February, 07 2006
Sensex makes history as it scales the 10000 peak
It was a historic day for the Indian stock markets as it today travelled beyond the 10,000 mark.
One stock broker attributed today's landmark of the Sensex to the ''corporate India and the Government of India whose contributions had helped to achieve this great feat. ''While I have seen Sensex traveling from below 1000 mark to 10,000 mark in over 20 years, I see Sensex travel another 10,000 points in the next five years,'' he added.
Another trader and investor in the stock markets who saw Sensex travel from three digit figure to five digit figure in his over 18-year career attributed today's feat to advances made in the technology. ''The Sensex journey from 6,000 to 10,000 in less than a years time, was much faster with stock trading made online through advances in information technology which allowed a changeover from physical trading to electronic trading.''
Centre gives environmental clearance to JSW expansion
The Union Environment and Forests Ministry has given the green signal to Jindal South West Steels Limited at Toranagallu in the district for its expansion activities. The environmental clearance was granted for expanding the existing JSW steel plant from 2.5 million tonnes per annum to four million tonnes, subject to some conditions.
The conditions include no additional land should be used for increasing the capacity, gaseous emissions from various processing units should conform to load/mass-based standards, emission level should never go beyond the prescribed standards, dust suppression and extraction systems should be provided to control fugitive emission at material handling points, no generation of process effluent should be ensured and effluent generated from domestic source should be adequately treated in septic tank.
The proposal was considered by an expert committee on November 28, 2005, and a public hearing held on July 13, 2005. The Karnataka State Pollution Control Board had issued its consent order on August 14, 2005.
Bangladesh resumes negotiations with TATA
Negotiation between the Bangladesh government and the TATA Group on the proposed 3 billion US dollar investment by the industrial conglomerate resumed here today. On the first day of the current round, TATA officials held meetings with state owned Petrobangla and placed their detailed proposals on gas supply and coal mining issues. According to sources close to the negotiations, TATA demanded 20 year uninterrupted gas supply to run its proposed steel and fertilizer plants. TATA also put forward its plan to take over a part of the Barapukuria Coal Mine to extract coal through open-cut technology.
This round of talks will continue until February 8 and TATA officials said they were hopeful of reaching an understanding with the government on gas supply, gas prices and power tariff issues.
TATA is unhappy about the delay. "We should not expect we could complete all formalities as speedily as we do in a European country. But obviously, if we find the investment negotiation is being delayed long enough, we may reconsider our plan," said Mr Alan Rosling, ED of TATA Sons. "We have already lost six months for negotiation", pointed out Mr Rosling.
He strongly disagreed with the government proposal to set a higher price for a guaranteed gas supply for 20 years. Mr Rosling noted that mills across the world produce steel using gas at a price that is considered economically viable and with its supply secured. "You will not invest $3.0 billion where gas supply might stop tomorrow," he said. The government offer for 1.25 trillion cubic feet Tcf gas supply is inadequate as Tata will need 2.16 Tcf gas for its steel plant for 25 years and power and fertilizer plants 20 years each.
GAIL appoints SUZ Tractebel for Myanmar pipeline
State owned Gas Authority of India Limited GAIL has appointed SUZ Tractebel of Belgium as technical consultant to carry out study for a pipeline from Myanmar to India avoiding Bangladesh. Tractebel has been commission to carry out study for preparing Detailed Feasibility Report, Environment Management Plan and Rapid Risk Analysis study report for Myanmar-India pipeline project via North East Indian Territory. The proposed pipeline will be routed through the states of Mizoram, Assam, West Bengal and Bihar. The pipeline is also having the provision to transport gas from developing gas fields in Tripura and Assam. The Myanmar gas will be injected at Gaya in proposed Jagdishpur-Haldia pipeline
The basic contents of feasibility study are route selection, design parameters, system reliability, redundancy, safety, security, hydraulics, sizing, cost estimation, sensivity analysis, risk analysis and mitigation measures, project construction schedule and project implementation strategy. The technical consultant will submit the Detailed Feasibility Report within three months, the official said.
SUZ Tractebel is a well renowned international consultant and has carried out various pre-feasibility study/feasibility studies on transnational pipelines for oil and natural gas.
Tractebel was selected from five companies that applied for the job. The companies that participated in the bidding were Dorsch Consultant of Germany, Tractebel of Belgium, EP Consultant of the UK, ILF Consulting Engineers Ltd of the UK and CBN, John Brown of the UK.
