February, 23 2006
TATA to build ferrochrome plant at Richardbay South Africa
TATA Steel plans to build a 120,000 tonne ferrochrome smelter in South Africa to be up and running by the end of 2007, taking advantage of projected growth in the sector. Mr Priyadarshan Roy, the head of ferro alloys and minerals at TATA Steel, said that the steel group would build a low-cost smelter for the alloy at Richards Bay, to spread its wings from its Indian base.
TATA's Richards Bay project is in an environmental clearance stage, and hearings have already taken place. A decision on the environmental suitability was expected soon. Mr Roy declined to say how much the project would cost. Once complete, the plant would boost TATA's total ferrochrome output to 300,000 tonnes per year, Roy said. Tata's current ferrochrome production including other partners in India is about 180,000 tonnes per year, about 50% of which is used locally and the rest exported.
"We are in an expansive mode, that's why we are putting up the 120,000 tonnes smelter in South Africa's Richards Bay... we are bullish," he told Reuters at an international chromium conference in Cape Town. "We think demand from stainless steel producers will go higher over the next 15 years or so, barring the temporary drops in prices such as we experienced last year."
SDF loan return likely by steel majors
It is reported that the law ministry in consultation with the finance ministry has made it clear that the levy collected from customers towards the Steel Development Fund is public money and may be retained by the Centre by depositing it in the public account of India. The steel ministry, backed by the law ministry, is preparing to serve recovery notices SAIL, TATA Steel and RINL for return of Rs 1,212.59 crore disbursed from the fund.
SDF was created in 1978 through a cess collected by the main producers SAIL, Tisco and RINL from consumers and was withdrawn in 1994 following the deregulation of steel prices in 1992. It was decided that the existing corpus, in the form of loans given to the producers, would be recycled to them, while interest on fresh loans would be charged at 8% per annum to be reviewed every year. The proceeds from interest were to be kept in the public account, on which a nominal rate of interest had to be paid.
The loan amounts payable by SAIL is Rs 204.16 crore while Tata Steel owes Rs 1,008.43 crore to the government. It is also reported that SAIL owes Rs 741.20 crore and TATA Steel owes Rs 373.42 crore towards interest.
RINL to clean up accumulated losses
Rashtriya Ispat Nigam Ltd has planned to clean up accumulated losses of Rs 4,900 crore this fiscal. RINL's CMD Mr Y Sivasagara Rao also told reporters that the company is expecting profits to be a little more than Rs 1,000 crore this fiscal as against Rs 2,000 crore last year owing to the continuous rise in raw material costs and slump in steel prices last year.
He said the company would spend around Rs 800-900 crore on the ongoing expansion plans in 2006-07.
Mr Rao said long product prices were expected to rise by Rs 500-1,000 per ton shortly because of the rise in the sponge iron and scrap prices.
Orissas 43 MoU need 83 million tonne iron ore every year
Orissas minister for steel and mines Mr Padmanabha Behera informed the Assembly on Tuesday that 83.36 million tonne iron ore would be required annually for 43 steel plants for which the State Government has signed MoUs. The Minister said the requirement of these plants for 25 years would be 2084 million tonne.
Members cutting across party lines demanded that the lease of iron ore mines of companies, which have not set up plants should be cancelled.
Behera informed the government was awaiting the report of Hooda Committee set up by the Centre for finalizing its mining policy. The government wanted to include the clause of value addition in its policy.
CIL to increase supply to small and medium industries
Public Sector Coal India Limited has taken initiative to increase the availability of coal to non core sector consumers including small and medium scale industries and have accordingly earmarked a quantity of 17 million tonnes coal during 2005-06. In addition, another 20 million tonnes of coal has been approved for sale through e-marketing during 2005-06 to increase availability of coal to non-core sector consumers.
Out of the coal earmarked for non-core sector consumers, 5 million tonnes is being distributed through State Government nominated undertakings and National Cooperative Consumers Federation to those small consumers, whose requirements is less than 500 tonnes per year at floor price which is 20% above the notified price.
The price payable by the small and medium linked industries is determined through e-marketing rate but such prices which were initially 76% more than the notified price have now come down to 40% above the notified price. The difference between notified price and e-marketing price has been gradually coming down with the e-marketing process getting stabilized.
