PTI reported that the Jharkhand government and the union steel ministry have agreed in principle to sort out a logjam in the allotment from the iron ore rich Chiria mines to the Steel Authority of Indian limited by October.

Mr Ram Vilas Paswan union steel minister and Mr Shibu Soren CM of Jharkhand during a joint press conference told that “Priority in allotting Iron Ore from the Chiria Mines will be given to the SAIL and a decision to this effect will be taken by next month.”

Mr Paswan said that “I am happy that Shibu Soren has agreed to the SAIL's claim on the Chiria mines after two former Chief Ministers, Arjun Munda and Madhu Koda did not consider the claims, with Koda even ignoring the Prime Minister, Manmohan Singh's advice to consider SAIL's claim.''

Mr Soren while urging the Steel Minister to create job opportunities for the people of Jharkhand said that “That does not mean that we will ignore the private sector. After allotting to the SAIL, we will decide later on private sectors.”

Indian domestic steel prices for long products remained weak on September 24th 2008.

ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

Long products

Flat products

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

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PTI reported that JSW Steel is likely to begin the construction of its proposed 10 million tonnes steel plant in Jharkhand by early 2009.

Mr RP Singh CEO of JSW Steel Jharkhand project said that “We have set early 2009 as the target for ground breaking and plan to bring the integrated steel plant by March 2012.”

As per report, the company is in the process of acquiring about 6,500 acres of land in and around Sonahatu block of Ranchi district to begin civil construction of the steel plant. Mr Singh said that “With support of the government, we are hopeful of getting the required land at the earliest.”

As for meeting water requirement of the steel unit, Mr Singh said that the Jharkhand government has given permission to draw it from Subarnarekha River. The company would require about 80 million gallons of water per day for the plant.

JSW Steel has been allocated Rohne coal block in Hazaribagh district and Ankua reserved forest iron ore mine in West Singhbhum to meet the raw materials requirement of the upcoming steel plant. While Rohne is estimated to have about 400 million tonnes of semi coking coal reserves, the iron ore mine is expected to have a stock of around 200 million tonnes.

JSW Steel had signed a memorandum of understanding with the Jharkhand government in November 2005 for setting up 10 million tonnes steel plant with an investment of over INR 35,000 crore.

It is reported that to meet the challenges of Human Resource Development keeping in view its ongoing modernization and expansion program a MoU has been signed between Management Training Institute the Corporate Training centre of Steel Authority of India Limited and leading business school, Indian Institute of Management Ahmedabad.

Under the MoU the scope of the collaborative efforts being addressed include faculty support for SAIL program from IIM Ahmedabad faculty support from SAIL in IIM Ahmedabad program Joint research and development of case studies, special program for SAIL executives at IIM Ahmedabad and access to literature and library resources.

The MoU marks a significant step in the consolidation of an industry-academic interface that would enhance SAIL's access to knowledge about latest management practices across the world and knowledge of good practices in SAIL can be validated and disseminated across the world in the form of case studies and references in management literature. While strengthening SAIL's HRD initiatives and fructifying its future plans more effectively, the MOU is an important step undertaken in the Golden Jubilee year of production celebration to enrich management development.

In line with its sustained endeavor to enhance the exchange of knowledge with reputed knowledge Institutions and to consolidate its position as a leading corporate training centre in the country, MTI SAIL also has collaborative tie ups with Management Development Institute Gurgaon, Indian Institute of Management, Indore and Indian School of Mines University, Dhanbad for exposing its managers to the latest management concepts.

It is reported that Shriram EPC Limited, an integrated engineering service provider for renewable energy projects, has bagged two orders amounting to INR 315 crores from Steel Authority of India Limited for its Rourkela Steel Plant.

According to a release “The first order includes design, engineering, manufacture, supply, erection, testing, commissioning and establishment of performance guarantee of Coal Chemical Plant. This order would be executed in consortium with Hutni Projekt Frydek-Mistek a s, Czech Republic and this project is to be commissioned within 28 months from the date of signing of the contract.”

It said that “The second order includes design, engineering, manufacture, supply, erection, testing, commissioning and establishment of performance guarantee for Ammonia Liquor Treatment Plant and Ammonium Sulphate Plant for up gradation of Coal Chemical Plant. This project is to be commissioned 18 months from the date of signing of the contract.”

Mr T Shivaraman MD & CEO of Shriram EPC said that "We are delighted to win our first order along with our consortium partner Hutni, a world leading coke oven and by product technology company with a track record of 55 years in the business. Our partnership with Hutni will open up the market for bidding for the coke oven battery."

Express Buzz reported that ArcelorMittal is putting up a steel component manufacturing unit at an estimated cost of INR 100 crore in collaboration with Mumbai based Dhamm Steels at Ranipet in Vellore district.

As per report, the company plans to manufacture finished steel components for earth moving equipment manufacturers, construction and power industries.

Production is expected to begin at the unit in the next few months. Construction work has already begun in the 24 acre plot allotted to it by SIPCOT in Phase III in Ranganathapuram village adjacent to the proposed Leather Special Economic Zone. Roads and other infrastructure are being developed in the area. Power lines are being erected.

Nearby villagers are hopeful that the industry would provide them job opportunities. Over 500 acres of land has been already acquired for setting up the SEZ and other non SEZ industrial clusters in the locality.

The entry of ArcelorMittal in SIPCOT has propelled industrial growth in the locality.

Exim News Service reported that more ships are coming to Alang during the last 3 to 4 months for breaking the fall in steel prices and the global monetary situation have affected operations.

Those ships which were bought at a higher price and those which are being demolished may prove costly for the yard owners because of the fall in their prices. With the weakening of the market, there has been a price reduction of USD 100 plus.

A source said that most of the deals which were struck a month ago are now being renegotiated. He added that Banks which fund most of the deals may also feel the adverse impact a yard owner averred.

According to another leading player, the fall in prices has come during the last 1 month due to reduction in the steel price and ship price and the depreciation of the rupee against the dollar. It is estimated that the yards in Alang have cumulatively lost more than INR 200 crore.

As per report, Alang had demolished 11 ships in June, July saw the breaking of 20 ships and August 21 ships which yielded 1,05,917 tonnes.

ENS reported that production of cement in August 2008 at 13.16 million tonnes declined by 10.2% MoM from 14.66 million tonnes in July 2008 as capacity utilization dropped to 77% from 87% during the same period, while it was 88% in August 2007.

The sharp fall in cement production in August 2008 seem to have helped companies hold the prices despite the slump in demand in select pockets.

Project monitor reported that Mumbai based Pratibha Industries Limited has won INR 156 crore order from Delhi Jal Board. The contract involves design, construction, supplying, laying, testing and commissioning of 1.5 million dia 22 kilometer water pipelines.

The order which also includes operations and maintenance for 5 years is to be completed within 21st months.

As per report, this is the second DJB order for Pratibha in recent times. In early September, Pratibha had won a similar INR 44.75 crore order from Delhi Jal Board for the Laxmi Nagar to Rajiv Gandhi Smriti Van water transmission system to be completed within 18th months.

Project monitor reported that Mumbai Metro One Private Limited has placed the order for the automatic fare collection system on Spanish firm Indra for the 11.7 kilometer Versova-Andheri-Ghatkopar elevated metro line in Mumbai.

The contract for laying tracks has gone to VNC-Rail One, a consortium of VNC from Visakhapatnam and Rail One from Germany.

The mandate for installing communication systems between operators and passengers has been awarded to Thales of France.

In June 2008, Chinese supplier CSR Nanjing Puzhen Rolling Stock Company had won INR 604 crore order to supply metro trains. The order involves 16 four coach trains to be supplied in the coming 2 years. The first 4 trains will roll out in the next 18th months.

Mumbai One Metro Private Limited is a 74:26 partnership with a private consortium Reliance Infrastructure Limited and Veolia Transportation of France holding majority stake. State nodal agency Mumbai Metropolitan Region Development Authority is a minority shareholder with 26% stake.

Construction on this line was flagged off on February 8th 2008 starting with digging work for pylons and pits at Dhaku Road off Andheri-Kurla Road in north Mumbai. Simplex Infrastructures Limited has been awarded INR 406 crore order for civil construction of a 10.7 kilometer viaduct on the Versova-Andheri-Ghatkopar elevated corridor. The order is executable over 22nd months.

It is reported that Jawaharlal Nehru Port Trust is planning a PPP model to move ahead with the dredging of the port channels.

JNPT plans to involve the other two terminal operators - Dubai Port World, which operates the Nava Sheva International Container Terminal and Gateway Terminals India which operates the third terminal at JNPT in the SPV to take up the required dredging.

The proposed SPV will work towards hiring dredgers from the global market for the job and all the three terminal operators will be equity partners at the SPV level.

The proposed approach will help the port avoid delays in taking crucial decisions while awarding the dredging contract. The last dredging tender was to be awarded to the lowest bidder Belgian company Van Oord.

The port in need of dredging has been entangled in bureaucratic hassles ever since the project was first approved in 2004. JNPT, which handled 3.6 million TEUs in 2007, requires its channels to be dredged up to 14 meters from the current 12.5 meters to meet traffic projections and allow bigger vessels to berth.

It is reported that TATA Motors has moved equipment key to manufacturing Nano, the ultra-cheap car, from it’s under construction plant at Singur in West Bengal to another facility in order to meet its roll out obligation.

The equipment was carted out from the plant and the cargo is believed to have been moved to the company’s plant in Pantnagar in Uttarakhand.

The company, which unveiled the Nano in January this year, had committed that the commercial launch of the sub USD 3,000 car would take place in the October to December quarter.

Bloomberg reported that Vedanta Resources has dropped its corporate restructuring plans due to the global financial turmoil and feedback received from investors.

Vedanta had on September 9th 2008 had announced its plans of streamlining its various metals and mining businesses into three companies.

Vedanta said that its flagship company Sesa Goa will continue to focus on iron ore, while Sterlite Industries will control the groups zinc and lead businesses. Sterlite was to transfer its aluminium and energy businesses to Madras Aluminum, which the group had planned to rename Sterlite Aluminum.

It is reported that Reliance Power is planning to invest over INR 60,000 crore in renewable and alternative energy resources such as hydroelectric, wind, solar and fuel cell based power.

As per report, Reliance Power is planning to generate about 5,000 MW from hydroelectric energy and most of the projects will come up in water abundant northeastern states. It has engaged international companies such as Halcrow of the UK, SNC Lavlin of Canada and SMEC of Australia to assist in various aspects of its hydro projects.

Currently, Reliance Power has plans to develop 1,000 MW Siyom and 700 MW Tato-II in Arunachal Pradesh, and 280 MW hydroelectricity at Urthing Sobla in Uttarakhand. The overall investment planned in the hydro sector alone is around INR 50,000 crore.

It said that Reliance Power is also evaluating the techno-commercial feasibility of commercially producing reformer based cells and hydrogen technology in India. The company was in an advanced stage of discussion with a global firm on the design, development and manufacture of the same.

Project monitor reported that Karnataka government has asked for the help of the Centre to hasten the setting up of the 4,000 MW ultra mega thermal plant in Bijapur.

This comes in the wake of power shortages which the state has been putting up with for years. As report, Karnataka has given highest priority for power generation and development.

But now it is seeking help from New Delhi to start the Bijapur project. The state government had favored private sector investment in setting up two 2,500 MW thermal power plants in Jewargi and Ghataprabha. Karnataka has also sought mega power status for the 1,000 MW Bellary thermal plant which began commercial production in July.

It is reported that Mr Vinayak Deshpande has taken charge of Hindustan Construction Company's construction business as president & COO of EPC and Construction. He will be responsible for driving the EPC and Construction business of HCC which currently involves about 39 large construction projects all over India.

Mr Deshpande will be responsible for the operations of HCC Construction's verticals namely, Hydro, Water, Transport, Nuclear and Thermal Power, Integrated and Special Projects and Buildings and the EPC business.

As per report, the company has recently been restructured into 5 business sectors namely, HCC Infrastructure, HCC Construction, HCC Real Estate, Lavasa and HCC Capital. The restructuring process at HCC is a result of the strong growth the company has witnessed in all segments in which it operates and this reorganization will help focus on untapped segments.

According to Section 10 of the Electricity Act, every generating companies shall submit technical details regard its generating stations to the Electricity Regulatory Commission and the Central Electricity Authority. The generating company is also required to co ordinate with the Central Transmission Utility or the State Transmission Utility, as the case may be, for transmission of the electricity generated by it.

To facilitate implementation of the statutory provisions, Central Electricity Regulatory Commission in its order dated June 4th 2008 had required the generating companies to furnish the technical details in a notified format at least three years prior to the projected date of commissioning of first unit of the generating station.

To begin with, all the generating companies were required to submit the first report latest by July 31st 2008 and thereafter update information every year in the month of April.

The report added that so far, 11 generating companies have submitted the technical details including
1. NHDC
2. Coastal Gujarat Power Gen P Ltd
3. DVC
4. Satluj Jal Vidyut Nigam Limited
5. NTPC Limited
6. NLC
7. Torrent Power
8. Tata Power Trading Ltd
9. NEEPCO
10. Essar Power Limited
11. NHPC.

It is reported that KSK Energy Ventures has achieved financial closure for its 3x600 MW Chhattisgarh power plant. The company, through its wholly owned subsidiary Wardha Power Co is implementing the project.

As per report of the INR 6,874 crore required, the project is being funded by equity component of INR 1,718 crore and by closing debt of INR 5,156 crore. It had raised INR 1,245 crore during the company public offer in early 2008. Prior to the IPO, Lehman Brothers had invested INR 550 crore picking up 28% equity.

The debt of INR 5,156 crore is financially fully tied up with a host of banks and institutions in consortium, such as IDFC, Axis Bank, Bank of India, Bank of Boroda, UCO Bank, LIC, Union Bank of India, Canara Bank, Central Bank, among others.

The fuel for the project will come from coal supplies from the Morga-II coal block. The company has completed the EIA study and currently is awaiting environmental clearance for the project.

