November, 08 2005
Jindal Stainless to increase capacity
Jindal Stainless Limited JSL, India's largest stainless steel company, is investing INR11 billion to increase capacity at its plant in Hissar, Haryana. The company is also planning to invest an additional INR1 billion to raise capacity at its facility in Indonesia threefold to 150,000 metric tons
Mr Ratan Jindal, vice CMD of JSL told press "We will be increasing the cold-rolled capacity from 100,000 tons to 250,000 tons by September next year and stainless steel melting capacity at the Hisar plant to 720,000 tons from 600,000 tons at Hisar plant. Mr Jindal said the investment for the Indonesia plant will be used for installing new machines in the existing facility. to keep pace with growing demand for stainless steel in the Southeast Asian region. Jindal Stainless acquired the Indonesian plant in July 2004 from PT Maspion Stainless Steel for $30 million-$35 million.
Jindal Stainless is also investing nearly INR70 billion to build a 1.6 million tons greenfield stainless steel manufacturing plant in Orissa. The first phase of the project, involving a capacity of 800,000 tons and a 290 megawatt captive power plant, is scheduled for completion in three years. The company has recently commissioned a ferroalloy making unit as part of the steel project. Besides ferro alloys, the plant will also be producing other raw materials that are used for making stainless steel, such as silica manganese. In the second phase of expansion, the production capacity of the Orissa plant will be doubled to 1.6 million tons with a power plant capacity of over 500 MW. The second phase will take around two years after completion of the first phase.
Mr Jindal said the fresh investments reflect the strong growth prospects of the domestic steel industry. "The consumption of stainless steel in India should grow by over 11% to 12% each year over the next 4 to 5 years," he said. "The production should also grow by 10% to 12% each year." Mr Jindal said higher consumption by the automotive, construction and railway sectors, among others, is driving demand for stainless steel in the country.
India currently produces around 2 million tons of stainless steel annually. Around 25% to 30% of the total production is exported. "In 3 to 5 years, India and China will be the sources of raw materials to European and American companies who will take the hot-rolled coils and make it into cold-rolled coils and other finished products," said Mr Jindal.
Welspun bags Rs 301 crore order from Algeria
Welspun Gujarat Stahl Rohren Ltd has received a Rs 301.5 crore order from Stroy Transgas, a Russian gas major, as the EPC contractor of Sonatrach, Algeria. The Stroy Transgas order requires Welspun to supply 163 kilometers of 3LPE Coated onshore pipelines with outside diameter of 42 inch and wall thickness of 14.3 mm for the Gazoduc Sougueur-Hadjref Ennous project in Algeria. The pipe supplies are expected to be done between February and July 2006.
The company had received a Rs 500 crore order from PGN, Indonesia a fortnight ago and with these orders, Welspun has an outstanding order book position of over Rs 2,200 crore globally.
"The maiden foray into Algerian gas grid is a testimony of the relationship that Welspun enjoys in world markets. The Algerian order also is of strategic importance since Northern Africa is a hub for supplying gas to European markets. These orders will also be a shot in the arm, since Algeria has proposals for laying more than 2,000 km of pipelines in the next few years," the company said quoting Mr B.K. Goenka, Vice CMD, Welspun Group.
The company is expanding its pipe making capacity to 1.4 million tonnes of coated pipes per annum from 0.4 million tonnes by November 2005 at its Anjar facility.
Congress leader opposes steel plant in Bastar
Veteran Congress leader Mr Shyama Charan Shukla Monday demanded scrapping of a steel plant proposed by the Tata Group in Chhattisgarh Bastar region, saying it would destroy the rich ecology of the region. India's largest private steel maker, Tata Steel, signed a memorandum of understanding (MoU) with the state government in June this year to set up a five million tonne per annum integrated steel plant in the iron ore rich Bastar region with a total investment of Rs.100 billion.
Mr Shukla, three time chief minister of undivided Madhya Pradesh, warned that he would launch a mass movement if the government did not scrap the deal. "Bastar is known for its abundant forests, hills, waterfalls and other natural resources. Tata will finish off the natural beauty and reduce the local population to a minority as the company will bring outsiders as settlers," Mr Shukla told reporters. "The only way out is to ask Tata to set up its plant in neighbouring Kanker district rather than insisting on Bastar," the Congress leader stated.
Sources said that state government and the Tata Steel officials will hold a meeting later this week to choose a site for the plant. In the first phase, a two million tonnes per annum steel plant is to be built within 48-60 months
RINL reports October performance
RINLs Vizag Steel Plant (VSP) has achieved an impressive performance on all fronts during October, 2005. VSP produced 0.33 million tonnes of hot metal, 0.295 million tonnes of liquid steel and 0.237 million tonnes of saleable steel during the month. The production of 0.2 million tonnes of billets, 127% of the rated capacity) is the best for any month since the inception of VSP, according to a press release.
