February, 08 2006
BCCL registers Rs 23.89 crore profit in 10 months
CILs unit Bharat Coking Coal Limited, which has been making losses since its inception, has registered a profit of Rs 23.89 crore in the last ten months of the current financial year. BCCL CMD Mr Partha Bhattacharji told newsmen that even after meeting the burden of 7th Pay Agreement, the company was likely to earn Rs 70 to 80 crore in the current fiscal. The company had incurred a loss of Rs 270 crore in the last fiscal, he said
CMD said that the company achieved an extra income of Rs 420 crore this year which came from E-marketing of coal (Rs 216 crore), extra production of coal and sale of washed coal (Rs 204 crore).
Mr Bhattacharji said that the company increased production by 2.73 % during the period after facing downfall continuously for the last six years.
TATAs talks with Bangladesh end without agreement
It is reported that the fourth round of negotiations between the Bangladesh government and the TATA Group ended yesterday without any fruitful result as they failed to reach a common platform on the gas price issue. TATA had submitted their proposal on gas prices but the government team did not accept the prices saying that those are much lower than the government's expectation.
A government high official who participated in the meeting said the prices proposed by the Tata Group are three to four times lower than what the government is demanding.
TATA Sons Executive Director Alan Rosling said the government officials have sought imaginary prices for gas, which are unrealistic. "I think Petrobangla's expectation is different from the reality. There is a wide gap between the two parties," he said after the meeting. Replying to a question about their next plan, he said, "I think nothing is finished yet."
Tata Group Resident Director Manzer Hussain said they will wait for further reaction from the government. "We have placed a separate set of prices for gas for our steel, fertilizer and electricity projects which are much higher than the prices practiced internationally." Now it depends on the government whether it really wants to sign the investment agreement, Mr Manzer said.
Energy Ministry Adviser Mr Mahmudur Rahman said if the TATA Group remains rigid on its 'unrealistic' demands the government will not be able to reach an agreement with it. He said the final decision will come from government high-ups. "It needs a political decision to sign such an agreement. We will send a summary of the negotiation to the ministry committee headed by the industries minister."
L&Ts ECC bags order for transmission line in Abu Dhabi
Larsen & Toubro has bagged an Rs 144 crore order from the Abu Dhabi Water and Electricity Authority for the construction of a 85 kilometer long 220 KV transmission line. This contract will have to be completed by January 2008.
The contract which will be executed by L&T's Engineering Construction & Contracts division ECC involves completion of a 220 KV grid inter-connection by connecting Sweihan 440/220 KV grid station with Al Hayer 220 KV grid station and to Ramah/Al Khazna 220 KV OHL. The project also involves live line replacement of existing earth wire and 8 fiber optical fiber ground wire OFGW by a new 32 fiber OPGW for a length of 92 kilometers in three different circuits.
Pratibha Industries to enter in gas & oil pipeline segment
Pratibha Industries, a specialist in water supply and distribution systems and environmental engineering, now plans to enter the engineering, procurement and construction business for executing oil and gas transmission projects.
It also plans to diversify into manufacturing and coating facility for producing spirally welded steel pipes used in the transmission of water, oil and gas.
Its clients include several municipalities and city development authorities. Its other clients include the Municipal Corporation of Greater Mumbai and Pune Municipal Corporation, Karnataka Water Supply Drainage Board and the Delhi Jal Board. Its order book stands at Rs 560 crore as of 31 December.
Mr LN Mittal to meet EU parliament head on Arcelor bid
Steel magnate Mr LN Mittal brings his campaign to promote a $24 billion bid for Arcelor back to the European Union's headquarters in Brussels on Tuesday, after visiting four capitals in the past week. Mr Mittal, whose bid has been met by political opposition in Luxembourg, Madrid and Paris, is scheduled to push his case to create a steel colossus with Mr Josep Borrel president of the European Parliament in Brussels
Mr Mittal has already met several officials of the EU's executive Commission about Mittal Steel's bid to acquire Arcelor. The officials, including Competition Commissioner Ms Neelie Kroes, have said they would judge the deal strictly on competition grounds and reminded national capitals that their powers to block it were limited.
