November, 30 2005
Supreme Court firm on closure of Kudremukh by December 31
The Supreme Court has refused to review its order directing closure of the Kudremukh Iron Ore Mines Company Ltd KIOCL in Karnataka with effect from December 31, 2005. A bench comprising Chief Justice Y K Sabharwal, Mr Justice Arijit Pasayat and Mr Justice S H Kapadia, thereby, dismissed the review petition by Kudremukh workers.
Kudremukh Shram Shakti Sangathan, a registered trade union, had moved the court seeking review of the October 30, 2002 order on the ground that workers were not given a hearing despite the fact that the order, in effect, would deprive them of their right to continue in employment at the company.
The workers had further alleged that the closure would lead to a loss of assets worth Rs 4,000 crore and the pipeline between Kudremukh and Mangalore Port would go a waste.
TATA Steel reported to be eying Thai plant for acquisition
Tata Steel is reportedly in talks to acquire a Thailand based steel company. Mr B Muthuraman, MD of Tata Steel had said earlier this month that the company is in talks with several companies for acquisition. Tata Steel was also reported to have initiated talks with Anglo American to acquire 79% stake in South Africa-based Highveld Steel.
TopBSP facing coal shortage due to movement problems from Vizag
A meeting of the Visakhapatnam Port Trust, Railways and SAIL will be held shortly to sort out the problems being faced by SAIL with regard to the loading of imported coking coal at the port. Bhilai Steel Plant, which is totally dependent on the Visakhapatnam port for the imported coking coal, is not getting enough coal because of short-loading.
The ports authorities complain of non-availability of sufficient wagons, while the Railways blame them, pointing out that the port-level facilities leave much to be desired.
According to steel industry sources, at least four rakes need to be loaded every day at the Visakhapatnam port to meet the coal shortage at the Bhilai Steel Plant. However, enough rakes are not available. In a normal situation, 2.5 to three rakes of loading would be enough to meet the plant's requirement.
The current shortage of coal at the Bhilai Steel Plant is believed to be due to the inclement weather in the region in September and October. As a result, not only was the arrival of ships with imported coal affected, the dispatches from the port to the plant too were far from satisfactory. Normal loading and movement was not possible for several days. During the period, the plant used up its own stocks. It therefore needs reinforcement not only to meet its own demand but also to build up stock.
Jharkhand drafts new law for faster clearance of proposals
The Jharkhand government has drafted a new law to help investors in getting their projects cleared within a stipulated time period. To promote investors in the state, the industry department has drafted the Industries Facilitation Law (IFL), which will facilitate the Single Window System (SWS).
However the SWS, inaugurated two years ago, are yet to become functional in the state. "The IFL, already functional in 10 other states, gives speedy clearance to investment proposal. The IFL included deemed approval clause. "It means if the SWS keep a project proposal pending even after the maximum stipulated period of clearance, it will automatically get cleared," said an industry department official.
Under IFL, there will be a three-layer committee, which will function at district, state and apex committee. Under the new law, the SWS will be empowered with self-certification provision for the investors. And it will also help investors face the Herculean task of inspection and verification of the projects.
The draft of new law will be tabled at the winter session in the Assembly, likely to be held in December.
Indian infrastructure growth drops to 4.9% in October
Crude oil and refinery led to a drop in the growth of the key infrastructure industries to 4.9% in October, 2005 from 15.8% in the same month last year. However, on sequential basis, the growth of the infrastructure industries which also comprise electricity, coal, steel and cement, increased in October as compared to 2.4% in September, 2005.
According to official figures, the infrastructure industries registered a growth of 4.6% in the April-October period compared to 6.8% in the same period last fiscal.
It was only electricity sector which showed an increase in growth from 3.5% to 7.4% in October, 2005. Coal saw a decline in growth to 5.8% from 11.8 %, steel to 6.9% from 48.4% and cement to 8.6% from 13.8%.
Dr Montek favors increase in royalty for minerals
Indias Planning Commission deputy chairman Dr Montek Singh Ahluwalia said that he favored an increase in royalty rates for different minerals to prevent states from arbitrarily stopping inter-state movement of minerals. Speaking at a national seminar on mining organized by CII, Dr Ahluwalia said that royalty rates in the country were too low to motivate states not to seek mineral processing within the state for additional revenues. If the royalty rates are high, then this problem could be tackled easily, Dr Ahluwalia said.
According to reports, mineral rich states including Jharkhand have prevented movement of their resources to other states and have sought value addition within the state itself in violation of the present mineral policy.
While not putting the blame squarely on the state governments for violating the existing policy guidelines in letter and spirit, Mr Ahluwalia said that in a competitive environment it was not right to force certain things on companies that may affect their operations.
