November, 24 2005
TATA Steel & BlueScope sign formal deals for Indian JV
TATA Steel and BlueScope have formally signed a joint venture agreement to form a new company to market the products in the SAARC region. The JV will invest Rs 1,200 crore on four manufacturing locations in India and a network of sales offices across SAARC to manufacture zinc and aluminum coated and roll formed steel products and deliver pre-engineered and other building solutions in the South Asian region.
The new company would construct a new, state-of-the-art metallic coating and painting facility at Jamshedpur adjacent to Tata's existing steelworks unit, it said. The facility would have a metallic coating capacity of 250,000 tonnes and with a paint line capacity of 150,000 tonnes annually, it said.
PHDCCI asks for reduction in excise duty to 8%
Punjab Chamber of Commerce & Industry PHDCCI today urged the Centre to reduce the Central Excise duty on iron and steel to 8% from 16% to enable the industry to compete in the global market. The industry chamber in a memorandum to the Ministry of Finance, has said that iron and steel products fall under the category of the key sector of manufacturing and fluctuating prices coupled with excise duty was affecting the main and secondary producers of steel.
Earlier, Central Excise duty had been reduced to 8% in February 2004 while it was increased to 12% in July 2004 and again to 16% in March 2005, making a 100 per cent jump within one year.
PHDCCI has also urged the government to grant the cast iron pipe industry full exemption from payment of excise duty so that it might get a boost.
Paradip port may invite fresh bids
Paradip Port Trust PPT is reported to be mulling over inviting fresh bids for constructing three berths - two clean cargo berths and one deep draft berth and for cancellation of earlier tenders, floated nearly a year ago. Alternatively, the port might opt for modifications of the earlier tenders, it is learnt.
PPT had short listed, Adani Port and Sical for the clean cargo berths and for the deep draft, there were several bidders, including BHP Billiton, Nobel, L&T, Essar and Gammon.
The reason being given for the re tendering of the clean cargo berths is the need for shifting the location of the berths. The location earlier identified for the construction of the berths, it is now felt, will be unsuitable in view of the massive expansion of the port in future. The re-tendering or modification of the earlier tender of the deep draft berth has become necessary because the port authorities now feel that any deep draft berth, which will handle Panamax or super Panamax vessels, should not be reserved for handling only one type of cargo, namely iron ore and that too for exports instead, there should be provisions in the berth also for handling coal
The port handles large quantities of coal, both for coastal shipment and by way of imports.
Mr Chetan Tolia to head TATA Steel-BlueScope JV
BlueScope Steel and TATA Steel JV has announced that Mr Chetan Tolia will be the MD of the joint venture company. The announcement was made at a ceremony in Australian company's headquarters where TATA Steel MD Mr B Muthuraman and Mr Kirby Adams CEO and MD of BlueScope Steel signed the agreements and exchanged documents.
Mr Tolia joins the new venture from TATA Steel, where he was chief of strategy and planning. Mr Tolia has also worked in another Tata Steel joint venture company, Tata Ryerson India Limited.
Mr Tolia said "This joint venture will deliver steel based building solutions to the construction Industry. The customers will benefit from the increased speed of construction, wider design options, on-site assembly of factory manufactured components, improved site safety and reduced wastage. This will overall enhance the way the building and construction industry operates today.
BEML bags orders worth Rs 368 crores from mining companies
Bharat Earth Movers Ltd on Wednesday said the company has bagged orders to the tune of Rs 368 crore during October 2005.
The company bagged these orders from coal companies and NMDC, Hyderabad for the supply of dozers, dump trucks, motor graders, high capacity excavators and rope shovels
CBI unearths Haldia Port iron ore plot encroachment
It is reported that some officials of the Haldia Port are involved in helping exporters to pay less money for the space allotted to them for dumping their consignments mostly iron ore. CBI officers inspected 10 such sites and discovered that most of them have been encroached by the exporters.
