February, 04 2006
Iron ore exports may be canalized via MMTC
It is reported that the ministry of mines has made a proposal that export of iron ore be canalized through MMTC and may require a certification from the India Bureau of Mines to the high powered committee on mining policy set up under Planning Commission member Mr Anwarul Hoda.
The ministry has also made a case for a reasonable export tax linked to market prices in order to bring revenue to state governments which own minerals. It has also proposed that the government can alternatively switch to ad valorem rates of royalty rather than specific rates on tonnage basis. An ad valorem rate ensures that the gains made by exporters during times of increase in international prices translate into revenue gains for the government.
Making a strong case for evolving iron ore mining as a standalone industry, the ministry said efforts should be to evolve a proper commodity market for iron ore. This will serve the small and medium enterprise users who can put up sponge & pig iron industries on a standalone basis, besides fetching the best price for iron ore.
Labeling captive mines as nothing more than subsidies by the exchequer to the steel makers, the ministry has pointed out that captive mines should be under the strict regulation of IBM in order to ensure optimal mining. It has also made a case for strict penal clauses for sub-optimal mining by captive miners. The mines ministry is opposed to this captive mining since it leads to subsidization of the industry in the form of difference between the cost of extraction and market price of ore. It has particularly objected to state governments move allowing captive miners to export since mines are given to them to make steel and exporting for profit instead of adding value.
POSCO studying environmental impact of port in Paradip
POSCO is undertaking studies to ascertain the environmental impact of its proposed captive port near Paradip in Orissa. "It is necessary to understand the impact of the port, and the company wants to design a port that will have the least impact on the local environment. It wants a nature-friendly port," sources said.
The proposed port will have two berths one to handle ships for raw materials of up to 100,000 tonnes, and the second to handle ships of 20,000 tonne for finished steel products. It will be located about 10 km from Paradip
PSL completes HPCLs Mundra Delhi pipeline contract
PSL Ltd said that it has executed the Rs 203 crore worth of pipe manufacturing contract for Mundhra-Delhi Pipeline project awarded to it by Hindustan Petroleum Corporation Ltd HPCL three months ahead of contracted date of April 2006
PSL had bagged the contract from HPCL in June 2005 which involved manufacturing and supply of 736 km pipes, it said.
Haldia handles record cargo in January
A spokesperson from the Kolkata Port Trust has said that the Haldia Dock Complex has handled an all time record cargo of 3.75 million tonnes in January, 2006. This figure has surpassed the previous record of 3.63 million tonnes achieved during the month of November, 2005.
It was further stated that during April, 2005 to January, 2006, Haldia Dock Complex handled a record 34.85 million tonnes of cargo, registering a growth of 17.34% over 29.70 million tonnes of cargo handled during the corresponding period of 2004-05. The Dock Complex also handled 1970 vessels from April, 2005 to January, 2006 registering a growth of 14.9% over 1,714 vessels handled during the corresponding period of 2004-2005.
Some of the major components which attributed to the growth of traffic are iron ore, coking coal, crude oil and other commodities.
BJP leader & NGO speak in favor of Clemenceau
A legislator of Gujarat's ruling Bharatiya Janata Party BJP and an NGO Friday demanded that the decommissioned French warship Clemenceau should be allowed into Indian waters so that it could be scrapped in the state. Describing the protest by Greenpeace against the breaking of the ship as a "false agenda" by environmentalists, legislator
Mr Sunil Oza said "Our companies have assured the government that they have the capacity to dispose of the asbestos the ship is carrying. "I have written a letter to CM Mr Narendra Modi requesting him to put the views of Gujarat and Alang ship-breaking yard to the Supreme Court committee that is hearing the matter" he said. Mr Oza said in his letter that dealing with asbestos is nothing new for the ship-breaking industry and all ships carry the hazardous material.
