ministry of railways will be empowered to appoint chairman, MD and fill other board level posts.

11. Exemption from the rule of immediate absorption for Group “A” and Group “B” officers and technical Group “C” employees for filling up of vacant posts in BWEL on deputation basis for a period of 5 years after take over by Ministry of railways will be permitted.

Rebar prices increase by 3.9% in last 10 days in Chennai

Chennai
TMT
Fe 415

Price in INR per tonne
Inclusive of ED and VAT
Delivery - FOT

(Sourced from www.steelprices-india.com)

Mr TR Baalu reviews performance of JNPT

Mr Thiru TR Baalu union minister for shipping, road transport & highways has reviewed the performance of Jawaharlal Nehru Port Trust.

In 2007-08 fiscal, JNPT handled traffic of 4.06 million TEUs, registering 23% YoY increase over the previous year. This is also 13% more than the target set by the ministry of shipping.

A number of capacity augmentation projects are in the offing including 330M extension to berth north side of the Port at an estimated cost of INR 600 crore for which global bids have already been invited. The procedural work to launch the much awaited fourth container terminal and marine chemical terminal, at an estimated cost of INR 4100 crore is already on. This is likely to add the capacity of 30 million tonnes for container & 8.80 million tonnes for liquid.

Scrap and pencil ingot prices surge in Mandi in last 7 days

Mandi Govindgarh

Price in INR per tonne
Inclusive of ED and VAT
Delivery - FOT

(Sourced from www.steelprices-india.com)

BHEL bags INR 506 crore contract from ONGC

It is reported that Bharat Heavy Electricals Limited has secured a contract worth INR 506 crore from Oil & Natural Gas Corporation for refurbishment and up gradation of 12 onshore drilling rigs as well as supply of new rig equipment. These rigs were procured by ONGC in the seventies and eighties. Of these 12 rigs, 9 were supplied by BHEL while the rest were supplied by American companies.

The scope of work under this contract involves non destructive testing, repair and replacement of structural members of mast and substructure, overhauling of rotating and hoisting equipment, revamping electrical systems and site erection and commissioning of these equipment.
The mechanical works for the above contract will be done by BHEL's Hyderabad plant, while the electrical jobs will be undertaken by the company's Bhopal plant.

India to invest INR 800 crore in 3 national waterways

Projects Today reported that Indian government plans an investment of INR 800 crore on public private partnership basis to develop 3 national waterways on Ganga and Brahmaputra rivers and on the west coast.

1. On the Ganga Bhagirathi Hooghly Rivers from Allahabad to Haldia over a distance of 1,620 kilometers.
1. On the Brahmaputra from Dubri to Sadiya over a stretch of 891 kilometers.
3. To connect Kottapuram Kollam sector on the west coast with the Champkara and Udyogmandal canals over a 205 kilometers distance.

The three waterways are expected to be fully functional by March 2010 and will be used for export of fly ash to Bangladesh and transport of coal, gypsum, clinker and cement within the country.

To kick off the development, Inland Waterways Authority of India has formed JVs with SKS Logistics and Vivada Inland Waterways. It has signed 2 JVs with SKS Logistics. One for construction of 6 inland barrages of 2,000 DWT each between Kolkata and Pandu and the other for construction of eight inland barrages of 2000 DWT between Kolkata and Mongla in Bangladesh.

IWAI will be holding a minority stake of 30% and the balance 70% being held by the JV partner. Under the second JV, an investment of INR 44 crore is being made and the shareholding pattern is the same as in the first. The third JV is with Vivada Inland Waterways for construction of two inland barrages of 1,500 DWT each between Kolkata and Dubri.

IWAI has also signed a MoU with ICM for setting up and operation of three floating jetties in West Bengal. Besides, IWAI is developing a project with NTPC on PPP basis for transportation of 1 million tonnes per annum of imported coal from Haldia port to Farakka for use by Farakka power plant.

HCCL bags LoI from Lanco for Teesta project

BL reported that Hindustan Construction Company Limited has received a letter of intent from Lanco Infratech Limited for execution of all civil works of power house, surge shafts, pressure shafts, switchyard and tail race tunnels near Subin Khore for the Teesta hydroelectric project stage VI in Sikkim.

The value of the contract is INR 303.03 crore.

Lanco Group to foray into wind energy business

BL reported that Lanco Group has firmed up its plans to foray into wind energy with an initial investment of nearly INR 500 crore. It is planning to set up a wind turbine manufacturing unit in Puducherry and has also set its eyes to establish wind farms in India, the US and Europe.

Mr L Madhusudhana Rao chairman of Lanco Group said that the technology aspects would be worked out in technical collaboration from German companies. The group is targeting a commercial launch of wind energy by September 2009. He added that "Our target is to establish a total of 1,000 MW installed capacity.

The group is also exploring options in solar and nuclear energy fields. It has a presence in the hydro power sector, in which it is implementing 5 projects with capacity of 742 MW, two of them have been registered as clean development mechanism projects with the Geneva based United Nations Framework Convention on Climate Change.

These two projects will generate an additional 35,000 certified emission reductions an annum, taking the total Group CER tally to 110,000. The two projects namely 5 MW Baner III and 5 MW Iku II on the Beas River are the first hydro projects of Lanco to be registered as CDM projects and are expected to be commissioned this year.

It has a vision of establishing 15,000 MW of operating assets in power, constructing 100 million square feet of real estate, emerging among the top 5 companies in infrastructure and top 10 among construction companies.

Essar Power to set up 1200 MW power plant in Vadinar

BS reported that Essar Power is setting up a 1,200 MW co generation power plant at an investment of INR 4,800 crore at Vadinar in Gujarat. It is planning to expand the refining capacity of the refinery to 34 million tonnes per annum from the current 10.5 million tonnes per annum.

Mr Arun K Srivastava MD of Essar Power said that "The order for equipments has already been placed and the work has started. The new power plant will have both coal-based boiler and gas turbine for power generation. Coal for the plant will be imported, which will also cater to the needs of the company's other upcoming project in Gujarat."

Essar Power signed a power purchase agreement with Gujarat Urja Vikas Nigam and is in the process of setting up a 1,200 MW coal based power plant close to Vadinar at Salaya. The Salaya plant is expected to be commissioned by 2012. The Vadinar plant will be completed in two phases. In the first phase, a 330 MW plant will be commissioned by September 2009. While in the second phase, a 900 MW plant will be commissioned by December 2010.

ArcelorMittal increase HR prices for Europe to EUR 770 per tonne

ArcelorMittal announced that it has adjusted its prices for flat carbon products in Europe for new bookings with delivery scheduled for September 2008. The new base price level for Hot Rolled Coil will be EUR 770 per tonne. Cold rolled and coated flat product prices will be adjusted in price accordingly.

Mr Olli-Matti Saksi VP Sales and Marketing of ArcelorMittal Flat Carbon Europe said: "This further adjustment is a direct result of a robust demand throughout most of Europe as well as on the global market. We expect that the tight global supply situation and ongoing cost increases will result in continued upward pressure on steel prices in forthcoming quarters.”

The release added that “ArcelorMittal is aiming to finalize prices for contracts to be delivered in October by mid July.”

US Steel has no immediate acquisitions plans - CEO

Platts reported that US Steel has no near term plans to acquire either a scrap processor or a majority stake in metallurgical coal, despite continued concern over raw material supply.

Mr John Surma chairman & CEO of the US Steel while speaking at the Steel Success Strategies to a question about whether US Steel might follow the model of Steel Dynamics and OmniSource and acquire a scrap processor said that “It is certainly always possible we might choose to become more invested in the scrap sector and we have obviously been studying what our two worthy competitors did. I would not rule that out but at least for the moment we plan no move in that direction."

Mr Surma said that US Steel currently is too invested in several other projects in North America, such as the first ever carbon alloy synthetics facility near its Fairfield works in Alabama; its joint venture with Sun Coke building a new coke battery co generation facility at Granite City in Illinois and an expansion of its Keystack Mine in Minnesota to produce more iron ore pellets.

Mr Surma noted that “If steel production growth forecasts are correct at 6% per year over the next few years that would require another 110 million tons of iron ore pellets which is five times our mine's output in one year.”

He said that “The implied 90 million tons increase in steel production in one year would also require 36 million tons more coke and 50 million tons more metallurgical coal and the largest mine produces just under 17 million tons per year. That means for 2009 we would need three more of the largest [mines] up and running in one year, after what we need to add this year and next year.”

