DH News Services cited Mr Murugesh Nirani minister of Large & Medium Industries as saying that Goa based company Tungabhadra Minerals Company will set up INR 25,000 crore steel plants in the district.

Mr Nirani said that in the first phase the company has agreed to invest INR 10,000 crore and would be providing jobs for nearly 50,000 people. He said that “A team of senior officials from the company were already searching for a suitable place in the district to set up this mega plant. He said that a technical team of the company would also be visiting the district shortly. Based on the report of this team, the place would be selected.”

Mr Nirani said Indian government has come forward to provide all the basic facilities and infrastructure for this company to set up the plant.

Mr Gautam Radia director of Tungabhadra Minerals Company said that they are searching for a place between Kulgeri Cross & Gaddankeri Cross and between Hunagund & Amminghad in Hunagund taluk to set up the steel plant. He said that “Bagalkot district is most suitable to set up a steel industry. If the government provided 4,000 acres to 6,000 acres of land needed for setting up the plant, than the steel unit would be set up within next 36 months.”

It is reported that POSCO, South Korea steel giant has threatened Orissa government due to delay in fulfilling its promise regarding 4,004 acre land for its 12 million tones per annum Greenfield steel unit from the state government.

The report cited a POSCO official as saying that "The project work is already too delayed. We have given deadline to the Orissa government to hand over the required land."

POSCO officials are also concerned over the delay in recommendation of Khandahar mine to POSCO.

POSCO is also struggling to get forest division clearance by Supreme Court empowered committee and it has not got non forest land from state government as yet.

POSCO has signed MoUs with Orissa government to put up an INR 51,000 crore steel plant on June 2005 and this project was supposed to start in 2009 at Jagatsinghpur district. But so far there has not been any progress and POSCO’s project site has turned into a war zone.

TOI reported that global investment banker Barclays Capital has projected that Indian inflation may surge to 17% by September 2008, on back of another round of hike in fuel prices in September 2008.

The report said that "We believe WPI inflation will remain in double digit territory until May 2009. We expect WPI inflation of 17% by September 2008. The government is likely to hike fuel prices between 10% and 20% again as early as September 2008 to limit fiscal risks.”

The report further added that rise in the price of Indian crude oil basket to USD 145 per barrel to USD 150 per barrel from the current USD 132 per barrel could be the trigger for another round of increase in fuel prices.

Indian government last revised retail petroleum prices with effect from June 5th 2008 when petrol prices was up by INR 5 per liters, diesel by INR 3 per liters & cooking gas up by INR 50 per cylinder. This resulted in inflation touching a double digit figure of 11.05% for the week ended June 7th 2008.

BS reported that the project cost of the proposed container terminal at Diamond Harbor dock system on the Hoogly River, 40 kilometer downstream from Kolkata, has more than doubled from the estimated cost to INR 1233 crore and the Kolkata Port Trust is about to float request for qualification for the project next month on this basis.

The project cost was earlier pegged at about INR 500 crore.

AS per report, the project proposal has been revised, which was earlier planned in 2 phases, with provisions for handling both dry bulk cargo as well as containers.

As per report, the new terminal would now have 4 ship handling jetties and 2 barge jetties. About 120 acres would be required for the project. Of this, around 23 hectares would come from the West Bengal government 16 hectares from private owners while the rest from defense authorities and director general of lighthouse and lightships.

Mr Anup Chanda chairman of KoPT said that “The committee asked KoPT to go for containerization of cargo in line with the global trend as half of global cargo was in containers. The container terminal will be built in private public partnership format on build operate transfer basis.”

Mr Chanda said that environment clearance for the project is in hand and so KoPT planned to appoint a consultant for preparing a detailed project report in this month. KoPT would build 3 more container freight stations to supplement its existing 2 CFS. The project plan was before the ministry of commerce awaiting sanction. The 2 existing CFSs were under Central Warehousing Corporation & Balmer Lawrie.

BS reported that cheap imports from China threaten to punch a huge hole in the business of local automobile component makers as Indian owned car and 2 wheeler manufacturers have plans to import in a big way from China and have set up full fledged purchase offices there.

As per the report, auto component imports from China have grown rapidly in the last 2 years. From less than 1.5 % of all component imports in 2003 or 2004, China now accounts for close to 10%. A quarter of the growth in component imports has been contributed by China in the last 3 years. India's exports to China have stagnated at around INR 100 crore to 150 crore in the last 5 years.

Dr Pawan Goenka president of Mahindra & Mahindra said that "In some cases, the landed cost of Chinese components is cheaper than the raw material cost of the same component in India."

Component manufacturers said that on an average parts can be bought 30% cheaper in China. Such imports have created new price benchmarks and robbed them of all powers to raise prices on account of higher input costs. And this, they say, has hurt the industry real bad.

The import and export of Auto components is as under

Mr Sanjay Labroo CEO & MD of Asahi India said that "The cost of making glass has gone up by 50% in the last couple of years, but our prices have up only by 10%."

Mr Shriram Pistons & Ashok Taneja Rings President said that "The industry is squeezed between large steel makers and automobile makers." The company has been able to recover only 3 quarters of the rise in its input costs from its customers in the last 1 year.

Mr Surinder Kapur Chairman of Sona Group said that "One of them told me it will be 20%." M&M has decided that in no product category will Chinese imports exceed 50% of requirement. But this isn't enough to calm the frayed nerves of the Indian component industry.

The Automotive Component Manufacturers' Association had some weeks back taken a team to China to study how components were made so cheap there. A member of the team said that "We could understand only half of the price difference. The other half we could not figure out."

Reuters reported that IFGL Refractories Ltd's diversification into foundry business will help consolidated sales rise 45.11% to INR 5.5 billion in FY09.

In June the firm acquired Germay's Hofmann Ceramic GmbH, which makes ceramic filters used by foundries for EUR 7 million. The deal was executed through IFGL's UK step down subsidiary Monocon International Refractories Ltd. It also included acquisition of Hofmann's subsidiaries in UK and the Czech Republic.

Mr Pradeep Bajoria director & CEO of IFGL Refractories Ltd's said "The acquisition will help us get foothold in foundry business and establish presence in Europe. He added that IFGL plans to make ceramic filters in India for the local market and export to China and other countries.

Mr Pradeep Bajoria said "The foundry business is growing by 15 percent in India and 17% in China. We see a good business opportunity going forward. He said that the firm will set up ceramic filters unit at its existing refractory plant in the eastern state of Orissa at a cost of INR 70 million.”

BL reported that Tuticorin Port celebrated its 34th Foundation Day on July 11 2008. Declared as a major port in 1974, the erstwhile anchorage port and the Tuticorin New Harbor were integrated in 1979 with the constitution of Tuticorin Port Trust Board.

Mr A. Subbaiah vice chairman of Tuticorin Port Trust said that a number of developments took place with the increase in traffic. From a modest 1.035 million tonnes during 1974 or 1975, the port has grown to handle 21.84 million tonnes during 2007 or 2008. It has secured the third position among the major Indian ports in terms of growth rate 19.33% during 2007 or 2008. It has handled 450,398 TEUs during 2007 or 2008, registering 19.44% growth.

Currently, under the National Maritime Development Program, the government has sanctioned several projects to the tune of INR 4,571.25 crore for development. Under Phase I, 17 projects with an outlay of INR 961.25 crore are under implementation. Under Phase II, 7 projects with an outlay of INR 3,610 crore are to be implemented. The schemes approved include the construction of North Cargo Berth No.1 at an outlay of INR 40 crore, capital dredging project at an outlay of INR 538 crore and an in principle approval for the development of an Outer Harbor under public private partnership.

Future projects envisaged include development of 129 acres in the Hare Island adjoining Red Gate of the port to handle dusty cargo with a separate 2 kilometer railway line an eco park and a buffer zone, a special economic zone in 160 acres of port land for agriculture oriented and food processing units, textiles, non polluting industries and hi tech industries with provision of water, road & electricity and a request to the Tamil Nadu Government for transfer of an additional 2,185 acres for expansion of the port estate.

It is reported that Madhucon Projects bagged an EPC contract worth INR 989.5 crore from Simhapuri Energy for setting up a 2x135 MW coal based power project at Krishnapatnam in Nellore District of Andhra Pradesh.

As per report, the 2x135 MW plant is part of the proposed 620 MW plant being set up by Simhapuri Energy at Tamminapatnam and Mommidi villages.

Madhucon had already been allotted land and achieved financial closure. It also obtained environmental clearance from the MoEF. The project is expected to commence generation by 2010.

It is reported that Bharat Heavy Electricals is planning to generate power from a demo plant which has been installed at its complex in Tiruchirapalli.

As per report, the 6.25 MW integrated gasification combined cycle plant till now a demo plant would be converted as a power generating unit. The initial investment would be to the tune of INR 1.25 billion and annual consumption of coal would be to the tune of 50,000 tonnes when converted as a power generation plant.

A task force has been constituted with senior executives of BHEL & NTPC which would decide about the additional investment to be made.

BL reported that Kolkata Port Trust will finalize the terms and conditions for setting up port facilities at a cost of INR 120 crore at Diamond Harbor through PPP model at its forthcoming board meeting. The Kolkata Port Trust would also float the request for qualification soon.

Mr AK Chanda chairman of KoPT said that “The request for qualification document will be finalized and will take the board's approval to develop the Diamond Harbor port facility on BOT basis through Public Private Partnership.”

He said that the company had decided to go for the facility at one goes against earlier proposal of development in 2 phases. After the expert committee on containerization's recommendations, we have decided to build the facility at 1 go.”

The port project would be spread over 120 acres most of the land of which belongs to defense. As per that report, the total project cost has been estimated at INR 1233 crore and involves construction of 4 ship handling jetties and 2 barges. The total capacity would be 1.6 million tonnes.

BS reported that Anil Dhirubhai Ambani Group is looking for acquisition for starting its cement business, much before it completes its 4,000 MW mega power project at Sasan in eastern Madhya Pradesh which is to provide the fly ash that is used to make cement

According to the project Anil Dhirubhai Ambani Group has initiated negotiations with various small and medium companies through a merchant banker for the acquisition.

ADAG has also appointed Mr Anil Singhvi as a vice chairman for Reliance Natural Resources which will set up the cement business. Earlier Mr Singhvi served Ambuja Cements as a managing director.

The fast developing Indian steel industries are continuing beyond what most believed was possible. As one of the world's fastest growing economies, India has become the most happening place among world steel market over last few years and thus is in the radar of not only Indian but most of global players associated with steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

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Ternium SA announced that, upon expiration of the term contemplated under Venezuela's Decree Law 6058, Venezuela, acting through Corporación Venezolana de Guayana or CVG, has assumed operational control of Sidor.

Following the change in operational control, CVG has assumed complete responsibility over Sidor's operations; Sidor's board of directors will cease to function and Sidor's operations will be managed by a 6-member temporary operating committee, the majority of which members will be appointed by CVG. Ternium, however, has not yet transferred its ownership interest in Sidor to Venezuela.