Dr Yashodar Bhatt of Bhavnagar based NGO Samvardhan Trust said that no laborer had died at Alang due to environmental problems. "The Supreme Court monitoring committee has listened to the views of Greenpeace. They should also listen to us. We also want to become a party in the matter," said Dr Bhatt. He claimed the propaganda against the Clemenceau was the result of efforts of those who wished the Alang yard to close down.
Dr Bhatt and alleged that these so called environmentalists have no objection to the ships going to Bangladesh and other developing countries for dismantling. ''It is a much bigger conspiracy than what appears on the surface. These groups are bent on finishing the Indian economy because it is emerging as an economic super power,'' they said.
The trust has decided to convene an international seminar on 'Pros and Cons of Ship-building Industry' in Ahmedabad on February 17 and 18. The Supreme Court has banned the entry of the ship into Indian waters till it decides on the issue February 13.
EU welcomes repeal of Byrd Amendment
On February 1 2006 the United States Congress passed the Deficit Reduction Act 2005, which among other provisions repeals the Continued Dumping and Subsidy Offset Act, more commonly known as the Byrd Amendment. The Deficit Reduction Act will enter into force once the President signs it into law. The European Commission welcomes the move
However, the European Commission regrets that repeal of the Byrd Amendment will not be effective immediately. Under a transition clause, duties imposed on goods imported into the United States up to 30 September 2007 will still be distributed after their collection, which in turn, under US practice, can take place several years after the import. That means that distribution of collected anti-dumping and anti-subsidy duties to US companies will continue to distort the conditions of competition on the US market at the expense of imported goods for a number of years.
EU Trade Commissioner Mr Peter Mandelson said "I welcome the fact that the US Congress has chosen to bring US law into compliance with its international obligations. I think that this is a constructive step, although I regret that the US has chosen to provide a transition period rather than ending these payments at once."
The Byrd Amendment has been a persistent source of tension between the United States and some of its main trading partners and benefits only of a handful of US companies. Todays vote is a significant step towards bringing the United States into compliance with its WTO obligations and removing a serious trade problem.
Brazilian iron ore exports total $8.9 billion in 2005
As per data from iron ore mining trade group Sinferbase Brazilian iron ore exports totaled 224 million tonnes bringing in $8.93 billion in 2005 compared to 203 million tonnes worth $5.01 billion in 2004. In December 2005 iron ore exports totaled 20.5 million tonnes at $923 million, while in the same period of 2004 exports came to 18.4 million tonnes valued at $475 million.
Pellet exports totaled 48.6 million tonnes in 2005 compared to 46.2 million tonnes the year before. In December of last year, exports came in at 4.9 million tonnes compared to 4.3 million tonnes YOY.
Domestic delivery of iron ore decreased to 37.2 million tonnes in 2005 compared to 39.2 million tonnes in 2004. In December 2005, local distribution remained unchanged at 3 million tonnes YOY.
Rio studying investments of $9 billion on expansions
Rio Tinto Group, the world's third largest miner, is studying new projects and expansion of mines that may cost as much as $9 billion. The projects include expanding its West Australian iron ore mines, its Mt Pleasant coal mine in New South Wales State and a US copper project. Rio is likely to spend $3 billion a year on projects in 2006 and 2007, CEO Mr Leigh Clifford announced.
The range of organic growth opportunities we have is excellent and we remain committed to exploration as a means of discovering future resources,'' Mr Clifford said. Rio is completing a feasibility study on its $1.5 billion Hope Downs iron ore project in Western Australia, and is in talks with potential customers said Mr Clifford.
The Anglo-Australian company last month also agreed to a venture with OAO GMK Norilsk Nickel, Russia largest miner, to look for resources in eastern Siberia and Russian Far East.
Arcelor rules out white knight against Mittal Steel
Arcelor ruled out running into the arms of a white knight to fend off a $24 billion takeover attempt as its CEO softened earlier criticisms of steel magnate Mr LN Mittal. "An industrial white knight doesn't exist and I don't believe in a financial one either," Dolle said.
