December, 23 2005
Siemens VAI receives wide plate mill order from JSPL
The Siemens Group Industrial Solutions and Services I&S has received an order from Jindal Steel & Power Limited JSPL for the supply of a 1.2 million tonnes 5 meter wide plate mill, which will be installed at a new integrated steel plant site in Angulin in Orissa India. The contract value is Euro 65 million and the plant is scheduled for start-up in September 2008.
The project scope includes the following equipment: 20 MW plate mill finishing stand with a 10,000 tonnes rolling load, an accelerated plate cooling section (MULPIC system), hot leveler, cooling beds, double side trim shear, slitting shear, final cut to length dividing shear, Level 1 automation for the entire line, Level 2 automation and process set-up models in addition to the main drives and motors.
Provision will also be made to allow for the future installation of a roughing mill stand to enable an increase in the plant-rolling capacity. As a special feature, the plate-mill stand will be equipped with the Siemens VAI SmartCrown system for enhanced profile and flatness control.
The I&S division VAI will provide the complete engineering of all of the equipment for the plate-mill line and will supply all major machines, equipment and systems. JSPL will supply the ancillary equipment.
This project brings the total number of new 5.0-m wide plate mill lines currently under execution by Siemens VAI to three two in India and one in China.
Jindal Steel & Power Limited (JSPL) is an integrated Indian iron and steel producer with existing production and manufacturing facilities in Raigarh and Raipur in Chhattisgarh State. Presently, all steel production at JSPL is used for the manufacture of rails, H-beams and columns for the infrastructure and construction sectors.
Vizag port appoints IPA for mechanized coal cargo handling
The Visakhapatnam Port has appointed Indian Ports Association IPA as consultants to prepare a feasibility report for the proposed mechanized handling system at the general cargo berth GCB. The management has decided to mechanize the handling facilities at a cost of about Rs 80 crore.
It is learnt that ships have to wait for two days on an average to unload coking coal cargo at GCB and to avoid this delay the port authorities have decided to go in for mechanizing facilities at the GCB
With the present equipment, the port unloads 12,000-15,000 tonnes of coking coal per day at the GCB and evacuates 10,000-12,000 tonnes from the berth. Once mechanical handling system becomes operational, apart from checking pollution caused by coke dust, the unloading rate would also go up to about 25,000 tonnes per day and the evacuation rate would also increase to about 25,000 tonnes per day.
At present, Vizag port is handling 7 to 8 million tonnes of coking coal per, but is expected to increase it to 10 to 12 million tonnes over the next 3 to 4 years.
Kohinoors MoU in Jharkhand facing road blocks
Mr Vijay Bothra MD of Kohinoor Steel has alleged that Jharkhand government has failed to provide it with electricity, approach road and even land contrary to the commitments made in the MoU signed in July.
According to the MoU, the sponge iron unit is to be supplied power by the Jharkhand State Electricity Board till it put up its own captive power plant but during construction small power requirement has not been met by the board forcing Kohinoor to use expensive DG sets. Moreover the approach road has not been made. The group also complained that while it required 160 acres, it has been forced to directly purchase 40 acres from the villagers because of its anxiety to start the project early and capitalize on the steel boom.
Kohinoor Steel is a JV between Nepal-based TM Dugar group and Kolkata based Bothra group. Despite all the handicaps, Mr Bothra claimed, the unit will start production in February subject to the availability of power from the electricity board
The outburst raises doubts about the Jharkhand governments ability to deliver since Kohinoor Steel is a relatively minor player and requires much less land and power than others.
NTPC may form a JV with CIL for coal mining
National Thermal Power Corporation NTPC is exploring the possibility of floating a coal mining company in joint venture with Coal India as per reports in media. The JV is being mulled to undertake all coal mining activities on behalf of NTPC. Coal mined by the new entity will be primarily used to meet NTPC`s requirement for its power plants.
NTPC is likely to hold anything between 80%to 90% and CIL is being roped in to provide technical expertise for mining activities that the new entity will undertake.
Chhattisgarh CM to take up iron ore shortage with PM
Fearing that the closure of 70 sponge iron units will have an adverse impact on investment flow in Chhattisgarh Chief Minister Mr Raman Singh wants to raise the issue with Prime Minister Manmohan Singh next month. "Mr Raman Singh strongly favors restarting the closed sponge iron units that account for 30% of the country's sponge iron output," a top official said.
"He will take up the issue with the prime minister next month to ensure adequate supply of iron ore to the closed units through the government-owned NMDC's Bastar based Bailadila mines and coal linkage by South Eastern Coalfield Limited SECL which has its headquarters in Bilaspur, Chhattisgarh" said an official
It is reported that almost 70 units closed down December 20 due to a shortage of iron ore and coal. Mr Suresh Agarwal, president of the Chhattisgarh Sponge Iron Manufacturers Association announced that the closed units would restart production only after the central government guaranteed regular and adequate iron ore supply and coal linkage. He said the closed sponge iron units needed a monthly supply of 500,000 tonnes of iron ore while they were getting just 70,000 tonnes. Not a single unit got coal linkage in the past 18 months and they were purchasing coal at a higher cost from the open market.
