December, 12 2005
Coal output to be hiked by 100 million tonnes
The government has kicked off an emergency plan to step up output of coal and the public investment board, chaired by the expenditure secretary, has cleared 16 proposals of Coal India and its arms, entailing an investment of over Rs 5,000 crore during the last few days.
It is understood that the new projects would add another 100 million tonne of coal capacity in the country. At present, the total coal output is around 400 million tonnes, which includes CILs 290 million tonnes and about 100 million tonnes produced by various industries for captive use. Private mining of coal for commercial purpose is not allowed.
The projects cleared by PIB include doubling of the capacity of Bhubaneshwari open cast mine to 20 million tonnes, addition of 10 million tonnes to the 25 million tonnes Gevra project, a fresh 12 million tonnes project at Magadh, additional capacities of 9 million tonnes at Bharatpur mine, 7 million tonnes at Khadia, 7.5 million tonnes at Ashok, 6.5 million tonnes at Kaniah and 5 million tonnes at Kusmunda sites
The board, comprising finance and coal ministries and the Planning Commission, will shortly meet to consider another seven proposals, including Harjanbahal, Jhanjra, Bina and Kusmunda projects. The Cabinet committee on economic affairs is expected to give the go-ahead for these projects
The paucity in the domestic sector together with increasing prices in the global market has made imports expensive, hitting user industries like power, cement, steel and fertilizers. High price of coal is not only threatening to jack up the cost of power for industrial units, but has the potential to bring economic activity to a halt.
The government is also considering outsourcing of key mining activities under the emergency plan. Under this, the country would have surplus coal supply of 10 million tonnes by 2011-12, as against a shortfall of about 60 million tonnes now. About 30-35 million tonnes of new capacity would be added in the next 2-3 years
Orissa Sponge makers call for rationalizing of iron ore price
Close on the heels of announcement of closure of sponge iron units by Chattisgarh Association, Orissa Sponge Iron Manufacturer Association OSIMA has called for rationalization in the price structure of iron ore in order to ensure survival of the sponge iron plants in Orissa due to global downswing in the Iron and Steel market.
Chairman of the OSIMA, Mr GS Agarwal told media that the drop in Chinese demand for iron and steel had caused a worldwide slide in the prices of the metal and during the past six months, the prices of iron and steel items had come down by about 35% posing immense problems for the sponge iron units in the State. The units could sustain the competition successfully only if the availability of iron ore at reasonable prices was ensured.
It is reported that the Orissa Mining Corporation, Orissa Mining Development Corporation Limited and private mines lease holders are selling iron ore lumps to the sponge makers at the rate of Rs 1300 per tonne and sized iron ore at Rs 2100 per tonne as against Rs 350 per tonne and Rs 800 per tonne respectively last tear. OSMIA has called for restricting the increase to only 50%, which would result in price levels of Rs 525 and Rs 1200 respectively
Mr Agarwal informed that Orissa already has about 70 sponge iron plants and around 30 more are in the construction stage. The plants have a total annual production capacity of 6.9 million tonne and required about 17 million tonne ore and 13 million tonne of coal.
Jharkhand steel MoUs to give 800,000 jobs, if executed
Out of 40 odd MoUs signed by Jharkhand Government so far, around 98% relate to investments in the steel sphere, a sector which, even today, is the highest employment provider in the state. It is the steel sector on which the government is banking on for generation of employment opportunities
According to Mr D P Vidyarthy Deputy Director in Jharkhand industry directorate, if we can fructify all the MoUs signed, we can expect new jobs for 8 lakh persons, both direct and indirect. Most of it is expected to be indirect, given the trend of outsourcing.
Jharkhand has, while entering into MoUs with certain mega steel projects like that of Tata Steel or Mittal Steel, stressed the need for their support in building world-class training centers in the state. In fact, separate MoUs for assistance in strengthening the ITI network and in putting up additional ITIs by way of corporate participation in supporting the states trained manpower policy has been ensured.
India's EEPC to set up dedicated pavilion at Steelfab
The Engineering Export Promotion Council EEPC of India will set up a dedicated pavilion at the second edition of SteelFab, to be held at Expo Centre Sharjah from January 22-24 2006.
SteelFab is organized by Expo Centre Sharjah with the support of Sharjah Chamber of Commerce and Industry SCCI. Steelfab is Middle East's exclusive and most established trade platform for manufacturers and distributors of machine tools, welding machinery, consumables and other items related to the steel working business. The 3-day event will be Middle East's largest display of Steel, Fasteners, Accessories, Surface Preparation, Machinery and Tools, Welding and Cutting, Finishing and Testing equipment, and Coatings and Anti-Corrosion material.
EEPC was set up in 1955 under the sponsorship of the Government of India's Ministry of Commerce for export promotion of engineering goods, projects and services from India. Today, the Council has a membership of nearly 12,000 companies including large Corporate Houses, Star Trading Houses, Small & Medium Scale Units SME, among others. Of the total membership, approximately 60% constitutes the SMEs.