Indian Seamless on modernization drive
Indian Seamless Metal Tubes ISMT is on a de bottlenecking and modernization drive which will see its alloy steel production increase from the present 0.190 million tonnes per annum to over 0.3 million tonne by June 2006. Of the 0.3 million tonnes of alloy steel, 0.2 million tonnes will be for ISMT's captive use to produce seamless tubes and the rest will be sold. The company subsequently targets to hit the 0.45 million tonnes per year capacity mark by 2008. To keep in line with the increased capacity of alloy steel, production of seamless tubes will also be increased to 0.25 million tonne by 2008 from the present 0.145 million tonnes.
ISMT is using the USs Praxair's CoJet gas injunction system for its oxygen furnace, which has helped to reduce time needed for melting scrap steel. "With the technology, our heats per day has increased from 15 to 19. We have the scope to increase it to 24 heats per day," said Mr Goel.
In addition to the increase in output, the modernization will also save about Rs 1,600 per tonne. "On variable costs we will save about Rs 1,000 per tonne and Rs 600 in fixed costs. Overall the company will save over Rs 50 crore per year," said Mr Rajiv Goel CFO.
FDI likely to reach $7 billion-mark
Riding on investment inflows coming from auto and mining sectors, foreign direct investment into the country is expected to cross a record $ 7 billion mark during 2005-06, department of industrial policy and promotion DIPP secretary Mr Ajay Dua said. Our expectation is that we should cross the $7 billion mark going by these yardsticks, he said.
It may be noted that based on present FDI inflows, commerce minister Kamal Nath had earlier set a target of $7.5 billion FDI inflow in 2005-06 and $10 billion in the next fiscal.
Russian tycoon in $1 billion bid for Highveld stake
Russian magnate Mr Alisher Usmanov has lodged a bid to buy Anglo Americans controlling stake in Highveld Steel & Vanadium for more than $1 billion. Mr Usmanov is one of several expected bidders for Highveld Steel, SAs second-largest steel maker and a major global supplier of vanadium. Mr Usmanovs Highveld bid complements his existing interests. Russias principal source of vanadium is the iron ore deposit known as Kachkanarsky, controlled by the Evraz group. Mr Usmanov controls two of Russias largest iron ore mines, Lebedinsky and Mikhailovsky but neither indicates that it produces vanadium.
A spokesman for Mr Usmanov last week confirmed the Russians interest in Highveld, saying it was included on a shortlist of potential bidders. Other short listed bidders are believed to include the South African arm of the UK based Kermas ferrochrome group, TATA Steel of India and possibly Mittal Steel SA.
Anglo said last year that it would sell its stake in Highveld and other non core businesses to concentrate on mining. It is not clear how much Anglo wants for its 79% stake in Highveld but steel analysts have previously placed a value of between R6bn and R10bn on the stake. Citibank is advising Anglo on the deal, while Standard Bank is advising Highveld.
Most of the worlds reserves of vanadium are in China but South African reserves are almost as big and South African mines produce more vanadium than their Chinese counterparts.
Arcelor Laiwu Steel deal nearing completion
It is reported in a Chinese daily that citing a Laiwu Steel that Arcelor has reached a final agreement to buy a piece of China's Laiwu Steel Co Ltd. Arcelor is the world's largest H-section steel maker and Laiwu Steel Group is China's largest H-section steel maker. "We will announce details of the deal soon. Arcelor and Laiwu Steel Group will jointly build steel plants in China," group's spokesman told media. The deal still needs government approval to move ahead.
Although details remain undisclosed, Mr Liu has said Arcelor will takeover less than 50% of Laiwu Steel and Laiwu Steel Group will remain the largest shareholder of Laiwu Steel because of the Steel Industry Development Policy, which bans overseas companies from taking control of domestic steel mills. Laiwu Steel Group holds a 76.32% stake of Laiwu Steel.
Laiwu Steel wants Arcelor's technology for producing H-section steel to help build the largest H-section steel production base beside the Rizhao port in Shandong Province.
Laiwu Steel Group, based in Shandong, produced 10.336 million tonnes of crude steel in 2005, up 57.01% YOY, eighth in China.
No protectionism in France says French minister
France's involvement in discussions concerning Mittal Steel's proposed bid for rival Arcelor, like that of other European governments, is legitimate and should not be seen as protectionism, its finance minister said. "The positions of the governments concerned result from the failures reflected by Mittal Steel's bid," Mr Thierry Breton wrote in the Financial Times. "They are certainly not prompted by efforts to protect or discriminate against a major, large and respected emerging country." He added
Mr Breton stressed India was not concerned, directly or indirectly by the proposed take-over which he said involved "only European companies." "I wish to state strongly that protectionist impulses have no place in modern economic governance," Mr Breton added.
Mr Breton wrote in the Financial Times that Mittal Steel had failed to explain how it intended to merge the two company's corporate cultures and explain the industrial rationale behind the deal. "This process creates an impression that the bid may have been launched hurriedly," Mr Breton said. "Because the challenge is of high importance to our communities, public authorities must consider the issues objectively," Mr Breton wrote.