The term provided in the Decree for the negotiation of the conditions under which all or a significant part of Ternium's interest in Sidor will be transferred to Venezuela and of proposed future business relationships between Ternium and Sidor has been extended until August 18th 2008.

The release added that “Ternium continues to reserve all of its rights under contracts, investment treaties and Venezuelan and international law and to evaluate its options in realizing the fair value of its interest in Sidor.”

It is reported South Korean POSCO’s new hot dipped galvanizing plant in Mexico will put into production by June 2009.

This 400,000 tonnes plant is located at industrial complex at Altamira in Mexico, the mill now is still under construction.

POSCO now operates three processing centers in three major Mexican auto industry regions.

POSCO said that it plans to supply its own CR required to make the galvanized and galvannealed steel.

Reuters reported that shares in JFE Holdings jumped nearly 8% on Monday after the company said it may raise steel prices to offset soaring raw materials costs.

The spokesman confirmed a Nikkei business daily report on Sunday about the possible price hike.

The spokesman added that the company does not have a specific plan as to when or how much of its soaring costs it will transfer to clients, but he said a possible price hike could come as early as for the October to December quarter.

VNA reported that Vietnam local steel producers are rushing to export steel billets even though shortages in domestic market are causing production difficulties for many Vietnamese producers.

As per report, billets are being exported at USD 1,200 per tonne to USD 1.300 per tonne whereas they fetch about USD 1,000 per tonne for construction grade steel on the domestic market.

Many steel businesses have been forced to cut production by 20% to 30% and save their steel ingots for export. This is the main reason why domestic steel prices are soaring. The price of construction grade steel has increased to VND 20 million (USD 1,250) per tonne and is likely to hit VND 21 million soon

According to the industry insiders, exports of steel ingot by domestic steel producers are to blame for the lack of raw materials and the price hikes of construction grade steel.

US rebar mills are expected to hike rebar prices again for August shipments.

A combination of shredded scrap prices soaring by USD 32 to USD 36 per tonne and few imports of rebar was the main reason behind. Nucor is predicted to raise its rebar price by USD 66 per tonne.

US domestic mills were offering USD 1,080 per ton to USD 1,091 per tonne for July shipments. The import prices from agents are being quoted at USD 1,146 per ton to USD 1,191 per ton.

(Sourced from YIEH.com)

The Jamaican Information Service quoted Mr Karl Samuda industry minister of Jamaica as saying that contingent on stakeholder compliance with the conditions set out by the ministry, scrap metal trade will resume on July 15th 2008.

In June, Mr Samuda inked a ministerial order prohibiting the export of scrap metal, stating at the time the prohibition became necessary in order to confront illegal activities that pose a major threat to the economic development of the country and the disruption of essential services.

The minister said that "We can not be in an industry at any cost. You can not deface the country, to say nothing of the stolen infrastructure.”

He pointed out that not all stakeholders would be in a position to commence trading on July 15th 2008, as only 19 of the 63 traders had met the stipulated criteria when he met with them recently,.

According to figures provided by the Jamaica Exporters' Association, scrap metal export revenues expanded from USD 13.3 million in 2005 to USD 99.6 million in 2006.

ThyssenKrupp Services, the trading and services arm of the ThyssenKrupp Group, announced another step forward in the expansion of its services to the aerospace industry. Its US subsidiary, TMX Aerospace signed a new 10 year contract with The Boeing Company on June 20th 2008, covering integrated supply chain management services.

The contract is a follow up to the successful service contract first signed in 1998. It covers global purchase pooling, deadline tracking, inventory management, the processing of all aluminum and titanium products, the optimization of in plant materials flow and the coordination of 700 production plants and subcontractors of Boeing Commercial Airplanes.

Mr Joachim Limberg deputy chairman of the executive board of ThyssenKrupp Services and in charge of the Materials Services business said that "The extension of the Boeing contract is a clear reflection of the confidence in our worldwide materials, logistics, and IT capabilities and endorses our strategy of pushing ahead with our business and services in the aerospace industry."

Following the acquisition of the aerospace operations from Alcoa at the end of 2006 and the takeover of the Apollo Metals Group at the end of 2007, ThyssenKrupp Services has bundled its entire aerospace companies and operations in the newly formed ThyssenKrupp Aerospace. With sales of around USD 700 million and 30 locations in 13 countries, this group is the world's biggest provider of materials services for the aerospace industry.

It s reported that South Korea's shipping agencies are set to establish a shipyard that specializes in repairing ships with high added value after forming a consortium. It is the first time that shipping agencies are joining to build a repairing shipyard.

According to the industry, Korea’s seven middle sized shipping agencies formed a consortium to create the tentatively named Busan New Port Repairing Shipyard Corporation and recently suggested its business proposal.

The repairing shipyard will be located nearby Busan New Port in western Busan and cover an area of 185,000 square meters. A source close to the consortium said that “Busan New Port is a good place to run the ship repairing business since it is crowded with shipbuilding companies. The consortium can secure 70% to 80% of the total sales only by repairing ships of the shipping agencies belonging to the consortium.”

Shipping agencies participating in the consortium include Korea Marine Transport Co, Namsung Shipping Co, Korea Line Co, Pan Continental Shipping, Sunwoo Shipping, KSS Line Shipping and Hyopsung Shipping. The consortium will be jointly led by Hyopsung Shipping and Namsung Shipping Co.

In its proposal, the consortium said that "Even though Korea is a shipbuilding powerhouse, its shipping agencies have to send its middle to large scale ships in need of repair to other Asian nations including China and Vietnam. Since no Korean shipyard is capable of examining and repairing large ships, Korea has no choice but to waste a large amount of foreign currencies. Also, there is a risk that shipbuilding technologies would be leaked in the repairing process."

After considering validity of the business, the ministry will decide whether to approve the shipyard construction by the end of 2008. Other shipping agencies are also scheduled to suggest a business proposal to establish a repairing shipyard to the ministry.

Reuters reported that an affiliate of the world's top shipbuilder, Hyundai Heavy Industries Co Ltd signed a USD 745 million contract on to buy a small domestic brokerage and an asset management firm.

As per report, the signing took place after Hyundai Heavy and affiliate Hyundai Mipo Dockyard Co Ltd agreed in May to buy a majority of unlisted CJ Investment & Securities Co Ltd from CJ Group companies, including CJ Corp and CJ Chairman Lee Jay hyun.

The purchase of a 75% stake in the securities firm was valued at KRW 705 billion (USD 701.8 million) and was funded by Hyundai Mipo alone.

Hyundai Mipo also shelled out an additional KRW 43 billion for a minor stake in CJ Asset Management Co Ltd, a unit of the CJ brokerage house, to bring its ownership in the fund manager to 99%.

Hyundai Mipo in a filling to Korea Exchange said that "We will generate additional revenues through efficient management of cash assets and strengthen business capacity.”

With the acquisition, Hyundai Mipo and Hyundai Heavy join the ranks of South Korean manufacturers and banks moving to buy or launch securities houses and asset management firms.

ArcelorMittal, under the new share buy back program as announced on December 12th and on December 18th 2007 and the share buyback mandate as announced on July 1st 2008, advises that it has repurchased 4,691,129 shares from July 7th until July 11th 2008.

The shares were repurchased at an average price of EUR 55.0081 and for a total amount of EUR 258 049 859. With these repurchases, the mandate given to Exane BNP Paribas on June 27 by Frecolux, a subsidiary of ArcelorMittal to buy back up to 10 million ArcelorMittal shares is completed.

JFE Steel revised the estimation of cost up for raw materials, energy and freight to JPY 830 billion for fiscal 2008 started April, which is JPY 30 billion higher than original estimate in April mainly due to higher Australian iron ore settlement.

JFE Steel expects the cost could increase more depending on market for ferrous scrap and ferroalloy. T

JFE said that it is trying to improve the steel selling price depending on the market condition and supply balance while the firm tries to improve the stable long term procurement including certain investment for mining.

Metals USA Holdings Corp announced record breaking results for the quarter ended June 30th 2008 which exceeded its previous record results posted in the second quarter of 2004. The Company recorded net sales for the second quarter of USD 593.1 million, a USD 112.2 million increase from the USD 480.9 million recorded during the second quarter 2007. Adjusted EBITDA for the quarter ended June 30th 2008 was USD 92.6 million, a 104% increase from the USD 45.5 million recorded in the second quarter 2007 and more than 60% higher than the Company's previous record posted for the second quarter 2004. Adjusted EBITDA is a non-GAAP financial measure used by Metals USA and its creditors to monitor the performance of the business.

Metals USA Holdings recognized depreciation and amortization expenses during the quarter of USD 5.8 million. Operating income, the GAAP measure that we believe is most comparable to Adjusted EBITDA, was USD 83.4 million for the second quarter, USD 44.0 million higher than the same period last year. Interest expense for the quarter was USD 19.9 million. Net income was USD 39.8 million, compared to USD 11.7 million recorded for the second quarter 2007, a USD 28.1 million increase.

Mr Lourenco Goncalves chairman, president & CEO of Metals USA Holdings said that "Despite the slowdown in the economy and historically low shipments from the service center industry this year, Metals USA produced our best quarter ever. We believe such a strong accomplishment was a direct result of our ability to gain market share and, at the same time, achieve price increases down the chain."

Metals USA provides a wide range of products and services in the heavy carbon steel, flat rolled steel, non ferrous metals and building products markets.

American Iron & Steel Industries reported that in the week ending July 12th 2008, US’s raw steel production was 2.081 million net tons while the capability utilization rate was 87.2%. Production was 2.059 million net tons in the week ending July 12th 2007, while the capability utilization then was 88.6%. The current week production represents 1.1% increase from the same period in 2007.

Production for the week ending June 28th 2008 is up 1.5% from the previous week ending June 21st 2008 when production was 2.076 million net tons and the rate of capability utilization was 87.0%.

Production for the week ending July 12th 2008 is down by 0.8% from the previous week ending July 5th 2008 when production was 2.096 million net tons and the rate of capability utilization was 87.8%.

Adjusted YTD production through July 12th2008 was 58.586 million net tons at a capability utilization rate of 88.6%. That is a 2.4% increase from the 57.235 million net tons during the same period last year, when the capability utilization rate was 85.9%.

District wise production for the week ending June 28th 2008
1. Northeast Coast: 183
2. Pittsburgh/Youngstown: 218
3. Lake Erie: 90
4. Detroit: 99
5. Indiana/Chicago: 478
6. Midwest: 259
7. Southern: 657
8. Western: 97
(In thousands of net tons)

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

JMB reported that Japanese integrated steel makers could increase the flat steel export price for October to December 2008 period aggressively when they cannot meet the strong demand.

As per report the steels including Nippon Steel and JFE Steel start the negotiation in late July preparing to offer more than USD 300 per tonne hike for plate steel compared with first half of fiscal 2008 started April and around USD 100 sheet steel from July to September 2008.

HIG Capital LLC a leading global private equity firm announced that its affiliate has acquired DynaSteel Corporation. DynaSteel specializes in engineering and fabricating complex, customized high precision carbon steel and specialized alloy systems used primarily in air quality control systems.

