December, 24 2005
NINL orders melt shop and billet caster to SMS Demag & Concast AG
Neelanchal Ispat Nigam Ltd Duburi Orissa India have awarded SMS Demag AG, Germany, a contract for the supply of a BOF melt shop with 110 ton LD converter. Concast AG, Switzerland, another company of the SMS group, have been awarded a contract for the supply of a six-strand billet caster and ladle treatment station.
SMS Demag's supply includes a converter vessel, trunnion ring, lamella suspension system plus a converter tilt drive unit. The lamella suspension system is designed for the constraint-free arrangement of the converter vessel in the trunnion ring. The converter tilt drive unit will be manufactured in SMS Demag's own workshop in Hilchenbach. SMS Demag will also supply the complete dedusting system plus electrical equipment and automation system including Level 2 for the meltshop. SMS Demag will be responsible for the project management of the overall facility.
The billet caster will be rated for an annual production of 917,000 tons. The billet dimensions are 100 x 150mm. The scope of supply includes a ladle turret with lifting and lowering mechanism, tundish car with tundish lifting and lowering mechanism, a stopper control system, Concast Convex moulds, Concast M-EMS (Mould Electrical Magnetic Steering System) and billet marking facilities. Commissioning is scheduled for the spring of 2008.
All buildings, concrete and steel structures as well as the cranes will be supplied by NINL.
NINL is a member of India's Minerals & Metals Trading Corporation MMTC and already has an iron making plant, coke oven plant as well as its own 60-MW power station. The new facility will enable NINL to start the production of long products.
SMS Demag AG and SMS Concast AG form part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics
CESTAT disposes off writ petition on billet AD
The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal CESTAT, New Delhi has disposed off the writ petition filed by Kalyani Steel Ltd in the case of anti dumping duties on billets on 25th November 2005
Indian government had imposed anti dumping duty of $133 from China and $90 from Russia, except OEMK where the AD was $14.9, on import of certain grades/types of alloy and non alloy billets, bars and rounds of sizes 70mm to 250mm diameter vide notification no 65 of 2001. Subsequently vide notification no 69 of 2005 in July, these AD duties were removed but the notification was challenged and was not made operative
States can give mineral concession only after Centers approval
Indias Mining Minister Mr Sisram Ola today told the Rajya Sabha that states were free to grant mineral concessions but only after attaining prior permission from the Centre for a few minerals, including iron ore.
He said investments in mines and mineral-based industry for grant of mineral concession to applicants could not be the sole basis for a decision. ''Iron ore lease may be granted for setting up a steel plant. However, there is no provision of linkage under the law,'' he said.
As per the National Mineral Policy, 1993, both export of minerals and value addition within the country were valid activities and the aim should be to strike a balance between the two in the interests of the country and mining industry.
The Government has already constituted a High Level Committee under the Chairmanship of Member, Planning Commission to review the National Mineral Policy and recommend possible amendments in the Law.
Indian communist leader opposes three conditions in POSCO MoU
Mr AB Bardhan CPI general secretary, while claiming that Left parties are not opposed to POSCO project, is reported to have said that his party opposes three things in the MoU between the Orissa government and Posco. A new port should not be allowed, export provisions in the agreement should be cancelled forthwith and granting special economic zone status should be withdrawn.
Mr AB Bardhan said that another port near Paradip would hamper the growth of the existing port and reduce its revenue earning to reiterating CPIs opposition to the proposed port at Jatadhari by POSCO
He added that the central and state governments claim to earn huge revenue will fall flat if SEZ status is granted to the proposed steel project.