L&T's newly formed Buildings & Factories Operating Company part of its Construction Vertical has bagged several large value orders aggregating to around INR 50,000 millions in the second quarter of 2008-09 for the construction of a slew of institutional, commercial, residential and factory buildings.

L&T said that the orders have been received from major players around the country including NESCO Limited, Godrej Properties Limited, PBEL Property Development (India) Pvt Ltd, Om Prakash Jindal Grahmin Jan Kalyan Sansthan and Mahi Cement.

It added that “These orders boost a growth trend that earlier saw the Company securing major design-&-build orders in the airports, IT Parks and commercial space. L&T has been engaged in virtually all the modern airports in India that have been built or are under execution including those at Hyderabad, Bangalore, Delhi and Mumbai.

Project Today reported that Ms Sheila Dikshit CM of Delhi on September 21st 2008 laid the foundation stone of city's first elevated road over Barapullah Nallah from Sarai Kale Khan to Jawahar Lal Nehru Stadium.

As per report, the 3.7 kilometer long dual carriageway elevated road which will have 3 lanes each from Sarai Kale Khan to Jawahar Lal Nehru Stadium along Barapulla Nallah. The road will pass over four major crossings at Ring Road, Nizamuddin Railway Track, Mathura Road and Lala Lajpat Rai Marg.

The project will entail an investment of INR 498 crore and will be completed within 18th months.

Project Today reported that power ministry has approved the allocation of gas to the power sector from RIL's KG D6 Block. Gas will be allocated to gas based plants lying idle, plants likely to be commissioned during 2008-09 and plants operating on liquid fuel requiring switch over to natural gas.

Only the plants which can physically draw gas from RIL's pipeline for supply of D6 gas have been considered by the ministry. Unlike the case of state and private sector power plants, the power from central generating stations is allocated in accordance with Gadgil guidelines, as per which 15 per cent of the total capacity of a central generating station is kept as unallocated power with the Centre to meet the emergency requirement of various states.

The power ministry has favored an allocation of 7 mmscmd of total of 18 mmscmd of gas to the power sector.

Equity Bulls reported that IFGL Refractories Limited engaged in the manufacture of specialized refractories and operating systems for the iron and steel industry has effected payment of INR 3 crore towards the second installment of advance income tax for the current financial year. The amount paid is higher by about 22% over the corresponding installment paid in the previous financial year.

As per report, IFGL had effected payment of INR 1.5 crore towards the first installment of advance income tax and the total tax paid till date for the year 2008-09 is INR 4.5 crore.

In the meantime, the company has received awards for Overall Excellence in Export Performance for the year 2007-08 and Sustained Improvement in Export for the years 2005-06 to 2007-08 from the Indian Refractory Makers Association.

BS reported that L&T Power Development Limited a power arm of Larsen & Toubro Limited is actively looking at Junagadh in Gujarat for setting up coal based thermal power plant.

Officials in the state government said that apart from power project, the company is keen on power distribution and transmission in the district. The company has recently filed an Industrial Entrepreneurial Memorandum with centre government for power project in Junagadh of Saurashra region. The company has also sought government’s permission for power generation, transmission and distribution of electricity.

Sources in state’s energy department said that a proposal for power project has been forwarded by L&T Power and details of the project are being worked out. The company as it is also developing Sutrapada port in Saurashtra. Recently Gujarat Maritime Board issued letter of intent to L&T for developing Sutrapada port which is close to Junagadh.

As per report, L&T also proposes to build two bulk cargo handling berths and breakwaters during phase I of the project which is estimated to cost INR 670 crore. The total capacity of this port will be 5.6 million tonnes. At present, the company is preparing detailed project report for its port project.

Asia Pulse reported that Rashtriya Chemicals and Fertilisers proposes to enter into long term contracts with Reliance Industries and GAIL for supply of gas.

Mr U S Jha chairman & MD of Rashtriya Chemicals as saying that the company plans to take up several projects during the 11th Five Year Plan, estimated to cost about INR 5,000 to INR 6,000 crore.

He added that the company is also exploring avenues for investment in joint venture projects for producing urea and ammonia in countries like South Africa, Mozambique and Tunisia, which have proven natural mineral resources like rock phosphate and natural gas reserves.
RCF is evaluating a project for coal gasification at Talcher in association with GAIL and Coal India Limited.

BL reported that Greenko Group Hyderabad based renewable energy developer plans to start green power retailing from the Q1 of 2009.

Mr Anil Chalamalasetty CEO & co founder of Greenko Group said that “We have started preliminary work in this direction and the necessary regulatory paperwork has been completed.”

Mr Chalamalasetty said that after meeting the energy obligations to respective State electricity boards and grid, the excess power will be made available for retailing. He said that “We intend to brand this energy as ‘Greenko Energy’ and are currently in the process of working with companies and business houses that are committed to buying the green power to reduce their carbon footprint.”

Mr Mahesh Kolli President & co founder said that the energy generated from renewable energy sources such as biomass, hydro, wind and solar projects or carbon neutral technologies is known as green power. He said that “The ability to provide consumers access to green power is called green power retailing or marketing and in comparison with conventional power, green power can command a premium.”

The Associated Chambers of Commerce and Industry of India expects major surge in crude pricing patterns, anticipating them to go over USD 115 per barrel in later part of current fiscal even as the black metal is currently hovering at around USD 100 a barrel.

In a Paper ‘Crude Not Credible, Scarcity, Speculation and Slowdown’ brought out by the ASSOCHAM, however emphasizes that slowdown in US economy has begun to affect other economies, especially developing one in terms of restricting their industrial activity because of increasing energy prices.

Mr Sajjan Jindal President of ASSOCHAM said that “Its immediate fall out in near term would ease crude oil prices to around USD 90 per barrel as in the short term, amplifying effect of US slowdown and its repercussions on developing economies will dampen speculations which in the recent past caused crude oil prices going over USD 147 a barrel.”

Mr Jindal said that the current average price for the year 2008 is USD 115 per barrel. It may be mentioned that Oil Ministries of the Organization of Petroleum Exporting Countries recently have decided to trim the production by more than 5 million tonnes a barrel to avoid turbulence in crude market.

The Chamber, however, expects that in during later part of the year, high degree of speculation on uncertain events like tensions between oil rich economies or supply outages would keep the market volatile in near term, thereby attracting funds to manipulate the movements.

The ASSOCHAM, therefore, expects the average crude oil prices for the year would be around between USD 115 per barrel to USD 118 per barrel. Longer term future for crude oil prices are expected to remain robust as demand supply balance is expected to remain tight. Energy demand from developing countries like China and India has increased substantially in past decade and is expected to rise further.

As crude oil continues to be the major source of energy, demand is likely to remain robust. Meanwhile supply is expected to remain constricted due to rising cost of production and exploration, ageing of existing oil fields, depletion of conventional sources and lack of adequate investment in putting up new refineries and political instability in some major oil producing regions.

However, ASSOCHAM believes that demand and supply fundamentals does not work in the crude oil scenario but it is all speculation that drives the prices to a greater extent. At this juncture, the major oil consuming economies should increase their crude oil reserves at lower levels of crude oil prices as it could bring more surprises. Bulls may get back in and push crude back into their preferred levels.

Press Trust of India reported that steel melting shops-II of the Rourkela Steel Plant have set a new record in converter lining life surpassing the earlier record of 4545 heats achieved in May 2007.

BL reported that the high powered standing committee on Kochi Port has called for immediate intervention by the State Labor Minister to end the ongoing trailer workers’ strike at the port, as continuing flash strikes have brought port operations to a standstill.

As per report, the committee felt that the port was being held to ransom by some vested interests at a time when other ports around the country were progressing steadily and gearing to meet global competition.

The ongoing strike is a repeat of one that occurred some time ago and the committee failed to see why there should be a complete halt of work following an incident involving CISF and workers.

The committee said that port users were under tremendous pressure to meet export commitments as this is the half year closing time. The strike coupled with the existing congestion at the port and the proposed bank strike is more than the exporter can bear.

The committee pointed out that such strikes would impose a huge monetary burden on all port users by way of demurrage/detention and other charges. The current strike and the resulting halt on work would also affect the productivity and cost competitiveness of the port with the export market.

At a time when the port is doing everything possible to improve productivity and competitiveness, such avoidable circumstances will have a negative impact on the management’s efforts.

Meanwhile, the strike entered the second day on Wednesday, totally hampering the movement of trailers to and from the port. The talks convened by the Regional Labour Commissioner in a bid to end the strike also failed.

TATA Sons Ltd the Indian holding company with investments ranging from automakers to hotels said that the credit crisis presents it with opportunities to make acquisitions in the US and Europe.

Mr Alan Rosling executive director of Mumbai based TATA Sons said that “As access to capital tightens, competition for assets from competitors will dissipate and prices may fall.”

Mr Rosling said that he's concentrating on the US and Europe because there are fewer opportunities in the developing world. The closely held group already has stakes in companies that operate in the US including TATA Steel Ltd, Eight O'Clock Coffee Co and TATA Consultancy Services Ltd.

He said that “It may well be that businesses become available and there are fewer buyers or the prices have come down. He added that “If you are looking at M&A, it has to be the US and Europe where opportunities may come up.''

Project monitor reported that Karnataka government has asked for the help of the Centre to hasten the setting up of the 4,000 MW ultra mega thermal plant in Bijapur. This comes in the wake of power shortages which the state has been putting up with for years.

Karnataka has given highest priority for power generation and development. But now it is seeking help from New Delhi to start the Bijapur project. The state government had favoured private sector investment in setting up two 2,500 MW thermal power plants in Jewargi and Ghataprabha.

Karnataka has also sought mega power status for the 1,000 MW Bellary thermal plant which began commercial production in July.

My Iris reported that JV between Renault-Nissan-Bajaj is targeting Pune as the location for setting up a proposed plant for manufacturing of ultra low cost cars.

The JV partners are looking at developing the land owned by the Bajaj Group and the car is likely to be developed at Renault Designing Centre in India. The partners are aiming at production capacity of 400,000.

Bajaj-Renault-Nissan had formed a JV for the ultra low cost car project with Bajaj holding a 50% stake and Renault and Nissan holding 25% each, to produce and market small cars in the country.

Reuters cited India's Suzlon Energy Limited said that its board would consider a rights issue to raise up to INR 18 billion on September 27th 2008.

Platts reported that attorneys for a second steel consumer in the US filed a lawsuit on September 19th 2008 in US District Court for the Northern District of Illinois. The action seeks treble damages under US antitrust laws against the defendants and also demands a trial by jury.

The filing, on behalf of plaintiff Wilmington Steel Processing of Philadelphia, came one week after Scranton filed virtually a verbatim class action suit against ArcelorMittal, ArcelorMittal USA, US Steel, Nucor, Gerdau Ameristeel, Steel Dynamics, AK Steel Holding, SSAB Swedish Steel and Commercial Metals.

Both complaints were filed by a prominent antitrust law firm Freed Kanner London & Millen of Bannockburn. The documents refer to the suits as class actions brought on behalf of a plaintiff class consisting of all persons and entities who purchased steel products directly from defendants between January 1st 2005 and the present.

A document dated May 7th 2008 from the Supreme Court of the State of Delaware notes that on September 19th 2006, Ohio based Concord Steel purchased certain assets of Wilmington Steel Processing for USD 4 million, but that WSP was to continue as a separate entity. On October 3rd 2006, Stamford Industrial Group acquired Concord Steel.

The lawsuits cover all products derived from raw steel and sold by the defendants, including steel sheet and coil products, galvanized sheet and other galvanized and or coated steel products, tin mill products, steel slab and plate, steel beam, blooms, rails, and other structural shapes, steel billet, bar, and rod, steel pipe and other tubular products and all other products derived from raw steel and sold by defendants.

The steel producers named responded almost immediately last week to Standard Iron Works' filing, maintaining that that their business activities are legally compliant. Most have vowed a vigorous defense, others have dismissed the allegations as baseless.

Based on preliminary Census Bureau data, American Iron & Steel Institute reported today that US imported a total of 2.346 million tons of steel in August 2008, including 1.958 million tons of finished steel, down 19% MoM and 13% MoM respectively.

Total and finished steel imports through the first 8 months of 2008 are down by 11% YoY and 12% YoY. However, the monthly average for finished steel imports in the June to August 2008 period is up by 1% QoQ. Total and finished steel imports on an annualized basis this year are down by 4% YoY and 5% YoY, respectively. On an annualized basis, total imports of steel in 2008 would be 31.8 million tonnes.

Key product with a large increase in August 2008 compared to the month before include
1. Hot Rolled Bars, up by 17%
2. Oil Country Goods, up by 42%
3. Line Pipe, up by 10%

For August 2008, the largest volume of finished steel imports from offshore were
1. China 403,237, up by 69.7% MoM
2. South Korea 197,191, up by 3.1% MoM
3. Japan 149,144, up by 3.6% MoM
4. Germany 97,103, down by 5.2% MoM

Preliminary census steel import statistic comparisons

In tons

The most significant decreases were in blooms, billets and slabs. Stainless imports also decreased by 14.89% overall due to a significant decrease in cold rolled sheet and blooms, billets and slabs. July 2008 imports of steel mill products were down 11.33% as compared to July 2007.

In tons

What is important to take note of now, however, is that the Indian steel industry suddenly finds itself in a completely different context. In the world of steel, every player remains familiar with the cyclical nature of the growth. Therefore, the slowdown should not have surprised any in the industry. But, none really expected this to have happened so fast. The steel super cycle seems to have been ended abruptly or really?”

“India’s steel dream looks to be fading away” This is how we started our last year’s steel report. With the added uncertainty, the industry’s plans are in total disarray. There are no questions on the opportunities this country has offered in steel. From all points of view, these have been strong and credible ones.”

But the recent great years in steel have supported strong capacity growth in the steel industry in India. The more competitive Brownfield expansion projects have started delivering results and more are expected to come. What has been extraordinarily interesting to note in the past few years is the growth of very small to mid size capacities.