It is reported that many of these exporters have also encroached upon adjoining lands for dumping their consignments and paying money only for the land officially allotted to them
MoU signed for railway line to Krishnapatnam port
MoU for the construction of the 113-kilometre Obulavaripalle-Krishnapatnam railway line was signed on Tuesday. Once the project is completed, the new rail line is expected to provide a logistic advantage to Krishnapatnam port, especially for iron ore exporters and coal importers over its potential competitor Ennore port in Tamil Nadu.
The project will be executed by the Krishnapatnam Rail Road Company Limited, a special purpose company which has already been incorporated for the purpose. The company is jointly promoted by the Rail Vikas Nigam Limited (RVNL), Krishnapatnam Port Company Limited (KPCL) and the state government, with an equity ratio participation of 30:30:13 per cent respectively.
Mr JP Shukla MD of RVNL said that the project would be taken on a fast-track mode. He urged the state government to ensure the land acquisition required for the project at the earliest. The government is providing the land towards its equity share in the project.
Nannapaneni said that the new railway line promises to make Indian exporters and importers from the region more competitive in the international markets and make interior areas of Rayalaseema region in the state accessible to the coastal areas. The area to be benefited by this rail line would extend right up to the Bellary-Hospet sector of Karnataka, apart from southern Andhra Pradesh
The Obulavaripalle-Krishnapatnam railway line project is expected to be completed by June 2008 coinciding with the completion of Krishnapatnam ports development work. Infrastructure major Navayuga Engineering Limited had recently acquired 74% equity in the Krishnapatnam Port Company Limited. The traffic potential at Krishnapatnam port is estimated at 8.6 million tonnes by 2010 and 14.1 million tonnes by 2016.
International mining exhibition in Kolkata
An International mining exhibition will be held in Kolkata on January 2006. The exhibition that is expected to be participated in by more than 800 delegates from India and abroad, is being organized by The Mining, Geological and Mectallurgical Institute of India (MGMI), headquartered at Kolkata.
The exhibition will offer a platform to the coal and mineral producers, and manufacturers of mining machinery and equipments to develop a shared vision to guide global mining and metallurgical community.
The event is supported by the Ministries of Coal & Mines, Steel and Petroleum & Natural Gases.
Kanishk Steel buys Lamfir rolling mill from Italy
Chennai based Kanishk Steel Industries Ltd is reported to have purchased a 150,000 tonnes old steel re rolling plant from Lamifer of Italy and plan to reinstall it at Mayiladuthurai in Tamil Nadu
It is reported that Kanishk paid the Italian company Rs 16 crore for the plant, but the total cost of the project works out to Rs 52 crore.
Arcelor announces $3.75 billion offer to acquire Dofasco Inc.
Arcelor SA made a C$4.4 billion (Euro3.2 billion; US$3.75 billion) offer for Canadian steelmaker Dofasco Inc on Wednesday. Arcelor announced that it was making a "very compelling offer" directly to shareholders because it had been unable to reach terms with Dofasco's management despite several approaches this year.
Arcelor will be making an all cash take over bid for all of the outstanding common shares of Dofasco Inc. for C$56.00 per share, which represents a premium of approximately 27.3% over the closing price of Dofasco's common shares on November 22, 2005 of C$44.00, and a premium of approximately 46.4% over the closing price of Dofasco's common shares on November 10, 2005 of C$38.25, the last trading day prior to speculation as reported in the press about a possible acquisition of Dofasco. Full details of the offer will be included in the formal take-over bid and circular documents to be mailed to Dofasco shareholders. Arcelor will formally request a list of Dofasco's shareholders and expects to mail the take-over bid and circular documents to Dofasco shareholders as soon as possible following the receipt of the shareholder list.