Mr Jim Russell CEO of DynaSteel Corporation said that "We are pleased to work with HIG to leverage their experience growing private businesses. The recapitalization of DynaSteel allows us to continue growing our customer base across multiple end markets and expanding our facilities and gives us the flexibility to support our customers as they keep up with ever tightening environmental regulations."

Mr Richard Stokes of HIG Capital said that "We are excited about DynaSteel's prospects, and intend to actively support the Company as it builds on its well-deserved reputation. We have great confidence in the management team as operators and believe that the partnership between DynaSteel and HIG will facilitate and expedite our collective goal to grow the Company to a position as the pre eminent provider of high quality fabricated air quality products."

DynaSteel established in 1970, fabricates largescale, high precision, complex air handling systems for the power, cement, petrochem and other industries. From three strategic locations in Memphis, Tennessee, Natchez and Iuka, Mississippi, the Company is able to leverage its unique waterway access to deliver integrated solutions to its customers. Customers value the ability to receive modularized systems via barge, enabling DynaSteel to provide a cost effective and low risk solution.

Bloomberg reported that Japan’s 3rd largest automaker Nissan Motor Co will raise domestic prices on its forklifts by 4.8% to 6.5% to pass on higher costs for steel and other raw materials.

Nissan in a release said that the new prices will be effective from July 15th 2008 today.

Prices for an engine based forklift will rise to JPY 2.53 million (USD 24,000) from JPY 2.39 million.

Salzgitter AG and Norddeutsche Affinerie AG announced that they have agreed to investigate medium to long term opportunities to cooperate for example in the fields of production technology, research and development as well as in procurement and sales for the benefit of both companies.

In conjunction with this activity, Salzgitter AG acquired a 5.8 % stake in the share capital of Norddeutsche Affinerie AG.

Dr Bernd Drouven CEO of Norddeutsche Affinerie AG said that “I am pleased about the commitment of Salzgitter AG, which knows our business very well as an industry related company. We feel it will be particularly useful to be able to have a cooperation with a reciprocal transfer of know how in various sectors, for example in research and development.”

The Norddeutsche Affinerie Group is the largest copper producer in Europe and the world leader in copper recycling. We produce some 1 million tonnes of copper cathodes and more than 1.2 million tonnes of copper products each year. We have 12 sites in 7 European countries with a total of about 4,700 employees.

The US Department of Transportation’s Maritime Administration announced that it has sold two obsolete ships to American salvage companies for more than USD 1 million each.

The sale of the vessels from the James River Reserve Fleet each exceed the agency’s ship disposal program’s earlier price of USD 1,151,727.

The vessels sold were the Kalamazoo, which has been sold to Esco Marine, Inc at Brownsville in Texas, for USD 1,465,726 and the Truckee which was sold to Bay Bridge Enterprises LLC at Chesapeake in Virginia for USD 1,231,328.

Maritime Administration also announced that three other obsolete vessels also were sold. The sale price of the three totaled close to a combined USD 1.5 million. It said that three other obsolete governments owned ships are also being sold for a combined price of nearly USD 1.5 million.

The Nitro has been sold to Esco for USD 446,726; the Gulf Merchant also was sold to Esco for USD 476,726 and The Rigel has been sold to All Star Metals LLC at Brownsville in Texas for USD 469,626.

With the sale of the five vessels Maritime Administration has 30 ships remaining to be disposed of in the James River fleet and less than 20 at Maritime Administration Beaumont Texas fleet.

Reuters reported that an Indonesian parliamentary commission urged the government to sell a stake in the country's largest steel maker, PT Krakatau Steel, through an initial public offering in a bid to protect national interest.

Krakatau Steel which has assets worth an estimated IDR 11 trillion (USD 1.20 billion), is one of 37 Indonesian state firms slated for privatization this year to help fund a widening budget deficit.

The government has decided to sell the firm's shares through an IPO but the plan still needs to be approved by parliament. The defence and foreign affairs commission's recommendation suggests the plan may get the green light from parliament.

The government wants to keep a majority stake in Krakatau Steel, which produced 2.25 million tonnes of steel products in 2007 or about 30% of Indonesia's total steel demand.

The government has said it is aiming to sell a maximum 40% stake in the firm.

Mr Theo Sambuaga chairman of the defence and foreign affairs commission of Indonesia said that selling the shares through an IPO would ensure state ownership of strategic industries that support production of security and military equipment. He said that "The commission agrees with the government that efforts to increase funds for Krakatau Steel should be done by an IPO and not strategic sales to retain state ownership of strategic industries.”

Reuters reported that Finnish engineering group Metso Oyj’s car manufacturing unit Valmet Automotive had signed a letter of intent with US hybrid car producer Fisker Automotive to build the Karma hybrid car in Finland.

Metso in a statement said that deliveries of the four door hybrid sports sedan are set to start in the fourth quarter of next year, with production volume projected to reach 15,000 a year. But it gave no financial details.

Valmet will stop making Porsche's Boxter and Cayman models in 2012 after Porsche AG decided not to extend the manufacturing deal they have had since 1997.

Reuters reported that Iraq hopes by year end to conclude production sharing deals with foreign firms to renovate 35 major state industries, including its sole petrochemical complex.

Mr Fawzi Al Hariri industry and minerals minister of Iraq said that better security in the country had drawn over 120 firms and consortia keen to bid for 10 years to 15 years joint ventures that aim to revamp ailing industrial firms under an ambitious multi billion dollar privatization plan.

Mr Al Hariri said foreign investor bids would be evaluated as soon as a July 31st 2008 deadline closes for international firms vying for six cement factories, a major petrochemical plant in Basra, an iron and steel facility, pharmaceutical, chemical, textile and other plants.

Mr Al Hariri said that investors would be offered attractive terms such as production sharing percentages that offer them a bigger share than what the government gets to entice them to invest both technology and funds to restore idle capacity. He said that "We want investors to have a quick return on their investments and that is what will make most of them take the risk into coming into the Iraqi market.”

He added that "We have had over 120 international investors from the US, Europe, Asia and the Arab Gulf who have sent expressions of interest and will submit bids soon. After short listing an average of three firms for every plant, I hope to conclude these deals between October and end of December.”

Oil-rich Iraq had invested billions of dollars to set up a massive industrial base that once made it a major regional economic powerhouse. Sanctions, which brought industries from petrochemicals to construction set up under Iraq's former command economy to a standstill, were worsened after the war by electricity shortages and rampant corruption.

It is reported that DP World recently had finalized a JV with the Gulf of Aden Port Corporation that will see DP World operating and developing the container handling facilities in Aden.

DP World said that the agreement includes the lease of both Aden Container Terminal and of nearby Ma'alla Container Terminal and a commitment by the JV to invest around USD 220 million in further developing the port, including building a new 400 meter berth extension to Aden Container Terminal within five years from handover, which is expected by the end of this year.

As per the report, capacity at Aden port is currently around 700,000 TEU and is expected to grow to around 1.5 million TEU by 2012.

The JV plans to further expand capacity as dictated by market demand as part of the second phase development rights.

Mr Sultan Ahmad Bin Sulayem World Chairman of DP World said that the port is strategically located to capture significant growing regional transshipment volumes. In addition, Aden is a key domestic cargo gateway for Yemen, and has been experiencing average annual growth in domestic throughput of around 18 % over the past seven years. We believe Yemen will benefit significantly from efficient port and logistics infrastructure and we look forward to working with our new partners into the future.

Mr Abdul Karim Esmail Al Arhabi deputy prime minister for economic affairs and minister of planning and international co operation said that “We welcome this important agreement and are pleased that the Port of Aden has established a long term relationship with DP World. We are committed to the development of Yemen and believe DP World will be a partner in helping us realize that ambition.”

Dubai Maritime City Authority announced that it has recently signed a memorandum of understanding with Confitarma, the Italian Ship owners' Association.

The agreement calls for synergic cooperation between the two parties to promote the growth of the maritime industry in Dubai and Italy.

Under the MoU, the two parties will jointly facilitate the exchange of ideas, know how and policies that promote mutual growth and help in consolidating the global maritime industry. The parties will likewise explore new forms of cooperation in areas that include advanced services for the shipping industry, while collaborating in the development of new investments for the two parties.

Mr John Ewing CCO of Dubai Maritime City Authority said that “Dubai Maritime City Authority is pleased to sign this agreement with Confitarma, an organization that we value as a critical ally in our pursuit of global growth and excellence. This partnership delivers a strategic gain for Dubai as our Italian counterparts have a very dynamic shipping industry, which serves as a critical link to European markets. Moreover, this will be another opportunity to showcase the unprecedented development concept and the state of the art facilities within Dubai Maritime City.”

Mr Ewing added that 'We are likewise delighted with the enthusiastic response of Confitarma to this initiative. The Italians have been greatly impressed with the highly innovative concept of Dubai Maritime City, which has been designed to provide all the requirements of the international maritime industry, including a full range of industrial, commercial, residential and leisure facilities. Dubai Maritime City's fully integrated development concept has been a key factor in the Italians' strong interest in this groundbreaking agreement.”

It is reported that tenders will be issued in mid July for the first of three main contracts to build the USD 6 billion high speed rail link between the holy cities of Mecca and Medina.

The Saudi Railways Organization is preparing to issue requests for proposals for the civil works contract to the six international consortiums bidding for the Haramain high speed rail project, previously known as the Mecca-Medina rail link. Saudi Arabia decided earlier this year to issue the contracts on a public procurement basis rather than use the original build operate transfer approach.

This first package will be followed by a contract to build stations along the 445 kilometer long route and a third package to build rolling stock, track, communications and signaling systems and carry out operations and maintenance work.

Mr Abdulaziz al-Hokail president of Saudi Railways Organization said that "We want all three RFPs out within six months, and to move the process along rapidly because the rolling stock alone will take three years to build.”

Mr Al-Hokail said that "We decided using government finance would speed up the whole process. We told the six consortiums to stay together and we would start the bidding soon. The final draft of the first tender is being finalized now."

He added that "We have a timetable for all three packages. As soon as the first is out, we will begin preparing the RFPs for the stations."

Mr Al-Hokail said that "Once we have a winning bidder, the SRO will begin to be phased out and all employees will transfer to the new company, which will oversee new projects and ensure there is no unfair competition.”

One official at a lead company in one of the six consortiums says his group is preparing to bid for all three contracts said that "We have been told to expect the first tender in a few days and we want to win all three contracts. The change of structure to the bidding has not changed that."

It is reported that Japanese mills have just completed negotiations with UAE for third quarter HGI export price which will be set to USD 1,200 per tonne to USD 1,400 per tonne FOB.

It is said that HGI materials imported to UAE are mostly from China. South Korea's HGI and PPGI hardly can be found in Middle East, because they prefer to sell it to Europe for higher price at around USD 1,300 per tonne.

China tends to eagerly promote its HGI and PPGI to Europe and Latin America markets since the Chinese domestic prices are not high. Some mills are boosting their export to gain higher profits.