Small and medium industries have been facing shortage of coal supply due to increase in demand by the core sector especially Power. This supply position has, however, now improved. This information was given by the Minister of Coal, Mr Shibu Soren in a written reply, in the Lok Sabha.
CII Chandigarh tells steel units to keep pace with time
A large number of small and medium units in Punjab, Haryana, Chandigarh, and Himachal Pradesh are engaged in steel business using mini electric arc furnaces, induction furnaces, steel forging units and steel rolling mills and most of the units are losing out on market share gradually as they are operating on traditional lines. Realizing the need of the hour, CII organized a platform Steel Mart-2006 for SMEs where steel majors across north India are participating to discuss the possibilities of modernization of the SMEs in the region.
Mr Ratan Jindal, Vice CMD of Jindal Stainless Ltd told media that this region has been the hub of steel production after partition and now has lost its edge as entrepreneurs did not upgrade their facilities over time. They need to focus on cost cutting and modernize the production said Mr Jindal adding and we organized this event to enlighten them about ways and means to improve quality to compete in domestic and international market.
Mr Ratan Jindal said the pattern of demand for steel had undergone a change and there was a huge demand for steel in architecture, innovative crockery and interior decoration. If small and medium entrepreneurs molded their products according to the need of consumers, they could retain high profit margins, he said. Most of the entrepreneurs from Punjab had a consensus that obsolete technology used in their units was the reason behind their laggard performance.
Chattisgarh Congress accuses government on BSP mines issue
Congress legislators staged a walkout from the Chhattisgarh assembly on Tuesday, accusing that the Bharatiya Janata Party government of harming the mining interests of the SAILs Bhilai steel plant.
Mr Bhupesh Baghel, deputy leader of the opposition in the assembly, led the walkout during question hour, alleging that the BJP government was trying to hand over iron ore stocks from the Rowghat mines in Bastar, reserved for the Bhilai plant, to a state based private firm.
"The government wants to push the BSP to closure by allotting the Bastar iron ore stocks to private companies. The BJP government is working against the interests of the BSP," the Congress MLAs alleged.
The ruling party members rejected the Congress party's charges.
NTPC scraps plans to set up power plant in Nagpur
NTPC Ltd has scrapped its plans to set up a power plant in Nagpur, Maharashtra and has instead decided on a 4,000 Mw project in Chhattisgarh. "The economic ranking of Mauda thermal power project in Nagpur does not compare favorably with NTPC's pit-head based integrated project in Raigarh district of Chhattisgarh with a capacity of 3,000-4,000 Mw," Power Minister Sushilkumar Shinde told Lok Sabha in a written reply.
The integrated power project in Chhattisgarh will have assured fuel availability, no burden on rail network and much lower coal transportation cost, he said, adding the Mauda project would have needed elaborate coal handling facilities. The Mauda project would neither be economically viable nor in the interest of Maharashtra as cost of power generated from the plant would be higher, he said.
India should explore Northern Pakistan steel market
India should explore Northern Pakistan steel market
Indian entrepreneurs of the steel industry have called for exploring the Pakistan market as Indian steel products are cheaper than the Pakistani range. ''There is a good potential to export products like pencil ingots, long products and hot and cold rolled coils to Pakistan,'' Mr RP Varshney ED of All India Induction Furnaces Association said while speaking on 'Cross Border Trade: The Competitive Positioning of Steel Industry in the North' at the CIIs Steel Mart 2006.
Mr Varshney pointed out that there was also considerable demand for steel pipes and tubes in Pakistan. The northern parts of Pakistan get imports steel and steel melting scrap via Karachi which is 1500 km away, making the prices in Pakistan Punjab costly. Steel exported through the Wagah border would be cheaper. While pointing out that steel making and rolling are done on a large scale in Punjab at Ludhiana and Mandi Gobindgarh he said the Wagah border was less than 300 km from these towns.
Rail freight corridor project likely to be approved
It is reported that the dedicated rail freight corridor is likely to get clearance from the Cabinet prior to the railway budget this week. The Rs 60,000 crore project, which the railway ministry has been highlighting as one of its prestigious projects to start in the next fiscal, is likely to be a part of the upcoming rail budget. Ministry officials are upbeat about the prospects of the project taking off by June this year.
The possibility of the project getting approval seems strong as last week the Cabinet had in-principle cleared the special purpose vehicle, which would raise funds for the project.
