November, 05 2005
SAIL to take over Idcol ferro-chrome unit in Orissa
It is reported that Steel Authority of India Ltd SAIL, is planning to take over Orissa government-owned Idcol Ferro Alloys Corp. Talks between SAIL and the state government are at an advanced stage. We are in talks with SAIL for the handing over of the unit, state industries minister Mr Biswa Bhusan Harichandan told press.
Established in 1969, the unit is having a 9MVA submerged ARC melting furnace with capacity of 12000 tonne of high carbon ferro-chrome and a 6.5 MVA open ARC melting furnace with capacity of 8000 tonne of low carbon ferro-chrome.
The unit is linked with the captive chromite mines at Tailangi in the Sukinda area which promise an estimated 6.3 million tonnes of high grade ore.
Jai Balaji bags Jharkhand coal mine
Jai Balaji Sponge Iron has been allocated a coal mine located at Bundi in Jharkhand, which has a reserve of 34 million tonnes. The ministry of coal has offered this mine to Jai Balaji along with another company. The production from the mine will start in two years from now. However, the company has to draw up a mining development plan now. The development cost would be around Rs 40-50 crore and that would be borne by the two companies.
Jai Balaji will get about 8 million tonnes from the reserve. Mr Aditya Jajodia, CMD of Jai Balaji Group, said the reserves would suffice its captive consumption for the next 30 years at the present level of production.
The sponge iron making capacity of the company now stands at 1.05 lakh tonnes with an 18-mw power plant.
Jai Balajis plant is located at Mangalpur near Ranigunj and their captive consumption of coal at the present level of sponge iron production of 0.1
It is learnt that the company pays about Rs 1,500-1,600 per tonne to procure coal. It has links with Coal India for the same. Once the captive mine comes into production, the cost per tonne would go down by 50 per cent to Rs 700-800 per tonne.
PSL bags Rs 71 crore contract from HPCL
Steel pipe manufacturer PSL Limited has bagged pipe coating contract worth Rs 71 crore for HPCL's Mundhra-Delhi Pipeline Project.
"We are participating in two major contracts worth Rs 321 crore for HPCL's Mundhra-Delhi pipeline project. We expect to complete the orders before March next year," MD Mr Ashok Punj said.
RINL slash prices for long products
Long products major Rashtriya Ispat Nigam Ltd RINL has cut prices by Rs 1,000 a tonne, in view of the cheap imports from China and Ukraine. But it is reported that even after the price correction, the gap between the prices of imported products and domestic products was around Rs 1,000 a tonne.
The most affected categories in long products are rebars and wire rods.
Build own operate policy in VSP opposed by union
The CITU district committee opposed the setting up of additional thermal power plant and air separation plant for the expansion of RINLs Visakhapatnam Steel Plant VSP, on Build Own Operate BOO basis. The committee alleged that it was a ploy by the Central Government to privatize the VSP
CITU district general secretary Mr AA Sarma said that the new facilities cost Rs 1,000 crore, which the VSP could mobilize from internal accruals
Indian industry bodies hail national steel policy
Industry chambers have welcomed the National Steel Policy NSP cleared by the Union Cabinet on Thursday as a move that would help the industry become globally competitive, while major producers like SAIL reserved their comments, saying they would react after reading the fine print.
"The NSP paves the way for India to emerge as a leading supplier of steel to the world in the years to come," apex Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said, hailing the Cabinet decision.
Assocham said: "The long-awaited steel policy was necessary for the industry that is aiming at a compounded annual growth rate of 7.3%, which is a befitting way of rendering the domestic steel industry globally competitive.
POSCO reacted cautiously and said: "We hope the policy would smoothen our investment process."
SAILs Bhilai Steel Plant earns record profit
SAILs Bhilai Steel Plant BSP has registered its highest profit of $352.59 million (Rs.16.03 billion) in the first half of the current fiscal 2005-06. BSP, has recorded an impressive growth of about 25% in the period, compared to the Rs.12.84 billion profits during the corresponding period in 2004-05.
The BSP also posted its highest second quarter profit of Rs.8.15 billion as compared to Rs.7.33 billion in the last fiscal.
"Despite the drop in steel prices and increase in cost of raw materials, BSP made impressive profits," MD Mr RP Singh said.