The 2.95 million tonnes of liquid steel, 81,013 tonnes of bars and value-added production of 1 lakh tonnes during the month surpassed the production for the month in any previous year, the press release added.
On the marketing front, VSP recorded sales of Rs 555 crore in October and achieved a cumulative sales of Rs 4,283 core during April-October 2005, which represents a growth of 6.73% cent over the sales during the corresponding period last year.
Jindal Stainless to complete de merger of lifestyle, architecture units
Jindal Stainless Ltd JSL has set March 2006 as the deadline for completing the hiving off process of its lifestyle and architecture divisions into two companies. The company had announced plans for the de-merger last week The two divisions will be set up as wholly owned subsidiaries of JSL. The sources said that unlike the stainless steel business, both the lifestyle products and architecture businesses have a retail focus. Making them independent entities would help in expanding their retail operations.
Jindal Stainless' architecture division was formed in 2003 to promote the use of stainless steel in infrastructure and new areas. This division provides comprehensive project services, including planning, designing, fabrication and erection on a turnkey basis.
The lifestyle product division Art'dinox was set up to design and produce stainless steel artifacts. It focuses on technical and design innovations in stainless steel.
Enquiry ordered in Mukesh Steel explosion
The Punjab Labour Commission today ordered an inquiry into the explosion at a steel factory in Giapura focal point here in which two persons were killed and several others injured. Three senior officials would conduct the probe to ascertain the "actual lapse" that caused the explosion in Mukesh Steel factory yesterday and submit a report within ten days. It also ordered closure of the factory for three days.
Initial reports of the incident said the blast took place when imported war scrap was being fed to the furnace with the help of a gas cylinder.
Yesterdays blast was the fifth in the series of blasts at the factory in the last one year, in which eight lives have been lost.
Jharkhand to crack down on illegal mining
Jharkhand government wants to modify the Mines and Minerals Development and Regulation Act of 1957 to plug many existing loopholes that are used by miners to their advantage by empowering to district administrations to check rampant illegal mining and the resultant revenue loss. The state would seek the central government's permission to amend the law. "Once the central government gives the green signal, the state will introduce the amended act in the assembly," he said.
"The amendment is needed in the light of huge revenue losses. According to estimates, illegally mined coal worth Rs.2.2 billion ($48.5 million) is smuggled out of the state," an official said, noting that the proposed amendment would empower district officials in many ways. "It will allow the illegally mined minerals to be confiscated by district administrations, which will also get the power to dispose of illegal mining cases," he said.
Adhunik Group in overdrive
Kolkata-based Adhunik group is planning to invest Rs 450 crore in its manufacturing facility at Rourkela in Orissa in order to become one of the leading integrated steel players in the country. MD Mr Manoj Agarwal said that the expansion in Rourkela included a 18 megawatt captive power plant, a steel rolling mill, oxygen plant, railway siding and a steel melting unit. The company is likely to tap the capital market with a Rs 100 crore initial public offering to part finance the expansion project.
Another director of Adhunik group of industries, Mr GD Agarwal said "We now have 6-7 group companies, like Adhunik Steels Ltd, Adhunik Ispat, Adhunik Corporation, Adhunik Meghalaya Steels, SRI MP Ispat & Power in Jharkhand, West Bengal, Meghalaya and Orissa and the group was planning to acquire a mid-size forging unit located at Jamshedpur.
The company also has a long-term contract with Tata Steel for supply of 12,000 tonnes per quarter of sponge iron and 15,000 tonnes of pig iron.
Adhunik group is also likely to float JV companies with Electro Steel Castings and Bhusan Steels for coal mining in Jharkhand and Orissa. Mr GD Agarwal informed that a captive coal mine has already been allotted to Adhunik group along with other two outfits. Adhunik was also in the final stage to get iron ore mines in Orissa of its own. "We are having around 50 million ton coal and 60 million ton iron ore. For coal we might form two joint venture companies in Orissa and Jharkhand," he added.
NTPC aims to generate 66,000 MW by 2017
India's largest power generating company Naional Thermal Power Corporation NTPC ED Southern Region Mr LV Rao said the company would achieve its goal by generating 66,000 MW by 2017.
He said the company had entered hydel power through its 800 MW venture under construction in Himachal Pradesh as part of growth and diversification. The company had identified integrated coal mining cum power projects and natural gas exploration as thrust areas. Mr Rao said NTPC was chalking out plans to acquire parallel distribution licenses in different parts of the country and added that the its subsidiary company NVVN was already trading power, utilising unallocated power from its stations.