Mahindra puts conditions on Tractorul buy
It is reported that Mahindra & Mahindra is requiring Romanian state guarantees for the takeover of Tractorul Brasov. The conditions involve contributions by the state to the selling price of agricultural machines after the takeover to ensue a domestic market.
Romanian authorities allegedly did not accept these conditions and tried to persuade potential investors of the opportunities afforded by the "Farmer" program, which supports 45% of the cost to farmers in the acquisition of a tractor but is not exclusively to Tractorul.
However, representatives of the Authority for the Recovery of State Assets denied press reports and said "Mahindra & Mahindra did not demand any aid from the Romanian state for the sale of tractors. AVAS will try to find an agreement acceptable to both parties."
IISI reports crude steel production statistics for January 2006
IISI reported that the world crude steel production for the 61 countries reporting to the International Iron and Steel Institute was 94.7 million tons in January, an increase of 5.4% on January 2005. China is again the largest steel-producing country with production of 30.3 million tons in January. This is 20.7% higher than for the same month in 2005. India produced 3.6 million tons of crude steel, up 17.8% YOY. Total production in the Asia region was 48.7 million tons, 11.9% higher than for January 2005.
Crude steel production in Russia was 5.4 million tons for the month, almost identical to January 2005. Ukraine produced 3.3 million tons of crude steel, 1.2% lower than for the same month last year. Total production in the CIS was 9.5 million tons in January.
The EU-25 countries produced 15.8 million tons of crude steel, 5.8% lower than for the same month last year. Germany (3.4 million tons), Italy (2.5 million tons), and France (1.8 million tons) were the largest EU producers in January. However, all three countries recorded lower production than in January 2005. The United Kingdom (1.2 million tons) increased production by 1.5% YOY.
Brazil produced 2.6 million tons of crude steel in January. This is almost the same as the same month in 2005.
To download country wise figures please visit IISIs web site at
http://www.worldsteel.org
OYAK ends deal to sell Arcelor part of Erdemir
Turkey's OYAK, which manages the pension fund of the country's army, said it has terminated a deal to sell a stake in steelmaker Erdemir to France's Arcelor, saying it would purchase Erdemir on its own because of time restraints. OYAK said it has opted to purchase Erdemir alone because Turkey's Competition Board has not yet made a decision on whether to approve OYAK's deal with Arcelor, jeopardizing the March 6 deadline for the completion of Erdemir's takeover.
OYAK and Arcelor are considering whether to continue their talks and explore opportunities of cooperation in various realms after the purchase of Erdemir's shares is completed,' it said, adding that no agreement has been reached yet.
According to a report on CNN Turk, OYAK backed out of the deal amid concerns that the Competition Board would raise objections to its partnership with Arcelor, on the grounds that the deal would give the joint venture a dominant market position because of Arcelor's 40% stake in Turkish steel producer Borcelik.
Agence France-Presse reported that OYAK officials have also been unsettled by the hostile bid that Mittal Steel NV has launched for Arcelor, since it could leave OYAK with a different partner for Erdemir than originally intended.
Arcelor, which still owns a direct 5 pct stake in Erdemir, said it will 'continue to develop its position in the growing Turkish and regional steel markets, and aims to expand its cooperation with OYAK and Erdemir in this context.'
Arcelor confirms focus on growth in Turkey
Arcelor recognizes that without all regulatory consents for a joint acquisition obtained in due time, the Turkish pension fund Oyak will close alone the acquisition of a 49.29% equity stake of Erdemir. Arcelor will continue to develop its position in the growing Turkish and regional steel markets and aims to expand its cooperation with Oyak and Erdemir in this context.
Arcelor and Oyak signed an agreement on December 23, 2005, according to which Arcelor would acquire, subject to certain conditions including the approval by the Turkish Competition Board, 41% of Ataer Holding A.S., a wholly owned Oyak subsidiary, that has been founded to acquire a 49.29% equity stake of Erdemir (Eregli Demir ve Celik Fabrikalari A.S).
The transaction was conditional on Arcelor and Oyak obtaining the approval by the Turkish Competition Board which has postponed its decision. The approval from EU commission was rendered on Feb. 13, 2006.
Oyak has already obtained approval from the Turkish Competition Board for a stand-alone acquisition of the Erdemir stake. In case Oyak doesn't close the transaction by March 6, 2006, the privatization authority will cancel the sale to Oyak.
