February, 16 2006
Mr Chirac orders Clemenceau back to France
French President Mr Jacques Chirac ordered back an asbestos laden French decommissioned aircraft carrier Clemenceau back to France pending a final decision on how to dispose of the 27,000 tonne ship. He also demanded a fresh audit of the amount of deadly asbestos on board after a 30 tonne discrepancy emerged between the amount of asbestos said taken off the Clemenceau and the amount weighed by disposal teams.
French Defense Minister Michele Alliot-Marie said the Clemenceau would return to France via the Cape of Good Hope and the passage would take about three months. It has been in a waiting zone off India's territorial water since mid January. "Regarding the cost the return, that will be taken on by the state and should be around 1 million euros," Alliot-Marie told.
India's top court has already banned the Clemenceau from entering the country's territorial waters pending a final decision on whether the asbestos represents a health hazard to Indian scrapyard workers.
Chhattisgarh wants to take back iron ore mines from NMDC
The Chhattisgarh government would make efforts to ''take back' the iron ore mines in possession of National Mineral Development Corporation, Chief Minister Dr Raman Singh said today. ''We are of the view that iron ore mines should be given to those industrial units engaged in production within the state'', he said.
Dr Singh said most of the iron ore mines within the state were in the possession of public sector NMDC. Besides, 90% cent of the rich iron ore obtained from these mines were being exported to Japan and other countries. ''The state is getting very less royalty from these iron ore mines'', he added. ''We want that lease of these mines be given to local industries so that value addition could take place within the state itself'', he said.
Indian Commerce Minister reminds EU of WTO accord
It is reported that Indian Commerce minister Mr Kamal Nath shot off a letter to EUs Mr Mandelson today saying attempts to thwart Mittal Steels bid violated EU's commitment to the WTO accord, which provides for national treatment to cross-border investment. Mr Nath has pointed out that Mittal Steels bid was covered under this provision.
Mr Nath said in his letter to Mr Mandelson that the EU had requested India that this sort of national treatment for cross-border investment should be provided on a reciprocal basis. This does not seem to be happening in letter and spirit. It impinges upon the ongoing WTO services negotiations. We view it with serious concern, the letter adds.
What is happening does not seem to be in consonance with the letter and spirit as India would like to see that national treatment is accorded to all cross-border investments, he said.
The minister has also written a letter to Prime Minister Dr Manmohan Singh, requesting him to take up the issue with French President Mr Jacques Chirac during the latters visit here.
Luxembourg says India threatened tax accord
Luxembourg's prime minister said on that India had threatened not to ratify a double taxation accord with the Grand Duchy but an Indian diplomat denied it had made any such move. Mr Jean-Claude Juncker told a business luncheon there had been such a threat but did not elaborate or say whether it was linked to his vocal opposition to a bid by Mittal Steel to buy Arcelor, which is based in Luxembourg. "The Indian government ... has just threatened the Grand Duchy with not ratifying a double taxation agreement between India and Luxembourg," the prime minister said.
However, Mr Amar Sinha, minister of trade and economic affairs at the Indian embassy in Brussels, told Reuters the Indian government had already dismissed Indian reports about such a threat earlier this week. "He must be referring to the press reports," he said. "They're purely speculation." "We are still negotiating that agreement," he said. "One or two incidents don't change our foreign policy," he said, adding the bid should be judged on its economic merits he added.
Russia likely to take part in VSP expansion
RINLs Visakhapatnam Steel Plant, which was set up with the assistance of the then Soviet Union nearly two decades ago, is likely to once again get the involvement of Russian technological assistance and consultancy for its expansion program. The country would like to participate in tenders for construction of the third blast furnace, coke oven and convertor.
A Russian delegation headed by Mr Vyacheslav Itrubnikov Russian Ambassador visited Visakhapatnam Steel Plant. They held discussions with directors and senior officials of VSP on various issues.