Hyundai Steel to raise HR prices by 10.9%

Yonhap reported that South Korea second largest steelmaker Hyundai Steel Co is planning to raise the price of hot rolled steel coils by 10.9% to reflect the increased cost of raw materials, its fifth hike this year.

Hyundai Steel said that the price of hot rolled steel coils will rise to KRW 1,020,000 (USD 984) a tonne from KRW 920,000 starting on July 1st 2008.

Hyundai Steel cited rising prices of scrap iron, pig iron and Russian and Chinese slabs as the reason for the price hike. Hyundai Steel said the price of scrap iron used in its furnaces has risen by USD 60 a tonne at the end of this month from early May and that of pig iron has risen by USD 220. The prices of Russian and Chinese slabs also have reached up to USD 1,150 a tonne from USD 1,000 during the same period.

Monthly steel fact sheet for US import in May 2008

The preliminary data released show that overall steel imports in May 2008 decreased by 17.71% MoM from April 2008.

The change in May’s total amount of steel imports was due to a general decrease in most goods, such as reinforcing bars down by 68%, wire rods down by 55% and blooms, billets and slabs down by 40%. Galvanized hot dipped sheets and strip increased significantly with an 89% growth.

Stainless imports decreased only slightly down by 0.53% resulting from mixed increases and decreases in individual stainless products. May 2008 imports of steel mill products were down 25% as compared to May 2007.

Preliminary Census Steel Import Statistic Comparisons

In tons

(Sourced from SIMA)

Taubensee raises wire prices by USD 70 per ton

Purchasing.com reported that with carbon steel wire rod prices from domestic producers up by another 6% in June, wire product prices are being increased by USD 70 per ton next Monday by Taubensee Steel & Wire.

It said that wire rod prices are up 70% so far in 2008 or USD 414 per ton to USD 1007 in June so Taubensee Steel, wire maker said that its processed product prices are up by a total USD 560 per ton since January.

Mr Vernon E Abel commercial vice president of Taubensee Steel in letters to customer said that the wire industry is experiencing raw material shortages as imports still are not available at a time when several domestic mills have been reducing their output because of production problems. The supply of wire rod has become very tight enabling the domestic rod industry to continue pushing through raw material increases on almost a monthly basis.”

CSN to build USD 6 billion plant - Report

Estado de S Paulo cited Mr Eneas Garcia Diniz executive director of production of Cia Siderurgica Nacional SA as saying that Cia. Siderurgica Nacional SA plans to spend USD 6 billion building and expanding a steel plant that would produce 3.5 million tonnes annually within six years.

Estado said that the Rio de Janeiro based company plans to start construction in the first half of 2009, with operations starting 30 months later. The plant would be located near the city of Recife in northeastern Brazil.

The newspaper said that the production target would equal 10% of the current national steel market.

ArcelorMittal Galati orders new drives for plate mill

The Siemens Industry Solutions Division has received an order to supply a new main drive for the finishing stand of ArcelorMittal Galati's plate mill at Galati in Romania. The project is scheduled for completion at the end of 2010.

The modernization of the finishing stand is intended to increase the productivity and availability of the rolling mill and lower the maintenance costs

For modernization of the finishing stand, Siemens is supplying a twin main drive with cylindrical-rotor synchronous motors fed by cycloconverters. The twin drive has a total rated output of 13 megawatts at 44 revolutions per minute. Simatic TDC is used for closed-loop control tasks. Power equipment such as 110 kV switchgear and converter transformers round off the scope of supply. Siemens is also responsible for installing and commissioning all the systems and components.

Installation of the new main drive represents a further step in the modernization of the Galati plate mill. In October 2007 Siemens VAI won an order to equip the finishing stand with hydraulic cylinders and a hydraulic automatic gauge control package as well as to implement a new process automation system for the entire plate mill area. The solution is based on the Siroll PM platform specially designed for plate mills. The core technological components of the mechanical equipment will be manufactured at the Siemens VAI location in Montbrison, France. This project, which also includes installation supervision and commissioning as well as customer training, is due for completion by the end of 2009.

Tung Ho Steel announces H beam price hike

It is reported that Taiwan’s Tung Ho Steel has raised its H beam prices again for July 2008, although both Taiwan domestic and import scrap prices dropped by about TWD 1,300 to TWD 1,400 per tonne. Tung Ho Steel is adding its H beam price by TWD 1,000 per tonne due to a strong global demand.

The report added that another major H beam producer, Dragon Steel said they are going to release its July price soon and basically their price will be also increased.

It said that H beam prices are expected to past TWD 40,000 per tonne if demand remains strong.

(Sourced from YIEH.com)

Perwaja to raise USD 54 million from IPO - Business Times

The Business Times reported that a Malaysian steelmaker controlled by Kinsteel Bhd Perwaja Steel Sdn is planning to raise MYR 175 million (USD 54 million) from an initial public offering in September.

The newspaper citing Mr Pheng Yin Huah MD of Kinsteel as saying that Kinsteel's minority shareholders will get to buy Perwaja's shares at a 23% discount from the unit's IPO price of MYR 2.90 apiece.

IMAREX BDI futures contract off to strong start

It is reported that the International Maritime Exchange has concluded over 200 contracts of the new BDI Index Future in the first week of trading.

The IMAREX BDI Index Futures contract is cleared by NOS Clearing the specialist freight derivatives clearer and is a simple derivatives contract which gives investors the ability to take forward positions on the value of the Baltic Dry Index in a multiple of US Dollars per point of the index. Each contract is settled on the average of all BDI values in a month. This means that if the BDI is 10,000, 1 lot equals USD 10,000. If the index rises by 1000 points, the buyer gains USD 1,000, and seller loses USD 1,000.

Mr Herman Michelet CEO of Imarex said that "The BDI Futures contract was launched as an electronically traded and NOS cleared futures contract on the Baltic Dry Index, last week and we are pleased to announce that 237 contracts worth over USD 2 million have been traded in the first few days.”

Mr Michelet said that “Being much smaller in size than the FFA contract its industrial bigger brother, the BDI Futures contract is attractive to a far broader audience of investors. Barriers to entry are small as the smallest tradable contract has a current notional value of just USD 9,000.”

Mr Michelet said that "We have aimed the BDI Futures contract at those with a view on the direction of the market stock portfolio managers wishing to hedge the value of shipping equities and fund investors who want to trade the entire dry bulk sector in one simple contract it seems to be working very well so far.”

MOX brings new plants on stream in Malaysia

It is reported that Malaysia’s industrial gas company MOX, now a member of global gases and engineering company The Linde Group, has brought on stream two new plants with an investment of approximately MYR 100 million in the past six months.

According to its newly appointed country head for Malaysia, Mr Wong Siew Yap, the first of the two plants, in Shah Alam was commissioned at the end of 2007 and the second plant in Penang was commissioned just last month, with the new facilities adding a further 400 tonnes per day capacity for MOX.

Mr Wong added that in addition, as part of its aggressive growth and investment strategy in Malaysia, MOX will further invest around MYR 250 million to expand production capacity over the next two years. Mr Wong said that “This will be one of the largest investment tranche seen in the 48-year history of MOX. Included are investments that will meet the increased needs of long term electronics and glass customers in the east coast and the Klang Valley. The plants are scheduled to be completed by early 2009.”

He added that “Another significant tranche of capacity for the production of oxygen, nitrogen and argon will also be added in the southern region in 2010, making it the largest plant for the area. With almost 600 tonnes per day of output, this plant will meet demands in the steel and chemical industries boosting supply and service reliability, while at the same time complementing The Linde Group’s business operations in Singapore.”

AK Steel to replace Countrywide on S&P 500 index

Standard & Poor's said that AK Steel Holding Corp will replace Countrywide Financial Corp on the S&P 500 index after the close of trading on June 30th 2008.

Standard & Poor's in a statement said that countrywide is being acquired by S&P 100 and S&P 500 constituent Bank of America in a deal expected to close on or about that date, pending final approvals.

It added that AK Steel, which produces carbon flat rolled steel for the automotive, appliance, construction and manufacturing markets, will be added to the S&P 500 GICS.

Hyundai Mipo gets KRW 302.3 billion order for 7 ships

It is reported that Hyundai Mipo Dockyard Co have received a KRW 302.3 billion (USD 292 million) order from the Middle East for seven bulk carriers to meet growing demand for moving commodities.