NTPC is the largest power producer in the country with installed capacity of 24,249 MW through 13 coal based, seven gas based and three joint venture units spread all over the country, contributing 27% of India's total power generation.
L&T giant platform sets sail for Abu Dhabi from Hazira
LARSEN & Toubro L&T set sail a giant gas injection platform for the Bunduq Company in Abu Dhabi from its Hazira facility. According to the company, this is among the heaviest single module at 2,400 tonnes to be loaded out from a facility in India.
L&T had bagged this $52.5 million EPC contract in July 2004. By January 15, 2006, L&T is scheduled to install the platform in the El Bunduq field near the maritime boundary between UAE and Qatar
The GIP platform, with facilities for compressing and injecting gas, is a composite single deck type that will be `bridge linked' to an existing Gas Sweetening Platform. It will house an array of equipment, viz., the associated gas and acid gas compressor modules, glycol dehydration package, instrument air and nitrogen package, pedestal crane, switchgear and control rooms and other miscellaneous facilities for maintenance and operation of the plant and equipment.
Mr K. Venkataramanan, President of Engineering & Construction Division and Member of the Board, said, "The successful, on-time execution of the on-shore phase of the massive platform project affirms L&T's capabilities in undertaking such giant oil projects for international markets. It is part of L&T's strategic drive to expand its focus beyond Indian shores and establish itself in the prime markets of the Middle East and Africa."
Tata Power scouts for mines in Indonesia
Tata Power Company Ltd is actively evaluating prospects of acquiring coal mines in Indonesia. According to reports in news dailies a business development team of Tata Power in conjunction with a valuation expert team from Tata Steel has last month completed a preliminary feasibility report on a few coal mines in Indonesia. Unconfirmed reports suggest that at least five coal mines have caught the eye of the power major wherein the company might either go for a 100 per cent acquisition, a stake buyout, or both, in one or more of these coal mines.
Tata Power has been using imported coal for power generation. Tata Power currently imports 1.8 million tonnes of coal from South East Asian countries and is planning to add another 1.2 million tonnes in import from international markets.
The company's focus on establishing coal-based power projects, overseas acquisition of coal mines seems to be a viable proposition for Tata Power as off late Tata Power has skewed its focus on coal based power generation on the back of increasing prices of naphtha and shortage of natural gas.
JFE profit surges in H1
JFE Holdings Inc, the world's fourth biggest steel maker, has reported a 42% jump in first-half profit on strong steel demand and prices, but kept its cautious annual outlook unchanged because of planned production cuts.
JFE, which emerged as Japan's second-largest steel mill in 2002, reported 264.3 billion yen ($2.23 billion) in operating profit for April-September, compared with 186.11 billion yen a year before. Net profit almost quintupled to 170.3 billion yen after the company booked a 74 billion yen asset impairment charge a year ago.
JFE President Mr Hajime Bada increased prices an average 31% to automakers including Toyota Motor Corp and shipbuilders such as Kawasaki Heavy Industries Ltd in the first half. This helped JFE absorb record costs of iron ore and coking coal, steelmaking raw materials.
JFE has recently expanded planned production cuts in the second half to 1.3 million tonnes from the original plan of 500,000 tonnes and analysts expect production cuts could reduce JFE's operating profit by as much as 30 billion yen this business year.
Japanese steel makers are benefiting from booming demand for high-quality sheet steel from domestic automakers and shipbuilders, which account for up to 85% of their business.
Global steel sector in transition phase
One look at any price chart for steel will tell you the last few years has seen significant changes in the industry. In the view of steel industry consultants MEPS, these changes will continue in coming years as industry restructuring continues and adjustments are made for new global influences and drivers. To better understand where the industry may be going it is helpful to reflect on recent changes, so MEPS has highlighted what it considers have been the most significant developments in global steel markets.
The most obvious change has been the strength of the growth of the Chinese economy, which has driven up demand that has only been partially met by domestic producers and so led to an increase in global output. Putting this in perspective, MEPS estimates 80% of the increase in global steel production and 72% of the increased consumption since 2000 can be directly attributable to China. During the same period, China has increased its steel production by 220 million tonnes or 170%, compared to an increase in the rest of the world of just 54 million tonnes, or 7.5%. Consumption figures show similar increases, Chinese demand growing by 180 million tonnes in the last five years compared to 70 million tonnes for the rest of the world.
In MEPS view, the dominance of Chinese producers in terms of total world production gives them an obligation to show some responsibility in terms of the outlook for the industry globally. The experts point out that if China continues to allow supply to exceed demand global steel prices will fall to unprofitable levels, which is likely to see the rest of the world respond with measures such as anti-dumping legislation in an attempt to support their domestic industries.