The Indian steel industry is in a peculiar fix. The capacity could not be raised immediately because of their own strategic problems. The limited capacity in the country and higher global prices provided to them all the opportunities to make sufficient money themselves and raise their credibility in the global capital market. However, an impulsive government, given the high political value attached to inflation in India, intervened in the steel business more than it needed to do.

Despite the fact that the capacity expansions in India have been of recent origin, a huge chunk of the existing capacity is technologically outdated or is uniquely backward.

It will be premature to write India’s steel ambition off despite all the bad news surrounding it currently.”

“Indian Steel Projects: Ground Reality, Strategic Issues and Opportunities” from Steel and Natural Resources Strategy Research analyses the context each significant producer is placed in and identifies their core problems. It makes an objective assessment of the strength and weakness of each of the major projects, when they are expected to be completed and at what cost.

It takes a macro view of the emerging steel supply scenario till 2021.

This 115 page report with 35 tables, 12 charts, a number of annexure, three maps and an appendix looks at the steel industry’s future in India from a strategic point of view to guide the investors in the industry, capital goods industry, steel traders, raw materials suppliers and the policy makers in the government in their own individual planning for the future.

Report Summary:
1. Published: Sep 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 115

Price: USD 1100 or INR 50,000
(Note: You can Save USD 100 if you order before October 15th 2008)
(Additional Charges would be levied for delivery of file on a CD or in printed form)
You can order your copy to reports@steelguru.com

BNamericas reported that Brazil's Votorantim Metais and Colombian steelmaker Acesco plan to build a USD 1.4 billion rolled steel plant in Colombia's Barranquilla city.

Mr Juan Manuel Lesmes director of Andi Fedemetal said that "We have very positive expectations regarding this announcement, because it is a form of proof that foreign investment is still arriving in the country, and all projects related to flat steel are welcome."

Mr Lesmes also considers the plans to be good news because the stronger the sector becomes and the more it grows the better for Colombia, for the trade and for everyone.

According to local press reports, engineering will take close to 7 months after which construction is expected to take roughly 30 months. The project is designed to supply 800,000 tonnes per annum of rolled products needed on the domestic market and could eventually export an estimated 500,000 to 600,000 tonnes per annum.

Acesco currently imports finished hot rolled steel and runs it through a cold process. The new plant is expected to generate savings of close to USD 700 million for the country, which is what hot rolled imports currently cost. The plant will also generate considerable income from new exports. The project will create around 10,000 jobs during construction and 1,500 to 2,000 when it begins operating.

Colombia imports 1 million tonnes per annum of steel, where 80% represents rolled steel and steel coils, mainly from Brazil, Venezuela, Mexico, China, Japan, Russia and Ukraine.

Bloomberg reported that CME Group Inc will offer a steel contract beginning October 19th 2008 after the rival London Metal Exchange introduced a similar product earlier this year. CME said that the contract for US Midwest domestic hot rolled coil will be financially settled against an index developed by CRU International and reflect current market prices. The contract of 20 short tons will be listed for 18 consecutive months.

CME Group is adding the contracts after LME introduced steel futures in February 2008. The exchanges have said futures contracts allow metals buyers to hedge against volatility by guaranteeing supplies at a fixed price. Steel is the second largest commodity market after oil and gas.

Mr Rick Redding MD of products & services T CME Group said that "In these uncertain financial markets, an exchange traded contract will provide customers with market transparency and integrity.''

Brazilian Group Gerdau has announced that it will expand its installed capacity in Colombia during 2008 from 550,000 tonnes per annum to 850,000 tonnes per annum and plans to push output to 1 million tonnes per annum in 2011.

Mr André Gerdau Johannpeter CEO of Gerdau said that "To get the job done, we are boosting our installed rolling and steelmaking capacities in order to supply the construction market and specifically infrastructure. In addition, we are always looking for new business opportunities within this dynamic process that our sector is experiencing."

Gerdau has announced a USD 6.4 billion investment plan to 2010 for its entire organization that will allow it to boost installed capacity 14%. Of those resources, USD 859 million will be channeled into Latin America excluding Brazil.

Reuters reported that Indonesia will scrap import duties for some raw materials, including steel and cocoa beans, to help local industries cope with increasing costs due to higher fuel and commodity prices.

Mr Fahmi Idris industry minister of Indonesia said that the government will pay the import duties for 10 industries, including iron and steel, cocoa processing, automotive, dairy products, power plant contractors, electronics and shipyards. He added that "Rising fuel prices have increased production costs, which in turn has greatly affected industry output. The fiscal incentive is intended to keep the industry running."

Mr Anggito Abimanyu head of fiscal policy analysis at the finance ministry said that Indonesian government will allocate IDR 2 trillion in 2008 and IDR 2.5 trillion in 2009 for the fiscal incentive program.

VNA reported that Vietnamese finance ministry has decided to reduce the export tax levied on non alloy iron and steel products to 10% from the current level of 20% in order to remove difficulties faced by local businesses. Earlier, the ministry of industry & trade proposed the finance ministry slash the export tariff on steel billets from 20% to 5%.

Vietnam Steel Association said that the move will help domestic firms to boost exports of these products, as they have experienced slow sales despite a decrease of VND 3 million per tonne compared with peak prices. According to the VSA, the amount of steel billets and products currently stocked by businesses is estimated at 500,000 tonnes.

In early August 2008, the finance ministry doubled the export tax on steel and steel billets to 20% to limit the re export of the materials due to weaker domestic demand.

Sims Group Limited announced that it has purchased another scrap metal recycling firm, Weinert Recycling, a ferrous and nonferrous metal recycling facility with locations in Middletown and Liberty.

Mr Kenny Weinert one of the former owners of Weinet Recycling, said that the deal has been in the works for around a year. Weinert has been in operations for around 50 years. Both facilities are roughly 10 acres, and are located in upstate New York, roughly 65 miles from New York City. Although the company doesn’t presently have any rail access at the yards, there is the possibility of laying track to shuttle the material in the future.

Other than changing the name, Weinert said that the management and employees, roughly 50 people, will remain with the company. The two yards will be used as feeder yards for Sims Metal Management facilities in the general area.

The deal for Weinert follows Sims’ acquisition of Silver Dollar Recycling in Las Vegas, and the completion of a deal to acquire C Herring and Son Limited.

Jiji Press reported that, facing higher raw materials prices, Japanese steelmakers are starting to utilize previously untapped low quality alternatives and waste matter left over from the iron production process.

The use of such materials is now viable despite the additional processing costs and Japanese steelmakers see the utilization of materials that would otherwise be discarded as contributing to environmental protection efforts.

Kobe Steel Limited has developed a technology to covert poor quality brown coal containing high levels of water into a fuel for thermal power generation by boiling it with oil to drain the water. It claims its new technology helps environment conservation because the low-quality coal contains relatively low levels of sulfur and cinder.

Nippon Steel Corporation and Sumitomo Metal Industries Limited have established a technology to extract iron and zinc from dust produced in the steelmaking process, by heating the dust in a furnace.

After a sixth furnace becomes operational this year, Nippon Steel will be able to recycle dust at all its steel mills. Through the recycling, the steelmaker expects to save up to 2.24 million tons of iron ore, around 5% of its annual consumption, and reduce its carbon dioxide emissions by 0.8 million tonnes per year thanks to lower fuel use.

Sumitomo Metal will have the capacity to recycle dust at its mainstay Kashima Works after a second furnace there starts operation in 2009.

It is reported that China Steel Corporation will spend TWD 2 billion to improve facilities at its four sintering plants to bring dioxin emission levels below a new limit to be enforced from 2010.

Mr Hsiao Yu Jeng director of the city government's Environmental Protection Bureau said that currently nearly 94% of the dioxins detected in the southern port city are emitted by China Steel's sintering plants. The integrated steel making plant is 23% owned by the government.

Mr Hsiao said that after holding a series of public hearings, the Kaohsiung City Council decided in June 2007 that effective from 2010, the ceiling on dioxin emissions will be lowered from the current one nanogram per cubic meter to 0.5 nanogram and that the cabinet level Environmental Protection Administration formally endorsed the decision last week.

According to Mr Hsiao, EPA head Mr Stephen Shen and several legislators paid a visit to CSC recently and met with the company's executives, who admitted that two of the sintering plants are too old and would never be able to meet the new emissions standard. He added that, after a round of negotiations, the EPA head agreed to consider as acceptable an average dioxin emission level of below 0.5 nano gram per cubic meter by the four sintering plants.

CSC's executives reciprocated by promising that the company will spend TWD 2 billion to improve facilities at its sintering plants in order to keep dioxin emission levels below the new ceiling from 2010. The function of a sintering plant is to process fine grain raw material into coarse grained iron ore sinter to supply the blast furnace. The plant's furnace is the main source of dioxin emissions.

It is reported that Indonesia steel mills including, Krakatau Steel Inc, Krakatau, Essar Indonesia Inc and others steelmakers are planning to increase their exports from August to October 2008 period.

As per report, Krakatau plans to increase export from 10,000 tonnes per month to 20,000 tonnes per month. Essar Steel said it plans to raise export from 5,000 tonnes to 9,000 tonnes per month. Gunung Garuda plans to export 40,000 tonnes from 35,000 tonnes previously.

BNamericas reported that the sale of Brazilian steelmaker CSN's iron ore unit Namisa is likely to occur by the end of October 2008.

CSN said earlier this year that it planned to sell all or part of Namisa, and then confirmed in August 2008 that the idea is to sell 40% to 50%. The market is pricing Namisa at USD 5 billion to USD 10 billion.

Mr Galdi an analyst said that CSN could either sell Namisa in its entirety or partially and if CSN sells only a stake, its logistics system could be included in the transaction as well. Another possibility is for the steelmaker to negotiate part of Namisa and include an amount of iron ore from its Casa de Pedra mine that does not form part of Namisa.

He said that CSN purchased Namisa in July 2007 in an effort to create ties with the international market. He explained that for a number of years, CSN was not profiting from its Casa de Pedra mine because of a legal dispute with Brazilian miner Vale. At the time, Vale had exclusive rights on the sale of Casa de Pedra iron ore.

He added that "Namisa still is a valuable company and CSN wants to make some cash by selling the asset."

It is reported that Horsehead Corporation will open a facility to recycle dust from steel production in the town of Snelling in Barnwell County. It will invest USD 87 million in the plant that's expected to hire up to 65 workers.

Horsehead has a contract with Nucor Steel to recycle their electric arc furnace dust, a byproduct of steel production. Horsehead employs more than 1,000 at six US facilities.

Tokyo Steel Mfg Co has announced upward revisions of its non consolidated earnings prospects for April to September 2008 period. Behind the revisions are improved earnings thanks to an upswing in sales, with a nosedive of ferrous scrap prices since the end of July 2008. The revisions in value are JPY 7,500 million as operating profit and pretax profit each and JPY 4,500 million as net profit.

As a result, the revised earnings prospects are JPY 168 billion in sales, up by 1.2% from what was projected earlier, JPY 16 billion in operating profit, up by 88.2% YoY, JPY 17.5 billion in pretax profit, up by 75% YoY and JPY 10 billion in net profit, up by 81.8% YoY.

For the latter half of fiscal 2008, Tokyo Steel keeps unchanged its non consolidated earnings prospects so far. Accordingly, it estimates its non consolidated earnings for the whole of fiscal 2008 at JPY 329 billion in sales, up by 0.6% from what was initially forecast, JPY 27.5 billion in operating profit, up by 37.5% YoY, JPY 29.5 billion in pretax profit, up by 34.1% YoY and JPY 17 billion in net profit, up by 36% YoY.

It is reported that European section steel market remains weak last week and the demand is standstill as well.

Buyers are continued to postpone their purchase plan. In Turkey, the domestic price of section steel was kept stable at TRL 1,020 per tonne to TRL 1,370 per tonne. However, the export price was kept decreasing.

Besides, Turkey’s angle bar price was quoted at USD 830 to USD 860 per tonne, and that of flat steel was at USD 840 to USD 870 per tonne. In Spain, section steel price kept decreasing on weak demand and high stock. The domestic angle bar price with size of 150mm was prevailing at EUR 720 to EUR 740 per tonne last week.

Jiji Press reported that Toyota Motor Corporation is set to cut its steel procurement costs by working closely with steelmakers.

As per repot, major steelmakers, including Nippon Steel Corp and Sumitomo Metal Industries Ltd have given Toyota a list some 300 proposals that they believe will help the automaker cut costs.

Based on the proposals, the top Japanese automaker will consider taking specific steps to reduce its production costs, thereby limiting the impact of higher materials prices and boosting its competitiveness. The proposals include the use of the same steel products in different auto models. The steelmakers also proposed that Toyota improve its production methods and reduce the use of steel products with low cost performance.

Toyota is now studying the proposals and intends to run trials for 6 to 12 months before full implementation. It accepted steel price hikes of some 30% in spring this year. This means that production costs will rise by roughly JPY 30,000 per vehicle.

With the prices of other materials, such as glass and resins, also rising, Toyota's fiscal 2008 material costs are expected to total about JPY 400 billion, far higher than the firm's estimate.

It is reported that Decatur Industrial Development Board has approved a resolution that gave Magic Steel Corporation, a customer of Nucor Corporation, tax exempt status on its USD 9.8 million loans bonds.

Magic Steel is the first tenant in Nucor's industrial park. By 2012, it predicts it will employ 30 people with an annual payroll of USD 1.3 million. More important, it is a buyer of products from Decatur's 700 employee Nucor plant.

While the industrial board is issuing the bonds for the Magic Steel plant, it has no liability on them. Magic Steel will make monthly payments to the purchaser of the private-placement bonds, GE Government Finance Inc.

The Industrial Development Board's role is to provide Magic Steel with tax exempt status on the bonds. It is the first bond the Industrial Development Board has issued since doing so on behalf of now defunct Trico Steel.

Magic Steel will invest about USD 15 million in the project on one of six tracts in the 171 acre Nucor industrial park. Nucor developed the park.