South Korea based Hyundai Mipo in a regulatory filing without naming the buyer said that the 36,000 DWT vessels will be delivered by the end of May 2012.

Shipyards in South Korea, the world's largest shipbuilding nation is adding new docks and building yards overseas as they work on backlogs extending into 2012. Hyundai Mipo plans to start building ships at its ship repair venture in Vietnam from August.

Hyundai Mipo has been repairing ships under a partnership with Vietnam Shipbuilding Industry Group since April 1999. The venture has two docks together 640 meters long.

Broner announces improved production schedule solutions

World’s leading provider of supply chain planning, scheduling and manufacturing execution systems, specifically for the Metals Industry Broner Metals Solutions announced that it has developed new enhancements for its existing Production Scheduler solution.

The release said that “The new enhancements were developed in order to respond to opportunities identified in the process of implementing Production Scheduler at one of the Broner’s customer sites and they will further improve scheduling capabilities of the module, with some of the new functions being
1. Feeder groups’, which enables the use of non-first choice material to fill gaps in the schedule
2. Minimum batching’, which allows the specification of a rule which will try to complete a minimum batch of material limited by user-defined characteristics once started, and highlight a sharing violation if that’s not possible
3. Violation limits’, which enables the definition of violations
4. Conserve and Consume’ functionality, which allows conservation of “rare” materials across round, preventing immediate use of a first-choice material
5. Improved scheduling information around specific areas of production.”

Broner said that all of these functions will contribute to better schedule adherence, reduced production costs, improved productivity and better quality of end product. It said that new improvements will later be incorporated into all future versions of Production Scheduler ensuring that all customers can benefit from improved accuracy and consistency of schedules.

Broner Metals Solutions specializes entirely in delivering value to the Steel and Aluminum industries and provides Supply Chain Planning, Scheduling and Manufacturing Execution Systems and Consultancy, which improve shareholder value, through reduced inventory; shorter manufacturing lead times; increased throughput; improved delivery performance and better customer service.

Oil price could hit USD 170 in coming months - OPEC

Doha Times quoted Mr Chakib Khelil president of OPEC and also Algerian energy minister as saying that oil prices could rise to USD 150 to USD 170 dollars a barrel during the northern hemisphere summer. He added that "I predict probably prices of USD 150 to USD 170 dollars this summer. The market will probably fall a bit towards the end of the year."

Mr Khelil said that he did not expect prices to hit $200 a barrel, barring a major market crisis such as a halt in production in Iran. He added that "In the short term, everything depends on the European Central Bank and a decision it could take to raise euro zone interest rates. At that time, I think the price of oil will increase."

Sohar Aluminum starts hot metal production

Gulf News reported that the first hot metal was successfully produced at the Sohar Aluminum smelter, a mega project in Sohar in Oman, the other day, on schedule and after 3 years of meticulous construction and planning.

Sohar Aluminum’s shareholders are Oman Oil Company, Abu Dhabi Water & Electricity Authority and Alcan. The smelter is targeted to start its first production of hot metal in 2008.

Using Alcan smelter technology, USD 2.4 billion Greenfield project involves the construction of a single 360 pot AP35G aluminum smelter pot line with a capacity of approximately 350,000 tonnes per year.

ABB wins deal to supply power systems for Ras Laffan plant

The Penninsula reported that ABB has won a USD 233 million contract from Hyundai Engineering & Construction of Korea to supply power systems and grid connections for a natural gas and steam turbine power plant, to be built in Qatar.

The USD 3.7 billion Ras Laffan C plant will be the largest power generation and water desalination project in Qatar, with capacity to generate 2,730 MW of power and produce more than 286,000 cubic meters of potable water per day.

A consortium comprising Suez Energy International, Mitsui, Qatar Electricity Water Corporation and Qatar Petroleum will develop the plant. It is expected to begin operations in 2010 and be fully operational by 2011 and will sell water and electricity to the local utility, Kahramaa.

ABB will supply the plant’s turnkey electrical systems, comprising substations, rated at 400, 220 and 132 kilovolts, the 800 MVA transformers, generator bus ducts and breakers, medium and low voltage switchgear, the emergency power supply and the plant’s cable systems. ABB will also provide engineering services, construction supervision, commissioning and training.

Mr Peter Leupp head of ABB’s power systems division said that "ABB’s knowledge and experience with complex power systems throughout the world gives us the expertise to tackle large scale projects like this. We can deliver reliable, integrated solutions on time and on budget, supporting the customer at every stage."

Ras Laffan C is ABB’s third large power plant project in Qatar, following Ras Abu Fontas B, Qatalum and a variety of substation projects. Long experience and an unmatched portfolio of products, systems and services enable ABB to meet the customer’s needs in terms of quality, scheduling and energy efficiency.

Iran allocates USD 325 million to Isfahan Shiraz railroad

Mehr News Agency reported that over USD 325 million has been allocated to complete the Isfahan Shiraz railroad.

Mr Mohammad Rahmati Iran’s minister of roads & transportation said that "We hope that with the allocation of this amount this project will be ready for utilization next year starting March 21st 2009."

The ministry of roads & transportation is to fund the project out of the energy saving reserved budget.

No power shortages in Turkey this summer - Report

Mr Sefer Bütün GM of the Electricity Production Co, which generates more than half of Turkey's electricity, said that "We are on alert. We have been working tirelessly for three to four months to make sure that there are no power outages in July and August 2008. We knew this day would come so we took necessary measures."

According to data provided by the ministry of energy & natural resources, average monthly electricity consumption comes out to 14 to 15 billion kilowatt hours and increases to 19 billion kWh per month over the summer.

Mr Bütün said that the main measure to be taken to address electricity shortages is increasing the usable capacity of coal power plants from 33% to 76% by replacing old parts. Once this is achieved, dams, currently seeing low water levels, can be reserved as secondary sources to meet rapid increases in demand for electricity over the summer. Teams of technicians work 24/7 to make sure that coal plants can operate non stop.

He said that "Unfortunately, the amount of water coming to the dams was less than that of last year despite more snow this year. The snow melted and seeped underground. We were expecting 3.5 billion cubic meters of water in May; however, we only received 1.7 billion. Despite water scarcity, we have the capacity and capability to generate electricity at our dams. We should keep this option ready at all times by utilizing coal plants more. When required, the dams will be used."

He further added that under an electricity market law, investments required to meet the electricity need will be taken care of by the private sector. However, the law also allows the state to take necessary measures when the private sector proves to be inadequate in addressing the problem. Private sector investments are favored in principle.

Turkey to build second nuclear plant in Sinop

Today’s Zaman reported that Mr Hilmi Güler Turkey's energy & natural resources minister has announced that Turkey is planning to construct its second nuclear power plant in the Black Sea city of Sinop.

Mr Güler added that "The dimensions of the second nuclear power plant have not yet been determined, but it will not be smaller than the one to be constructed in Mersin's town of Akkuyu."

He said that the second nuclear plant would be located in Sinop's İnceburun district. Six firms and consortia have received specifications for the tender for the 4,000 MW nuclear power plant in Akkuyu. These firms are

1. Atomic Energy of Canada Limited – Canada
2. Itochu Corporation – Japan
3. Vinci Construction Grand Projects – France
4. Suez Tractebel – France
5. Atostroyexport – Russia
6. KEPCO – South Korea

Oman to reduce dependence on oil revenues

MEED reported that diversification of sources of income will continue to be one of the main goals of Oman’s economic policies in a bid to reduce dependence on oil revenues.

Mr Maqbool bin Ali Sultan Omani minister of commerce & industry said that the government is making concerted efforts to achieve this objective. He added that "The government aims at reducing the contribution of hydrocarbon sector to GDP to just 9% in 2020."

Mr Sultan stressed that privatization is one of the main pillars of Oman’s economic development program. He added that "At the beginning, the private sector did not possess the resources or expertise to play an active role in the development process, therefore the public sector had to undertake the assignment to fill the gap. This justifies the big role played by the public sector in the economy."

He pointed out that foreign investors enjoyed scores of incentives including 70% freehold and up to 100% ownership in special projects that directly contributed to economic development.

Update on Afsin Elbistan power station bids

Today’s Zaman reported that the names of the companies that have presented their offers for the construction of two new plants at the Afşin Elbistan coal burning power station were announced at the Turkish Electricity Distribution Company’s conference hall.