Bangladesh steel mills concerned over TATAs plans
Bangladeshs steel and rerolling mills have expressed deep concern over the deal between Bangladesh and TATA saying that it will leave negative impact on the local industries during at a meeting of Bangladesh Steel Mill Owners Association (BSMOA) and the Bangladesh Re-rolling Mill Owners Association (BRMOA) with the leaders of the Bangladesh Federation of Chamber of Commerce and Industry (FBCCI)
"The government should rethink before giving consent to the agreement for the interest of the nation. The pact will bring no good to the country's economy, rather it will expedite transfer of resources," the mills said. They demanded of the government to make the contents of the agreement public
Addressing the meeting, the aggrieved leaders of the association also urged the government not to allow TATA to produce the products manufactured by the local steel and re-rolling mills.
The BSMOA and BSRMOA put forward another 19-point charter of demands and requested the chief of the apex body to speak for their demands at a higher level of the government.
ISMT on capacity expansion drive
ISMT Ltd, the merged entity of the Pune based Indian Seamless Metal Tubes and Indian Seamless Steels & Alloys, is looking at Brownfield projects to expand its existing capacities. The merged entity is using the de-bottlenecking and technology-upgrade approach to enhance capacity in the immediate future.
We are going for an increase in the installed rated capacity of the plants by de-bottlenecking. Technology will play a vital role, said Mr Rakesh Duda, resident director, ISMT Ltd. The company, however, is not considering any Greenfield projects in the immediate future.
The company has three plants, two tube plants in Ahmednagar and Baramati and a steel production plant at Jejuri close to Pune. The company expects to maintain a top line growth of 25% in the coming three years.
Indian mineral production in September 2005 up by 2.37%
The mineral production in September 2005 increased by 2.37%, as compared to that in the preceding month due to increased production of coal, natural gas, crude petroleum, bauxite, chromite and other minerals. However, it recorded a marginal fall of 1.11% as compared to that of the corresponding month of previous year. The mineral sector has shown a growth of 1.33% during April to September, 2005 as compared to that of the same period of previous year.
The total value of mineral production in the country during the month was Rs.5,293 crore with highest contribution of 39% Rs. 2,085 crore from coal. Iron ore accounted for Rs.491 crore, lignite Rs.164 crore and limestone Rs.133 crore
Production levels of in the month were 29.3 million tonnes for coal, 2.3 million tonnes of lignite, 0.951 million tonnes of bauxite 951, 0.196 million tonnes of chromite and 10. 2 million tonnes of iron ore
Ramsarup group to come out with an IPO
Ramsarup Group announced that it has been given a go ahead by SEBI for an IPO of Rs 30 crore as part of its Rs 120 crore modernization and expansion plans. The company would also raise Rs 45.5 crore-term loan from banks and financial institutions including banks and infuse Rs 3.37 crore from internal accruals in order to meet capital requirements for expansion plan.
Ramsarup Group would invest Rs 67.36 crore for setting up of a structural mill and Rs 9.5 crore for modernization and expansion of TMT plan. It is also looking at down stream integration into the electricity transmission tower business, it said.
Golden Peacock Award 2005 for RSP
The Institute of Directors IOD under the chairmanship of Mr MN Venkatchaliah, former CJ of India, presented the Annual Golden Peacock Award for 2005 to SAILs RSP unit on 7 November. Dr Sanak Mishra, MD, received the award on behalf of RSP
RSP was selected for this coveted award by a panel of judges from 160 most promising industries throughout the country in recognition of RSPs stupendous efforts in developing and adopting innovative ideas and technologies like development of door spraying and lid materials for control of coke oven fugitive emissions, development of environment information management systems (EIMS), which is an on-line system developed on Oracle platform using optical fiber network that helps in getting online environmental status of the RSP.
NANLCO & NMDC sign agreement on nickel plant technology rights
The National Aluminium Company Limited NALCO signed an agreement with the National Mineral Development Corporation NMDC for sharing the rights of the Nickel Technology Proving Plant (Ni-TPP) The project for the nickel plant was initially undertaken by the Regional Research Lab, Bhubaneswar and the technology for extracting the nickel from low-grade laterite nickel ore from Sukinda valley, Orissa has been found technically viable.
Nalco and NMDC have acquired the right to share the nickel and necessary action will be taken through CSIR for obtaining the Intellectual Property Rights (IPR) in favour of Nalco, CSIR and NMDC. Nickel has a strategically important for the country and the Sukinda Chromite Mines is the only available source of nickel in India.
Based on the agreement, Nalco and NMDC will initiate further actions required to examine the feasibility for setting up a suitable plant for producing nickel. Nalco has already obtained two patents one for process for precipitation of alumina hydrate with superior purity and fineness and other for the preparation of low soda, high alpha thermally reactive alumina.