Few ore pacts don't echo long term talks CSIA
Some Chinese steelmakers' agreements with iron ore suppliers on prices for spot contracts don't represent major steelmakers' attitudes toward 2006 term contract negotiations, the China Securities Journal reported Monday. Citing the Secretary General of the China Steel Industry Association Mr Luo Bingsheng, the report said Shanghai Baosteel Group Corp., the country's largest steelmaker by annual production, is still in talks with three major international miners for an iron ore term contract for the whole of 2006.
Mr Luo's remarks follows comments made by industry players that two Chinese steelmakers in early January agreed to accept a spot contract price of $44 a metric ton for iron ore concentrate, up 10% from last year's average price.
The annual negotiation on iron ore price started late last year and is expected to end in March. Traditionally, miners only hold talks with Baosteel, which is also China's largest iron ore buyer, for a one-year term contract and the price reached is used by other Chinese steelmakers.
Baosteel downplays impact from possible Mittal-Arcelor deal
China's largest steelmaker Shanghai Baosteel Group Corp says it sees no need to significantly readjust its development strategy in the event that Mittal's hostile takeover bid for Arcelor proves successful. 'Whether or not the buyout goes through, it will have no major impact on our future growth plans, and since China's steel policy views both local and overseas integration as positive, we likewise see such activities as instrumental in the long-term sustenance of the global steel sector, a Baosteel corporate affairs official told media
Both Mittal and Baosteel are also bidding for a stake in Xinjiang Bayi Iron & Steel Co Ltd. Bayi has an annual capacity of approximately 3 million tonnes and is the only large steelmaker in the northwestern region of Xinjiang.
Mr Chen said the Chinese government has been encouraging major domestic mills to ease investment and engage instead in mergers and acquisitions to rationalize output in the industry. We ourselves aim to become a world-class multinational company, and by 2010 we plan to become one of the top three global steel firms. We also see Baosteel engaging in many more merger and acquisition activities during this time, he said.
Pure market forces are helping to shape the market more than protectionism and state support, so M&A activity in China's steel sector is increasingly evolving into a purely company-to-company decision-making process, he said. 'Whether we look at the proposed mega-takeover between Mittal and Arcelor or similar activities in China such market-driven forces are very healthy for the much-needed consolidation and restructuring of the sector, both in China and overseas.'
Brazil to change mine law in bid to boost investment
Brazils National Department of Mineral Production DNPM has announced that a proposed law that will allow increased access by foreign mining companies to Brazils border areas is in the final stages of drafting. The object is to increase foreign mining investment in these regions.
The proposed new law will revoke the existing Law 6.634/79, which forbids companies with foreign shareholding greater than 50% to undertake prospecting and mining in a zone extending 150 km from Brazils borders although a constitutional amendment of 1995 allows foreign companies to operate in this border zone, provided it is done by means of a subsidiary company legally registered in Brazil.
The result has been a state of juridical conflict that has endured for the past 11 years; the proposed new law will do away with this situation. It is reported that one of the international companies most interested in the passage of the proposed new law is Rio Tinto, which is looking at a major iron ore project in the Brazilian state of Mato Grosso, which is located only 50 km from the border with Bolivia.
US ITC to conduct sunset review
The US International Trade Commission ITC voted to conduct full five year sunset reviews concerning the countervailing duty orders in imports of certain carbon steel products from Belgium, Brazil, France, Korea, Mexico, Spain, Sweden, and the United Kingdom, and the antidumping duty orders on imports of these products from Australia, Belgium, Brazil, Canada, Finland, France, Germany, Japan, Korea, Mexico, Poland, Romania, Spain, Sweden, and the United Kingdom.
The Commission will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and
The Commission will issue a report after it completes its reviews.
Japan & Mongolia to undertake coal survey in Gobi desert
It is reported that Japan & Mongolia will sign an agreement to conduct a joint survey of coal reserves in the eastern part of the Gobi Desert in Mongolia with the Mongolian government. The survey is to be conducted for about four years until the end of March 2010 and will cover about 60,000 square kilometers of the eastern part of the Gobi Desert stretching southeast from Ulan Bator.
The two governments will examine geologic structures and coal reserves and quality. Once the presence of coal reserves is confirmed, preferential rights will be given to Japanese firms to negotiate with the Mongolian government.
CVRD opts out of Australian Aurukun bidding
CVRD has dropped out of the bidding process for an estimated $1.5 billion bauxite and alumina concession in the remote Cape York region of northeastern Australia. "We did not submit any proposal to the Queensland government for the Aurukun concessions," CVRD CFO Mr Fabio Barbosa said.