Asked about the possibility of a shareholding marriage with Nippon Steel like carmaker Renault's tie-up with Nissan, Mr Dolle said "You would need a precise industrial objective. And this type of alliance with Nippon Steel is not credible. "We had talked about the idea of doing this with about 2% of the capital when we made a strategic alliance 5 years ago, but the much higher valuation multiples which you get in Japan compared to Europe would have destroyed value."
He did however signal interest in more limited deals. "I really believe in a 'small white knight' built around an industrial project. That could involve taking over an activity together or developing a project with another player which would be given a stake. We have a lot of potential partners."
Mr Guy Dolle said he would not rule out talking to his predator. The opportunity to talk in private arose straightaway with both men expected at pre-planned steel industry talks in Paris on Friday. He said "I don't know if Mr Mittal will be there and we are at the IISI to talk about the sector, not the takeover operation, but if he wants to talk about it then I am flexible."
Severstal increases 12.9% steel production in January 2006
Severstal produced 1.022 million tones of steel in January 2006, representing an increase of 12.9% over January 2005. The production of rolled steel in January 2006 also increased by 1.5%, over January 2005, to 0.836 million tonnes.
Severstal is among the three leaders of Russian ferrous metallurgy and among twenty world major steel companies.
European regulators in talks over Arcelor bid AMF
France's financial regulator AMF said that it was talking to other European bourse regulators over Mittal Steel's $24 billion offer for European steelmaker Arcelor.
The AMF said it had started talks with market regulators in Luxembourg, Spain and Belgium, due to the fact that Arcelor's shares are listed in those countries as well as France.
IPSCO receives commitment for 2 major pipeline projects
Canadian IPSCO Inc announced that it has received a commitment from Enbridge reserving IPSCO's large diameter pipe mills for the Waupisoo Pipeline Project and Stage 1 of the Southern Access Expansion Project. While specifications are to be finalized, the Enbridge order of approximately 160,000 tons of spiral welded pipe will begin production in the second half of 2006. With these new commitments, IPSCO expects that its large diameter pipe mill will operate near capacity for the balance of the year.
The 380-kilometer long Waupisoo Pipeline will transport crude oil from the Alberta oil sands to the Edmonton area refinery hub. Stage 1 of the Southern Access Expansion Project includes 321 miles of pipeline from Superior, Wisconsin that will increase crude transportation capacity to the greater Chicago market.
"We are very pleased with the confidence that Enbridge has shown in our large diameter pipe manufacturing capabilities," said IPSCO Executive VP and CCO Mr John Tulloch. "We look forward to working on these two significant projects with Enbridge."
IPSCO operates steel mills at three locations and pipe mills at six locations in Canada and the United States. As a low cost North American steel producer, IPSCO has a combined annual steel making capacity of 3,500,000 tons. The Company's tubular facilities produce a wide range of tubular products including line pipe, oil and gas well casing and tubing, standard pipe and hollow structural, for a combined annual capacity of 1.725 million tons. Steel can also be further processed at IPSCO's five temper leveling and coil processing facilities.
Dofasco earnings down in Q4 of 2005
Dofasco Inc earned $28.4 million in the fourth quarter, down from $96.8 million a year earlier, as its hometown operations were hurt by high costs, production issues, and lower steel prices. Revenue for the three months ended December 31 was $1.3 billion, up from $1.1 billion in the same period a year earlier. Full-year profits amounted to $171 million down from $376.9 million in 2004.
CEO Mr Don Pether stated in a release Dofasco faced a number of challenges in 2005. Profitability was negatively impacted by significantly higher costs for purchased slabs, raw materials and energy and a significant drop in market pricing."
POSCO hikes prices for stainless steel products
POSCO has confirmed that it plans to raise domestic stainless steel prices by 200,000 won per ton, reflecting a rise in nickel prices. Starting from February 8 shipments, the nation's largest steelmaker will raise prices of cold-rolled steel sheet to 2.491 million won per ton. Prices of hot-rolled sheet and steel plates will climb to 2.221 million and 2.327 million won per ton respectively, beginning from February 15, the company official said.