Indian Coal ministry mulls a fund similar to EPF
The ministry of coal has proposed creation of a fund on the lines of existing employees provident fund (EPF) to provide life time social security to families displaced by coal mining activities in the country. As per the proposal being discussed within the coal ministry, the fund would be created in the ministry where mining companies would be asked to make matching contribution to the fund in respect of the amount deposited by members of the displaced families. The coal ministry may also pool in additional budgetary support.
Speaking at a mining seminar here, coal secretary Mr PC Parakh said that the idea behind this fund was to ensure that development work in the country does not result in resentment among displaced families who often face problems from the current rehabilitation and resettlement policies of different state governments. It is impossible to provide job to every member of a displaced family. The fund could help in providing resources to such families to engage into other entrepreneurial activities, Mr Parakh said.
The ministrys proposal also puts liability of the coal companies to guarantee lifetime earnings generated from the displaced land as compensation package. This package could be contributed in parts by coal companies to the proposed fund for use by land losers.
TATA Power set to pick 74% stake in Maithon Power
Tata Power Ltd is finally set to pick up 74% stake in a JV with Damodar Valley Corporation DVCs Maithon Power Ltd. With this, the four-year long stalemate, over commissioning of 1,000 MW thermal power plant on the right bank of Maithon hydel power station of DVC in Jharkhand, is finally expected to end. The project is estimated to cost roughly Rs 4,000 crore.
According to a senior DVC official, the board of directors of the corporation will meet on November 30 to offer Tata Power 74 per cent stake in MPL. The latter is currently a wholly owned subsidiary of DVC.
Though both the joint venture partners have already expressed their intention to start commissioning by June 2006, informed sources say the project could face a stiff hurdle in the inadequate coal linkage. Bharat Coking Coal Ltd, which had earlier assured the complete coal linkage, had recently backtracked from its position and has settled for merely 50 per cent of the requirement. In view of the coal problem, the project may either be delayed or downsized.
Dubai Ports nets Indian box terminals thru P&O buy
A majority of container shipping in India is set to come under the control of DP World, the global ports business of Ports, Customs and Free Zone Corporation, Dubai, following its acquisition of Peninsular & Oriental Steam Navigation Co (P&O), UK. DP World and P&O issued a joint statement of the deal, which would create one of the world's largest shipping companies controlling container terminals in UK, China and India. Container shipping in India is thus set to witness a sea-change following this 3.33 billion (Rs 26,278 crore) deal.
Through this deal the Gulf-based company will have in its kitty India's three major container terminals: Nhava Sheva, Mumbai; Chennai Container Terminal, Chennai; and Mundra International Container Terminal, Gujarat; apart from a share in the Vishaka Container Terminal at Visakhapatnam.
Also, with the development of Vallarpadam Container Terminal by Dubai Ports in Kochi, a majority of the Indian container shipping is expected to be in the hands of the Gulf-State backed company, according to an industry source.
Corus Q3 net income Falls 73%
Corus Group Plc announced that their Q3 profit declined by 73% as costs increased and steel prices declined. Net income fell to 50 million pounds ($86 million) from 188 million pounds. Sales rose to 2.38 billion pounds from 2.36 billion, it said.
The downward pressure on selling prices that began during the first half of 2005 accelerated during the third quarter,'' Corus said in the statement. The full impact of the significant increases in raw material costs was also experienced in the third quarter.''
Chinese Steel Industry must consolidate Mr Aditya Mittal
The Chinese steel industry must consolidate in order for the global steel industry to become truly sustainable and create value over the longer-term, said Mr Aditya Mittal, President and CFO of Mittal Steel Company, on Tuesday while speaking at the WSD/MB Annual Steel Success Strategies Europe Conference in London
Mr Mittal highlighted the highly fragmented nature of the Chinese market, compared with North America and Europe, where considerable consolidation has taken place in recent years. The steel industry is entering a new era where value creation is top of steel companies agendas he said. This is particularly evident in North America and Europe where considerable consolidation has taken place over the last five years. The benefits of this consolidation are now visible with producers adopting a more market-oriented approach to their business. For the first time in the history of the steel industry we have been able to sustain value in an over-supply environment by temporarily cutting production, he said. This is a major step change in the way the industry is behaving and is largely due to consolidation.
However, he continued, these positive dynamics had not been replicated in the China, the worlds biggest consumer and producer of steel. The problem with the Chinese market is that it is still very fragmented he said. In such a fragmented market, it is very difficult for producers to cutback on production in the same way that has been possible for the European and North American producers. He said that the Chinese Government had recognized the problem and had set out plans to address it. The Chinese Government is definitely aware of the problems that fragmentation is bringing. Unlike in North America and Europe, we are yet to see a price recovery in China yet and this is because the Chinese companies are still very much production focused. The targets for consolidation set out by the Government he said, were ambitious but very sensible.