Indian steel companies alliance to file case to hold back import tide
It is reported that, stung by a deluge of imports, Indian steel companies are now gearing up to file an anti-dumping case with the commerce ministry. It is reported that SAIL, Ispat Industries, Essar, JSWL and RINL, which are members of Indian Steel Alliance ISA, are meeting next week to work out the next course of action. ISA sources said the case could be filed in 7-10 days from now. ISA is likely to file the plea with the commerce ministry. However, individual companies may file cases as well, sources added
There are two ways the companies can establish the anti-dumping case. They have to prove that volume of imported steel is 3% of the market size. On the other hand, they have to establish that the cost of production including the finance charges and depreciation is more than the FOB. price of import.
Steel imports have swollen by 60% in the first six months of this fiscal to touch 1.1 million tonnes, thereby depressing domestic prices. The industry has collated last six months data, which is vital for filing the anti-dumping case. Steel firms have to prove that the FOB price of imported steel is less than the cost of production by the domestic industry.
The exports growth has fallen by 6% and as a result, domestic availability has shot up by 11.5% compared with an apparent consumption growth of 9.4 per cent.
Views of Indian steel majors on new NSP
Brazilian Indians, who threatened to stop production at an Amazon mine owned by the world's biggest iron ore producer, will hold talks with the company over aid money on Saturday, officials said on Thursday. CVRD, said on Wednesday that around 300 Indians from the Xikrin tribe invaded a town near its Carajas mines, which produce about one third of its total iron ore output.
The object of the meeting was to reconcile the Indians' demands with the company's offer and avoid the mine being taken over, said officials from CVRD and the government's Funai agency for Indian affairs.
The Indians demanded that CVRD triple its annual payment to them to 18 million reais ($8 million), a CVRD source said. CVRD says it has handed out 19 million reais ($8.4 million) aid this year to develop indigenous communities in Para and Maranhao states, of which the Xikrin received just under one-third.
The CVRD source added that the Indians also wanted to negotiate directly with the company instead of through a Funai intermediary. CVRD opposes direct talks.
However, a Funai spokesman denied the Indians invaded Carajas, saying they were only trying to arrange a meeting. "They wanted to discuss the agreement as they do each year. They didn't invade and left the city in a bus provided by CVRD," the Funai spokesman said.
Last year the Indians blocked CVRD's railway from Carajas to the coast for two days.
Chinese steel companys team up for ore talks
Two major Chinese steel companies, Bao Steel & Wuhan, have signed a strategic cooperation agreement they hope will give them greater bargaining power in upcoming price talks with foreign iron ore suppliers.
The price of iron ore jumped a record 71.5 percent this year because of China's increasing demand for the raw material. Chinese steelmakers, however, can't afford the higher costs because hasty expansion has left them with declining profit margins.
Siberian Coal starts supplies to US
The Siberian Coal Energy Co. has become the first Russian producer of energy coal to make supplies to the United States. Company managers say that the have entered the new market due to unfavorable market conditions in Europe. SCEC has just dispatched a shipment of 100,000 tons of coal to the US port of Baltimore. The company refused to name the purchaser for the order, but said that the coal was intended for energy generation and not for metallurgy.
SCEC is one of the worlds ten largest coal producers and the third largest in Russia. It also owns blocking packages in a number of electric companies. It is controlled by Mr Andrey Melnichenko and Mr Sergey Popov through the offshore Donalink Ltd.
Right now, more than half the companys exports go to Europe. The price of coal delivered to Europe has fallen from $74 per ton to $54-58. The price fall is attributed to Chinas increased coal exports at dumping prices. It is reported that cost of coal production is $13 per ton, transportation by train to a seaport costs $30 and freight costs another $15. Thus exports to Europe are unprofitable.
An executive at another Russian coal company noted that SCEC has an excess of coal that it has to get rid of somewhere. Entering a new market will allow the company to hedge against risks from the unstable price situation in Europe. At Kuzbassrazrezugol, another large Russian exporter, they do not intend to follow SCECs example, however. The company is limited in its sales policies by long-term agreements, company vice president Mr Mikhail Chernik noted.