'We decided to raise prices as nickel prices jumped to $15,200 per ton as of end-January, compared with $12,100 in November last year,' said a company official.
MMK plans to increase output by 10% in 2006
Magnitogorsk Iron & Steel Works intends to increase steel output this year by 10% to 12.5 million tones from 11.38 million tones in 2005. The production of finished steel is also planned to be increased by 4% to 10.6 million tones from 10.2 million tones in 2004. The Company plans to keep the production volume of coke and cast iron at the last year level and to produce 1.5 million tones of electric steel.
MMK, the biggest steel company in Russia, has over 20% domestic market share.
Mittal Steel mulls on future of Luxembourg wire rod plant
Mittal Steel said that it was still thinking about what to do with a plant that makes wire rods in Luxembourg even though Arcelor said it had been advised by Mittal that it would be shutting it down. ''The closure is only one of the options that we are reviewing,'' Mittal spokeswoman Ms Tiphaine Hecketsweiler.
Arcelor spokesman Mr Jean Lasar said that Arcelor has been advised of Mittal Steel's plans for closure in December 2005.
Mittal owns 75% of the plant and Arcelor 25%. The plant employs about 200 people.
Ukrainian SCMs iron ore units increase output in 2005
Severny GOK, a System Capital Management's Northern Mining and Beneficiation Plant from Krivy Rih in Ukraine's Dnipropetrovsk region, increased net profit by 150% to 1.358 billion hryvni in 2005 from 546.5 million hryvni in 2004. SevGOK increased output by 81% to 3.34 billion hryvni in 2005. The company posted a net profit of 266.9 million hryvni in the fourth quarter of 2005. Iron ore concentrate production rose 21.2% to 10.68 million tonnes in 2005. Pellet production grew 10.1% to 7.55 million tonnes.
Tsentralny GOK, another of SCM's Central Mining and Beneficiation Plant closed 2005 with a net profit of 481.9 million hryvni up by 42% from 337.64 million hryvni in the previous year. Tsentralny GOK increased commercial output by 56% to 1.644 billion hryvni in current prices. Net profit in the fourth quarter totaled 90.9 million hryvni, up 68% from the previous quarter. Iron ore concentrate production rose 10.6% in 2005 to 5.33 million tonnes and pellet production was up 1% to 2.15 million tonnes. Tsentralny GOK produces around 15% of Ukraine's iron ore pellets. It is capable of producing 15 million tonnes of crude ore, 6.4 million tonnes of iron ore concentrate and 4.5 million tonnes of fluxed pellets annually.
SevGOK & Tsentralny GOKs GD Mr Oleksandr Vylkul said that the most favorable time for the company was the first half of last year, after which the situation on the market deteriorated, depressing demand and prices for iron ore commodities. "2005 was not easy for Ukraine's mining and metals sector, but we managed to completely carry out our investment program and maintain the highest rate of production growth in the CIS," he said.
The Donetsk-based System Capital Management SCM controls 99% of SevGOK, which is one of Ukraine's five biggest iron ore producers. SCM also owns 97.39% of Tsentralny GOK.
Techint announces 3 new contracts for DRI plants
Techint has announced that its unit HYL Technologies has been awarded three contracts for up gradation and supply of DRI based steel plants
Al Nasser Industrial Enterprise chose HYL Technologies to install 200,000 tones per year HYL Micro-Module at Mussafah in Abu Dhabi Industrial City. The plant will use the HYL ZR reformerless process, in which gas reforming and ore reduction performed in the reduction shaft furnace. This will be the third HYL ZR Process plant installed there.
Mittal Steel Lazaro Cardenas in Mexico is working with HYL Technologies to upgrade its 2 million tonnes HYL Process plant. This upgrade will increase plant production capacity by 500,000 tonnes per year, and reduce natural-gas consumption. The four reactor HYL plant there will have an annual production of almost 3 million tonnes when this project is completed later this year.