Arcelor rumored to be thinking of buying US Steel
Shares of US Steel rose by 6% on speculation that Arcelor s interested in acquiring it to thwart a takeover bid by Mittal Steel. US Steel spokesman Mr John Armstrong declined comment.
But sources familiar with the matter told Reuters in Europe it was unlikely Arcelor would consider a cash takeover offer for US Steel to defend itself from a takeover by the world's biggest steel manufacturer Mittal. Reuters reported an Arcelor board member as saying it was not discussed at the last board meeting and one banker called such a move "ridiculous."
Arcelor is reported to be examining the possibility of acquiring U.S. Steel in order to thwart Mittal Steel's hostile bid for the French steel maker, the Frankfurter Allgemeine Zeitung reported, citing sources. It said Arcelor is also studying the possibility of paying cash, if it were to acquire US Steel. By buying US steel, Arcelor would increase significantly its own debts and would raise cartel-related issues which would make it an unattractive target of acquisition, the report said. In addition, swallowing a combined Arcelor-U.S. Steel would raise U.S. government antitrust concerns because of Mittal's existing U.S. holdings, said Charles Bradford of Bradford Research. Mittal owns mills formerly operated by LTV Steel, Bethlehem Steel, Weirton Steel and Inland Steel.
Arcelor had originally considered buying Nucor, the healthiest North American steelmaker, but finally decided against the acquisition in view of Nucor's high stock market valuation of over $12 billion, the newspaper reported, quoting investment banking sources.
It said that Arcelor refused to comment, arguing it did not want to reveal to Mittal its plans to avert a takeover.
Arcelors bid for US Steel in an effort to fight Mittal Steel's bid would be "contradictory" to its strategy to invest in low-cost, high growth countries.
BlueScope cuts forecasts on China steel glut
BlueScope Steel Ltd, Australia's largest steelmaker, cut its full year profit forecast by as much as 35% because of a glut from China. BlueScope said prices have fallen by 15% to 20% as steelmakers in China raised exports forcing regional rivals to cut prices.
The oversupply from regional steel production has pushed down commodity steel prices and put unwarranted demand tension into raw materials which is hurting global steel makers,'' said BlueScope's CEO Mr Kirby Adams
The Australian steel pricing environment is weak, also we're seeing huge oversupply in the Asian region in hot-rolled coil which is impacting prices,'' said Mr Atul Lele, who helps manages the equivalent of $224 million at White Funds Management in Sydney.
Arcelor could use Poison Pill under Luxembourg Law
Luxembourg accelerated a plan to introduce a takeover law that would help Arcelor to fend off the hostile bid by Mittal Steel. The law would permit companies to erect takeover defenses, such as a so called poison pill, or to find another buyer to fend off unwelcome bids without shareholder consent. The bill includes provisions to protect minority shareholders and sets procedural time limits for takeover offers, and it also sets out the role of regulators in more detail.
Today's proposal would bring Luxembourg in line with a 2003 EU law on takeover bids which allow each government to decide whether to permit buyout defenses including poison pills, in which companies dilute the suitor's stake by issuing stock cheaply to other investors. Governments have until May 20 to adopt the law. Among governments taking action on the measure so far, Germany last month proposed to let companies maintain takeover defenses. The EU law still mandates equal treatment of shareholders in a takeover and requires boards to act in the interests of the company when considering a bid.
The government, which has a majority in the 60 seat national Parliament, plans to have the law approved by mid April, government spokesman Mr Guy Schuller said. The law will be in vigor before'' the Mittal takeover process is over, Mr Schuller said.
Under the draft bill, Arcelor's board can undertake measures to react to the offer without asking for the consultation of general assembly of shareholders,'' Justice Minister Mr Luc Frieden told a news conference in Luxembourg. Mr Frieden asked Mittal and Arcelor to abide by the planned law. It is not an anti Mittal law or a pro Arcelor law, and it's not a pro Mittal law or anti Arcelor law,'' Mr Frieden said. It's not the role of the government to interfere in international takeovers. I have to make sure that takeovers occur in an organized manner.'' Mr Frieden said the government accelerated the draft bill's presentation because of Mittal's bid. We started our work a few months ago. It's obvious that the recent events have accelerated this work,'' Mr Frieden said.