Specialty Metals Industry group releases 8 month US market data
The Specialty Steel Industry of North America SSINA today released the latest available statistical data on imports, U.S. consumption and import penetration covering YTD August 2005. Comparisons refer to the same 2004 eight-month period. Following data presented by specialty steel product line, total stainless steel, and total specialty steel:
Imports of total special steel comprising of stainless steel, alloy steel and electrical steel YTD through August 2005 were 601,113 tons, a 15% increase as against US consumption of 1,885,868 tons, a 2% decrease over last year
Imports of all SS items YTD through August 2005 were 458,743 tons, a 12% increase as against consumption of 1,543,777 tons, down by 5% over corresponding period last year
Imports of SS steel & strips into US were 253,820 tons 2% up, whereas the consumption was 1,098,025 tons, a 7% decrease over last year. For SS plate, imports were increased by 14% to 55,985 tons as against the consumption of 176,552 tons, 11% decrease over last year
SS bars imports surged by 68% to 87,031 tons against consumption of 166,630 tons, a 25% increase over last year. SS rods imports were 31,726 tons, an 8% increase over last year against total consumption of 49,155 tons, an 18% decrease. The imports of SS wire registered 11% increase to reach 30,180 tons against consumption of 53,416 tons, which witnessed a 6% decrease over last year
Alloy steel imports were 82,090 tons, a 40% increase over last year
Electrical steel imports were 60,281 tons, a 13% increase over last year against consumption of 273,539 tons, which is 7% up over last year
SSINA is a Washington, DC-based trade association representing virtually all continental specialty metals producers like AK Steel, Allegheny Ludlum, PA and Allvac, Carpenter Technology, Charter Specialty Steel, Crucible Specialty Metals, Electralloy, Haynes International, ThyssenKrupp Mexinox, North American Stainless, Outokumpu Stainless, Precision Rolled Products, Special Metals Corporation, Techalloy Central Wire Group, Timken Latrobe Steel, Universal Stainless and Alloy and Valbruna Slater Stainless Inc.
European steelmakers and auto makers gearing for talks
In middle November, European steelmakers and automakers will start negotiations for 2006 contract and it is expected to be tough talks. With many long term contracts up for renewal early next year, sharp price increases are expected due to the rising raw prices.
A British spokeswoman from a German steel producer with high exposure to the automotive business said Talks are going to be tough this year, and our customer saw a steep increase on their contract prices from 2003 to 2004. Contract prices in 2005 increased by 180 and prices are expected to fall by around 20 for 2006.
However, Arcelor CEO Guy Dolle said that he expects annual contract prices to be flat for 2006. They had huge increase last year, we will ask for a 10% price increase for 1.5 million to 1.7 million tons of the business.
Russia to cancel VAT on scrap exports
The Russian government will cancel the 18% VAT for scrap exporters on January 1, 2006. However, Russian exporters will increase the scrap price in order to cover the loss after cancellation of VAT.
Traders said that the cancellation of VAT didnt have big influence for high quality scrap like A3, but could raise the secondary scrap steel prices.
Inventories of steel reach record levels in South Korea
Inventories of steel sheets and coils at Korean steel manufacturers hit an all-time high in September due to sluggish demand and labor disputes in the automobile industry, an industry group said yesterday.
According to the Korean Iron & Steel Association, the inventories amounted to 1.1 million tons in September, the highest level since January 2004 when the figure was first recorded.
"Along with a protracted slump in the construction sector, additional factors like Chuseok holidays and labor disputes at auto makers slowed sales of steel," a KISA official said.
Greece & Italy to sign agreement for pipeline construction
Greece and Italy will sign today the agreement for the construction of the Greek-Italian pipeline for the transfer of natural gas from the Caspian Sea and central Asia to the western European markets. The pipeline is expected to transfer 8 billion cubic meters of natural gas through Greece towards Italy, with the possibility of further increasing this capacity. The construction is expected to be completed by the end of 2009.
Natural gas will arrive from the Caspian Sea to Komotini through the Greek-Turkish pipeline. It will then travel to Stavrolimenas, Epirus, and from there it will be transferred to Otrando, southern Italy, through the Greek-Italian underwater pipeline, which will be 212km long and with a 32 diameter.
The Greek Gas Supply and Transmission Company (DEPA) and Italian EDISON will participate in the construction of the pipeline, which constitutes one of the top five priorities of the trans-European Energy Networks. The construction and development of the underwater pipeline will be undertaken by the company Poseidon, which is a joint venture of DEPA-EDISON.
The construction will take place in four stages, while DEPAs investment for the construction of the Komotini-Western Thesprotia section will amount to 600 million euros. In addition, the investment cost of the underwater pipeline will exceed 300 million euros.