Usiminas, which bills itself as the largest flat steel producer in Latin America has announced a new partnership to supply capital goods. Specifically, Usiminas Mecanica and Nuclebras Equipamentos Pesados, which both manufacture engineered products, inked a supply deal for goods and services at the recent Rio Oil & Gas Fair. Projects covered by the new alliance are estimated to reach nearly BRR 300 million per year.

According to a Usiminas statement, the supply contract will focus mainly on the oil and gas, steel, and mining sectors, all of which present strengthening demand scenarios over the next several years. It said that "Scheduled to last at least five years, this partnership aims to take better advantage of business opportunities in these three markets."

Usiminas Mecanica offers solutions and services for the capital goods sector. It claims to be the leader in the supply of structures, equipment and services for heavy construction markets specializing in building steel, mining and offshore structures.

Bloomberg reported that Nigeria will sell stakes in pipeline and natural gas companies owned by state run Nigerian National Petroleum Corporation as part of a new national privatization plan.

Bureau of Public Enterprises said that Pipeline Products & Marketing Co will go through privatization from October 2008 to October 2009, while shares in Nigeria Gas Co will also be sold to the public from September 2008 to June 2009.

It may be noted that Nigeria is seeking greater private investment to expand oil, gas and other industries vital to the country of 140 million people. The privatization agency, also known as BPE, did not say what percentage of government ownership would be sold in the two companies, which are both wholly owned by NNPC.

The pipeline company owns pipelines linking fuel depots located around the country, connecting to four refineries and the main sea port in the economic capital, Lagos. The gas company operates eight pipeline systems supplying natural gas to power stations, steel plants and industries around Nigeria and neighboring West African countries.

BPE said that the government's overall privatization plan will amount to 105 transactions, and include the sale of the state's remaining 15% stake in Eleme Petrochemical Company Limited, based near the country's southern oil industry hub of Port Harcourt. Seven coal blocks in southeast and central Nigeria will also be sold to prospective investors.

Nigeria has Africa's biggest hydrocarbon reserves of more than 35 billion barrels of crude and 187 trillion cubic feet of gas. It also has coal reserves of over 2 billion tonnes.

Yonhap reported that Shipbuilding Co has won a KRW 121 billion deal to build two product tankers. The deal with a European shipping company calls on STX Shipbuilding to deliver the vessels by May 2011.

Mr Surapong Phaisitpattanapong a spokesman for Federation of Thai Industries' Automobile Club said that the country's total automobile production excluding motorcycles dropped by 5.25% in August 2008 to 103,737 units due to a slump in the domestic market with only 34,110 units, down by 31.88% YoY.

Production of pickup trucks for the domestic market fell by 53.46% YoY August 2008 to 14,130 units because of a four month slide in sales blamed on rising diesel prices. Yet August sales still surpassed those in July.

Automobile production for export rose by 17.2% YoY in August to 69,627 units while actual vehicle exports rose by 5.74% YoY to 69,404 units. In January to August 2008 period, vehicle production totaled 944,893 units, up by 15.76% YoY, of which 529,530 units were produced for export, representing 56% of total production, up by 23.1% YoY. The remaining 415,363 units are for the domestic market, representing 44% of total production, up by 7.6% YoY.

Vehicle exports in the first eight months increased by 22.75% YoY to 526,518 units while the total value rose by 29.76% YoY to THB 382.84 billion.

Passenger car production in August rose by 12.36% YoY to 33,453 units and in eight months to August increased by 33.9% YoY to 272,756 units. Pickup truck production including passenger pickup vehicles fell by 10.93% YoY to 69,102 units but in the eight months to August it was up by 10.36% YoY to 659,073 units.

Supermetal announced the signing of 2 major structural steel contracts in the Alberta Oilsands vicinity with Devon Energy for the Jackfish 2 SAGD project and EllisDon Construction for the Suncor Voyageur administration building.

The Jackfish 2 contract was signed with Devon Energy spawned from the success of the original Jackfish structural steel contract. The new contract is for the supply of 3600 tonnes of fabricated structural steel comprising of pipe racks, a process building and equipment modules. Jackfish 2 will be a stand alone SAGD plant adjacent to the original site 15 kilometers SE of the town of Conklin. The site is in the initial phases of construction with first oil anticipated in 2010 and a ramp-up capacity of 35,000 barrels per day.

The Suncor Voyageur administration building is a contract of firsts for Supermetal; the company will be working with EllisDon's Edmonton branch and indirectly for Suncor Energy for the first time. The 286,000 square foot administrative building is an eight story steel tower that will be comprised of 3,000 tonnes of steel structure.

Supermetal's construction subsidiary Supermetal Mojan based in Leduc will be performing the site erection. The total Suncor Voyageur village project is valued at USD 153 million and expected to be completed in 2011.

Mr Jean Francois Blouin GM of Supermetal said that "The Devon project represents the benefit of our previous performance from Jackfish 1 and our ability to meet a tight schedule. The Voyageur admin building will be a stepping stone in developing a strong working relationship with the parties involved. We look forward to excelling at both projects in the next 6 months and continue to broaden our experience in Alberta."

Supermetal Structures is a long established Canadian owned company with facilities in Quebec and Alberta and clients all across North America. It employs 400 people and specializes in the fabrication and erection of structural steel for industrial and commercial projects.

Japan's major electric steelmaker Kyoei Steel Limited has announced upward revisions of its consolidated earnings prospects except sales for April to September 2008 period. For main factors, it finds itself in improving sales prices of products, while domestic prices of locally available ferrous scrap as EAF feed are taking a nosedive.

With the sales forecast unchanged at JPY 115 billion, the revised earnings prospects are JPY 6,300 million in operating profit, up by 90.9% from what was projected earlier, JPY 7,000 million in pretax profit, up by 75% and JPY 4,100 million in profit, up by 78.3%.

For the latter half of fiscal 2008, it keeps unchanged its consolidated earnings prospects for fears about a rebound in ferrous scrap prices and a fall in demand for construction at home. Therefore, the company's consolidated earnings for the whole of fiscal 2008 are put at an unchanged JPY 235 billion in sales, JPY 17 billion in operating profit, up by 21.4% from what was initially forecast, JPY 18 billion in pretax profit, up by 20% and JPY 10.4 billion in net profit, up by 20.9%.

MENAFN reported that Masdar Abu Dhabi’s multi billion dollar renewable energy and clean technology initiative recently bought a significant equity stake in WinWinD Oy a Finnish wind turbine manufacturer. This strategic move highlights Masdar’s commitment to be a key player in the wind energy markets.

WinWinD is a manufacturer active in the design, development and assembly of technologically advanced 1 MW and 3 MW wind turbines. Headquartered in Helsinki, Finland, WinWinD has corporate offices in Oulu, Finland and Chennai, India and following this deal there are plans to expand elements of the operation into Abu Dhabi.

Masdar will work in partnership with the management of WinWinD and its majority owner, Sterling Infotech Group to accelerate WinWinD’s geographic expansion in Europe, India and the Middle East. Masdar will hold three board seats on the WinWinD board and will share important experience gained in the renewable energy domain.

As per report, this investment signals Masdar’s strategy to lead in all forms of renewable energy. It allows Masdar to move rapidly into the worldwide wind market enabling it to diversify its renewable energy asset portfolio. With a string of projects already under development, buying into a turbine manufacturer underpins Masdar’s strategy of investing in all aspects of the renewable energy value chain.

Dr Sultan Al Jaber CEO of Masdar said that “Wind plays a crucial part within renewable energy as it is commercially competitive today. It is important for Masdar to be part of that growth. He said that WinWinD is at an interesting phase and is set to expand into a truly global wind company servicing several key markets like Scandinavia, USA, Europe, the Middle East and Asia.”

Mr Lassi Noponen executive chairman of WinWinD’s said that “For WinWinD, the investment is a testament to the high quality of Finnish wind energy know how and the increasing global demand for renewable energy. He said that the deal provides a solid basis for developing our company further. This investment also beacons the breakthrough of Winwind’s utility class technology and ensures that wind energy remains a key part of the renewable energy solutions required to meet the ever increasing global demand for energy.
Masdar’s commitment and investment provides us with a springboard for future success.”

Mr Vaidyanathan Srinivasan group CEO of Sterling Infotech Group the main shareholder of WinWinD said that “This deal is a great opportunity for WinWinD and its shareholders and it will propel the company into significantly larger markets. Masdar has made a strategic move by investing in a company that has grown steadily over the past few years.” The investment will make Masdar a viable player in the wind power industries and allow it to lead the way globally in future energies.

Khaleej Time reported that steel prices in the UAE have plunged 35% to 40% after surging by at least 90% in the H1 of this year on surplus stocks and panic selling by traders. Trade sources said that the price of Turkish and Qatar steel dropped from AED 6,000 per tonnes to AED 3500 in the last two months.

Mr Mahendra Patel chairman of Building Materials Trading Group said that steel prices which had been kept artificially high by speculators when demand far exceeded supply have to come down to realistic levels.

Mr Patel said that “There had been heavy speculative imports of steel by even those who were not in the business. As a result of such hectic imports, availability of steel rebars increased substantially. With the demand slowing down due to a slackening of construction activities, these stockiest, especially the new players, got panicky and started to sell at lower prices. On top of that, Turkish steel manufacturers also slashed prices overnight and shipped huge quantities to the region, further aggravating the oversupply situation.”

Mr Shyam Bhatia chairman of Alam Steel said that steel prices which had been falling over the last 2 months looked set to rebound after the holy month of Ramadan. He said that “The price of reinforcement bars which peaked at AED 6,000 per tonnes in July has fallen to as low as AED 3,500 recently. We feel that prices will rise past AED 4000 per tonnes in the last quarter of this year.”

He said that the GCC would import 6.75 million tonnes of rebar this year and the market was expected to grow to 8 million in 2009. He further added that “However, the last two months has seen a buying freeze by the major importers in region which in turn has led supplier markets like Turkey to lower production and in some cases even shut down their mills for early maintenance. Regional mills have also seen their volumes drop by over 50% and have frozen their raw material purchasing.”

Emirates Business reported that the Ilyas and Mustafa Galadari Group has awarded a AED 500 million monorail contract for the City of Arabia to Metrail AG of Switzerland.

Mr Alex Vacha concept Architect & deputy director for Projects in an interview with Emirates Business said that “The major highlight of the monorail is it uses a variety of energy efficient options battery, hybrid engine and solar energy. This makes it a first in this region.”

Mr Vacha said that "We plan to start with a 2 kilometer stretch in the initial phase. When completed, one station of the monorail is expected to link the City of Arabia with RTA's proposed Purple Line. We plan to house a station inside RTA's Metro station."

Mr Vacha said that the network will consist of about 6 kilometer of dual guide way with 11 stations and six two car trains. The first section of the alignment is planned to be operational in 12 to 18 months. The developer has not yet taken a final decision on whether commuters will pay for the services. He said that "The monorail is currently planned as a service for residents and we have not yet looked at ticketing systems."

Mr Ilyas Galadari chairman of IMG said that “The contract was awarded to Metrail because of our commitment to provide a safe, efficient and environmentally sustainable transportation system within the City of Arabia. Metrail's unique and advanced green technology will add to Galadari Group's commitment to environment.”

Amana Contracting and Steel Buildings, a leading name in fast track and turnkey construction in the Middle East has been awarded aUSD 3.24 million project by Oryx Metal Industries in Oman.

The project, located in Sohar Industrial Estate is expected to be completed by the end of May next year. The facility, which will have a total built up area of 9,500 square meters will be spread across 31,400 square meters of land.

The project mandate includes construction, completion and maintenance of the facility. The construction encompasses the civil, mechanical, engineering and plumbing facilities and erection of the steel structure, said a company official.

Mr Haitham Radwan GM (commercial) at Amana Sohar said that “The project win reiterates Amana’s capabilities to execute time sensitive projects within budget and with world-class quality materials. Al Khayal Engineering is the consultant for the project.”

He added that “The contract for construction of the metal workshop and office for Oryx Metal is a prestigious addition for Amana. This new project is an importation value-addition to our expertise in the construction of various industrial projects.”

He further added that “This is a major contract for Amana in the Sultanate, which is an important market for our growth strategy in the region. With our delivery schedules and quality execution, we are ideally positioned to take advantage of the new opportunities on offer in Oman and the region.”

Mr Joe Sakr GM of Oryx Metal Industries said that the contract to Amana was reflective of the company’s efficient and reliable project execution.

Emirates Business 24/7 reported that ports within the UAE are raising their container handling charges amid a shortage of manpower and berthing space prompted by the growth in cargo traffic.

According to a report by Emirates Business 24/7, higher port charges come as the cost of handling containers of all sizes is said to have increased by 60% on an average over the last 18 months which added that it is leading to an overall hike in container freight charges.

It said that among the ports affected by the higher operational costs are Jebel Ali port in Dubai, Port Khalid and Khorfakkan in Sharjah and Fujairah port. The report said that the cost of handling a loaded TEU at Jebel Ali port has risen to AED 750 from AED 380 in February last year and to AED 870 from AED 460 for a loaded FEU.

The report added that Port Khalid and Khorfakkan Container Terminal which typically handle regional trade as well as container shipments destined for Asia and Africa, the charges for handling a loaded TEU have risen to AED 475 from AED 280 last year and to AED 700 from AED 430 for a loaded FEU.

Associate Press of Pakistan reported that Pakistan and Iran agreed to speed up the pace to initiate work on the multi billion dollar Iran-Pakistan-India gas pipeline and to set up a Joint Company to raise capital for the USD 7.5 billion project.

The decision came at a meeting here between Mr Asif Ali Zardari President of Pakistan and his Iranian counterpart Mr Mahmoud Ahmadinejad President of Iran here on the sidelines of the 63rd United Nations General Assembly session that also covered a wide range of issues between the two countries.

The two sides agreed on a meeting of their two foreign ministers on October 9th and 10th besides setting up a committee of five senior officials from either side to finalize the project and coordinate activities. The two leaders during their meeting focused on the project and stressed the importance of early completion of the over 2700 kilometer long IPI gas pipeline project that would bring in natural gas from the South Pars fields in Iran to Multan in Central Pakistan.
The project is aimed at helping the country meet its energy shortages and the growing industrial sector in Pakistan. The two leaders also discussed the import of additional 1000 MW of electricity from Iran, to meet the energy shortage in the country, particularly in Balochistan and expressed satisfaction over the pace of talks.

