February, 26 2006
Chiria iron ore mines to stay with SAIL
Indian steel minister Mr Ram Vilas Paswan made it clear during a press conference that SAIL would retain the leases to the iron ore mines in Chiria. "Its strategic location would be advantageous for SAIL plants. SAIL's financial and managerial capabilities and availability of vast natural resources like mines, collieries and large infrastructural facilities shall be made available to the undertaking of IISCO and there would be a greater synergy for exploiting the resources to the optimal level," Mr Paswan said.
It is known that many private players including Mittal Steel are eyeing iron ore reserves in Chiria in West Singhbhum district of Jharkhand, known to be the second largest in the world with an estimated reserve of over 1,000 million tonnes with an iron content of over 62% and the state government is inclined to allot it to private players to proceed with the MoUs
SAIL Chairman Mr VS Jain said that both the mining tribunal and the high court had granted a stay on the state governments attempt to takeover the mines. A recent meeting with state government officials had revealed that Jharkhand was positively inclined to renewing the leases, he added.
The renewal of three of the ten mining leases in Chiria and Gua are under dispute and the Ranchi High Court is looking into the matter.
POSCO India crosses investment of $50 million
It is reported that POSCO India has so far made a capital investment of $51.3 million for setting up of a steel plant at Paradip at an estimated cost of 12 billion US Dollar.
POSCO India has applied for prospecting license for three areas in last September while the proclamation of the government land amounting to 3,556 acres was announced in November last. The notification for the private land, for the steel plant, is expected to be published soon.
IISCO-SAIL merger to unlock value for shareholders
Indian government said that amalgamation of IISCO with SAIL is in line with the global trend to achieve size, scale, integration and greater financial strength and flexibility and is in the interest of maximizing value for shareholders. The merged entity is likely to achieve higher long term financial returns than could be achieved by the companies individually.
"The amalgamation would result in consolidation of the business of manufacture of steel and allied products in one entity and would be a step in the direction to enable SAIL to become one of the market leaders and be in the best interest of IISCO, SAIL and their respective shareholders," Steel Minister Mr Ram Vilas Paswan told reporters.
Both the entities believe that manufacturing, financial, managerial, technical resources, personnel, capabilities, skills, expertise and their respective technological prowess would lead to synergistic benefits, increased global competitive strength, cost reduction and efficiencies, productivity gains and logistical advantages, thereby significantly contributing to future growth.
While the final approval for the merger came earlier this month, the amalgamation would be effective from April 1 for accounting purposes Mr Paswan said. Post merger IISCO would be called IISCO Steel Plant ISP.
PSL commissions 2nd large dia pipe plant at Vizag
PSL Limited announced the commissioning of its second Pipe Mill at Vizag. The second pipe mill will enable PSL to raise its pipe making capacity of its Vizag Plant to 150,000 MT per annum from a level of 75,000 MT per annum. The new pipe mill will be making large diameter pipes of thickness up to maximum 20mm in various grades up to API X 70. This will enable PSL Ltd to service the emerging requirement both of oil & gas and water transport segments
With the commissioning of this 11th pipe mill, PSLs capacity to manufacture pipe has reached 1.1 million tonnes, with mills located at Vizag, Chennai, Kandla and Mahudi near Ahmedabad.
Mr Ashok Punj MD of PSL said, Our new pipeline construction shall foresee tremendous developments in the Eastern region of the country during the year 2006, as the companies operating in the oil & gas sector gear up to transport huge quantities of gas which is expected to go into production in 2007. The off take of this gas production will require new pipelines which will be installed for evacuating the same, to north and west India, where power sector and other consumption centers are eagerly awaiting delivery of this gas.
TATA Steel surpasses crude steel production in 2004-05
It is reported that TATA Steel has surpassed its previous best crude steel production of 4.22million during fiscal 2004 by crossing 4.22 million tonnes mark on February 24th 2006. Earlier this month, the company has also crossed its best hot metal production of 4.47 million tonnes achieved in 2004. A company release attributed this achievement to the increased availability of hot metal from its revamped G blast furnace.
Tata Steel has set a target of 5 MT steel production during the current year.
The company said that it has commissioned all major facilities planned under the 1 million tonnes expansion program and has begun the next phase of expansion to 6.8 million tonnes at Jamshedpur and the construction of the new 2 million tonnes sinter plant and the 2.5 million tonnes BF is on schedule.