(Sourced from YIEH.com)

Bloomberg reported that Leighton Holdings Limited, Australia's largest construction company, said that its Middle East venture won an AED 2.25 billion order to build five tower blocks in Abu Dhabi.

Al Habtoor Leighton Group in a statement to the Australian stock exchange said that it will build the 17 storey blocks, which will include a four star, 385 room business hotel, offices, serviced and residential apartments, for the Al Hamid Group.

It said that work on the Al Bustan complex is expected to be completed by October 2010. The order comes less than two weeks after Leighton won a bid to build two apartment towers in Dubai in a contract valued at EUR 128 million.

The Al Habtoor Leighton Group was established in September 2007 following the merger of Al Habtoor Engineering with the Persian Gulf operations of Leighton International.

Tehran Times reported quoted Mr Gholamhossein Nozari the petroleum minister of Iran as saying that a new oil field has been discovered in the North of Andimeshk in the southwest Khuzestan province.

Mr Nozari explained that the newly found oil field’s in situ reserve is about 1,100,000 barrels with a 33 API degree of purity which is a fine degree for crude oil.

The minister expressed hope that the petroleum ministry will extract 233 million barrels from this oil field.

Nakheel, one of the world’s largest and most innovative real estate developers, has revealed the latest progress at its most recently launched coastal development in Dubai, which includes the completion of stage one of land sales and a major contract award.

According to the report, revealed as a project in January this year, the redevelopment of Port Rashid has been named Mina Rashid. The redevelopment will build on the culture and heritage of the original port and will be a tribute to the memory of His Highness Sheikh Rashid bin Saeed Al Maktoum, the father of modern day Dubai.

As per the report, Nakheel has also announced a major contract win at Mina Rashid awarded to JV, Dredging International Boskalis Westminster Middle East. The contract, worth AED 2.2 billion will include a sizeable amount of land reclamation including the construction of a breakwater and shore protection.

The report said that a total of approximately 86 million meters cubed of sand will be dredged reclaiming 540 hectares of new land. Work will start immediately and will be completed within a period of two and a half years.

It said that developer has also revealed that the first stage of land sales at Mina Rashid has been completed. Over twenty plots have been sold to local, regional and international developers and will be handed over at the end of this year.

The report further added that Nakheel recently invited a number of developers to look at its redevelopment plans for Port Rashid and available plots were sold out in a matter of weeks.

China Knowledge reported that China Guangdong Overseas Construction Group Company Limited, a state owned construction enterprise, has bagged a massive construction contract worth USD 612 million from Saudi Arabia's King Khalid University.

According to the report, the project covers construction of 16 buildings and their annexes having a covered area of about 550,000 square meters. As a part of the university's expansion program, this construction work is to be completed in 36 months.

Dr Abdullah al Rashid president of King Khalid University said that after a stick bidding process that Guangdong Overseas Construction Group has been chosen to fulfill the task. He was confident that the project would be completed successfully with joint efforts from both sides.

The report added Mr Ma Ruixin China Guangdong Overseas Construction Group Company as saying that the Overseas Group Company, with a staff of about 23,380, including more than 2,000 technical and management professionals in engineering and financial functions, will make full use of its abilities and advantages to complete the task within the committed period and hopes to boost economic cooperation between the two countries.

Reuters reported that one of China's biggest steel makers, Shougang, has announced it will slash production at its Beijing plant, bowing to pressure to help clean the city's grimy skies for the Olympic Games.

Shougang Iron and Steel Group in a statement said that over the weekend that it will limit production during the 2008 Olympic Games period, reducing as far as possible pollution emissions during the Games period.

Confirming earlier statements, the Group said that in the third quarter output of iron, steel and steel products at its Beijing plant will shrink by 50% YoY compared with the same period last year.

Shougang was originally due to end all operations at its mill in the west of the city before the Olympics, but now plans to fully close that plant by the end of 2010. City officials told Shougang to restrict production to 200,000 tonnes per month over the Games period, a cut that will reduce its emissions by 70%.

But the Shougang announcement did not say when it will begin the production cuts, but the Beijing government issued rules in April ordering industrial firms such as Shougang Group to reduce or stop production from July 20th 2008.

As part of the Games anti pollution drive, hundreds of factories in provinces surrounding Beijing will also face production cuts or freezes over coming weeks.

It is reported that the Shanghai Futures Exchange is likely to re launch steel futures contracts on wire rod and rebar in September or October after being held off for eight years.

Market insiders said "It is not surprising to re launch the steel futures in September or October since SHFE has been well prepared for this during last eight years. And East China, the major distributing centre of steel products in China, is quite suitable for the contract.”

Market analysts explain that the increasingly volatile steel prices have prompted steel mills to reduce exposure to the market risk with steel futures, that's the root reason for the shift of their attitudes towards the steel futures.

Mr Luo Bingsheng vice secretary general of the China Iron & Steel Association said regarding steel futures at a forum held by the Shanghai Futures Exchange last May that "It seems that it's a long-term trend to develop steel futures."

As per report, Shanghai Futures Exchange has already completed designing of wire rod and rebars futures contracts as well as the constitution of their transaction and risk control measures.

The Exchange has applied for re launching the steel futures contracts on 6.5mm wire rod and rebar in 2000, but the proposal has been shelved for eight years, partly due to the strong resistance from domestic leading mills.

It is reported that recently with the production of first batch of round steel, Yiyang Steel Pipe Company formally put into production.

Hongze County Yiyang Steel Pipe Company is a joint venture is invested by Zhangjiagang City Yiyang Steel Pipe Company and Malaysia Wanchengli Industrial Company, the new company covers an area of 72 acres, and the registered capital is USD 6 million.

Its designed annual output is 30,000 tonnes, and the main products are seamless steel pipe, alloy steel pipe, and will be exported to South Korea, the United States and Malaysia etc 10 countries.

According to the latest statistics, Qingdao port has completed 150.16 million tonnes throughput in the first half year up by 14.1% YoY.

The officials from Water Transportation Department said that since this year, the completion of domestic coastal ports is increasing, Qingdao port this year increased 24 container routes, the production of the port maintains rapid growth.

Mr Chang Dechuan president of Qingdao port Group said that Qingdao port takes the resources-saving development way, adopts advanced technology, promotes cleaning production. Qingdao port is the domestic second largest port.

XFN-Asia reported that Chongqing Iron & Steel Co Ltd expects its net profits for H1 ended June to increase by more than 60% YoY based on Chinese accounting standards on the back of significant growth in both revenue and profit from its principal operations.

Chongqing Iron & Steel Co Ltd attributed the healthy growth to the increasing average prices of its major products, expanded production volume and effective internal cost controls.

According to the report, during the first half of last year, the company made a net profit of CNY 262.74 million under international accounting standards while earnings per share were CNY 0.163.

Under Chinese accounting standards, Chongqing Iron & Steel made a net profit of CNY 263.93 million in the first half last year, while earnings per share were CNY 0.16.

Reuters reported that South Korea's top auto maker Hyundai Motor Co had agreed to supply parts for buses to Xiamen Golden Dragon Bus Co Ltd a China's bus maker.

According the report, the deal comes as Hyundai is in talks with Guangzhou Automobile Group Co to set up a commercial vehicle joint venture in the world's second-largest car market.

Hyundai in a statement said that the world's No 5 auto maker along with its affiliate Kia Motors Corp, would sell parts for about 17,100 buses to Xiamen Golden Dragon Bus for five years from this month.

Liberation Daily reported that Shanghai Jiaotong University signed a new strategic cooperation agreement with Baosteel Group, expanding the collaborative scale from with Baoshan Iron & Steel Co Limited listed unit of the group.

According to the report, the teamwork between the university and the enterprise is moving toward a higher level. The newly signed pact says Baosteel's advanced technician and managerial talents will continue to play the role of part time tutors of the post graduate of Jiaotong University, while Baosteel Group will for the first time appoint professor of the university a pluralistic post in the enterprise. Meanwhile, the two sides would deepen cooperation mode and expand the teamwork to more technical yields, borrowing ideas from the existent collaboration in auto steel between the university and Baoshan Iron & Steel Co Ltd.

ABS-CBN News Channel reported that China owned contractor working on the USD 503 million Northrail project in Philippines has threatened to pull out of the project over the nonpayment of cost overruns worth USD 299 million and other breaches of the original agreement.

As per ABS-CBN News Channel, the China National Machinery and Equipment Corp Group sent a demand letter on June 3rd to North Luzon Railways Corporation saying that it would terminate the contract within 30 days to 60 days if Northrail fails to take steps to comply with the terms of the contract and remedy several breaches of the original agreement.

Among the breaches of contract mentioned in the June 3 letter obtained by ANC were
1. Failure to provide contractor access to the site and the necessary right of way;
2. Failure to remove all residents living along the right of way and to dismantle and remove all obstacles including trees, shelter and building facilities;
3. Failure to provide land to contractor for temporary use;
4. Failure to approve the design document and technical specifications;
5. Failure to make payments to the contractor;
6. Failure to provide the diagram of existing underground networks pertaining to the electricity, gas, water and sewerage facilities in the working area;
7. Failure to compensate the contractor for extra costs;
8. Failure to adjust the contract price.

The Northrail project started in 2004 after the Arroyo administration entered into a deal with the Chinese government to build a railway connecting Manila to Northern Luzon. Phase 1 of the Northrail project would begin in Caloocan and stretch out to Clark, Pampanga.

The USD 503 million project cost is to be funded by the Chinese government through a loan, with the provision that the project would be handled by a Chinese contractor.

China Knowledge reported that China Huaneng Group, parent of Huaneng Power International Co Ltd produced 184.9 billion kilowatt hours of electricity in H1 2008 up by 22.96% YoY.

China Huaneng Group said of the total, electricity output from wind generators amounted to 509 million kWh up by 132.07% YoY. Hydropower plants' output rose 36% YoY from a year earlier to 6.226 billion kWh. It produced 178.174 billion kWh of electricity up by 22.37%.

According to the report, despite soaring prices of coal, the company has maintained smooth operations and its output is growing rapidly. It is expected to maintain normal supply during the forthcoming Beijing Olympics.

The Issuance Examination Committee of China Securities Regulatory Commission announced recently that the application of Xinyu Iron & Steel Co Ltd for issuing convertible corporate bond got approved.

According to China Securities Regulatory, the steel maker earlier made a promise that the totally convertible corporate bond it is going to issue will be no more than CNY 2.76 billion and the financed fund will be completely put into the 1500mm sheet project.

Before fully funded, the company will probably use its self-processed fund or finance by borrowing in advance based on the actual progress of the project, and then make a replacement.

It is reported that the new generation of dry oil lubricating equipment which was researched and manufactured by Baosteel and China Metallurgical Wenzhou Engineering Company.

As per reports, the new generation of dry oil lubricating equipment was firstly used at Baosteel Branch, and got remarkable results. It can save CNY 180,000 for the enterprises every year.

At present, in addition to Baosteel Branch, Ningbo Baoxin, Stainless Steel Branch and Meigang etc enterprises all have used the new generation of dry oil lubricating equipment. Baosteel has applied for national patent for the new product, and was accepted.