Trade Arabia quoted Strategic Marketing & Exhibitions said that Russian investors are seeking more investor friendly markets overseas and are expected to invest USD 1.5 billion into the Dubai property market by the end of the current year.

The report further revealed that the eagerness of the Russians and the inflow of real estate investments from Moscow based multinational corporations have prompted SME to launch the International Property Show Moscow 2008.

The high profile networking and transactional event will include prime real estate projects from Dubai and across the globe during its 3 day run from November 10th to 12th 2008 at Hall 1 of Crocus Expo International Exhibition Centre in the Russian capital.

The show will occupy 4,730 square meters of in exhibition space and is expected to welcome over 100 exhibitors and more than 15,000 trade visitors making it the biggest transactional trade and public property exhibition in Russia.

Khaleej Times reported that Abu Dhabi National Energy Company TAQA plans to invest USD 2 billion to USD 2.5 billion over next 4 to 5 years to increase its production and buy oil and gas reserves in the North Sea.

Mr Peter Barker-Homek CEO of TAQA while talking to reporters said that "At present, we have oil and gas assets worth USD 5 billion in the North Sea, which we intend to expand to USD 20 billion by 2016.” He added that TAQA's investment aims at increasing the offshore oil output by 50% to 82000 by the year end 2009.

Mr Barker said that “twenty companies including Russia's Gazprom, State oil, Hydro and the European Utilities have all shown interest in it.”

He added that Shell-Exxon deal will be concluded in November, making TAQA, a young company becoming brand system operator. On other projects, he said that TAQA is working on a carbon sequestration project with the port of Rotterdam. This will take all the CO2 out of power plants in the port, running it out and re-injecting it into a depleted field.

TAQA acquired BP Dutch gas exploration and production operations for USD 694 million, including onshore, offshore and storage facilities. It also bought stake in UK's Brae field held by Canada's Talisman Energy for USD 550 million and a share in Drum Field from Reach Exploration. It said that the Company has recently received tremendous response to its tender to raise capacity of Bergermeer gas storage project in the Netherlands.

It is reported that APM Terminals Bahrain is planning an end of year operational launch for Bahrain Gateway at Khalifa Bin Salman Port in Hidd. However Mr Iain Rawlinson GM sales and marketing said that with public holidays and high volumes of imports associated with the season, it may be pushed back to January.

The port aims to position itself as the hub for upper Middle East Gulf cargoes.

Mr Steen Davidsen MD of APM Terminals said that “Over the years we will most probably be faced with competition from other Gulf countries, but we'll have a couple of important advantages we will be ready at the end this year and our location and space availability.”

Nakheel a Dubai World company and one of the world's largest and most innovative real estate developers recently announced that 2008 sales to date are showing a threefold increase on 2007's full year figures.”

Nakheel said that till date more than 6,100 Nakheel units in Dubai have been sold or reserved, exceeding their own ambitious targets. Unit sales in 2008 comprised more than two-third apartment over a quarter villa and 5% land plots.

Mr Manal Shaheen director of Sales, Marketing and Customer Service at Nakheel said that "We are delighted but by no means surprised by this year's phenomenal sales success. Demand for Nakheel's Dubai properties continues to rise across residential and commercial sectors and we see no signs of this demand abating.”

Nakheel is providing 50% of Dubai's residential supply by building homes for 3 million people and plans to create 10 million square feet of retail space.

Zawya reported that Fakhruddin Properties is about to invite tenders for the AED 900 million 23 storey F Tower at Downtown Jebel Ali.

Mr Yusuf Fakhruddin CEO of Fakhruddin properties said that the tendering process would start in the next month and the contractor would be chosen within two months. The construction contract for the yet to be launched property would be worth between AED 300 million and AED 350 million.

Mr Yusuf said that work on other Fakhruddin Properties projects is making headway. Contracts for the Maimoon Twin Towers at Jumeirah Village South and the USD 95 million Coral International Hotel Apartment at Dubai Sports City have already been awarded and construction work is due to start soon. Maimoon Twin Towers is a USD 326 million project comprising 45 floor and 30 floor buildings.

China Mining reported that affected by sluggish market demand for iron ore and rapid increase in supply, China's iron ore market as plunged into a sluggish state of price drop and bleak transaction.

Experts hold that continual slipping of market price of iron ore may produce influence on price negotiation for iron ore for 2009. Theoretically, price drop of steel products will inevitably force steel plant reduce their demand for iron ore and press for lower prices.

But talking of negotiation, as the three iron ore giants all have two systems: one for supply and one for spot price, there will be certain gap between the price and spot price. Therefore, though the price of domestic spot iron ore supply and the price of imported spot iron ore supply have dropped together with the slipping of steel prices, compared with the targets of the three iron ore giants, there is still a certain gap.

In view of the situation, Mr Zhou Xiaoming Langesteel Analyst said that affected by drop of steel prices, many enterprises have cut their purchase of iron ore raw materials, and the decrease in demand will influence the negotiation for iron ore prices. But the original iron ore price negotiation mechanism exists some problem: still calculating on the basis of FOB.

As the Australian side will go on demand compensation for sea transport fee, the growth of agreed price would inevitably be higher than the FOB of CVRD. CVRD may require increase of FOB, which may made the negotiation more complicated.

It is reported that domestic market price for flat products still showed a declining trend in last week. Domestic steel market price dropped under the combined influence of falling raw material price, weak demand and economy.

Steel consumption was forecasted to come back after the Olympic Games. But the problem is the released demand will not certainly give support to market prices as there is still room expected for further decline.

Recently, many large scale steel makers cut their prices. At present, many small scale suspend production under such circumstances. And many large scale steel makers also felt much pressure. In the end of September many steel makers published new price policy.

A lot of first class steel makers slashed EXW prices surprisingly. Baosteel pronounced to cut its flat product and shipbuilding plate prices by CNY 700 per tonne to CNY 800 per tonne and some CNY 500 per tonne. To a certain extent, the price cutting is favorable to downstream consumers. Besides, the move will help stabilize domestic market.

As the demand from downstream industries is released gradually and social stocks keep on a low level, it is possible for market prices to rebound temporarily. However, the temporal price bounce can not turn the scale. Besides, there is still room expected for further decline. So, the market price will not see a favorable turn at present.

(Sourced from MySteel.net)

It is reported that China Shipping Development was cleared by the NDRC to set up a shipping joint venture in Hong Kong with Baosteel Resources a subsidiary of Baosteel Group.

The new company, called the Hong Kong Haibao Shipping is 51% owned by China Shipping and 49% by Baosteel Resources with a total investment of USD 703.66 million. The company will mainly deal with ocean transportation for imported bulk cargoes including iron ore.

It is reported that Jiangsu Shagang Group Co, the country's largest privately owned steelmaker has proposed to Brazilian counterpart Cia Siderurgica Nacional to acquire a stake in the latter's iron ore unit Namisa.

Mr Jia Xinagrong vice chairman of Shagang said the Chinese steelmaker does not expect its talks on the possible stake purchase to close before the end of September.

He said that the negotiations are very complicated and the value of its bid for Namisa remained unclear as the Brazilian company's proposal was vague.

Mr Jia said that last week Brazilian mining giant Vale has slowed iron ore loading, forcing Chinese ships to halt at their port. He said that Shagang will use existing inventories and consider importing more from Australian, India and South Africa to replace the delayed ore from Brazil.

It is reported that Yuguang Gold & Lead, China's top lead producer, will shut down more than a third of its 310,000 tonnes of lead production capacity for repairs from October 6th 2008 for 35 days to 45 days.

Mr Li Xiaodong trade manager of Yuguang's said that "We have to shut down the system as it has been overused. If we don't shut it down now we may have a big problem. We think the system may be able to restart on November 10th 2008"

He said that Yuguang operates 3 lead production systems in Henan province and normally produces 25,000 tonnes of refined lead a month. The shutdown would reduce the firm's output by more than 10,000 tonnes. He added that the firm had informed domestic clients that it would delay some term shipments to November.

China is the world's top lead producing country, but its production has fallen in the last two months because of a diminished supply of concentrate, which has helped stabilize slumping prices.

It is reported that Hebei Iron & Steel Group Handan Steel lately ceased its last wire rod line running for 28 straight years, which is a significant move in improving products structure and shake off antiquated capacity. Until now, the steel maker's proportion of competitive steel products has risen up to 83%.

Handan Steel has been working to upgrade its existing equipments and wash out energy consuming and low value added lines in recent years. In the 10th Five Year period, it eliminated three 150,000 tonnes steelmaking converters or 1 million tonnes of steel capacity, a Belgian rolling mill of 450,000 tonnes of sections and five sintering machines or 1.2 million tonnes of sintering ore.

At the same time, it is striving to build plate deep processed projects and has established world-class production lines including a world one up 1.3 million tonne CR sheet line, two color coated lines with a yearly 120,000 tonnes capacity. It has today boated an integrated steel plate mix now, ie HR and CR sheet, color coated sheet and medium plate.

Plate products have become a highlight of benefit increase for the steel maker. During this January to August period, it developed a dozen of new plate varieties including high strength galvanized plate, many of which have gone to the high-end markets of America and European economies.

(Source: Hebei Daily)

China Oilfield Service Ltd announced that it had completed acquisition of Norway’s Awilco Offshore ASA for CNY 17.1 billion aiming at sale amount in excess of CNY 100 billion in 2020.

COSL said after the acquisition, COSL will build the eighth largest drilling fleet in the world, which owned totally 34 operating rigs at present include the construction platform of the two companies. Now the COSL has sent a team to Norway for handing the merger, the AWO will be a wholly-owned subsidiary of COSL. The deal has won support from relevant government departments of Norway and Statoil, the state oil company of Norway.

COSL has received approvals from all relevant Chinese departments and has met all the requirements for completion of the offer.

This was a great move for COSL, China’s largest offshore oil services provider, to expand internationally.

It is reported that Jiangsu Shagang took the lead recently to cut scrap purchase prices by CNY 50 per tonne, pushing latest price to CNY 3,480 per tonne for charging quality-scrap (1).

As followers, Wuxi Xuefeng, Jiangyin Xicheng Steel and Shandong Yantai Steel have lowered their prices by CNY 50 per tonne leaving their latest price to CNY 3,400 per tonne for charging quality scrap (1), quality scrap and heavy scrap respectively. Wuxi Huarun also cut price by CNY 40 per tonne with latest prices offered at CNY 3,420 per tonne for high quality scrap.

The price cut, supported by the favorable stocks and falling steel prices, has swayed the quiet scrap market in East China. Shagang has lowered steel products prices by CNY 800 per tonne for November supplies, giving a heavy blow to the already slack steel market. And some insiders even predict that price for rebar may break CNY 4,200 per tonne at the end of the year.

The panic mood has whipped steel mills facing profit loss to slash scrap purchase prices. In fact, cutting costs is the only way they can do besides output cutback at the moment. Therefore, scrap price is set to move down in future.

(Sourced from MySteel.net)

It is reported that the western part of Yantian port in Shenzhen will be the site of three new berths and the expansion of an existing fourth one to accommodate 50,000 tonne ships and the capacity to move 1.8 million TEUs a year.

As per report, the USD 561 million projects including imported equipment costing about USD 150 million will be built and operated by Shenzhen Yantian Port Holdings Co Ltd and Hutchison Whampoa Port Investment Ltd for 30 years.

According to the construction scheme, the four new berths will be operational in 2010.

It is reported that the Municipal Government of Zhanjiang enhanced compensation standards for housing removal because of the construction of the Zhanjiang Steel Project.

According to the new plan, ordinary brick-structured houses will be paid 600 Yuan per square meter, compared to CNY 550 per square meter in an original plan and the compensation for frame structured and concrete buildings will be increased by about CNY 300 per square meter.

In order to avoid compensation fraud, compensation standard for newly built brick walls and sheds will be lowered to CNY 150 per square meter from the previous CNY 250 to CNY 300 that for makeshift sheds will be lowered to 70 Yuan per square meter from the previous CNY 200 to CNY 220. Fruit trees beyond a normal planting density will not be made up.

TMK has announced that a 600,000 tonne capacity Premium Quality Finishing seamless rolling mill was brought on line as scheduled at its TAGMET plant in south-western Russia. The first batch of PQF seamless pipes was shipped to Surgutneftegas.

TMK is the first global pipe producer to operate a PQF mill, allowing it to produce pipes with geometry that twice surpasses API requirements.

The PQF mill will produce high-performance 73 mm to 273 mm OD seamless tubes with up to 25 mm wall thickness.

The mill is designed, manufactured and supplied by the German company SMS Meer, a leading supplier of pipe rolling equipment. In addition to expanding the share of premium class products, the state of the art three roller technology employed by the mill will improve production yields by 6% to 17%. The mill is scheduled to reach its projected production rate in the first quarter of 2009.

On top of the PQF mill, 200,000 tonnes of additional heat treatment capacity is also being brought on line, further enhancing the mechanical characteristics of pipes produced at TAGMET. Italian metallurgical equipment producer Olivotto Ferré supplied the heat treatment equipment. This new generation of oil and gas pipes is designed for aggressive and complex operating environments such as those found in Caspian Sea offshore operations and Arctic shelf projects in the Kola Peninsula and the Barents Sea. The production of PQF seamless tubes will also meet the needs and requirements of the machine building, energy, chemical and petrochemical industries and other demanding applications.

Production is intended for both Russian and international markets, primarily North America, the European Union, the Middle East and North Africa. Furthermore, shipments of PQF tubes to TMK IPSCO finishing facilities will provide the North American market with premium-class products.

Mr Konstantin Semerikov CEO of TMK said that “In 2008, TMK’s Strategic Investment Program focuses on the expansion of seamless OCTG production. The launch of the PQF mill was a key part of our strategy to bring TMK’s OCTG production to the next level. Although we expect a positive impact from this new mill already this year, the full effect of the PQF technology and high value-added production will be felt in 2009, when the mill is fully ramped up. The globally recognized high quality standards of the PQF rolling mill will allow TMK to successfully compete in all global oil and gas pipe markets.”

