November, 20 2005
Former PM urges current PM to prevent closure of KIOCL
Former PM Mr H D Deve Gowda has urged PM Dr Manmohan Singh to intervene and prevent the closure of Kudremukh Iron Ore Company Limited KIOCL. He said the KIOCL's case need to be presented strongly before the Apex Court because mining operations had to continue till another alternative was found. ''It is our Endeavour to save the company in the interest of the nation and the state to protect the livelihood of 10,000 direct and indirect employees who will be rendered jobless if mining operations are closed.''
He also urged PM to advise the Law and Environment and Forest ministries to engage the services of the Attorney General or Solicitor General so that they could arrange for an early hearing of the case pending before the Supreme Court well before the December 30 deadline set by the court to stop mining operations at KIOCL.
Indian steel giants have a chance to contribute to peace process
Pakistan President Pervez Musharraf, during the international donors' meet to mobilize funds for reconstruction for earth quake hit North West Pakistan, has appreciated the help received from New Delhi. "The earthquake has created a unique feeling of togetherness, of an urge to help each other," the President said. "The challenge of this earthquake can be converted into an opportunity of lifetime which was never available to India and Pakistan to improve relations," he added.
Mr Musharraf issued an appeal to the Indian business community and said that the Indian steel industry could lend a big help in the reconstruction efforts by providing corrugated sheets. In his address, Mr Musharraf said that India has pledged $25 million aid and "we can buy steel sheets from India to build houses in the earthquake-hit areas".
NTPC to set up captive coal mines
As part of measure to make it less dependent on Coal India Ltd (CIL), National Thermal Power Corporation (NTPC) has decided to set up captive coal mines to produce at least 50 million tonnes of non-coking coal by 2012 when the corporation will require about 225 million tonnes of power grade coal to generate about 46,000 MW of thermal power.
NTPC's current annual coal requirement is about 108 million tonnes, including about 4 million tonnes of imported coal. The corporation has asked CIL to augment its production to ensure uninterrupted supply of coal to NTPC's existing and new thermal power projects to be completed before the end of the Eleventh Plan.
Iron ore key to global steel scenario
The iron ore industry has experienced a once in a life time boom period with a price rise of 71.5 % during April 2005-06, driven by the ever increasing appetite of global steel giants led by Chinese mills. The first price settlements came fairly early in March, but the continuing negotiations were more vociferous and public than earlier. The final result, an increase of 71.5 % and more for pellets, is a reflection of the strong demand for steel and hence iron ore. The price hike is the biggest ever recorded and prices in real terms are now approaching the levels of the 1970s.
The price negotiations for supplies during April 2006-07 are starting, with Chinese mills leading the pack from users side instead of traditional Japanese mills. The oversupply situation for steel resulting in crash of prices is making the situation difficult for steel mills to accept these levels or a further hike in iron ore prices, as expected by the miners. Camps are being formed on both sides and statements being made to reinstate their goals in these negotiations.
Global iron ore production rose by 11 % in 2004 to reach almost 1 200 million tonnes. Brazil continues to be the largest producer at 270 million tonnes, and Australia is number two at 241 million tonnes. Brazil passed Australia as the largest exporter for the first time at 219 million tonnes compared to 211 million tonnes. China is the largest importer of iron ore, accounting for a third, 208 million tonnes, of global imports.
The total iron ore capacity expansion pipeline contains almost 300 million tonnes of new projects planned to come on stream until 2007. In the period 2008-2012 another 250 million tonnes of capacity are planned. Iron ore producers seem to be convinced that the boom will continue and that there will be room for significant additional capacity.
It appears likely that 2006 will still see high prices for iron ore, since the balance between supply and demand will be expected to remain tight but the crucial time is likely to be in 2007, when the market will be finely balanced and on the point of turning. Miners seem to have upper hand for at least one year and are likely to dictate the prices
NLMK likely to go for London listing this week
One of Russias biggest steel groups, Novolipetsk Steel NLMK, is expected to announce a London listing, this week, valued close to 6 billion to catapult Mr Vladimir Lisin, a Russian metals tycoon, to international prominence.
NLMK has hired merchant banks UBS and Merrill Lynch to handle the listing.