They have said that by 2010 they would like the top ten producers to comprise 50% of total market share rising to 70% by 2020. This would definitely help the sustainability of the industry, not just in China but globally.
Mittal concluded by saying that the global steel industry has definitely entered a new era thanks to consolidation and a new market-oriented behavior. We are definitely seeing a structural change in the industry towards value creation, he said. To date we have seen this most in the European and North American markets. In order for the steel industry to become truly sustainable over the longer-term this also now needs to be replicated in China.
Severstal to focus on internal efficiencies rather than acquisitions
Russian steel producer Severstal, which has grown by acquiring assets, said that it would now focus on internal efficiencies to add value. Over two years, we grew from producing 10 million tons per year to 16 million tons by acquisition. Now, we are going to focus on internal costs and efficiency," said Mr Andrei Laptev, head of strategic planning at Severstal.
Last month, Severstal was cautious at the auction of a 46.12% stake in Erdemir, Turkey's largest producer of flat steel. Its bid was the lowest, at some 35 percent under the highest bid, he said.
JP Morgan likes BHP iron ore price outlook
JP Morgan says BHP investor briefing reiterates company's intention to push for freight premium in tight iron ore market. "Positive mood from the BHP senior executives and we have a favorable view of carbon steel materials and in particular iron ore forecasts 20% price rise.
TopRussia may impose AD on SS flats from EU
Russia may impose an anti-dumping import duty of 800 euros ($931) per ton of nickel-containing stainless steel flat-rolled products from the European Union, the Economic Development and Trade Ministry said on Tuesday. "A recommendation to impose this duty will shortly be sent to the government," a ministry spokesman said.
The country's top producer of nickel-containing flat rolled steel, Chelyabinsk Metallurgical Combine, part of Mechel Steel Group, last year lodged a complaint that the EU had exported products to Russia at low prices.
Arcelor CEO to study ThyssenKrupp's Dofasco offer before next move
Arcelor CEO Mr Guy Dolle said his company will give itself time to study a rival bid from ThyssenKrupp for Canada's Dofasco, which trumps a hostile offer lodged by Arcelor last week, before deciding whether or not to improve its bid. 'It's a new situation. We are studying it and that will take some time,' Dolle said at a conference in Brazil, according to an Arcelor spokesman.
On Monday, ThyssenKrupp said Dofasco's management has agreed to accept a Euro 3.5 billion takeover offer, just days after Arcelor announced a hostile Euro 3.2 billion bid for the company.
Mr Surma to succeed Mr Usher as US Steel chairman
US Steel Corp CEO Mr John P. Surma will become the company's chairman of the board Feb. 1, succeeding current chairman Mr Thomas J. Usher, who is retiring at the end of January as per a company announcement
Mr Surma, 51, joined US Steel as VC and CFO in January 2002 from after the company and Marathon Oil, his previous employer, were spun off from USX Corp. He was elected president and CEO in October 2004.
Mr Usher, 63, has been chairman of US Steel since it was separated from USX four years ago, a move he planned to allow the two companies to focus on their core businesses. From 1995 until 2001, he was chairman and CEO of USX and has remained chairman of Marathon Oil. Mr Usher was responsible for acquiring facilities in Slovakia and Serbia. He also led the acquisition and integration of parts of National Steel in 2003 which doubled the size of the company
South Koreas steel demand to go up in 2006 to 47.4 million tonnes
South Korea's domestic steel consumption is expected to grow next year as a result of brisk growth in manufacturing industries such as automobiles, ships and machinery according to according to the Korean Iron & Steel Association KISA
Nominal domestic consumption of steel products, or domestic demand plus inventories, is projected to rise 1% from this year to 47.4 million tons in 2006, according KISA.
Exports of steel products are likely to increase 3.1% from this year to 16.5 million tons in 2006, the association said. Imports of Chinese steel products are expected to drop 0.7 percent from this year to 18.7 million tons next year.
"The industry suffered from a rise in cheap Chinese imports and a backlog of inventories," said an official from the association. "We will seek to produce more value-added products and accelerate the establishment of an advanced sales system next year to counteract a possible increase in Chinese imports."
BlueScopes Thai unit opens 2nd plant
BlueScope Steel (Thailand) Limited, one of Thailand's leading manufacturers of quality steel building solutions, announced today the official opening of its second metallic coating line at its existing plant at Map Ta Phut in Rayong province, South of Bangkok. The new metallic coating line will produce premium-quality metallic coated flat steel, used in Thailand's construction and manufacturing sectors.
The new facility, constructed on budget at a capital cost of approximately 2.5 billion baht ($86 million), will shortly increase the plant's capacity to produce metallic coated flat steel by 200,000 tones per year to 375,000 tones.