The VSP's expansion plans is expected to be undertaken at a cost of Rs.8,600 crores to double its production from 3.2 million tonnes to 6.4 million tonnes.
Chhattisgarh government declines to divulge MoU details
It is reported that Chhattisgarh government has declined to make public the MoUs, which it had signed with TATA Steel and Essar Steel for setting up steel plants at an estimated cost of Rs 16,000 crore in tribal Bastar district. The State Commerce and Industry Deputy Secretary Mr Shankar Rao Brahmane refused to disclose contents of these MoUs to Mr Shankar Mede, who had sought the details under the provisions of the right to information Act 2005. In his letter, the deputy secretary pointed out that both the MoUs had a provision, which stipulated that no details contained in the MoUs could be disclosed to any 'third party' without the consent of the signatories. "Hence, it is difficult to make ava ilable the copies of these MoUs," he added.
Minister of State for Industries, Mr Rajesh Munat, said, "It is a Government document. It is up to the Government to decide whether to keep it secret or to make it public." "I don't think that there is anything wrong in making a provision in the MoU itself that its details would not be disclosed to a third party without the consent of the parties concerned," he said.
China to announce measures to save metallurgical coke industry
China's top economic policy planning body said that it would come up with a package of industry policies no later than April to further regulate the fragmented industry of metallurgical coke. The new policies aim to enhance industry consolidation and eliminate old facilities that waste energy in sectors, which also include steel, calcium carbide and aluminum production. Industry analysts said the new regulation, if carried out effectively, would help boost the coke prices because of a drop in production. "We will introduce these regulatory policies soon after the parliament meets next month," an official in charge of industry policies from the National Development and Reform Commission told China Daily.
The policy planner last year introduced a series of regulations to lift the threshold for coke producers. The NDRC official yesterday said a major proportion of China's small coke producers had been shut down so far, accounting for about one-third of the country's total coke production. He said the government is also encouraging large steel makers to acquire coke production facilities.
Last year, the capacity of coke production exceeded demand by as much as 100 million tons. By the end of last year, China had 1,480 coke producers, boasting a total production capacity of 300 million tons, but the demand only stood at roughly 200 million tons, Mr Hua Zugui, president of China Coal & Coke Holdings Ltd, said. Still new coke facilities producing as much as 30 million tons are also being planned across the country, Mr Hua said.
The over-capacity has led to plummeting coke prices, causing many coke producers in China to complain about losses due to squeezed margins. An official from China Coal & Coke said the FOB price dropped to $130 a ton from $450 in 2004. Coke producers, including China Coal & Coke, gathered in Beijing in December last year, calling for the government to tighten controls over the fragmented sector. They also talked about measures to raise coke prices.
Mittal Steel reports Q4 & 2005 results
Mittal Steel Company NVs net income for the three months ended December 31, 2005, was $650 million as compared with net income of $478 million for the three months ended September 30, 2005, and $1.6 billion for the three months ended December 31, 2004.
Consolidated sales and operating income for the three months ended December 31, 2005, were $7.1 billion and $871 million, respectively, as compared with $7.1 billion and $765 million, respectively, for the three months ended September 30, 2005, and as compared with $6.2 billion and $1.7 billion, respectively, for the three months ended December 31, 2004.
Total steel shipments1 for the three months ended December 31, 2005, were 13.6 million tons as compared with 13.0 million tons for the three months ended September 30, 2005, and 10.1 million tons for the three months ended December 31, 2004.
Mittal Steel Company N.V. net income for the twelve months ended December 31, 2005, was $3.4 billion as compared to net income of $4.7 billion for the twelve months ended December 31, 2004. Consolidated sales and operating income for the twelve months ended December 31, 2005, were $28.1 billion and $4.7 billion, respectively, compared to $22.2 billion and $6.1 billion, respectively, for the twelve months ended December 31, 2004. Total steel shipments for the twelve months ended December 31, 2005, were 49.2 million tons as compared to 42.1 million tons for the twelve months ended December 31, 2004.
