November, 09 2005
SAIL shareholders vote on merger with IISCO
Shareholders of Steel Authority of India Ltd SAIL today voted at an extraordinary general meeting EGM on the amalgamation of the companys wholly owned subsidiary Indian Iron and Steel Co IISCO with Sail as directed by the company affairs ministry.
The outcome of the poll will be made public shortly, when the chairman submits his report to the MoCA.
Following government approval in June this year and subsequent clearance by the Board for Industrial and Financial Reconstruction BIFR of the steel ministrys proposal for the amalgamation of IISCO with SAIL, the matter was referred to the company affairs ministry (MoCA) for approval.
The MoCA had directed Sail to hold its shareholders meeting to obtain their consent to the proposed amalgamation under the provisions of Article 391-94 of the Companies Act, 1956. It had also nominated Sail chairman, Mr VS Jain, as the chairman of the meeting of the companys shareholders.
W Bengal CM calls for National Mineral Policy
West Bengal Chief Minister Mr Buddhadeb Bhattacharjee has urged Prime Minister Mr Manmohan Singh to immediately formulate a clear cut national policy for minerals for its distribution across the country. '' Some neighboring states have been refusing to supply iron ore to us for a steel factory in the state despite several rounds of talks,'' Mr Bhattacharjee said
''If the states having coal reserves cannot have total control over coal how can some states have complete control over iron ore?'' he asked
Mr Bhattacharjee said he had to meet the Prime Minister to explain the situation and despite Dr Singh's efforts no progress could be made over supply of iron for steel plants in the state. ''It's high time that the Centre comes out with a clear cut policy for national utilization of minerals available in the country," he pointed out.
Steel Strips Wheels to set up a wheel rim plant in Hosur
Steel Strips Wheels Ltd has announced setting up of a 3 million steel wheel rims capacity per annum plant in Hosur near Bangalore at an estimated cost of Rs 90 crore.
It is learnt that although the plant would be catering to passenger cars and multi utility vehicles industry in India but would also undertake exports due to proximity to Chennai port
Czech industry looking at Indian market
Czech industry is looking at diversifying trade outside the EU and is very interested in coming to India, especially in the sectors of transportation, energy and infrastructure, said Czech republic President Vaclav Klaus at a CII meet.
The Czech Republic would also encourage proposals from Indian companies for agriculture and industrial production, he added.
Nippon Steel expects the market to recover by March 2006
Nippon Steel Corp, the world's third largest maker of the steel, expects to return to normal production levels by March next year after reducing domestic stockpiles, its president said. "We hope inventory adjustments could be made within this year," Akio Mimura told media, referring to the fiscal year through March 2006. "If we can adjust the inventory level to normal levels, then we can recover our production level," he said, without specifying what normal output would entail.
Nippon Steel, which churned out 33 million tonnes of crude steel in 2004, has announced production cuts of 1 million tonnes in the second half, double the cuts that had been planned earlier.
Nippon Steel more than doubled first-half net profit on robust sales of high-quality sheets, and raised its annual earnings outlook in October. But a glut of steel capacity in China, a crucial market for the Nippon has become cause for concern.
ThyssenKrupp announces price increases for flat steel wef January
The Western European market for flat-rolled carbon steel has stabilized once again. Steel customers have largely cleared their inventories and imports from outside the EU have eased.
Against the background of improved demand, effective January 1, 2006 ThyssenKrupp Steel AG will be increasing its prices by EUR20/t for hot-rolled, cold-rolled and coated products and non-grain-oriented electrical steel sold under quarterly contracts. There is still some catching up to do to compensate for the cost pressure affecting raw material and energy purchases.
Significant price rises are to be implemented effective January 1, 2006 when renegotiating long-term contracts with major customers, as hardly any allowance has yet been made in this area for the high cost increases over the course of this year.
MMK to boost steel exports to EU in 2006
Magnitogorsk Iron & Steel Works MMK could increase exports to Europe in 2006, said Mr Viktor Rashnikov, the company's chairman of the board, after yesterdays announcement of agreements under which Russia could increase exports of metal products to the European Union to 2.27 million tonnes in 2005 from 1.8 million tonnes in 2004
MMK is Russia's biggest exporter and exports approximately half of its products and has a sizable presence in European market. MMK increased exports to Western Europe to 17% of total exports in 2004 from 13% in 2003.