Former ISC executive Mr Gertler opens new scrap firm
Former Industrial Scrap Corp. and OmniSource Corp. executive Mr Jeffry Gertler has announced the formation of a new company, Scrap Metal Services Inc. The company provides scrap management and brokerage services for both ferrous and nonferrous scrap suppliers and generators, according to Mr Gertler. I look forward to embracing our vision of providing our suppliers with low cost, efficient, customized scrap removal programs, and our consumers with dependable, quality products, Mr Gertler says.
Prior to forming SMS, Mr Gertler was an owner and vice president of Industrial Scrap Corp. ISC. That company specialized in the processing of ferrous and nonferrous scrap, handling as much as 500,000 tons annually.
Through market expansion and growth, ISCs business grew from $5 million per year in revenue to more than $40 million by 1999. That year, the company was sold to OmniSource Corp. of Fort Wayne, Ind. From 1999 to 2004, Mr Gertler held various executive positions, including VP of marketing, with OmniSource.
Future expansion plans for SMS include opening yard operations and trading offices in both Chicago and Northwest Indiana, according to a company news release.
Mittal Steel SA likely suitor for Highveld
Mittal Steel SA could pay R6-R10 billion for Highveld Steel & Vanadium if it buys the Anglo American unit, according to estimates by four steel sector analysts. Most analysts believe that Mittal will take a hard look at Highveld, and will be able to afford it. They also believe that potential competition hurdles are not necessarily insurmountable. Analysts say the Mittal group wants both the steel and vanadium operations, which are integrated, in line with its strategy of reducing dependence on external raw material supply sources.
The least optimistic analyst estimates that Anglo could get between R60 and R70 a share for Highveld, because it is highly dependent on the uncertainties of the vanadium market. Another analyst says the price tag is unlikely to be much higher than fair value, which he puts at R76.44 a share. Yet another analysts is more optimistic, saying the stock is cheap at the current level, which is 25% higher than it was when Anglo said it may sell the business as part of its strategic review. He says Anglo could be looking at R80-R100 a share.
Mittal Steel says it has to consider the opportunity, though this does not necessarily mean it is considering buying the company. Mittal Steel SA CEO Mr Davinder Chugh has been maintaining over the past year or so that it is not wise to acquire assets during the top of the cycle. The market has declined somewhat from last year's record levels, but it is still strong.
Outokumpu to add natural gas surcharge
Outokumpu US has planned to add natural gas surcharge for shipments from December. According to Outokumpu, the prices of natural gas, which was released by New York Mercantile Exchange, have doubled since last year.
Thus, Outokumpu can't afford such high cost anymore. Since December shipment, Outokumpu will add the gas surcharge into its base price monthly.
Clashes in northern Spain in protests over coal cutbacks
Spanish police clashed with striking coalminers in several cities in northern Spain on Friday in miners' protests against the state's plans to severely slash subsidies to the coal industry. Coalminers are protesting against plans by Spain's Socialist government to raise the early retirement age from the current 42 years to 45 years. They are also demanding greater social support from the state.
Industry Minister Jose Montilla is to meet with the unions on Monday. The unions for their part have extended to five days, from the original two days, the strike action to press the demands of the nearly 9,000 coalminers.
Spain's coal mining sector received state subsidies totaling some $14 billion between 1998 and 2005. But Madrid now aims to slash the subsidies to some 7.6 billion euros for the 2006-2012 periods.
Corus inaugurates a new warehouse for CR Coils
A new warehouse to store steel coils at the Corus steelworks in Deeside has been unveiled as part of an 11m investment. Corus GM Mr Peter Wilks said they hoped the expansion marked the start of an enterprise park at Shotton. Mr Wilks said he hoped other manufacturers would move there. "Our vision it to make this a steel enterprise park," he said. "We would be absolutely delighted if other people want to come and manufacture products using our steel."
The warehouse can store up to 16,000 tonnes of uncoated steel strip products which are transported for coating from Corus' south Wales steel plants at Llanwern and Port Talbot. Formerly steel awaiting galvanizing for use in commercial buildings like the Millennium Stadium were stored in the site's former cold strip mill, which closed four years ago.
Mr Roark Joins ISC Staff
Mr Perry D. Roark has been appointed GM of Industrial Scrap Consulting LLC ISC, a scrap management firm formed as a limited partnership between Cohen Brothers Inc, Ohio, and OmniSource Corp. Indiana. In his new role at ISC, Mr Roark will concentrate on both improving the ISC-Worthington initiative at the 47 Worthington Industries facilities as well as taking part in the strategic planning of future scrap initiatives.