BHPB CEO upbeat on China
BHP Billiton maintains a positive view on China's economic outlook, CEO Mr Chip Goodyear told reporters, after the world's largest diversified resources group reported a 48% rise in six months to December net profit to a record $4.364 billion.
In the six months to December BHP Billiton's sales to China continued to rise, approaching $3 billion in the latest half about 16 of total sales.
We continue to feel quite good about China, Mr Goodyear said, adding that recent upward revisions to China's gross domestic product estimates point to broad strength in the economy. The important thing is not just that the number is higher - we all knew that the number was probably higher than the official estimate but it is the balance between the industrial economy and the service economy, he said.
Mr Goodyear said China's economy appears to be in relative balance and is consistent with other North Asian economies during periods of significant growth. I think it adds to the sustainability of China. We think this year there's about a 9 pct GDP growth, he said.
Goodyear said BHP Billiton expects the government to continue exerting 'macro controls' on some of the businesses like aluminum, cement, property and steel and probably extend that to coke, copper and power. Long-term, he said, industrialization and urbanization will continue so BHP Billiton expects China's GDP growth to remain above 8 pct for a number of years.
Arcelor CEO to discuss only if bid is cash
Mr Guy Dolle CEO of Arcelor is reported to have said that he will consider a takeover offer from Mittal Steel NV if the bid is made in cash, instead of the share and cash offer being proposed by Mittal. 'It's certain that in case of an offer made entirely in cash, Arcelor's board of directors would be obliged to consider it,' Mr Dolle said in an interview with French daily Le Figaro.
Dolle said he would refuse to discuss Mittal Steels's offer as long as it was based on an exchange of stock, calling Mittal shares 'second-class paper' that is not liquid, since the Mittal family owns the large majority of Mittal Steel stock, and also have double voting rights for their stake.
Mr Mittal sees cast iron logic in Arcelor bid
Mr LN Mittal, CEO of Mittal Steel chose to ignore the political controversy his group's bid for rival Arcelor has stirred up, saying on Wednesday: "We are pleased with the very positive reception our offer has received, and are confident that progress is being made towards establishing the regulatory framework for the offer."
Mr Mittal gave no new information about the $22bn hostile bid for Arcelor but did argue that Mittal Steel's "solid performance in a more challenging year" demonstrated the wisdom of the consolidation that Mittal has pursued with its acquisition of ISG in the US and Kryvorizstal in Ukraine last year. He said: "The same logic lies at the heart of our proposed strategic merger with Arcelor. The steel industry needs strong, value-creating, growing companies with global reach which this combination would deliver."
Arcelor to propose big dividend increase
It is reported that Arcelor's board will propose a substantial increase to its dividend payment when the steelmaker publishes its annual results on Thursday, a source familiar with the situation said on Wednesday. "It (the proposed dividend) is very positive," the source told Reuters on condition of anonymity.
A dividend increase had been seen by analysts, as one of the ways Arcelor could win the favor of its shareholders in its fight against Mittal Steel.
Mr Mittal says reception from Arcelor investors good
Mittal Steel said its bid for Arcelor was well received by many of the shareholders, as it posted forecast-beating fourth quarter earnings on Wednesday. Mr Aditya Mittal CFO said "We have met a considerable number of Arcelor shareholders. We estimate it at between 30 to 40% of the shareholder base. The response is positive, they understand the strategic rationale of the transaction". "But it is too early for them also to indicate to us whether they want to take this price," he said.
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CEO Mr LN Mittal said in a statement: "We are pleased with the very positive reception our offer has received, and are confident that progress is being made towards establishing the regulatory framework for the offer".
ThyssenKrupp Stahl orders 3 new HSM coilers from SMS Demag
ThyssenKrupp Stahl recently ordered three new coilers from SMS Demag, Germany, to be installed between May and September 2007 at the hot-strip mill in Bruckhausen, Germany.
