February, 06 2006
CVL eyes Zimbabwe as first overseas venture
CILs international arm Coal Videsh Ltd CVL is bidding for drilling, exploration and mining rights in a 75 square kilometer Greenfield Zimbabwean coal block in the Whangi province. It plans to set up a joint venture with Zimbabwe Electricity Supply Authority Holdings Pvt Ltd for the purpose. The Central Mine Planning and Design Institute will carry out the exploration work on behalf of CVL in Zimbabwe. The drilling expenses are pegged at Rs 6 crore.
CVL is also in the process of firming up plans for exploration rights for a coalfield in Dinajpur district of Bangladesh. CVL is also firming up plans to acquire stakes in coal mines in Mozambique for coking and thermal coal, Australia for coking coal and South Africa for thermal coal. It is reported that CVL may go for a mix of outright purchase, block allotment or take up an unexplored area for exploration.
EAF Blast may hit Essar Steel production
Essar Steel may face a production loss as it has closed one of its three arc furnaces at the Hazira unit following a blast on Saturday evening. The 1.5 million tonne electric arc furnace will remain shut for at least a week. The three furnaces put together have an installed capacity of 4.5 million tonne. With the closure of one furnace, Essars capacity would go down by nearly 30% till the time it is restored. In a company release, Essar stated that the remaining two furnaces had resumed normal operations.
It is reported that water came in contact with molten steel at one of the arc furnaces on Saturday triggering a blast injuring 11 persons.
Final round negotiations between TATA & Bangladesh to begin
The final round of negotiations between the TATA and the government of Bangladesh will resume today to sort out the remaining unresolved issues of TATAs investment proposal. The head of Bangladesh's negotiating team is Communications Secretary Mr Shafiqul Islam while Mr Manzer Hossain, resident director of TATA International Ltd Dhaka office and Mr Indronil Sengupta of TATA Steel will lead the TATA's negotiation team.
The fourth round of negotiations started on January 7 to settle the $2.5 billion investment proposal of TATA. The talks were suspended till January 22 and were later rescheduled to February 6, according to energy ministry sources.
"This round of negotiations is very important as almost all the major issues except pricing of gas and coal have been settled," said a senior energy ministry official yesterday after a preparatory meeting for today's negotiations held at the ministry with Adviser Mahmudur Rahman in the chair. "We have concluded three rounds of negotiations and we are hoping to conclude the investment proposal. There are some fundamental issues like coal mining, gas supplies and gas pricing which are likely to get high priority in this round of talks," said a Board of Investment official.
A senior official of TATA hinted earlier that it might drop its proposed $2.5 billion investment venture in Bangladesh over differences on the availability and pricing of gas. "If we do not get gas at a price which we are looking for, there is no point of doing business there," said TATA Sons Director Dr JJ Irani in Kolkata in December. "This is simply because Bangladesh does not have any iron ore. So the only advantage there is gas," he added.
NTPC Kaniha on the still to absorb all land oustees
It is reported that even after 16 years since the NTPC came into being at Kaniha, 270 job seeking substantially affected persons are left in the lurch. In the first phase of the plant, NTPC absorbed 200 SAPs while the rest 180 got jobs in the second phase 2000 MW expansion project completed two years ago.
NTPC has refused to absorb at least 270 SAPs, on the plea that there were no more vacancies.
The oustees are planning to organize a sustainable stir soon to get justice. A rail roko disrupting the coal movement had already been organized recently.
Mr Mittal to resume Europe tour to push Arcelor offer
It is reported that Mr LN Mittal will meet the Belgian prime minister and the head of the regional French speaking Walloon government to discuss his $24 billion proposed offer for the Luxembourg steel group today. "The strategy of Mr Mittal is to explain that his company is ready to honor the social commitments of Arcelor. Therefore, he will meet a lot of people involved in the political and economic life of the countries involved," the Mittal Steel spokeswoman said.