Kuzbassrazrezugol to develop Kemerov region
The administration of the Kemerov Region and the Kuzbassrazrezugol coal company signed an agreement on cooperation in 2006 on Tuesday. Under the document, the company, responsible for a quarter of all coal mined in the Kuznetsk coal basin Kuzbass, will invest 1.1 billion roubles in implementing national projects to be translated into life in the region, regional Governor Mr Aman Tuleyev told a news conference.
According to the governor, these funds will be channeled to finance grants in the sphere of education, for repairs and technical equipment of schools and hospitals. Besides, the company will start building a residential area in the regional administrative center Kemerovo where it is planned to turn over for occupancy 30,000 square meters of living floor space.
We also agreed that Kuzbassrazrezugol will render assistance to the regional administration and will be a guarantor for getting a 200-million credit to develop various services in the future residential area, Tuleyev explained.
Kuzbassrazrezugol Company incorporates 11 coal strip-mines in the region and has over 20,000 people on its payroll. These enterprises extract annually over 40 million tonnes of coal, half of which is exported. Under the signed agreement, the company will invest 3.5 billion roubles in the development of production in 2006.
Azovstal to start road show for Eurobonds Issue
It is reported that Ukrainian steel producer Azovstal will start a road-show for its Eurobonds issue. The first event is scheduled for February 8 and will take place in Manila. It will then continue in Hong Kong, Zurich and Geneva. The company will finish the road-show on February 14th in Frankfurt and London. ING and Moscow Narodny Bank are the lead-managers of the Azovstal's debut Eurobond issue.
On February 3rd, Standard & Poor's assigned B- long-term rating with positive outlook to the Eurobonds. Experts predicted in November 2005 that Azovstal could issue Eurobonds. They pointed out a positive credit history of the enterprise. At that time, the company attracted two US$100 million syndicated credits in 2004 and 2005.
Earlier the owner of Azovstal, System Capital Management, announced the modernization of the enterprise. It is expected that SCM will invest about US$1.7 billion in Azovstal. In December, SCM completed the merger of Azovstal with Markochim, a by product coke plant.
Hyundai Heavy to double steel plate imports from China
Hyundai Heavy Industries Co, the world's top shipbuilder, said that it will double its annual imports of steel plates from China this year because of their improved quality and competitive prices. Hyundai Heavy said it has reached a preliminary agreement with top Chinese steel maker Baoshan Iron & Steel Co on the supply of 180,000 tons of steel plates annually, starting this year. "Chinese products' quality has dramatically improved and they are about 30 per cent cheaper than Japanese products," company spokesman Kim Jun-ho said.
The supply will raise Hyundai Heavy's imports from China to 500,000 tons this year, 17% of the company's projected annual demand of 3 million tons, the company said. The amount will be 2.5 times more than the 200,000 tons Hyundai Heavy imported from China last year.
Hyundai Heavy bought about 55% of its annual needs from domestic suppliers such as POSCO last year, about 30% from Japan and the remainder from various countries, including China, the company said.
POSCO rearranges its sectors Posco rearranges its sectors
POSCO is revising its corporate structure, dividing the current two major divisions into five sectors, in a bid to strengthen corporate responsibility and transparency. The company announced that the new divisions would be production technology, marketing, stainless steel, planning and financial affairs, and human resources. The company said it hopes the new management structure will allow for quicker decision-making and enhance efficiency
Each sector will be supervised by presidents, vice presidents or executive directors, who will assume full responsibility for all corporate decisions. They will also take responsibility for management achievements.