BlueScope Steel's Mr. Kirby Adams, said, "The expansion of the Map Ta Phut plant reflects BlueScope Steel's confidence in the long-term business opportunities offered in Thailand and its local commitment to its customers here. The current economic growth in Thailand is encouraging and we are seeing its effect on the local building and construction market."
President BlueScope Steel Thailand, Mr. Ian Dickson, added, "The products from the new facility will satisfy growing domestic demand, particularly in the growing Thai construction and manufacturing markets." "The Map Ta Phut plant, BlueScope Steel's largest facility in Southeast Asia, has produced our range of premium quality steel products, including the market-leading zincalume and clean colorbond steels since 1998," Mr. Dickson continued.
He said, "The new line has been constructed with dual pot processing capability, which allows us to produce more than 200,000 additional tones of premium quality zincalume aluminium-zinc alloy coated steel and truzinc zinc-coated steel products annually."
CVRD buys 93% of Canico
CVRD announced that it has acquired a 93% stake in Canico Resource Corp. and is extending its tender offer for the rest of the nickel mining company. CVRD, which agreed to buy Canico for 20.80 Canadian dollars ($17.80) per share, said it expects to pay about 876 million Canadian dollars ($750.1 million) for the shares that have been tendered so far.
The company is extending its offer for the rest of the shares until Dec. 8 for Canico shareholders who haven't yet accepted it.
CVRD said it plans to de-list Canico shares from the Toronto Stock Exchange once it has gained control of enough of the company's stock.
Gerdau Ameristeel to resume normal operations at Beaumont Mill
After more than 11 months of negotiations, Gerdau Ameristeel today announced that on December 12, 2005, it will begin to resume normal operations and welcome back the company's 269 employees at its steel wire rod mill in Beaumont, Texas. Operations at the mill were halted by the company in May 2005 as a result of a labor dispute with United Steel Workers of America Local 8586.
"The company has met in good faith with union representatives for more than 11 months," said Mr Philip Bell, Director of Human Resources for Gerdau Ameristeel. "We met on more than 50 occasions but have not achieved an agreement to date. It's time now to get our employees back to work and normalize production."
While the exact terms under which employees will return to the Beaumont mill have not yet been determined, Mr Bell stated that the company and union representatives will meet early next week in hopes of reaching an interim agreement on start-up terms.
With regard to a final contract, Bell continues, "The company and union have reached tentative agreements on many key topics including wage proposals, the length of the contract and most items related to employee health care. However, there are a handful of issues that remain unresolved and negotiations for a final agreement are ongoing."
Gerdau Ameristeel is the second largest mini mill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of steel products. Through its vertically integrated network of 15 mini mills, 16 scrap recycling facilities, and 42 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern two-thirds of North America. The company's products are generally sold to steel service centers, to fabricators, or directly to original equipment manufacturers for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing.
NE China coal mine death toll expected to reach 151
The final death toll in Sunday's coal mine explosion in this Northeast China city is likely to reach 151. The rescue headquarters of the Dongfeng Coal Mine announced that 146 bodies had been found underground and three miners were still missing. Two women workers working in an above-ground generator room were also killed in the blast.
A preliminary investigation found that the accident was caused by lax management policies regarding coal dust, which is more prone to ignite at a certain density. Mr Jia Jiguo, head of Longmei Mining, admitted that before the blast "there were signs showing high dust density." Experts said the best course of action then would have been to stop production. But production in the mine continued even after a meeting on November 22 to deal with the situation.
BlueScope on track to triple Asia capacity
Australia's BlueScope Steel is on target to triple its capacity in Asia by 2008 with major investments in China, India, Thailand and Indonesia, the company said.
CEO Mr Kirby Adams attended the opening of a new $A86 million metallic-coated flat steel plant at Map Ta Phut in Thailand, where capacity is raised by 200,000 tonnes a year to 375,000 tonnes. BlueScope Lysagth Thailand is building an $A18 million pre-engineering building manufacturing facility near the Map Ta Phut plant, due to start operations in the second half of 2006. Mr Adams also signed an agreement with TATA Steel recently for two facilities in India. BlueScope is also expanding its Cilegon plant, just west of Jakarta, with extra capacity set to be ready by 2008. The company is also preparing to announce further successes from investments in Vietnam.
"By the time we get to calendar 2008, BlueScope's capability in Asia will be three times the capability we had in 2005. So this is going to be a period of enormous growth for the company - lots of new employees, lots of ribbon-cutting," Mr Adams said.
BHPs carbon steel material division to register solid growth in 2007
BHP Billitons Carbon Steel Materials, the most profitable division of the mining giant, is poised to register solid earnings growth in the 2007 fiscal year, according to Macquarie Research Equities MRE. The division reinforced the analysts views of a strong outlook for iron ore, coking coal and manganese markets at an analysts meeting with management yesterday.