Bangladeshi economists oppose TATA investment plan
A section of economists and businesses at a dialogue in the city strongly opposed Friday the TATA's investment plan in Bangladesh and urged the government not to accept its conditions, as per a report in local daily. The domestic investors if offered incentives as demanded by the TATA can invest more than what TATA has proposed, the participants said at a dialogue styled "Investment proposal of TATA and the future of Bangladesh economy"
The discussants urged the government to assess the long term social impact of the TATA's foreign direct investment and not to be lured by the "Hot Money". Bangladesh will have to provide a seven fold subsidy if the government accepts the TATAs condition relating to gas supply for 20 years, they pointed out. Terming all the Tata conditions as destructive for the country's economy, speakers urged the government to mobilize resources, in case of any urgent need, through releasing 'bond' or `share' in the market instead of accepting the multi billion dollar investment proposal of TATA
RSPs plate & HR mills get ISO 14001
Two major units of the Rourkela Steel Plant RSP namely Plate Mill and Hot Strip Mill HSM have received the prestigious ISO 14001:2004 Environment Management System certification recently. Mr Balraj Singh, lead auditor of TUV India Private Limited handed over the certificate to Dr Sanak Mishra MD RSP.
Emphasizing the need for protecting the dignity of nature in the larger interest of the society, Dr Mishra said: It is the foremost duty of every individual to care for the environment and not to ask for natural resources more than necessary.
Orissa CM reviews steel projects in Kalinganagar
Orissas Chief Minister Mr Naveen Patnaik has asked the departments concerned to take all measures to clear bottlenecks on the way of implementation of steel projects in Kalinganagar area of Jajpur district during a review of the progress of all steel projects in Kalinganagar
Neelanchal Ispat Nigam Limited, Mesco, Jindals and Visa have already started production. KJ Ispat, Dinabandhu Steel and Rohit Ferrostat have started construction work. Tata Steel and Maharashtra Seamless would start work soon.
RINL bags cost management award
RINLs Visakhapatnam Steel Plant VSP has bagged the award for Excellence in Cost Management-2005 in the PSU category of above Rs.250 Crore turnover. The award was received by Mr KS Shankar GM F&A from Komala Anand, Secretary, Department of Company Affairs, Government of India at a function held at New Delhi on December 22.
The award was given by the Institute of Cost & Works Accountants of India based on a competition conducted among manufacturing companies in India. The award is conferred for effective implementation of cost and management accounting tools, quality of cost accounting records, optimum utilization of resources and productivity and quality management.
Expert committee advises for coal mine privatization
A high level inter ministerial expert committee on integrated energy policy has recommended that Coal Mines (Nationalization) Act, 1973 should be amended to facilitate private participation in coal mining. Its recently released report said, The coal blocks of Coal India Limited which it cannot bring into production by 2016-17, should be made available either directly or through joint ventures to other eligible candidates for development and bringing into production by 2011-12.
At the same time domestic coal production should be stepped up by allotting coal blocks to the central and state public sector units and for captive mines to notified end users, the report added. It has also sought to increase the number of private players in the downstream petroleum sector to augment the level of competition in the segment.
According to the panel, coal is the countrys most important energy source till 2031-32 and possibly beyond. India will need to take a lead in seeking clean coal technologies and new coal extraction technologies such as in-situ gasification, the report noted.
It added, The present shortage of coal can be addressed by encouraging imports, which are also needed from a longer-term perspective. Imports also put a competitive pressure on domestic coal industry to be efficient.
Arcelor enhances offer to acquire Dofasco Inc
Arcelor SA has announced its intention to make an enhanced all cash offer to acquire all of the outstanding common shares of Canadian steelmaker Dofasco Inc at C$63.00 per share.
Arcelor expects that the Board of Directors of Dofasco will recognize that this offer is superior to ThyssenKrupp's offer. Arcelor is open to approaches by Dofasco's Board of Directors and / or another party to finalize the acquisition at this attractive price level for the Dofasco Shareholders.
Mr Guy Doll CEO of Arcelor, reiterated that "Expansion into North America is a key strategic objective for Arcelor. We believe that Arcelor is an excellent partner for Dofasco. As a partner of the Arcelor group, Dofasco will become a stronger, more competitive steel producer on the North American steel market."
Mr. Dollalso underlined that Dofasco's highly regarded corporate values with respect to its relations with employees, and its legacy of active community engagement, are principles that Arcelor shares and will continue to support.