North American average carbon steel forecast from MEPS
MEPS has forecast that in the flat products sector, the impact of higher import volumes will not be significant until later in this quarter when negotiations for the second trimester are undertaken. However, next month, the mini mills will be under severe pressure to reduce transaction values because substantial reductions in the scrap surcharge are proposed under the current system. It will be difficult for them to increase basis prices by an equivalent amount. Real demand should be fair in both Canada and the US through 2006. However, we expect the current tight supply situation to be transformed into excess as imports flood in during the second and third quarters.
MEPS maintain their predictions of steady price erosion in this region for the next nine months. The rate of decline is not likely to be as savage as in the period September 2004 to mid 2005. The price decrease will be most pronounced in the supply of commercial grades, which can readily be produced by Asian mills and require the minimum amount of certification and testing. Prices for the superior grades should hold up better than standard specifications.
Demand for long products should be reasonably firm across the region throughout 2006. Nevertheless, price decreases are likely next month as scrap surcharges decline in the US. Further reductions are probable for the wire and bar products over the following few months due to a rise in import volumes and high inventories. Later in the year MEPS expect prices to move up marginally as consumption increases outstrip the escalation in imported material. This, however, is heavily dependent upon the actions of Chinese producers who may oversupply the Asian market, forcing mills in some countries to try to export their excess.
Talks on for sale of Kuzbass coal producer to NLMK
Talks on the sale of Kuzbass coal producer Prokopyevskugol to Novolipetsk Steel are ongoing, Mr Andrei Bokarev chairman of the board of directors at Kuzbassrazrezugol Coal Company told media. Commenting on press reports that Prokopyevskugol and coke producer Altai-Koks had been sold, Mr Bokarev said no purchase-sale agreements had yet been signed. Mr Bokarev said he thought the issue would be resolved in the next two months.
He said Prokopyevskugol's owners wanted the company to be sold in a single package together with Altai-Koks. Novolipetsk Steel has been discussing the possibility of swapping its shares in seaports for the assets. But Bokarev said the negotiations today concerned only the sale of Prokopyevskugol and Altai-Koks as assets that can be sold in a single package.
Prokopyevskugol produces about 5 million tonnes of coking coal per year. Altai-Koks is capable of producing more than 2 million tonnes of coke per year. Prokopyevskugol Management Company belongs to the owners of Kuzbassrazrezugol.
CVRD to export 9 million tonnes of Mozambique Coal
CVRD plans to export 9 million tons of coal per year from Mozambique once its Moatize project begins operating next year, according to the country's deputy mines minister, Mr Abdul Razak Noormahomed. CVRD will finish a feasibility study this year and start production at the $1 billion project in 2007, Mr Noormahomed said. CVRD bid $123 million in November 2004 to beat BHPB, Anglo and Rio Tinto Group for the right to develop Moatize. The area is estimated to contain 2.4 billion tons of coal, Vale said in November 2004.
The coal is likely to be shipped through a new terminal at the port of Nacala, via a rail link through the neighboring southern African country of Malawi, Mr Noormahomed said. They've practically made the decision, though they're still in talks with the Malawi government,'' he said.
CVRD declined to comment on Mozambican coal exports Our Mozambique coal project is still in the viability study phase and until those studies are complete, Vale cannot comment on these kinds of issues,'' Mr Fernando Thompson, a press spokesman for CVRD said
Mozambique wants to develop the deposit to increase exports of thermal and metallurgical coal, known as coking coal, and to provide fuel for a power station to export electricity to neighboring countries. Annual production from Moatize will total 21 million tons, of which 4.5 million tons has been allocated to fuel a planned 1,500- megawatt power plant, Mr Noormahomed said.
US issues emergency mine safety rules
Coal mine operators will soon have to store extra oxygen supplies underground and let federal officials know about accidents more quickly, the federal Mine Safety and Health Administration said. The agency expects to publish a new emergency rule for mines within the next two weeks, according to MSHA spokesman Mr Dirk Fillpot. The mine agency issues emergency rules only rarely. They go into effect immediately, which is a departure from the typical, lengthy federal rulemaking process.
Miners are currently required to wear oxygen packs that provide about one hour's worth of air, but the new rule would force companies to store additional oxygen supplies in a readily accessible area for every miner. The new rule also would require coal companies to notify the mine agency within 15 minutes after an accident occurs.