As per report, Park Teknik AŞ and Akfen Construction Akfen Energy JV submitted offers for the third power plant in the area, while for the fourth plant the JV made another offer.

The tender had been postponed three times previously and was finally announced on July 31st 2007. Giant energy firms from Germany, Russia, Japan and the United Kingdom had applied to compete in the tender, but none of them made offers.

In accordance with bid specifications, two separate dams will be constructed for the power station. 60% of the first dam’s construction, called Adatepe, will be undertaken by the public sector and the rest will be completed by the private sector.

The second dam, however, will be built entirely by the private sector. They will be purchased under the auspices of the Electricity Production Corporation.

The state will guarantee that the electricity produced by the power plant, which will have an installed capacity of at least 1,200 megawatts, will be purchased for 15 years.

The Afşin Elbistan region possesses around 40% of Turkey’s 8.3 billion tonnes of lignite reserves. It is planned that around 15,000 people will be employed during the power plant’s construction. Approximately 8,500 are expected to be employed at the plant after it goes into operation.

Energy authorities plan to meet 18% of Turkey’s annual need for electricity, which amounts to 30 billion kilowatt hours, with the Afşin Elbistan station after construction is completed on these projects.

EPDK approves increase in electricity prices

Turkey's Energy Market Regulatory Agency has approved a request from electricity distribution companies to increase electricity prices.

Following the EPDK's decision, the price of electricity used in residences will be increased by 21%, while the cost of electricity for industrial use will rise by 22% as of July 1st 2008. Previously, 20 electricity distribution companies from the Turkish Electricity Distribution Corporation had demanded that a new electricity tariff be put in force.

This increase was largely accepted as a necessary step for the transition to a new pricing mechanism for electricity in which energy producers will be able to update their prices once every three months to cover their costs. The new system is set to start on July 1st 2008.

It has long been argued by electricity production companies that soaring prices of oil and natural gas, both of which are widely used in electricity production, have increased the costs of production, leading to sharp decreases in profits.

ArcelorMittal, Hunan Valin Group and Hunan Valin Steel launch new auto steel JV

ArcelorMittal, Hunan Valin Group and Hunan Valin Steel Co announced a new development in their cooperation with the launch of Valin ArcelorMittal Automotive Steel, an industrial and commercial automotive joint venture that will have an annual production capacity of 1.2 million tonnes of flat carbon steel, mainly for automotive applications. Products will include cold rolled steel, galvannealed steel and pure zinc galvanized steel. The setup of this new joint venture is still subject to regulatory approval.

Hunan Valin Steel Co., Ltd will own 34% in the new joint venture, and ArcelorMittal and Hunan Valin Group will each have a 33% equity share.

The new activity will be located in Hunan Province next to Hunan Valin Steel Co’s subsidiary, Lianyuan Steel, which will supply hot rolled coil to the new joint venture.

Mr LN Mittal chairman & CEO of ArcelorMittal said “We have been working closely together with Hunan Valin Steel Co for three years now and the cooperation is going very well. We are making a lot of progress and the signing of these joint venture contracts is only further proof of this. This automotive joint venture is part of our global and China strategy, aiming to better serve both our global as well as domestic automotive clients by offering high value added products with the support of ArcelorMittal technology.”

Mr. Li Xiaowei Chairman of Hunan Valin Group said that “Hunan Valin’s long term development and future really depends on the technological platform jointly set up with ArcelorMittal. Valin is structurally transforming its product portfolio and targeting high added-value products, allowing us to differentiate ourselves from our competitors and to accelerate the transformation of Hunan province.”

Valin Group is a large sized enterprise set up by three steelmakers in Hunan province in 1997 Xiangtan Iron & Steel, Lianyuan Iron & Steel, and Hengyang Steel Tube, currently with 57,000 employees including 12,000 technical staff. Valin Group now has over 10 subsidiaries under direct or indirect control, including Xiangtan Iron & Steel, Lianyuan Iron & Steel, Hengyang Steel Tube, Nanfang Building Materials etc, with a stable operating and governance system based upon sound capitals and assets. In 2007, Valin Group witnessed sales revenue CNY 50.3 billion up by 38% YoY.

Hunan Valin Steel Co Ltd is a public company listed in China’s Shenzhen Stock Exchange in 1999. Valin Steel mainly produces cold and hot rolled super thin coils, heavy plates, seamless pipes with a wide range of diameters, fine wire rods etc. In 2007, Valin Steel produced 11.12 million tonnes of steel products, with total assets, turnover and profit amounting to CNY 48.4 billion, CNY 43.8 billion and CNY 234,000 respectively. It is now China’s 10th largest steel company.

Chinese HDG export market remain stable

It is reported that Chinese domestic hot dipped galvanized steel sheet/coil price is largely unchanged and this is also the case with export market.

Mysteel forecasts that on Shanghai market, price for 1.0mm HDG by Anshan steel remain at CNY 7600 per tonne, 0.5mm HDG by private producer at CNY 7800 per tonne flat with last week. As forecast, there would be no room for further increase if it could not exceed CNY 7600 per tonne.

Export offers are quite different due to different production cost, quality. Quotation by a mill in Tangshan is only at USD 1120 per tonne FOB for 1.0mm HDG Z120 and that by a tier two steel maker in Hebei province is at USD 1135 per tonne to USD 1140 per tonne FOB.

(Sourced from MySteel.net)

US to take more time on new Chinese exporters for CTL plates

US Ministry of Commerce announced that it decided to suspend preliminary determination on review of new Chinese exporters of cut to length carbon steel plate for 300 days and would make preliminary determination before November 6th 2008 owing to complicated review method and exporter inspection.

US initiated the anti dumping investigation into CTL carbon steel plate from China on December 3rd 1996 and made an affirmative final determination on June 11th 1997.

US launched review of new Chinese exporters on January 16th 2008.

Angang acquired 50% stake in Tiantie Steel Plate Group

Xinhua Financial Network reported that Angang Steel Company Ltd, one of China's top steelmakers has acquired a 50% stake in Tianjin's Tiantie Steel Plate Group Co.

But the company did not disclose financial terms of the deal.

Hangang to complete 1st phase of new project July end

A source with Hansteel Group told Modern Logistics News lately that first phase construction of Hangang's new area project is expected to be completed by the end of July.

He said six main parts of the project, including blast furnace, coke oven, stock yard, sintering machine, steel making plant and 2250 hot rolling mill, are progressing smoothly.

The project orients its products at high value added items that are very short in China, such as automobile panel. Once completed, it will soon enter into test and production and yield 4.6 million tonnes of quality steel products a year. By the end of 2010 when the project will be fully finished, Hansteel Group will become a 10 million tonnes specialty plate production base.

The project is financed by Hangang Hanbao Company a JV invested by Baosteel Group and Hansteel Group each controlling 50%. The completion of the first phase indicates an initial success of the cooperation of these two major steel makers.

(Sourced from MySteel.net)

Update on construction steel price sin China

In Shanghai
Large scale rebar that is exempted from inspection is offered at CNY 5190 per tonne to CNY 5200 per tonne down by CNY 10 per tonne
Other large scale rebar at CNY 5030 per tonne to CNY 5040 per tonne down by CNY 10 per tonne
Third grade rebar at CNY 5440 per tonne to CNY 5470 per tonne down by CNY 10 per tonne
Common carbon wire rod at CNY 5520 per tonne down by CNY 20 per tonne
High speed wire rod at CNY 5840 per tonne down by CNY 20 per tonne.

In Beijing
High speed wire rod is sold at CNY 5900 per tonne up by CNY 50 per tonne
Second grade large scale rebar at CNY 5390 per tonne to CNY 54000 per tonne up by CNY 10 per tonne to CNY 20 per tonne
Third grade large scale rebar at CNY 5600 per tonne up by CNY 10 per tonne to CNY 20 per tonne.

In Tianjin
Prices climb by CNY 50 per tonne. High speed wire rod is sold at CNY 5810 per tonne
Second grade large scale rebar at CNY 5450 per tonne up by CNY 50 per tonne
Third grade large scale rebar at CNY 5650 per tonne up by CNY 50 CNY per tonne.

In Guangzhou
8mm common carbon wire rod made by Shaoguan Steel is priced at CNY 5500 per tonne
8mm high speed wire rod at CNY 5750 per tonne
Large scale rebar at CNY 5480 per tonne
Third grade rebar provided by Ma'anshan Steel at CNY 5650 per tonne.