Indian Railways relax norms for wagon overloading
Giving in to a long standing demand of the industry, the Indian Railways have relaxed various norms relating to overloading and imposition of penalties for delays in loading and unloading wagons.
While the free time available for loading wagons for steel plants like Steel Authority of India Ltd has been increased from 8 hours to 22 hours, it has been increased by 2 hours for other customers, ministry officials said. They added that the ministry had set a time-table where the free time would be reduced gradually over the next two years. We want to give our customers time to improve their efficiency, an official said.
They said customers would not be penalized if the weight of the whole rake, comprising 58 wagons, did not cross the permissible limit. At present, overloading of each wagon is fined. If only one or two wagons in a rake are beyond the permissible weight, it is evident that the overloading is not intentional, a ministry official said.
These relaxations come just a few months after the Indian Railways drastically reduced the free-time available for loading and unloading of wagons. According to the rules notified in March, the free-time was reduced from 7-8 hours per wagon to 5-6 hours per wagon for mechanized handling.
Realizing that a majority of its customers were not able to meet the new norms, the ministry decided to relax them and notify the actual time being taken by its customers to load and unload under the tight regime as the free-time
Visa Steel to tie up finances for Orissa project by December end
VISA Steel Ltd, which is executing an Rs 1,400 crore integrated steel and stainless steel project in Orissa, hopes to tie up the debt for the project by the month-end. "We have a debt component of Rs 750 crore, most of which has been tied up," said Mr Vishambar Saran Chairman of Visa Steel.
The boards of directors of a couple of more banks were expected to meet shortly to approve funding for the project. The company would then decide how the balance funds would be raised. Apart from internal accruals, Visa Steel's board would decide on how much the promoters would bring in. Other options that would be explored include roping in a strategic partner or an initial public offer, he told news daily
He said the company's blast furnace and coke oven projects would start giving additional revenues by April 2006 and that would take care of funds from internal generation.
The group's Switzerland headquartered holding company has 68% of Visa Steel's equity and the balance is held by Visa International Ltd Kolkata
Steel & coal companies to get green signal for rail freight corridor
In a major privatization drive, Indian Railways is planning to offer construction of dedicated freight corridor for specific commodities to the private sector under a new public private partnership PPP initiative. Under the plan, which is being discussed by the Railway Board, the ministry of railways would float a special purpose vehicle along with states where the commodity specific corridors would come up and private sector freight service using companies.
This SPV would implement the dedicated freight corridor on specific routes agreed upon by the ministry and the user industries. The plan for PPP initiative in the construction and operation of dedicated freight corridor had also taken leaf from the recently announced National Steel Policy. The policy had said that companies should fund corridors, which cater to their specific needs.
Sources said that initially the new PPP model would be implemented for the coal and steel sector, which provide maximum freight returns for railways.
Though a new PPP model is being considered by the Railways, it is already operating three corridors in Gujarat through SPVs on an experimental basis. These are the 52 kilometers stretch from Mundra Port to Bhuj developed by Adani Group, Gandhidham to Palampur, and another stretch leading to Pipavav Port.
Uttam Galva Steels exercises $14mn green shoe option
Uttam Galva Steels Limited UGSL, the country's second largest galvanized steel manufacturer today announced that the company has exercised its green shoe option and raised US$ 14 million, 2.0% Foreign Currency Convertible Bonds FCCB.
The Green Shoe option of $14million is over and above the initial FCCB offering of $30mn that got listed on the Singapore Stock Exchange, taking the total FCCB size to $44 million. The Bonds have a maturity of 5 years, a 2% coupon payable semi annually and a yield to maturity set at 7.25% at the end of 5 years if not converted into shares during this period.
Mr Ankit Miglani Director of UGSL said, "The substantial premium on the Green Shoe option reflects the global investors' confidence in Uttam Galva Steels. It is primarily the appreciation for our robust business model and our ever-growing customer base and the exports to 116 countries."
UGSL is one of the largest producers of CR & GP products in Western India
Steel & Allied Products undertake restructuring & expansion at Taloja
It is reported that Steel & Allied Products Ltd has embarked on a major expansion spree and has undertaken a restructuring exercise at its Unit I and Unit II situated in Taloja, Maharashtra.
As a part of the restructuring exercise, the company has undertaken modernization of the existing processing facilities converting it into state of art facilities. The installed capacity of the facilities will increase from 12000 tonnes per month to 18000 tonnes per month and the processing capabilities will widen to a greater extent. The company is spending around Rs 6 to 10 million for the same.