Indian Vikram IspatGrasim has contracted HYL Technologies to develop a 600,000 tonnes per year capacity expansion to its HYL DR/HBI plant. The additional module will use the HYL ZR reformerless technology, and produce high-carbon DRI for the Indian market. Grasim operates the worlds only dual-discharge DR plant, producing 750,000 metric tonnes per year of merchant HBI and DRI.
Venezuela government to invest in seamless tube plant EPS
It is reported that Venezuela's state owned Coniba will invest $387 million to operate the seamless tubes company known as Empresa de Producci Social EPS de Tubos sin Costura the city of Puerto Ordaz in Bolar state.
Mr Raiza Molina, the deputy minister of basic industries and mining as well as Coniba president, told media "We are working on an inventory of machinery we already have and for equipment that requires modifications" It is learnt that plant equipment has been in storage for 17 years in boxes in steelmaker Sidor's warehouses. But now the government is advancing with the plant installation and startup.
The plant will have capacity of 280,000 tonnes per year for seamless steel tubes and will allow Venezuela to stop importing some 155,000 tonnes per year of tubes. EPS de Tubos sin Costura will manufacture tubes of different diameters and characteristics to supply the local gas, oil and chemicals industry, meeting the needs of state-owned oil company PDVSA.
Mittal Steel shutting down Weirton galvanizing line
It is reported that 40 more jobs to be cut in Mittal Steels West Virginia operation as it will shut down the galvanizing line. The line will be shut down in about three months and the mill is no longer accepting orders for galvanized steel
Company spokesman Mr David Allen said that Mittal Steel will keep trying to serve those customers, but he didn't know from "exactly where." The measure is part of the restructuring of the mill to make it a competitive tin plate plant, Mr Allen said.
On November 29, Mittal Steel announced that it would shut down a blast furnace and permanently cease production of raw steel because historically high raw materials and shipping costs have made Weirton Mittal Steel's highest-cost producer. Weirton instead will focus on tinplate and will use steel slabs shipped in from lower cost mills in Cleveland and Sparrows Point
Saarstahl takes over wire drawing plants in France
The Supervisory Board of Saarstahl AG took the decision to submit a takeover bid for plants in Conflandey and Port dAtelier belonging to Trileries de Conflandey S A which is currently undergoing bankruptcy proceedings. On 31.01.2006, the court took the decision to accept the takeover bid from Saarstahl AG which comes into force from 01.02.2006.
The company belongs to the Conflandey Group, a group with global operations whose main product is clamping and binding wires. The production plants are located in Eastern France. The production volume amounts to approx. 70,000 tonnes per year with a workforce of around 300.
The two production plants are an addition to the further processing subsidiaries of the Saarstahl group in the field of the manufacture of soft drawn iron wires of thin dimensions, both zinc and copper-plated.
Venezuelan state steel company investing to substitute imports
Venezuelan state owned steel company Empresa de Producci Social Siderrgica Nacional, created by President Mr Hugo Chez in September 2005, aims to invest and create domestic steel capacity to substitute $354 million of finished steel imports as per a report in local media
Planned investment stands at $1 billion and it will have an installed capacity of 300,000 tonnes per year of plates; 900,000 tonnes per year of hot-rolled steel and 300,000 tonnes per year of rounded bars.
A project timeline is not released.
Several international groups have expressed interest in participating in the venture, ABN said. The report adds that the company will promote strategic alliances with countries that can guarantee human resources training, technical assistance and technological transfer to incorporate best practices into the processes.
Mechel sells small coal operations in Kazakhstan
Mechel, one of Russia's largest steel & mining companies, said that it has sold a coal mining subsidiary in Kazakhstan for about $12 million. Mechel acquired the subsidiary, called Mechel Coal Resources, in 2003 but the small producer has been less productive than Mechel's much larger Russian operations.