Carbon Steel Materials is expected to generate as much as 50% of BHPs earnings in fiscal 2006. BHB continues to trade on undemanding multiples and at a modest premium to valuation, said MRE.
Mr Akhmetov to run for Ukrainian parliament
As per a report in a local daily, Mr Rinat Akhmetov, named by Forbes as Ukraines richest man, will run for a seat in Parliament on a ticket of the Regions Party, an opposition group, party leader Mr Viktor Yanukovych said. I offered Rinat Leonidovych Akhmetov to enter the party and to run for Parliament, Mr Yanukovych said. He gave a positive answer.
The development indicates that Mr Akhmetov and Mr Yanukovych have been recovering from their split shortly after Mr Yanukovych had lost presidential election to Viktor Yushchenko in December 2004. Akhmetov built much of his business empire in Donetsk when Mr Yanukovych had been the governor of the region
Mr Akhmetov, whose wealth was estimated by Forbes at $2.4 billion in a snapshot in February, assets include steel companies, coal mines, media firms and a popular soccer club. System Capital Management, or SCM, a holding company that manages most of Mr Akhmetovs businesses, has assets worth $12.1 billion according to a recent study by Ukrainian Rating Agency.
Chinese coal supply sufficient for 2006
China's coal production is expected to rise 4.9% over this year to 2.16 billion tons in 2006, more than enough to meet demand which is also expected to rise next year. This information was released by the Development Research Center of the State Council last week. The report predicted the country's total coal consumption will be 2.1 billion tons in 2006, up 6.65%. Demand for coal is expected to rise this year by 7.4%.
The slowing of the rate of increased coal consumption next year compared with this year is mainly due to government policies that have decreased investment in sectors such as cement, aluminum, steel and real estate, the report said.
Conservation and more efficient coal consumption along with the introduction of substitute energy sources are also reasons for the slower increase in coal consumption, said the report. It also predicted coal production in 2006 would not be affected by the closure of many small coal mines this year.
Mr Dollreceives "2005 France-Brazil personality of the year" prize
The France-Brazil Chamber of Commerce awarded its "France-Brazil personality of the year" prize to Mr Guy Doll Arcelor's CEO, at an official ceremony, which took place in Rio de Janeiro (Brazil) on Monday, 28 November. The award of the prize represents recognition of the ongoing support provided by Arcelor and its CEO to the expansion of the steel industry in Brazil and to the consolidation of strong economic links between Brazil and Europe, with the utmost respect for Brazilian citizens.
Mr Guy Dollsaid "This award recognizes of the work of our Brazilian and European teams, who constantly reinforce their exchanges by peer-to-peer cooperation. When I visit our factories in Brazil, I am impressed by the quality and diversity of the management and of the men and women in our teams. They deeply personify the human values in which I believe. They are the future of this country".
This prize, created five years ago by the France-Brazil Chamber of Commerce, rewards a French or Brazilian public personality for contributing to strengthening Franco-Brazilian relations through his/her commercial, political, cultural, philanthropic, academic or sports activity. In previous years, it was awarded to Mr Mauricio Botelho, president of Embraer, Mr Carlos Ghosn, president and CEO of Renault, and other major players committed to reinforcing ties between France and Brazil.
EBRD approves loan of Euro 25 million to Mittal Steel Macedonia
The European Bank for Reconstruction and Development EBRD has approved a loan of Euro 25 million to Skopje-based Mittal Steel unit. "The loan will provide an additional working capital for the company, as an essential component for business development, better energy efficiency and promotion of the steel industry regional integration, in particular with the "Mittal Steel" plants in Romania and Bosnia & Herzegovina," Prime Minister Mr Vlado Buckovski said Monday at the loan agreement signing ceremony.
For the last 15 years, EBRD has financed about 30 projects, which are very significant for Macedonia and its efforts to meet European functional economy standards, Mr Buckovski said, adding that the Government will keep supporting cost efficiency projects that promote environmental protection and contribute to Macedonia's overall development.
Bulgarian Kremikovtzi posts 14% increase in sales in H1
Sofia-based steel plant Kremikovtzi posted H1 non consolidated net sales of levs 454.2 million, up from levs 400 million last year. The company said half-year loss narrowed to levs 19.66 million from levs 31.03 million a year ago.
The assets of the steel maker, acquired in August by India's Global Steel Holding Limited, fell in value to levs 1,186 million from levs 1,211 million
BlueScope CEO dismisses steel glut by China
CEO Mr Kirby Adams dismissed concerns that China's steel output, to meet increasing demand there, could cause a glut on the regional market. Mr Adams dismissed "doomsayers'" predictions that the growth in China's steel industry over recent years was a "catastrophe waiting to happen". "That's simply not proved itself that way," he said.