As CSFB points out, Chinas record to date in terms of responsible increases in production has been poor as hot rolled coil prices have slumped to their lowest level in two years as supply continues to outstrip demand. In the brokers view this situation is likely to outweigh current good news in western markets, where inventories and prices have improved recently thanks to producer discipline. While accepting the current softness in the Chinese market may simply reflect a short-term imbalance given economic growth in recent years, the broker takes the view the slump in HRC prices means supply growth remains excessive as US$2bn per month is being invested in new capacity in China.
Arguing the responsibility falls on the government to force production lower, MEPS notes steps have been taken to achieve this and most expansion plans are unlikely to come to fruition, but many projects are simply too advanced to stop. As a result, MEPS suggests Chinese output will continue to grow until at least 2007, despite the likelihood all export incentives in the sector will be removed.
Arcelor expects to take stake in Laiwu soon
Arcelor CEO Mr Guy Dolle said he expects an agreement concerning its investment in Laiwu Steel Co Ltd to be signed in 'a few weeks'. 'We are still in discussions. It will take a few weeks until we reach a final agreement,' Dolle told a news conference marking a deal with the United Nations Development Program (UNDP) to promote sustainable development projects in China.
Chinese rules prevent any foreign steelmaker from gaining a majority stake in a Chinese one. Last week, Mr Dolle told media that the limit only exists 'in principle' and it is not yet certain what will be implemented in practice. He also said: 'It could be possible to go up to 50 pct in multiple phases.'
Mr Dolle is to attend the inauguration of its joint venture mill with Baosteel, which will make steel for the car sector. 'We are investing 800 mln usd. This is our first major investment in China.'
BlueScopes new line in Vietnam to be operational by December
BlueScope Steel's $105million new facility will be operational by early December 2005 in southern Ba Ria Vung Tau Province. GD Mr Peter Wilson said that the new unit will be able to provide both civil and industrial steel markets with products at international standards, helping to reduce imports of color coated and steel products.
The new facility would be the biggest of its kind in Vietnam and is expected to account for around 16% of the market share for coated steel in the first year of operation
BlueScope Steel came to Vietnam in 1993 with a factory in Bien Hoa City, southern Dong Nai Province and later built another factory in northern Ha Tay Province, which has been moved to Ba Ria Vung Tau.
Spanish Government and coal miners reach agreement to end strike
The Socialist government and unions representing coal miners said Monday they had reached a deal to end a five-day-old strike that posed Spain's latest taste of labor unrest. The government and unions made "a good effort" to narrow differences and reach a deal that is good for the Spanish coal industry, Industry Minister Mr Jose Montilla said.
Spain's coal industry has suffered for decades as work shifted to less-developed countries where wages are lower. In the new deal, the government yielded to union demands on early retirement, Mr Montilla said.
Unions, which have been blocking roads in mining areas since Thursday, had demanded a formula under which a worker's age is multiplied by a coefficient determined by how dangerous their particular job is. They wanted all miners to be able to retire when this number is 52 or higher.
The government had said it was willing to do this, but only for the next two years. Through 2012, the period covered by the new accord, the government wanted the miners be at least 45 to retire. In the end the government abandoned its stance to accept the union plan. The government also said it would invest nearly euro3 million in mining areas, mainly in northern Spain, where the economy has been hit by the industry's decline.
Russias steel makers sanctioned to ship to EU
Russia may ship 2.27 million tons of rolled steel to the European Union under the 2006 quota, 450,000 tons more than in 2005. Despite the extension, Russias metal makers dont count on higher profits, the more so that the agreement with the EU was to be concluded a year ago.
The first steel shipment agreement between Russia and the EU was sealed in 2002 and expired in late 2004. The initial quota of 1.38 million tons on Russias steel export was widened to 1.82 million tons in 2004 in the aftermath of the EU expansion. Once the agreement ended, Russias metal makers started shipping rolled steel under the independent quotas, which have actually matched the 2004 volumes.
A new agreement was sealed to extend the steel quota to 2.27 million tons, including a coiled steel quota of 930,000 tons, plate steel quota of 195,000 tons and steel alloy quota of 224,000 tons. According to the Economic Development and Trade Ministry, the quotas provide for more than $870 million export to the EU. Russias largest suppliers of rolled metal to the European Union are NLMK, Mechel, Severstal and MMK
The tricky aspect is that in spite of widening of steel quotas by EU, the Economic Development Ministry of Russia is getting ready to actually ban import of SS from the EU. The ministry has made out a draft ruling to impose the 840/ton duty on European stainless steel and a respective decision could be made before late this year.