It is reported that due to the falling market price and weak demand, Ukrainian billet mills have also cut production.

According to a trader during the last 3 to 4 weeks, there were between 600,000 and 1.5 million tonnes of unsold material at Black Sea ports. There are almost no inquiries.

With no export demand, mills have been pushed to cut production. Meantime, ArcelorMittal Kriviy Rih plans to reduce its billet production for the fourth quarter by 20% due to weak demand.

(Sourced from YIEH CORP)

Severstal has announced that it has successfully signed a 5 year syndicated loan facility. The credit agreement secures USD 1.2 billion available immediately and provides for an option to further increase the facility amount.

The facility bears an interest rate of LIBOR + 2.35% per annum and has a 1.5 year grace period followed by quarterly repayments. The proceeds will be primarily used for acquisition of PBS Coals Company as well as other corporate purposes.

According to the release, the List of Mandated Lead Arrangers includes ABN AMRO Bank N.V, the Bank of Tokyo-Mitsubishi UFJ Ltd, Barclays Capital, The Investment Banking Division of Barclays Bank PLC, BNP Paribas SA, CITIBANK NA. London Branch, COMMERZBANK Aktiengesellschaft, DEUTSCHE Bank AG, Amsterdam Branch and Société Générale.

BNP Paribas is a coordinator, documentation agent and security agent. Deutsche Bank is the facility agent. Deutsche Bank and ABN AMRO Bank N.V are the passport banks.

Mr Sergei Kuznetsov CFO of Severstal said that “I am pleased to announce the successful signing of the credit agreement. In the current volatile environment in financial markets it demonstrates the strength of our company and investors’ confidence in our business model. We will use the facility to continue to grow our company and create value for our shareholders.”

Mechel OAO has announced the acquisition of a 100% stake in HBL Holding GmbH by its Mechel Service OOO service and sales subsidiary.

According to the release, the acquisition is consistent with Mechel Service OOO’s continued implementation of its program of expanding its sales network, enhancing and extending range of its services, and enlarging its client base. Ownership of the shares in HBL Holding shall pass to the buyer following the completion of all necessary legal and financial procedures.

HBL Holding, founded in 1976, is a group of German companies in the field of steel trading and distribution with a primary focus on of its activities in North Rhine-Westphalia, Bremen and the Eastern German federal states. In addition to steel wholesaling activities, HBL also processes steel parts according to customer requirements, and delivers products to its clients on a fast and reliable basis.

HBL Holding integrates eight service and trading companies in Germany. The main competitive advantage of the HBL Group is the wide range of its products: construction and tool steel, various rolled products for construction, various kinds of stainless steel pipes, steel sheets, including stainless steel sheets, and aluminum, brass and copper sections. Other advantages of the group include high value-added services surrounding steel wholesaling, and fast delivery of standard steel products due to an effective warehousing system. In addition, HBL offers sophisticated, customer-tailored services in the area of prefabrication and processing of metals, and precision (thermal) cutting such as plasma, laser, water jet and autogenous cutting. Major HBL customers include European companies in machinery and automotive manufacturing, and the construction industry.

Mr Vladimir Polin CEO of Mechel Management OOO said that “HBL Group is well positioned in its market segment and shows sustainable profitability and solid growth prospects. This purchase provides Mechel with greater access to attractive European markets and a more direct relationship to the users of our products. A wide range of available services and products and a group wide logistics system enables HBL to offer utmost flexibility and just in time deliveries on short notice. The acquisition is the continuation of Mechel Service’s program aimed at entering the market of custom-tailored high margin steel products.”

It is reported that in Cast Rolling Complex which the United Metallurgical Company Vyksunskom built in the area of the Nizhny Novgorod region recently was released the first piece of rolled steel. Rolls made from the stamps were “20” weighs 20 tonnes and has the following dimensions 7 mm thick strips, Width 1300 mm.

Mr Konstantin Pityul executive director of forestry said that “The tests showed that the equipment complex is fully prepared to top the full production process.”

The production reel has been successfully tested all operating mechanisms chain of production: a fusion of metal in the steel arc furnaces treatment in an oven-Bucket digging and pouring machine continuous casting billets test all the equipment rolling mill.

Ukrainian News Agency reported that Ms Yulia Tymoshenko PM of Ukraine intends to carry on negotiations with the government of Russia on conclusion of a long-term contract on natural gas supplies to Ukraine in the nearest future.

She said that "In the nearest future, we will discuss the issue with our Russian counterparts. Ukraine ought to have a long-term gas supply contract. In her opinion, conclusion of a long-term contract will contribute to stability of natural gas provision to Ukraine.”

Ukrainian Journal Staff cited Ms Yulia Tymoshenko PM of Ukraine as saying that Ukraine is running out of time and must resume natural gas talks with Russia within weeks to avoid aggravation and gas shortages in December. Ms Tymoshenko said that "Otherwise, each December will be a month of natural disaster caused by gas supply shortfall."

Ms Tymoshenko said she is planning to visit Moscow to meet Mr Vladimir Putin PM of Russian to accelerate the talks over a long term natural gas agreement, which had been postponed by Russia.

RIA Novosti reported that the Irkutsk department of Russia's Federal Antimonopoly Service has fined state oil company Rosneft RUB 229 million for abusing its dominant position on the wholesale gasoline market.

According to the report "The violation was in the creation by Rosneft of favorable oil product purchase conditions for its subsidiaries and discriminatory conditions for buyers that are not part of the company group."

In July, the Irkutsk department found the company to be in breach of laws on domestic sales of oil products, and ordered it to rectify the situation. The body also ruled that Rosneft must sign contracts with all buyers except when this is economically or technologically impossible.

The probe was launched in May after experts established that Rosneft's subsidiary Irkutsknefteproduct was supplied gasoline under a long term contract while other wholesale clients had to bid in monthly tenders.

Itar-Tass cited Mr Alexander Artamonov press secretary of the Vladivostok branch of the Far Eastern Railway as saying that reconstruction of the railway section between North Korea’s port Rajin and Russia’s station Khasan in the Primorye territory will be launched on October 3rd.

The Russian and North Korean leadership in 2001 signed the Moscow declaration reflecting the sides’ agreement to create a railway transport corridor linking the North and South of the Korean Peninsula with Russia and Europe. In April 2008, Mr Vladimir Yakunin President of OAO RZD Company and Mr Kim Yong-sam North Korean Railways Minister signed in Moscow a cooperation agreement.

The sides agreed to jointly implement the Khasan-Rajin pilot project that includes reconstruction of the railway section Khasan Rajin, construction of a container terminal at Rajin port, as well as the following exploitation of this infrastructure. With this end in view the sides agreed to set up a joint venture.

Kommersant reported that Russian Railways will get RUB 45.5 billion from the RF Investment Fund to implement high peed railway projects at St. Petersburg-Helsinki direction and for rebuilding Oune-Vysokogornaya section, including construction of a new tunnel.

As per report Russia government has appropriated RUB 27.9 billion to implement the first project and RUB 17.6 billion for the second one. The total cost of rebuilding Oune-Vysokogornaya section and constructing a single-track tunnel equals RUB 59.8 billion. The project will be implemented in 2008 through 2013.

Overall, arranging high-speed railway traffic between St. Petersburg and Helsinki will cost RUB 79.7 billion. The trains are expected to cover the distance of 450 kilometer in 3.5 hours.

Interfax reported that Belarus expects to increase natural gas imports from Russia by 2.3% to 22.1 billion cubic meters in 2009 and leave oil imports unchanged at 21.5 million tonnes.

Belarus has asked Russia to increase oil supplies via pipelines to 20 million tonnes in 2009 from 18 million tonnes in 2008 if possible.

The country also plans to import 5 billion kilowatt hours of electricity next year.

Interfax reported that the Russian government has made amendments to the charter of Russian Railways to increase the company's charter capital to RUB 1.542 trillion.

Mr Vladimir Putin PM of Russia signed off on the amendments on September 12.

RZD previously had charter capital of RUB 1.536 trillion split into 1.536 billion common shares with par value of RUB 1,000.

RIA Novosti reported that Russia's state controlled VTB Group unaudited net profit calculated to International Financial Reporting Standards increased 34.7% YoY in January to June to USD 679 million.

The group's assets grew 17.4% in the reporting period to USD 108.8 billion.

Interfax cited Mr Alexander Dyukov president of Gazprom Neft as saying that Gazprom Neft might still raise a loan for USD 1 billion before the end of the year.

He said that "Despite the financial crisis, we remain interested in raising a loan. Our profits and financial condition are sound. I think we will be able to reach agreement with the banks for a loan at advantageous terms for us."

It was reported earlier that Gazprom Neft completed syndication of a loan totaling USD 1 billion in July. The loan proceeds were used for general corporate needs and to refinance existing debt.

The loan was organized by Banco Bilbao Vizcaya Argentaria SA, The Bank of Tokyo-Mitsubishi UFJ, Ltd, Barclays Capital, Sumitomo Mitsui Banking Corporation and WestLB AG.

RIA Novosti reported that the Sahatransneftegaz oil and gas company, based in the north-east Russian Republic of Yakutia and Japan Oil, Gas and Metals National Corporation have signed an agreement on a joint venture in oil and gas exploration.

The republic's administration said "The joint venture in Yakutia will be established by the end of 2008 and the parties are currently holding talks on exactly which projects the Japanese side will participate in. It said that JOGMEC has already established a joint venture with the Irkutsk oil company INK Server to explore and produce crude oil in East Siberia.”

At a meeting held in August with Yakutia's deputy industry minister, Mr Albert Kondratyev, managers from JOGMEC displayed interest in the development of Yakutia's oil and gas industry as the East Siberia Pacific Ocean oil pipeline is expected to come online soon.

The ESPO pipeline is slated to pump up to 1.6 million barrels of crude per day from Siberia to Russia's Far East and then onto China and the Asia Pacific region.

The pipeline's first leg, estimated at USD 11 billion is expected to be commissioned in late 2009. The second leg will stretch for 2,100 kilometers from the Amur Region town of Skovorodino to the Pacific. It will pump 367.5 million barrels of oil annually. The capacity of the Taishet-Skovorodino pipeline, being built as part of the project's first leg is also expected to increase to 588 million barrels from the initial 220.5 million barrels.

Interfax cited Mr Sergei Bagapsh president of Abkhaz as saying that Abkhazia's ownership of the Inguri hydropower plant cannot be disputed.

He said that "The Inguri hydropower plant has always been ours and will always be ours. We will dictate our terms and conditions at any negotiations on it."

Earlier agreements stipulated that 40% of electricity generated by this hydropower plant would be supplied to Abkhazia and 60% to Georgia.

The plant is located in the village of Saberio in the Gali district of Abkhazia, and the dam is on the Georgian bank of the Inguri River.

Interfax cited Mr Vladimir Putin PM of Russia as saying that Mr Igor Sechin deputy prime minister of Russia will head the governmental commission for the development of power generation.

A decision to establish the commission was made in the Monday meeting of the presidium of the Russian government. Mr Putin said that "It will be engaged in locating power generation facilities up to 2020. The commission will also coordinate the investment plans of the government and market actors in the power generation industry.”

Mr Putin said that "Mr Igor Sechin will head this commission."

Mr Sergei Shmatko Russian Energy Minister said the commission has the status of a coordinating and consultative body, but its decisions will be mandatory for all constituting agencies. The minister also said that Mr Anatoly Chubais the former CEO of Russian electricity holding RAO UES will not be a member of the power generation commission.

Mr Shmatko said that "Mr Chubais is not a member of the commission. We have a rather close relationship with him. Our further relationship with him will be specified after he is back after holidays. The minister added that the commission will also tackle the most crucial issues linked to the development of power generation. It will also look into the current issues of its functioning.”

He added that the commission will consist not only of officials but also businessmen, representing both large electricity consumers and infrastructural power generation organizations.

It is anticipated that China was initially expected to increase the production of crude stainless steel in 2008 by 20% from that in 2007, but this expansion of the production will retreat to a considerable extent.

According to a forecast by analysts or Chinese experts, the output of crude stainless steel in 2008 will be still in the range of 7.80 to 8.20 million tonnes but a strong view at present is to converge upon more or less 8.00 million tonnes. For a reference, the production of stainless steel in China for 2007 was estimated to be 7.21 million tonnes to 7.35 million tonnes.

This slowdown of the growth on production of stainless steel in China has caused to change the demand for nickel from this country to a large extent. Jinchuan Group Limited has turned to increase their copper production in 2008 by means of restricting capacity for nickel production. Therefore, Jinchuan Group was initially scheduled to produce 120,000 tonnes per annum of nickel in 2008 but is now anticipated to decrease this nickel output by 10,000 to 20,000 tonnes.

It was already pointed out from summer of this year that Jinchuan Group decreases nickel production and it was recently known that they have converted from August of 2008 two furnaces used to refine nickel to produce more copper. By this arrangement, Jinchuan Group is expected to be able to increase their copper production by 35% to 300,000 tons per annum. However, their nickel production in 2008 will shrink to a scale of 100,000 to 110,000 tonnes per annum.

Accordingly, the output of nickel contained pig iron in 2008 was initially estimated to be 100,000 tonnes per annum of nickel but is now anticipated to decrease to 80,000 tonnes. However, China is supposed to have still held the excessive cargoes of nickel ore, which will come to 8,000,000 tons on material base and have been accumulated at wharves of discharging ports. The reduced nickel production as mentioned above has put the same impact on nickel producers in other districts of China.

Owing to the unexpectedly depressed production of stainless steel, the quantity of nickel to be consumed in China for 2008 is estimated to decrease by 17,000 tonnes to 345,000 tonnes. The quantities of nickel imported into China in January to July 2008 period were
1. Nickel metal – 74,000 tonnes
2. Nickel oxide – 42,000 tonnes
3. Ferronickel – 37,000 tonnes

The total quantity on nickel content base imported into China is unable to indicate with accurate figures but is supposed to be more than 110,000 tonnes at present and anticipated to reach a nearer level to 200,000 tonnes per annum.

