December, 19 2005
POSCO finalizes plans for Orissa project
South Korean POSCO has announced that it has finalized plans to invest $12 billion to build a 12 million tonne plant in Orissa by 2016. "Not only is the Korean investment the largest of its kind in India, it is the largest of its kind in the world. It is our biggest overseas venture and the Indian government has given its full support," a POSCO statement said after a meeting of 15 members Board of Directors
The capacity of the plant in phase 1 would be 4 million tonnes as against 3 million tonnes which was originally mentioned in the MoU signed with the Government of Orissa on June 22, 2005. The investment for the first phase is approximately $3.7 billion (Rs 16,000 crore). The site preparation for the steel plant and construction work for the proposed port at Jatadhari near Paradeep would begin in April 2007. The construction of the plant would start in April 2008.The commissioning of phase 1 is June 2010
Out of the 4 million tonnes to be produced in the first phase, 1.5 million tonnes would be slab and the 2.5 million tonnes hot rolled steel. These slab and hot rolled steel would be used for export as well as for domestic use.
Finex process, an innovative and next generation iron making technology, indigenously developed by POSCO for making iron is given priority over the blast furnace process to produce iron. FINEX is fine ore based smelting reduction process developed by POSCO, South Korean RIST and VAI, featuring the production of liquid hot metal on the basis of non-agglomerated iron ore fines and non-coking coal. The FINEX process consists of Material charging system, Reactor MgO system, Quench system, Off-gas system, Water treatment system, Plant dedusting, Utilities, etc.
FINEX process utilizes a wide range of fine iron ores and non coking coals, produces lower cost hot metal, has outstanding environmental compatibility and hot metal quality is suitable for all down steel applications
Posco will also develop a mine to provide 600 million ton of iron ore or 20 million tons a year for 30 years, in Orissa's Keonjhar and Sundargarh areas. The company is setting up a new port for transporting the plant's products as Orissa's lone port of Paradip will not be able to cope with the high volumes to be generated.
Coal ministry allocates additional 10 million tonnes coal for E-auction
It is reported that the ministry of coal has permitted CIL to offer another 10 million tonne of coal for consumers under e-auction during the current financial year taking up the total coal released under the new route to 20 million tonnes. This is 5.8% of the estimated total production of 343 million tonnes by CIL during 2005-06.
Sources said that 10 million tonnes of coal initially approved for e-auction sale fetched the CIL and its subsidiaries an additional Rs 565 crore with additional average price realization of 54.20% over the notified prices.
It is understood that the additional 10 million tonnes coal to be released by CIL for e-auction this year will come from incremental production of 4 million tonnes. The balance 6 million tonnes of coal would come from the used share of coal reserved for the linked consumers.
According to coal ministrys own assessment, e-marketing of coal has resulted in containing black marketing. Following introduction of e-auction, the off take of coal by linked customers in non-core sector has reduced by 6 million tonnes during the current financial year, which suggests that this amount of coal was being earlier sold in black market by linked consumers.
State officials to meet ministry for iron out ore mine allotment policy
The chief secretaries of Bengal, Jharkhand, Orissa, Chhattisgarh, Karnataka, Maharashtra, Goa and Andhra Pradesh are meeting steel ministry officials on December 21 in New Delhi to discuss the issues of mine allotment and inter-state movement of iron ore. They will try to formulate a roadmap so that the states can tap the opportunity in the steel industry.
A large amount of investments in steel sector in some of the states have been announced but very few of the projects have taken off as states are not being able to provide clear mining titles to any company. The Centre and states are in a fix over mine allotment as there are long queues and preference to one company will alienate others.
Steel companies are in a rush to announce projects and sign MoUs with state governments just to secure mining reserves. With a phenomenal rise of iron ore prices in the last one and a half years, steel players across the world have started scrambling for mining leases.
CPI-M for equitable share of natural resources
The critical issues relating to the export of natural resources need to be addressed by an equitable policy through consensus, CPI-M leader Ms Brinda Karat suggested. She said that the policies governing the mineral wealth and other natural resources ought to be taken into account while evolving such a consensus.
Referring to the reports that Jharkhand government had expressed its reluctance to provide iron ore to the West Bengal-based steel units, she said that such instances could be avoided. We are seeing what is happening over the sharing of river water. Let not the same kind of dispute happen in the sharing of other natural resources, she observed.
MahaGenco plans to use washing plants coal rejects
Maharashtra State Power Generation Company MahaGenco proposes to explore the option of power generation from coal rejects. It plans to ask coal washeries to set up such projects or may even enter this segment on its own. The company has indicated that it may also explore a joint venture route.
State energy minister Mr Dilip Valse Patil, last week held a meeting with coal suppliers and washeries to ascertain their views on power generation from coal rejects. After washing, 20% are rejects. I have asked coal suppliers and coal washeries to make a presentation on generation from rejects, he said.