Mr Guy Doll CEO of Arcelor, said the proposed transaction would be Arcelor's largest investment in North America to date, reflecting Arcelor's strong confidence in Canada and in Dofasco, its management team and its world-class employees. "Dofasco's leadership in the North American automotive market is highly complementary with Arcelor's strategy to expand its foothold in this significant market. The combination of Arcelor's global leadership in automotive steel and Dofasco's strong position in this highly competitive market creates even better conditions for both companies, built on the unique strengths each brings to this relationship. Dofasco would become Arcelor's platform in North America", said Mr Guy Doll
Mr. Dolladded "This transaction represents a logical expansion for Arcelor into North America. As such, Arcelor intends to maintain and strengthen Dofasco's present scope of activities by providing it with access to Arcelor's best in class technology and know-how particularly for the automotive market and Arcelor's global reach and network. As part of the Arcelor group, Dofasco will become a stronger, more competitive steel producer in an increasingly competitive North American steel market."
Mr. Dollrecognized Arcelor's long-standing relationship with Dofasco, particularly through their joint venture, DoSol Galva Limited Partnership, based in Hamilton, Ontario. "We have been very pleased with our investment in Hamilton to date. Dofasco's highly regarded corporate values with respect to its relations with employees, and its legacy of active community engagement, are principles that Arcelor shares and will continue to support."
Mr. Dollnoted that intense international consolidation in the global steel industry makes the combination of Dofasco with another player inevitable: "Canadian steel producers, regardless of their current competitiveness, are not immune to the forces driving consolidation around the globe. For Dofasco, the question is not if it should join forces with another industry player, but when, and with whom. We strongly believe that Arcelor is the best partner for Dofasco and that this is the right time". Arcelor has approached Dofasco on several occasions, starting in the first half of 2005 with a view to exploring the possibility of an acquisition. While Dofasco's management and Board of Directors engaged in some dialogue in connection with the most recent proposal, the parties were unable to reach terms that were acceptable. Accordingly, Arcelor has decided to make this very compelling offer directly to Dofasco's shareholders.
Chinese still mills and iron ore miners headed for price showdown
Iron ore miners and Chinese steel mills are headed for a showdown over annual price negotiations with China tipped to demand lower iron ore prices. Many Chinese steel mills are struggling to hold their heads above water after this year's 71.5% cent increase in the benchmark price of iron ore, according to China's biggest steel maker Baosteel.
The big three iron ore miners, Australia's BHP Billiton and Rio Tinto and Brazil's CVRD, negotiate annually with Chinese and Japanese steel mills to secure benchmark prices, which will be settled early in 2006. Japan traditionally sets its benchmark prices first and AME Mineral Economics associate director Mr Dallas Horadam is tipping Japanese mills will agree on a higher price for iron ore supply. "AME forecasts a 20 per cent price rise for iron ore fines in Japanese financial year 2006," Mr Horadam said.
However industry consultancy Caiani & Co director Mr Carlo Caiani believed China, which has now overtaken Japan as the world's largest importer of iron ore, would not agree to higher prices and was instead pushing for a price reduction. He said as China grew its own domestic iron ore production it had more bargaining power with the big three miners. "We firmly believe that they are gearing up for one of the hottest, contested, iron ore price negotiations we have seen in a long while," Mr Caiani said at the Asia Pacific Iron Ore Conference. "We are predicting a 20 per cent reduction in iron ore prices this year," he said.
Water supply failure halts production at Mechels Chelyabinsk plant
Mechel has reported that its subsidiary, Chelyabinsk Metallurgical Plant, has had an accident and has resulted in stoppage of production at all shops except coke batteries. No deaths or injuries at the plant resulted. The cause is attributed to failure of a water pump resulting in interruption of supply of water to various shops. The production at the plant is likely to be resumed today
"We are thankful that there were no injuries associated with this incident. All resources at our disposal are currently being used to restore the production to full capacity and to minimize the effects of this incident," said Mechel's CEO Mr Vladimir Iorich.
Mechel is one of the leading Russian mining and metals companies. Mechel unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.
Dofasco responds to unsolicited Arcelor take over bid
Dofasco Inc. announced that its Board of Directors is reviewing an unsolicited all-cash takeover bid from Arcelor S.A. Dofasco's Board of Directors is reviewing the offer in the context of the company's alternatives to maximize shareholder value. "The Board will give due consideration to the Arcelor bid. Pending the Board's recommendation, shareholders are urged not to tender to the offer", said Dofasco Chairman Mr Brian MacNeill.