The coilers, incorporating a new design and stepped control, will replace the existing coiler system. SMS will supply the mechanical equipment, all electrical and automation systems, and a new process model for the cooling section. TKS and SMS co-developed the redesign program to minimize plant downtime.
SMS GmbH takes over Siemens shares in SMS Demag
SMS GmbH has taken over the 28% share in SMS Demag AG previously held by Mannesmann Demag Kraus Maffei GmbH, a subsidiary of Siemens AG on February 14, 2006,. This means SMS GmbH now owns 100% of SMS Demag AG. The parties agreed not to disclose the purchase price.
Siemens originally acquired the shares in SMS Demag AG in 2001 as part of its Atecs-Mannesmann purchase.
Onesteels Steel and Tube's H1 profit down
OneSteel Holdings Limited's wholly owned New Zealand based subsidiary, Steel and Tube Holdings Limited announced a $2.1 million decrease in net profit to $17.68 million for the half year ended 31 December 2005. New Zealand-based Steel & Tube said in a statement that its net profit for the six months to Dec. 31 fell to NZ$17.7 million, down from NZ$19.8 million a year before. The company said the overall trading environment for the second half of the financial year would continue to be challenging as the economy was expected to soften further.
Chairman Mr Peter Smedley said that although the outlook for commercial construction was expected to be strong, the rural and manufacturing sectors would continue to be under pressure in the foreseeable future. A slowing in consumer spending may further affect the demand for new housing as well as the industries that are reliant on an active residential housing sector, he said. Australia's largest manufacturer and distributor said that international steel prices had softened to a degree, however, the company said the impact may be lessened if the New Zealand dollar continued to weaken.
OneSteel said an agreement to acquire the trading assets of the New Zealand Fasteners Group, a distributor of stainless steel products, for approximately $11 million was reached today subject to the completion of due diligence.
Bolivia El Mutun iron concession auction to proceed
Bolivia's mines and metals minister Mr Walter Villaroel, said Wednesday that the government will proceed with plans to auction off a concession to develop the country's massive El Mutun iron ore deposit. According to a report by the Bolivian government's official news agency, ABI, Mr Villaroel said the government of President Mr Evo Morales was committed to developing the El Mutun deposit and would go ahead with the scheduled concession auction. While the government will fulfill established terms of the concession auction, it will also seek to improve royalty payments and take measures to ensure proper economic development related to the deposit, Mr Villaroel told ABI.
The concession to develop El Mutun was originally scheduled to be auctioned December 21, but was postponed so that Morales' administration could make a final decision on the project. Last week, local leaders in Santa Cruz department, where El Mutun is located, threatened to block highways and railroads connecting the city to the rest of the country if El Mutun was not auctioned off February 21.
El Mutun has estimated reserves of 40 billion metric tons of iron ore, and would take an investment of $300 million to develop. According to Bolivia's economic development ministry, exports of iron ore from the mine could total $200 million per year.
PSMC Privatization - Workers oppose move
The Peoples Workers Union of Pakistan Steel Mills has termed the planned privatization of the large steel manufacturing public sector organization as unjustified and demanded the government reconsider its decision. In a letter sent to the Prime Minister Mr Shaukat Aziz the general secretary of the union Mr Syed Hameeduallh rejected the governments perception that the PSM was making losses and only private sector could turn it into a profitable organization.
He said that the Privatization Commission was incorrect in stating that the PSM had come into profit only after manpower and financial restructuring made by the government in 2000. This is distortion of facts because according to audited accounts it came into profit as early as 1988-89, he added. Most regrettably, the PSM after a tremendous upswing from 2001 to 2005 has seen an unprecedented decline during first seven months of current financial year, he said adding that this happened because plant was not maintained in last two years by present management.
Blaming the present management for a loss of Rs18 billion the labor leader said that according to the documents prepared by the Privatization Commission this amount was required to rehabilitate the plant for achieving its production capacity of 1.1 million tonnes. This huge investment would not have been necessary had the plant been maintained during the tenure of the present chairman, he said adding that if the plant had been maintained its production capacity could have been enhanced to 1.5 million tonnes through an investment of $160 million as proposed by the Russians in 2004.