Bao Steel's Brazilian steel venture delayed
Amid a global steel glut, that has forced Chinese makers to trim output, Baosteel Group Corp.'s proposed $2.5 billion steel production venture in Brazil has been delayed. Mr Xu Lejiang President of Bao steel announced that planned 4 million tonne venture with CVRD and Arcelor is being studied without giving a revised timetable. The project had been expected to win Brazilian government approval this year and start up in 2010.
"We're still doing the feasibility study. We have had some difficulties in terms of land acquisition, environment certification and taxes," Mr Xu told press. "We haven't resolved them, and the project is delayed for those reasons."
ITC continues CVD on cut to length plates
The US International Trade Commission ITC determined that revoking the existing countervailing duty CVD orders on imports of cut to length carbon steel plate from India, Indonesia, Italy, and Korea and the existing antidumping duty AD orders on imports of cut to length carbon steel plate from India, Indonesia, Italy, Japan, and Korea would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time, but that revoking the existing antidumping duty order on imports of this product from France would not.
As a result of the Commission's affirmative determinations and the Department of Commerce's recent affirmative findings, the existing orders on imports of this product from India, Indonesia, Italy, Japan, and Korea will remain in place and the Commission's negative determination, the existing order on imports of this product from France will be revoked.
Today's action comes under the five year sunset review process, constituted on January 3rd 2005, required by the Uruguay Round Agreements Act. The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC) within a reasonably foreseeable time.
Severstal looking for a stake in Tonghua Steel of China
It is reported that Severstal Group is in talks concerning acquisition of a stake in Tonghua Steel of China. As the talks are at the initial stage, the parties decline to comment on terms or the size of the stake. It is too early to speak about it, we are only viewing the asset, representatives of Severstal Group said.
Tonghua Group is a mid.-size steel company, capable of producing 2.5 million tons of steel per year. Its obvious disadvantage has been the lack of the raw base of its own and the need to annually import 1.62 million tons of iron ore. But recently Tonghua Group was licensed to produce from the North Korean Musan deposit with the ore reserves of 7 billion tons
Siemens VAI to supply ladle furnace to Sheffield Steel
Siemens AG has announced that Sheffield Steel Corp has awarded a contract to them for supply of a new 85-ton ladle furnace, to treat up to 750,000 tons per year of carbon and low-alloy steels. Voest-Alpine Industries in Pittsburgh, a subsidiary of Siemens Industrial Solutions and Services division, will manage the project. The new ladle furnace equipment is scheduled to start up in the fall of 2006.
The assignment also covers the supply of auxiliary equipment, including a Level 2 process controls, a LF transformer, ladle turret, an alloy & lime addition system, a fume exhaust system and a water-treatment facility.
Sheffield Steel has a current capacity of 650,000 tons per year of steel, and produces billet in various sizes for a range of finished products, including fence posts, railroad spikes, and fabricated and epoxy coated rebar for highway and construction projects
Bao Steel, Nippon and Arcelor JV for auto grade steel plant
Bao Steel, Nippon Steel Corp and Arcelor SA yesterday announced that its JV in Shanghai, which will supply steel for the world's third largest auto market, is expected to achieve full production next year and capture half of China's automotive steel market of 11 million tons by 2010.
Baosteel-NSC/Arcelor Automotive Steel Sheet Co., Ltd. was established in July 2004 and started test production at the end of 2004. The plant, which represents an investment of USD 800 million and employs 650 people, has an annual production capacity of 1.7 million tonnes of flat carbon steel, mainly for automotive applications.
It is located next to Bao Steel's upstream production facilities and comprises both cold rolling and galvanizing operations. Products include cold rolled steel, galvannealed steel and pure zinc galvanized steel. The two galvanizing lines will have a combined capacity of 800 000 tonnes per year. The first of the two galvanizing lines was put into production at the end of March 2005 and the second one at the end of June, ahead of schedule in both cases.