Alcoa World Alumina & Chemicals, a unit of US based aluminum giant Alcoa Inc, said it also decided not to meet the state government's January 30 deadline for lodging proposals.
Some analysts said they weren't surprised by the withdrawals given question marks over the deposit's quality, potentially complex indigenous issues and the feasibility of building a US$1 billion refinery in current tight labor and equipment markets.
A Queensland government spokesman said that it is evaluating proposals, although he wouldn't say how many had been received. Authorities are due to release a shortlist of would-be concessionaires late this month after seeking advice from indigenous groups. Other companies reported to have lodged expressions of interest include BHPB, Aluminum Corp of China Ltd Chalco, Mitsubishi Corp, Norway's Norsk Hydro ASA, Russia's Sual Group, India's Hindalco Industries, Canada's Alcan Inc. and InterTech Systems.
The state government is keen to get the mine and alumina refinery project back on track after reclaiming the Aurukun leases in 2004 from Alcan on the basis that the company failed to act on a 1988 development deadline.
Siemens to supply electrical equipment for Baotou plate mill
The Siemens Industrial Solutions and Services I&S Group has received an order from Baotou Iron & Steel (Group) Co Ltd to supply the electrical equipment for a new plate mill that is being constructed. This includes the automation system and parts of the power and drive systems for the rolling mill. The order is valued at around Euro 11 million. Commissioning is scheduled for the beginning of 2008.
Baotou Iron & Steel (Group) Co Ltd operates an integrated iron and steel works in Baotou in the autonomous province of Nei Monggol Inner Mongolia, for both long products and flat products. With the new plate mill, designed for an annual production capacity of approximately 1.4 million tonnes, Baotou intends to further expand its product range to include plates with a thickness of between 5mm to 100 millimeters and a width of up to 3800 millimeters, as required for gas and oil pipelines, pressure vessels and bridge structures.
The first extension stage of the rolling mill comprises a reheating furnace, two plate rolling stands, a rapid cooling facility and a hot plate leveler. For this, Siemens is supplying the automation system, the sensors, the AC main drive converters and the dynamic compensation system. Process computers control and monitor the entire production sequence. The automation system comprises the basic automation including the technological control systems and the HMI equipment. All the process parameters will be kept within tight tolerance limits by a combination of analytical process models and neural networks. Functions such as Plan View Control, thermo mechanical rolling and the production of plates with variable thickness are also part of the Siemens solution. A rolling-sequence control system enables nested multiple-plate rolling. This will enhance the productivity of the rolling plant. The system can be adapted flexibly to changes in the range of products or quality requirements, thus safeguarding the original investment. A higher-level material tracking system ensures the smooth flow of materials and the correct correlation of plates and process data at all times.
Siemens is also coordinating the engineering work and installation of the electrical equipment for the whole rolling mill. This also includes integration of automation packages for the heating furnaces, the rapid cooling facility and the levelers, which will be provided by other suppliers. All the components and systems used are part of Siroll PM, Siemens' integrated solution for plate mills.
Including this project, there are currently ten plate mills equipped by Siemens in the implementation phase, of which eight are in China and two in India.
Ipsco scores record annual profit
Canadian Ipsco Inc has achieved a record annual profit of $585.8 million even as fourth quarter earnings declined from the same period the year before. Ipsco said earnings in the fourth quarter were $170.2 million, which fell below the year earlier profit of $199.1 million.
The Illinois-headquartered firm, formerly based in Regina, operates steel mills as well as pipe mills for a surging energy industry in the United States and Canada. About one-third of the company's total shipments last year were tubular products.
"While achieving the best year in our history, we remained well positioned to perform in a strong energy and capital goods market going forward," CEO Mr David Sutherland said.
EU average carbon steel prices forecast from MEPS
MEPS say that most first quarter business in the flat products sector has been completed and they envisage that no major changes next month. Any movement in the balance of trade is not likely to become apparent until the start of the second trimester. MEPS still believe that local consumption will continue at the level in the previous year. There are prospects of a marginal improvement now that the stock overhang has been largely reduced. However, an increase in the volume of third country imports entering the region in the second and third quarters of the year will most likely, offset any price benefits which may have accrued in recent months.
Consequently, MEPS maintain their forecast that transaction values will drift lower into the autumn. Towards the end of 2006 the global oversupply situation should ease as Chinese mills reduce their rates of growth in output to more closely match domestic demand.
Demand for most long products will remain sluggish due to the difficult winter weather conditions. MEPS, therefore, still anticipate further transaction price slippage in Euro terms over the next few months with a modest revival up to the end of the autumn period in both steel consumption and pricing. The low priced long product categories are less affected by the threat of Asian imports. High freight costs mitigate against transporting low margin products for construction from the Asian continent. As winter approaches in 2006, MEPS expects a fall in prices as demand slips away again.