China will produce 228,000 tonnes of nickel in 2008 as an increase of 6% from that in 2007 and the total quantity of nickel to be supplied to China in 2008, by adding that imported into China in the year, will be inevitable to come to 428,000 tonnes, exceeding a scale of 400,000 tonnes per annum.

Radio Angulo reported that the second of three Cuban nickel plants was scheduled to open this week as the industry struggles to resume full production after taking a direct hit from Hurricane Ike two weeks ago.

The report said that repairs are moving forward at the Rene Ramos Latourt plant of Mayari and hoped that the plant can resume nickel production on the 25th September.

The state owned Rene Ramos Latourt is Cuba's oldest and produces around 10,000 tonnes of nickel plus cobalt per year.

The Pedro Sotto Alba plant in Moa Holguin, a JV between Cubaniquel and Canadian Sherritt International, resumed operations a week ago. The Pedro Sotto Alba plant is Cuba's largest and most efficient, producing 33,000 tonnes of unrefined nickel plus cobalt per year.

Ernesto Che Guevara plant in Moa Holguin, with a similar capacity, suffered the greatest damage from the storm and it was not clear when it would open.

Cuban nickel is considered to be Class II, with an average 90% nickel content. Cuba's National Minerals Resource Center reported that eastern Holguin province counted 34% of the world's known reserves, or some 800 million tonnes of proven nickel plus cobalt reserves, and another 2.2 billion tonnes of probable reserves, with lesser reserves in other parts of the country.

It is reported that Maithon Alloys Limited has chosen Visakhapatnam, Andhra Pradesh for its proposed ferroalloy project. Essential ingredients for stainless steel production the project with a capacity of 1.2 million tonnes per annum will mainly produce ferromanganese and ferrosilicon.

Maithon Alloys has proposed to undertake this project through a subsidiary in which the parent company will make an investment of INR 275 crore.

The INR 80 crore project will have a capacity of 28,000 tonnes per annum. Once the new projects are implemented, the company's overall ferroalloys capacity will cross 240,000 tonnes per annum.

Maithon's new ferroalloy unit in Meghalaya would be ready by March in 2009.

European Nickel Plc announces that Mr Robert McLearon has been appointed as company secretary and financial controller, replacing Mr John Sutherland who is retiring.

European Nickel wishes to thank Mr John for all his contribution to the company over the past 7 years.

Gladstone Pacific Nickel Limited is pleased to report its final results for the year ended June 30th 2008.

It said that “It has been a busy year and it is pleasing to report that we have advanced the Gladstone Nickel Project to a point where the company was able to progress negotiations with China Metallurgical Corporation to ensure commercialization of this nationally significant project.”

Gladstone Pacific Nickel has received a proposal for a merger from the Clive Palmer led Resource Development International Limited which when completed would result in shareholders becoming part of RDI, a company formed to acquire a portfolio of resource assets, which is seeking to raise USD 5 billion and list on the Hong Kong Stock Exchange in the coming months.

The 2008 financial year has been packed with corporate and commercial activity and we are confident that the increase in the underlying value of the Company as a result of this activity is not reflected by the current share price.

In August 2007, GPNL signed off on the Ouinne JV in New Caledonia and established a strong relationship with our partner Société Minière Georges Montagnat. This provided impetus for continued operational and organizational growth and increased the Project's strength. Expansion into New Caledonia is consistent with our strategy to ensure high quality long term diversified ore resources are available for the Project.

The Ouinne deposit is proving to be a substantial ore body. Helicopter supported core drilling has confirmed initial expectations that a significant resource will be developed. Drilling is progressing with a total of 5,525 meters of our 9,000 meter drill program completed to date. The JV Board meets regularly providing strong support and constructive input to the JV team. SMGM has proven to be a most efficient and responsible mining company and we are working together to develop additional areas of interest.

The Solomon Islands team has worked patiently to gain support and acceptance for the Project and our objective of obtaining mining rights in that country. Gaining access to the extensive ore deposits on Isabel Island would improve the diversification of ore supply for the future. GPNL will continue to work with government officials and the community to progress its plans to participate in the proposed international tender process.

Keeping alive Mr Andrew Forrest's attempts to access BHP Billiton and Rio Tinto's Pilbara iron ore rail lines, Western Australia High Court has unanimously upheld a decision that access was not being sought to a production process and should therefore be open to negotiation.

The High Court said that "The use by Fortescue of a railway line that was integral to BHP Billiton Iron Ore's production process would not amount to the use by Fortescue of that production process."

The decision relates to just two of BHP’s rail lines that Mr Forrest’s Fortescue Metals Group is seeking to use to transport its iron ore to the coast. But if the decision had gone against Fortescue, it would have probably dashed the company’s attempts at getting any of the big two miners’ railways declared open to rivals.

Instead, it removes one of BHP’s arguments against Mr Forrest’s application, that is, that the railway was part of a production process and therefore not able to be declared under Part IIIA of the Trade Practices Act.

The decision, on BHP’s Newman and Goldsworthy rail lines, held that while the railway was integral to the production process, and part of it, Mr Forrest was not seeking to use the whole process and therefore Fortescue’s proposed use of the railway lines did not constitute use of BHP Billiton Iron Ore’s production process.

With BHP and Rio Tinto indicating in the past they would take all available steps to prevent having to negotiate access with third parties, the dispute will probably drag on for years. They said that giving railway access would vastly reduce their ability to operate and expand efficiently.

Mr Forrest first made his grab for Mt Newman access in 2004 through the National Competition Council. Its recommendation to declare the railways was ignored in 2006 by then Treasurer Peter Costello. That is still being appealed by Fortescue through the Australian Competition Tribunal, with a hearing not due until April next year.

After his initial success, Mr Forrest called for all of BHP and Rio’s rail lines to be declared open and the NCC’s final recommendation, which has not been made public, is with Treasurer Wayne Swan and due for a decision by the end of October 2008.

Rio Tinto Limited said that annual iron ore price negotiations with its customers will become increasingly harder as it moves away selling the valuable commodity under long term contracts and looks to take advantage of high spot prices.

Mr Sam Walsh CEO of Rio iron ore said that it aimed to sell more iron ore through the spot market and hybrid securities contracts.

He added that "I suspect that more ore will move onto a regularly priced basis. That is the basis of our hybrid contracts and the spot market. We are not planning to base more business on the traditional long term contracts basis. It is just not representing market value."

He added that "I suspect that annual price negotiations are just going to get harder and harder. The iron ore pricing system will continue to evolve. The gap between long term contract prices and the spot iron ore price was unfair for producers like Rio Tinto."

Mr Walsh said that "I want redress, hence the very lengthy price negotiations last year, which ultimately led to us increasing our prices by 86 per cent on a weighted average across our product range. We are not going to let go in terms of the difference between what India is being paid for their spot shipments versus what we are being paid for ours, we just simply don't believe that's fair or equitable."

He further added that Rio Tinto planned to sell 15 million tonnes of iron ore on the spot market in 2008.

BNamericas quoted Mr Horacídio Leal Barbosa executive secretary of the Brazilian mining and metals association as saying that Brazilian iron ore production should increase by 60% in the 2008 to 2012 period.

Mr Barbosa said that the Brazilian mining map has been going through daily changes due to an inflow of steel projects and new international players, all attracted by the excellent price of iron ore on international markets. He added that investments planned in Brazil's mining sector today total BRR 95.1 billion.

He said that what is also unfolding from this current boom is a consciousness regarding the necessity of continuous mapping and geological prospecting programs in Brazil. He added that "In a most recent example of how relevant the mineral sector is to our economy, the government of Minas Gerais state announced the launch of a process to accredit companies interested in participating in a bidding process to explore new areas with aero geophysics and geological mapping in the state."

Mr Barbosa noted that iron ore remains Brazil's most prolific mineral product but other minerals have been going through similar growth cycles.

Interfax quoted Unicredit, following a meeting with the company's senior management that Raspadskaya, as saying that it could list on a foreign stock exchange in 2010.

The company thinks coal prices next year will be level with or higher than current levels due to robust demand from Russian and Asian steel producers.

Raspadskaya plans to submit a pricing formula for coking coal supplies to its biggest consumers to the Russian Federal Antimonopoly Service by the end of September.

The FAS is due by the end of September to reach a final decision on the pricing mechanism for coal. It is thinking of pegging Russian coal to Australian FOB prices, although a different approach cannot be ruled out in the future.

Raspadskaya's management thinks a 10% to 15% discount against Australian prices could be possible. In line with the government's recommendations, Raspadskaya intends to prioritize domestic market coal sales and to export any surplus, primarily to Ukraine. The company could also increase exports to India and China after 2010, once a new mine has been commissioned, scheduled in 2010.

Raspadskaya also plans to acquire Greenfield projects, but none of the properties currently slated for auctions fit its criteria.

It is reported that over this year, China coal export volume points to the downside. From January to August 2008 period, Shanxi Province exported 5.68 million tonnes of coke down by 1.6% YoY.

However, owing to the jump in coking coal prices and demand from the international market, coal price has constantly set new records, pushing the overall export value up to CNY 2.6 billion up by 152.3%YoY.

Coke price rise widened the gap between domestic and overseas price. Under such a robust driving force, coal plants exerted their utmost to export coal, leading coal export volume to rebound and thereby reversing the negative growth. From January to August, coal export of Shanxi totaled 3.28 million tonnes increasing by 29.5% YoY. Its export value hit USD 480 million a sharp rise of 158.1% YoY.

(Sourced from MySteel.net)

China Knowledge reported that CITIC Group, the largest state owned investment enterprise in China, shows interest in bidding for the iron ore and coal assets in Aquila Resources, the fourth largest Australian mining company by market capitalization.

CITIC is considering buying both the iron ore and coal assets that Aquila has put up for sale. Last month, the Australian company had assigned investment banks Citigroup and Macquarie to conduct a strategic review and had begun to approach several interested parties on the matter.

According to the report, CITIC Group may realize the acquisition directly or through subsidiary CITIC Resources Holdings.

It is reported that Mr Benjamin Philip G Romualdez president of Philippine Chamber of Mines has urged mining companies and traders to follow the government requirement to get permits for exporting.

As per report, mining companies and traders all need to get the mineral ore export permit from the department of environment & natural resources if they have to export all kinds of minerals and their products.

With the new policy, the government will establish a mechanism to monitor the products for exporting.

Some steel makers are shooting up the building of their own coking capacities while some independent coking enterprises are seeking alliances with coke and steel companies, as coke prices are surging fueled by the substantial coking coal price hikes. Rearrangement in coking sector is bound to happen.

China's coking industry has made great progress especially in 2000 to 2007 when the coke production almost tripled. The figure accounted for 61% of the global total amount in 2007 and the exports of this resource, 45%.

The industry are getting increasingly concentrated in 2007 with 55% of production provided by provinces of Henan, Hebei, Shanxi and Shandong, and 8% by the top four coke firms. Back in 2000, steel enterprises almost contributed half of coke output, while today independent coke enterprises take about 70 %. However, the diving steel prices coke price hikes triggered by rising coking coal have urged many steel makers to set up their own ovens or amplify the existing capacity. Ma'anshan Steel, Taiyuan Steel, Wuhan Steel, Baotou Steel and so on have taken steps in doing so.

The current situation has also caused quite a number of independent coke enterprises to look for cooperation with coal and steel mills by building joint coke ventures. Taking Wuhan Steel an example, it has built up a 10 million tonne coking base jointly with Pingdingshan Coal Group. There is no doubt that the coke industry will be under rearrangement upon the government furthering macro control coupled with decreasing steel demand, partly influenced by the shrinking real estate market.

The coke future, if launched, will be favorable to the macro control of the industry by restricting small and backward capacity entering into the future market with strict quality standards.

(Source: China Securities Journal)

It is reported that the fight for USD 320 million cashbox Cape Lambert Iron Ore has headed into a courtroom in Perth, with challengers to the board seeking an injunction to halt a proposed African investment.

The Supreme Court of Western Australia has reserved its decision on the injunction brought by Hong Kong company Power United, which is controlled by overseas based Australian Michael Manynames Shemesian.

The court granted Power United an interim injunction on September 19th 2008 that stopped Perth based Cape Lambert from completing a USD 100 million deal to acquire 30% of an iron ore project owned by Britain's African Minerals in Sierra Leone.

Just tracking the geography of this battle would baffle most, so it's hardly surprising that Justice Renne Le Miere wants a week to get his head around the dispute.

Shemesian's Power United, which owns 11.5% of Cape Lambert, opposes the African deal and Manynames is seeking to replace members of the board with his own men.

In the meantime, the Sage camp is hoping to poke a legal hole in the Shemesian attack. Power United posted letters and voting forms to Cape Lambert shareholders, but it seems many have not received the documents. Indeed, many who have been long term supporters of the board and hold rather large parcels of shares have not received notice of the vote.

According to Tex Report data, coking coal imports by South Korea reached 1,486,902 tonnes in August 2008, up by 9.2% YoY. The average CIF import price also moved up to USD 280.62 per tonne by 180.3% in the month of August 2008 against the prices in the same month last year.

The total imports included imports of 1,253,298 tonnes of hard coking coal which is 16.3% more than the imports in the same period last year. The average CIF value of this particular kind of coal also witnessed a massive surge of 174.7% reaching USD 278.34 per tonne. 199,488 tonnes of other coking coal was imported by the country at the rate of USD 302.06 in August 2008. Both the imports as well as the average CIF import prices witnessed an increase of 29.8% and 195.4% respectively.

However, the imports of other coking coal with volatile matter less than 22% dipped by 73.6% and reached 34,115 tonnes in August 2008. Nevertheless, the average CIF import price did appreciate to USD 239.16 per tonne, massively up by 173.3%.