Baoshan Steel owns 50% of the new unit, Nippon Steel holds 38% and Arcelor 12%. The venture, with total investment amounting to 6.5 billion yuan, is initially scheduled to produce 1.7 million tons of products including cold-rolled steel plates annually.
Gerdau Q3 earnings slip by 32%
Brazilian steelmaker Gerdau registered an 812mn-real (US$368mn) net profit for the third quarter of 2005, a 32% decrease YOY from 1.19bn reais, according to a company report. Net revenue for the quarter totaled 5.09bn reais, down 3% from 5.23bn reais in same-period 2004 while EBIDTA dropped to 1.15bn reais from 1.67bn reais in 3Q04. Quarterly results in part reflect the real's appreciation against the US dollar, the company said.
Net profit for the first nine months of 2005 totaled 2.52bn reais, a 1% increase from 2.49bn reais in same-period 2004. During the January-September period net revenue totaled 16.4bn reais, up 11% from 14.7bn reais during the first nine months of 2004, while EBIDTA decreased 9% to 3.87bn reais.
Gerdau plans to invest US$3.2bn to boost crude steel production capacity from 16.3 million tonnes to 21 million tonnes and hot rolled output from 12.9 million tonnes to 15.4 million tonnes by 2007
Porto Alegre-based Gerdau is the largest long steel producer in the Americas. The company has operations in Argentina, Brazil, Canada, Chile, Colombia, Uruguay and the US.
Explosion in miners' dormitory in Xinjiang kills 14
Fourteen people were killed and two seriously injured in an early morning explosion yesterday at the Beitashan Coal Mine in Qitai County, about 150 kilometers east of Urumqi, capital of the Xinjiang Uygur Autonomous Region.
The explosion happened at 1 am yesterday morning at the workers' dormitory and the reported cause is stored detonators and explosives.
Wheeling Pittsburgh in red
Wheeling based US Steelmaker Wheeling Pittsburgh Corp on Tuesday reported a third quarter loss on low steel prices and high costs, amid what CEO Mr James G. Bradley described as a very difficult year. The company reported a loss of $21.1 million in the three months ended Sept. 30, after a profit of $35.5 million in the year-earlier period. Revenues fell 7% to $374.9 million.
Wheeling-Pitt said the cost of making steel had outstripped the price for selling it. The cost of sales jumped to $630 from $600 per ton in the quarter as the average selling price fell 17% to $623, even while shipments increased 6% to 567,577 tons.
"It's important for us to state that we are disappointed with our 2005 operating results," said Mr Bradley. "We are keenly aware that our operating results have lagged behind a number of our competitors."
The company said that the year's earnings have been "hampered by unusual events," including the disruption of coal deliveries from its major supplier, a ductwork collapse at an Ohio furnace and problems during the startup of its new $115 million electric arc furnace in Mingo Junction, Ohio. The steel maker's lawsuit against a subsidiary of coal producer Massey Energy Co. is expected to go to trial in Brooke County Circuit Court in July, Mr Bradley said. "We look forward to recovering the significant penalties this situation has caused," he said.
Company officials said they expect to see improved performance in the fourth quarter following maintenance on several facilities and due to an increased steel demand. "Our sales backlog for all products currently stands at approximately 450,000 tons," said Mr Harry Page, president and COO of Wheeling-Pitt. "This backlog is at a level that we have not enjoyed since mid-2004."
Wheeling-Pitt, which employs about 3,100 people at plants in West Virginia, Ohio and Pennsylvania, emerged from Chapter 11 bankruptcy protection in August 2003.
Mittal Steel plans to overhaul Kryvorizhstal facilities
Mittal Steel has announced plans to overhaul the facilities in Kryvorizhstal steel mill in Ukraine's, which it bought at a recently.
The plan is aimed at increasing output, introducing advanced know how, widening the products line and cost cutting, as per an announcement from the mill in local media
Bao Steel proposing a new steel mill in Zhanjiang
It is reported that Bao Steel has proposed to build a major new steel plant in southern China and the company, together with the Guangdong provincial government, has formally applied to the central government but has not yet received approval. "The government is processing our applications, but we have no comments on when the project would be approved," Mr Xu Lejiang President of Bao steel told local press
The proposed plant in the port city of Zhanjiang has a planned initial capacity of 10 million tonnes a year with option of raising it to 20 million tonnes later
Outokumpu to supply pallet furnace to Brazilian Samarco
Finnish Outokumpu announced that it has signed a turnkey contract worth Euro 170 million for a pellet furnace with Brazilian Samarco Minerao, the world's second-biggest seaborne exporter of iron ore pellets.