Besides EEPC, the pavilion will host seven other Indian companies dealing in other engineering products
NTPC gets 6 coal blocks with 3,850 MT reserves
It is reported that at a recent high level meeting the coal ministry has agreed to allocate NTPC six more coal blocks against NTPCs proposal for 15. Coal secretary Mr PC Parakh said that mines earmarked for CIL to be developed during the 11th Plan and mines allocated to and being developed by other agencies cant transferred to NTPC.
These blocks include Kerandari in Jharkhand with a proven reserve of more than 200 million tonnes, Chattibariatu in Jharkhand with reserves of 250 million tonnes, Chhattrasal in Madhya Pradesh with reserves of 150 million tonnes, Talaipali in Chattisgarh with reserves of 1000 million tonnes, Dulanga in Orissa with reserves of 250 million tonnes and Brahmini mines, at the border of West Bengal and Bihar with reserves of more than 2000 million tonnes.
Former CISA Chairman blames dumping for low domestic price levels
Mr Wu Xichun, former chairman of the China Iron and Steel Industry Association CISA told an industry forum over the weekend. That Dumping of some steel products in China, at prices far below domestic and international levels, from countries including Russia and Ukraine is to blame for a sharp decline in prices. Such behavior has hurt China's steel industry and we should be well aware." Other countries dumping steel products named by Wu include Kazakhstan, Thailand, Iran and India
He is reported to have cited example of Russia which exported 569,100 tonnes of HRC to China in the first 10 months this year up by 242% than a year ago. Thailand exported 896% more YOY with 249,600 tons in the period.
In October, the CIF prices of HR products from Kazakhstan to China averaged US$396 per ton. The same products from Iran were quoted at US$412, US$426 for Thailand and US$428 for India.
Mr Schroeder named Chairman of Gazproms Baltic Pipeline
Russias natural gas giant Gazprom has named Mr Gerhard Schroeder, the former chancellor of Germany, chairman of a pipeline building subsidiary that has begun building the first direct energy link between Russia and Western Europe. Mr Schroeders appointment came as a sign of the deepening ties between Russia and Germany, the closeness of the former chancellor to President Vladimir Putin, and the growing influence of Russian energy companies in Europe.
The subsidiary Schroeder will lead, the Northern European Gas Pipeline Company, is 51% owned by Gazprom. Germanys two largest energy companies, BASF and E.ON, hold 24.5% each.
The formal groundbreaking for the Northern Pipeline came amid freezing temperatures and snow flurries outside this village north of Moscow, though actual construction began two months ago, before the consortium was completely arranged.
Australian Midway Metals opens SS factory in Vietnam
Midway Metals Group, Australias largest independent stainless steel producer, opened its first factory in Viet Nam last week in Chau Son Industrial Zone in northern Ha Nam Province, about 65 kilometers south of Hanoi. The US$4.5 million factory is equipped with cutting-edge technology imported from Australia
"The stainless steel market in Viet Nam is obviously expanding. This factory is important for the group as it would allow us to branch progressively into Asian markets," said Mr Anthony Jolly, GM of Midway Metals Viet Nam. Midway decided to invest in Viet Nam as it saw great opportunities to explore and develop business here, Mr Jolly said." The incentives offered by the Government are conducive for us to carry out our business activities both here in Viet Nam and for exports. The countrys cultural and social appeals have also influenced our decision to set up business here," he said.
Midway Metals provides stainless steel for sugar and paper industries, robotics, heavy engineering and mining industries, pharmaceuticals and beverage companies, ship and boat building industry, abattoirs and allied sectors.
Danieli to construct iron ore factory in Sangan Iran
Sangan Iron Ore Company and Italys Danieli SpA will soon kick off negotiation on construction project of Sangan Iron Ore Factory located in the city of Khaf, South Khorasan Province. The factory will carry out condensation, conglomeration and agglomeration processing of iron ore for industrial usage.
A bid held three years ago, awarded the Danieli with a joint project valued at $155 million. However, the initial plan set for a 1.3million tonne factory was not materialized. Now, both sides are determined to bring the initial project to the fore and double the capacity as well.
ABARE predicts increase in iron ore and coking coal export in 2006
Australian iron ore export earnings are expected to surge 72% to almost A$14 billion this fiscal year as the exports are forecast to increase by 17% to 267 million metric tons in the fiscal year ending June 30, 2006, the Australian Bureau of Agricultural & Resource Economics ABARE said in its December quarter bulletin.
Export earnings from coking coal are expected to surge 64% this fiscal year to A$17.7 billion as "higher export volumes and sustained high contract prices are forecast to support growth in the value of metallurgical coal." Coking coal exports are forecast to rise 6% in 2006 to 133.6 million tons, giving Australia a 59% share of seaborne metallurgical coal trade, ABARE said.