Giving details of the losses the CBA leader demanded an inquiry and steps to recover the amount. If the PSM is now making profit, would it be correct to hand it over to the private sector, he questioned.
Mittal Steel SA to build gas based power plant at Vanderbijlpark
Mittal Steel SA may build a gas-fired power plant at its Vanderbijlpark steel plant, which would give it carbon emission credits that can be traded. Were busy looking at a proposal on this and this hasnt yet been concluded, Mr Davinder Chugh CEO said in an interview.
One of the options for excess gas produced at the plant is to use it for power generation, he said This year will see Mittal Steel South Africas gas strategy taking shape, Mr Chugh said, declining to elaborate.
Arcelor reaches framework deal with Chinese firm
Chinese Securities newspaper reported that Arcelor has reached a framework agreement with Chinese producer Laigang Group that will allow Arcelor holding a minority stake in the Chinese firm. The report gives no details about the deal, but unconfirmed media reports have said that Arcelor will pay 1.8 billion yuan ($ 222 million ) for its shares in Laigang. Arcelor started negotiations with Chinese steel firms as early as 2004, but all of them had failed due to its insistence on controlling shares.
"Laigang has reached an accord with Arcelor on the ratio of shares to be purchased. Archelor will not be holding the controlling shares," said an unidentified official in Laigang, a major Chinese steel producer based in Laiwu City, east China's Shandong Province. The official said the agreement also involves the transfer of technology and management expertise as well as the sharing of commercial resources.
Laigang Group turned out 6.58 million tons of steel in 2004. It is the parent company of Laiwu Steel listed on the Shanghai Stock Exchange. Laiwu Steel has been approved by Chinese authorities to build a new H beam plant at a cost of two billion yuan.
NS Group announces increase in sales and profits
Profits at steel tubing maker NS Group Inc rose 64% to $39.8 million compared with $24.3 million in the same period a year earlier. Net sales increased 2% from the 2004 quarter to $154 million. Compared with the July to September period, fourth quarter net profits were up 29% and sales were 10% higher.
For all of 2005, net income increased 70% to $127 million. Sales in 2005 rose by 29% percent to $601 million, even though shipments of welded tubing made at the company's Newport Steel subsidiary in Wilder declined 14% to 206,200 tons and shipments of seamless tubing were flat. The average price per ton was up 28% for welded tubing and up 41% for seamless tubing. Most of the tubing is used in natural gas and oil-drilling operations.
Mr Rene Robichaud, NS Group president and CEO said the company achieved a record operating income margin of 26% in the fourth quarter as well as other records for safety, productivity and efficiency. After two "extraordinarily profitable" years, 2006 has the potential to be equally outstanding, he said. NS Group plans to upgrade its core business with more than $40 million of capital expenditures in 2006. "We believe these capital investments will lower our cost structure and ensure the continued reliability of our seamless and welded tubular operations," Mr Robichaud said.
Mittal Steel's Arcelor bid fuels US consolidation talk
If Mittal Steel is successful in a bid for Arcelor, it will set off a steel industry free for all with several US manufacturers among potential takeover targets, analysts said. The atmosphere is rife with rumors of consolidation. A week ago, stock in US Steel Corp rose more than 7% after a German newspaper said Arcelor was considering a cash offer for the Pittsburgh based US Number 1. AK Steel also saw its stock surge last month on speculation it was in the cross hairs of ThyssenKrupp
"I came up with a list of 20 North American companies that could be had," said analyst Mr Charles Bradford of Bradford Research. "They are not necessarily for sale, but a lot will sell if the price goes up. A lot have warts, but there are some good ones, too." Mr Bradford said his list of acquisition targets includes Stelco, Algoma Steel, privately held Sheffield Steel. And he said although Schnitzer Steel of Portland had withdrawn its Cascade Steel Rolling Mill from the market, "for the right price, who knows?". Mr Bradford said he saw Steel Dynamics and Gerdau Ameristeel as buyers. "They tend to make acquisitions, but don't want to overpay."
