March, 26 2006
IISI launches Living Steel initiative in India
International Iron and Steel Institute have launched Living Steel, a program to promote sustainable steel housing around the world, in India starting with Kolkata. We are discussing, internally, our next port of call in India after our MoU here with Bengal Shrachi, but nothing has been finalized, Program Director Mr Scott Chubbs told newsmen.
The MOU outlines the partnership between Living Steel and Bengal Shrachi to construct a ground plus four storied prototype building consisting of six to eight apartments in New Town in Kolkata. The housing would be constructed based on a winning entry selected from an international architectural competition sponsored by Living Steel in association with the International Union of Architects.
An international architectural competition has been organized by Living Steel in association with the International Union of Architects for designing the housing project in Kolkata and ten international architectural firms are engaged in designing the project to be assessed in May this year at Brussels by an international jury comprising of Mr Charles Correa, Mr Glen Murcutt, Mr Andrew Ogorzalek, Mr Jaime Lerner, Mr James Berry and Mr Nicholas de Monchau.
Living Steel is a worldwide consortium managed by IISI and the member companies include Tata Steel, Mittal Steel and Posco, among others.
Bengal Shrachi has undertaken some major housing projects in Kolkata, Bhubaneswar and other areas. The Shrachi group has taken up a 100 crore project in Bhubaneswar to construct a ground plus 17 residential complex, an official of the group said.
The International Iron and Steel Institute is one of the largest and most dynamic industry associations in the world. IISI represents over 190 steel producers, including the worlds 20 largest steel companies, national and regional steel industry associations and steel research institute. IISI members produce around 60% of the worlds steel.
Indian Government resets target of CIL
As per the Annual Report of the Ministry of Coal for 2005-06 several steps are taken keeping in view the growing coal demand during the eleventh plan period and has enhanced Coal India Limiteds production target of 2011-2012 to a level of 504.10 million tonnes, which is about 141 million tonnes more than the projection of 2006-07 and 59 million tonnes more than earlier projection for XI Plan.
Under emergency coal production plan it has identified 16 open cast projects where production from the existing mines will be enhanced to a higher level yielding additional 71.3 million tonnes after attaining full production potential in eight year period. This incremental contribution would enable the coal sector to by and large meet the projected demand of steam coal.
Power firms likely to be part of coal price fixation
The power ministry has proposed that representatives of electricity generating companies be included in negotiations with the coal ministry over pricing as the power sector is the largest coal consumer in the country. The ministry has also proposed that pricing of coal be based on the guidelines framed by the tariff commission till the issue of a coal regulator is resolved. The tariff commission may be asked to come up with a paper on guidelines for fixing coal prices. The proposals were floated at a meeting held between Power Secretary Mr RV Shahi and Coal Secretary Mr HC Gupta early this month.
Mr Shahi said that the determining the price of coal could not be exclusively be left to CIL and FSA should provide for a negotiated price to be decided between Coal India Ltd and the power sector. The group for power sector will have representation from the private sector, as the price will be applicable to private players as well. The price will be negotiated every year and there will also be a provision in the agreement that if the two groups are not able to arrive at an agreed, negotiated price, the matter could be referred to an authority in the government mutually agreed between the coal and power ministries.
Coal Secretary Mr HC Gupta suggested that indices like e-marketing price of coal, price of imported coal may also be factored in as benchmarks while negotiating the coal price. Mr Gupta also said in the meeting that bringing back the administered prices would be a retrograde step. He had also said that for the same grade of coal different subsidiary companies would have to charge different prices otherwise the system of adjustment through Coal Price Regulation Account would have to be brought back.
ISMT to expand seamless tube and alloy steel capacity
Pune based ISMT Ltd, manufacturer of seamless tubes, has embarked on a massive expansion to increase its capacity for the manufacture of specialized seamless tubes from the existing 155,000 tonnes per annum to 475,000 tonnes per annum and alloy steel from 250,000 tonnes per annum to 500,000 tonnes per annum.
While the additional capacity for the seamless tube would be set up at the company's Baramati plant and completed by February 2008, the build up in the alloy steel capacity would be augmented at its plant in Jejuri over the next 2 to3 years.
The turnover is targeted to climb Rs 2,900 crore from Rs 1,100 crore as a result of capacity expansion, even as the operating margins are poised to touch a higher level.
Steel minister reviews SAIL performance during April to December
Steel Minister Mr Ram Vilas Paswan reviewed the performance of SAIL for the period April to December 2005 recently and lauded 8% growth in steel production to reach highest ever levels of 8.59 million tonnes although net profit Rs 2935 crores is lower as compared to corresponding period of last year mainly due to lower steel prices and input cost escalation of coking coal.