Corus first to get CE mark on steel for construction in EU
Corus Construction & Industrial CC&I UK is the first steel producer in the world to gain approval for plates and sections against the Construction Products Directive. Achieving this approval means that CC&I is able to apply the CE mark to all products manufactured against the structural steels standard EN 10025: 2004 Parts 1 to 6 within the grades and thicknesses that have been approved by Lloyds Register Verification Services.
It is understood that from September 2006, all material used in the construction industry within the European Community must be CE marked.
Beijing to enforce a policy of sending managers down the mine shaft
Beijing expects to close down 83 coal mines in its year-end coal mine safety rectification drive, said an official with the Beijing Mine Safety Supervision Bureau. The city will set up a coal mine safety system, under which coal mine directors and managers would have to go down the shafts in shifts to ensure safe production and reduce chances of accidents
The new regulation will be issued next year, said Mr Jia Taibao, deputy director of the Beijing Mine Safety Supervision Bureau, adding that each shift of underground coal production should be accompanied with at least one leading cadre of coal mine, Mr Jia said.
A total of 83 coal mines are expected to be closed by the end of this year in Beijing, due to safety reasons, Mr Jia said. Beijing reported eight coal mine accidents in the first 11 months this year which claimed lives of nine miners. While in the same period of 2004, the city reported 19 coal mine accidents with a death toll of 31.
Bahrains USCO signs deal with ABC for funding of CR SS Mill
Bahrain based United Stainless Steel Company USCO has signed a facility agreement with Arab Banking Corporation ABC as sole underwriter and mandated lead arranger yesterday in Bahrain. The Facility will be used to part-finance the construction of a 90,000 tonnes per year cold rolled stainless steel mill in Hidd Bahrain. The total facilities amount is $153m.
USCO is one of the major industrial projects in Bahrain with an investment of more than $200m by Gulf Investment Corporation GIC. USCO was established in February 2005 and construction commenced in April 2005. Production is scheduled to start in April 2007. It will be the first CR SS mill in Middle East
EBT electric arc furnace operational in INSIG
Iran National Steel Industrial Group INSIG has succeeded in putting into operation its eccentric bottom tapping EBT electric arc furnace in Ahvaz, in Khuzestan Province with annual capacity of 430,000 tons of steel
The furnace utilizes the most advanced automation system. The furnace is capable of melting 60 tons of steel per hour with options of automatic injection of coke and oxygen and blowing the neutral gas argon into its floor. The four cycle preheating system is likely to reduce energy consumption in the furnace to 450 kilo watts electricity per hour for each ton of steel production.
8 believed killed after collapse of Cebu mine in Philippines
An explosion at 7PMon Saturday, reportedly caused by methane gas, destroyed the mineshaft at the Ibalon Resources and Development Corp mining site in Sitio Kinawilaw, Barangay Dumalan in Dalagete, Cebu. The explosion is reported to have killed up to eight people in Cebu province over the weekend. Authorities said only two miners were confirmed dead so far while six others are still missing
The Cebu mining disaster came a month after 11 miners died inside a collapsed tunnel of one of the mining shafts around Mt. Diwalwal in Compostela Valley.
It is reported that the coal mine in Dalaguete produces about 3,000 to 3,500 tonnes every month, supplying local cement manufacturers and the National Power Corporation.
Hebei to overhaul colliery safety
North China's Hebei province will start a general overhaul of coal mining safety, as frequent fatal accidents hit the province over the past month. The overhaul will be carried out in two phases, starting from December 12 to January 29, 2006 to March 16 of next year, said deputy governor Mr Guo Gengmao of the province. A special task has been set up to carry out the overhaul mission, he said.
Mr Guo ordered local officials to severely crack down on the illegal productions of coal mines and safeguard people's lives and properties, in a bid to ensure a harmonious atmosphere across the province.
Four major coal mine accidents occurred in succession from November 6th to December 7th in Hebei province
Alcan agrees to Oman smelter project
Alcan Inc announced that it has agreed to proceed with the construction of a $1.7 billion aluminum smelter in Oman by taking a 20% stake in the smelter, which will have an annual production capacity of 350,000 metric tons. Production is expected to begin in the third quarter of 2008.
The smelter will be based near the existing Sohar Industrial Area, in the Al Battinah Region of Oman. The smelter will have long-term access to a dedicated supply of electricity through the construction of a new Sohar Aluminium-owned 1,000 MW power plant.
The smelter's initial scope will be based on a single potline using Alcan's AP35 technology, but there are provisions for adding a second potline, of which Alcan has an option to acquire up to 60 percent, the Canadian company said.
Alcan's partners in the project are Oman Oil Co., and the Abu Dhabi Water and Electricity Authority.