XFN-Asia reported that Weichai Power Co Ltd plans to issue CNY 900 million worth of 365 day short term debt paper in the interbank bond market on July 21st.

According to a statement carried on the official Chinabond website the yield will be fixed through bookbuilding on that day.

Weichai Power Co Ltd said the proceeds will help purchase steel products and other raw materials needed in production.

China Construction Bank and China Minsheng Banking Corp will be joint underwriters.

It is reported that rebar prices have turned stable since early July 2008. Downstream demand for rebar has come back when plum rain came to an end at the start of July. Then how will rebar market be in the second half of July.

Mr Liang Taigeng GM of Shanghai Hualei Enterprise Co Ltd said that rebar price in Shanghai would remain in fluctuation and tend to rise slightly.

As per report, long heavy rain has exerted adverse effect on construction and it led to drop in rebar demand. But now buyers have come back to market and there has been more demand than last month, especially HRB400 28mm or 32mm rebar. Then why Shanghai price for rebar could see further small rebound in the remaining of July?

1. Demand from construction industry has turn better despite high temperature. High speed railway, subway, and tunnel construction are still in the process and there would be no decrease but increase in demand in this summer.

2. Higher cost are bolstering the further increase in steel price. Chinese steel makers have to raise price to offset the increasing cost and there is almost no room for drop in market prices.

3. High international market price are supporting rebar exports. The great price gap between overseas market level and Chinese ex works prices has led to robust exports and it is in the interests of the booming of domestic market.

4. No pressure of oversupply due to cut and suspension in output by some steel producers in North China. Those steel mills are required to reduce production so as to help improve the quality of air surrounding Bejing where Olympic Games is to be held in early next month. Most of the tonnages they cut are construction steel production.

To sum up, rebar price in Shanghai is going to remain in a dull period but tent to go up slightly in the next two to three weeks.

According to China’s National Development & Reform Commission, steel industry has continued to post robust growth in January to may 2008 bolstered by rising steel prices. The sector has realized a total profit of CNY 142.6 billion in the period up by 50.8% YoY from same time of last year and the growth rate gains 12.2 percentage points from that of January to February.

According to Shanghai Securities News, China's steel output amounts to 216.11 million tonnes in the first five months up by 9.4% YoY or 18.63 million tonnes from the year ago. However, the growth rate dips 10.5 percentage points on YoY comparison. Meanwhile, steel export has dropped considerably as a result of export tax adjustment and strengthening yuan.

The report also reveals that steel exporters are inclined to circumvent the new export tax policy. For example, commercial wired rod/bar and angle/section shipment has fallen 45.9% and 37.9% in the first four months respectively due to the export duty, while those tax-free alloyed bar and section export has soared 170.9% YoY and 240.6% YoY respectively. It's the same case with steel plate export.

Domestic steel price has risen swiftly in the first half, with steel price index up 31.49 points or 25.1% from the year start to 156.86 in late May. The price rally has been underpinned by high growth rate of national overall economy and fixed-assets investment and spiking raw materials prices as well. The benchmark ore price rises 65% to 71% and coke price doubled to CNY 2400 per tonne. Moreover, surging international steel price has also lent support to domestic price. By the end of May, international steel price index jumps to 268, up by 55.5% YoY from same time of last year, 17.1 percentage points higher than domestic price rally.

NDRC said that investment in iron and steel sector has shown sign of rebounding in the first five months. Steel investment has increased 22.4% YoY to CNY 96.55 billion in the review period, gaining 17.5 percentage points from the growth rate of last year.

Steel mills have stepped up efforts in consolidation while leading mills are scrambling to set up Greenfield plants in coastal regions. However, M&A in the sector are mostly restricted within the same province, therefore, the mills would have limited capability to optimize the resource deployment across the country.

(Sourced from MySteel.net)

It is reported that China's top steelmaker Baosteel will purchase 8% stake of Zhanjiang Port Group. Analysts point out this move is to make preparation for the steelmaker's Zhanjiang steel project in transportation.

Mr Fu Yuning chairman of China Merchants Holdings Company Limited said Baosteel has bought 8% of Zhanjiang Port Group. CMHI last year invested CNY 1.6 billion for a 45% stake in the group with the rest 55% going to Zhanjiang State owned Assets Supervision and Administration Commission. He said that Baosteel's move will dilute Zhanjiang Port Authority's share to 52% and CMHI's stake to 40%.

An insider from the port group confirmed the news and released the project is waiting for government approval when approached by reporters yesterday. He also disclosed the two shareholders would jointly transfer 8% share to Baosteel, but he declined to reveal the details.

Baosteel said that it would lead several small shareholders to buy the stake and would gain 8% itself. Industry analysts believe Baosteel's move is to ensure smooth transportation for its Zhanjiang project.

It is reported that scrap market ended smooth running recently in Shandong and some steel mills have raised up scrap purchase prices by CNY 80 per tonne to CNY 100 per tonne.

1. Laiwu Steel lifted prices by CNY 80 per tonne, leaving latest prices at CNY 4150 per tonne for No 1 heavy scrap, CNY 4110 per tonne for No 2 heavy scrap and CNY 4068 per tonne for medium scrap.

2. Juneng Special Steel raised up prices by CNY 100 per tonne, pushing latest price to CNY 4010 per tonne for heavy scrap, CNY 3950 per tonne for first grade charging quality scrap.

3. Other mills' prices stay unchanged. And most of them report increasing pressure in stock replenishment.

As per report, the overall scrap price rise in Jiangsu has lent support to the price advance in Shandong. However, local pig iron price appears to be weak at the moment. And Laiwu Steel has lowered pig iron purchase price by CNY 40 per tonne further yesterday to CNY 4790 per tonne.

(Sourced from MySteel.net)

It is reported that the US International Trade Commission has voted unanimously to advance an anti dumping case against steel nails from China.

Commissioners voted 6-0 that US producers have been materially injured by Chinese steel nails sold in the United States at less than fair value, paving the way for the Commerce Department to issue a final anti-dumping duty order.

The petitioners are Davis Wire Corp, Irwindale, Calif; Gerdau Ameristeel Corp, Toronto; Maze Nails, a Peru, Illinois based division of WH Maze Co, Mid Continent Nail Corp, Poplar Bluff, Mo, Treasure Coast Fasteners, Inc, Fort Pierce, Florida and the United Steelworkers union.

Bloomberg reported that Chang Jiang Shipping Group Phoenix Co will order six bulk ships for CNY 1.7 billion on rising use of inland and coastal waters for cargo shipments.

Wuhan, Hubei province based company in a statement to the Shenzhen Stock Exchange said that the 45,000 DWR vessels will be delivered between March 2011 and December 2011. Each ship is expected to make a profit of more than CNY 26 million.

Mr Fu Yuning chairman of shareholder China Merchants Holdings Co said that China wants to move more coal, grain and other goods by sea and river as this is cheaper, less polluting and more reliable than road haulage. Shanghai Port China busiest eventually aims to move 30% of domestic cargo via the Yangtze River.

Reuters reported that Datang International Power Generation Co Ltd generated 62.2529 billion kilowatt hours of power in the first half of 2008 up by 11.08% YoY from a year ago. Total on grid power generation increased 10.96% YoY during the six months period to 58.5987 billion kWh.

Datang said an increase in capacity of its operational generating units had led to the rise in power generation during the period. It said new installed capacity increased by 3,812 megawatts during the first six months of 2008 compared with the year ago period. Given the shutdown of the power generating units at Xia Hua Yuan Power Plant with a capacity of 200 MW, the company's had a net capacity increase of 3,612 MW.

China Daily reported that Wuhan Iron & Steel Group posted a one fifth growth in first half profit on increased sales and cost cutting efforts.

Wuhan said its January to June 2008 profit up by 20.48% YoY to a record CNY 6.05 billion from a year earlier, laying a solid foundation for its target of earning CNY 10 billion for the whole of the year.

Wugang's sales revenue reached CNY 63.18 billion yuan in the first six months up by 89.78% YoY compared to the same period last year. Meanwhile, its crude steel production increased by 54.93% to 11.26 million tonnes. The group had earlier said that it expected to produce 22 million tonnes in 2008.

Wugang said it is also doing its utmost to cut costs mainly by using more home-produced iron ore to fend off price hikes of overseas iron ore as well as other raw materials.

Novinite reported that the management of Bulgaria's steel plant Kremikovtzi decided Monday that it is going to fulfill the contract with the Ukrainian company Vorskla Steel, which was signed on Thursday night after 3000 workers blocked the administration in its building.

Mr Lyudmil Pavlov the leader of the Metallurgy syndicate announced on Monday that the issues around the new contract will be settled through a special annex. He said that “Vorskla would provide money for the workers' salaries for May within up to three days and by the end of the month for the delayed June salaries.”

With respect to Global Steel's appeal that the contract had been signed under pressure, Mr Pavlov said that the only harm the workers had done to the management was to increase its working time a little bit.

The promise of the Ukrainian company to pay out the delayed workers' salaries and to provide raw materials for the manufacturing of the plant were among the main factors, which moved the workers to pressure the management to renounce its contract with ArcelorMittal, and to make a new one with Vorskla Steel.

Reuters reported that ArcelorMittal's steel unit in Kazakhstan has reduced production capacity due to disruptions in electricity supplies.

ArcelorMittal Temirtau said that it had to stop two out of three existing blast furnaces following disruptions on Saturday. It did not say by how much its production fell as a result.

ArcelorMittal's said "The most critical situation occurred in the blast furnace department. Over the next few days the combine will work in a limited regime."

Mr Nikolai Kubrakov spokesman of the company's Kazakhstan said ArcelorMittal Temirtau is likely to dip into its stocks to ensure steady exports. He said that "It is difficult to say how this will impact exports. It's still unclear. Reserves and stocks will be used for now."

Bloomberg reported that OAO Gazprom's Nord Stream pipeline delayed the first delivery of natural gas to Germany as countries along the project's route made additional environmental demands.

Mr Paul Corcoran project's financial director in an interview in Moscow recently said that the first gas will be delivered in the fourth quarter of 2011, later than previously foreseen. He said that “First gas in 2011 is absolutely our view.''

He said that the project's schedule had to be changed after Finland & Denmark requested adjustments to Nord Stream's tentative pipeline route earlier this year.”

He added that Nord Stream expects to fix a final route by September and submit an environmental impact assessment by the end of 2008. Nord Stream originally planned to publish a final assessment in April 2008.

Mr Corcoran said that “Once permits are received from the 5 countries touching the pipeline's route namely Russia, Finland, Sweden, Denmark & Germany by the end of 2009, pipe laying can begin the following year. Two deep water rigs have already been contracted to speed up the process and meet the deadline for first deliveries in 2011.”

He said that “Chances are extremely high that costs will be kept within the revised budget, since most of the contracts have already been signed. A steel contract for the project's second line to be completed in 2012 is expected in the second half of 2009. Fluctuations in the steel price have already been accounted for in the budget.” He added that shareholders will provide 30% of the project's costs. That amount will reach 1.3 billion euros by the 2008.