(Sourced from MySteel.net)

Update on HDG and PPGI prices in China

In Boxing
0.4mm galvanized sheet made by Hengtong is quoted at CNY 7560 per tonne
0.5mm galvanized sheet at CNY 7400 per tonne to CNY 7450 per tonne.

In Shanghai
Price for 1.0mm galvanized sheet made by Anben Group prevails at CNY 7600 per tonne
0.5mm galvanized sheet made by private makers at CNY 7800 per tonne
0.5mm color coated sheet made by Baosteel at CNY 9250 per tonne.

In Beijing
1.0mm galvanized sheet made by Anben Group is priced at CNY 7500 per tonne
0.5mm galvanized sheet made by private makers at CNY 7650 per tonne
0.476 color coated sheet made by private makers at CNY 8450 per tonne.

(Sourced from MySteel.net)

Panzhihua GCr15 bearing steel production gets approved

It is reported that recently, the GCr15 bearing steel production process of Pangang passed the technology identification by Sichuan Science and Technology Office.

The experts considered that all the performances of GCr15 bearing steel produced by converter reached the requirements of GB/T18254-2002, its contact fatigue life L10 reached 0.9641×107, the average life expectancy L50 reached 3.6954×107, reached the domestic leading level.

Chinese industrial profits in 5 months up by 20.9% YoY

According to National Bureau of Statistics, China's industrial firms reported CNY 1.09 trillion in profits in the first five months of this year up by 20.9% YoY. The growth rate was 4.4 percentage points higher than figure for January and February, but 21.2 percentage points lower than the first five months of last year.

The National Bureau of Statistics covered the profits of major industrial enterprises defined as those with more than CNY 5 million in revenues from their main business annually. The NBS said the profits of state owned industrial companies only rose 1.5% to CNY 424.6 billion largely affected by the weak energy and oil refining sectors.

Power utilities profits went down by 74%YoY. Oil refineries and coking plants moved to a loss of CNY 44.3 billion from a profit of CNY 35.2 billion at the same time last year. But other sectors, including oil, gas, coal and construction material production, saw profits surge more than 50%. Profits of steel companies rose 25.6% and those of chemical plants rose 26%.

The National Bureau of Statistics also reported profits for privately owned industrial firms were up 51% and foreign-funded companies up 22.4%.

China Railway to invest USD 378 million in subsidiaries project

China Securities Journal reported that state owned China Railway Construction Corp plans to invest CNY 2.6 billion in four projects.

According to the Journal, CRCC with CNY 65 million and China Civil Engineering Construction Corp with CNY 22.5 million will be poured into CCECC-Beyond International Investment and Development Co Ltd bringing its registered capital to CNY 200 million.

Investment from CRCC directly and indirectly in CCECC-Beyond will reach CNY 100 million accounting for 50% of the company's registered capital. At the same time, CRCC will invest CNY 150 million more in another wholly owned subsidiary China Railway Track System Group Company Limited for a high manganese steel fork project.

CRCC also decided to acquire a 60% stake of real estate enterprise China Railway Real Estate and turn it into its wholly owned subsidiary. The acquisition will increase the real estate company's registered capital from CNY 500 million to CNY 2 billion.

Lastly, an investment of CNY 840.8 million would be earmarked for a crucial project in Kunming, the provincial capital of south China's Yunnan Province.

Dongfang Electric inks CNY 8.2 billion deal with China Guodian

China Knowledge reported that Dongfang Electric Group Co, parent of quake hit Dongfang Electric Company Ltd signed a CNY 8.2 billion contract for electric power generating equipments with China Guodian Corporation.

Under the deal, Dmngfang Electric Group will supply equipments of coal based power generators, hydropower generators and aero generators for four power projects of China Guodian Corp.

This contract is viewed as significant for post-quake reconstruction of Dongfang Electric.

China Guodian Corporation is one of the five largest nationwide power generation groups. With a registered capital of CNY 12 billion, the company is engaged in development, investment, construction, operation and management of power generation, besides production and sales of electricity and heat.

USW hail Esmark sale to SeverStal as a victory for workers

The United Steelworkers welcomed the news that Esmark has entered into a definitive merger agreement with OAO Severstal and that Esmark's board of directors now recommends that shareholders tender their shares to Severstal. The union called the outcome a victory for longtime Wheeling Pittsburgh Steel employees, whose jobs will be more secure as a result.

Mr Dave McCall director of USW District 1, who chairs the union's Wheeling Pittsburgh Steel negotiating committee, said that "From the beginning, our support for Severstal was based on the company's willingness to improve upon our current contract and its commitment to invest specific, substantial capital in our plants. The synergy of Severstal operating Sparrows Point, WCI and Esmark as one consolidated company creates a long-term, viable entity, which will obviously provide the most security for our members, their families and our retirees at all of the operations."

Mr Leo W Gerard president of USW International said that "Essar is a strong and admired company with a good business plan and committed management, but we did not reach an agreement with them in this instance. That said, we look forward hopefully to working with them as partners in the future as their North American business grows."

During the course of this dispute, Esmark management violated important provisions in its agreement with the union by entering into an agreement with Essar on April 30th 2008. Earlier this week, a third party arbitrator upheld the "Right to Bid" portion of union's contract and made clear that the April 30 Memorandum of Agreement between Esmark and Essar was to be set aside.

NLMK wins 2007 best Russian exporter of Ferrous Metals

Novolipetsk Steel announced that it has won the 2007 Best Russian Exporter contest in the category of Ferrous Metals Best Exporter in the Industry. The award ceremony was held on June 20th 2008 in Moscow.

According to the release, the contest was held by the Ministry of Industry and Trade of the Russian Federation as part of the State Support Program of the Russian Federation Export Development. The winners were named based on consolidated export figures reported by the companies.

In 2007 NLMK Group supplied its products to more than 80 countries across the world. Higher added value products supplies increased by 5% compared to 2006, and their share of the sales structure amounted to 21%. These changes are in line with NLMK Group’s long term strategy of targeting downstream product supplies. In particular, electrical steel sales volumes increased achieving 10% of the total volume in 2007. Strong demand in foreign markets fostered hot-rolled steel supplies, increasing their share to 19%. NLMK Group’s total export sales revenue amounted to USD 4,815 billion.

Severstal holds AGM of shareholders

Severstal announced that its annual general meeting of shareholders was held and in the course of the voting number of resolutions were adopted

1. To elect the Board of Directors of OAO Severstal composed of the following: Mr Alexey Mordashov, Mr Mikhail Noskov, Mr Anatoly Kruchinin, Mr Vadim Makhov, Mr Christopher Clark, Mr Ronald Freeman, Mr Peter Kraljic, Mr Martin Angle, Mr Rolf Stomberg and Mr Gregory Mason.

2. To approve the annual report and annual accounting statements, including profit and loss statement.

3. To distribute profit according to the fiscal year results. To pay dividends in the amount of RUB 4 per one ordinary registered share, according to 2007 results. Form of dividend payment: bank transfer of funds. Commencement of the dividend payment: the day following the date of drawing up the voting results report. Dividend payment procedure: the dividends shall be remitted to shareholders by means of bank transfer to their bank accounts. Not to distribute profit received in 2007 which is not allocated for dividend payment.

4. To pay dividends according to Q1 2008 results, in the amount of RUB 5 20 Kopecks per one ordinary registered share. Form of the dividend payment: bank transfer of funds. Commencement of the dividend payment: the day following the date of drawing up the voting results report. Dividend payment procedure dividends shall be remitted to shareholders by means of bank transfer to their bank accounts.

5. To elect an Audit Commission of OAO Severstal composed of the following: Mr Roman Antonov, Mr Timur Bayazitov and Mr Alexey Guryev.

6. To approve ZAO KPMG as OAO Severstal Auditor.

7. To approve the new version of the OAO Severstal Charter.

8. To approve the new version of the Statute of OAO Severstal’s Board of Directors.

9. To make amendments to the resolution on setting the amount of remuneration and its payment to the members of the OAO Severstal Board of Directors for acting as members of OAO Severstal’s Board of Directors, adopted by the Special General Meeting of Shareholders of OAO Severstal held on December 15th 2006.

AvtoVAZ and Renault to assemble new Lada models in 2010

RIA Novosti reported that Russia's largest car producer AvtoVAZ and the French car manufacturing giant Renault will begin assembling new Lada models in 2010.