To assist in this analysis, Dofasco's Board of Directors has established a Special Committee of independent directors comprised of Mr Brian MacNeill, Mr Roger Doe, Mr Frank Logan and Mr Peter Maurice.
Additionally, Dofasco's Board has retained RBC Capital Markets as financial advisors in the process, and Fasken Martineau DuMoulin LLP as its legal counsel.
Qasco Dubai awards bar mill project to Via Pomini Italian firm
Qasco Dubai, an affiliated company of Qatar Steel Company Qasco, has awarded Italina Vai Pominia contract for the construction of bar mill project with an annual production capacity of 300,000 tonnes and is expected to commence production by the first half of 2007.
Speaking on the occasion Mr Sheikh Nasser Bin Hamad Al Thani, Chairman of Board of Directors of Qasco Dubai said that the decision to expand steel production facilities was in response to the ever increasing demand on its products in various markets and the new plant will be capable to meet the demands.
China's Baosteel confirms price cut on some products
Baoshan Iron & Steel Co Ltd Baosteel said it will cut prices on some of its steel products by at least 10%. A media relations official said that the price cut by China's largest steelmaker will range from 200 to 1,200 yuan per ton. However the official did not provide a timeframe for the proposed cuts or say which steel products will be affected. 'Flat products and most of the construction steel products have been coming under a lot of pressure. We don't know how long this situation is going to last because many joint ventures have been set up, so there could be even more capacity,' she added
Mr Geoffrey Chen, an economist with Daiwa Securities in Hong Kong, said Baosteel's move was not a surprise but it is an indication of market weakness. 'Even though Baosteel's prices are a slight premium to the market prices... in a way it was still telling you that the market was actually still pretty bad,' he said. 'We still feel Baosteel is keeping a kind of premium, even to the market price. In a nutshell, what we can say is that Baosteel is actually kind of a laggard in terms of price,' Mr Chen said.
SDI prefers Minnesota for iron nugget plant
Northeastern Minnesota is the preferred site for the world's first commercial iron nugget plant, say officials of Steel Dynamics Inc., the plant's primary customer and a major partner in the proposed $170 million facility. For months Minnesota and Indiana have been in the running for the Mesabi Nugge plant, which would produce 600,000 metric tons per year. The taconite concentrate needed to feed the plant is produced in the region, Minnesota holds the advantage in production costs.
Mr Mark Millett, VP of SDI said "If we go forward, Minnesota is the preferred site." It's the first public indication from a major partner in the project that the large-scale production of iron nuggets is headed for Northeastern Minnesota.
A 6,000-acre abandoned mine site at the former LTV Steel Mining Co. near Aurora is his choice for the first nugget plant. The property once operated as Erie Mining Co. Now owned by Cleveland-Cliffs, it's called Cliffs-Erie.
Nuggets would be about 97% iron, they would sell for a much higher price than iron-ore pellets that contain about 65% iron. Iron nuggets could be fed into electric arc furnaces and used by foundries.
Partners in the project are SDI, Cleveland-Cliffs Inc, Kobe Steel and Ferrometrics Inc of Two Harbors.
Allegheny Ludlum increases electrical steel surcharge for December
It is reported that Allegheny Ludlum Corp will raise electrical steel surcharge to $340 per ton for December shipments following the footsteps of AK Steel from the current surcharge level of $315 per ton.
TopCazaly inclined to BHP in Pilbara land battle
Cazaly has announced that it intended to enter into a MoU to sell iron ore from its disputed Shovelanna deposit to BHP, which Cazaly snatched from under Rio Tinto's August and has since been locked in a dispute with the giant over its ownership. Further details of the MOU with BHP are expected to be released today. The deal with BHP is conditional on Cazaly being granted the tenement.