The Kazakhstan coal unit mined roughly 25,300 tons of coal in the first nine months of last year "an insignificant production level" when compared to Mechel's Russian coal operations, which mined more than 12.9 million tons in the same period, Mechel said in a statement.
"Today Mechel owns one of the largest coal reserves base among Russian producers," said Mechel CEO Mr Vladimir Iorich. "The dynamic growth of this huge resource base requires significant financial and managerial efforts. We believe it is a logical move to drop a small and remote asset and focus on our Russian operations."
Yenakieve plans to boost 2006 steel output by 13%
Ukraines Yenakieve Metallurgical Plant in 2006 plans to increase steel production by 13% compared to 2005, to 2.6 million metric tons, according to data released by the company.
TopMittal Steel to transfer R&D centre to Europe if bid succeeds
Mittal Steel plans to transfer its R&D headquarters, currently in Chicago, to Europe if its takeover bid for Arcelor succeeds, El Pais reported, citing comments by Mittal Steel CEO Mr LN Mittal. In an interview Mr Mittal said 'It's very important for Europe... to have solid R&D installations.'
TopTMK registers 0.8% growth in sales in January 2006
Russian Pipe Metallurgical Company TMK increased the deliveries of different assortment pipes by 0.8% in January 2006 to 207,000 tones. The steel production amounted to 151,000 tones including 35,500 tonnes of billets.
TMK is the biggest Russian producer of pipe products with over 42% share of Russian pipe market and is one of the top three world's manufacturers of pipes. TMK represents the Volzhsky, Sinara, Taganrog and Seversky pipe mills in Russia. The total annual productive capacities of the Company amount to 5 million tones. Last year it was produced 2.855 million tones of pipes.
Vietnams Dung Quat zone to license steel project
The Dung Quat Economic Zone, in the central province of Quang Ngai Vietnam expects in the first quarter of this year to license a steel factory worth US$1.5 billion, a senior official reported.
Director of the zones investment promotion centre Mr Le Van Dung, said more information about the Taiwanese project had yet to be revealed, as the investor would submit the whole project to the Government in February.
Intl Ferro Metals targets higher FeCr output by 2007
International Ferro Metals said that it is well positioned to take advantage of the continuing high demand for ferrochrome from the world's stainless steel producers and aims to reach a production level of 267,400 tonnes per annum of ferrochrome by the end of 2007. Construction of the ferrochrome plant at the Buffelsfontein ferrochrome smelting and mining operation near Mooinooi in the North West Province of South Africa is on schedule for commencement of initial production in April 2007.
The fixed price and fixed time contracts account for 87% of IFM's Capex up from 68% at time of admission to AIM, thus further reducing the company's exposure to any potential construction risks, it said.
Mine portal has been established with two declines. The first is 150 meters in length and within the chromite seam and the second decline length is 35 meters, IFM said. Smelter furnace foundations are complete and the fabrication of the furnace shells is advanced, with the first furnace shell scheduled to be delivered to site for installation in the last week of February.
Peabody & Arch Coal heed calls to close coal mines
Peabody Energy Corp and Arch Coal Inc, the two largest US coal producers, answered a call Wednesday by West Virginia's governor for all mines in the state to suspend work for safety checks. The companies, which are based in the St Louis area and collectively produce almost one fifth of the US's coal, also planned to heed a request by Mr David Dye, acting assistant US secretary for mine safety and health, to spend an hour on Monday reviewing safety issues and hazards with workers.
Both companies said they back state and federal proposals to strengthen mine-safety and rescue regulations after the recent rash of mining deaths and both had previously implemented some of the safety rules mandated in West Virginia.
US Senate passed on a voice vote a measure giving tax breaks to coal companies that spend more on safety equipment and training on Thursday
Japans December steel exports down by 11.6%
Japan's steel exports totaled 2.69 million tons in December 2005, 11.6% lower than a year earlier, the Japan Iron and Steel Federation said. Sharply lower demand from several major importers of Japanese steel caused exports to drop for the sixth consecutive month, the data showed. Exports fell 21.6% on year in November, 4.2% in October and 4.4% in September.