Two models of vehicles on a Renault platform, able to accommodate five and seven people, will be produced under the Lada brand.

The Russian car manufacturer also plans to design a new low-cost car and an off-road.

AvtoVAZ, based in Togliatti in the Volga Region, and known internationally for its Lada brand, sold a record 663,500 cars in 2007, raising its net profit 57.3%YoY to RUB 3.95 billion. The company plans to roll out 1.5 million cars annually by 2015.

Turkmenistan to start natural gas deliveries to China in 2009

RIA Novosti cited Mr Gurbanguly Berdymukhamedov president of Turkmenistan as saying that Turkmenistan plans to start exporting natural gas to China in 2009.

He said the diversification of energy transportation routes to world markets was a priority for the country, whose natural gas reserves are estimated at 24.6 trillion cubic meters.

Construction of the Turkmenistan-China gas pipeline began in August 2007 in the special economic zone of Bagtyyarlyk, on the left bank of the Amudarya River, which is being developed by China Natural Petroleum Corporation.

Under a deal signed in April 2006, China is due to buy an annual 30 billion cubic meters of Turkmen natural gas over 30 years.

Russia and Venezuela to discuss trade

RIA Novosti reported that Mr Vladimir Putin PM of Russia and Mr Ramon Carrizales vice president of Venezuela will discuss bilateral economic relations in Moscow. The negotiations will focus on issues concerning the development of trade and economic relations.

The report added that in 2007, trade between Russia and Venezuela almost doubled to USD 1.13 billion against USD 517 million in 2006. Exports earned USD 1.12 billion and imports stood at USD 12.5 million.

According to the report the two countries have been prioritizing cooperation in energy and mining. Russian energy giant Gazprom, the country's largest independent oil producer LUKoil, Russian British joint oil venture TNK BP, aluminum giant RusAl and a number of other companies are developing their commercial interests on the Venezuelan market. The two countries are also developing a number of joint projects in rail and air transportation.

TNK BP Holding net profit for 2007 down by 11% YoY

RIA Novosti cited TNK-BP Holding as saying that its US GAAP net profit declined 11%YoY in 2007 to USD 5.7 billion.

According to the report, TNK BP Holding’s net revenues in the reporting period climbed by12% YoY to USD 24.9 billion while earnings before interest, taxes, depreciation and amortization fell 15%YoY to USD 8.7 billion.

The report further added that TNK BP Holding said its net profit adjusted for the sale of Udmurtneft assets climbed 37%YoY in 2007.

Qingdao POSCO to double CR stainless steel output

According to an official from Qingdao POSCO Stainless Steel Co Ltd, Qingdao POSCO Stainless Steel Co Ltd would increase CR stainless steel output from 180,000 tonne per year to 360,000 tonne per year by the end of 2010.

He added that the company has already signed the agreement with a supplier, who would provide a CR machine with an annual output of 180,000 tonnes. The new roller should be installed in the end of this year and it is expected to mainly produce 400 series CRC.

Meanwhile, he noted that Qingdao POSCO Stainless Steel is able to get enough HRC from POSCO’s mills in South Korea and Zhangjiagang POSCO Stainless Steel Co in China, so Qingdao POSCO Stainless Steel does not plan to add new HR machines.

It is reported that Qingdao POSCO Stainless Steel is purchasing HRCs from POSCO and Zhangjiagang POSCO Stainless Steel Co at present, in order to produce 300 series and 400 series stainless steel. POSCO holds 82.5% stocks in Zhangjiagang POSCO Stainless Steel Co, while holds 17.5% in Shagang.

Outokumpu to set up a INR 1000 crore CR mill in India

ET reported that finish stainless steel major Outokumpu plans to invest INR 1,000 crore for setting up a cold rolling mill in India with a capacity of 0.25 million tonnes.

Mr Yatinder Pal Singh Suri head of Outokumpu India said that "We have undertaken a feasibility study for the proposed mill that would roll hot rolled coil into sheets for consumption in various industries.”

He said the company will import HR coils from its plants in Finland and Sweden to meet the requirement of the proposed CR mill that is likely to come up in Maharashtra or Gujarat by 2010.

Mr Suri said that the sheets manufactured from the CR mill would be of 0.5 and 0.4 mm thickness and supplied to catering, appliances, architecture, fabrication and white goods sectors, among others.

Universal Stainless raises prices of tool steel products

Universal Stainless & Alloy Products Inc announced base price increases of 5% to 7% on all tool steel products manufactured at its Bridgeville and Dunkirk facilities. The increase will be effective with all new orders entered on July 1st 2008. Current material and energy surcharges will remain in effect.

Mr Chris Zimmer vice president of sales & marketing said that "The price adjustment is necessary to offset the impact of sharply higher energy and operating costs as we focus on responding to continued strong market demand. This action will enable us to continue our reinvestment in equipment and facilities to better serve our customers."

Baemyung Metal acquire 100% stake in Chinese stainless steel maker

South Korea Baemyung Metal Co Ltd announced that it will acquire a 100% stake in China based company, which is mainly engaged in manufacturing of stainless, for KRW 38.4 billion.

The report added that settlement date for stake acquisition will be August 31st 2008.

Philippines grants permit to Platinum Group ferronickel plant

According to Philippine mines and geosciences bureau, Mr Jose Atienza Philippine environment secretary has issued a mineral processing permit allowing Platinum Group Metals Ltd to operate its Manticao ferronickel plant.

An official of the agency said that PGMC has filed an application for an MPP involving a second ferronickel facility in the country that is still pending.

The company's Manticao plant is located in Misamis Oriental province in southern Philippines.

PGMC has signed a supply contract with BHP Billiton for the Philippine company's nickel output.

Indian mining ministry favors export of iron ore

Indian Parliamentary Consultative Committee attached to the ministry of mines met recently to discuss all aspects of iron ore in India. The meeting was chaired by Mr Sis Ram Ola union minister of mines.

The members of the Consultative Committee were informed of the views of the ministry of mines that management of mineral resources has to be closely integrated with the overall strategy of development whereby exploitation of minerals is to be guided by long term national goals and perspectives. In view of the availability of ample resources of iron ore in India, the ministry is of the opinion that there is no reason for concern on raw material security for the domestic steel capacities likely to come up in future.

There has been a tremendous increase in the production of iron ore since 2003-04 and there has also been a surplus of iron ore in the country. The estimated surplus of iron ore in 2006-07 was 15.12 million tonnes.

In million tonnes

The total production of iron ore fines in 2006-07 was 100 million tonnes against a total production of 181 million tonnes iron ore. The total export of fines in 2006-07 was 68.38 million tonnes against a total iron ore export. The consumption of fines by the domestic steel industry was only 41 million tonnes living a gap of 59 million tonnes.

Regarding the export of iron ore, the ministry of mines has opined that there does not appear to be justification for restricting export of Iron Ore from the perspective of availability or rate of depletion of reserves. According to the National Steel Policy 2005, annual export of iron ore is likely to grow to about 100 million tonnes by 2020. If this estimation holds good, the depletion of iron ore resources would only be between 0.8 billion tonnes and 1 billion tonnes out of the current resources of 25.25 billion tonnes.

The ministry of mines has pointed out that for a GDP growth rate of above 8%; the mining sector has to grow. After many decades of stagnation, international iron ore prices have been at a historically high level over the last two years or so. Thus, this is not the opportune time when India should be putting in any restrictions on export of the commodity.

The ministry is also of the opinion that a ban on the export of iron ore would have an adverse impact on domestic prices of the commodity and consequently on the development of iron ore mining as a whole. Export account for almost 50% production of iron ore. When market shrinks due to export restrictions and limited local demand, prices will fall to the point of marginal profitability leading to the closure of a number of mines.

The ministry also feels that it is national interest to promote pelletization, calibration, beneficiation and blending of exports on a large scale to compete with international export market.

Update on spot prices of Indian iron ore import in China

It is reported that spot market of Indian iron ore import remained stable

Rates in CNY per tonne

Considering6.86250 as exchange rate between USD and CNY, the average prices work out to

In USD per tonne

Therefore, at preset, the differential between benchmark 63.5% and lower grades is as under
Grade Rebate

In USD per tonne

(Sourced from www.steelprices-china.com)

NAPC bags two iron ore mining projects in Thailand

BS reported that Chennai based National Asphalt Products & Construction Company has bagged 2 iron ore mining projects in Thailand. The contract value of the projects estimated to be around USD 110 million and for a period of 10 years. Both projects will be executed with a JV partner.