Iranian interior auto grade steel makers seek support of carmakers
Iranian carmakers tend to import steel for interior components despite the domestic steel industrys capability to meet a huge portion of the automotive industrys requirements. Automotive industry prefers to purchase steel from international companies from South Korea, Japan and European countries
Mr Rassoul Khalfeh-Soltan, secretary of the Association of Iranian Steel Producers, said the national steel industry has the capacity to increase production of steel alloy given the increased output at Iran Steel Alloy Mills and Esfarayen Alloy Steel Complex. The steel industry can easily meet the automakers requirements as it is already supplying steel to more high-tech industries in shipbuilding and power plant construction projects, he said, adding that except for steel sheets used in the body of vehicles, national steel industry is capable of manufacturing all the required steel parts.
umption remains too low.
Mr Hossein Molla-Hossein Aqa, who heads Irans Steel Alloy Company, said Iran has the ability to manufacture quality auto parts steel, stressing that given that the country cannot export cars, it has to shift its export policy towards auto part manufacturing industry.
Russian ministry proposes import quotas for large dia pipes
The Russian Economic Development and Trade Ministry has proposed imposing import quotas on large-diameter pipes, a spokesman for the ministry said. "We sent our proposals on protective measures to all interested federal agencies," the spokesman said, adding that the recommendation was based on investigation into rising imports of large diameter pipes, including Ukrainian, German, and Japanese.
He said Russia was considering imposing quotas for all suppliers, except developing countries, based on average annual supplies over the last four years. The spokesman said the ministry would submit the proposal to the government after coordinating with federal agencies in hopes of imposing quotas early next year.
According to a study requested by the Russian Pipe Industry Foundation, imports of large diameter pipes in 2001-2003 grew 150% YOY in the first seven months of 2004, affecting domestic manufacturers, which increased their sales in 2004 by 8%. Imports grew 45% due to dumping prices, 40% less than Russian producers.
According to the source, the ministry is also seeking to impose duties on imports of small- and medium-diameter pipes between 9% and 58%, depending on producers.
Danieli to modernize EAF at Republic Engineering
Danieli has reported that the details of its expansion to the steelmaking operation at Republic Engineered Products in Canton, Ohio and that the modernization of steel melting shop and new billet caster are expected to start early 2006
It is reported that a 200 MT electric arc furnace, one of two in the melt shop, will be updated with a new upper shell with water-cooled panels, new Hi-Jet units for oxygen and carbon injection and new Hi-Reg Plus regulation system.
Danielis Hi-Jet system will provide efficient oxygen and carbon injection, for more effective foaming slag and liquid steel homogenization. Danieli states that EAF productivity is expected to improve by 20% with the upgrade, saving 35-kWh/t in electrical energy consumption.
Also, a new 200 MT ladle furnace on a provisional basis in the original project description will be installed.
The new five strand caster will produce 170 mm square billets through 250- by 190-mm blooms. at up to 155 metric tons/hour.
Exchange rate lead to confusion in payment for Kryvorizhstal
As per a report in Ukrainian weekly, a serious conflict regarding the exchange rate at which the investor to pay for Kryvorizhstal arose between Mittal Steel and the National Bank of Ukraine. It is reported that Mittal Steel was ready to pay for Kryvorizhstal on Sunday however the head of NBU Mr Volodymyr Stelmakh insisted on reconciliation at the rate of 4.8-4.9 UAH per 1 USD.
This would mean that the new Kryvorizhstal owner was to pay additional $100-200 million.
After that PM Mr Yehanurov stepped in and the exchange rate has been defined equal to the official. At the same time President Viktor Yushchenko on the urgent basis submitted a bill to Verkhovna Rada which suggests permitting foreign investors payments for the privatized objects in hard currency.
According to the bill, the price of the privatized object is defined in hryvnias, and the payment on agreement with the NBU may be conducted in hard currency at the official NBU rate as of the payment day. Thus, if the law was in force today, to make Mittal Steel paying at 4.8-4.9 UAH/USD rate the NBU should merely set the official rate at 4.8 UAH/USD. Mr Stelmakh would never dare to do that since he will be thrown out of the office by the parliament as soon as the exchange rate will be set as low as that, the newspaper reported.
Anshans blast furnace starts operations
Anshan Steels no 2 blast furnace has started production. The 3, 200 cubic meter furnace has an annual capacity of 2.5 million tons.
The furnace was built using advanced technical skills that include hydraulic pressure system, color coated system, clean dreg system, operating system and auto- control equipment. The furnace also has a better control of dust removal and waste disposal.