The new plant will be installed at Samarco's iron ore port in Ponta Ubu, Espito Santo, Brazil. Once operational at the end of 2007, the plant will treat 7.25 million tonnes of iron ore per year, which makes it the largest in the world.
Outokumpu Technologys scope covers the entire engineering, supply, construction and start-up of the pellet indurating furnace. The new plant will meet all the latest environmental regulations. Approximately 80% of the services and supplies will be sourced locally in Brazil.
"This deal confirms our position as a leading technology partner for the iron and steel industry, especially in Brazil, one of the world's largest iron ore producers. Outokumpu's traveling grate technology, originally developed and designed by Lurgi, is already being used successfully in nine Brazilian palletizing plants," said Mr Tapani Jvinen, the CEO of Outokumpu Technology.
Centennial Coal releases quarterly activity report
Centennial Coal has released its quarterly report for quarter ending in September 2005.
ROM production for the quarter, at 3.6 million tonnes, was 2% below the prior corresponding period primarily due to the timing of longwall changeovers and the impact of the previously advised difficult geological conditions experienced at Newstan
Sales for the quarter, at 3.3 million tonnes, were 3% above the prior corresponding period primarily due to the addition of Mandalong, as a producing longwall operation and Tahmoor acquired in April 2005 to the Groups portfolio of major producing assets.
Groups export thermal sales reflect the strong market of the last 12 months, with an average contracted quality adjusted thermal price of US$50, and export tonnages through Newcastle and Port Kembla are in line with expectations.
Recent trials of Newstans semi-soft coal continue to confirm increased fluidity levels in the new southern area, strengthening the prospects that the coal will be reclassified as a soft coking coal. As a result of this increased fluidity, Newstan semi-soft coal continues to be highly regarded by existing and potential customers and should therefore maintain its price premium.
The general outlook for coking coal remains strong, with no material change in the demand / supply balance to suggest any reason for a significant change to coking coal prices. Recently reported sales have been transacted above US$120 per tonne, supporting the generally strong outlook for coking coal.
Japanese steel makers criticize US steel duties
Japan steel makers have voiced their concern at the recent recommendations of the US International Trade Commission for continuing duties on cut to length plates from Japan
In a sunset review of the plate order, first imposed in 2000, the ITC determined that elimination of the duties would result in a continuation or recurrence of injury
World Trade Organization rules create a presumption that anti-dumping orders should normally expire after five years, said Mr Hidenori Tazawa, head of the Japan Steel Information Center.
Precoat Metals to offer warranties on painting over Passivated Steel
Precoat Metals, a division of Sequa Corporation will now offer a warranty for painted coils over passivated "chemtreated" galvanized steel substrates. Until now, the performance of painted passivated galvanized has been inconsistent particularly in the areas of adhesion and flexibility. Consequently, coil coaters have been reluctant to offer warranties when paint is applied to a passivated galvanized substrate, making it necessary for customers to maintain dual inventories of passivated and non-passivated galvanized steel.
After several years of cooperative development with its supply chain partners, Precoat has delivered a breakthrough in coil coating technology. Thorough testing has demonstrated excellent performance, overcoming the adhesion and flexibility issues of the past, and enabling Precoat Metals to offer this warranty.
Commenting on these efforts, Gerard M. Dombek, president of Precoat Metals, said, "This service gives our customers greater flexibility in managing their inventory and will significantly improve yields. The producers of galvanized steel can now passivate nearly all their galvanized product and reap the benefits of common inventories while reducing the potential for white rust corrosion."
Precoat Metals is a leading supplier of coil coating services to the building products, container, transportation, appliance, and manufactured products industries. Precoat operates plants in St. Louis, MO; Granite City, IL; Houston, TX; Jackson, MS; Portage, IN; and McKeesport, PA.