Applebaum also mentioned Steel Dynamics, as well as AK Steel and Canada's IPSCO as potential targets. She noted there had been little talk of Tampa, Florida based Gerdau Ameristeel, which she said was the fourth largest US steel maker. It was a maker of long products but might be interested in expanding into flat-rolled products. And a Mittal move for Cleveland-Cliffs, the No. 1 North American supplier of iron ore pellets, which already supplies Mittal, might not be out of the question, she said.
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Mr Michael Locker, of Locker Associates said that Mittal Steels bid for Arcelor had moved global steel consolidation into high gear, with major players aiming for 75 to 100 million tonnes of capacity instead of 50 million. Locker noted Mittal bought ISG last year for $4.5 billion, or approximately $225 per tonne of capacity, while the proposed Arcelor deal works out at $517 per tonne. In contrast, Arcelor is offering to pay $892 per tonne for Dofasco.
Merrill Lynch analyst Mr Daniel Roling said global steel stocks have risen about 30% since the start of 2006, boosted by renewed interest in industry consolidation. "We continue to believe that consolidation is much needed for this industry," he said in a research note. Driven mostly by industrial growth in China, US steel makers are enjoying high times unseen in decades. But just as they swim against the tidal wave of red ink and bankruptcies that threatened them in the 1980's and 90's, they are looking over their shoulders at checkbook waving rivals intent on consolidating the global landscape.
Ugandas Sembule Steel asks for government support
Mr Francis Sembuya MD of Sembule Steel Ltd wants the Government to support local manufacturers through purchase of their products. He said in an interview recently at their Nalukolongo factory in Kampala that lack of government support discouraged innovations. He said government departments, which should support local manufacturers by buying their products, import the same products. It is a challenge because it gives us a setback. We are requesting the Government to put up a policy to reverse this trend, Mr Sembuya said.
Established in the 1960s, Sembule is the pioneer steel manufacturer in Uganda.
CMC elects Mr Anthony A Massaro as Lead Director
Commercial Metals Company announced today that the Board has modified its Corporate Governance Guidelines to provide for the designation of a Lead Director by its independent directors. Anthony A Massaro has been appointed to that position. The Lead Director will serve as a liaison between the Chairman and independent directors with such responsibilities as are described in the Corporate Governance Guidelines.
A Board member since 1999, Mr. Massaro chairs the Nominating and Corporate Governance Committee and is a member of the Compensation and Audit Committees of the Board. Mr. Massaro retired as President and Chief Executive Officer of Lincoln Electric Holdings, Inc. in June 2004 and as Chairman of Lincoln Electric's Board in October 2004.
Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic overseas markets.
Techint bags order for furnace for Mittal Steel Poland
Techint Technologies has earned an order from Siemens-VAI, the project's lead contractor for Mittal Steel Poland for a new walking-beam furnace for its hot-strip mill. The order also includes systems and equipment for a complete new roll shop. The new walking-beam furnace will have an operating capacity of 450 metric tons per hour. The new roll shop will include three roll grinders.
Techint will perform engineering, supply all equipment, train the operators, and supervise installation and commissioning. Construction is scheduled for completion in December.
Malaysian Southern Steel posts Q4 net loss
Southern Steel Bhd registered a net loss of RM18.31 million in the fourth quarter ended December 31 2006, compared with a net profit of RM7.29 million registered in the corresponding period last year, due to softer steel prices. During the quarter under review, revenue slipped 1.46 per cent to RM547.96 million from RM556.07 million.
For the full year ended December 31 2005, Southern Steel posted a net loss of RM30.88 million compared with a net profit of RM98.07 million previously. Revenue was up 13.19 per cent up to RM2.43 million from RM2.39 million a year ago.