Belgian regulator gets Mittal's draft Arcelor bid
Belgium's financial regulator said that it has received from Mittal Steel a copy of its draft prospectus for its bid to acquire rival Arcelor "The CBFA has received the draft prospectus," said Mr Luk Van Eylen, spokesman for the regulatory body.
The regulatory body, known as the CBFA, is to review the draft along with its peers in other countries where Arcelor is listed.
Phase 3 of MSC to be commissioned March 2006
Phase 3 of Mobarakeh Steel Complex is to be inaugurated by second half of March 2006. The commissioning would boost CR production capacity from current 750,000 tons to 1.7 millions, development and design deputy at MSC Mr Mohammad Rajaii said. Iranian President Mr Ahmadinejad and one of his deputies will be present in the inauguration ceremony to be held in Isfahan.
This phase also includes increasing steelmaking capacity to 4.2 million tonnes and the total project cost is estimated at $250 million plus.
EAF optimization systems for ACB in Sestao Spain
Spanish mini-mill Acer Compacta Bizkaia is to install two Techint Goodfellow off gas based process control systems Expert Furnace System Optimization Process EFSOP for their EAFs at Sestao, Spain.
The new systems measure and analyze EAF off gases like CO, CO2, H2 and O2 continuously at the fourth hole for real time closed loop process control of EAF steelmaking. They will incorporate continuous off gas based closed-loop process control and water leak detection.
TGTI is a Techint Technologies company based in Mississauga, ON, that supplies the Goodfellow EFSOP technology, an off-gas-based process control system for EAFs.
ACB is an Arcelor group operation.
BHPs Australian nickel mine stays shut for probe
BHP Billiton announced that it has sufficient stockpiles of nickel concentrate to ride out the temporary closure of its Leinster nickel mine in the Australian outback. The mine remains shut, three days after a worker was killed in an explosion, pending the outcome of a probe by Western Australian state investigators, a company spokesman said. The man died on Friday after an underground blast at the mine.
The spokesman said at this stage it was "impossible to say when the mine would reopen," but that there was no need to declare force majeure on shipments of concentrates from the mine. "We have enough material so that is not an issue," he said.
The spokesman said that besides "ample" stockpiles at the Leinster lode, the company could also turn to its neighboring Mount Keith and Kambalda mines for material, if needed.
Leinster, in operation since 1979, can produce 40,000 to 45,000 tonnes of nickel in concentrate a year, BHP Billiton said.
Need for strong EU role says head of Unice Employers Federation
Observing that there had been no meaningful political answer to Mittal steel's bid for Arcelor, Europe's leading business lobby has said industrialists want stronger political leadership in view of such sensitive takeover battles. Politicians have a duty to give a strong signal on "symbolic" industrial questions which aroused "the emotion" of the public, Mr Ernest Antoine Seilliere said. Mr Seilliere, head of the Unice Employers' Federation, told Financial Times there had been "no meaningful political answer" to the Mittal bid at a European level, only national responses from Belgium, France, Luxembourg and Spain.
Far from arguing that politicians should steer clear of corporate takeover battles, Mr Seilliere said that companies would leave Europe unless they could rely on a stronger sense of political direction in such matters. He told the daily the Mittal Steels bid had exposed the "incredible" vulnerability of governance" in Europe, adding that, without a stronger EU voice, "business will become less interested in what is happening in this part of the world."
The French business leader, who comes from a family of steelmakers in the Lorraine region, said steel was a symbolic industry whose future had sparked great passion. The Mittal bid was "a symbol of globalization against a symbol of Europeanization."
Rolled steel imports fell 26% last year
Precision Metalforming Association PMA president Mr William E Gaskin called the 26% decline in imports of hot rolled and cold rolled steel in 2005 compared to 2004 a serious concern for US companies who need access to steel imports. Reduced imports along with lower total production by domestic steel producers in 2005, is an indicator that some steel products may be in short supply, said Mr Gaskin. Given continued robust profits among US steel companies, American steel consumers should be able to access the imports they need so that both steel producers and steel consumers can prosper.
Metalforming companies are under ferocious price pressure from their customers, so they need a ready supply of high quality steel at globally competitive prices. Mr Gaskin noted that PMA members are forecasting modest growth during the first quarter of 2006 and higher imports in December may help US steel consuming industries regain the ability to access the raw material they need to stay competitive.