Arcelor Brasil mulls doubling capacity within 6 years
Arcelor Brasil, could double capacity to 22 million tonnes from existing 11 million tonnes within six years, Mr JosArmando Campos president told journalists. The subsidiary is eyeing organic growth for the future, "although we do not rule out new acquisitions," Mr Campos said
Arcelor Brasil would not say how much it would invest in the expansion. But Deutsche Bank said in a research report this year that Arcelor plans to invest US$4bn in South America within the next five years.
Arcelor Brasil was born out of this year's consolidation of three Brazilian steelmakers Belgo-Mineira, CST and Vega do Sul, which have produced 10.6 million tonnes of steel last year.
"We will enter 2006 with another 2.5 million tonnes output from investments made in steelmaker CST, specifically in blast furnace expansion," Mr Campos said. CST is in the midst of a US$1.3bn project to boost capacity from 5 million tonnes to 7.5 million tonnes. The project, which includes a new blast furnace and continuous caster, should be complete by mid 2006.
Nippon Steel clinches iron ore buying contracts
Worlds 3rd and Japan's No 1 steel maker Nippon Steel announced that it has sealed a series of long term iron ore purchasing deals with key suppliers.
It is reported that Nippon Steel has agreed with BHP Billiton to revise a long term agreement and the terms of the new deal call for Nippon Steel to buy 4 million tonnes of iron ore a year for seven years from fiscal 2006, starting April, down from the current volume of about 10 million tonnes that Nippon Steel purchases from BHP
Nippon Steel is also reported to have signed a 10 year agreement starting April 2006 with Hamersley Iron, an Australian unit of Anglo Australian mining giant Rio Tinto to buy an additional 4 million tonnes per year. Nippon Steel already has an ongoing contract to buy 7 million tonnes a year from the Rio Tinto group of firms. This means that from 2006-07, Nippon Steel will be buying a total of 11 million tonnes from the Rio Tinto group.
In a separate deal, Nippon Steel has agreed to buy an additional 3 million tonnes from CVRD starting in fiscal 2006, bringing the total volume of its purchase from the Brazilian mining giant to 10 million tonnes. A breakdown shows that of the fresh volume to be purchased from CVRD, 1 million tonnes is a 5 year deal, while 2 million tonnes is a 10 year deal, both starting in fiscal 2006.
In a fourth deal, Nippon Steel and Robe River Iron Associates have also agreed to renew their long-term contract. Nippon Steel will buy a total of 11 million tonnes a year for about 10 years from fiscal 2006. Robe River is an Australian iron ore joint venture set up by Nippon Steel, Mitsui & Co Ltd, Sumitomo Metal Industries Ltd and Rio Tinto.
SMS to supply a 1.7 million tonnes pickling line to Bao Steel
Baosteel International Co. Ltd., Shanghai, has placed a contract with SMS Demag AG as consortium leader in a project to supply of a new 1.7 million tonnes capacity tandem pickling line. This will be the third line of its kind SMS Demag has supplied to Baosteel.
The contract calls for SMS to design and supply a latest-generation turbulence pickling line with stretch leveler, automatic setting control ASC trimming shear, and coupling section. It also features a five-stand tandem line with modular CVCplus (continuous variable crown) six-high technology and AIO (all in one) design.
The tandem line will be designed with an eye toward the future application of Edge Drop Control (EDC) system. The installation also will have a carrousel type reel and a state-of-the-art strip inspection line.
The finished cold strip will have a minimum thickness of 0.25 mm and a maximum width of 1,630 mm. Material will be commercially available in June 2008.
Arcelor to buy a 50% stake in two long steel producers in Costa Rica
Arcelor's Brazilian unit Arcelor Brasil has signed an agreement to buy a 50% stake of the capital of the Costa Rican companies Laminadora Costarricense SA and Trefileria Colima from Grupo Pujol Marti. The transaction, carried out through Arcelor Brazils subsidiary Cia. Siderurgica Belgo Mineira SA is subject to the fulfillment of a number of conditions by the parties and is expected to be finalized by 31 January 2006.
The Laminadora Costarricense SA rolling mill produces merchant bars and rebars and has a yearly capacity of 400.000 tons. The Trefileria Colima wiredrawing unit has a capacity of 60.000 tons per year.
Arcelor Brasil, Arcelor's growth platform in Latin America, sees this acquisition, its first investment in this region, as a strategic positioning on the Central American market.
OMZ ships 520MT crane for Severstal
Uralmash-Promuslugi of OMZ has shipped Russias largest pouring crane to steel producer Severstal. The crane has a capacity of 520 tonnes. Design was by OMZ-Crane Company, and equipment was produced by Uralmash. The $2.5 million supply contract was concluded in May 2004 after a Severstal tender. The crane is designed for operation in a Severstal steel shop for handling molten metal ladles
This is the second heavy pouring crane produced by OMZ in recent years. A crane of similar design, with 450 tonnes carrying capacity, already operates at MMK.