Mr Paswan emphasized the need for upgrading the technology and increasing productivity. SAIL already has a corporate Plan in place, which envisages an investment of Rs. 35,000 crores by the year 2011. The Minister reiterated that planning should be done in a way that the results envisaged in the Corporate Plan are realized and a close monitoring is kept on the implementation of this Plan.
SAIL has also approved a Corporate social responsibility and peripheral development policy of spending 2% of distributable profit for developing the surrounding areas of steel plants and their inhabitants by means of providing health, educational, sports facilities and taking up womens empowerment program. Steel Minister advised SAIL to take up major schemes in the peripheral area, which will have a lasting impression on the lives of weaker sections and tribal population in such areas. He also advised SAIL to take up public awareness campaigns in these areas for preventive health measures campaigns in these areas for preventive health measures as well as HIV prevention and control programs.
ARS Metals joins bandwagon for branded TMT
With the formal launch of branded TMT Chennai based ARS Metals Pvt Ltd is focused to emerge as quality manufacturer of reinforcement steel bars to increase its market share in Southern States and has drawn up plans to establish a brand name in this region for quality and reliability. 'Though the industry is growing in the region of 8% to 9%, we are keen to grow at a much faster pace to have a market share of at least 16% to 18% in this segment of branded products in the southern region said Mr Ashwani Kumar Bhatia MD of the company.
It is reported that ARS Metals commenced operations in 1992 with the manufacturing of MS casting at Gummidipoondi plant and later on opening another unit at Pondicherry, ARS Metals commissioned a rolling mill in June last year and has the capacity to produce 15,000 tonnes per month of TMT and CTD bars. TMT bars are made using tempcore process. ARS has four induction furnaces with casters to produce billets for rolling mill and is planning to set up a sponge iron plant with captive power generation.
GPIL signs MoU with CSIDC for phase 2 expansion
Raipur based Godavari Power and Ispat Ltd, an integrated manufacturer of sponge iron & steel billets with captive power generation, has signed an MoU where Chhattisgarh State Industrial Development Corporation for help in obtaining incentives and facilitate clearances necessary for its Phase II expansion, which is likely to be commissioned by the last quarter of 2006-07.
GPIL enjoys various tax exemptions and deductions which will continue till April 2012.It has also managed to procure a coal block with a reserve of 106.5 million tonne from the Ministry of Coal.
GPIL produces sponge iron and casts billets and uses billets to roll rods, bars, pipes, ropes, wires, angles, channels and beams. GPIL claims to be having a 15% market share in mild steel wires segment in the local market. GPIL also supplies almost 75% to 80% of the billets to its group companies Hira Steels and RR Ispat. This supply constitutes 40% of the requirement of the group companies.
Baldota owned MSPL group on expansion spree
The Baldota family owned MSPL Ltd, having large mining projects in Karnataka, has undertaken large expansion plans and is also planning to hit the capital market soon. Speaking to reporters Mr Shrenik Baldota Executive Director of the company said that MSPL, which is currently engaged in various activities like iron ore mining, wind power generation, gold and diamond mining, gas etc, is being restructured. The company is also planning to make an initial public offering though he did not divulge any details.
Mr Baldota said that the promoters of the company are going for public issue mainly for the sake of visibility. The entire issue will be offer for sale which means the proceeds of the issue would go to promoters and not to the company. The promoters have chalked out expansion plans including some acquisitions overseas as also a steel plant. The promoters do not necessarily require the public issue money to fund the expansion plans as they have enough net worth to take care of it. Mr Baldota however did not offer details on the expansion project.
MSPL is a leading exporter of iron ore to China with revenues of Rs 635 crore and the net profit of Rs 140 crore during last year. The company is currently operating its mines in the Bellary Hospet region in Karnataka. Its main mine, Vyansankere Iron Ore Mines is currently producing two million tonnes per year and the company is planning to increase the capacity to 2.5 million tonnes per annum. The company has also entered into a run of mine purchase contract for a mine in the Singbhum district of Jharkhand. It will be setting up a three million tonnes per annum processing unit on site in Jharkhand.
NTPCs MoU for 2X2509 MW power plant approved by Sri Lanka
It is reported that Sri Lanka's Cabinet of Ministers has given the nod to a draft MoU to set up two 250 MW coal power plants in the eastern port city of Trincomalee.