According to preliminary data issued last week by the US Department of Commerce, imports of hot rolled and cold-rolled steel for all of 2005 totaled 4.563 million tonnes down by 26% from 2004 levels of 6.203 million tonnes. Total imports of all steel products also dropped by 12% in 2005 compared to 2004 levels. Imports totaled 28.5 million tonnes in 2005 compared to 32.5 million tonnes in 2004.
Steel Dynamics plans $40 million Jeffersonville expansion
Steel Dynamics is considering an investment of $39 million to $40 million in building expansion and new steel processing equipment at its plant at Clark Maritime Centre, said Mr Barry Cahill, director of redevelopment for the city of Jeffersonville. Steel Dynamics is seeking 10 year tax abatement worth an estimated $2.35 million for the project, Mr Cahill said.
The company bought the steel coating plant from GalvPro II LLC, in 2003. It currently is capable of producing 300,000 to 350,000 tons of HDG a year.
Liberian government to reviews Mittal Steel contract
A motion to review the Mittal Steel Contract to carry out mining in the country has been passed by the 52nd National Legislature of Liberia. The House took the decision last week following a complaint by the Forestry Workers and Allied Union of Liberia against the Mittal Steel, requesting that the august body review the Mittal Steel contract on ground that it was signed 'under dubious means'. Recently at a news conference, President Ms Ellen Johnson Sirleaf vowed to review all concessional agreements and contracts signed by the former NTLA.
The former NTGL Chairman, Mr Charles Gyude Bryant awarded the contract to Mittal Steel to carry mining responsibility over the LAMCO Mining Company for the mining of Iron Ore. Mittal Steel early last year entered into a mining development agreement with the Liberian Government. Agreement was immediately ratified by the NTLA, which gave Mittal Steel access of over 1 billion metric tones of rich iron ore reserves in Western Liberia.
After the signing of the agreement, NTGL Mr Minister Jonathan Mason had said "We have been looking forward to this moment for a long time. Liberia has a long tradition in iron ore mining and used to export more than 15 million metric tonnes of ore annually. Unfortunately, due to the war, the mines were abandoned and most of the infrastructure destroyed. With Mittal Steel, we are confident that we have found a committed and financially strong partner with the necessary technical and social competence to rehabilitate this industry and to provide essential employment in Liberia."
Mittal Steel has planned to approximately spend over $900 million during its lifetime of the project. The cost of the project will cover developing of the mines sectors, including railway and port infrastructure and provides means for community development.
Palladon announces Cedar iron ore project financing
Palladon Ventures Ltd announced that its subsidiary Palladon Iron Corporation, has agreed to project financing terms that will allow for the start of construction on a 2 million tonne per year iron ore facility at its iron property in Cedar City, UT. PICs 50% JV partner Luxor Capital Partners LP has agreed to provide equity funding for the first $2mm of project initial financing. The proceeds will be used to secure mineral processing equipment and for mine site preparation.
Mr Don Foot, President & COO of Palladon Ventures Ltd commented, "We are thrilled to have a committed partner who will enable Palladon to proceed with the construction of an operating mining and processing facility on an expedited schedule. This transaction also provides the opportunity of maintaining our interest in Palladon's Iron Mountain project."
Ryerson to Sell Former Integris Units
Metal processor and distributor Ryerson Inc said that it is selling some of the businesses it acquired as part of last year's buyout of Integris Metals Inc. The buyer, a Texas metals service center called Energy Alloys LLC, is paying $45.5 million in cash, $4 million in debt, and assuming less than $1 million in liabilities for assets of Ryerson's U.S. oil and gas, tubular alloy and bar alloy businesses in Oklahoma, Texas and the Gulf Coast.
"The oil and gas market products are not a strategic fit with Ryerson's core business," Ryerson said in a statement. The company received the three operations as part of its acquisition of Integris Metals, a Minneapolis-based metals processor, in January 2005.
Houston-based Energy Alloys is buying the businesses to complement it operations, Ryerson said. The three locations posted sales of about $80 million in 2005 and were profitable.
Australian Bulk Minerals plans to close Tasmanian mine
Australian Bulk Minerals plans to close Savage River iron ore mine on Tasmania's west coast in three years because it is nearing the end of its economic life. The mine employs 280 people.
MD of Australian Bulk Minerals, Mr Dave Sandy, is unsure of the mine's future after that. "That's a very difficult question to answer. Certainly in the current climate and at the current prices there is ore that's economic," he said. "But if we go back to the long term average prices we've seen over the last 10-15 years then it's really not possible to get any more ore out of it that's of any economic value."
Czech 2005 steel output drops 10% due to inventory from 2004
Steel production in the Czech Republic decreased by 10% on the year to 6.2 million tonnes last year, Mr Miroslav Svoboda of the association Hutnictvi Zeleza has told local media. He attributed the decline to sale of inventories that customers made in 2004. The overall consumption of steel products in 2005 increased by 0.4% last year.