ABN Amro says Nickel to extend declines
Nickel, which has fallen more than any other metal on the London Metal Exchange this year, will extend declines in 2006 on rising mine production and dwindling demand from stainless steelmakers, ABN Amro Holding NV said. Stainless steel cutbacks and the start of a parade of new refined supply were seen as tarnishing nickel's price outlook for at least the next two years,'' Mr Nick Moore an analyst at ABN Amro, said in a report
Nickel, which is used to make steel malleable and corrosion resistant, may fall to an average $5.30 a pound, Mr Moore said, 21% lower than his estimated average for this year. Nickel rose to a 17 year high of $8.12 a pound on May 12, and has fallen 35% since then to about $5.31 a pound.
Global nickel production will rise to 1.35 million metric tons in 2006 compared with 1.29 million tons this year, The Hague, Netherlands-based International Nickel Study Group said on Oct. 26. That will beat consumption by 10,000 metric tons. Global stainless steel production will fall 9.7% in the second half of this year, the Bureau of International Recycling said on Oct. 28. World output for all of 2005 will drop 4.5 percent, the BIR said.
GMKN Norilsk Nickel, the world's biggest producer, said prices of the metal have become increasingly reflective of supply and demand after speculators cut their holdings. We've seen the froth of speculative interest in nickel just blown away,'' Mr David Humphreys, chief economist at the Moscow-based company, said on Oct. 31.
Inco Ltd., the world's second-largest nickel producer, started its Voisey's Bay mine in Newfoundland, Canada this year, and will produce 110 million pounds of nickel contained in concentrates in 2006, adding to a production surplus.
Chile's Molymet advances molybdenum processing JV in China
Chile's Molymet, the world's largest processor of molybdenum, is close to signing a MoU with a Chinese partner to process molybdenum concentrates from mines in northern China. "We are a long way down the path towards forming a joint venture to make a significant investment in a molybdenum processing plant in China," the company's VP for corporate affairs, Mr Fernando Alliende, told media. Mr Alliende said that he could not yet name the potential partner or the capacity of the planned plant but noted that the company expected to invest between $50 million and $100 million and that the plant could be operating within three years. "We opted for an equity JV with each partner holding 50%," he added.
Major investments in steel and stainless steel production in China had attracted the company interest in investing there, Mr Alliende added. "China produces a third of the world's molybdenum, but it is also a major consumer of molybdenum and the expectations for future consumption levels are very high," he said.
In addition to capital, Molymet plans to bring its expertise in the technology of molybdenum processing to the project, particularly helping to improve product quality, energy efficiency and the environment impact of metals processing in China, an area where the industry had to act in order to continue developing.
Molymet processes almost a third of the world's molybdenum at its plants in Belgium, Chile, Germany and Mexico, treating concentrates from mines in Mexico and South America. The company plans to invest $106 million over the next two years at its plants in Belgium and Chile to expand roasting capacity by 50% to 150 million lb per year by 2007.
CVRD clears US$1bn alumina 7 bauxite expansion plan
The board of Brazilian iron ore miner CVRD has approved a US$1.04bn investment plan to boost bauxite and alumina output capacity, the company said in a statement.
Investment includes the construction of stages 6-7 at CVRD's Alunorte alumina refinery and phase 2 of the Paragominas bauxite mine, both in Parstate. "Both projects are in line with CVRD strategic focus on the upstream of the aluminum production chain," reads the CVRD statement.
The US$846mn estimated investment for Alunorte aims to boost its annual production capacity to 6.3Mt, consolidating its position as the world's largest alumina refinery. Project startup is due in second quarter 2008. Currently the alumina refinery is developing stages 4-5, which will increase its production capacity from 2.5Mt/y to 4.4Mt/y. The operational startup is scheduled for 1Q06 with the ramp-up phase due to wrap up by 3Q06.
Tire shortage causes problems for coal mines
Coal mining companies in the Powder River Basin in northeast Wyoming are maneuvering to get around a worldwide shortage of tires for heavy equipment. The shortage is widely attributed to increasing demand from U.S. and international mining operations for tires, industry officials said.
Military operations in Iraq and Afghanistan have added to the strain on the tire market, said Mr Jim Davis, Goodyear Tire & Rubber Co. spokesman. "The shortage is affecting everybody throughout the (tire) industry," he said.
To meet the demand, manufacturers like Goodyear and Bridgestone Corp. are looking at expanding the capacity of their big tire plants. But Mr Davis said the heavy-equipment tire shortage could continue through 2007
Tender for 42 dia, 32 km pipeline for Aramco
It is reported that almost 10 companies responded to an initial inquiry by Saudi Aramco for an EPC contract to supply and install a 42 diameter 32 kilometer long seawater transfer pipeline between UWSS 1 and UWIPS 3 pumping stations at Abqaiq and Uthmaniyah respectively. The contract will also include demolishing the existing pipeline, which has corroded
Respondents for the estimated $30 million contract include Al-Rashid Contracting Company, RH Al-Marri Establishment (RHM), Faysal M Qahtani Establishment (FMQ) and Tamimi Construction, all local, Lebanons Contracting & Trading (CAT), the Netherlands Suedrohrbau, Turkeys Tekfen, Athens-based Consolidated Contractors International Company (CCC) and US-based Willbros Group.