Sequa Corporation is a diversified industrial company with seven business units organized around six operating segments: aerospace, automotive, metal coating, specialty chemicals, industrial machinery, and other products.
Usiminas reports Q3 results down
Usinas Siderurgicas de Minas Gerais SA USIMINAS announced its third quarter 2005 results by reporting net Income of R$ 2.6 Billion and EBITDA of R$ 4.6 Billion. The total sales during Q3 of 2005 dipped by 12% to 1.77 million tonnes as against 2.011 million tonnes during Q3 of 2004 resulting in 5% reduction in net revenues and 22% reduction in net income
Mr Rinaldo Campos Soares CEO said "Overcoming challenges -- this has been the constant work undertaken associated with producing quality steel. As we have said in the recent past, we are living a period of adjustments in the domestic and international steel markets. The Brazilian steel industry will finish the year with a production slowdown over 2004, arriving at an estimated 31 million tonnes. Conversely, global production, stimulated by China, should reach 1.1 billion tonnes of crude steel in 2005, indicating growth of around 6%, in spite of production cuts made with the intentions of aligning supply and demand and inventory reductions. In view of the above, the task of maintaining the excellent results achieved throughout the steel industry in 2004 would be considerable, requiring great effort on the part of companies. To the measure that we are in the middle of a declining steel demand curve, the Usiminas System is doing its part by adjusting production and sales to the reality of the moment, maintaining a firm, determined course in its cost control policy, preserving good margins and producing solid results. As a consequence of this performance, net income of R$ 2.6 billion and operational cash generation of R$ 4.6 billion booked through September demonstrate growth of 37% and 21%, respectively, compared to the same period in 2004. We not only amortized slightly more of our debt, we also are investing in the Ipatinga and Cubatao plants with a view to further reduce costs and add value to our products. We continue confident in relation to the medium and long-term outlook and reaffirm our belief that dedicated work and a qualified team will allow us to overcome all difficulties."
Evraz focusing on coal & ore business
Evraz, Russia's largest steelmaking group, and one of its biggest iron-ore and coalminers has revealed in its latest prospectus that the group has halted steel acquisitions abroad, and is now focusing on repaying accumulated debt, cutting investment in its steel units, and increasing control over its Russia based coking coal and iron-ore mines.
The prospectus was issued by the group's Luxembourg-registered unit on October 25. This in turn is guaranteed by the Mastercroft, a Cyprus registered holding. A target of $750 million has been set for the sale of the unsecured bonds, to be traded in London.
In May, Evraz said it would apply the IPO proceeds to buy mining assets in Russia, plus "downstream steel operations outside of Russia". At the same time, Mr Abramov's junior partner Mr Alexander Frolov was exuberant about expanding into foreign steelmaking, announcing that the financial results for 2004 "provide a platform for Evraz to further increase capital expenditure at our existing plants, undertake targeted acquisitions in steel" In October, by contrast, the group reports that it "intends to use these net proceeds to pursue the acquisition of additional mining assets in Russia and the CIS, to repay existing indebtedness and for general corporate purposes."
The prospectus estimates that Evraz currently controls much more coking coal than is consumed by its steelmaking operations, and can sell substantial volumes to third parties. However, the Evraz group stake in its principal coal-mine, Raspadskaya is reported to be just under 48%, with substantial obligations still to be paid to the majority owners. Evraz is already acquiring new mine licenses, and exploring for more reserves and a new coking-coal venture was announced in September, when Mitsui agreed to pay $42.8 million for a 30% stake in Neryungriugol for the development of the Denisovskoye mine in the fareastern Sakha republic where Evraz holds 70%.
Fortescue confident of funding for $2.3 billion Pilbara iron ore project
Fortescue Metals Group is confident of meeting the financing deadline to develop its $2.3 billion Pilbara iron ore project. The company needs to finalize funding within four months if it is to meet its forecast production schedule. The project has a construction period of between 20 and 22 months and with first ore forecast by late 2007 or early 2008
Fortescue CEO Mr Andrew Forrest announced, during companies AGM that the preferred method of raising part of the necessary cash would be via a JV partner. And the rest of the funding would more than likely come from American investors or debt providers, he said.