Earlier this year the Russian financial regulator gave Novolipetsk the authority to list up to 25% of its equity abroad. Bankers had expected the group to list no more than 10% of its shares in the form of global depositary receipts in Britain, enough to raise nearly 600m, but sources close to the company last night said it could still decide to list a greater proportion
Mr Lisin, who started his working life as a welder in a coalmine, owns 90% of Novolipetsk, with the listing valuing his holding in the group at about 5.4 billion. Lisins rags-to-riches tale has made him a symbol of the renaissance of Russian capitalism. After working as a welder he attended university, and rose through the ranks of the steel industry to emerge as deputy head of a large steel mill. He then went to Moscow, eventually joining a trading group called Trans-World. When the Trans-World partners split up, Lisin took the Novolipetsk operation as his share.
NLMK is Russias fourth-largest steelmaker but is regarded as its most consistently profitable. Last year it turned over $4.5 billion, and had earnings before interest, tax and depreciation of $2.6 billion. Just under 5% of its equity is listed in Moscow, although the market is illiquid and few shares change hands.
NLMKs move will confirm London as the preferred location for Russian firms looking to list abroad. In the past year Russian companies have raised more than 2.5 billion through the sale of global depositary receipts in Britain. Sistema conglomerate, Evraz Holding, Pyaterochka the retail group, and Novatek the gas combine, have all listed in London in the past 12 months.
PSM Privatization - Bidding on December 31
Federal Minister for Privatization and Investment Dr. Hafeez Sheikh said that bidding for Pakistan Steel Mills would be held on December 31. He clarified that only plant was being privatized and not the land.
A committee has been constituted on November 17th to undertake a ground check of the area being considered for a core steel plant and ancillary facilities and recommend only the strategic areas required for the operation and expansion of the entity.
The Privatization Commission has received 19 Expressions of Interest in response to its invitation to offer up to 75% shareholding in the PSMC to a strategic investor. Of the 19 parties, 13 parties had submitted their SoQs for the purpose of pre-qualifying and proceeding to the next stage of the privatization process
VAI Power Coiler for hot strip mills
VAI, a division of the Siemens Group Industrial Solutions and Services (I&S), has introduced a new down coiler for hot strip mills which is referred to as the Power Coiler. With this solution thicker and more rigid steel strip, such as high strength steel grades, can be coiled more accurately with less strip slippage and scratching, as well as with a lower total power consumption in comparison with conventional down coilers. The new coiler will be installed for the first time in mid 2006 at the hot-strip mill of Arcelors Sollac Fos sur Mer, France, and at the new hot strip mill of Mittal Steel Poland in early 2007.
This is made possible through the pre bending of the incoming strip with a specially designed pinch roll, wrapper roll improvements and with the use of automatic step control. The fully hydraulic pinch roll, located upstream of the coiler mandrel, is equipped with high speed position and pressure control. It works in conjunction with the first wrapper roll unit to pre bend the incoming strip around the mandrel, which is the main reason for the reduced power requirements of the coiling unit.
VAI, a division of the Siemens Group Industrial Solutions and Services (I&S), is one of the world's leading engineering and plant-building companies for the iron and steel industry as well as for the flat-product-rolling sector of the aluminum industry. The Siemens Industrial Solutions and Services Group (I&S) is the s of systems and solutions for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation, operation and the entire life cycle. I&S uses the electrical and technical products of other Siemens Groups in order to enhance productivity and improve competitiveness of companies in the sectors of metallurgy, water treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, intelligent traffic systems and industrial services.
Coal mine flood traps 14 in Hebei
A coal mine flood early on Saturday has trapped 14 people in north China's Hebei Province and rescue work is going on, the local work safety supervision bureau said.
A spokesman with the bureau said Yuanda Coal Mine, a collectively-owned mine in Neiqiu county of Xingtai, was flooded at around 5:00 a.m. and all the 14 miners working down the pit were trapped. Yuanda coal mine reports an annual output of 60,000 tons.
This is the second fatal mine accidents in Xingtai in two weeks. Cave-ins at three plaster mines on Nov. 6 have caused 33 deaths and left at least four missing.