Mr Roark previously helped establish the ISC business model while serving as a project manager at Worthington Industries, ISCs initial client when the ISC partnership was established in 2001. In his 35 years at Worthington, Mr Roark also served as a regional controller and in several plant and office roles for the Ohio-based company.
Palladon Ventures Ltd. provides update on Iron Mountain Project
Palladon Ventures Ltd has provides an update on the Comstock/Mountain Lion mine on Iron Mountain, near Cedar City, Utah. In spite of recent delays occasioned by material shortages in the wake of hurricanes in the Gulf Coast, the Company has made steady progress in commissioning the redevelopment of the historically productive mining facility.
Given the strong demand and attractive pricing for iron ore concentrate product, the Company has made the determination to proceed with plans to double the originally planned production rate to produce 2,000,000 metric tons per year. This revised plan is also based on the positive reactions from numerous potential customers who recently analyzed our concentrates. The Company intends to sign additional contracts when construction schedules and completion dates are more fully known. Palladon entered into a contract in August with a Chinese purchaser for the sale of one million metric tons of iron ore concentrates over the next year.
The Company intends to ship product in the first half of 2006 based on a very aggressive construction schedule. It should be understood that this schedule is in part contingent upon the availability of materials and the securing of additional project financing.
Rocky Mountain steel mill fires up new furnace
Rocky Mountain Steel Mills came has announced the startup of its new $30 million furnace for melting steel scrap. The new unit replaces two old furnaces. It offers state of the art energy efficiency and also advanced emissions controls. Rocky Mountain Steel announced plans to invest in a new furnace in 2002 as part of its ongoing plant upgrades. The installation work began several months ago.
The startup of the new furnace comes as the 720-worker Pueblo plant also readies for the reopening of its seamless pipe unit. The unit produces pipe and tubular products for the Oil Country Tubular Goods industry at an annual rate of 100,000 tons. The first seamless pipe shipments are scheduled for February.
The mill also produces standard and premium rail, high and low carbon rod, coiled rebar and seamless pipe.
Oregon Steel CEO Mr James E. Declusin said in a statement Thursday that the improvements position the Pueblo plant to better compete on the global steel market.
Radisson acquires Dryden Area Molybdenum mine
Radisson Mining Resources Inc announced that the Company has acquired a newly discovered molybdenum showing from Dryden Ontario prospectors Sherridon Johnson and Kevin Prouty. The discovery is a key acquisition in an area of historical multi- metallic occurrences, and is located approximately 100 km south of Dryden, Ontario
Radisson has entered into a three-year option agreement with the prospectors for the thirty-two claim unit property.
Radisson is a Quebec-based mining exploration company. It is the sole owner or has interests in nine gold-bearing properties, with some containing base metals, located in northern Quebec. The most advanced and also the company's principal asset is the former O'Brien Mine property in Cadillac, Quebec. This mine produced near 600,000 ounces of gold from 1.45 million short tons at an average grade of 0,434 ounces gold per short ton. The company also owns a gold mill, rated at 200 tons per day, on the O'Brien property.
Donbas may float the shares of Częstochowa Steel Mill
It is reported that Donbas Project Development Company, the Ukrainian metal sector giant, has decided to float the shares of Częstochowa Steel Mill on the Warsaw bourse, but a final date has not been decided yet.
According to Mr Konstanty Litwinow, Donbas representative in Poland, a group of analysts are currently working on the best solution. "Most opinions are that this is not a very good time for an offer, however, we do not exclude this possibility," said Mr Litwinow.
He also explained that before the debut, the steel mills' structure has to be improved, which will result in increasing the company's value and financial results. "This is part of the restructuring program we promised to fulfill in the privatization agreement. At the moment various companies from the capital group provide services for one another. By liquidating this structure we will streamline the firm's functioning and eliminate unnecessary costs," explained Litwinow.
If the Częstochowa Steel Mill enters the Warsaw Stock Exchange it will be one of the largest companies from the sector quoted on the bourse.
Metals USA announces change to condition of Apollo's acquisition
Metals USA Inc announced today that the banks providing the debt financing for Apollo Management LP's pending merger transaction with the Company have agreed to modify their debt financing commitment letter in a manner that will result in a key financial condition being satisfied.