Gazprom owns 51% of Nord Stream, with Wintershall Holding AG &E.ON Ruhrgas AG each holding 20% and Nederlandse Gasunie NV 9%. The other 70% may come from as many 30 banks, including export credit agencies of Italy & Germany, and possibly Russia's Vneshecnombank. Dresdner Kleinwort Group Limited., Societe Generale & ABN Amro Holding NV are advising.

Ukrinform reported that the State Statistics Committee of Ukraine increased its estimate for GDP growth from 6% YoY to 6.5% YoY in January to March 2008.

In April 2008, the International Monetary Fund improved forecast for Ukraine's GDP growth from 5.4% to 5.6% and worsened inflation forecast from 10.6% to 17.1%.

Interfax cited Mr Vitaly Nesis general director of Polymetal's EBITDA as saying that Polymetal, Russia's leading silver producer, could boost its EBITDA to USD 250 million in 2008

He said that "I can say that EBITDA will come to USD 250 million, but I understand that should be very careful with forecasts. This is the best prediction.” He added that a lower EBITDA forecast was put at USD 200 million for 2008.”

It was earlier reported that Polymetal's EBITDA shrank to USD 71.4 million in 2007 from USD 143.1 million in 2006. The company closed 2007 with a net loss of USD 22.8 million against net profit of USD 61.7 million in 2006. The company's sales revenue came to USD 308.7 million in 2007 down from USD 315.6 million in the previous year.

According to Mr Boris Paton member of the National Academy of Ukraine, the use of worn out and obsolete Gas Turbine Engines bring about the degradation of Ukraine's Gas Transport System. It also leads to excessive gas losses because of its low efficiency.

He said that Ukraine's GTS needs new-generation, high efficiency and durable GTEs to solve problems regarding the ecology and saving gas, as well as for the uninterrupted supply of gas in Ukraine and Europe.

Millennium Capital analyst said that “The biggest GTE producers in Ukraine are SMASH and MSICH. They will receive the lion's share of contracts when there is a GTS modernization, which at the moment is the subject of much talk but little action.”

(Sourced from Millennium capital)

It is reported that Ukraine Cabinet of Ministers suspended the upcoming USD 500 million Eurobond issue.

According to the Cabinet, this was because there were sufficient funds in the State Budget account to cover planned government spending. It is worth noting that the State Budget 2008 foresees external borrowing of USD 1.7 billion which has not started yet.

According to Millennium capital analyst, “We consider the news to be positive, as additional government borrowing might lead to a new inflation impulse related to the extra money influx in the form of government spending. At the same time the Eurobond issue delay was related to the downgrading of Ukraine’s Sovereign Rating by S&P and the high EMBI spread of the government Eurobonds. Still, we expect that the government will issue the Eurobonds by the end of 2008, as soon as both inflation and the EMBI spread are lowered.”

(Sourced from Millennium capital)

RIA Novosti reported that Gazprom Neft, the oil producing arm of Russian energy giant Gazprom, has closed a deal to raise a USD 1 billion syndicated loan.

Gazprom Neft said that “It has signed a loan syndication agreement with syndicate banks on July 4th 2007. The loan facility is intended to be used for general corporate purpose and the refinancing of existing debts.

It said "Despite the difficult market conditions, the loan facility was oversubscribed and closed within a short timeframe."

Gazprom Neft said the facility comes in two tranches with three and five year maturities, respectively. It said the loan was arranged by Banco Bilbao Vizcaya Argentaria S.A, the Bank of Tokyo-Mitsubishi UFJ, Ltd, Barclays Capital, Sumitomo Mitsui Banking Corporation and WestLB AG, London branch.

Mr Alexander Dyukov CEO of Gazprom Neft earlier said the company planned to raise loans worth a total of USD 2 billion in 2008. The company plans to raise another USD 1billion loan by the end of the year.

According to the State Statistics Committee, industrial output increased by 7.5% YoY in 6 months 2008. However, the monthly growth of industrial output was down by 2.5% MoM in June.

The largest contribution to industrial output in 6 months 2008 was made by mechanical engineering which grew by 29.3% YoY mainly due to the rise in automobile manufacturing. Metallurgy with a 24.7% share in 2007 increased by 3.3% YoY in 6 months 2008 slightly accelerating its growth by 3.1% YoY in 5 month 2008. Food processing maintained a high, still slightly lower than in 5 months 2008, annual growth of 5.5% YoY. Coke and refined petroleum reduced their decrease from 13.5% YoY to 12.1%YoY in 6 months 2008.

June’s deceleration of industrial output growth was mainly related to the slowdown in mechanical engineering, related to the increase in both metal and oil prices on world markets. The reduction in utilities and the chemical industry was highly affected by the growth in the price of gas. At the same time high metal prices on the world market stimulated growth in metallurgy. We expect industrial output to maintain similar growth rates in July, resulting in 8% YoY growth in 2008.

(Sourced from Millennium capital)

MMK announced its operational Trading update and H1 2008 results under Russian Accounting Standards

Key Operational Highlights

1. Steel output in H1 2008 increased by 8%YoY to 7,015 million tonnes as compared to H1 2007
2. Commercial steel products output increased by 8% to 6,434 million tonnes
3. Significant growth in prices for MMK’s entire product line
4. International pricing environment and strong domestic demand lead us to expect same price levels for Q3 2008

Mr Victor Rashnikov chairman of MMK’s board of directors said that “We are satisfied with our achievements for the first half of 2008. We continue to consistently strengthen our presence in the Russian market. It is the markets of Russia and CIS with which we connect our ambitious plans, reflected in our large-scale investment program. The current level of steel prices within Russia and globally confirms optimistic expectations for the year.”

He added that “We are continuing to follow our strategy of securing raw material supplies through new and ongoing projects, including the development of our own iron ore base and the Prioskol iron ore deposit and expansion of our partnership with Belon.”

Mechel OAO a leading Russian integrated minin and metals group announced financial results for the first quarter ended March 31st 2008.

Highlights

1. Revenues increased 64.1% YoY to USD 2.3 billion
2. Operating income increased 112.3% YoY to USD 0.64 billion
3. Net income increased 162.2% YoY to USD 0.55 billion or USD 1.20 per ADR /diluted share

(In USD billion)

Mr Igor Zyuzin CEO of Mechel said that “Our final results for the 2008 first quarter came in as we expected, and reflect strong operational and financial performance. Conditions in the markets we serve continue to be favorable and are driven by a combination of growth factors. We are very pleased to have reported record revenue and we remain focused on the successful execution of our operating strategy.”

TMK one of the world’s top three oil and gas pipe producers announces that its TMK-GF premium casing connection series was successfully tested for horizontal oil and gas well applications.

According to the release, TMK Premium Service a division of TMK specializing in the production and supply of premium connections to the oil and gas sector, tested the high performance GF casing connection series at Novatek’s Sterkhovoye field in the Yamal-Nenets Autonomous Region.

The released added that, produced at TMK’s TAGMET R&D centre, the TMK -GF connections encountered pressures of 190 atmospheres during casing operations in the well and retained excellent gas tightness under high bending loads.

TMK-GF is a Premium connection with extra gas tightness properties used for the construction and operation of highly-deviated and horizontal wells and especially designed for application in corrosive environments. As demonstrated during testing, its metal-to-metal seal offered excellent gas tightness, even under the most severe stresses, and seal integrity was maintained even after numerous make ups and break outs.

In addition to the TMK-GF series, TMK-Premium Services produces TMK-PF, TMK-FMC, TMK-TTL and TMK-CS Premium casing connections and TMK-FMT Premium tubing connections.

Ekonomicheskie Izvestia citing Mr Gennadiy Gazin CEO of EastOne as saying that EastOne LLC postponed an initial public offering of shares in Interpipe.

Mr Gazin said that the share sale by Ukraine's biggest producer of steel pipes used by oil and gas companies was delayed due to market volatility. There is no need for us to rush.

He added that the company is going to decide on the IPO after evaluating the market in September.

ArcelorMittal and Primex of Germany have reached an agreement whereby ArcelorMittal Stainless International is acquiring the 35% stake in Uginox Sanayi ve Ticaret Limited Sirketi which was owned by Primex.

Uginox was formed in 1997 as a 65:35 joint venture between Arcelor and Primex. Uginox operates a coil processing and service centre in Gebze, close to Istanbul. Most of its business is dedicated to servicing the fast growing automotive and white goods markets. In 2007, it processed about 38,000 tonnes of stainless steel and had revenues of about USD 102 million.

ArcelorMittal has also decided to gradually double, over the coming years, the size of its stainless service operations in Turkey, which will be renamed ArcelorMittal Istanbul Stainless Service Turkey.

Mr Jean-Yves Gilet CEO of ArcelorMittal Stainless said "This transaction consolidates our positions on a fast growing market and allows us to follow our key customers from the appliance and automotive sectors in their own development.”

China’s Lianzhong Stainless Steel has decided to have further cut on its 201 grade stainless production in July to sustain the current weak market.

Lianzhong said tight power supplies will cause the output in July to be lessened, and the company may raise its ex work prices in August as production costs stay high.

Lisco's list price for 201 2B CRC stainless base was being quoted at CNY 16,700 per tonne.

Allegheny Technologies Incorporated expects second quarter 2008 earnings to be in the range of USD 1.65 to USD 1.67 per share, including a USD 0.11 per share one time net tax benefit.

ATI had previously said that it expected second quarter earnings to be somewhat higher than the $1.40 per share achieved in the first quarter 2008.

Mr L Patrick Hassey chairman, president & CEO of said that "ATI is benefiting from the ongoing transformation of the Company and our product, market, and geographic diversification.”

He said that “In addition, our enterprise risk management programs are reducing the impact of volatile input costs on our earnings results. Our transformation and diversification strategies are designed to position ATI for growth and improved earnings, as well as providing stability of earnings and cash flows through market cycles."”

MB's South African Ferro Alloys Conference has revealed that China's stainless demand is viewed as the key to the recovery of the global stainless market following the end of the summer vacation period.

Falling nickel price has taken a toll on 304 since the first quarter, but 430 series, riding on record-highs triggered by South Africa's electricity shortage, has suffered a shortfall of Ferro chrome by 15 to 20% since this February. The deficit for Ferro-chrome is estimated to fall short by 250,000 tons this year.

If the global stainless market picks up after the summer vacation, Ferrochrome will be heading to new highs, when Chinese interests resume purchases in Q4.

(Sourced from YIEH.com)

Import price of chrome at Tianjin port is under

(Price in CNY per MTU)

(Sourced from Mysteel.net)

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on July 14th 2008

The change is with respect to prices posted on July 7th 2008

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

It is reported that as coke export peak may arise around this month, industry believes the government may again raise coke export duty. Industry analysts in Shanxi forecasted on July 11th 2008 that China is likely to pull up coke export duty by over 5%.

As per report, China coke exports in May gained 24% MoM to 1.66 million tonnes from the 1.34 million tonnes in April recording the highest monthly export volume since 2007.