A new West Virginia law, passed in a single day, also requires extra oxygen in that state's mines. In addition, the state law requires coal companies to provide miners with emergency communication devices and equipment that can help rescuers locate trapped miners.
Sale of Ridley terminal cancelled by Canadian PM
Canadian federal government has cancelled the sale of the Ridley Island shipping terminal in Prince Rupert British Colombia to an Ontario company. Prime Minister Mr Stephen Harper announced at a caucus meeting in Ottawa on Tuesday that he had signed the papers canceling the deal with Fortune Minerals Ltd.
The Ridley terminal, built in the 1980s, is an ice-free, deepwater harbor. It was originally built as a Crown facility by the federal government at a cost to taxpayers of $250 million to load and ship coal from the Quintette and Bullmoose mines at Tumbler Ridge in northeast B.C. The other strategic reason for its importance is that it is the western terminus for the CN Railway and the closest port in North America to Asia. Over the last several years, with coal prices in the dumps and Quintette and Bullmoose shut down, the future of Ridley looked bleak.
The previous Liberal government said it wanted to sell the property because it said it was costing taxpayers $500,000 a month in subsidies to operate. But the future of coal has recently brightened, especially due to China's booming economy, which caused other companies to show an interest in the way the terminal is operated. New coal mines are being developed in B.C. and Alberta and Ridley management estimates that coal shipments will increase dramatically over the next several years.
Last year, only 1.3 million tonnes of coal was shipped and the terminal's capacity is 16 million tonnes.
Stelco to separate into nine new subsidiaries
Stelco Inc intends to split into nine new subsidiaries and not pay dividends or buy back shares while its pension plan remains in deficit. The steelmaker will ask an Ontario Superior Court judge on Friday for permission to make the changes demanded by Tricap Management Ltd, a Toronto restructuring fund which is lending Stelco $375 million. The new business units, owned 100% by Stelco, will each have its own board of directors, employee communications, web page, signage, human resource functions and accounting records. It is one of the final steps the Hamilton-based company intends to complete before emerging from its two-year-old bankruptcy protection process this spring.
Stelco's Hamilton operations are to be divided into business units dealing with steel, energy assets, coke batteries and land. The same four-unit structure would be created for the Lake Erie operations in Nanticoke, Ont. The ninth unit would contain Stelco's mining interests. The reorganization under the Canada Business Corporations Act would make each business unit a limited partnership, with Stelco Inc. as limited partner. Each new business unit will be responsible for current obligations to its employees and retirees, but will not be liable for obligations of other units. However, Stelco and all of the units will be liable for the annual funding of the pension under the 10-year deal.
Tricap, owned by Brookfield Asset Management, the former Brascan Corp said Stelco has called the changes "complex but achievable." Tricap will own about 38% of the stock Stelco will issue after it completes its reorganization and cancels its current shares. But Tricap said in a memo to Stelco that the new structure "will maximize our ability to raise capital for the company on optimal terms, and provide the greatest opportunity to realize the turnaround potential of the Hamilton operations."
Mr Rolf Gerstenberger, president of United Steelworkers Local 1005 in Hamilton, said Monday he's not convinced the structure isn't designed to sell off parts of Stelco. "We really don't have much control over whatever they're going to do," he said.
Nippon Steel backs Arcelor in hostile bid
It is reported in Japanese daily that Nippon Steel Corp President Mr Akio Mimura threw his company's support to Luxembourg steelmaker Arcelor in its fight against a hostile takeover by Mittal Steel. However, he seemed to rule out a capital alliance. During a meeting on Sunday in Paris with Mr Guy Dolle Mr Mimura said, "I will continue to believe our business relations with Arcelor should be deepened," reports said.
The report also said that both companies are now expected to carry out countermeasures against the takeover, to enable them to maintain their joint research and development on a variety of products ranging from high-end steel plates for automobiles to basic steel for construction. If Mittal Steel's acquisition attempt is successful, the two companies' shared strategy of supplying steel to European and Chinese markets would be greatly affected.