In 2005, the sector was influenced by imbalance caused by high stocks of steel products with customers at the end of 2004 that resulted in a price decline especially in the first half of 2005, Mr Svoboda said. As a result, production decreased, and prices stopped falling in the third quarter to reach a new balance at the end of the year, he added.
Overall steel consumption in the Czech Republic amounted to 5.2 million tonnes last year. Per capita consumption exceeded 500 kilograms of steel products, compared with 221-284 kilograms in other Central European countries Hungary, Poland and Slovakia in 2004. The world average is 168 kilograms per capita.
EDB workshop on Romelt based steel-making
Pakistans Engineering Development Board will organize a workshop for local industrialists so that they can explore the possibility of producing steel through the Romelt process, a latest technology developed by a Russian company. The workshop is being organized in Lahore on February 11.
It is reported that a Russian company Tyashpromexport, had developed a new technology, Romelt, which uses lean iron ore with iron content not less than 30% for iron production.
EDB is responsible for the development of the engineering sector of Pakistan and connecting it to the global markets. EDB believes that for a globally competitive engineering industry a sound and competitive steel sector is the pre-requisite. The main focus of the EDB is to put up steel mills in the country that are mainly based on indigenous iron ore.
Fortescue to commence construction
Fortescue Metals Group Ltd has received approval from the Port Hedland Port Authority for the commencement of construction at Fortescue's Pilbara Iron Ore and Infrastructure Project. The license was signed on Friday afternoon last week by Fortescue's Mr Andrew Forrest and Mr Andre Bush who is the CEO of the Port Hedland Port Authority.
Fortescue has finalized the requisite environmental consents required under the PHPA license and is concluding all other approvals for the start of works scheduled for this week. Port Infrastructure represents the longest lead time item within Fortescue's construction program.
The commencement of preliminary works as provided for under the PHPA license was necessary for Fortescue to issue the dredging contract, which is now imminent. The site works will focus on land clearing around the planned stock pile area together with the construction of bunding to provide for the deposit of dredging material. The early start of works has been taken to ensure the integrity of Fortescue construction timetable.
Jackson and LionOre finalize Kalgoorlie nickel agreement
Jackson Gold Ltd and JV partner LionOre Australia Pty Ltd have finalized an agreement to buy into Placer Dome Australia Pty Ltd's Kalgoorlie nickel project adjacent to LionOre's Black Swan nickel project. LionOre has the right to spend $6 million on in-ground nickel exploration within four years to acquire a 60% interest in Jackson's nickel rights.
The Kalgoorlie Regional Nickel Project agreement includes nickel exploration and mining rights over 700 square kilometers of highly prospective ground in the Kanowna-Paddington region.
LionOre will immediately assume full management of exploration for nickel on Jackson's tenements and those Placer tenements where Jackson owns 100% of the nickel rights.
BlueScope appoints Ms Kathryn as president for Asian markets
BlueScope Steel announced that Ms Kathryn Fagg President of Australian Building and Logistics Solutions has been appointed as President of Asian Building and Manufacturing Markets, effective 1 March, following Mr Mike Courtnall's planned retirement on 28 February, 2006. Ms Fagg, will continue running BlueScope Steel's domestic building products and solutions businesses, including BlueScope Lysaght, with a sharp focus on better integration and business synergies across the Company's Asia Pacific footprint.
Mr Kirby Adams MD and CEO said: "Kathryn will bring a continued strong marketing focus and energy to this crucial international role, as BlueScope moves into the next phase of development in this dynamic growth region. Her skills and experience in promoting the BlueScope Steel brand of premium steel solutions will be invaluable. BlueScope Steel is Australia's largest investor in this region. Our businesses and operations from India through to Thailand, Malaysia, Indonesia, Vietnam, and into China are recognized as world class and as they mature and become more aligned, they will give us a unique position within the global steel industry."
Mike Courtnall, President Asian Building and Manufacturing Markets, will retire from his position with the Company and the Executive Leadership team effective 28 February. Mr Courtnall has been with the Company for more than 20 years and responsible for the Company's Asian steel businesses since 2000. He previously held positions within the BHP Billiton Group including President, Coated Steel Asia and Export, Group General Manager BHP Steel Americas and General Manager Operations International Division.
BlueScope Steel is an international flat steel solutions company, with a manufacturing and marketing footprint spanning Australia, New Zealand, Asia and North America. The Company is the global leader in the provision of high quality metallic coated and painted steel products for the building and construction sector, and also supplies customers in the general manufacturing, automotive and packaging sectors.