US Coal industry facing experienced miners shortage
Caught between strong demand and an ongoing labor shortage, some coal producers are offering pay hikes, improved benefits and bonuses in an effort to attract new miners and to keep existing employees from being raided by competitors. "Companies are almost bidding for the experienced miner right now," said Mr Bill Raney, president of the West Virginia Coal Association.
It is reported that an electrician who signs a non-compete clause can earn $25,000 in bonuses over three years at Massey Energy Co, Central Appalachia's largest coal operator, Massey, which has increased its work force by 1,100 to about 5,600 since the beginning of 2003, has also developed several other measures to attract and keep its workers, such as zero premium health insurance; a purpose built heath center closer to where most of its miners work; and discounted auto and home insurance policies.
Still, more than half of Massey's new employees are leaving before their first year on the job to take jobs with competitors. The surge in coal spot prices has led companies to reopen sixty nine mines in the region last year, according to the U.S. Energy Information Administration.
Mr Don Blankenship, Massey's chairman, president and CEO, said that despite developing various perks, "I would have to report to you that I'm not making the progress on retention that I thought we would." "We're continuing to try to find an answer to finding young people to come into the industry and stay," he said. Speaking at a recent investors' conference, Massey's COO Mr Chris Adkins likened the movement of miners between producers to a "round robin play." When a competitor hires away an experienced worker, "we immediately go and hire a miner operator back from another guy," he said.
Holding on to new underground coal miners is a particular challenge, because of the difficult working conditions and the more specific skills that need to be developed, officials said. Training new workers at open pit mines, where some skills overlap with construction jobs, takes about two months, but it can take underground miners between six to 18 months to come up to speed.
Siemens to replace converter at Mexican AHMSA
The Siemens Group Industrial Solutions and Services (I&S) has announce in the last week of October that it will supply a new 65 ton replacement LD converter to the Mexican steel producer Altos Hornos de Mexico SA de CV AHMSA. Start up is scheduled for August 2006. This project will also include the supply of a new trunnion ring as well as the VAI-CON Link suspension system. The contract value is EUR 1.67 million.
The converter features an improved design and increased specific volume compared with the existing converter. The VAI-CON Link suspension system replaces the previous lamella-suspension system, which allows unimpeded expansion and distortion of the converter vessel during operation in addition to its maintenance-free equipment.
With an annual steel production of 3 million tons of liquid steel AHMSA is the largest integrated steel producer in Mexico and is situated near the town of Monclova, in the center of the Mexican state Coahui. AHMSA operates two steel works which produce a wide range of flat-steel products, including hot-rolled coils, wide plates, cold-rolled coils, tinplate and tin-free steel. AHMSA is also the country's largest manufacturer of structural shapes, offering a wide range of products used primarily in the construction industry.
VAI, a division of the Siemens Group Industrial Solutions and Services (I&S), is one of the world's leading engineering and plant-building companies for the iron and steel industry as well as for the flat-product-rolling sector of the aluminum industry. The Siemens Industrial Solutions and Services Group (I&S) is the integrator of systems and solutions for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation, operation and the entire life cycle. I&S uses the electrical and technical products of other Siemens Groups in order to enhance productivity and improve competitiveness of companies in the sectors of metallurgy, water treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, intelligent traffic systems and industrial services.
Negotiations for Tractorul Brasov privatization in final stage
The tractors producing plant from Brasov, Romania has to be restructured even if it will not be privatized, said Vice Premier Mr Gheorghe Pogea and that that negotiations with Indian company Mahindra & Mahindra are in the last stage. The Government agreed with the restructuring program compiled by the state companys management, and approved in Thursdays meeting two decisions regarding collective lay offs and subsidies granted to those intending to purchase tractors.
The restructuring program stipulates that a total of 1,455 workers will have to be laid off and technological endowments reorganized. The second Government decision regards allocation of an additional ROL 150 billion to the fund destined to help individuals or agricultural companies to buy tractors. When this program was launched in April, Government committed to pay for 45% of a tractors price.
The Vice-premier declared that the Government kept its promises to the company, adopted the two decisions, but did not force any restructuring plan on Tractorul. He indicated that the measures are meant to help the company get back on its feet.