MahaGenco, which has a total installed generation capacity of 9,717 MW, of which 6,425 MW is based on coal projects, uses 30 million tonnes of coal annually. Out of the 30 million tonnes, 16 million tonnes is washable coal. It receives washed coal from washeries in areas operated by Western Coalfields, Mahanadi Coalfields and Singareni Collieries.
SGAT seminar on sustainable development of mining sector
Dr BD Panda, chairman of IMFA group while addressing the valedictory function of 3 day international seminar on Vision Mineral Development-2020, organized by the Society of Geo-scientists and Allied Technologists SGAT stated that Orissa has rich mineral resources and free export of critical minerals should not be allowed without value addition. Australian model cannot be emulated in India, he said calling upon the geo-scientists to evolve a well thought-out model for sustainable development of mining sector.
Chairing a technical session on infrastructure, trade, mining, community interface and IT, Prof BB Dhar stated that transport was a major problem in mining sector which should be addressed on priority basis.
MAN decides to drop steel trading business
MAN, the German engineering group, is to bring its $1.2 billion revenue steel trading business to an end in an attempt to simplify a division known internally as "the conglomerate within a conglomerate". Mr Hakan Samuelsson CEO said that the change in its Ferrostaal division would boost margins, meaning it could reach a targeted return on sales of 6% in 2008 or 2009 at the unit. "Steel trading is no core business of MAN," he said. The extremely low margin operations would gradually cease and be transformed into a services operation for customers who will now have to pay for the steel themselves, removing at least 1bn in revenues but little profit from the division, he added.
The end of steel trading forms part of Mr Samuelsson's plans to simplify Ferrostaal, a sprawling division covering everything from the distribution of submarines to the planning of chemical plants which had a return on sales of 2.3% last year, in an attempt to make it easier for investors to understand.
Mr Samuelsson said Ferrostaal would in the future consist of two parts contracting for large projects and industrial logistics as well as acting as the sales platform for the whole group in an effort to develop synergies.
Report on Chittagong ship breaking deaths
As per a report in local daily, a survey report has disclosed that one person dies each week due to accident in the Chittagong Ship Breaking Industry in Bangladesh and almost 1000 workers have died due to accidents and toxic fumes during last decade
The survey report styled "End of life in ships: the human cost of breaking ships" was prepared jointly by YPSA, a non-government organization in Bangladesh, Green Peace and FIDH. The report in figuring out the number of death has shed light on the poor working and environmental conditions at ship breaking yards leading to the death of the workers.
The report said many workers died or got handicapped on the spot because of accidents like explosions due to ship tanks not freed from gas and accidents due to the lack of safety measures. The report also said that some workers died in the ship breaking industry due to the toxic fume related disease. Besides, there is no record of death due to this kind of disease.
The report recommends implementation of the ship breaking law and imparting workers proper training on the ship breaking.
Nippon Koei & Sojitz to build Sumatra rail project for coal movement
A consortium comprising Japanese companies Nippon Koei Co, Sojitz Corp and Indonesian investors, are seeking to build an underground tunnel that will be used for electric trains in South Sumatra Indonesia at an estimated investment of $400 million
The 70 kilometer-long tunnel will link the town of Musi Rawas in southern Sumatra to a port near Bengkulu on Sumatra Island's west coast and the electric trains will transport between 10 million and 25 million metric tons of coal a year from Musi Rawas.
Nucor CEO blames US government for crisis in manufacturing
American manufacturing has a China problem, says Mr Dan DiMicco CEO of Nucor Corp, but only part of the blame for that can be laid to the Chinese and nearly as much blame rests with US government that won't force trading partners to live up to their agreements, and business executives who won't pressure the government to make trading partners accountable.
The continuing drain of American manufacturing jobs is usually laid to foreign competition, most notably from China and the advantage foreign producers have is also usually attributed to lower labor costs and greater efficiency.
Mr DiMicco does not agree and says that "Labor is not what causes companies to move to China," he says. The cost of shipping goods, particularly heavy and bulky items such as steel, as well as the cost of importing raw materials, more than outweighs whatever advantage there is on labor costs. "China's a high-cost place to make steel," he says. Mr DiMicco contends that China's advantage comes in tax policies, currency manipulation, subsidies, tariffs, import restrictions and other factors that should be addressed by trade agreements, but aren't.
"We're not against globalization," Mr DiMicco says. "Anyone who wants access to our market, which is the grand prize, they need to follow the rules."
He does blame those companies for not pressuring the U.S. government to "preserve, protect and defend" America industry through better trade agreements and more enforcement of existing pacts. "We've negotiated bad agreements and we don't hold people accountable to the rules they agreed to," he says. "What we're after is what our government is supposed to do."
POSCO Taechang develop cold plate leveler
POSCO and a mid sized South Korean company Taechang Machinery Industry Co Ltd have succeeded in developing a plate cold leveler that has the greatest rolling force created to date and has been recognized for its advanced technology throughout the world. The new leveler has been performing well at Plate Mill II in Pohang Works since November. The new leveler has a rolling force of 5,400 tons.