The world's steel industry was closely watching whether NSC, Japan's largest steel company, would side with Mittal Steel or Arcelor.
Kobe Steel to double welding material output by 2010
Kobe Steel Ltd. will double its annual production of welding materials to 600,000 tons by around 2010 from the current 300,000 tons in a bid to meet growing demands from shipbuilders and car manufacturers in East Asia, a Kobe Steel spokesman said. The steelmaker plans to beef up the output of its 10 domestic and overseas manufacturing bases.
Annual production capacity at a factory in Thailand will be doubled to 19,000 tons by the end of this year and the company will invest 200 million to 300 million yen to increase its South Korean plant's production lines by this summer.
In addition, the company may set up a couple of new factories in Europe and East Asia with some 1 billion yen investment each, if demand requires it. But the exact locations have not yet been decided, the spokesman said.
Kobe Steel is one of the world's top providers of welding materials.
Mittal Steels bid in EU jurisdiction - Luxembourg minister
Luxembourg Budget Minister Mr Luc Frieden said that the European Union's executive body was responsible for reviewing Mittal Steel's bid to acquire Arcelor. Speaking at a news conference about Luxembourg's adoption of a European Union directive on acquisitions, Mr Frieden said the bid fell under EU jurisdiction.
Luxembourg Prime Minister Jean-Claude Juncker has been one of the most vocal opponents to the bid. Mr Juncker traveled to Paris and Brussels last week to try to build a political defense against the bid. But EU officials have reminded EU member states that their powers to block such a deal were limited.
China names Xingtai Iron & Steel in 11 industrial polluters
China on Tuesday named and shamed 11 companies, including large metals smelters, for heavy pollution from their factories. The companies targeted as having "serious problems", including Baiyin Nonferrous Metals Co and Xingtai Iron and Steel Co Ltd., have to improve and clean up the offending projects or face closure orders and fines, the State Environmental Protection Administration said.
Baiyin is China's seventh-largest copper producer with annual production of about 100,000 tonnes and Xingtai has an annual steel production of 2.4 million tonnes.
Luxembourg gets copy of Mittal Steel's Arcelor bid
Luxembourg's financial regulator has received a copy of Mittal Steels prospectus to acquire Arcelor, a minister of the Grand Duchy said on Tuesday. Budget Minister Mr Luc Frieden made the announcement at a news conference about Luxembourg's adoption of a European Union directive on acquisitions. It was not clear if he was referring to a copy of the draft or the complete document.
On Monday, Belgium's financial regulator said it had received a copy of the draft. The regulator is to review the draft along with its peers in other countries where Arcelor is listed. Mittal Steel needs their approval before making the offer to Arcelor's shareholders.
Mittal Steel to increase investment in Central & Eastern Europe
Mr Roeland Baan CEO of European operations of Mittal Steel is reported to have said that the company will invest Euro 500 million in its Eastern and Central European operations in 2006, up from Euro 380 million in 2005 and Euro 290 million in 2004.
During an interview with the French daily La Tribune, he said the aim is to modernize facilities, raise output quality and boost productivity from 300 tons per year per worker to 500 tons, which he said would still be only half the productivity of steel mills in Western Europe.
Ukraine starts probe for Russian iron ore, steel ropes and bearings
The antidumping department of the Economy Ministry of Ukraine has launched the probes into deliveries of Russias iron ore concentrate, steel ropes, cables and bearings.
Each investigation will be carried out in three stages. It will take a month to collect proofs and another month to analyze them. The metal companies of Russia will have a week to provide arguments in defense so that the respective conclusion could be drawn by mid April, a source with the Economy Ministry of Ukraine said.
Introduction of antidumping and special duties on the above product will cost around $370 million to Russias producers, according to Ukrainian analysts.
Usiminas awards construction of 60MW power plant
It is reported that Brazilian flat steel producer Usiminas signed a contract with Camargo Corra, a civil engineering firm, to build a 60MW thermal power plant at its steel mill complex in Minas Gerais state. The thermal power plant will take 26 months to commission and will double Usiminas' power generation capacity to 120MW to meet 53% of captive power needs
The power plant will use a combination of fuels including gases generated in iron & steelmaking process. The power plant will also supply 115t/h of steam for use in the steel plant.