Last week, he met with senior representatives of the French, Spanish and Luxembourg governments.
Mittal Steel will submit its offer for Arcelor to Belgian and Spanish regulators this week and resume his tour of European capitals to drum up support. "In the next few days, the offer will be officially submitted to the Belgian regulator and to the Spanish regulator," a spokeswoman for Mittal Steel told Reuters on Sunday. Mittal Steel has already submitted the details of his proposed offer to the Luxembourg regulator, spokeswoman added.
China's Angang Steel to buy parent assets
China's Angang New Steel Co, a unit of one of the China's top five steel makers, said that it has received approval from both regulators and its shareholders to purchase the steel assets of its parent company for CNY12.74 billion ($1.58 billion).
Angang will buy out Angang New Steel and Iron Co from its parent, Anshan Iron & Steel Group Complex through the issuance of 2.97 billion A shares at CNY4.29 each, according to its statement posted on the official China Securities Journal.
S Korean shipbuilders exports increase by 15% in 2005
South Korean shipbuilders 2005 exports increased by 15% percent from a year earlier on the back of deliveries of high value added ships, an industry association said. The shipbuilders' aggregate exports rose to $17.6 billion last year from $15.3 billion the previous year, the Korea Shipbuilders' Association said.
The association attributed the expansion to the industry's selective receipt of orders. Exports rose sharply as the shipbuilders delivered higher-priced ships whose orders were received in 2004,'' the association said.
The association painted a rosy outlook for the industry this year, predicting exports to increase more than 10% annually.
South Korea is the world's leading shipbuilding nation, boasting the world's top three companies in the industry Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries.
French government wants more information on offer
French Prime Minister Mr Dominique de Villepin said late on Sunday that he wanted more information about Mittal Steel's offer and said the state held some responsibility in the matter. "I want to know more" Mr Villepin said on Europe 1 radio. "The state has a responsibility to check the validity of this transaction. I say let's be demanding, let's be mobilized."
Finance Minister Mr Thierry Breton reiterated on Saturday that the French government was worried by Mr Mittal's approach and method. The government expresses its strongest concern on the way this approach has been initiated," Mr Breton told a luncheon in Paris on Saturday. However, Mr Breton stressed he was neither for nor against the proposed tie up.
Shipping prices predicted to slide by 10% - Fitch
Shipping prices are expected to slide by another 10% this year as the global market struggles to cope with shipping capacity that has been boosted to meet import demands from China. Analysts at Fitch Ratings gave warning that the party is over for much of the industry, with the cost of hiring freight-carrying ships having dropped about two thirds in the past year. Fitch claims that global freight rates could slide a further 10% this year as the industry grapples with more shipping capacity than demand.
Faced with the onslaught of demand from China, ship owners had increased their orders for ships, which are now being delivered. Fitch analysts said that the global fleet could expand 14% over this year and next.
Chinas hunger for raw materials had inflated prices for shipping to record levels in recent years. At the end of 2004 its demand for iron ore to fuel its construction boom pushed prices up to $105,500 a day. The highest price paid was $120,000 a day for a ship from Brazil to China. Mr James Leake, a senior analyst at JE Hyde, the shipping brokerage, said: It was a question of raw materials being imported at any cost.
However, as demand from China remains robust, many in the shipping industry attribute the slide in prices to reduced congestion at ports in China and the key iron ore ports in Brazil and Australia. Chinas voracious appetite for commodities has consumed much of the worlds ships, but problems with infrastructure have created week-long queues of ships waiting to offload their goods at Chinese ports.
Nigeria to privatize coal mining by August 2006
Anglo American and BHP Billiton may be among 15 firms interested in buying coalfields currently controlled by state owned Nigeria Coal Corporation said Nigerias solid minerals minister Mr Obiageli Ezekwesili. We already have about 15 companies from all over, including South Africa, that are waiting on the wings to participate in this, said Mr Ezekwesili. Nigeria Coal Corporation is being privatized in an effort to overhaul the West African countrys minerals industry, an initiative announced in 2004. Including infrastructural spend, the privatization of the coal assts could attract total investment of about $10bn, said Mr Ezekwesili.