"Energy and Coal of Russia" forum opened in Moscow
An international forum "Energy and Coal of Russia" opened on February 6 in Moscow. The forum is organized with the support of Russian state authorities and public associations including the Ministry of Industry and Energy of Russia, "Roszarubejcentr" under the MFA of Russia, the State Duma and the Federation Council, the Federal Energy Agency, the Russian Union of Industrialists and Entrepreneurs, the Association of Independent Gas Producers, Association of Russian Mining Equipment Producers, and others.
International organizations will participate in the forum as well: the World Coal Institute, the International Energy Agency, the European Commission's Delegation Russia and the UN ECE Ad Hoc Group of Experts on coal's role in sustainable development.
The international forum "Energy and Coal of Russia" will serve as a place for meetings with state authorities, leading Russian and foreign energy companies, coal producers and consumers, traders, mining equipment producers, railway operators, and port forwarders. Leading companies from Russia, Kazakhstan, Ukraine, UK, Germany, other European and Asian countries, USA, Canada, and South Africa are expected to participate.
Olympia Resources to supply zircon under long-term contract
Olympia Resources announced that it has signed a long-term zircon supply contract for its flagship Keysbrook mineral sands project located 70 kilometers south of Perth in Western Australia. The contract, for 6,000 tonnes per annum, is with a major European zircon miller and represents half of Olympia's zircon production from the Keysbrook mine site.
Olympia's MD Mr Peter Gazzard said based on today's zircon prices, the contract represented approximately AUD$48 million in total revenue over the estimated 8 year life of the Keysbrook mine. The estimated total revenue for all titanium and zircon products over the mine life is AUD$317 million".
Zircon is extremely hard and resistant to corrosion. It is used in the steel industry to line blast furnaces, in the ceramics industry, and in engines, electronics and spacecraft. Zircon products are also used in computer disc drives, for lightweight warmth and protection in clothing, and in many domestic products such as ballpoint pens and wear-resistant knives.
Rautaruukki merges three subsidiaries
The Board of Directors of Rautaruukki Corporation approved plans to merge the company's fully owned subsidiaries Velsa Oy, Etnar Ab, and PPTH Steelmanagement Oy and its subsidiaries, with the parent company. All the subsidiaries will be merged without paying any merger consideration and the goal is to complete the mergers by 1 August 2006. The companies will use the Ruukki marketing name and logo. The mergers will simplify the Group structure and cut fixed costs. The Group has been reducing the number of legal entities since 2004.
The PPTH sub-group is the leading constructor with steel in the Nordic countries and Rautaruukki Corporation acquired its full share stock on 18 January 2006.
Velsa Oy is the leading manufacturer of cabins for mobile machines in the Nordic countries and was acquired by Rautaruukki Corporation on 1 November 2004.
Etnar Ab is a real estate company.
UMMC to invest $600 million in 2006
Urals Mining and Metallurgical Company UMMC, Russias No2 copper producer, plans to invest more than $600 million in its enterprises this year, Mr Konstantin Plekhanov told media. Mr Plekhanov said the bulk of the money would be invested in upstream operations, including the completion of a mine at the Tarnerskoye field, renovation of a concentrating plant at UMMC's Svyatogor unit in the Sverdlovsk region and commissioning a new concentrating plant at the Rubtsovskoye field in the Altai territory.
However $90 million will be spent on an upgrade of the Sredneuralsk smelter, which Mr Plekhanov said ought to be rounded off this year. Mr Plekhanov said UMMC decided at the start of this year to build a zinc smelter in the Sverdlovsk region. "We're currently looking at this in more detail. Kirovgrad is the most probable location," he said. UMMC is now producing more zinc in concentrate than its existing smelter, Elektrotsink in Vladikavkaz, is able to handle. "Production of zinc in zinc concentrate will grow even more as we put new fields on stream, hence the need to build additional capacity to produce metallic zinc," Mr Plekhanov said.
UMMC, which combines about 30 enterprises in ten Russian regions, controls about 40% of Russia's cathode copper production, a quarter of the domestic market for nonferrous rolled products and more than half of the European market for copper powders.
Foundation Coal announces organizational changes
Foundation Coal Holdings Inc announced the resignation of Mr John R. Tellmann senior VP of Sales and Marketing effective immediately and that Mr Scott Pack, VP of Sales and Marketing, will assume the day to day responsibilities of the position on an interim basis.
"We thank John for his many contributions during six years of service at Foundation Coal," said Mr James F Roberts, president and chief executive officer. "We wish him well in the future."
Foundation Coal Holdings, Inc., through its affiliates, is a major US coal producer with 13 coal mines and related facilities in several states including Pennsylvania, West Virginia, Illinois, and Wyoming. Through its subsidiaries Foundation Coal produces approximately 67 million tons annually, largely for utilities generating electricity.