Cazaly has committed to a drilling program with partner Echelon Resources and has also secured financial backing from British banking group Investec
Fortescue Metals lodged a writ in the Federal Court yesterday, claiming it was the rightful owner of the land. Fortescue alleges Cazaly joint MD Mr Nathan McMahon breached an agreement which gave Fortescue pre-emptive rights to iron ore tenements he pegged. Mr McMahon would not comment on the legal action yesterday, but the company said it was confident Fortescue's threats were "without substance".
Rio has appealed to Western Australia's State Development Minister Alan Carpenter to dismiss the application on the grounds of public interest, but Mr McMahon said the group was well placed to win that fight.
PSM privatization - Mills land not included the deal
Mr Abdul Hafeez Sheikh, the privatization minister, has said that land owned by Pakistan Steel Mills PSM will not be included in the proposed privatization deal.
He responded to a call in the senate that out of the 4.5 million tonnes of steel used in the country annually, the mill was currently producing only one million tonne and two million tonnes of steel was produced by the private sector, while the rest was imported. He said investment worth $1.2 billion was needed to enhance the capacity of the Steel Mills.
He also informed the senate that privatization was a difficult process and it will be their endeavors that a company of good repute comes to Pakistan. The deregulation process of Steel Mills earlier in place was fair and still it is fair. He also assured that employees of PSM will be taken into full confidence.
About Dofasco
Hamilton, Ontario has been the home of Dofasco since 1912, when Mr CW Sherman founded the Dominion Steel Casting Company to manufacture castings for Canadian railways. Later named Dominion Foundries and Steel, the company merged with its subsidiary, Hamilton Steel Wheel Company in 1917. The name was officially changed to Dofasco Inc. in 1980.
Today Dofasco Inc is one of North America's most progressive and profitable steelmakers, and a market leader Dofasco's operations hub is its steelmaking complex and head office in Hamilton, Ontario. Nestled in the centre of Canada's industrial heartland, the state-of-the-art Hamilton plant includes three blast furnaces, three coke plants, a basic oxygen steelmaking plant, an Electric Arc Furnace, two slab casters, a hot strip rolling mill, cold mills, galvanizing lines, two tube mills, and Canada's only electrolytic tinning line.
Dofasco produces high quality flat rolled and tubular steels and laser-welded blanks, and is Canada's only producer of tinplate. It produces hot rolled, cold rolled, galvanized, ExtragalTM, GalvalumeTM, tinplate, chromium-coated and pre-painted flat rolled steels, as well as tubular products and ZyplexTM, a proprietary laminate
The automotive industry is their single largest market. Other major customers include construction, energy, manufacturing, pipe and tube, appliance, container and steel distribution industries. Dofasco is a leader in steel products for residential framing, and a premier supplier of cold rolled steel for appliances.
Dofasco ships more than 4.8 million tons of steel annually.
Dofasco Inc. net income has been reported as $5.2 million for Q3 2005, $59.2 million for Q2 2005, $78.2 million for Q1 2005 and $376.9 million for 2004
Mr Don Pether is the President and CEO since May 2003. Mr L Allen Root is the Executive VP and COO since May 2003. Mr Brian E Aranha is the VP Commercial, Mr Walter W Bilenki is the VP Finance, Mr David S Borsellino is the VP Manufacturing and Mr J Norman Lockington is the VP Technology
Steel tubes production on track to reach 1.8-1.9 million in 2005 in Brazil
As per a report in a local daily Mr JosAdolfo Siqueira, ED of tube industry association Abitam, Brazilian steel tube industry is on track to reach earlier forecast figures, as it has already produced 0.9 million tonnes in the first half of the year with exports accounting for almost 200,000 tonnes
This year's forecast falls short of 2004 sales of US$3.4bn and 2 Million tonnes of production in part because demand has weakened. "Steel tube production is strongly linked to the demand factor," Mr Siqueira said. Next year's production is due to total 2.0M-2.1Mt, "pushed by an election year, which stimulates investments," he said, adding other growth factors include "projects in the oil, gas and naval areas."