2006 iron ore price talks inconclusive for Chinese mills
China's Shanghai Baosteel Group Corp. has failed to reach an agreement with major iron ore suppliers on 2006 prices even after the third-round of term contract negotiations held recently, a Baosteel official said Wednesday. The Baosteel official said they haven't set a date for the next round of talks. New one year term contracts are due for renewal from April 1.
"The third-round of talks have finished. Both parties' points of view on pricing had huge differences," said the official who participated in the talks. "Miners insisted on raising price further while we insisted on cutting. We didn't get any chance to go over detailed figures because both parties are expecting opposite price directions," he added, speaking on condition of anonymity. "We certainly hope to settle everything before the new contract year begins, but the start of the new contract year shouldn't be regarded as a deadline for the conclusion of negotiations" said the Baosteel official.
With China's domestic steel prices slightly recovering over the past few weeks, Baosteel found it difficult to press for a price cut as rebounding prices may lead to larger steel output and higher demand for iron ore, the raw material for steel production, the official said. "Objectively speaking, the recent rebound in steel prices adds difficulties to our effort of persuading miners to abandon their hopes of a price hike," he said. But the recovery in prices could be limited as the overall surplus in the steel market continues, he said.
China's largest steel maker, Baosteel Group, has been representing other Chinese steelmakers in talks with major miners BHPB, Rio Tinto and CVRD since late last year to set 2006 iron ore prices. While it was decided before iron ore price negotiations began late last year that Baosteel would represent all Chinese steel makers in the talks, there have been unconfirmed reports that two mills in early January accepted spot contract prices of $44 a metric ton for iron ore concentrate in separate deals, up 10% from last year's average price. Although those were spot contract prices and not full year term contracts, it sent a signal to miners that Chinese steel makers are willing to accept further price hikes, an analyst said and this created problems for Baosteel in their term contract negotiations.
Anglo reports 32% increase in profit
Anglo American Plc, the world's second-biggest mining company reported net income for the six months to December 31 climbed by 32% to $1.68 billion from $1.28 billion a year earlier. Anglo's full-year net income rose 0.6 percent to $3.52 billion from $3.5 billion a year earlier. Anglo's annual profit before one-time items and goodwill amortization rose 38%.
The company announced that it will pay shareholders$1.5 billions. The capital return to shareholders includes a $500 million special dividend and a $1 billion share buyback.
CEO Mr Tony Trahar is seeking to shift focus to raw materials and metals needed by the booming economies of China and India and away from gold and platinum. The company took control of South African iron ore mines in 2003 and opened a zinc mine in Namibia last year. Anglo said today it will sell part of AngloGold Ashanti Ltd. in coming months. Anglo will also list paper unit Mondi in London as early as this year. Tongaat Hulett Group Ltd., controlled by Anglo, said it will spin off its aluminum-rolling business. The company also plans to sell some of the assets owned by U.K. asphalt business Tarmac Plc, which it bought for $1.94 billion in 1999.
The company plans to cut costs by as much as $500 million this year, following $730 million of reductions in 2005 up by 32% on the prior year and ahead of its target of $450 million Finance Director Mr Rene Medori said. We have been increasing our target each year. Containing cost is one of the group's main challenges for the year as the industry reels from price escalations over a range of inputs from tyres to fuel, to steel and contractors brought about by surging commodity prices in the global market, Mr Trahar added.
Arcelor Brazil president pledge to fight Mittal Steels bid
Top executives of Arcelor Brazil pledged to join the fight against an unsolicited bid by global leader Mittal Steel as Mr Jose Armando de Campos, president of Arcelor Brazil and senior executive vice president Mr Carlo Panunzi, said they were worried about Mittal's bid. They were in Paris and returning to Brazil after a management meeting in Luxembourg. The two executives declined to say what legal defenses they would have to the bid but they were reviewing that with lawyers.
"We are concerned about the fact that this value creation could be a risk within a larger group as it is proposed today. Simply because of the value of the assets that are lying on the other side and in the competitors' hands," Mr Panunzi said. "We see in this configuration the risk that finally somebody is going to take the cash out of one side and put it in the other because there are gaps in capital expenditure to eliminate," he said.
Arcelor Brazil represented a third of the Arcelor's EBITDA. "Brazil is at a new growth phase and steel consumption is seen accelerating to 8 to10% in the next 10 years from 5.3% over the past five years," De Campos said. Arcelor Brazil will expand its production to 20 million tonnes by 2010 from some 10 million tonnes.