Mr Varun Manian director of NAPC said that it has also signed an INR 60 crore manganese ore mine project in Laos in Cambodia. He added that "Initially we are expecting INR 110 crore revenue every year from the iron ore project in Thailand and INR 30 crore from manganese ore project in Cambodia."

Mr Manian said that, in Thailand, the 2 mines are located in Wang Pong and Pa Tong spread over 5000 acres and 2000 acres respectively. When the project starts it will create 1000 jobs for the local Thai population, besides providing off shore works to around 80 NAPC engineers.

NAPC is also planning to invest INR 1,400 crore in the next 2 to 3 years on various infrastructure related projects.

Chinese iron ore imports prices in 4 months surge by 80% YoY

Xinhua reported that China's iron ore imports surged during the first four months of this year as users sought to avoid anticipated higher costs.

The General Administration of Customs said from January to April, China imported 150 million tonnes of iron ore up by 15.1%YoY. The arrivals were valued at USD 19.87 billion up by 110% YoY. The average price reached a record USD 129.5 per tonne up by 80%.

According to the report in the first four months, China imported 56.18 million tonnes of ore from Australia up by 10.3%, 38.23 million tonnes from India up by 19% and 33.07 million tonnes from Brazil up by 8.6%.

Imports from the Association of Southeast Asian nations were up 110 percent to 4.28 million tonnes.

Importers expected new agreements with suppliers to mean higher prices. They also expected higher export duties in major source countries, such as India and rising shipping costs.

MSL set to acquire Indonesian mining firm

ET reported that Maharashtra Seamless Limited is in the race to acquire an Indonesia based iron ore mining firm for around INR 300 crore.

The report said that “It is learnt that the Indonesian firm has iron ore reserves of close to 20 million tonne. If the deal goes through, Maharashtra Seamless would also establish a 1 million tonne steel plant close to the iron ore deposits in Indonesia with investments of up to INR 1,200 crore.”

Company sources said that it would resort to internal accruals to fund the proposed steel project as well as the acquisition. As part of the backward integration initiatives, it had planned to set up its first steel plant in Orissa. However, if the deal with the mining firm goes through, the plant would instead come up in Indonesia considering the proximity to iron ore reserves.

According to the industry sources, the acquisition of the Indonesian iron ore mining company would help MSL meet iron ore requirements for its proposed steel plant. The steel plant, in turn, would serve as a raw material source for company’s seamless pipes and tubes business.

Ukraine to auction 24 coal mines

Bloomberg reported that Ukraine, Europe's third-biggest coal supplier, will auction 24 state owned mines as it seeks to boost output of the fuel and reduce dependence on Russian gas imports.

Ms Yuliya Timoshenko Prime Minister of Ukraine said the government will seek bids for 12 offerings of two mines each in the near future. She said Ukraine will sell mines in the Donetsk, Luhansk and Lviv regions. The local coal price will be raised, and miners facing dangerous conditions will be paid by the hour, rather than by volume, leading to higher wages.

According to report Ukraine plans to increase output from its mines to 82 million tonnes this year up from 80 million tonnes in 2007 to reduce dependence on natural-gas imports.

Australia to decide in 90 days on SinoSteel bid for Murchison

It is reported that Sinosteel Corp's bid to gain a stake in Murchison Metals Ltd was halted by the Australian government as it decides whether to allow the Chinese company to buy into the Perth based iron ore miner.

The Federal Treasury said that the Foreign Investment and Trade Board prohibited the proposed acquisition by Sinosteel of Murchison assets, land and a substantial shareholding in the company for 90 days while it considers an application for approval of the transaction.

Murchison and Sinosteel are battling for control of Midwest Corp., another Perth based iron ore producer. China's second largest iron ore trader has offered AUD 1.36 billion in cash for Midwest. Murchison and Sinosteel want to control Midwest's Weld Range iron ore deposit in Western Australia to meet demand from steel mills in the world's fastest-growing major economy.

MCC ink pact with LUPA for iron ore mining in Philippine

It is reported that China Metallurgical Group Corp has signed a framework agreement with the Philippine company LUPA to jointly develop an iron ore mine on Mindanao Island.

MCC hasn't elaborated the details. But Mr Jose Atienza environment secretary of the Philippines said earlier that MCC is discussing with the Philippines Environmental Department about the exploration licenses and investment incentives. And MCC might initially invest some USD 1.5 billion for the Mindanao Island mine project.

According to Mr Jose Atienza MCC also intends to build an integrated steel plant there, with total investment of as high as USD 10 billion.

Handan and Hebei jointly sets up mining investment company

It is reported that Handan Steel Group and Hebei State owned Assets Hold & Operation Company Limited have jointly set up a mining & exploration investment company, a capital platform for minerals resources exploration and consolidation. The company was approved by the provincial government June 23rd.

As per report the venture is mainly to develop iron ore resources and also the non ferrous metals and other minerals in Hebei Province. Meanwhile, it will speed up consolidation of the small and medium deposits in line with the principle that large-scale full-set minerals should go to large steelmakers and coal producers first. By the efforts, it will also realize scientific exploration of the resources in the province, ensuring preservation and sustainable development.

Electrosteel Casting to start work on Kodolibad mine by 2009

Projects Today reported that Electrosteel Casting, which obtained an allotment of iron ore mine at Kodolibad in Jharkhand, is likely to start mining work by 2009.

The initial estimates suggest that the mine has ore reserves of around 90 million tonnes per annum.

Chinese ferrosilicon export in May up by 14.2% MoM

According to the Customs data, China exported 149,756 tonnes of ferrosilicon in May up by 14.2% MoM from the previous month with export value of USD 193 million. Export volumes continue rising.

Japan and Korea remains the major export destinations and imported 80,579 tonnes of the product in the month, accounting for 53.8% of China's total ferrosilicon export of the period. Japan and Korea's ferrosilicon imports from China continue increasing since the year start. And imports in February took up by 51.1% of China's total export volume of the month.

The booming demand for ferrosilicon from the two countries is resulted from their domestic prosperous steel industry, and it's also possible for them to hoard ferrosilicon resources at the moment. And enquires from Japan have witnessed notable decrease since June. Meanwhile, ferrosilicon export price also drops and the latest price for 75# ferrosilicon lingers at USD 1990 to USD 2030 FOB.

(Sourced from MySteel.net)

Metso to supply iron ore crushing equipments to Assmang

Metso Minerals announced that it will supply crushing equipment to Assmang Limited for its Khumani iron ore mine in the Northern Cape of South Africa. The delivery will be completed during the second quarter of 2010. The value of the order is approximately EUR 10 million.

Metso said that the order comprises four large cone crushers for the Khumani mine’s expansion phase. These crushers will act in secondary and tertiary applications to complement Metso's crushing equipment that was ordered and commissioned during the first phase of the project. The development project aims to increase the iron ore production at Khumani.

Assmang Limited is a supplier of raw iron ore material to the world's steel mills and alloy plants. The major portion of its production is exported.

IronClad to start pre feasibility study Wilcherry Hill iron ore project

It is reported that IRONCLAD Mining will start a pre feasibility study into its Wilcherry Hill iron ore project on the Eyre Peninsula immediately.

According to the report, the company said that commencing the pre feasibility study now will assist in keeping the proposed mine development on track towards a production start in late 2010.

The report further cited IronClad as saying that the high level of mineral exploration in South Australia and nationally had caused the delay in mineral assays.

The company is conducting a major drilling campaign on the Wilcherry Hill project to extend an existing JORC Code compliant resource of 44 million tonnes of magnetite to a target level of 100 million tonnes.''

SACMH to raise ZAR 400 million for coal mine expansions

It is reported that South African Coal Mining Holdings planned to raise ZAR 400 million through a combination of a rights offer, selling new shares, and debt. Of the ZAR 400 million to be raised, one quarter would come from a rights offering at ZAR 4 a share.

According to the report, JSE listed SACMH said that the money would go towards improving infrastructure at its Umlabu operations and building two new underground sections at the mine. This would lift production at the mine, near Middelburg by 57% to 150 000 tonnes per month.

According to the report, the company would then sell some ZAR 50 million shares, with the balance of the capital to come in the form of debt.

The company stated that Black owned Royal Bafokeng Capital holds an interest of 65% in SACMH and had committed to following its rights in the rights offer.