Meanwhile Abitam is working closely with engineers to expand steel tube use in the construction sector. "We are investing in training and support to boost the steel tube in a medium-to-long-term base," Mr Siqueira added.
Abitam was established in 1957 to develop Brazil's metal pipe and accessories business. Association members include tube and metal product producers Atubo, Belgo-Mineira, INOX Tubos, Schulz and Tupy.
Stelco announces $30M federal contribution & definitive deal with Mittal Steel
The federal government is giving Stelco Inc. $30 million as the steelmaker looks to finally refinance and exit bankruptcy protection. The money is earmarked for the Hamilton-based steel makers electricity generation project, part of the upgrade program Stelco has wanted to undertake since it filed for bankruptcy protection in January 2004. The government contribution to Stelco's cogeneration project will be made through Environment Canada's Partnership Fund and is expected to be paid during the first quarter of 2006. Cogeneration would take the waste gas from Stelco's steelmaking facilities in Hamilton and Nanticoke and turn it into electricity which will reduce the steel maker's hefty energy bills.
The steelmaker also announced Wednesday that it has signed a final agreement to sell three of its subsidiaries to Mittal Steel for an undisclosed price. The company had announced a tentative deal with Mittal at the beginning of November. Mittal Canada Inc., a subsidiary of the world's biggest steelmaker, Mittal Steel Co. NV, is acquiring Stelwire in Ontario, Stelfil in Lachine, Que., and Norambar in Contrecoeur, Que.
The United Steelworkers initially put up a fight against selling subsidiaries. The union argued that the company should keep all of its divisions together, but union leaders later said the subsidiaries would be better off with new ownership.
Arcelor ratings unaffected by hostile bid for Dofasco S&P
Standard & Poor's Ratings Services said its ratings and outlook on Arcelor SA are unchanged following Arcelor's announcement of a C$4.3 billion hostile bid for Canadian-based steelmaker Dofasco Inc
S&P said 'Arcelor's financial profile is currently strong for the rating category and acquisitions of this type are factored into the ratings.' The agency added: 'This is provided that the group does not increase leverage beyond the point where it could no longer satisfy the target of funds from operations to net debt.' 'Dofasco's above-average business risk profile would fit in well with Arcelor's global expansion strategy toward the high-quality end of the steel market', S&P said.
Bekaert moves on in China
After the recent inauguration of its new production facility for advanced materials and coatings in Suzhou in Jiangsu Province, Bekaert also wants to further expand its activities in advanced wire products in China. The sustained growth of the market and Bekaerts determination to continue to play a leading role as a worldwide top quality supplier to its local and international customers in China requires the company to further invest.
With the decision taken in May 2003, Bekaert increased its production capacity for steel cord products for tire reinforcement in China up to 120,000 tonnes annually. This investment program raised Bekaerts annual consolidated capital expenditures for 2004-2005 to approximately Euro160 million and involved the construction of a new plant in Weihai in Shandong Province, the expansion of the plants in Jiangyin in Jiangsu Province and in Shenyang in Liaoning Province
In order to cooperate closely with its Chinese customers and enhance the development of high quality tires, Bekaert has already established a leading edge technical center in Jiangyin. In the last years, a portfolio of innovative new steel cord products is being developed for the specific needs of the Chinese truck tire industry and an increased demand for these products has already been witnessed.
Bekaert is now working on the implementation of a further increase of its production capacity in China by at least 50%. This new investment program will also increase the activity level of the engineering department in Jiangyin which acts as an important equipment supplier. The total investment amount will be in line with previous programs in China
Bekaert is a European based company, headquartered in Belgium, employing 16 400 people. Bekaert, present in 120 countries, generates sales of Euro 2.7 billion.
BHP and Fortescue fight over Pilbara rail network
It is reported in an Australian daily that representatives of BHP Billiton and Fortescue Metals Group argued at an iron ore conference in Perth over the access to the Pilbara iron ore rail network.