Full details of the offer will be included in the formal take-over bid and circular documents which Arcelor expects to mail to Dofasco shareholders in the coming days. The offer will be open for acceptance for 35 days
Dofasco is a leading North American steel solutions provider. Its product lines include hot rolled, cold rolled, galvanized, and tinplate flat rolled steels, as well as tubular products, laser-welded blanks and laminate. Dofasco's wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries.
Russian miners join to form mega iron ore mining company in CIS
A new iron ore mining and concentrating group with assets in Russia, Ukraine and Kazakhstan is to be set up next year, aiming to become a major international player rivaling world leaders CVRD, Rio Tinto and BHP Billiton. The new business is the brainchild of Russian businessmen Mr Alisher Usmanov and Mr Vasily Anisimov who believe that the new group will become a significant force on the world market with its existing assets and will also be attractive to investors, enabling rapid expansion.
Mr Vasily Anisimov who recently paid $1.65 billion to acquire Russia's second largest iron ore group, Mikhailovsky GOK, Kazakhstan's Sokolovsko-Sorbaisky and Ukrainian Yuzhny GOK and Inguletsky GOK. Mr Usmanov also has a large stake in Gasmetall, which in turn has an 80% stake in Lebedinsky GOK, Russia's largest iron ore mining and concentrating enterprise.
Their plan is to unite these assets into a single group named the Eurasian Mining and Metallurgical Company. Capitalization of the proposed group is estimated at $10 billion to $12 billion, with annual revenue $5 billion. The new group is expected to emerge in the second half of 2006.
The new company will have current production capacity of 78 million tons of iron ore a year with plans to increase to 100 million tons. While that's still less than half CVRD's 212 million tons a year it will create a new powerhouse in the region that will be able to influence not just local but also global prices through the opportunity to increase exports to iron ore hungry countries such as China, analysts say.
"We are currently in consultations with the governments of Russia, Ukraine and Kazakhstan, as well as with the owners of the assets there, concerning the creation of the Eurasian Mining and Metallurgical Company," said an official at Metalloinvest, the company which manages assets on behalf of Mr Usmanov and Mr Anisimov. "We are discussing various forms of integration of the assets, taking into consideration the specific features of legislation in the three countries and the form of capital in the assets involved," the official added. "All the participants in the process have confirmed that the creation of the group answers the national interests of Russia, Ukraine and Kazakhstan."
Russia, Ukraine and Kazakhstan have total iron ore reserves of 70 billion tons, eight times those of Brazil, four times Australia and three times China.
Dofasco acknowledges Arcelors revised bid
Dofasco Inc acknowledged today the announcement by Arcelor of its intention to make a revised, unsolicited takeover bid for the common shares of Dofasco.
"When and if such an offer is made the Dofasco Board of Directors will consider it on a timely basis and make a recommendation to Dofasco shareholders," the company said in a statement.
North American steel prices to decline in Q1 o 2006 Morgan Stanley
Analysts at Morgan Stanley believe that steel prices would decline in North America during mid-to-late 1Q06, since imports are expected to increase.
In a research note the analysts mention that the North American steel sectors fundamentals are healthy at present, with low inventory, disciplined production, healthy backlogs and firm pricing.
Morgan Stanley expects imports in North America, however, to increase, given the wide gap between the steel prices in North America and rest of the world.
China revises coal export quotas for 2006
China has issued 64 million tons of coal export quotas to 4 domestic majors as per a report from National Development and Reform Commission NDRC. China earlier set coke coal exports for 2006 at 14 million tons, which is the same level it had set for 2005. Chinese export firms often trade their quotas, which can raise the cost of exporting for companies which hold lower quotas.
The quota has been offered to China National Coal Group Corporation, Shenhua Group, China MinMetals Group and Shanxi Coal Import and Export Group.
NDRC predicts domestic demand to rise 7.5% to 2.08 billion tons, while demand from abroad would slow. It also says that China would import some 30 million tons of coal in 2006.
US ITC ends AD petition on wire rods
The United States International Trade Commission ITC has determined that there is not a reasonable indication that a US industry is materially injured or threatened with material injury by reason of imports of carbon and certain alloy steel wire rod from China, Germany, and Turkey that are allegedly sold in the United States at less than fair value. All six Commissioners voted in the negative. As a result of the Commission's negative determinations, the investigations will end.