Mr Ezekwesili said Nigerias coal resources, estimated to contain 2.75 billion tons of mostly thermal coal, would be divided into 10 packages. The Nigerian government had undertaken to release 100% control of the assets. Proven coal reserves in Nigeria, however, total the lesser amount of 639 million tons. Nigerias government would put the coal reserves open to tender in March. It was anticipated that a decision on the winning companies would be announced by August at the latest, Mr Ezekwesili said.
The Nigerian government was also hoping to privatize Nigeria Mining Corporation, which Mr Ezekwesili said contained about 100 exploration and mining rights, through public auction. The bulwark of geological data in terms of exploration is held in this company, Mr Ezekwesili said.
China to reduce coal mine deaths by 3.5% in 2006
China has set a goal of reducing coal mine fatalities by 3.5% YOY in 2006, announced the head of the state work safety watchdog. The country will also reduce the number of accidents by 7% this year, said Mr Li Yizhong, director of the State Administration of Work Safety. "Given the grave situation, we did not set an ambitious goal, "said Mr Li, adding "even this will take a great effort to realize."
Mr Li said China will strengthen the work safety management in all kinds of coal mines this year, especially in the large state-owned coal mines. More efforts will be made in preventing underground coal mine flooding and gas explosion, he stressed.
Chinese coal mines are considered to be the deadliest in the world. China reported over 3,300 accidents which killed nearly 6,000 miners in 2005.
Mittal Steel Temirtau boosts investment 50% in 2005
It is reported that Mittal Steel Temirtau invested $446 million in its development during 2005, up by 50% from $292 million in 2004. The money was spent on a continuous casting unit with a ladle furnace, a polymer coating line and a cold rolling line.
Company has also planned CAPEX of $180 million during 2006, mainly for the launch of the coke oven battery No 7, a unit desulphurization unit and a pipe mill. It is also reported that the company will also start to build a 400,000 tonnes per year sections and bars mill costing $150 million.
Nippon Steel clarifies that no request received from Arcelor
Arcelor SA did not ask Nippon Steel Corp to help ward off a takeover bid from Mittal Steel, the Nihon Keizai Shimbun reported, citing Nippon Steel President Mr Akio Mimura. The business daily said Mr Mimura met with Arcelor CEO Mr Guy Dolle last Thursday on a visit to France to attend a meeting of the International Iron and Steel Institute.
'We talked about strengthening our existing partnership in such areas as technological development,' the Nikkei quoted Mr Mimura as saying. But Mr Dolle did not make specific proposals about seeking Nippon Steel's support in fending off Mittal's bid, the report said.
There had been speculation that Nippon Steel, the world's third largest steelmaker, would emerge as a white knight for Arcelor.
ADB warns Bangladesh against granting extra benefits to TATA
It is reported that the Asian Development Bank has advised Bangladesh government to continue negotiations with the TATA Group, to help shape up its $ 3.0 billion investment proposal, but has warned that if Bangladesh provides facilities to the Indian conglomerate going beyond the existing regulations, it might antagonize other foreign investors.
The observations were made in an ADB-commissioned report on "Economic impact analysis of the Tata's investment proposal", submitted to the Energy Division Sunday. Calling the negotiation "critical", head of the study team Mr David suggested the government negotiators should handle their counterparts of TATA carefully.
The team leader said that if finalized, TATA's investment would galvanize other flagship global corporations into investing in Bangladesh in a big way. By international standards, he said, the country is still one of the lowest recipients of foreign direct investment, despite the surge in inflows in recent years.