Initial production has been set at 45 million tonnes of iron ore a year, but this could be increased to 60 million tonnes if a joint venture partner required more ore. "We have an infrastructure platform that can do at least 100 million tonnes, we have paid for it, it's there and you may as well use it if the market wants you to," Mr Forrest said.
The company is also working on proving up further reserves and to date, 2.4 billion tonnes of iron ore has been defined in resources with about 400 million tonnes in reserves. Mr Forrest said he had set an internal target of one billion tonnes in the reserve category, but added that funding of the project was not dependent on reaching that level.
Hamersley Iron gets environmental approval for Pilbara expansion
It is reported that the Western Australian Government has given environmental approval to Hamersley Iron to expand one of its mines in the Pilbara, making it the fifth Pilbara iron ore development to be given the go-ahead in the past few months. Hamersley Iron will expand its Yandicoogina mine from 36 million tonnes to 52 million tonnes of iron ore a year.
Under the approval, Hamersley must ensure that sensitive aspects of the environment are protected, including flora and fauna and vegetation associated with a number of creek lines near the mine site.
Australian completion council ruling may hamper exports
BHP Billiton has been advised by the National Competition Council NCC that it has issued a draft recommendation to declare a rail track service on the Mt Newman iron ore railway line under part IIIA of the Trade Practices Act.
The NCC will now accept public submissions on its draft recommendation prior to a final recommendation being made to the Federal Treasurer, which is likely in the early part of 2006. Following this, the Treasurer will have 60 days to decide whether the Mt Newman line will be declared. Proceedings underway in the Federal Court of Australia to determine whether the Mt Newman railway line is part of an integrated production process, and therefore exempt from declaration under Part IIIA of the Trade Practices Act, are continuing.
President BHP Billiton Iron Ore Graeme Hunt said the company was reviewing the implications of the draft recommendation and would be making extensive submissions to the NCC as to why it believed the draft recommendation was incorrect. "The Mt Newman line is an integral part of our iron ore production process and is one of the most advanced heavy haulage railways in the world. Its efficient operation and expansion have played a crucial role in the growth of iron ore exports from Western Australia," he said.
"At a time of massive demand for Australia's iron ore it makes absolutely no sense to be proposing to undermine one of the industries that has performed best in expanding export-related infrastructure." The potential negative impacts of declaration include delays to further expansions, increased system complexity and reduced incentive for investment, which will result in significantly higher costs for one of Australia's most important export industries.
Kian Joo Can Factory to install an advance line for can production
KIAN Joo Can Factory Bhd KJCF said the worlds first Microflex manufacturing line, capable of the most sophisticated metal can production but at a much lower investment cost, will be installed in Malaysia and expected to be in operation by the second quarter of 2006. The new can-making system is suitable for both aluminium and steel, mobile and able to suit the economic cost of raw material.
It has teamed up with Omnitech International Inc (OII) to form a newly joint-venture company called KJO Systems Sdn Bhd to manufacture and integrate components of the Omni-Can System.
The Omni-Can System is a standardized, pre-engineered modularized Draw & Ironing 2pc can line design and manufacturing system that replaces 3pc metal can and is used for food, aerosol, beverage and bottle cans.
KJO Systems will be located in Nilai in Negri Sembilan and is expected to be granted pioneer status by the Malaysian Industrial Development Authority.
FEC Resources increases holding in iron ore license
FEC RESOURCES INC. is pleased to report that the company has agreed terms to increase its interest in an Iron Ore Mining license situated to the North of Manila in the province of Bulacan, Philippines. The agreement supersedes the previously announced deal with Transpacific Mining Limited and accordingly the company will increase its stake in the license by 15% by acquiring a direct 35% equity interest in Metalore Mining Corporation, the Philippine Operating Company which owns and operates the 64 Hectare license situated in close proximity to Manila.
As part of the transaction, the company's previous 20% indirect holding, held through TML, will be cancelled, as will the original US$500,000 non-interest bearing and unsecured loan from FECR to TML. TML will remain the majority shareholder of MMC.
An independent Competent Persons Report indicates the estimated probable reserves of the license are between 25 - 50 million metric tons of high grade iron ore, with Fe content in the range 60 - 75%. Production commenced in October at an initial rate of 20,000 Metric Tons per month.