"China's demand for steel continues to grow; its per capita consumption of steel remains far below that of developed nations and I believe there will be periods of time where China's capacity exceeds its demand and there'll be periods of time when demand exceeds its capacity. That's just a situation the world's steel industry is going to live with."
Adams was also optimistic that the prices of raw materials such as iron ore and coking coal had reached their peak. "We've been on record saying we don't believe these prices of iron ore or coking coal for that matter is sustainable. The increases last year were one of a kind, they were extraordinary."
Adams said the prices for long and flat steel products had been coming down in recent months and "in normal circumstances, raw material prices would follow and I believe that's the expectations of most steel companies in the world"
Centennial Coal reports clearing of fault zone in Newstan Longwall
Centennial Coal Company Limited has announced that the Newstan longwall has now successfully mined through the remainder of the faulted zone. This follows previously announced production difficulties at Newstan and now it will resume normal production and mine the remainder of the current block, being 1.2 kilometers in length containing approximately 1.3 million tonnes of coal
It is expected that Newstan will commence its next longwall changeover in April 2006, during which the new $10 million armored face conveyor will be installed.
Chinas export of coal down by 1.2% during January to October
According to the information released by the General Administration of Customs, China exported 6.18 million tons of coal in October, up by 12.1% compared with the same period last year. In the first ten months of this year, Chinas total export of coal reached 60.76 million tons, down by 15.2% over the same period last year.
China is the largest producer and consumer of coal in the world and its total production of coal hit 1.59 billion tons in the first ten months, a rise of 7.99% over the same period last year.
Chinas annual export of coal is about 10% to 15% of the worlds total trading volume. 80% of Chinas coal is exported to Japan, Korea and Taiwan.
Dongfeng mine flouted safety rules before disaster
Miners repeatedly complained that poor safety standards would bring disaster to the state run Dongfeng colliery, but mine managers quashed any dissent and took no action, angry relatives said. Families desperately waiting for news of the 149 miners dead or missing at the mine in Qitaihe city in the northeastern province of Heilongjiang accused the management of sacrificing their men in the drive for profit
They all knew there were safety problems but they wouldn't do anything about it, said a woman. She said the management ignored their pleas and that desperation drove the miners back down the pit.
The Dongfeng mine, owned by mining conglomerate Heilongjiang Longmei Group, was fully licensed with an annual capacity of 500,000 tons a year, government authorities and officials with the company have said.
EPA passes mine expansion plan recommendations
The Environmental Protection Authority EPA has passed on its recommendations to the WA Government regarding BHP Billiton's proposal to expand one of its iron ore projects orebody 25, just east of Newman in the Pilbara. The EPA says there will be little impact on flora or fauna. The EPA's assessment and recommendations are subject to appeal until December 12.
EPA Chairman Mr Wally Cox says BHP's mining below water tables needs to be properly managed. "When the company first came to the EPA the proposal was to do a deep-pit and not to backfill the pit," he said. "That could have led to the water table over time going saline. As a result of BHP's investigations, they came to the view that they would now backfill the pit to overcome that problem."
Aker Philadelphia shipyard building 10 ships
Aker Philadelphia Shipyard has begun production on the second of ten vessels in the product tanker build program announced last spring. Steel cutting for the ship, the sixth built by the yard since its opening five years ago, begins just weeks after keel laying for the first tanker in the series. The second vessel is scheduled to be completed in 2007.
The steel plates were cut on one of the yard's two state-of-the-art plasma cutting machines. Once finished, the pieces will form part of the engine room of the 46,000 DWT product tanker. Upon completion, the tankers will be owned by American Shipping Corporation, a subsidiary of Aker American Shipping.
Aker Philadelphia Shipyard Inc., formerly known as Kvaerner Philadelphia Shipyard Inc., is the shipbuilding subsidiary of newly-established Aker American Shipping. Aker American Shipping and Aker Philadelphia Shipyard, Inc. are members of the Norwegian-based Aker family of global companies, industry leaders in the fields of shipbuilding, fishery, and technology-based solutions for customers in oil, gas, energy, and process industries
Sojitz, Chinese firm to export steel equipment
Sojitz Corporation of Japan has formed a tie-up with an engineering unit of China's Wuhan Iron and Steel (Group) Corporation, under which they will export steelmaking equipment to such markets as India and Russia. The Wuhan engineering unit mainly manufactures equipment used at blast furnaces.
Sojitz believes the Wuhan unit's products will be more competitive than those of Japanese manufacturers because of their distinctly lower prices. With Wuhan Iron and Steel also ramping up production capacity, Sojitz aims to expand its own orders for Japanese-made rolling equipment and other products that the Wuhan engineering unit cannot provide.