Indian Steel minister assures of no retrenchment at IISCO
Indian Minister for Steel, Mr Ram Vilas Paswan assured the workers of IISCO that they would not be retrenched subsequent to its merger with SAIL. "Though the number of employees in the age group of 50 years and above is very high in IISCO, they will not be retrenched. New blood will be inducted by substitution," Mr Paswan said.
He, however, said that voluntary retirement schemes would be introduced from time to time and employees interested in the scheme could opt for the same.
IISCO has a 15,000 strong workforce and recently been merged with SAIL.
Ennore port finalizes bids for coal & iron ore terminals
It is reported that the financial bids for the coal terminal at Ennore port were opened earlier this month and the contract would be awarded to a Chennai based firm, whose offer of 52.524% revenue share was the highest. The operator would be required to invest Rs. 300 crore in the terminal. The coal terminal would have the capacity to handle eight million tonnes of coal annually
Another company that had offered a revenue share of 51.6% has bagged the BOT contract for the 12 million tome iron ore terminal. The proposed investment would be Rs. 350 crore.
Record handling of coal at NMPTs new berth
Mr S Gopalkrishna Port Traffic Manager of New Mangalore Port Trust has announced that NMPT created a record of handling 19,390 tonnes of coal in a day while discharging MV Dubai Ambassador yesterday and surpassed the previous record of 17,828 metric tonnes set last year.
The discharge was done at the newly constructed multi purpose general cargo berth having 12.5meters draft
NMPT has so far handled 0.4 million tonnes of coal during the current fiscal.
Court approves merger of 3 companies with Mahindra Ugine
Mahindra Ugine Steel Company Ltd announced that the Bombay High Court has approved the merger of Pranay Sheetmetal Stampings Ltd, Console Estate & Investments Ltd and Valueline Hotels & Resorts Ltd with the company.
The shareholders at the extra ordinary general meeting had already unanimously approved the scheme of amalgamation.
Mahindra Ugine has a substantial market share in the high grade steel manufacturing segment.
JPMorgan predict 7.5% increase in iron ore prices in 2006
Prices for iron ore may rise 7.5% this year as Chinese demand growth slows and miners increase supply, JPMorgan Chase & Co, which would be almost a 10th of last year's gain of 71.5%. Global supplies of iron ore will rise 8.8% this year, outpacing demand growth of 6.2%, JPMorgan said. Chinese monthly iron ore import growth fell below 30% in the second half of 2005, compared with an average of 41% in 2004, JPMorgan said.
Higher demand for iron ore has spurred the three biggest producers to increase production, the bank said. Iron ore supplies from BHPB, Rio Tinto and CVRD will increase by as much as 15% between 2005 and 2007, the report said. "We feel that we are past the chronic tightness witnessed in 2004 and 2005 and are now entering the early stages of an easing in the iron ore market," the analysts wrote.
JPMorgan's estimate is the lowest of four made by investment banks in the past two months. ING estimated prices would gain 20% on January 24, while Merrill Lynch & Co raised its forecast to 18% on February7 and Credit Suisse expected prices to rise 15% on January 23.
All 65 workers presumed dead in Mexican coal mine blast
The 65 men trapped by a Mexican coal mine explosion six days ago could not have survived their ordeal underground, mine owners Grupo Mexico said on Saturday. It said that while no bodies had been found, tests showed there was almost no oxygen left inside the shafts and tunnels and no hope of finding survivors from the explosion last Sunday. "We are going to move on to the hard task of the physical recovery of our miners so the families can start their mourning," said Mr Xavier Garcia, a senior executive at Grupo Mexico.
Rescue teams spent several days digging desperately at huge piles of collapsed rock and dirt inside the mine's tunnels, hoping to find a way through to the trapped men. The search was suspended on Friday night because high levels of methane gas threatened to spark a new explosion like the one that ripped through the mine last Sunday morning.
PSMC Privatization - Issues about sell off to be finalized
Pakistans Privatization Commission has convened an emergency meeting for the finalization of outstanding issues pertaining to the privatization of Pakistan Steel Mills Corporation on February 27. The Cabinet Committee on Privatization at its previous meeting had fixed March 10 as bidding date for the privatization of PSMC and had directed the Privatization Commission to finalize all the remaining issues well before the end of February.
The issues that are still to be resolved include preparation of sale deed of transfer of non core land and assets to the government of Pakistan, completion of mutation of the non core land of PSMC, settlement of issues with the PSMC staff union and officers association relating to introduction of Voluntary Separation Scheme, preparation of Services Agreement with Al Tuwairqi Group and settlement of tax issues with the CBR and clearance of Share Purchase Agreement.