A number of mechanisms and elements have been improved during development and production of the Severstal crane. Among the modernized features are elements of the reduction gear on the main lift, reduction gears on the crane transportation system, the main crane winch, and the cross-arm. The oil feeding system for the reduction gears has been also improved. Thyristor switches produced by ABB have been used in order to ensure smooth mechanical functions. A weighing system and other safety devices registering load parameters have also been installed. A number of new engineering and design solutions provide for improved operating characteristics of the crane: vibration on the main lift has been decreased, working life of reduction gears has been extended, and cross-arm blocks and cables have been protected from fire. Block replacement has been made easier. These solutions will allow longer work periods between servicing, lowering costs and improving the quality of technological operations.
OMZ Crane and OAO Ural Heavy Machine Building Plant Uralmash are the parts of Uralmash-Promuslugi division. OMZ-Crane specializes in engineering, sales, integration and maintenance of heavy and special handling machinery. OAO Ural Heavy Machine Building Plant Uralmash specializes in the production and assembly of a variety of equipment on basis of its clients engineering. Among the equipment produced is mining, metallurgical, hydro turbine, chemical-recovery equipment, handling machinery, cement furnaces, and ancillary equipment for nuclear power plants.
OMZ Uralmash-Izhora Group is one of the largest Russian heavy industry enterprises. It specializes in engineering, production, sales and maintenance of the equipment and machines for nuclear power industry, and also in production of special steels and rendering of industrial services. The company includes
Asian thermal coal prices may fall by more than 20% in 2006
Asian contract rates for thermal may fall more than 20% percent next year as Indonesia and rival mining nations raised output after prices surged, Australia & New Zealand Banking Group Ltd said.
Japanese utilities such as Tokyo Electric Power Co. may sign benchmark 2006 purchase contracts at $42 a metric ton or less, from a record of $53 this year, Mr Andrew Harrington, a resources analyst at the Melbourne based bank, said on December 20.
Even ANZ Bank's $42 estimate may be difficult to sustain, Harrington said. Contract prices may fall in the year starting April 1, 2007, to $38 and then to $35 the following year, Mr Harrington said. Our official number is $42, but I think that's probably got some downside revision on its way,'' he said.
ANZ Bank Australia cut its forecast for 2006 contract prices from $49 last week. Goldman Sachs JBWere also cut its 2006 estimate to $42 from $44. In August, it had a $48 forecast for 2006 last week.
While Deutsche Bank AG forecasts contract price will fall to $40 a ton next year, JPMorgan last week cut its forecast to $45.90 from $54.
LME to begin short-listing of potential steel price compilers
The London Metal Exchange is beginning the short-listing of price compilers who could work with the exchange to develop and publish LME steel reference prices for at least six benchmark steel products, the LME said. "The decision on the chosen compiler(s) will be announced in the second quarter of 2006 and is part of the process through which the LME will develop price risk management tools for the steel industry," the LME said.
Reference prices could be established for hot rolled coil in NAFTA, Europe and the Far East; and billets in Turkey, NAFTA and the Far East, the LME said, adding that if, after a year, these prices "have gained credibility within the steel industry and the LME membership," it will take a decision on whether to launch steel futures contracts.
"I am impressed by the quality and quantity of the response that we have received during this tender process, and I am confident that we will be able to establish, and publish, a range of credible reference prices for the steel industry," said LME CEO Mr Simon Heale. "We are on track to complete this part of the process which demonstrates the Exchange's commitment to develop risk management tools that will ultimately bring clear benefits to all parts of the steel supply chain."
Nippon Steel closes 2006-2007 manganese contracts
Worlds 3rd and Japan's No 1 steel maker Nippon Steel closed a yearly manganese concentrate supply contract with BHP Billiton at a level 24.5% lower than the current prices, a spokesman for Nippon Steel said. The supply contract is for the period from April 2006 to March 2007. The spokesman, however, declined to elaborate on the actual price level. He added that the volume purchased would not change significantly from the current year.
It is reported that BHP Billiton confirmed that manganese ore prices for the next contract terms have decreased, to $2.50-3.00 per 1% manganese content in one metric ton of ore, from the previous levels above $3.00. But she also declined to comment on the specific contract terms with Nippon Steel.
Softer market conditions have also forced BHP Billiton to decrease manganese ore output at its mines in South Africa and Australia. During the quarter ended September 2005, the company's total output was 1.38 million tonnes down from 1.42 million tonnes in the previous quarter.
Meanwhile, Australian manganese miner Consolidated Minerals welcomed the early settlement of the new benchmark manganese ore price for 2006-2007 as it will stabilize the market. The new price is off the "extraordinary" highs seen in 2005-2006, but is 33% above the 10 year average of $2.25/dmtu and confirms the underlying strength of demand for key commodities in world markets, ConsMin said. Consmin MD Mr Michael Kiernan said "The high prices achieved in early 2005-2006 were clearly unsustainable due to the conditions faced by the manganese alloy industry," Mr Kiernan said. "It is our view that future prices can be expected to be maintained at this new level, or higher, with a price of $3.25/dmtu being a realistic expectation for the balance of this decade." He added: "The outcome of these price negotiations for 2006-2007 has confirmed a strong outlook for our core manganese business and will reinforce the future strong profitability of ConsMinerals."