The Sojitz Holdings Corporation unit's steelmaking equipment operations, which consist primarily of selling products from Japanese manufacturers abroad, generate 60 billion yen (US$502 million) in annual sales. Sojitz expects to handle about 10 billion yen in new orders through the tie-up in fiscal 2005. Although equipment deliveries will likely be concentrated to Wuhan Iron and Steel in the beginning, Sojitz hopes to hike sales outside China by supporting the Wuhan unit's exports.
Union still fighting to save Corus steel jobs
UNION leaders have not given up hope of persuading Corus to retain a steel-making capacity at Workington. Mr Roy Rickhuss, assistant general secretary of Community, had a long meeting with CORUS officials and said afterwards that Corus, which intends closing the rail making plant in July, would respond to various proposals in the next few weeks.
He said: Things have changed since Corus made their original proposal and we believe there will be an increased demand for steel not just for rail links but other projects. However, we do appreciate that Corus will have to invest in the Workington plant to keep a presence here.
Corus revealed in September that rail-making in Workington, where 250 people are employed, would cease on July 28 next year.
Neenah Foundry announces results for 2005
Neenah Foundry Company has announced fiscal 2005 consolidated net sales of $541.7 million and consolidated net income of $15.1 million. The net sales for 2005 represent a 20.2% increase over the $450.9 net sales recorded in fiscal 2004.
The additional revenue is attributed to stronger sales in the markets in which the Company participates coupled with the steel scrap surcharge that compensates the Company for higher raw material costs. The net income for 2005 represents an increase of $11.8 million or 463.8% over the $3.3 million recorded in fiscal 2004. The increased volume coupled with the ability to pass through increased raw material costs accounted for most of the difference in net income.
Neenah Foundry Company manufactures and markets a wide range of iron castings and steel forgings for the heavy municipal market and selected segments of the industrial markets. Neenah is one of the larger independent foundry companies in the country, with substantial market share in the municipal and various industrial markets for gray and ductile iron castings and forged steel products.
Ukraine to get EU market-economy status
KIEV Ukraine is set to win European Union recognition as a market economy, a British government spokesman said Tuesday, a move that would help ease its integration into the West and make it easier for the country to trade with the Union, especially in steel, of which Ukraine is a large producer. The EU plan to grant such recognition is "on the basis of the commission's assurance that Ukraine meets the technical requirements for market-economy status," Allen said.
Mr Tony Blair, the British prime minister and holder of the Union's rotating presidency, will announce the plan at a summit meeting on Dec. 1 in the Ukrainian capital, Kiev, said Mr Jonathan Allen, a British government spokesman in Brussels.
Market-economy status would signal greater European trust in Ukraine by ensuring that the Union used Ukrainian data for trade inquiries affecting the country. The Union uses other nations' figures to calculate "antidumping" levies against Ukraine. EU antidumping duties cost Ukraine 200 million to 300 million a year
Finning announces C$33 million sale to Western Canadian Coal
Finning International Inc announced that its Canadian division has secured the sale of 18 pieces of Caterpillar equipment to Western Canadian Coal Corp. and its intended contract partners Ledcor CMI Ltd. and Pelly Construction for the development of the Wolverine Mine near Tumbler Ridge in northeast British Columbia.
The equipment package, valued at approximately C$32.6 million, consists of five Cat 789C haul trucks (190 ton capacity), five Cat 785C haul trucks (150 ton capacity), four Cat D10T tractors, a Cat 16H motor grader, a Cat 992 wheel loader, a Cat 834H wheel dozer and a Cat 385 excavator. The equipment is being delivered during the latter part of 2005 and the first quarter of 2006 and is being used for pre-production stripping, as well as mining operations.
"We are pleased to have been selected as the equipment supplier to Western Canadian Coal Corp and are committed to maintaining an excellent relationship and providing unrivalled customer service," said Mr Ian Reid, president of Finning Canada.
Finning International Inc. is one of the world's largest Caterpillar equipment dealers. The Company sells, rents, finances and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and South America (Argentina, Bolivia, Chile and Uruguay). Finning also owns Hewden, the largest equipment rental business in Europe.
Fushan stainless steel producers raise prices
At recent meeting in Fushan, stainless steel producers urged to adjust their supply demand balance to stop the falling prices. At the meeting, a decision was made to raise the price of stainless steel 201 2B rough edges by RMB300/tons and the price of stainless steel 201 2B slit edge by RMB200/ton. Another RMB500/ton increase was announced for all 200 serious products effective December 1.
The Chinese stainless steel market is currently characterized by disproportion between supply and demand.
European Nickel approves feasibility for Turkish Nickel
European Nickel PLC of UK approved the feasibility study for the Caldag Nickel Project in western Turkey to be produced in collaboration with Australian Aker Kvarner.
The Caldag Project will produce annually 21.400 tones of nickel in a mixed hydroxide product which will be sold to refineries. The capital cost of the project is estimated at $ 250 million.