Chinese steel mills set to raise prices by 10%
It is reported in a Chinese daily that steel mills are steeling themselves for a 10% rise in product prices after experiencing a nine-month deflationary spiral. But analysts say steelmakers do not have much room to raise their prices very high, like 20% or more, this year because of the large investments in the past which had already contributed to a considerable overhang of excess capacity.
The country's second and third-biggest steelmakers, Angang Newsteel Co and Wuhan Iron & Steel Co, said last week they would raise product prices by some 10% from March 1. Industry leader Baoshan Iron & Steel Co is expected to announce similar price rises also. Baoshan Steel's prices are usually considered the benchmark in the domestic market.
Steel prices in China have fallen some one-third by the end of last year amid a nationwide glut, figures from the China Iron and Steel Association showed.
MMK net income up by 10.84% in 2005
Magnitogorsk Iron & Steel Works announced 29.819 billion rubles last year, representing a decrease of 10.84% from 33.446 billion rubles in 2004, MMK's press service reports.
According to preliminary data, MMK's revenue over the year equaled 147.385 billion rubles, pretax profit totaled 39.624 billion rubles.
MMK is the largest metallurgical works in Russia. Last year the works increased the steel output by 0.7% to reach 11.38 million tones.
CISIA warns Chinese steel mills against individual ore price talks
The China Iron & Steel Industry Association said that all Chinese steel makers except Shanghai Baosteel Group Co have been barred from holding individual iron ore price negotiations for 2006 term contracts with international miners. Those found violating the association's directive will be banned from importing iron ore, Mr Wang Liqun, the association's vice secretary general, told Dow Jones Newswires. Mr Wang said the association has the backing of the government to enforce discipline in the industry.
"We find miners are taking advantage of such violations to gain an upper hand in iron ore price negotiations with Baosteel, while this is not good for the Chinese party," said Mr Wang. "On behalf of the government, the association will remove violators from the list of iron ore importers," he added.
It is reported that National Development and Reform Commission, agreed last week that it is a key time for iron ore price negotiations when individual members of the association should ensure discipline. "All Chinese steel makers and trading firms must be well self-regulated and follow related regulations, without touching base with the three big iron ore miners or signing long-term agreements with miners in cash prices," a document stipulated.
Volzhsky pipe mill launches new equipment for rolling mill
The Volzhsky Pipe Mill VTZ, a division of the Pipe Metallurgical Company TMK, launched a new WAMS MultiSurfacer for cladding rolls for the continuous mill in its No 3 pipe rolling division. The MultiSurfacer is expected to achieve peak capacity this year and will clad more than 20 rolls per month if it is operated continuously.
The new equipment, made by UK based Welding Alloys, will increase the durability of rolls, which will reduce costs and improve quality, the company said in a press release. Trials have shown that the equipment will increase the durability of rolls by more than two-fold, while reducing wear by two-thirds, to just 1 mm from the allowable 3 mm.
China Steel orders electrical steel line to SMS Demag
China Steel Corporation, Kaohsiung, Taiwan, has awarded SMS Demag, Germany, a contract for the supply of an integrated solution comprising the mechanical equipment and automation system for a new electrical steel annealing and coating line. Production of the first coil is scheduled for June 2007.
Starting in 2007, China Steel Corporation will use its new annealing and coating line to produce high grade silicon steel strip ranging in finish gauges from 0.3 to 0.7 mm and in widths from 600 to 1,300 mm. The flexible line was designed specifically for CSC's process route for the production of non grain oriented electrical steel. At a maximum process speed of 130 m/min, the line's annual capacity is rated for the production of around 200,000 tons. This investment will boost China Steel Corporation's total annual production capacity to 800,000 tons.
The scope of supply will exclusively comprise components designed to the state of the art which specifically satisfy the requirements of electrical steel production. The line will thus guarantee the production of high-quality end products while featuring a high degree of environmental compatibility and economy. An essential part of the supply will be SMS Demag's integrated electrical equipment and automation system. Starting with the design of the power supply system and extending to the complete drive units including Level 1 and HMI automation system for the complete line as well as Level 2 for the annealing and coating line and the coil store of the line located next to it.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group.