Bolivian protesters shut Brazilian border over El Mutun auction
Bolivian protesters shut down the country's eastern border today after the government suspended an iron mine project slated to create 2,000 jobs to give President elect Mr Evo Morales a chance to evaluate the plan. The Brazilian border is paralyzed'' and all public and private offices are closed in the border town of Puerto Suarez, the Bolivian Presidency's Web site said.
The protests, the first since Morales's election last weekend, follow the government's decision to hold off the auction of a 50% stake in its El Mutun iron ore deposit, Bolivia's biggest.
We never requested this auction to be set back as it's important for the country,'' Mr Morales said at a news conference broadcast on La Paz television station Bolivision. It's important that we seek investment.'' Mr Morales, who said December 19 that he will push for greater state control over Bolivia's mines and gas fields, denied accusations by the Pro-Santa Cruz Committee, the group leading the protest, that he pressured President Eduardo Rodriguez to call off the auction.
The government shelved bidding on El Mutun, scheduled to begin yesterday, for 60 days, saying it wanted to give Morales time to study the $500 million plan, the Presidency Web site said. Morales is to be sworn in on January 22.
Brazilian steel export shipments estimated to go up by 5% in 2005
The Brazilian steel industry is estimated to increase export revenues in 2005 by 26.4% over 2004, according to estimates by the Brazilian Ironworks Institute IBS. The sector hopes to have revenues of US$ 6.7 billion in 2005 with the volume of shipment growing up by 5% to reach 12.6 million tonnes.
The greater growth in revenues than in export volume, according to the IBS, is due to the export of greater volumes of finished products, and lower exports of semi-finished products.
IBS estimates the export shipments to reach 13 million tonnes in 2006 but the revenues may drop due to reduction in global steel prices
"The behavior of foreign steel prices is a great worry to Brazilian ironworks due to the downwards tendency, caused largely by the behavior of China, which has gone from being a steel importer to a steel exporter," stated Mr Luiz AndrRico president of IBS.
Brazilian steel production should drop 4.1% this year when compared to 2004, according to the IBS, and should reach 31.6 million tonnes. Figures supplied by the institution show that there has been a reduction in consumption on the domestic market, mainly in civil construction. The president of the IBS, however, is optimistic with regard to 2006. He believes that production should grow 4.1%.
Mr LN Mittal named richest man in South Africa
Mr LN Mittal is reported to have become the richest man in South Africa, ousting the traditional families of Oppenheimer and Rupert subsequent to the takeover of ISCOR, as per a report in Sunday Times in its Rich List as part of a special Christmas Edition local daily,
The value of Mr Mittal's interest in Mittal Steel SA is Rands 10.22 billion, putting him ahead of Nicky Oppenheimer of Anglo American plc, whose 4% stake in the company is worth Rands 9.28 billion. The Rembrandt Trust, belonging to the Rupert family, has investments worth Rands 6.1 billion giving it third place.
Although Mittal's interest in South Africa is worth over Rands 10 billion, this is reportedly only about 5% of his total wealth of about $25 billion ranking him 3rd richest person in the world, according to the Forbes list.
EC authorizes restructuring measures to support Spanish coal industry
The European Commission has decided not to raise any objections to the restructuring plan for the Spanish coal industry for the period 2003 to 2005. The Commission finds that, with its proposed restructuring measures, Spain continues to reduce significantly its state subsidies for the coal industry and, at the same time, takes account of the social and regional importance of this industry. Spain will also continue to reduce its mining capacity. The plan is therefore compatible with the proper functioning of the common market. Spain has granted approximately 1 billion annually to its coal industry in that period.
On 30 March 2004, the Commission started an investigation procedure as it had doubts whether the notified restructuring measures could be legally justified. The Commission considered that the plan was not detailed enough. After having examined the additional information provided by the Spanish government, the Commission has come to the conclusion that the proposed aid measures respect the provisions of the Council Regulation on State aid to the coal industry and are therefore compatible with the proper functioning of the common market.
Mittal Steel announces merger of Mittal Steel US and Ispat Inland
Mittal Steel NV announced that its wholly owned US operating subsidiaries, Mittal Steel USA ISG Inc and Ispat Inland Inc will merge. Under the proposed transaction, Inland will be merged with and into ISG, with ISG being the surviving corporation of the merger. The merger is subject to customary regulatory and third-party approvals.
Following the consummation of the merger, ISG will be renamed Mittal Steel USA Inc. The merger is an important step in Mittal Steel's ongoing US integration plan, following Mittal Steel's acquisition of ISG on April 15, 2005, and is expected to close near the end of 2005 or early in 2006.