The products subject to these investigations are certain hot-rolled products of carbon steel and alloy steel, in coils, of approximately circular cross section, 4.75 mm or more, but less than 19 mm, in solid cross-sectional diameter. Specifically excluded are, steel products possessing the above noted physical characteristics and meeting the Harmonized Tariff Schedule of the United States HTSUS definitions for (a) stainless steel; (b) tool steel; (c) high nickel steel; (d) ball bearing steel; and (e) concrete reinforcing bars. Also excluded are free machining steel products i.e., products that contain by weight one or more of the following elements: 0.03 percent or more of lead, 0.05 percent or more of bismuth, 0.08 percent or more of sulfur, more than 0.04 percent of phosphorus, more than 0.05 percent of selenium, or more than 0.01 percent of tellurium.
The preliminary antidumping petition was filed by wire rod producers of US including Connecticut Steel Corp, Gerdau AmeriSteel, Keystone Steel & Wire Company, Mittal Steel USA and Rocky Mountain Steel Mills. Preliminary investigations were instituted by the USITC on November 10, 2005 and voting took place on December 23rd
PSMC Privatization 6 bidders in fray
Dr Abdul Hafeez Shaikh, Federal Minister of Privatization and Investment, and Jahangir Khan Tareen, Federal Minister of Industries, Production and Special Initiatives, have directed all officials concerned for early resolution of critical issues pertaining to the privatization of Pakistan Steel Mills Corporation PSMC. They said all issues had to be settled ahead of privatization to complete the transaction in a transparent and smooth manner.
Pakistan governments Privatization Commission Board had received 19 Expressions of Interest in response to its invitation to offer up to 75% shareholding in the PSMC to a strategic investor. Of the 19 parties, 13 parties had submitted their SoQs for the purpose of pre qualifying. Privatization Commission Board pre qualified 8 parties for entering into the data room for due diligence
The data room was opened in the first week of December and as per Federal Minister for Privatization and Investment Dr. Hafeez Sheikh the bidding for Pakistan Steel Mills would be held on December 31.
Now it is reported that only six potential bidders are taking part in the process of due diligence including
1. Al-Tuwairqi Group of Companies, Kingdom of Saudi Arabia, with Arif Habib Group of Companies, Pakistan
2. Magnitogorsk Iron & Steel Works, Russia
3. Investment & Development Office of Government of Ras Al Khaimah, United Arab Emirates
4. International Industries Ltd, Karachi
In addition two Ukrainian companies backed by Azovstal & IUD are reported to be undertaking due diligence
SMS Demag to supply torpedo ladle cars to CST & Gerdau Acominas
Companhia Siderurgica de Tubarao CST Brazil, have awarded SMS Demag AG, Germany, a contract for the supply of three new torpedo ladle cars each with a nominal capacity of 450 tons. The cars will be used for transporting hot metal from the blast furnace works to the steelmaking plant. This contract follows the supply of three identically designed cars in 1998/1999.
Gerdau Acominas Brazil has placed an order with SMS Demag for the supply of a new torpedo ladle car with a nominal capacity of 350 tons for transporting hot metal. Delivery of this car will also be made in the second half of 2006.
In both cases the scope of supply will include the basic and detail engineering as well as fabrication.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics
ThyssenKrupp board takes note of Arcelor's intention
The Executive Board of ThyssenKrupp AG has taken note of Arcelor's intention, announced today, to make an enhanced offer for Dofasco.
ThyssenKrupp will review the announced offer and then decide on how it intends to proceed.
CVRD in talks to become major Usiminas shareholder
CVRD is in talks with Usiminas' shareholders to become part of the steel makers controlling group as per a report in local daily. "The company is in talks with all Usiminas shareholders," CVRD ED of new business Mr Murilo de Oliveira Ferreira said.