Northwest Pipe reports record results for 2005
Northwest Pipe Company reported the highest annual sales and earnings in its history. Sales in 2005 were $329 million, compared to $292 million in 2004, and annual net income was $13.4 million compared to $12.4 million in 2004. In the fourth quarter of 2005, sales were $77.1 million, compared to $80.3 million in 2004, and net income was $3.4 million compared to $4.2 million last year.
In addition, record annual sales and profits were reported for both the Water Transmission and Fabricated Products Groups. Sales in the Water Transmission Group were a record total of $232.1 million, compared to $177.8 million last year. Sales in the Fabricated Products Group were $5.0 million in the fourth quarter of 2005, compared to $3.4 million for the fourth quarter last year. The Tubular Products Group's sales were $17.7 million in the fourth quarter of 2005, compared to $19.3 million reported for the same period last year.
Mr Brian W Dunham, president and CEO said "The Water Transmission Group performed solidly throughout the year. The decreases in Tubular Products revenues and profits were expected, as the record year experienced in 2004 was not sustainable in 2005. "
Northwest Pipe Company manufactures welded steel pipe in three business segments. Its Water Transmission Group is a leading supplier of large-diameter, high-pressure steel pipe products that are used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon, and has nine manufacturing facilities across the United States and Mexico.
Inco's takeover offer for Falconbridge extended for 4 months
Competition authorities in the United States and Europe have asked for more time to review Inco Ltd.'s friendly takeover of Falconbridge Ltd., forcing Inco to extend its $12.5 billion offer for the third time and raising questions about whether watchdogs will approve the deal. Toronto-based Inco announced its friendly takeover bid for Falconbridge on October 11 and originally the offer was to close on December 23. Yesterday marked the third extension, from February. 28 to June 30.
Despite the repeated extensions Incos CEO Mr Scott Hand insisted the lengthy review process reflected the size and complexity of the deal rather than any potential antitrust concerns. "Let me stress that to date, nothing has been raised in these regulatory review processes that gives us cause for concern," Mr. Hand said on a conference call. "These processes take time, particularly given the size of this transaction."
Krgasenergo a new Russian gas JV to dominate in Ukraine
It is rumored that Russian gas giant Gzproms RosUkrEnergo would deliver the mix of Russian and Turkmen gas to Ukraine's border, then would grab a large share of Ukraine's internal distribution market away from Naftohaz Ukrainy through UkrGazEnergo a 50:50 JV between Naftohaz Ukrainy and RosUkrEnergo to market gas within Ukraine.
UkrGazEnergo is slated to become the exclusive supplier to Ukraine's industry, with the lion's share of the gas earmarked for the steel and chemical sectors. Through this joint venture, RosUkrEnergo takes away half of Naftohaz Ukrainy's business in these most lucrative sectors of Ukraine's gas market. Naftohaz remains the supplier of "communal gas" to households and municipal utilities a market where Naftohaz can at best break even financially, due to the low solvency of many customers.
UkrGazEnergo would be jointly headed by Gazprom vice chairman Mr Aleksandr Ryazanov, who is also a member of RosUkrEnergo's board; and Naftohaz Ukrainy vice chairman Mr Ihor Voronin, who is widely believed to have close links with RosUkrEnergo, and was listed as a member of the latter's board in 2004.
Changes in Anglo American South Africas top management
Mr Lazarus Zim CEO of Anglo American South Africa has indicated a desire to become involved in the future empowerment of the mining sector and specifically with the BEE structures being developed for Anglo Platinum. Given his extensive past experience in Africa, he also intends to establish his own Pan African investment vehicle. When the proposals for a further Platinum empowerment transaction have been developed, it is envisaged that Lazarus will play a key role in creating a broad based Platinum empowerment consortium alongside Anglo Platinum's existing BEE partners.
In support of these intentions, AASA and Mr Lazarus have agreed that he should relinquish his executive responsibilities in the Group and his directorship of Anglo Platinum. However he will maintain a strong involvement with the Group. He will be Chairman of Kumba Iron Ore, a member of the AASA board and Chairman of its Transformation Committee and a board member of AngloGold Ashanti and Mondi South Africa. In addition, Lazarus will work closely with Anglo American to develop further business opportunities in other parts of Africa and he will also carry out various consulting duties for the group. Anglo will continue to support him in his role as President of the Chamber of Mines.
Mr Philip Baum is appointed Acting CEO of AASA, as well as continuing as Chairman of the Ferrous Metals and Industries division. Mr Philip will work closely with Lazarus and the Transformation Committee on further transformation, employment equity, BEE procurement and support for small and medium enterprises.