China to close at least 4,000 coal mines this year
China's coal mine safety watchdog has ordered the closing down of at least 4,000 coal mines. The move comes in the wake of a series of coal mine and coal mine-related accidents across the country which claimed dozens of lives between November 3 and 8.
Mr Zhao Tiechui, director of the National Bureau of Production Safety Supervision and Administration, revealed on Monday that so far, 12,148 coal mines have been ordered to suspend production for rectification. Among them, 1,870 were closed for safety reasons.
In recent years, the Chinese government has issued a series of regulations and measures to improve coal mine safety. But, the situation is still grave. Official statistics said that from January to September this year, 4,228 people were killed in 2,337 coal mine accidents. Up to October 10, there were 43 major accidents nationwide.
Ivanhoe Mines appoints Mr Wustay to lead Mongolian coal division
Mr Robert M. Friedland, Chairman of Ivanhoe Mines, announced today that the company has appointed Mr Gene Wusaty, as President of its Mongolian Coal Division. Mr. Wusaty has been given the mandate to lead the company's development of its coal projects in Mongolia, including the Nariin Sukhait Mine Development Project.
"We are just beginning to unlock the potential of our coal properties in Mongolia," said Mr Robert Friedland, Ivanhoe Mines' Chairman. "We believe Mr. Wusaty is the right individual to lead our Mongolian coal mining team. He has extensive experience in project management of all phases of coal mine development and operations, including engineering, permitting and processing, and safety and environmental programs."
Mr. Wusaty is a professional mining engineer with 25 years of mining- related operational experience, with progressively increasing responsibilities in underground and open-pit coal mining and coal-fired power generation operations in Alberta and British Columbia, Canada. In the coal industry he has worked for Elk Valley Coal Corp., Fording Coal Limited, Quintette Coal Ltd. and Grande Cache Coal Corp.
Andritz reports results for the January-September 2005
Technology Group Andritz has reported a favorable business development for the first three quarters of 2005. Sales of the Group increased to Euro 1.204 billion up 12.5% compared to the reference period of last year with net income excluding minority interests at Euro 56.8 million
Order Intake also developed very favorably at Euro1.4 billion, it was 31.0% higher than during the reference period of last year and Order Backlog, at Euro 1.667 billion reached a new record level, thus giving a good visibility with regard to Sales for the coming Quarters.
Based on the financial results for the First Three Quarters of 2005 the Andritz Group expects to reach new record results for the full year of 2005. The Managing Board confirms its financial guidance given on the occasion of the results for the First Half of 2005 and expects Group Sales to increase by approximately 20%, and Net Income by approximately 35% compared to 2004.
We intend to raise dividend for 2005 at least in step with the expected increase of Net Income, which corresponds to a payout ratio of approximately 35%, says Mr Wolfgang Leitner, President and CEO of Andritz, and adds: In targeting an even more shareholder oriented dividend policy, it is planned to increase the payout ratio to 40% on a medium-term basis.
For 2006, Wolfgang Leitner is optimistic: Based on the forecasts of economic researchers, who expect global economic growth to continue over the next Quarters, we expect a satisfactory project activity in all of our Business Areas. Taking into account these positive economic conditions and our high Order Backlog we are confident for the coming year:
The Andritz Group, listed on the Vienna Stock Exchange, is a global market leader for advanced production systems for pulp and paper, steel and other specialized industries. It develops and makes its high-tech systems at 15 production sites including Austria, Germany, Finland, Denmark, France, Netherlands, USA, Canada, and China
Bangladesh considering to re draft law for large investments
Bangladeshs Board of Investment will draft a new law to deal with large scale package investments like that of Indian Tata and Dubai based Dhabi Group as experts say the big ventures involve various new dimensions, reports. This necessity emerged during the negotiations with the Tata Group as the government negotiators found the existing rules and policies wanting with regard to such large investments coming as unsolicited offers.
Following this emergence of necessity, the BoI has decided to initiate a move to create a legal instrument to deal with the multidimensional investment proposals, which will exceed the minimum level of billion-dollar business.