Of the new 150 000 tonnes per year capacity, the company said it would sell 40 000 tonnes per month to State owned Eskom, with some 60 000 tonnes per month exported through its increased Richards Bay Coal Terminal allocation.

Mr Karl Gribnitz CEO of SACMH said having established SACMH as a profitable black owned and controlled coal mining company, we are now making a major investment in the business to increase production substantially and to become much more efficient. The Umlabu plant upgrade and new siding will cut out the need for any toll treatment and use of other sidings in the area, meaning significant cost savings.

Sidon International applies for Saskatchewan coal permits

Sidon International Resources Corporation has submitted coal permit applications to the government of Saskatchewan's Energy Resources Permitting Office. The application encompasses 18,432 hectares in east central Saskatchewan in the area of the recent Goldsource Mines Inc. coal discovery.

Sidon sid that the recent announcement of the discovery by Goldsource of coal in two drill holes, 1,600 meters apart, suggests the potential for a much larger coal system. Goldsource believes the coal it encountered is from the Mannville or Swan River group of Cretaceous age. Coal structures of the Cretaceous age are reported to be generally very large and can encompass several thousand square kilometers.

Sidon plans to aggressively stake further claims in this burgeoning prospective coal area of Saskatchewan.

Sidon International Resources Corporation is a junior exploration company with interests in Nevada North Dolly Varden Copper Gold Claims and White Pines Gold Claims, North West Territories Slave Craton Diamond properties and British Columbia Harrison Lake West Gold Silver Claims.

Seaborne coal trade 800 million tonnes by 2017 - Expert

Reuters reported an industry analyst saying that world seaborne coal trade will grow to 800 million tonnes a year by 2017 from 650 million tonnes now.

According to the report, the prediction was made at the 2008 McCloskey Coal USA conference and is based on persistent worldwide demand and delivery problems in several coal exporting nations.

Jharia Action Plan gets state cabinet nod

Ranchi Express reported that state cabinet has cleared the Jharia Action Plant for rehabilitation & resettlement of about 60,000 families likely to face eviction from 67 fire affected places there. Altogether 44155 houses of BCCL, 29,444 authorized displaced families would be evacuated from subsidence and fire zones of Jharia.

The action plan approved by the cabinet which would be sent to the union government offers 100 square meter carpet area free of cost of the resettlement to the ADF and monetary compensation at par with market value for the land and building. For the UDF, it offers 40 square meter carpet area dwelling in a multistoried building and a minimum of 250 days minimum wages per year for two years. However, they would not be entitled for compensation. The government of India would bear the rehab and resettlement cost.

Mr Gowans becomes chairman of Mining Association of Canada

It is reported that Mr Jim Gowans president & CEO of De Beers Canada Inc has been elected as chairman of the Mining Association of Canada replacing Mr Peter R Jones president & CEO of HudBay Minerals Inc, who has completed his two year term.

Mr Gowans has been an active member of the Mining Association of Canada Board and a key member of the Mining Association of Canada Towards Sustainable Mining Governance Team which is a stewardship initiative that aims to sustain the industry's role as a leading economic player by increasing public trust in its ability to manage the environmental and social issues important to Canadians. Mr Gowans also serves as a Mining Association of Canada representative on the Towards Sustainable Mining Community of Interest Panel.

With over thirty years of practical management experience, touching on most aspects of the mining industry, including exploration, major projects, operations and human resources, Mr Gowans in his current role looks forward to leading De Beers Canada through the transition to full production and the exploration of new Kimberlite deposits in Canada.

United Group wins AUD 100 million of rail contracts

Thomson Financial reported that Australian engineering services company United Group Limited has won AUD 100 million of rail sector work.

According to the report, the group contracts include the supply of an additional 315 wagons to BHP Billiton's iron ore operations in Western Australia's Pilbara region. It has already sold BHP more than 2,500 wagons.

The report added that the company also won an order to supply 13 sulphuric acid tank wagons to fertilizer group Incitec Pivot and has an order to supply 10 locomotives with an option for a further 30 to leasing company CFCL Australia.

Mr Richard Leupen CEO of United Group said the contracts would help the group replenish and grow its order book. He added that “Demand in all our business sectors remains robust, underpinned by strong investment in the resources and infrastructure sector.”

Massey wins stay of USD 260 million Wheeling Pitt verdicts

AP reported that coal mine operator Massey Energy Co has won a stay of a USD 260 million jury verdict pending an appeal to the US Supreme Court.

The state Supreme Court voted 3-2 to grant Richmond based Massey's request. Mr Robin Davis and Mr Brent Benjamin Justices voted no.

Last month, the court declined to hear Massey's appeal of the verdict won by Wheeling Pittsburgh Steel in a contract dispute.

Massey set aside USD 16 million to cover liability but has said that figure may need to be increased and could affect second quarter earnings.

The case was one of several scrutinized because of ties between outgoing Chief Justice Elliott Spike Maynard who disqualified himself and Massey chief Don Blankenship.

Metso to supply crushing and screening equipment to Moly Mines in Australia

Metso Minerals announced that it will supply crushing and screening equipment to Moly Mines for its Spinifex Ridge molybdenum project near Port Hedland in Western Australia’s Pilbara region. The delivery will be completed during the first quarter of 2009. The value of the order is approximately EUR 9 million.

Metso's delivery consists of two secondary cone crushers and two mining screens with screening media and auxiliary equipment, as well as two feeders including a low head exciter mechanism. Once completed, the project will process 20 million tonnes of molybdenum copper per annum. The expected operational life time of the mine exceeds 20 years.

Import price of Manganese ore at Chinese ports

It is reported that import price of manganese ore at Chinese port is as under

Price in CNY per MTU

Huizhou port to build 3 coal berths

It is reported that three 70,000 tonnes coal wharfs will be built at the Eastern part of Quanwan port area of Huizhou port. With total investment of some CNY 2.8 billion and the handling capacity would reach 15 million tonnes after the project completes.

As per report Huizhou Shenneng Port Company Limited the constructor of the wharfs has signed the construction contract recently.

Huizhou Shenneng Port Co is a JV of Shenzhen Energy and Huizhou Port Group. And it's learned that the construction contract still needs approval from the two companies.

(Sourced from MySteel.net)

Cleveland makes private placement of USD 325 million of senior notes

Cleveland Cliffs Inc announced that effective from June 26th 2008, it has closed on two tranches of senior notes totaling USD 325 million.

The privately placed offering consisted of USD 270 million 6.31% Five Year Senior Notes due June 15th 2013 and USD 55 million 6.59% Seven Year Senior Notes due June 15th 2015. Interest will be paid on the notes for both tranches on December 15th and June 15th until their respective maturities. Interest and principal amounts are guaranteed on a senior basis by certain domestic subsidiaries of the Company. The Company will use the proceeds to repay senior unsecured indebtedness and for general corporate purposes, which may include acquisitions.

Ms Laurie Brlas executive vice president & CFO of Cliffs said that “The placements enhance Cliffs’ financial flexibility and will allow us to quickly act on opportunities to grow our business as they arise.”

Herald recommends Tango or Calipso bid

Reuters reported that Australian listed miner Herald Resources Ltd advised its shareholders on Friday to decide themselves on which of two rival takeover bids to accept.

Herald said that Tango Mining Pte Ltd and Calipso Investment Pte Ltd have each bid AUD 2.80 a share cash for Herald. The offer from Tango is to close on Tuesday and the Calipso offer on Thursday.

China Era Energy and CNPC ink Shanxi coal bed methane deal

XFN Asia reported that China Era Energy Power Investment Ltd has signed a contract with China National Petroleum Corp for joint exploration of a coal-bed methane block in northern China's Shanxi province.

The Hong Kong based company said in a statement the CBM block located in the west of Shilou county covers total area of 1524 square kilometers. It said the block has estimated proven reserves of 55.8 billion cubic meters with recoverable reserves at 27.9 billion cubic meters.

According to the report it is expected to produce 400 million cubic meters of CBM per year after operations. The company did not say when operations will begin.

China Era last month signed an initial agreement with PetroChina for joint development of Kashi North Block at Tarim basin in northwestern China's Xinjiang region.

Yanzhou announced change of ADS to H share ratio

Yanzhou Coal Mining Company Limited announced that, effective on June 27th 2008, its ADS to H Share ratio will change from one, ADS representing fifty, H