The financing condition requiring that the Company's consolidated EBITDA for the four-fiscal quarter period ended on September 30, 2005 be equal to at least $117.5 million will be deemed satisfied so long as the prospective lenders are satisfied that the minimum EBITDA for such period is equal to at least $113.8 million. The Company previously disclosed in its quarterly report on Form 10-Q for the fiscal period ended September 20, 2005 that its consolidated EBITDA for the four-fiscal quarter period ended September 30, 2005 was approximately $114.3 million. Accordingly, the Company expects that the minimum EBITDA condition under the debt financing commitment letter will be satisfied.
On May 18, 2005, the Company entered into a merger agreement with affiliates of Apollo pursuant to which the Company would be acquired and the Company's stockholders would receive $22.00 per share in cash, without interest. The Company anticipates that the merger will be completed in the fourth quarter of 2005, assuming satisfaction of all of the conditions to the merger.
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.
Timken to invest $27 million in Randelman bearing unit
Timken Co. said it will invest an additional $27 million in its Randleman, N.C. bearing plant to increase the size of the Asheboro-area plant by about 35% and it expects to receive $1.4 million in state and local tax incentives for the expansion.
The facility, which produces tapered roller bearings, was opened in 1994. The expansion project is expected to begin in 2006 and will take 18 months to complete.
SS project approved in Viet Nam
Minister of Planning and Investment Vo Hong Phuc handed over licences to a foreign invested projects at the Viet Nam Forinvest 2005 in Ha Noi on November 3.
The $700 million project to produce stainless steel, owned by the Taiwanese Samoa Qian Ding Group, will be located in the My Xuan A Industrial Zone in the southern coastal province of Ba Ria-Vung Tau.
The plant is designed to be capable of turning out 720,000 tonnes of stainless steel a year
Australia\'s Bluescope margins hit badly
Excessive output from Chinese steel mills has cut margins at Australia's Bluescope Steel Ltd, MD Mr Kirby Adams said Friday, after releasing guidance that profit could be 30% below analysts' forecasts.
Increased steel inventories and the unexpected side-effects of a fire at its Western Port mill in Victoria state in August are expected to slash earnings in the year ending June 30, 2006, the company said, prompting a 15% dive in its share price.
Rail line sharing in Pilbara could delay expansions by BHP
BHP has said that if it was forced by regulators to share its rail line in Australia's Pilbara region with other iron ore miners it could delay multi-billion dollar expansion plans aimed at meeting demand from Asian steelmakers. "If the line is declared a service it could result in significant delays to the ongoing expansion to BHP Billiton's Pilbara iron ore operations," a company spokeswoman said. BHP Billiton said it would contest the preliminary ruling ahead of the NCC's final recommendation, due early next year, adding the rail line was already operating at full capacity.
The National Competition Council NCC earlier on Friday issued a draft recommendation which could clear the way for iron ore prospector Fortescue Metals Group Ltd. and others pegging ground in the ore rich region to use BHP Billiton's monopoly railway line in Western Australia.
BHP Billiton last month said it would spend $1.3 billion to expand iron ore output and rail and port operations to keep up with demand from Asian steel makers. It also said it would start work immediately to nearly double iron ore mining capacity to 42 million tonnes a year at its Area C iron ore mine, with output from the expansion to begin in the fourth quarter of calendar 2007.
The company has previously said it was looking to expand its total iron ore capacity to 152 million tonnes a year by 2010. It is scheduled to increase capacity to 117 million tonnes a year in the second half of calendar 2006. A third expansion in 2007 would be able to handle 129 million tonnes a year.
BHP Billiton's partners are Japan's Itochu Corp. and Mitsui & Co. Ltd., with 8 percent and 7 percent of the project, respectively. The two Japanese firms have said they will together invest a total of about 27 billion yen.
BHP Billiton in July signed a joint venture iron ore deal that would secure long-term sales contracts worth about $4.3 billion with Japan's JFE Steel, the core unit of JFE Holdings Inc. and its existing Yandi mine joint venture partners Itochu Minerals & Energy of Australia and Mitsui Iron Ore Corp..
Brazilian Indians seek more cash from CVRD
Brazilian Indians, who threatened to stop production at an Amazon mine owned by the world's biggest iron ore producer, will hold talks with the company over aid money on Saturday, officials said on Thursday. CVRD, said on Wednesday that around 300 Indians from the Xikrin tribe invaded a town near its Carajas mines, which produce about one third of its total iron ore output.