Mittal Steel USA is North America's largest steelmaker and has operations in 12 states of the US.
US requests dialogue with China on steel
US has suggested to China that the two countries launch a bilateral dialogue on the steel sector to head off potential trade disputes, US under Secretary of Commerce for International Trade Mr Franklin Lavin said.
He has put forward the idea of creating a mechanism for discussing steel, similar to those in place for energy and telecommunications, in meetings this week with Chinese officials. "We've had a number of steel issues that have come up, formal trade disputes, and wouldn't we be better if we looked at these issues in a broader economic context and not simply wait till we got to a trade dispute?" Mr Lavin said. "So let's look at issues such as tax and subsidy and capacity and try to have some kind of discussion on these issues."
Mr Lavin said such a dialogue could take place through the Joint Commission on Commerce and Trade JCCT, a bilateral consultative mechanism. He did not say how the officials had responded.
Murchison teams up with Koreans & Japanese for new port study
Iron ore miner Murchison Metals Ltd will team up with Toll Holdings and two Asian industrial groups to forge plans for a $1 billion rail and port development in Western Australia. The miner says it will aim to have a rail line running from its Jack Hills mine in the state's mid-west to a new deep water port north of Geraldton by about 2010.
Murchison said it had exchanged preliminary documentation with Toll Holdings, POSCO Engineering and Construction Co and a major Japanese industrial group. The parties would all contribute to a feasibility study on the project, with a development proposal to be submitted to the state government as soon as possible.
A fortnight ago Murchison banded together with the two other mid-tier iron ore miners in the region, Midwest Corporation and Gindalbie Metals Ltd, to form the Geraldton Iron Ore Alliance, promising a coordinated approach to common-user infrastructure development. That coordination seems to have broken down quickly with Murchison on Thursday saying it had no immediate plans to involve the other two in the rail and port development project.
Murchison executive chairman Mr Paul Kopejtka said that the port and rail infrastructure could have to shift as much as 60 million tonnes a year when the miners were all at full production. He said it was likely a separate entity would be set up to operate the infrastructure.
AWS Conference to explore varied uses of gas-shielded arc welding
The American Welding Society will hold a Gas Shielded Arc Welding Conference during March 7-8 2006 in Las Vegas, Nevada to address Gas shielded arc welding has become increasingly efficient and cost effective, due to recent advances in welding technologies and techniques.
This conference encompasses a family of related welding processes, all of which employ an arc and shielding gas. These processes, including electrogas welding, flux cored arc welding, gas metal arc welding, gas tungsten arc welding, laser beam/arc hybrid welding, and plasma arc welding, have a wide and growing range of applications, from storage tanks and pollution-control systems to armaments and space-based cosmic-ray detectors.
The conference will feature 15 expert speakers, who will discuss the current status and future potential of the various gas-shielded arc welding processes. They include Mr Tom Siewert, acting chief of the material reliability division at the National Institute of Standards and Technology in Boulder Colorado, Mr Eric Stiles, laser division manager at the Fraunhofer USA Center for Coatings and Laser Applications in Plymouth Michigan, Mr William Hamilton, quality assurance manager for AlcoTec Wire Corporation in Traverse City Michigan, Mr Jon S. Lee, senior welding engineer and chief metallurgist for CB&I (Chicago Bridge & Iron Company N.V.) Corporate Welding & QA Technology located at The Woodlands Texas.
The American Welding Society AWS is the largest organization in the world dedicated to advancing the science, technology, and application of welding and allied processes, including joining, brazing, soldering, cutting, and thermal spraying. Headquartered in Miami, Florida, USA, AWS serves almost 50,000 members in the United States and around the world.
SPF to sell balance 1.74% shares of Kryvorizhstal in February 2006
The question on sale of the rest 1.74% of Kryvorizhstal shares will be considered in February, 2006, the Chairman of the Ukrainian State Property Fund Ms Valentyna Semenyuk told.
According to her, the decision to wait till the next year was made after the main auction.
Eldorado provides iron ore resource on Vila Nova project in Brazil
Mr Paul N Wright, President and CEO of Eldorado Gold Corporation announced Tuesday that an Inferred Mineral Resource of 8.7 million tonnes has been estimated with an iron content of 61.5% at the Company's Vila Nova Iron Ore Project in Amapa State, Brazil.
The resource contains massive and laminated hematite with minor intercalations of schist in the central and southern part of the ore body and softer more granular hematite in the north, particularly north of the Vila Nova River where it becomes interspersed with iron rich schist
"Our focus continues to be on our gold projects but we are excited about the prospects of the Iron Ore Project which is only a kilometer from our Vila Nova Gold Project," commented Mr Paul N Wright. "In the first half of 2006 we will be conducting engineering studies with the objective to determine the viability of the Iron Ore Project."