CVRD already has a 23% stake in Usiminas and even along with pension fund Previ that owns 14.9%, is not in the group of controlling shareholders. The controlling group has 53.2% of Usiminas and is made up of Nippon Usiminas 18.4%, Caixa dos Empregados da Usiminas 13.4%, Camargo Corra 7.3%, Votorantim 7.3%, Bradesco 2.6%, Sudameris 1.9% and others 2.3%
CVRD is pressing steelmaker Usinas Siderurgicas de Minas Gerais SA to avoid bringing in a foreign partner, as planned, to build a $3 billion mill that would produce 5 million metric tons a year. Vale is concerned foreigner companies will seek to limit Usiminas' growth in international markets, curbing demand for Vale's ore. Plans for the mill were announced December 12.
CVRD believes that Usiminas has the potential to become a global company that would be able to sell products to the US automobile industry, according to the paper. "We do not intend to take control of Usiminas or to become its lead shareholder, but we want to participate in the company's management," CVRD CFO Mr Fbio Barbosa sad.
CVRD's plans have met resistance from some shareholders such as Nippon Usiminas, a consortium of Japanese investors led by Nippon Steel, which does not want the steelmaker to expand internationally and become a competitor.
Mittal Steel 'BBB+' rating affirmed and off credit watch by S&P
Standard & Poor's Ratings Services said it has affirmed its 'BBB+' long-term corporate credit rating on Dutch steel consortium Mittal Steel Co NV and removed it from CreditWatch with negative implications. The outlook is now negative, said the agency.
The company was placed on CreditWatch on Oct 25 following the group's successful $4.8 billion bid for Ukrainian steel mill VAT Kryvorizhstal.
The agency also affirmed its 'BBB' long-term rating on Mittal subsidiary Ispat Inland Inc and removed it from CreditWatch negative, and placed related entity Mittal Steel USA ISG's 'BB' long-term corporate rating on CreditWatch positive, reflecting the planned merger of the two.
'Following the completion of the acquisition of Kryvorizhstal, Mittal's credit metrics will still compare favorably with those of industry peers and remain adequate for the ratings,' said Standard & Poor credit analyst Ms Elena Anankina.
PSMC Privatization Brief on mill
PSMC is Pakistans largest and only integrated steel manufacturing plant, with an annual designed production capacity of 1.1 million tons. It was incorporated as a private limited company in 1968 and commenced full-scale commercial operations in 1984.
PSMC complex includes coke oven batteries, a sintering plant, blast furnaces, steel converters, bloom and slab casters, billet mill, hot and cold rolling mills, galvanizing unit and 165MW of own power generation units, supported by various other ancillary units. It is located 30km southeast of the coastal city of Karachi, in close proximity to Port Bin Qasim, with access to a dedicated jetty, which facilitates import of raw materials.
PSMC manufactures a wide mix of products, which includes both flat and long products. The PSMC effectively enjoys a captive domestic market due to the prevalent demand-supply imbalance in the countrys steel industry, where demand has historically exceeded local supply.
Ukrainian metal traders want large steel makers presence
The Ukrainian Association of Metal Traders is interested in large world producers to come on the Ukrainian metal market and is expecting the active participation of world's second steel producer Arcelor
President of the Ukrainian Association of Metal Traders Mr Andriy Fedoseyev made an announcement at a meeting with Arcelor manager for sheet rolled steel sales in Eastern Europe Mr Jean-Paul Schuler during the visit of the Ukrainian Association of Metal Traders delegation to Arcelor enterprises in Germany.
Winners of the steeluniversity.org Virtual Steelmaking Challenge
IISI has announced the winners of the worlds first virtual-steelmaking challenge. The challenge was based on the Secondary Steelmaking Module, one of several steelmaking simulations that form part of the award winning steeluniversity.org website.
Competitors were asked to produce a high alloy steel, commonly known as 300M or SAE4340 modified. The steel is capable of achieving a tensile strength of 2000 MPa with a fracture toughness of KIc of 55 MPa √m. It is an ultra-high strength alloy used for critical safety components such as aircraft undercarriage parts.