"The losses were attributable to our operating subsidiaries and overseas associates. For the steel industry, 2005 became progressively tougher from the second quarter," Southern Steel told Bursa Malaysia. It added that in the local construction market, margins were squeezed while in the international market, the drop in prices was severe as China turned into a net exporter of cheap construction grade steel.
The company added that barring unforeseen circumstances, it expects lower losses in the first quarter of 2006 and to return to profitability in the current financial year.
Friedman Industries announces third quarter results
Friedman Industries, Incorporated, a Houston based company engaged in pipe manufacturing, steel coil processing and steel and pipe distribution, announced today its results of operations for the third quarter.
Net earnings for the quarter ended December 31, 2005 were $1.6 millions on sales of $44.5 million. During the quarter ended December 31, 2004, net earnings were $1.2 million on sales of $43.4 million.
Platinum Equity buys PNA Group
Los Angeles based Platinum Equity plans to buy steel products processor and distributor PNA Group Inc for an undisclosed price. Platinum Equity said its acquisition of PNA Group will help it expand in the steel and steel services sector.
PNA Group has $1.2 billion in annual revenue. PNA Group runs Atlanta-based Infra-Metals, which produces steel structural products; Chicago-based Feralloy, which provides hot-rolled coiled steel, galvanized and other rolled steel; and Houston-based Delta Steel, which provides steel structural beams, channels, tubes, plates and hot-rolled coiled steel.
Platinum Equity bought ESM Group Inc in last December, which provides a variety of products and services to the steel production industry.
Mittal Steel SA says "engaging" in Highveld bid
The South African arm of Mittal Steel said on Wednesday it was "engaging" in the bidding process for a controlling stake in Highveld Steel & Vanadium but declined to say whether it had made an offer. "We are engaging in the process, it is expected to be confidential and we are respecting that," Mittal SA CEO Mr Davinder Chugh told a presentation following the company's 2005 results.
Anglo American's said last October it planned to sell its 79% stake in Highveld to concentrate more on mining, eliciting interest from a number of bidders. Anglo has so far declined to say how many firms bid for the diversified miner's stake in Highveld by a January deadline, but has confirmed the process to find a buyer has started.
Russian tycoon Mr Alisher Usmanov, via holding company Metalloinvest, and the South African arm of UK-based Kermas Group, which owns South African ferro-alloys producer Samancor Chrome, have confirmed submitting bids for Anglo's stake.
Highveld is South Africa's second-largest steel maker after Mittal SA and the world's top supplier of vanadium -- used in the production of special and alloy steels.
Mechels Southern Kuzbass Coal Company appoints new GD
Directors of Southern Kuzbass Coal Company, a subsidiary of Mechel OAO has appointed Mr Igor Khafizov to the position of General Director. Mr Igor Khafizov, 38 years old, replaces the former GD Mr Leonid Oparin, who was appointed to this position by the Board of Directors in October 2004.
"Igor Khafizov is a highly qualified professional in mining. Over the years of his successful work in Mechel he proved himself as a talented manager and an efficient production runner. Under his management, the Korshunov Mining Plant has been demonstrating excellent production and operating performance over the last three years. I am confident that Mr. Khafizov's considerable experience and expertise will have a positive impact on the business of our core mining asset," Mechel's CEO, Mr Vladimir Iorich, said.
Luxembourg hires JP Morgan for bid
Luxembourg has hired investment banker JP Morgan to advise it on the offer by Mittal Steel to buy Arcelor, in which the Grand Duchy owns a minority stake. A vocal opponent of Mittals bid to buy Luxembourg biggest private employer, the Luxembourg government said in a statement that it wanted an independent and professional opinion on the offer.
It also rejected criticism that the bill it had presented to parliament last week was an act of protectionism. Last week, it proposed a law to adopt the European Unions takeover directive. Legal specialists say the law preserves the right of Arcelors board to adopt defensive measures against Mittal without prior shareholder approval.