Plate cold levelers level the flatness of plates in cold states in the process of plate production and are an important device that improves the overall quality of steel plates.
POSCO is planning to further its cooperative processes with small and mid sized Companies' and will actively support the localization of equipment and various small and mid-sized companies in Korea.
NE Minnesota pellet production update
Northeastern Minnesotas mining industry continued full out taconite iron pellet production in 2005, although down slightly, while work on four other projects on the horizon proceeded for possible startup soon.
Taconite pellet tonnage was projected at another full out production year, at 39.3 million dry flux free tons, compared to 2004s 39.4 million tons of pellets, down about 100,000 tons, said Mr Bob Wagstrom, mining engineer at the Minnesota Department of Revenues Minerals Tax Office in Eveleth. Next years production is seen at about the same levels, he added.
Projected 2005 production totals for each plant given by Mr Wagstrom include Keewatin Taconite of US Steel - 5.4 million tons, Hibbing Taconite of Cleveland Cliffs - 8 million tons, Minntac of US Steel - 14.2 million tons, Mittal Steel - 2.6 million tons, United Taconite a JV of Cleveland Cliffs & Laiwu Steel - 4.3 million tons and Northshore Mining of Cleveland Cliffs - 4.8 million tons.
Shell develops new lubricant for steel mill bearings
Shell has developed Shell Morlina SD; a specialist product for use in steel mill bearing oil circulating systems, designed to reduce system costs, downtime and maintenance. Shell Morlina SD meets Morgans MORGOIL Advanced Lubricant Specification, which is commonly referred to in the industry as the Super Demulsibility (SD) specification.
In developing Shell Morlina SD, the circulating oil underwent extensive testing and field trials to assess the water separation properties of the oil at normal mill operating temperatures. The field trials also tested Morlina SDs water separation characteristics over extended periods of service.
In addition to rigorous demulsibility standards, the MORGOIL Advanced Lubricant Specification outlines explicit criteria that must be met in areas of rust protection, oxidation resistance, viscosity and minimal foaming characteristics, along with demonstrated in-field performance.
Mr Panot Triroj of Shell Global Industrial Lubricants Metals Sector said Water contamination in oil can affect the life of bearings and pumps in a mill, as well as induce rust, oxidation and contamination build-up, which can lead to high maintenance costs. Shell Morlina SD is formulated to resist emulsification and shed water faster at lower temperatures than conventional circulating oils even in extreme conditions.
QRNational tipped to operate new iron ore line in Western Australia
State owned Queensland Rail, with freight arm QRNational, is tipped to be the operator of a new 370km iron ore railway in Western Australia's mid west region. The new railway will run from somewhere near Meekatharra to a new port at Oakajee, just north of the existing iron ore berth at Geraldton.
The mining companies want a common user railway to avoid the fights that have occurred in the Pilbara, and an independent operator is seen as the best way of ensuring all the companies get access to the track.
It is understood the Mid West Development Commission has been encouraging QR to provide competition for existing train operator Australian Railroad Group, which is half-owned by Wesfarmers.
QR has plenty of experience in bulk commodities, railing 157 million tonnes of coal a year. It also has the money to buy new locomotives and the capacity to build the hundreds of new wagons that would be needed.
Romanias Electroputere privatization deferred
The deadline for the submission of offers for the privatization of electrical equipment producer Electroputere Craiova has been put off to January 5 2001. The decision was made by the Authority for the Recovery of State Assets AVAS at the request of one of the companies interested in participating in the tender.
AVAS announced on November 21 the sale of 78 million shares of Electroputere which represent 62.8% of the social capital of the company. Three local companies and a foreign one acquired the terms and conditions of the privatization. The Craiova-based company manufactures engines, power generators and power transformers and has a social capital of 3.38 million euros.
Buildco to set up a rebar plant in Abu Dhabi
Abu Dhabi National Company for Building Materials (Buildco) is setting up a Dh225 million steel plant in the Industrial City of Abu Dhabi ICAD-2 with an annual production capacity of 300,000MT to 350,000MT. The new facility will produce rebars
Thai Steel Intertech to debut on the MAI
Steel Intertech Plc, a manufacturer and distributor of high quality roll formed metal sheets, will be listed on Thailands Market for Alternative Investment. This is the 34th listing on the MAI, said Mr Vichate Tantiwanich, president of the young market. The company has high growth potential, as it is an important sub-contracting firm in the metal-sheet cladding industry
During the companys IPO on December 8 and 9, it sold its capital-increase shares to the general public. The firm will use the net proceeds of about Bt40 million from its fund-raising to purchase new roll-forming and high-strength machinery, and to expand its factory area, repay its debt and use as working capital.
The company makes and sells metal-sheet cladding under the Rollform brand. Its products are used for roofs, walls, ceilings, awnings and louvers.