In defense of BHP's position to continue to keep the network to itself, BHPB iron ore and carbon steel materials president Mr said. "The Pilbara rail system is not a rail network it is part of an integrated production system." He said the National Competition Council had found that part of the rail system was not, "which is a little bit hard for me to understand and I don't believe it is particularly rational". "At the end of the day, that will be decided by the Federal court after a lot of money has been spent," Mr Hunt said. "The simple view about open access to the rail system, while forgetting about the other upstream and downstream issues, is utter irrational nonsense.What tends to get lost in this argument is the difference between an open network and some kind of commercial rail freight agreement. That is about opening up a rail system to allow people to run their own trains on the network. "This is a bit like someone deciding someone else has the right to live in your spare bedroom and then the debate is about how much rent they have to pay.The other major problem is we don't actually get our trains to run on schedule. "There's a lot of variability due to a whole host of factors, so the ability to run a fixed time table is virtually impossible. And that is with us controlling the whole network. "So how can we agree on a time table with someone else, when we can't even stick to our own?"
Speaking from the conference floor, Fortescue Metal Group executive Mr Julian Tapp said his company was not interested in BHPB's facilities either up or down stream. "What we are seeking is the right to negotiate terms of access and we don't understand why BHPB will not talk to us rather than hide behind the current rail transport scenario," Mr Tapp said. "What we are asking for is not the right to stay in your spare bedroom but the right to stay in your hotel and not necessarily to eat your food." Why don't you come and talk to us and see if we can reach a commercial deal rather than using the courts?"
Mr Hunt responded: "We don't own a hotel, we sold the hotel in Newman five years ago."
Ukrainian coal miners keep striking underground
Some of the miners working in Karbon Shakhtyorsk coal mine in Donetsk region, refused to come to the surface after having decided to strike underground on November 22nd. About 30 miners take part in the underground strike, said the Deputy Shaktyorsk Mayor Mr Mikhail Shcherbak.
The representatives of the strikers and the local authorities have departed for Kyiv Coal Ministry in order to solve he problem. The miners have laid down one more condition concerning the residential fuel supply.
WRF to sell off old iron ore tenement
Investment manager WRF Securities says soaring commodities prices have convinced it to sell an iron ore exploration license that dates back to its previous life as a miner. In 1999 WRF, formerly known as Western Reefs Ltd, shifted its focus from rocks to the finance industry and it now has about $300 million in funds under management.
But the Perth-based company retained an application for an exploration permit for iron ore in the Mt Constance region in north Queensland which it now plans to gain and sell off. WRF has signed a native title agreement with the local Waanyi people and forwarded its license application to Queensland government for approval.
WRF managing director Mr Rob Nichevich said developments since 1999 now made the tenement an attractive prospect. "The substantial increase in iron ore prices over the past two years combined with improvements in mining and beneficiation technology have significantly changed the economic parameters and development potential of the project," he said. Mr Nichevich said BHP had carried out exploration in the area between 1956 and 1963 before turning its attention to the Pilbara.
It identified a resource, not compliant with the current JORC standards, of 245 million tonnes with a grading of 51.3% iron ore and 9.4% silica.
AK Steel shares rise 10% on news of Dofasco & Stelco subsidiaries news
Shares of AK Steel Corp. jumped 10% during trading on Wednesday as investors reacted to speculation of industry consolidation when Arcelor made a $3.75 billion hostile takeover offer for Canada-based Dofasco Inc and Mittal Steel also announced that its Canadian subsidiary has entered into a definitive agreement to acquire Norambar Inc, Stelfil Ltee and Stelwire Ltd
TopEchelon pulls out of Heron ore purchase
Echelon Resources says it won't acquire the Western Australian iron ore assets of nickel developer Heron Resources as had been agreed as it had not been able to complete a number of matters with Heron.
The junior recently announced it would fund a $2.5 million drilling campaign at the Shovelanna project, if Cazaly Resources was successful in being awarded the tenement
United Coal announces White Mountains expansion
United Coal Company has announced its purchase of the assets of White Mountain Mining Co. White Mountain's operations and reserves are located in Raleigh County. United Coal says the purchase will add more than 60 million tons of recoverable high-quality, low-volatile metallurgical coal to its reserves.