Project investments total US$100mn, with 60% coming from the Japan Bank for International Cooperation and the remaining 40% from Mizuho Corporation Bank and The Bank of Tokyo, Usiminas said in a statement.
AK Steel to hike prices of Zinc coatings from 1st April
AK Steel Holding Corp announced that it will raise the price of zinc coatings 70 by% starting April 1. AK Steel said it is increasing prices "to recover the record-high cost of zinc that is used to coat galvanized steel sheet products."
The company already has pricing "extras" on all its galvanized steel products.
Arcelor share buyback freeze applies now
Arcelor is not allowed to buy back its own shares until the end of the offer period in a takeover bid by Mittal Steel a financial sector source said. "Neither Arcelor, nor Mittal, is allowed to intervene in the market and buy shares in themselves or in the other, between now and the end of the offer period," the source said, interpreting a statement issued on Monday by the French bourse regulator.
On Monday, French bourse regulator AMF issued a statement to clarify the bourse rules that need to be observed during the offer period, as well as the current preliminary period during which regulators are scrutinizing the draft bid documents that Mittal has filed in Luxembourg, Belgium, Spain and France. "The Mittal Steel company, the Arcelor company and people acting in concert with either of them are not allowed to intervene in the market for the shares involved in this bid, that is, the market in shares of Arcelor and Mittal Steel," the French financial markets authority said.
It added this also applied to banks working for the two parties, as long as dealing in the shares did not fall under their normal business of arbitrage, market making, risk position covering and other activities and was executed by people completely separated from those working for the two clients.
Rio studies Limpopo coal prospect
Rio Tinto has started studies into a coal deposit in Limpopo. The deposit, known as Chapudi, was found as a result of follow up exploration for its Zimbabwean diamond-mine Murowa, said copper and exploration executive Mr Tom Albanese. Early next year, the miner is hoping to embark on a feasibility study on the deposit and has already spoken to the Department of Minerals and Energy as well as Eskom as to how best to develop the project.
Mr Albanese said that the firm is developing the project in conjunction with a local black economic-empowerment partner. He added that the partner would eventually become a black-controlled exploration and mining firm in its own right. The firm aims to have a resource statement on the coal basin out by the end of the year.
North American Galvanizing & Coatings reports results
North American Galvanizing & Coatings Inc reported quarterly net income of $254,000 for the fourth quarter of 2005. For the year ended December 31 2005, the company's net income was $644,000 compared to net income of $397,000 for 2004. The increase in net income is primarily a result of the increase in sales volume.
Revenues for the year ended December 31, 2005 increased 34% over the prior year due primarily to contribution from the Canton, Ohio galvanizing facility that was purchased February 28, 2005. Same plant revenues for the year improved 14% over 2004.
North American Galvanizing is a leading provider of hot-dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coating business through a network of plants located in Canton, Ohio; Denver, Hurst (Dallas/Forth Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area.
Bateman wins BHP contract for coal plant up gradation
Bateman Engineering took off today on news it has won a $18 million contract to upgrade the BHP Billiton Mitsubishi Alliance's coal processing plant in central Queensland, Australia. The company said work started last November on the basis of a purchase order for basic engineering, which has been embodied into the contract award.
The project with Australia's largest coal producer at the Gregory Crinum coal mine is due to be completed by December. It is intended to increase the yield of coking coal by more than 6% through the replacement of BMA's existing conventional circuit with new floatation technology, said the group.
Grande Cache acquires additional coal leases in Smoky River
Grande Cache Coal Corporation announced that it has acquired an additional 3,216 hectares of coal leases in the Smoky River Coalfield. The majority of the acquired lease area is located in the new No. 12 Mine North development area which has the potential for surface mining operations of low volatile coal.
The Corporation believes the majority of the coal in the new area will be coking coal with some significant areas of low ratio PCI coal also included.