The results of the meeting to be held on February 27 would be made available to the pre qualified bidders for the PSMC in the data room on February 28. If the meeting succeeded in finalizing the remaining issues at the meeting, then the bidding date of March 10 would be announced, otherwise the issues would be settled in the first week of March and the bidding date would also be extended for a week or two, an official said.
Acerinox net hit by falling stainless steel prices in 2005
Acerinox SA said net profit dropped to Euro 154 million in the full year to December from Euro 313 million a year earlier, hit by falling stainless steel prices and a Euro 41.6 million write down in the fourth quarter against the falling value of the group's nickel stocks.
Acerinox said revenues grew to Euro 4.213 billion from Euro 4.035 billion
Looking ahead, the company said it sees an upward trend in demand reflected in price increases for February, March and April.
Mittal Steel's experience of Eastern Europe takeovers to help
Mittal Steel's experience in turning around former state owned steel plants in Eastern Europe could be invaluable if the company wins its hostile takeover battle for Arcelor, according to Mr Aditya Mittal CFO of Mittal Steel.
Mr Aditya Mittal told the newspaper the differences between previous deals and the Arcelor were not that great. When Mittal Steel bought plants in Romania, Czech Republic, Poland and Ukraine although the governments had been in favor of the transactions the employees were not. Mr Aditya Mittal said that in many cases workers in these units were worried about our intentions and about their jobs but in all cases we have had the chance to explain our position and our intentions and that we are friendly.
Mittal Steel's takeovers in the past six years have been friendly transactions and the bid for Arcelor is the first time Mittal Steel has been involved in an unsolicited bid.
Rio Tinto CEO to leave mining industry by 2007 end
Mr Leigh Clifford CEO of mining giant Rio Tinto is reported to have said that he intends to do something else outside the mining industry when his contract at Rio expires at the end of next year. Mr Clifford said it was not his intention to stay in the mining industry. Mr Clifford, who is based in London, said it was his intention to return to Australia at the end of 2007.
Mr Clifford, a mining engineer, has been CEO of Rio since 2000. He has been a director of Rio Tinto plc since 1994 and Rio Tinto Ltd since 1995. He has held various roles in Rio's coal and metalliferous operations since joining the group in 1970.
Shagang finished steel production up by 66% in January
It is reported that during January 2006 Jiangsu Shagang produced pig iron of 730,000 tonnes up by 28.52% from the same period of last year, steel of 950,000 tonnes up by 42.93% and finished steel of 890,000 tons up by 66.31%.
It is also reported that No12 and 6 BFs have already been launched during the month and No.7 and 8 BFs will start operation in February. Besides, a 3 billion yuan medium and heavy plate project has entered trial run stage.
Shandong Province aims at 150 million tonne coal in 2006
Eastern China's Shandong Province aims to produce about 150 million tonnes of coal in 2006, almost 18 million tonnes more than the production in 2005. It reported 132 million tonnes of coal output in 2005, a little less than the figure for 2004 due to the country's economic macro-control policy, according to the Administration.
Shandong Province's coal production has maintained steady growth and posted a record production of 145 million tonnes in 2003, according to Shandong Provincial Coal Industry Administration. Shandong turned out 660 million tonnes of coal in the past five years, approximate 220 million tonnes more than in the previous five years.
SA facing shortage of trained welders
Mr Jim Guild ED of the Southern African Institute of Welding has estimated the shortage of welders as 12,000 although the number could not be quantified. "What is certain is that there is a shortage of the type of welding and related skills required for the industries that is growing," said Mr Guild. Faced with a shortage of skilled welders, companies are looking to import artisans. In 2004 Kumba Resources brought welders in from Germany to upgrade furnaces because it could not find people with the necessary skills in SA.
Mr Guild said that not only were skills lacking, but the region was also about 10 years behind the modern welding technology and equipment available today. While some sectors such as the vehicle industry were investing in up-to-date technology, others such as parts of the mining sector had fallen far behind, he said.
An initiative aimed at addressing the shortage of welders in southern Africa will be launched next month when SA hosts an international welding conference.
The Southern African Institute of Welding, which is leading the initiative, would look to assist similar organizations elsewhere in Africa to introduce International Institute of Welding training programs as part of the initiative. The institute is the only agency in Africa authorized to license other bodies to implement International Institute of Welding training programs.