China plans second natural gas pipeline
China, foreseeing major potential in natural gas to reduce heavy reliance on coal and oil, plans to build a second pipeline linking gas deposits in the west to the energy-guzzling Guangdong Province in the south. The new pipeline, still in the preliminary study stage, is expected to connect the gas-rich Xinjiang Uygur Autonomous Region in the west with Guangzhou, capital city of Guangdong Province
PetroChina, following the operational start up of its first West-East Gas Pipeline at the end of last year, will be the builder of the new pipe, an official said. The first line has a designed annual capacity to pump 12 billion cubic meters of natural gas from the Tarim Basin of Xinjiang Uygur Autonomous Region to the commercial hub Shanghai through a 4,000-kilometre-long pipeline.
PetroChina sources said construction of the new pipeline to Guangzhou will start in 2020 and will have a capacity of 26 bcm a year, more than double that of the current line to Shanghai.
Schnitzer Steel acquires a new Metso shredder for Portland yard
Schnitzer Steel Industries Inc has announced the purchase of a state of the art Metso Texas Shredder 122x108 for its Portland Oregon metals recycling operation.
The new shredder is equipped with a 7,000 horsepower motor and will nearly double the operation's metal shredding capacity, currently 250,000 tons per year, to approximately 480,000 tons per year while only increasing total energy consumption by 10 percent. It will replace equipment that has been in place since the early 1970s.
As part of the upgrade, Schnitzer Steel will also install a new electric substation and 115 kV transmission line, and a downstream ferrous metals recovery system with a designed output capacity of 40,000 tons per month. Schnitzer Steel's investment in these upgrades will total more than $14 million.
Schnitzer Steel Industries Inc is one of the US's largest recyclers of metals with more than 50 locations across the US and in Canada, and a manufacturer of finished steel products.
Arcelor Brasil listed on the S Paulo Stock Exchange
Arcelor Brasil made its debut on the S Paulo Stock Exchange and will be traded on the Bovespa starting December 23, 2005. The event was marked by a ceremony held in the presence of Arcelor's CFO Mr Michel Wurth, during which the certificate of compliance with BOVESPA's Level 1 Corporate Governance criteria was handed over to the company's management.
Arcelor Brasil has been created through the combination of Arcelor's Brazilian assets Belgo, CST and Vega do Sul. Arcelor Brasil has the highest standards of corporate governance, with one unique class of shares (ordinary shares) and a withdrawal right (tag along) of 100%.
"Corporate governance is a priority for Arcelor Brasil as it is a priority for Arcelor worldwide. We are proud that this young company is, from the beginning, a champion in this field. No doubt Arcelor Brasil will eventually become a blue chip of this Exchange, thus gaining improved access to the resources it might need in the future to finance its growth", said Mr Michel Wurth, Arcelor's CFO.
Mr JosArmando Campos, CEO of Arcelor Brasil, said "The companies that now compose Arcelor Brasil have always striven to be transparent and to have an excellent relation with the market. Arcelor Brazils adhesion to the Level 1 of corporate governance of the S Paulo Stock Exchange materializes this aspiration".
Slovakia and Romania soon to sign off on Kryvy Rih privatization
Ukraine will soon sign protocols with Slovakia and Romania on the arrangements for selling the incomplete Kryvy Rih Oxidized Ore Mining and Beneficiation Plant. The protocols will state that Ukraine sells its interest in the plant at a tender, and that the winner would then come to an agreement with the co-owners Slovakia and Romania, Ukrainian Industrial Policy Minister Mr Volodymyr Shandra told reporters
Romania has invested about $800 million in the Krivoi Rog project since 1987. The project remained uncompleted after former German Democratic Republic, Czech Republic, Bulgaria and the Ukrainian side stopped financing the project
Talley Metals raises prices on premium melted alloys
Talley Metals, a subsidiary of Carpenter Technology Corporation has announced that it will increase base prices approximately 10% on all premium melted alloys in bar form. The increase is effective January 2, 2006 on all new orders and shipments. Raw material and energy surcharges will remain in effect.
Talley Metals sells stainless steel long products, as well as standard precipitation-hardening grades, to US metals distributors. Carpenter Technology is a leading manufacturer and distributor of specialty alloys and various engineered products.
Ukraines Zaporizhiya Ferroalloys reduces output 6.6%
Ukraine's Zaporizhiya Ferroalloy Works ZZF reduced output by 6.6% YOY to 467,700 tonnes of ferroalloys during January to November. Silico manganese production rose by 1.5% to 322,600 tonnes of, ferro manganese production remained unchanged at 78,400 tonnes and the production of ferro silicon fell by 36.4% to 65,400 tonnes
ZZF produced 29,600 tonnes of silico manganese, 5,100 tonnes of ferro manganese and 3,400 tonnes of ferrosilicon in November
ZZF, one of Ukraine's three major ferroalloy plants, produces all of the country's medium and high carbon ferro manganese and all of its 90% metallic manganese.