Earlier reports once said quoting some statistics that EXW price for first grade metallurgical coke stands at CNY 3000 per tonne recently. Average FOB price for coke exports once rushed highest to USD 690 per tonne equaling CNY 4700 per tonne. But according to insiders in Shanxi, the gap between prices at home and abroad is narrowing.

Many officials from coke enterprises have confirmed China now eyes a coke export peak. This may spur another export duty hike since China sticks to curbing excessive exports of resource intensive products such as coke.

Coke export duty is 25% at the moment and the 5% increase will push up total duty to 30%.

Bloomberg reported that thermal coal prices at Australia's Newcastle port fell for the first time 12 weeks, dropping 3.5% from a record.

According to the globalCOAL NEWC Index, the weekly index for power station coal prices at the New South Wales port declined by USD 6.79 to UUD 188 a tonne in the week ended July 11th 2008.

Thermal coal prices from the port have more than doubled this year on increased demand from Asian electricity producers and railroad and port bottlenecks in Australia and South Africa curb supplies. Mining companies including Xstrata Plc, the world's largest exporter, won a 125% increase in annual contract prices in the year that started April 1st to USD 125 a tonne.

XFN Asia reported that China coal producers are concerned after a report that the coal export quota for the second half of this year will be cut to ease domestic supply tightness. The second half quota is due to be released this month.

The China Times quoted an unidentified official from the National Development and Reform Commission as saying that the coal export quota for the second half will definitely be cut.

According to the report, the NDRC, the central government's economic planning agency, released its first-half export quota in March, accounting for 60% of the full year quota.

According to official statistics, China's coal exports in June surged by 83.5% YoY to 6.99 million tonnes, while export volume in the first six months was up by 10.2% YoY at 25.49 million tonnes.

FT Alphaville reported that Kazakhmys, the FTSE 100 mining company, is in merger discussions with Metalloinvest, the Russian metals conglomerate controlled by billionaire Mr Alisher Usmanov.

The FT said the deal is being structured as a reverse takeover and should see Mr Usmanov emerge with a controlling stake in the enlarged business, which would be re listed on the London Stock Exchange.

The report said the merged company is expected to have a market value of around USD 50 billion, with Lehman Brothers providing the primary corporate finance advice.

FT said Metalloinvest, one of Russia's fastest growing companies, has three main businesses: iron ore, steel and scrap metal. Mr Usmanov had been planning to float up to 25% of the company in Moscow and London in an initial public offering this autumn.

Cleveland Cliffs Inc announced that it has acquired United Mining Co Ltd's 30% interest in United Taconite an iron ore mining and palletizing operation located at Eveleth in Minnesota. Cliffs previously owned a 70% interest in the joint venture and after completing the purchase now has 100% ownership.

Consideration will be a mix of cash, stock and iron ore pellets. The total includes USD 100 million in cash and 1,529,619 Cleveland Cliffs common shares. In addition, the transaction includes a provision to supply 1.2 million tons of iron ore pellets over the next five quarters at no cost.

Mr Joseph Carrabba chairman, president & CEO of Cleveland said that "Strategically, the consolidation of the UTAC minority interest strengthens our core North American Iron Ore business, and together with our Northshore property, gives Cliffs two wholly-owned iron ore assets in North America. Moreover, as Cliffs currently manages the operation, there is no integration risk associated with the transaction."

The acquisition does not require regulatory approval and has an effective close date of June 30th 2008. United Taconite is expected to produce 5.2 million tons in 2008 and at December 31st 2007 had proven reserves of 133 million tons. As a result of this transaction, as well as the recently announced expansion project at the Company's Michigan mines, Cliffs' total North American Iron Ore equity pellet production will increase to 23 million tons in 2008 and over 24 million tons in 2009.

BS reported that the non renewal of the mining lease of the Horomoto mines in Keonjhar district in favour of the Steel Authority of India Limited is likely to affect the INR 10,000 crore expansion plan of the Rourkela Steel Plant.

According to the report, the lease renewal application of the company, which was stuck in the administrative tangle of the Orissa government for a long time, has reportedly been rejected by the authorities.

According to SAIL sources, the increase of RSP capacity from the present 2.5 million tonnes to 4.5 million tonnes hinges on the opening of more iron ore blocks to meet the raw material demands of the expansion project.

Horomoto mine is crucial for the company as the development of the Sail's other mine Kiriburu Meghahatuburu is linked to the opening of the mining at Horomoto. Horomoto is contiguous with the SAIL’s already existing Kiriburu lease which has quite a good amount of iron ore deposit.

The report further added that apart from Horomoto, the renewal of other leases like Barsua Taldihi Kalta ML 130 and Barsua ML 162 are also pending with the Orissa government raising the fears of short supply of ore for the expanded capacity of RSP.

AAP cited BC Iron Ltd as saying that there have been no talks between itself and major shareholder Consolidated Minerals Ltd about a takeover of BC Iron.

BC Iron in a statement said that "The directors wish to advise that notwithstanding recent press articles alluding to possible take over talks between BC Iron and its major shareholder, Consolidated Minerals Ltd, there have been no such discussions.”

It added that "Consolidated Minerals remains entirely supportive of BC Iron."

BC Iron said that Consolidated Minerals was particularly supportive of its decision to commit to a feasibility study on the Outcamp and Coongan Well deposits within BC Iron's Nullagine iron ore project.

BC Iron said that the decision to commit to the feasibility study follows the completion of a scoping study showing a robust financial model and strong cash flow for the two deposits.

Bisnis Indonesia reported that Indonesia Indonesia's fifth largest coal producer PT Berau Coal may sell a stake of between 20% and 30% in an initial share sale.

Bisnis Indonesia citing Mr Bob Kamandanu president director reported that the company may hold the initial public offering at the end of this year or next year.

Mr Kamandanu was cited as saying that Berau Coal expects output to rise to 17.5 million tonnes in 2009 from an estimated 15 million tonnes this year.

But the report didn't give the estimated amount the company plans to raise from the share sale, or how the proceeds will be used.

Anglo American has noted the investigation in Brazil in relation to Mr Eike Batista and MMX Amapá Mineração Ltda, part of the EBX group of companies.

It said that “As previously announced, Anglo American is party to a stock purchase agreement with Eike Batista and other selling shareholders, as well as other related agreements with MMX Mineração e Metálicos SA and other parties related to the EBX group. Pursuant to these agreements, Anglo American agreed to purchase a majority interest in IronX Mineração SA, the company that holds the 51% interest in the Minas Rio iron ore project and a 70% shareholding in the Amapá iron ore system, upon satisfaction of certain conditions.”

The release added that “Many of the conditions to completion have already been fulfilled or waived. As the transaction moves toward completion and as part of its pre completion exercises, Anglo American will be assessing information concerning the investigation, which the selling shareholders have agreed to provide on an expedited basis. Anglo American and the selling shareholders will each make decisions in respect of the remaining conditions and their respective rights and obligations under the agreements as this information becomes available.”

Ms Cynthia Carroll CEO of Anglo American said that “I have great confidence in our Brazilian partners, who have made impressive progress in developing the Minas-Rio and Amapá iron ore projects. MMX has promised full cooperation with us and we will review all the information to be provided by MMX as quickly as possible. I am hopeful that these issues will be resolved satisfactorily.”

Anglo American currently owns a 49% interest in the MMX Minas Rio mine and pipeline project and in the LLX Minas-Rio port project. MMX has informed Anglo American that neither of these projects is a subject of the investigation.

It is reported that Magnetic Resources NL is expanding its iron ore search in the southern Yilgarn region of Western Australia. This follows Magnetic's recent tenement acquisitions in the southern wheat belt region of WA.

Magnetic Resources said that these additional tenements cover pronounced aeromagnetic anomalies which have potential for iron ore occurrences. It said that the recent acquisitions bring Magnetic’s iron ore prospective tenement holdings to 1160 square kilometer located near existing railway infrastructure with connections to ports.

Metamorphosed iron formations are known to occur on some of the tenements and in other cases the magnetic anomalies are obscured by shallow cover and have not been explored for iron ore.

Reuters reported that Australian mining and utilities contractor Ausdrill Ltd accused its hostile suitor, Macmahon Holdings Ltd on Monday of making a key mistake in its AUD 413 million bid for Ausdrill.

Ausdrill in a statement to the Australian Stock Exchange said that Macmahon had failed to meet the timeframe for applying to have its bid shares listed. It said that "Macmahon has indicated an intention to apply to court for orders rectifying their omission.”

Ausdrill said that "Unless such orders are obtained, Macmahon's offer will not be capable of becoming unconditional and Macmahon will therefore be unable to acquire any Ausdrill shares under its bid."

Ausdrill left open the option of contesting such a legal move by Macmahon, saying it was taking legal advice.

Macmahon reserved any detailed comment, but Mr Gareth Widger a spokesman said that "We don't consider it to be a major issue and we are likely to respond in due course, probably tomorrow."

Ausdrill's board has already rejected the offer of 1.45 Macmahon shares for each Ausdrill share as inadequate. Ausdrill said that shareholders should reject the bid and instead keep faith with its strategy of pushing deeper into Africa's mining sector, which made up almost a third of its AUD 187.2 million in first half revenue.

According to an official source, Rampia Coal Mine and Energy Private Limited will soon commence drilling operations in Rampia coal block at IB Valley in Sundargarh district of Orissa.

The report said that the company has invited expression of interest from parties for carrying out drilling of about 15 to 20 holes per square kilometer in the mine. The scope of work also includes analyzing the cores, preparation of geological report and drawing out mining plan and obtaining approval of the plan from the ministry of coal.

The report added that Rampia is a JV company of ArcelorMittal India, GMR Energy, Lanco Group, Navabharat Power, Reliance Energy and Sterlite Energy. The JV will carry out mining in Rampia coal block with an area of 12 kilometer.

According to Customs of Guangzhou, in H1 2008 the imported volume of iron ore in China's Guangdong province gained by 17.5% YoY to 5.24 million tonnes which is valued at USD 870 million and the price surged by 88.8% to USD 167 per tonne on average.

According to the Customs, it is the international iron ore talk and rocketing freight rate that combine to cause the increases in import volume and prices of iron ore in Guangdong province in the first half of 2008.

Baosteel's first acceptance of 65% iron ore price rise earlier this year with Vale and then the settlement with Australian miners of 96.5 hike on lump lead to worldwide upsurge of this resource. Meanwhile, freight rate from Brazil to Tianjin port surges to current USD 80 per tonne from USD 20 per tonne in 2006, and the case is true with ports in Guangdong province. The rise in freight rate directly triggers cost increase of imported resource.

Bangladesh’s The New Nation reported that the draft coal policy with options for open pit and underground mining is being sent this week to the cabinet division for government approval.

Dr M Tamim chief advisor's special assistant for Power and Energy Ministry said that "We have completed all necessary procedures. Now the draft will be sent to the Cabinet Division anytime this week for approval.” He added that inter ministerial meeting discussing the draft policy had given the green signal to go ahead.