Mr Tony Trahar CEO of Anglo American plc has decided that, in view of his increasing global responsibilities, the time is right for him to stand down as Chairman of AASA and that Mr Fred Phaswana, a non executive director of Anglo American plc and Chairman of Transnet, has agreed to serve in this role and will continue as a member of the Transformation Committee.
These changes take effect on 1 May 2006.
Iskenderum to get new surface inspection system
Siemens Industrial Solutions and Services (I&S) is to deliver a Parsytec surface inspection system for the hot mill in the Iskenderun Iron and Steel Works of Erdemir in Turkey. Siemens itself has received the order for the complete electrical and automation equipment of this hot mill and decided to include the Parsytec system in its scope of supply.
After Parsytec delivered a first hot mill inspection system to the Eregli works of Erdemir in 2004, this is now the second Parsytec hot mill system to be applied by this steel producer.
Iskenderum Iron and Steel Works belong to Erdemir, which is the largest iron and steel company in Turkey.
Brazilian Confab's 2005 profits soar
Brazilian steel tube maker Confab's 2005 net profits totaled 277 million reais ($129 million), up from 18 million reais in 2004, the company said in a report. Net revenues for 2005 more than doubled to 1.78 billion reais compared to 888 million reais the year before. Confab's production in 2005 increased by 25% to 383,200 tonnes compared to 306,900 tonnes in the previous year, the steel tube maker said. The 2005 results reflect increased sales and a better mix of products and prices.
Investments in 2005 came in at 47mn reais "mainly to expand and modernize our facilities, and also to increase the quality of our products for the offshore market," the report added.
"For 2006 the outlook is favorable in terms of sales and growth, based on expansion plans for gas supply plus oil production and exploration," according to Confab.
S Paulo-based Confab is part of the Luxembourg-based Tenaris.
Peabody Energy one of America's most admired Companies
For the third year in a row, Peabody Energy has been named to Fortune's Most Admired Companies list for 2006. The company was placed second in the Mining and Crude Oil Production sector, elevating three places from 2005. Peabody was placed first or second in its sector in every category, including innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment and quality of products & services.
"The 8,300-person Peabody team deserves this recognition, as the company set records for safety, financial performance and shareholder returns in 2005 and continues to outperform the industry," said Peabody President and CEO Mr Gregory H Boyce. "I am particularly proud that Peabody placed first in its sector for social responsibility, recognizing the company's strong focus on all dimensions of sustainable development."
Peabody Energy is the world's largest private sector coal company, with 2005 sales of 240 million tons of coal and $4.6 billion in revenues. Its coal products fuel approximately 10% of all US and 3 % of worldwide electricity.
Grupo Simec announces preliminary results for 2005
Grupo Simec SA de CV announced its unaudited results of operations for the year ended December 31, 2005. Net sales increased 122% to Ps. 13,064 million in 2005 compared to Ps. 5,872 million in 2004, primarily due to the inclusion for the full year 2005 of net sales generated by the plants in Apizaco and Cholula acquired in August 2004, of Ps. 2,732 million as well as Ps. 6,328 million generated by the newly acquired plants of PAV Republic Inc in July 2005.
Simec recorded net income of Ps. 1,326 million in 2005 versus net income of Ps. 1,453 million in 2004.
Simec sold 1,722,315 metric tons of basic steel products during 2005 including 413,925 metric tons produced by the newly acquired plants in Apizaco and Cholula and 674,957 metric tons produced by the newly acquired plants of Republic, an increase of 123% as compared to 773,297 metric tons in 2004.
Simec is a mini-mill steel producer in Mexico and manufactures a broad range of non-flat structural steel products.
Morgan to modernize Cascade Steels rod outlet
Morgan Construction Co. has earned a contract from Cascade Steel Rolling Mills of McMinnville to upgrade the mini mills single strand rod outlet with the installation of high speed pinch roll and laying head assemblies. The installation will begin in August.
Mr Neil Gow, sales manager of Morgan's Rolling Mill division, explained that a key to Morgans selection for the project is its ability to supply Cascade with superior and proven technology, specifically Morgans successful laying head with 120 m/s capability for 5.5 mm wire rod. The product range that will be produced using this new equipment will be wire rod in sizes 5.5 mm to 20 mm and rebar in sizes No 3 through No6.