Australia emerged as the largest supplier of coking coal with a total of 745,682 tons of coking coal in August 2008 at a rate of USD 281.63 average CIF value. Though the import by South Korea from Australia witnessed a decline of 1.98% but the average CIF import price moved up by 179.58%.

Coal Insights Bureau reported that Central Mine Planning & Design Institute may explore Coal India blocks against the scheme for detailed exploration of non CIL blocks.

According to Infraline, the ministry of coal has agreed to let CIL retain its requirement of blocks to meet demand and asked CIL to allot the remaining for captive mining. Blocks not used by CIL were classified as either coal to liquid or captive.

CMPDIL had submitted details in February 2007 for exploration in 46 blocks 13 captive and 33 non CIL at an estimated INR 893.89 crore. However, approval was granted for only INR 472.94 crore and advised to meet the shortfall through loans or a grant from CIL.

According to Mr Zhu Haiqi board chairman secretary of Nanjing Steel as uninterrupted growth of iron ore prices threatens smooth steel production, many large steelmakers in Jiangsu, like Shagang Group and Nanjing Iron and Steel Co are extending industry chain to the upstream to secure iron ore supply.

He said that Nanjing Steel has achieved fruits of investment on iron ore. Anhui Jinan Mining, a wholly-owned subsidiary and iron ore provider of Nanjing Steel, has brought the company lots of benefits. Currently, imported iron ore takes up 60% of the total demand of Nanjing Steel, and the rest 40% is met by domestic ore.

Mr Zhu said "We're still looking for the ore deposit, we have set up an office in Indonesia for more chances, however, trivial progress is made so far, due to mines private ownership there and uncertainties in the negotiation. He said that recent steel prices decrease have limited negative impact on Nanjing Steel. High value added HR steel plate mainly used on vessels will maintain sound profits even if the export tax rebate is canceled.”

On the other hand, Nanjing Steel will cut its steel prices following the price decrease announcement from 25 mills last week.

(Sourced from MySteel.net)

Daily Times cited a senior official said that Sino Coal a Chinese company and Engro Pakistan Limited have agreed to work jointly for exploiting the Thar coal reserves for power generation.

He said that during the visit of Mr Pervez Musharraf to China, Sino Coal expressed interest for investing in Thar coal reserves for power generation. Now, during the upcoming visit Mr Asif Ali Zardari president of Pakistan to China next month the issue of investment by Chinese company in Thar coal reserves would be finalized.

He said that the current government had allocated INR 500 million in the current financial year 2008-09 Public Sector Development Program for Thar coal infrastructure development. Federal government has directed the Thar Coal authority to complete the bankable feasibility study within 6th month time that would help mining of the coal reserves and determining the tariff of coal based power plants. He said that the said bankable feasibility study would cost USD 15 million that would be generated from financial institutions like World Bank and Asian Development Bank.

Amidst the energy crisis in Pakistan the current government is pursuing the policy to exploit Thar coal reserves that could help generate cheaper power as compared to thermal and hydel power generation.

In this regard, Thar Coal Task Force was formed in 2001 headed by former President Mr Musharraf to carry out a Thar mining bankable feasibility study. The fate of this report on which upfront tariff for coal based power generation was to be based, remains a mystery. Official said that without a credible bankable feasibility, no international investor of merit would show interest in the project.

Chinese Company Shenhua was ready to build the integrated mining and power generation complex at a guaranteed power tariff of 5.75% per unit but NEPRA refused to pay more than 5.34%. The Chinese company packed its operations in Pakistan and went back to China leaving no good sign for the investors interested in coal based power plants.

It is reported that at present, domestic FeMo market weakens continuously and rare deals are closed, which caused sliding FeMo quotations in the Northeast.

Mainstream price of Mo60 in Jinzhou stays at CNY 253,000 per tonne to CNY 255,000 per tonne at CNY 253,000 per tonne to CNY 254,000 per tonne in Henan and at around CNY 254,000 per tonne in Anhui area, the same as quotation in Beijing. Moreover, prices are even lowered to CNY 250,000 per tonne to CNY 252,000 per tonne in some other places.

Many molybdenum plants determine production tonnage in line with sales amid weak market, hit by poor downstream demand and lower bid price from mills, resulting in few spot goods available. As a result, FeMo is expected to weaken further in the future.

(Sourced fromMySteel.net)

It is reported that Coal of Africa Limited has increased the resource at its Vele Project by 63% to 721 million tonnes as it nears completion of due diligence on a proposed partnership with Rio Tinto Limited.

CoAL focused miner has also generated a production schedule for its Makhado Coking Coal Project. The schedule for Makhado, which in July increased its resource to 1.3 billion tonnes, indicates a consistent stream of 5 million tonnes per annum of salable coking coal at an average mining cost of USD 43 a tonne.

In July 2008, CoAL and Rio Tinto agreed to swap some farms in the Makhado Project and contribute certain farms to a JV operation. Due diligence on the agreement is near completion, with state approval expected to be sought in the current quarter.

FE reported coal ministry has issued guidelines that mines cannot be closed without reasons in relation to exhaustion of mineral, lack of demand, uneconomic operations, natural calamity or directives from a statutory organization.

As per report, inflation and NPV rates will be taken into account for deriving the total abandonment cost and the amount to be deposited every month by the mine owner for the same.

Existing infrastructural facilities such as roads, aerial ropeways, conveyer belts, railways, power lines, buildings and structures, water treatment plants, transport and water supply sources in the area and their future utilization will be evaluated on a case to case basis.

If retained, the measures to be taken for their physical stability and maintenance should be described. If decommissioning is proposed, dismantling and disposal of building structures, support facilities and other infrastructure like electric transmission line, water line, gas pipeline, water works, sewer line, telephone cables, underground tanks transportation infrastructure like roads, rails, bridges, culverts, electrical equipments, electric cables and transformers must be described in connection with restoring land for further use.

According to sources, project developers will be entitled to financial assistance for closure of mines. However, the ministry has made it clear that mine owners for projects other than Coal India, Singareni Collieries Company, Neyveli Lignite Corporation and projects of other public sector undertakings will have to open a corpus account.

China Daily reported that the central government will increase its financial support for the Ningxia Hui autonomous region to help develop it as a resource base and a model for circular economies.

Mr He Guoqiang a member of the Standing Committee of the Political Bureau of the CPC Central Committee and head of the central government delegation to Ningxia, at the celebration of the region's 50th anniversary in regional capital of Yinchuan said that Ningxia should be developed as a base of coal resources and the coal-chemical industry. It should also be a base for the electrical power industry and a model for the development of circular economies.

He said that it is particularly important for the region to protect its environment and conserve energy in its development.

BNamericas reported that China's Minmetals has agreed to not exercise its right to acquire 25% of Chilean state owned copper company Codelco's Gaby mine.

Mr José Pablo Arellano executive president of Codelco said that "This is a long term relationship." He added that Minmetals' bond with Codelco.

Mr Arellano said that after decades of being a major buyer of Codelco's copper, Minmetals will continue to be an important strategic partner for the Chilean miner and the companies aim to embark on JVs in and outside of Chile.

With the agreement Codelco will remain with 100% of the Gaby mine's output. It also said that it is scrapping previous plans to auction off another 24% of the mine following the exercise of Minmetals' 25% stake that would have left the mine 49% privatized.

Commissioned in May 2008, Gaby is slated to produce 80,000 tonnes of copper cathode in 2008, 150,000 tonnes in 2009 and 165,000 tonnes per year after an expansion. The mine is located in region II near the company's largest division Codelco Norte.

BNamericas reported that a bill by Bolivia's lower house seeking a ban on unrefined mineral exports would not be able to become policy in less than 5 years due to the lack of smelters in the country. The bill aims to promote the export of value added minerals further downstream than concentrates.

A government spokesperson said that "We do not have the proper technical conditions to apply such a law. This is a project for the future. Being optimistic but also realistic, we only have plants for treating tin concentrates."

The official said that it would be necessary to wait for development of the El Mutún iron ore project to see when the initiative could be carried out for steel products, while copper would depend on the Corocoro plant. For silver, lead and zinc, the initiative would hinge on the Karachipampa operation. The bill will now move on to discussion in the lower house's economic development committee.

In June 2008, Bolivian state miner Comibol and South Korean state company Korea Resources signed a JV to explore and mine the Corocoro copper deposit. The mine will churn out 30,000 tonnes per annum to 50,000 tonnes per annum of electrolytic copper and calls for a USD 210mn investment.

The El Mutún project will require a USD 2.1 billion investment over 8 years to develop half of the deposit and build a steel plant to produce 1.7 million tonnes per annum of sponge iron and 1.4 million tonnes per annum of rolled steel.

According to International Aluminum Institute, Latin American aluminum production has increased by 4.6% YoY to 229,000 tonnes in August 2008 as against 219,000 tonnes in August 2007. Output in the region also totaled 229,000 tonnes in July 2008.

According to the latest figures published by IAI, in August 2008, the global aluminum industry churned out 2.17 million tonnes as compared to 2.12 million tonnes in the same month last year. All of the world's regions increased output in August 2008 with the exception of Africa, where production slipped to 146,000 tonnes from 154,000 tonnes and Oceania, where output dipped to 195,000 tonnes from 196,000 tonnes.

North America churned out the most aluminum in August 2008, at 486,000 tonnes as compared to 482,000 tonnes, followed by East Central Europe which produced 394,000 tonnes as compared to 383,000 tonnes and Western Europe with 390,000 tonnes as compared to 368,000 tonnes.

In Latin America, Argentina, Brazil and Venezuela are covered in the figures provided by London based IAI.

ET reported that Haryana Power Generation Corporation and Indra Prastha Generation Corporation have jointly floated a company for development of a coal block in Madhya Pradesh.

A HPGCL spokesman said that Mara-II Mahan in Singrauli district was jointly allocated under the government company dispensation to HPGCL and the Government of NCT of Delhi in August 2006.

As per report, the block has estimated reserves of 950 million tonnes enough for generating 4,000 MW for the next 25 years. Total area is about 66 square kilometer. The spokesman added that HPGCL would also explore the possibility of establishing a pit head plant at the block site.

Coal Insights Bureau reported that Sanjay Gandhi Thermal Power Station in Birsinghpur has sought a 50:50 coal linkage from Korea Rewa and Korba fields. It is looking at receiving six to 7 rakes per day regularly.

According to Infraline, the standing linkage committee had approved coal linkage of 6.5 LMT per month for the July to September quarter. Linkage has been allocated on 23:77 basis from Korea Rewa and Korba areas, respectively.

However, the unit received some 4.15 LMT less than the approved linkage from July to September 7th. This resulted in a sharp depletion of its coal stock, leading to MP Power Generating Company running units on partial load.

Movement is limited between Bilaspur and Anuppur due to a 140 kilometer single track. According to the railway operation authority, only 4 rakes can be moved. Recently, super fast trains have also been traveling on this track, bringing movement of rakes to a standstill. The committee on economic affairs had proposed coal linkage of 7.25 LMT per month for the plant as of September 3rd 2008.

Project Today reported that work on RKM Powergen's 4x360 MW coal based power project to be set up at Uchpinda in Janjgir-Champa district of Chhattisgarh is expected to commence by November 2008.

The MoEF has accorded clearance on August 26th 2008 for the power project which will be implemented in 4 units of 360 MW each at a total outlay of INR 5950 crore.

RKM Powergen has appointed Fischer India as consultant and South Eastern Coalfields as fuel suppliers for the project and the total land requirement for the project is 1,000 acre of which 50% has been acquired and the remaining acquisition process is underway. The water for the power plant will be sourced from Mahanadi River.

It is reported that China Coal Energy Co Ltd, China’s second largest coal producer, parent state owned China National Coal Group bought back 4.05 million China Coal shares in Shanghai recently.

China Coal Energy said in a statement filed with the Shanghai Stock Exchange, the parent's stake will rise to 57.55% from 57.52%.

The parent company will further increase its stake in China Coal within the next 12 months by not more than 2%.

It is reported that currently, Shanxi Datong coal prices dip modestly due to high stock at Qinghuangdao port down around CNY 20 per tonne with little purchase. However, coal prices at the mine change a little with almost no stock left basically.

Datong's 5500 kilocalorie per kilogram premium blend coal is priced at CNY 780 per tonne to CNY 800 per tonne. Shipment from mine has slowed down, but coal inventory remains low in nearby power stations, because miners are holding for an inflection point in the coal market, but power stations are delaying purchase for a further coal price dip and electricity price rise.

As per report, September is traditional busy season for coal market, but moves weak this year. Coal price soars up in this March and April. It has hit a new record in August. The rapid price surge has led to downward corrections in later days.

Sources said as many mining accidents happened these days in China, Shanxi, Henan, Liaoning and the other places strengthen the mining security check. So, shrinking coal supply will probably lend a support to the price. As winter comes, coal demand for heating will increase from the Northeast, thus, a turning point of thermal coal in Datong Mine is expected to show up soon.

(Sourced from MySteel.net)

ET reported that Neyveli Lignite Corporation will invest INR 6,120 crore for setting up lignite mines and lignite fired thermal power plants in Rajasthan.

Mr JN Prasannakumar acting chairman & MD of NLC said that “We will invest INR 6,120 crore in Rajasthan for setting up lignite mines and power generation capacity of around 750 MW.”

Under the new plan, NLC would set up lignite mines with the capacity of 2.1 million tonnes per annum each in Riri, Bithnok and Hadla. The company has also planned to set up 2 power plants of 250 MW each in Riri and Bithnok. Hadla mine would feed Barsingsar power plant 15 Kilometer away from the mine. The capacity of Barsingsar would double under the new plan to 500 MW.

Mr Prasannakumar said that “Earlier, NLC had planned to invest INR 1,880 crore for setting up 250 MW power plant and a lignite mine at Barsingsar. We decided to invest more after considering high potential of lignite fired thermal power plants in Rajasthan.”

As per report, NLC's total investment in the state would now stand at INR 8,000 crore. Rajasthan has the second largest lignite reserves in the country. The state has 3,099 million tonnes of lignite which is around 6.7% of total reserves of the country. Tamil Nadu has 87% of country's lignite reserves.