20th World Mining Congress opened on 7th November
Iranian minister of Industries and Mines Dr. Tahmasbi opened 20th World Mining Congress along with an Expo. 206 state and private companies as well as 114 foreign companies are participating. According to Dr. Tahmasebi, "Iran government will support the private sector's presence in mining projects , mineral processing, machineries and exploration and we are expecting many visitors for this event
He further added that the main objective of such congresses and exhibitions is encouragement of private sector and foreign investment in mining activities. He said Iran is very interested to observe foreign investment in Iran's mine sector.
Companies from South Africa, Germany, Spain, Austria, Ukraine, England, Italy, Turkey, Russian, Sweden, Swiss, France, Finland, Canada, Poland and India are participating in the event
Malaysia Steel settles RM37.9m debt with Tenaga
Malaysia Steel Works (KL) Bhd (Masteel) has fully settled its outstanding debt with Tenaga Nasional Bhd amounting to RM37.9 million in electricity charges. In a statement today, the company said the final payment was made on schedule and in full accordance with the mutual agreement made between Masteel and Tenaga.
"The move is testament to the commitment Masteels management made to Tenaga when both parties began discussions on ways to resolve the outstanding electricity arrears, Masteels ED Mr Sunny Lee said.
Masteel had been in talks with Tenaga over the companys electricity bills as early as August 2004. The result was a write-back to Masteel amounting to RM11.84 million and settlement for the outstanding amount of RM37.9 million
US railway related manufacturers post strong financials
Local manufacturers of railroad equipment and freight car components are bounding along this year, fed by increased freight railroad use, transit spending and imports. Fuel prices, which are credited with having all kinds of economic impact these days, are also a factor those companies say. They say industries pressed by gas prices are shifting as much of their freight traffic as they can from the highways to the rails, adding to the pressure on and demand for railroad equipment.
Last week, Wilmerding-based Wabtec Corp. reported a net income increase of more than 63% in the third quarter. Wabtec, which traces its roots in Pittsburgh to 1869, was formed in 1999 by the merger of the Westinghouse Air Brake Co. with locomotive builder MotivePower Industries. Among a large stable of railroad products, Wabtec manufactures rail passenger and freight electrical systems and railroad brake components.
Portec Rail Products Inc., based in O'Hara Township, saw net income rocket up by more then 400% in the same quarter. The company sells rail joints, switch products and rail maintenance and lubrication products, among others.
LB Foster Co., a Green Tree based manufacturer and distributor of railroad track components, also jumped in the third quarter, racking up a 77% increase in net profit.
Spokesmen for the companies said in general, increased rail freight traffic is placing more and more pressure on the nation's rail lines, which in turn is increasing demand for their products.
Gulf Island Fabrication signs agreement for Blind Faith Project
Gulf Island Fabrication Inc. announced that its wholly owned subsidiary Gulf Island LLC, has executed a contract with Chevron North America Exploration & Production Company, a division of Chevron US, to fabricate the topsides for the Blind Faith platform. The Blind Faith field is a partnership of Chevron and Kerr-McGee Corp. It is located in approximately 7,000 feet of water in the deepwater Gulf of Mexico.
Gulf Island expects to begin fabrication in the first quarter of 2006 and expects to deliver the topsides in 2007.
Gulf Island Fabrication Inc., based in Houma, is a leading fabricator of offshore drilling and production platforms, offshore living quarters and other specialized structures used in the development and production of offshore oil and gas reserves. The company also offers offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, and steel warehousing and sale
UNDP & Arcelor agree to promote sustainable development in China
The United Nations Development Programme (UNDP) and Arcelor, the world's second largest steel producer, have signed an initial pact to strengthen public-private partnerships (PPPs) and to promote sustainable development in China. In a joint statement following the signing of the agreement in Beijing, Arcelor and UNDP said they will collaborate to improve energy efficiency, environmental awareness and promote PPPs. The framework of cooperation between UNDP and Europe-based Arcelor is for two years.
China is the first country where Arcelor has made such a pact with UNDP for the promotion of energy and environmental sustainability
The two organizations will work to improve energy efficiency through enhanced policy and legal frameworks, and capacity-building to implement the Kyoto Protocol's Clean Development Mechanism, the statement said.