Morgan supplied a reform tub assembly to Cascade, with ring distributor and coil plate in 2002.
O'Neal Steel buys Colorado company
Birmingham based O'Neal Steel Inc has acquired the stock of Timberline Steel for an undisclosed amount from the McCallin family and marks O'Neal's fifth acquisition since 1997. O'Neal now has 68 stocking locations. Commerce Colo based Timberline will operate as a wholly owned subsidiary of O'Neal Steel, and Mr Dan McCallin will remain president.
Timberline stocks and processes carbon steel plate, bars, beams, tubing, pipe, expanded metal and bar grating from three facilities in Colorado and one in Farmington NM.
"Timberline is an excellent regional service center organization with a rich history, strong leadership, excellent customer base, and proven track record," said O'Neal president and CEO Mr Bill Jones "The addition of Timberline expands our full-line capacity to service customer in the Rocky Mountain region."
According to the company, O'Neal Steel is the largest family owned, full line metals service center in the United States. Companies under the O'Neal umbrella include Metalwest in Brighton, Colo, Aerodyne Alloys in Windsor, Conn., Leeco Steel in Chicago, and TW Metals in Exton, Pa. O'Neal Steel reported 2004 revenue of $1.3 billion.
CONSOL Energy Signs Sales Agreement for Sales to Southeast
CONSOL Energy Inc has signed a multi year, multi million ton coal sales agreements, through several subsidiaries, with Duke Power, for delivery of high-Btu bituminous coal to generating plants in North Carolina. The shipments of coal will be by rail beginning in 2007.
Under the agreement, CONSOL Energy will deliver Pittsburgh 8 Seam coal from several mines in Northern West Virginia and Southwestern Pennsylvania to Duke Power plants that have completed the installation of sulfur dioxide emission "scrubbers." These scrubbers give Duke Power the flexibility to purchase a wider variety of competitively-priced coal types while also ensuring compliance with the strict emissions standards required by North Carolina's "Clean Smokestacks" legislation that was enacted in 2002.
"This is an important contract," said Mr J Brett Harvey, president and chief executive officer, "not because of its size, but because it is a further indication that demand for our Northern Appalachia coal will grow as power generators in the United States invest in scrubber technologies.
Canadian stevedore firm signs into Chicago port
North America Stevedoring, a division of Quebec Stevedoring, has signed a long-term lease with the Chicagos port district to establish docking facilities at Iroquois Landing, at 95th Street and Lake Michigan. Quebec Stevedoring operates 17 different facilities on the St. Lawrence Seaway and the Great Lakes.
North America Stevedoring will handle a range of commodities, including steel, iron, ferro alloys, pig iron, coal and coke, as well as cargo and container shipping. The company is upgrading its port facility, which has 3,200 linear feet of berths, 190 acres of outside storage and 210,000 square feet of warehouse space.
Macarthur Coal takes the long view on longwall mining in 2010
Macarthur Coal has announced that its is preparing to begin detailed core drilling at its prospective underground mine adjacent to the Moorvale open cut in Queensland. The company said this drilling would support a pre-feasibility study to develop underground mining of the high quality coal resources in the Leichhardt seam, inland from Mackay. The company said entry would be from the open cut highwall.
The latest progress is in line with plans that were disclosed by company CEO Mr Ken Talbot late last year. With a choice of shallow underground coal mining beneath 100m to 250m of cover, or deep mining beneath 250m. Mr Talbot indicated that Macarthur Coal would not be going deep. Mr Talbot said that subject to the underground conditions, Macarthur Coal would be longwall mining at Moorvale by 2010 with a reasonable expectation of a 2010 to 2015 longwall mining phase.
Iran to reach 29 million tons steel capacity
Irans steel production capacity may reach 29 million tons once the Comprehensive Steel Plan is fully implemented, executive director of the National Iranian Steel Company Mohammad Rahim Rasti told the Persian service of ISNA
The plan is about in-depth studies to identify the potentials of this industry as well as mapping strategies for capacity increase, he said, adding that the projected figure can very much be realized within methodical execution of Fourth Socio-economic and Cultural Development Plan.
Irans current steel production stands at 13 million tons per annum while private sectors contribution is a small percentage of it. Nevertheless, the comprehensive plan is aimed at increasing the sectors share to six million tons out of the projected 29.