A team from RIVA-ILVA S.p.A. in Italy has won the Industry Challenge while the University Challenge was won by a student from the University of Leoben in Austria. The industry winners from RIVA-ILVA S.p.A. were Mr Francesco Lentini, Mr Alessandro Buonomo, and Mr MariggiGianvito with a winning cost of $224.73 per tonne. The university winner was Mr Sebastian Michelic from the University of Leoben with a cost of $226.10 per tonne. The winners will receive a cash prize which will be presented at a major IISI meeting.
The contestants had to refine a ladle of liquid steel to the specified low sulphur, high alloy content composition. They had to decide which furnaces and equipment to use, what to add and when. The liquid steel had to arrive at the requested caster at the right time and temperature with low inclusion content and at the least cost. The winner was selected on the basis of the lowest cost, a simulation that was only achieved two minutes before the competition closed.
Over 600 attempts were made in the 24 hours of the competition. More than 50 competitors successfully made the steel and met all the technical requirements.
Outokumpu says to cut 670 jobs in Sheffield
Finland based SS maker Outokumpu announced that it will cut 670 jobs in Sheffield in northern England after concluded staff talks. It would stop production at its Coil Products business in Sheffield CPS, as it had indicated in October.
Outokumpu said in a statement it expects its operating profit level to improve by about 50 million euros annually from the second half of 2006 onwards as a result of its cuts.
Massey extends CEO Mr Blakenships contract
Massey Energy Co. has extended Mr Don Blankenship's contract as chairman, president and CEO of the US's fourth-largest coal producer through 2006. Mr Blankenship's current contract was set to expire Dec. 31. It is reported that Massey and Mr Blankenship have agreed on terms that allow him to continue running the company for another year.
Mr Blankenship has headed Massey since Nov. 30, 2000, when the company was spun off from the Fluor Corp. He previously held the same posts with Fluor's A.T. Massey Coal Co. subsidiary since 1992.
Admiral Bobby Inman chairman of the Massey board's compensation committee wrote "I am very pleased that you will continue your leadership of Massey and look forward to another productive year," Inman wrote in the three-paragraph letter.
Massey, based in Richmond, Va., has operations in West Virginia, Kentucky and Virginia. Last year, Massey sold more than 40 million tons of coal and employed more than 5,000 workers.
Mr Morales denies pressuring for El Mutn bidding delay
Bolivia's president elect Mr Evo Morales denied reports that say his party MAS put pressure on officials to delay the bidding process for the El Mutn iron ore deposit in Santa Cruz. Mr Morales also guaranteed that the project will go forward: "This is a process that must continue because it is important for the country, and especially Santa Cruz."
The government delayed bidding for 60 days from December 21, when companies were due to submit offers. This resulted in massive protests from people of Santa Cruz leading to blockage of Bolivian border with Brazil
El Mutn covers 60 sq km and boasts estimated reserves of 40 billion tonnes of iron ore.
Venezuelan iron ore miner FMO reports record output in 2005
Venezuela Ferro Mining Orinoco Corporation FMO registered a record production of 22 million tons of iron in 2005 informed Mr Cesar Bertani President of FMO. FMO, a branch of the state owned Venezuelan Guayana Corporation CVG supplies raw material for iron production to national firms.
Mr Cesar Bertani said that the production was higher by 2 million tonnes over 2004. He ascribed success to the technological development of the firm, the expansion of transport and mineral processing systems, and good relations between executives and workers.
He said that projects to construct a mineral storage plant to reduce phosphorus concentrations and other impurities are in motion. Our goal for 2006 is to produce 23.5 million tons and double the number of social production enterprises with the support of the FMO, he remarked.
FMO is part of the CVG, which encompasses 11 hydroelectric, mining, forestry, tourist, aluminium, iron and steel subsidiaries in the states of Amazonas, Bolivar, Delta Amacuro, Monagas and south of Anzoategui, and has a commercial office in the US.
China prosecutes 96 for 6 major coal accidents in 2006
China has dismissed two provincial deputy governors and prosecuted 96 officials blamed for six high profile coal mine accidents that killed a total of 528 people over the past 13 months, the government announced Friday. The deputy governors of Shanxi province in the northwest and Guangdong in southern China were dismissed after being found partially responsible for mine accidents, according to Mr Chen Changzhi, deputy minister of the Ministry of Supervision.