They will also try to strengthen environmental management capacities and environmental awareness, while promoting PPPs in China as a tool for poverty reduction and development, with a special focus on energy and environment. Their co-operation will mostly focus on Shandong, Jiangsu, Qinghai and Sichuan
Taiwanese Cabinet considering China Steel chairman
Taiwanese Premier Mr Frank Hsieh said yesterday that the government will carefully consider a replacement for chairman of China Steel Corp. The premier also confirmed that Mr Chiang Yao-tsung, chairman of China Airlines, Taiwan's largest carrier, is one of the potential candidates for the CSC chairmanship. He added that a final decision on the appointment of the new CSC chairman is expected tomorrow or Wednesday.
Meanwhile, a Ministry of Finance official said the resignation of CSC chairman Mr Lin Wen-yuan has not been ratified by the ministry. Mr Lin tendered his resignation last month in an attempt to dispel controversy surrounding a stock bonus he has received as the company's CEO. Mr Lin represents the government in the Kaohsiung-headquartered steel company, which has been privatized, but the government still holds a controlling stake in the firm.
O'Neal Steel chooses Mr Holman Head to lead Southern Region
O'Neal Steel has announced the promotion of Mr Holman Head to executive vice president and COO. His new responsibilities include overseeing the company's regional vice presidents, as well as safety, quality assurance, process improvement and O'Neal Steel de Mexico.
Before joining O'Neal in 1980, he worked in outside sales for another Birmingham-based manufacturer. At O'Neal, Mr Head has worked in inside sales, outside sales and marketing. In 1990, he became director of the specialty products department. Four years later, he was named Birmingham district manager and in 1995 was promoted to vice president of purchasing and product development. Head later was named senior vice president of O'Neal's Southern Region.
With his latest appointment, he replaces Mr Terry Taft, who has been named president of Metalwest, an O'Neal subsidiary based in Brighton, Colo.
O'Neal Steel is the USs largest family owned metals service center, with headquarters in Birmingham and more than 60 locations nationwide, along with three in Europe. O'Neal's family of companies also includes Metalwest LLC, Aerodyne Alloys LLC, Leeco LLC and TW Metals.
Western Canadian Coal Corp presents Q2 results
Western Canadian Coal Corp WCCC announced its operating results for the three months ending September 30, 2005 with operating profit of C$7.6 million for the quarter ending September 30, 2005 on sales of C$19.1 million and year to date operating profit of C$15.6 million on sales of C$38.6 million. Net income for Q2 is C$5.2 million compared to a net loss of C$1.2 million for the same quarter in 2004.
Sales consisted of 155,879 tonnes of PCI coal at an average price of C$122.72 (US$102.14) per tonne. Cash costs for production were $72.11 per tonne.
WCCC is constructing a coal preparation plant at Wolverine to handle 3.million tonnes of hard coking coal per annum. Initial throughput, however, is expected to commence in July 2006, at the rate of 2.4 million tonnes per annum.
As a result of the recent reduction in crude steel production and high PCI inventory levels, as a result of previous over-buying, PCI requirements have dropped in recent months. Accordingly, the Company anticipates that of the 800,000 tonnes of its ultra low volatile PCI coal initially scheduled for delivery in the 2006 fiscal year, as much as 100,000 tonnes will be delivered during the first quarter of the next fiscal year.
Some mills, like POSCO in South Korea, have improved their PCI rates and increased the use of low volatile PCI. The Company has finalized one of two long-term purchase and sale agreements with POSCO.
SMS Demag AG announces changes in the company management
Starting on November 7, 2005, the Supervisory Board has appointed the former Deputy Members of the Managing Board Mr Burkhard Dahmen and Mr Eckhard Schulte to full members of the Managing Board of SMS Demag Aktiengesellschaft.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group.
SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology.
5 companies pre qualify to build Jebel Dhanna tank farm
It is reported that almost five companies have been pre-qualified for the EPC contract to build two 1 million-barrel crude oil storage tanks at Jebel Dhanna in the emirate of Abu Dhabi. Estimated to be worth at least $50 million, the 20-month contract includes civil, electrical and mechanical works.
The short listed companies include Turkeys Tekfen, local National Petroleum Construction Company, UKs Whessoe Oil & Gas, Chicago based Bridge & Iron and Italys Snamprogetti.
Austrias ILF Consulting Engineers has carried out the front-end engineering and design work for the facility, while Engineers India Limited is acting as the project manager. The client is Abu Dhabi Company for Onshore Oil Operations.
The local Target Engineering Construction Company is already carrying out work to upgrade the tank farm facility under a AED 220 million ($60 million) contract awarded in June.