The object of the meeting was to reconcile the Indians' demands with the company's offer and avoid the mine being taken over, said officials from CVRD and the government's Funai agency for Indian affairs.
The Indians demanded that CVRD triple its annual payment to them to 18 million reais ($8 million), a CVRD source said. CVRD says it has handed out 19 million reais ($8.4 million) aid this year to develop indigenous communities in Para and Maranhao states, of which the Xikrin received just under one-third.
The CVRD source added that the Indians also wanted to negotiate directly with the company instead of through a Funai intermediary. CVRD opposes direct talks.
However, a Funai spokesman denied the Indians invaded Carajas, saying they were only trying to arrange a meeting. "They wanted to discuss the agreement as they do each year. They didn't invade and left the city in a bus provided by CVRD," the Funai spokesman said.
Last year the Indians blocked CVRD's railway from Carajas to the coast for two days.
Coal mine gas accident kills 6 again in Liaoning
Six people were confirmed dead and two injured in a carbon monoxide spill at a coal mine in northeast China's Liaoning Province on Thursday, the local safety supervision bureau said Friday. The accident occurred late Thursday afternoon at Changsheng Coal Mine in Huazi town of Dengta City. Two repair workers were reported missing at 6:00 pm and six rescuers went down the pit to search for them, but no one showed up again after a long while.
Rescuers sent by the local government lifted all the eight people to the ground overnight but three of them were confirmed dead. Three others died later during emergency treatment and the remaining two are hospitalized.
The tragedy came at the heels of a gas blast at Beicao Mine in the same town that left four missing and another one injured on Oct. 30. Rescuers have since been searching for the missing miners but their whereabouts remain unknown.
China's coal imports expected to increase and export to decrease
China, the world's largest coal producer, is expected to import 24.2 million tons to 24.5 million tons of coal this year, and the figure is likely to increase slightly next year as per a report in Chinese daily. It cited Mr Pan Wanze, deputy MD of China Coal Import and Export Company as saying that China bought 18.76 million tons of coal from foreign companies for the first three quarters of this year, an increase of 55% YOY, while the coal export witnessed a 25.5% drop to 54.17 million tons for the same period.
"The increase in coal imports is a long-term trend," Mr Pan told a China Coal Market Summit which concluded on Wednesday in Beijing. A tight coal supply in the domestic market combined with government policy incentives has driven China's coal consumers to import more coal from overseas. Although the country's coal supply has improved dramatically this year thanks to a production increase, transport network expansion and macro-controls to contain demand, coal consumers in the domestic market will still likely suffer from a supply shortage. The central government has short-listed a total of 8,648 small coal collieries to be closed by the end of this year for not meeting safety and quality controls. If that happens, the nation's coal output will undoubtedly reduce," said Mr Wu.
The coal consumers in coastal regions in eastern and southern China, such as Guangdong Province, have turned to coal producers in countries including Indonesia, Vietnam and Mongolia, where prices are lower, especially for thermal coal and anthracite used for making petrochemicals, said Mr Pan.
China, the world's third biggest coal exporter, may ship 25% less coal than allowed by a state quota this year as buyers abroad delay purchases, anticipating a further drop in spot prices. Exports may reach about 60 million tons as per Mr Pan Wanze which is less than the government's 80 million ton limit for 2005. China set this year's coal export quota at the same level as 2004, when the figure was cut from 2003's 93 million tons in a bid to ensure domestic supply. A cut in coal export tax rebates contributed to a 17% decline the nation's shipments of the fuel in the first 9 months to 54.5 million tons.
CSN's profit hit by 26% as prices & sales fall
Cia. Siderurgica Nacional CSN, Brazil's No. 3 steel company, said profit fell 26% in the third quarter as sales slowed in the domestic market and prices fell internationally. Net income dropped to 517 million reais ($232 million), from 694 million reais a year earlier
Net revenue fell 20% to 2.22 billion reais in the quarter because of a drop in domestic sales and lower steel prices on overseas markets. Steel output fell 6.3% to 1.31 million tons from 1.41 million in the same quarter a year earlier. Overall steel sales fell 2.7% prompted by a 33% drop in domestic sales.
Export revenue was little changed at 750 million reais in the quarter compared with 744 million a year earlier even though the company increased the amount of steel sold abroad 91% in the quarter