Demand for steel from Japan's two biggest customers, South Korea and China, was markedly lower in December, down 24.1% and 24.2% on year respectively. Exports to South Korea at 594,000 tonnes in December 2005 have now fallen for 12 consecutive months, while those to China at 422,000 tonnes in December 2005 have contracted for four straight months. Thailand also imported only 286,000 tonnes, 16.3% less steel than a year earlier, marking the second consecutive month of declines.
US imported 199,000 tonnes in December 2005, an increase of 50.3% highest since December 200l. Exports to Taiwan also increased by 22.8% on YOY to 286,000 tonnes, up for the first time in two months.
Indonesia Antam sees 2005 revenue up 12%
Indonesian State owned miner PT Aneka Tambang or PT Antam said that its 2005 revenue is estimated to rise 12% in 2005 on increased sales of saprolite nickel ore, which offset lower sales of ferronickel. The company forecast sales revenue of IDR3.207 trillion for the year up from IDR2.858 trillion recorded in 2004. Nickel remained Antam's key mining commodity in 2005, making up 76% of the company's revenue, despite a decrease in production that reduced sales.
Antam produced 7,338 tons of ferronickel in 2005, an 8% decrease from 7,945 tons in 2004, because of the unplanned shutdown of its FeNi II smelter at the beginning of 2005. As a result of lower sales volume, revenue from ferronickel sales dropped 5% on year in 2005 to IDR926 billion. The company expects ferronickel production to total 21,000 metric tons in 2006 as its third smelter, FeNi III, is scheduled to commence commercial production this year.
In 2005, Antam boosted its high-grade nickel ore sales to offset an estimated loss of income from the unplanned shut down of FeNi II. Revenue from sales of Saprolite nickel ore in 2005 increased 36% to IDR1.3 trillion on year, on higher sales volume. Antam sold 3.04 million wet metric tons of saprolite in 2005, a 19% increase from the year before.
New Caledonia nickel project going ahead as planned
A spokesman for a planned huge nickel mining project in northern New Caledonia, Mr Stephane Camerlynck, says construction at the mining site will begin this year.
The project has been stalled since last year after the Canadian mining company Falconbridge and another giant Canadian mining company, Inco, began discussing a merger. Falconbridge is the main investor in the northern project. The merger offer has been extended to 27 February after anti-trust regulators in the European Union and the United States began investigating. There have been fears that the merger could end the project, but Mr Camerlynck says it will go ahead as planned, with some contracts signed last week.
"In fact, the project is already going ahead. Last week we signed a contract with Hatch-Technip that will be the EPCM contractors. We signed a contract of 250m US dollars. So at the moment nothing has changed for us. Falconbridge has not frozen anything on Koniambo because of this merger. It goes like business as usual." Mr Stephane Camerlynck says a budget of 11 million US dollars is earmarked for preliminary earth works, with major construction to start next year.
Brazilian flat steel exports in January 2006 up by 38%
Brazil's rolled flat steel export revenues totaled $313 million in January 2006, up 38% from $194 million YOY as per a report from foreign trade ministry.
Exports of semis decreased by 57% in January 2006 to $168 million compared to $263 million in January 2005.
Wire rod exports increased 22% to $109 million in January compared to the same month of 2005.
Zinc output at Peruvian Antimina to drop in 2006
Zinc output at Peruvian copper-zinc mine Compania Minera Antamina SA will drop by 30% in 2006 due to changes in ore mix and grades, the company said in its fourth quarter earnings release. During the fourth quarter, zinc output stood at 15,100 tons, down from 24,300 tons during the same period the year before. The mine produced 184,300 metric tons of zinc in 2005 and 190,100 tons in 2004.
Antamina officials wrote to customers in October to draw up contingency plans as only about 80% of contractual obligation would be met, sources said at the time.