In addition, 96 officials were prosecuted and 126 other officials were demoted or fired, Li and the other officials announced. They did not give any details of what charges the officials faced, how many were convicted or what penalties they might face.
All six disasters were blamed on managers who failed to follow safety rules, sometimes with official collusion, the country's top industrial and mine safety officials said at a news conference.
McChip Resources increases ownership in Baffinland
McChip Resources Inc announced that it has increased its equity ownership in Baffinland Iron Mines Corporation from 9% to approximately 11% of the issued and outstanding common shares of Baffinland.
Baffinland is a mineral exploration and development company with its sole focus being the advancement of its wholly owned Mary River project, located in Nunavut Territory, Canada.
McChip is a Canadian controlled mineral, oil and gas corporation engaged in the natural resource industry. It has hydrocarbon participations in Western Canada and the United States, and indirect interests in the mineral industry in the form of investments in marketable securities in companies listed on recognized stock exchanges.
EC decides to ban liner shipping conferences
European Commission has decided to propose a ban on liner shipping conferences and similar arrangements by which groups of shipping companies set common freight rates for particular routes. Brussels does appear, however, to have gone some way towards accepting a case put forward by the liner shipping industry for a replacement regime. This could possibly allow cooperation on issues including rate indices and common formulas for setting the level of additional charges levied on top of basic ocean freight rates.
The European Commissions move comes days after the Competition Commission of Singapore recommended that the government grant exemptions from anti-cartel law for liner conferences and discussion agreements.
The European Commissions move would, in practice, dictate the abolition of conferences on trade routes between EU states and anywhere else since European anti-cartel law will apply to both import and export trades. To bring about the ban, EU member states would have to renounce the Code of Conduct for Liner Conferences set out by the United Nations Conference on Trade and Development (UNCTAD). The policy adoption by the EC must now run the full legislative review process and when finally passed will include a two-year phase-out of the centuries-old conference system.
Mr Chris Bourne, Executive Director of the liner industry lobby group European Liner Affairs Association, said, "Obviously, the liner shipping industry will be disappointed at the prospect of the abolition of the conference system. This system has been in existence for over 150 years and on balance has served the industry well. However, we appreciate that the Commission, supported by shippers and their associations, has steadfastly opposed its continuation. We must now look to the future".
Newport terminals eying coal imports
Both Dominion Terminal Associates DTA and Kinder Morgan Bulk Terminals, next to each other on the southwestern tip of the Peninsula at Newport News, want a piece of coal import which is expected only to grow over the next ten years. The two companies are actively planning to improve their piers to be able to unload ships carrying coal from abroad, not simply to load it onto ships heading out.
DTA is considering spending $25 million to outfit its coal center with new cranes, hoppers and conveyors. While Kinder Morgan's Pier IX needs much more work including dredging near the berth - to ready its piers.
"The race is on," said Mr David Host, president of T Parker Host a Norfolk shipping agent firm. "Two import facilities in Newport News are competing for a market share of the import coal that no question is making its way to the United States."
Coal import into US has jumped to 30 million tons this year from 15 million tons two years ago and is expected to more than double again to 70 million tons within ten years Mr Host said
But Newport News handles none of that imported coal right now. Much of it goes directly to waterfront pier facilities owned by utility companies. The experts say that as the railways are charging too much to imported coal in times to come the inland transportation will be through barges.
DTA is a consortium of four different companies. Those include Dominion Energy, a division of Richmond-based Dominion Resources; Alpha Natural Resources, based in Abingdon; Arch Coal, based in St. Louis; and Peabody Energy, also based in St. Louis.
Kinder Morgan Bulk Terminals is a division of Houston-based Kinder Morgan.
Corrigendum STT Dec 22 - CMC reports slide in results
CMCs net earnings are $69.9 million instead of $36.6 million as published earlier
The typographical error is regretted
Accordingly the heading of the news item also stands corrected as CMC maintains earnings in-spite of downturn