The acquired assets are two active deep mines -- Josephine #2 and #3 in the Pocahontas #2 and #3 seams and a coal preparation plant and rail loading facility in East Gulf. Additionally, the company acquired the idled Affinity mining complex, consisting of a slope mine, coal preparation plant and rail loading facility in Affinity and a lease on a large virgin block of Sewell coal known as the Weirwood reserve.
UCC plans to increase production from the Josephine #2 mine, reopen the Josephine #3 mine, and expand the existing high wall and surface mining operation.
"This makes our third acquisition since The United Company re launched United Coal," Mr Michael Zervos, president and CEO of UCC, said. "UCC was known as a coal powerhouse. We have a plan of growth through acquisitions and expanding reserves that will rival our former success."
"Our plan is to ramp up production aggressively from these assets and begin offering this low volatile coal with other high- and mid-volatile reserves in United Coal's portfolio," Mr Zervos said. "Doing so will allow us to become a preferred provider in the metallurgical coal markets to both domestic and international customers."
United Coal is a privately held company, with subsidiaries in West Virginia and Eastern Kentucky. It is owned by The United Company, a diversified holding company headquartered in Bristol, Va
BHP buys 10 locos from Downer EDI for hauling iron ore in Pilbara
Downer EDI Limited (Downer EDI) today announced that its Rail division, EDI Rail, will provide a further ten heavy haul diesel electric locomotives to BHP. The additional order brings to 23 the number of locomotives ordered by BHP for their Pilbara operations in the North West of Australia following the signing of the original contract in December 2004.
The locomotives, the SD70ACe model with 4300 traction horsepower and 16 cylinder engine, are being manufactured by EDI Rail's technology partner Electro-Motive Diesel (EMD) at their facilities at London, Ontario, Canada.
Thirteen locomotives from the original order have been delivered to Port Hedland in Western Australia for testing and commissioning by EDI Rail and are expected to go into service for BHPBIO in December 2005.
EDI Rail is Australia's leading rolling stock provider with comprehensive design, manufacture, maintenance and refurbishment capability. Downer EDI is an Australian top-100 company, which provides comprehensive engineering and infrastructure management services to the public and private transport, energy, communications and resources sectors in Australia, New Zealand and Asia.
Drax says takeover talks end
Drax Group Ltd, owner of Europe's largest coal-fired power station, said on Wednesday it has ended takeover talks with a U.S. consortium over a 2.23 billion pound ($3.8 billion) offer and aimed to go ahead with its share flotation next month.
The company, which meets 7% of Britain's electricity needs through the 4,000-megawatt plant, said in a joint statement with the BCHP consortium that negotiations had ended.
Ryerson Tull appoints director
The Board of Directors of Ryerson Tull Inc. has appointed Mr Dennis J. Keller to the company's board of directors. Mr Keller is chairman of the board of DeVry Inc. and DeVry University Inc.
Mr Keller holds an undergraduate degree in economics from Princeton University, and an MBA from the University of Chicago.
Chaparral Steel names Mr Dickert as COO
Chaparral Steel Co has announced promotion of Mr William H. Dickert to VP & COO. Mr Dickert joined Chaparral Steel in 2001 and was VP of marketing and sales,
Chaparral Steel is one of the largest producers of structural steel products & steel bar products in North America with two mini-mills located in Midlothian, Texas and Dinwiddie County, Virginia that together have an annual rated production capacity of 2.8 million tons of steel.
Finland's Rautaruukki plans to buy land in St Petersburg
Finnish metal-based components supplier Rautaruukki announced in a press release Wednesday that it is negotiating the purchase of a 20-acre plot of land with St Petersburg city authorities. The company already operates in St Petersburg, but plans to expand its operations in Russia as a part of its overall strategy for the near future.
The company established its first production unit in Russia in the mid-1990s. Currently, Rautaruukki manufactures steel roofing and components in St Petersburg.