Rautaruukki receives nod from competition authorities for PPTH
Rautaruukki Corporation has received approval from competition authorities to purchase PPTH Steelmanagement Oy from funds managed by private equity investor CapMan and from the company's management. The approvals from competition authorities have now been received and the transaction is expected to be finalized in about 2-3 weeks time.
PPTH is the leading Nordic constructor with steel. The acquisition will significantly increase Ruukki's know-how in construction design and project management, creating a knowledge-based platform for Ruukki's growth in construction solution business also in the CEE countries.
Stelco's restructuring plan is fair as per court monitor
Stelco Inc's restructuring plan is fair even though it essentially wipes out the value of the steel maker's current shares, the court-appointed monitor said in a report Thursday. "The enterprise value and liabilities of Stelco are such that there is no value reasonably attributable at this time to the existing shareholders of Stelco," wrote Mr Alex Morrison of Ernst & Young.
Mr Morrison was appointed by Justice James Farley of the Ontario Superior Court to monitor Stelco's restructuring under bankruptcy protection laws.
He added that shareholders rank "at the bottom" of the legal priority ranking of groups to be paid in a restructuring, and are ordinarily only entitled to payment after creditors have been paid in full. Morrison said Stelco's plan was the result of "intense" negotiations between the company, it creditors, the province of Ontario and Stelco's new financiers Tricap Management Ltd., Sunrise Partners LP and Appaloosa Management LP. Those companies are injecting new money into the ailing steel producer, and in turn will wind up owning more than 68 per cent of the company once it issues new stock.
Mr Morrison said Stelco's plan will enable it to upgrade its operations and enhance its competitiveness, and a deal on the plan could not have been reached "had it been necessary to provide for material consideration to flow to the existing shareholders." Without the deal between Stelco's creditors and financiers "it is unlikely that Stelco would be able to emerge from this proceeding as a viable entity," Mr Morrison said.
Columbus Steel Castings names Mr Steven Lakes as new CEO
Columbus Steel Castings Co. announced appointment of Mr Steven Lakes as a new CEO with effect from January 1st 2006 to oversee its growth. Mr Lake has more than 20 years of experience managing foundries, Columbus Steel said.
He takes the CEO role from Mr Don Malenick, who will remain chairman of the company's board of directors. Mr Malenick led the investor group that formed Columbus Steel early in 2003.
The group created Columbus Steel out of the assets of Buckeye Steel Castings, which filed for Chapter 11 bankruptcy protection in December 2002. Columbus Steel operates out of Buckeye Steel's old foundry in south Columbus, which is more than 100 years old.
GVM Metals estimates 56 million tonnes coal at Holfontein
GVM Metals Ltd, a mineral processing and coal mining company, Thursday said the Holfontein Coal Project contains an indicated gross in situ coal resource of 56 million tons The Scoping Study was based on mining of 140,000 tons per month yielding 870,000 tons of steaming coal and 420,000 tons of coking coal per annum, it said.
Mr Simon Farrell MD said that "The Board is very encouraged by the results of the study and intends progressing the Bankable Feasibility Study as soon as the new mining titles are issued. The Board has been advised by our partners Motjoli Pty Ltd that they expect to receive the new titles in either January or February of 2006."
GVM appointed BRSW Mining Consultants to carry out a Scoping Study of the Holfontein Coal Project in the Evander District of Mpumalanga, South Africa. The scope of work included selecting the seams to be mined using the most appropriate mining methods and designing a fit for purpose infrastructure, it said.
Daye Special Steel to clear $75 million losses
The Daye Special Steel Co Ltd announced that it would make up its losses of more than RMB 600 million ($75 million) with accumulated profit. According to the announcement, Daye Special Steel's losses as of October 31 were RMB 663.58 million ($82.95 million). It planned to use accumulated profit of the same amount to make up the losses.
Mr Zhou Xizeng, a senior analyst with the CITIC Securities Co Ltd said that the action was following CITIC Group's acquisition of Daye Special Steel's equity ownership and would facilitate Daye Special Steel's administration and business in the future. CITIC Pacific Ltd acquired Daye Special Steel in Hubei in December 2004 and through a series of connective transactions, CITIC Pacific is the 58.13% shareholder of Daye Special Steel.
Mr Faxander leaves Outokumpu to join SSAB as CEO
Mr Olof Faxander, Executive VP specialty stainless and member of the group executive committee will leave Outokumpu on 28 February 2006 to take up the position of President and CEO of SSAB of Sweden.
TopRyder adds Allegheny CEO to its board
Ryder System has elected to its board of directors the top executive of Pittsburgh-based global specialty materials producer Allegheny Technologies chairman, president and CEO Mr L Patrick Hassey. He will serve as a director of Ryder until the company's 2006 annual meeting of shareholders.