Mittal Steel Temirtau production down in 2005
Mittal Steel Temirtau revenue in 2005 was 187 billion tenge compared with 164 billion tenge in 2004. The company produced 4.129 million tonnes of steel ingots and slabs in 2005 down from 5.11 million tonnes in 2004; 3.582 million tonnes of roll down from 4.1 million tonnes; and 11.167 million tonnes of coal compared with 12.526 million tonnes in 2004.
It is aiming to produce 4.683 million tonnes of slabs and ingots, 4 million tonnes of roll and 12 million tonnes of coal during 2006.
Nemi commissions washing plant at Trend mine
Vancouver based Northern Energy & Mining NEMI has commissioned the washing plant at its Trend small mine near Tumbler Ridge. Construction was completed in less than a year. Mine production began the last week of December 2005.
NEMI owns 100% of the Trend project.
China encouraging companies for bigger role in exploration
The Chinese government is encouraging companies to participate in geological prospecting in order to make companies the main player in the market instead of the government, according to a government document released last week. The document said the government will principally not invest commercial geological prospecting projects that can be invested in by companies. The government will generally use macro policies to optimize the market climate.
It said the government will encourage companies of all kinds of equity ownership to take part in commercial mineral resources prospecting. For energy and other important resources prospecting that is highly risky, the government will increase primary prospecting investment in order to conduct more commercial prospecting investment, according to the document. The government will encourage large mining companies to do more prospecting work and enhance their ability to prospect and develop mineral resources domestically and overseas.
It will also encourage the state owned prospecting institutes to cooperate with social capitals in establishing geological prospecting companies or geological technology service companies.
Total Coal & Mmakau form a JV to bid for BHP coal mine
Total Coal SA and Mmakau Mining have formed a new JV Tumelo, which is bidding for BHP Billitons Koornfontein coal mine. Tumelo would be 51% owned by Mmakau Mining and 49% by Total Coal SA. BHP Billiton said this week it would sell Koornfontein, which produces more than 2 million tons of coal a year, to a company at least 51% black owned.
The new company would also house Mmakau Minings 25% interest in Total Coals Dorstfontein Coal Mine and its 51% in the developing Boesmanskop mine near Witbank to produce about 500,000 tons of thermal coal a year for export from next year.
Total Coal SAs MD Mr Jean Marc Otero del Val said that the cost to Mmakau of taking a stake in Boesmanskop and developing it were incorporated in the agreement between the companies, which had yet to be signed. Total Coal SA recently announced it would develop the Forzando South Mine to produce 1.5 million tons of coal a year, at a cost of around R210m. That would imply a cost of about R60m to develop Boesmanskop, which is a third of the size.
Irans first mechanized coal mine to start next month
First fully mechanized coal mine located in Tabas Yazd Province of Iran will be operational by March 2006 as per a statement form executive manager of Mineral Products Procurement and Production Company Mr Ardeshir Sad Mohammadi. The total amount of coal reserves in this area is estimated to be about 1.2 billion tons and it is believed that the extraction would cut the nations coal imports by 750,000 tons, a saving of 600 million dollars.
It is also reported that Jalalabad Ironstone Mine in Zarand and Gol Gohar offer 200 millions tons of reserve each. An agreement for building of an iron ore concentrate factory having 3 million tonnes capacity has been finalized.
Qasco implements Oracle e business suite
Qatar Steel Company has completed the implementation of Oracle's e-business suite, which has enabled Qasco to streamline its internal business processes, as well as giving senior management a clearer, more concise means to analyze business performance and make informed and timely business decisions, as per a statement from the company. Oracles e-business suite will allow Qasco the ability to expand while retaining its lean manufacturing structure and high-quality production, it said.
Qasco sought to strengthen its IT capabilities by replacing systems developed in-house with a world class enterprise resource planning solution from Oracle. According to Mr Malek Hamdieh, information technology manager for Qasco, the company required a solution that would provide an integrated view of its growing operations.
Qasco has developed an aggressive expansion plan, with the steel manufacturer on course to complete in 2010 the building of a state of the art facility capable of producing four million tonnes of iron per year.