Ownership of the Antimina mine are BHP Billiton Ltd with a 33.75% stake, Falconbridge Ltd with another 33.75%; Teck Cominco Ltd with 22.5% and Mitsubishi Corp with 10%.
US Steel industry laments repeal of anti-dumping amendment
The repeal of the Byrd Amendment presents another challenge for the steel industry. The repeal came as part of Wednesdays 216-214 House of Representatives vote passing the Budget Reconciliation Bill.
Mr John Saunders, a United Steelworkers officer at Wheeling-Pittsburgh Steel said, It was a disappointing day for all working West Virginians. Now that it is OK to dump steel, we will be uncompetitive in a global market. This will hurt Wheeling-Pittsburgh, Mittal-Weirton and smaller companies like Warwood Tool Co which are injured from illegal trade can no longer be reimbursed.
Sphere to search for further iron ore deposits in Mauritania
Western Australian based Sphere Investments will assess the exploration potential of its Bou Derga and Tintekrate magnetite deposits in Mauritania, after receiving positive early indications from a feasibility study at the nearby Guelb el Aouj iron ore project. The company has already developed the Guelb el Aouj deposits to an Inferred Resource of 675 million tonnes 36.4% Fe including 450 million tonnes of 36.6% Fe for the East Deposit and 225 million tonnes for 36% Fe for its Centre Deposit.
The decision to evaluate the two additional deposits was announced by the Company today following positive results from recent mapping and modeling by Sphere's geologists. "Based on similar procedures to those used for the initial assessments of Centre and East, we believe that Bou Derga provides a magnetite-quartzite target in the order of 450-600 million tonnes Sphere's MD Mr Alex Burns said.An assessment of the potential of the Tintekrate Deposit is also underway." He dded
The two deposits are located less than 20 kilometers south of Guelb el Aouj and are situated within the established JV area, itself embedded within a major iron ore province. All deposits in the JV area are located within 30 kilometers of SNIM's iron ore rail network that feeds its 160,000 DWT iron ore port at Nouadhibou.
New financial director for Mittal Steel SA
Mittal Steel SA has appointed Mr Kobus Verster as financial director, the company announced following the resignation of Mr HC Banthia during the week. Mr Verster was GM of corporate treasury at Mittal Steel in Rotterdam Netherlands.
"Mr Verster has a long history with this company. He has an understanding of the local market and in the last couple of years has gained invaluable international experience with Mittal Steel in Rotterdam" said Mr Davinder Chugh CEO of Mittal Steel SA
Cookson to add another mold plant in China
Cookson Group Plc, the world's largest maker of molds for the steel industry, may build another factory in China after surging demand from the nation used up the entire capacity of an expanded plant meant to serve Asia as a whole.
The company last year doubled production of ceramic linings used in steel foundries at its factory in Suzhou northwest of Shanghai. CEO Mr Nick Salmon said. When we started that project we thought initially we would use it as an export base for Korea and elsewhere,'' Salmon, 53, who spent more than 10 years working in Hong Kong in the 1980s. But by the time it was finished capacity was taken care of just in the Chinese market.''
Cookson's customers include Anshan Iron & Steel Group, China's second-biggest steelmaker and Wuhan Iron & Steel Group, the third largest.
Mittal Steel Iasi employees strike salary raise
The employees of Mittal Steel Iasi will receive a monthly premium of up to 20% of their basic salaries, according to how they have fulfilled the indicators in the business plan. This is set out in a clause included in the appendixes to the 2006 Collective Bargaining Agreement, the negotiations in connection with which were closed this week, reads a press release of the company
According to reports the basic salaries will be increased by 5% in January and by 3% in August, and the work on Saturdays, Sundays and public holidays will be remunerated with bonuses of 25% of the salary. During the annual leave, the workers will receive a pay that is at least equal to the basic salary plus the permanent premiums that would have normally been paid to them during that period, according to the individual employment contracts.