As per the report, the BUET professor turn caretaker government functionary said that options for both open pit and underground mining methods were kept in the draft policy. He said that "Development method of any coal field will be determined on the basis of the coal conditions adding that there is no provision for any pilot project or experimental basis project of open pit mining.”

The professor said that full compensation including rehabilitation of those affected by the mining was provided in the draft policy. But they would not get the land back on completion of the mining as was proposed in the earlier draft policy.

Dr Tamim said that "Land Ministry has suggested that this is not a pragmatic provision as land returning process to the original owner may create lot of complications after a long time of acquisition.”

It said that a high level technical expert committee drafted the coal policy and placed it to the Energy Division in January this year. Energy Division then reviewed it and took suggestions and opinions of other ministries concerned before finalizing the draft.

It is reported that in a bid to increase the proven coal resource base in India, the Ranchi based Central Mine Planning & Design Institute Limited plans to undertake detailed exploration in a number of blocks at different coalfields in West Bengal, Jharkhand, Orissa, Chhattisgarh and Madhya Pradesh.

According to the report, CMPDI a subsidiary of Coal India Limited, recently invited expression of interest for detailed exploration of these coal blocks. The quantum of exploratory drilling, to be conducted in these blocks, is estimated to be around one million meters per annum for the next three to four years. However, drilling of individual block varies from about 50,000 meters to 100,000 meters or more and the depth varies from 50 meters to 1,000 meters.

According to CMPDI's notification, the scope of work involves exploratory drilling, deviation survey and geophysical logging, topographical survey and contouring, lithological and geotechnical logging and sampling of borehole cores, geological mapping, need based surface geophysical surveys, physio mechanical investigation, chemical and petrographic studies for coal cores, software based geological modeling and formulation of geological report.

Reuters reported that USD 1.3 billion initial public offering by Indonesian coal company PT Adaro Energy Tbk was five times oversubscribed at the end of its offer period last week, its lead manager said.

Several big foreign investors active in Asia have grumbled that they were shut out of Indonesia's biggest ever IPO despite heavy overseas interest in what is seen as an attractively priced deal.

PT Danatama Makmur, the lead manager for the offering, said in a statement released late on Sunday that 74.77% of shares were allocated to foreign investors, with the remainder going to domestic investors.

Most of those shares have been allocated to a number of parties connected to the company, including five firms who had stakes in Adaro's coal mining unit, PT Adaro Indonesia, the country's second-largest coal producer by volume. Adaro had said in a document that 69.15% of the 11.14 billion shares offered would be allocated to five investors who already had stakes in PT Adaro Indonesia, a coal miner that Adaro Energy plans to acquire with the proceeds from the IPO. They are Farallon Capital, Kerry Coal, the Government of Singapore Investment Corp, Citigroup and Goldman Sachs.

Around 84% of the allotment to domestic investors went to institutional shareholders including mutual funds, asset managements, insurance and pension funds, translating to IDR 2.6 trillion. Danatama said allotments for retail investors were only 4.01% of the total share offering.

The firm has said it plans to use nearly 97% of the IPO proceeds to buy five affiliated firms: Adaro Indonesia, Coaltrade Services International, PT Saptaindra Sejati, PT Indonesia Bulk Terminal, and PT Makmur Sejahtera Wisesa.

JMB reported that Australian rare metal producer, Lynas Corporation supplies rare earth products to Japanese market with 3 to 5 years contract by developing Mt Weld mine in Western Australia.

The firm already started construction of concentration plant in Australia and plant in Malaysia to process and refine concentrate from Australia.

Mr Nicholas Curtis executive chairman of Luncas Corporation said the firm starts the commercial production in July to September 2009 and the sales to Japanese customers would represent more than half of the total sales.

ET reported that Orissa government had identified a new bauxite reserve in Kandhamal district, besides getting indication of presence of heavy minerals along the coast in Puri.

According to a preliminary estimation made by the Directorate of Geology, nearly 8 million tonnes of bauxite was reserved at Ushabali plateau in Kandhmal district. An official said that “Estimation regarding bauxite reserve in Kandhamal district is preliminary. The volume of reserve could be more, adding that survey work would be extended to nearby areas this year.”

Orissa Mining Corp recently reviewed the mineral survey activities taken up the Directorate of Geology to find new reserve, particularly iron ore, which was in demand as the state had signed MoU for setting up of at least 46 steel plants.

The Directorate had completed survey of Hirapur area in Nawarangpur district for iron ore deposits and had also undertaken fresh surveys in Joda, Badbil in Keonjhar and Daitari in Jajpur.

The report added sources quoting that though the directorate had completed iron ore survey work by using drilling method at Tensa area of Sundergarh district, the findings were under study.

Reuters reported that Southwestern China's Guizhou province, a major power provider to coastal Guangdong, is suffering electricity shortages due to a lack of coal, joining a series of others facing power woes ahead of China's hosting of the Olympics.

The person who is familiar with local power sector operations said that "Power output from hydropower plants was fairly high, but that could not offset losses from coal fired plants. The person said some plants have 500,000 tonnes to 600,000 tonnes of coal, while some others were holding only several tonnes.”

According to the report, Guizhou only recently recovered recently from severe winter ice storms that paralyzed its trunk grid networks and half its generating capacity. But Guizhou managed to send 12.8 billion kilowatt hours of electricity to Guangdong in the first half of this year, 13.03% YoY as compared to a year earlier.

XFN Asia reported that Henan Pingdingshan Coal Group has started building a PVC plant which is expected to become the China's largest such facility.

Xinhua said the plant, which will take in total investment of CNY 8 billion is rated at 1 million tonnes of PVC a year and the construction is expected to be completed by the end of 2015.

Henan Pingdingshan Coal Group is the parent of Pingdingshan Tianan Coal Mining.

It is reported that the movement of iron ore from mines in Orissa to Haldia and Paradip ports has been severely effected due to heavy rains. This has affected the stocks at these ports resulting in non availability of desired quantities.

As a result, unsold cargos sitting at ports are being used to make up shortfall in quantities required to be loaded on vessels already at these ports. This situation has presented an opportunity to owners of ready cargos to demand for higher spot prices

The surge in such prices is reported as under
1. Lower grade – USD 5 per tonne to USD 7 per tonne
2. Higher grade – USD 10 per tonne

(Sourced from www.steelprices.com)

Bloomberg cited Mr Viktor Poltavets coal minister of Ukraine as saying that Ukraine will mine about 7% more coal this year and needs USD 670 million of spending to expand production by a further 13% next year.

He said that production will advance by about 5 million tonnes to 80 million tonnes this year. Output may reach 90 million tons next year.

Mr Poltavets said that “We have to replace gas with coal produced in Ukraine as much as possible. There is only one way to develop the coal mining sector and that is to attract private investment. Our general line is to sell all mines.''

He said that the ministry may create a new exchange to handle coal sales by state-owned and private mining companies. That may help increase prices to those traded in Europe.

Reuters reported that shares of Chinese major coal maker Datong will be suspended due to a significant internal asset restructuring.

Datong in the statement without further elaborating said that Datong Coal Industry Co also plans to issue new shares in a private placement to proceed with its asset restructuring.

The Shanghai Securities News reported recently that Datong group, parent company of Datong Coal Industry Co had made a promise that it would inject all the good-quality coal assets currently owned by the group into its listed vehicle before 2014, making it a group listing eventually.

The official newspaper reported without citing any sources that the susprise suspension of Datong shares recently is likely to lead to the formal launch of Datong's group listing plan.

Datong said in its statement that its shares are expected to resume for trade on August 14 whether or not its internal restructuring plan is approved by its board.

Reuters reported that Chinese authorities will step up coal deliveries to power plants in Beijing and neighboring cities to ensure they can meet demand for electricity during next month's Olympics.

Authorities have made cleaning up Beijing's air one of their top priorities for the Games and are telling hundreds of steel plants and other factories in the capital and nearby provinces to shut down or reduce production starting from July 20. But the country's reliance on power generated by burning coal, which accounts for about four to fifths of its power, means that it will likely have to burn more coal to meet the additional demand needed for the Olympics, at a time when the country is facing its worst summer power shortage since 2004.

The official Xinhua news agency cited an unnamed source with the Ministry of Railways as saying that authorities would increase transport of coal to Beijing, Tianjin and Tangshan, in northern Hebei province, giving priority to shipments to 24 thermal power plants in the region.

The report gave no details on how large the coal reserves in the region are but said that strains on the supply in some areas were grim.

Xinhua reported that the death toll from a coal mine flooding in north China's Shanxi Province stood at 10 as the bodies of trapped miners were recovered early on Tuesday.

The rescue headquarters said the flooding took place at the Wangzhuang Coal Mine in Changzhi City on Saturday night when 82 miners were working underground. 69 miners managed to escape hours later and another three escaped by themselves on Monday.

According to the report, the floodwater, amounting to 10,000 cubic meters, was said to come from a mined out area in the vicinity.

Rio Tinto has announced an investment of over USD 500 million in cleaner, more sustainable power generation to support its expansion of iron ore mining capacity in Western Australia.

Rio Tinto in a statement said that it will build generation and transmission infrastructure near Karratha worth USD 503 million to supply electricity to its port and mine operations. The new power station will be constructed adjacent to the 7 Mile Rail Operations site.

It will use natural gas turbines, resulting in a significant reduction in emission rates compared with the two steam power stations currently in operation at the Cape Lambert and Dampier ports, which will be decommissioned.

As part of the investment, Rio Tinto will build a 220kv power line from the new power station to Cape Lambert. The power station will be commissioned in 2010.

Mr Sam Walsh CEO of Rio Tinto Iron Ore group said the open cycle gas turbines would emit about 25% less carbon dioxide than the existing steam turbines. He said that "At an annual production rate of 220 million tonnes of iron ore a rate we expect to reach in Q4 of 2008 we will be saving 200,000 tonnes a year of greenhouse gas emissions by moving to open cycle turbines.”

Rio Tinto is responsible for the generation, transmission and distribution of electricity to its mines, ports and associated towns. This network forms a significant component of the Pilbara's North West Interconnected System.

Rio Tinto will study options to increase power generation further to support future expansion plans in the Pilbara.

Teck Cominco Limited and Xstrata Zinc announced the closure of the joint venture Lennard Shelf Pillara mine in Western Australia. Operations are expected to cease by early August.

The Pillara mine has become uneconomic, primarily due to the sharp decline in zinc and lead prices compounded by the appreciation in the Australian dollar. Higher energy and labor costs and lower than planned production have also contributed to rendering the project uneconomic. The decision to start Lennard Shelf was made in 2006 and production commenced in early 2007. In the period to December 31 2007, the operation produced 42,100 tonnes of zinc metal and 12,400 tonnes of lead metal.

Orderly mining of drilled and broken ore stocks will be undertaken from today until the cessation of milling operations. Mine development and exploration work has been suspended. All existing contracts will be terminated and employees will be provided with appropriate support.

Dewatering of the Pillara mine will be discontinued following de commissioning and the plant and surface facilities will be placed on care and maintenance until a decision on the long term future of the assets and tenements is taken.

The closure is not expected to have a material impact on earnings for either company.