The MOU will be signed by the Ceylon Electricity Board and the National Thermal Power Corporation of India. The two companies will own the plants equally. The power stations will be constructed in two stages.
TMIL to bid for development at Paradip Port
TM International Logistics, a JV between TATA Steel and Germanys Martrade, has again decided to bid for the clean cargo berths that are proposed to be developed at the Paradip Port when the fresh tender is floated, according to Mr SC Saxena MD of TMIL. "Our focus being on the port operations, we will bid for port projects wherever there are suitable opportunities" Mr Saxena said.
The Paradip Port Trust had cancelled the earlier tender because the port authorities decided to shift the location of the proposed berths. TMIL had bid for the earlier tender too.
Mr Saxena said that since TATA Steel was planning major additions to its steel making capacity, it would make sense for TMIL to participate in port related infrastructure projects to achieve synergy in operations.
Chinas dependence on iron ore import to reduce
Chinese National Development and Reform Commission said that China is likely to produce nearly one third more iron ore this year, citing robust domestic output in the first two months as more mines are developed. For the whole year, domestic ore output could reach 540 million tons, 120 million tons more over the figure in 2004. The extra 120 million tons could translate into a saving of more than 60 million tons in imports, the commission added.
The estimates were based on the YOY growth in ore output of 26.4% in the first two months, during which China produced 54.7 million tons of iron ore.
The raised output is attributed to China's breakthrough in exploring the low grade ore mines as well as the lifting of mining restrictions on high grade deposits.
Techint & Danieli pool resources in DRI technology to launch EnergIron
It is reported that Techint Technologies and Danieli SpA, two firms that recently joined hands to supply Consteel EAF packages worldwide, have now pooled their assets in direct reduced iron making into a branded package for DRI operations.
According to a Techint statement, the strategic alliance "will allow the three partners to join their own know how and technology for the design and construction of gas-based direct reduction plants, to be presented world wide under the new trademark EnergIron." The release stated that the new name highlights the high-energy content of its final product, as well as its ability to process various iron ores including sulphur rich ores and its adaptability to various reducing gases including natural gas, syngas, and coke oven gas.
The first application of the EnergIron alliance will be at a new mini-mill complex in the UAE, where Danieli holds a turnkey contract with General Holding Corp. GHC in Abu Dhabi has contracted Danieli for a 1.4 million tons long products plant. Feeding iron to the operation will be a new HYL III module producing 1.6 million tons per year. The HYL III plant will hot-charge DRI continuously to the EAF melt shop using the HyTemp technology, the pneumatic system already deployed by Hylsamex at its Monterrey mini-mill.
By way of its parent company's merger with Hylsamex, Techint recently came into control of HYL Technologies, the Monterrey-based engineering organization that has developed several generations of its HYL gas based process for direct reduced iron and hot briquetted iron. Danieli has promoted its own gas-based process for DRI, Danarex.
MMK reduces RAS net profit 10.8% in 2005
Magnitogorsk Iron & Steel Works reduced net profit to Russian Accounting Standards by 10.8% in 2005 to 29.82 billion rubles, the company said in a financial report, to be presented to shareholders at their annual meeting.
The report said that MMK had to contend with a competition war on its sales markets and a price war with iron ore suppliers last year. It said steel prices, which had grown in recent years, started to plummet in the second quarter of 2005.
MMK produced 49,000 tonnes less metal than planned in view of the global over production crisis. Revenue was 3.5 billion rubles less than targeted, although operating profit was 9.6 billion rubles more than targeted because MMK managed to reduce costs by 13.1 billion rubles. Product profitability was 12.6% points higher than planned.
According to a conservative forecast for 2006, MMK does not plan to raise metal product prices even though raw material prices are forecast to rise. Operating profit would fall 10.8 billion rubles to 31.4 billion rubles, revenues would be 143.9 billion rubles and costs 112.5 billion rubles.
MMK plans to sell 10.6 million tonnes of commercial metal in 2006, exporting 5.1 million tonnes to the non-CIS and 300,000 tonnes to the CIS. Exports of long products should quadruple in 2006, flat hot rolled products should grow 8% and billet sales should fall by 52%.
Mr LN Mittal calls on Arcelor for peaceful solution
Mittal Steels CEO Mr LN Mittal called on Arcelors CEO Mr Guy Dolle to reach a peaceful solution to the takeover battle between their two companies on Saturday. Mr Mittal told the German news magazine Der Spiegel that he was ready at any time to meet the Arcelor CEO because a friendly takeover is preferable to a hostile one.
Mr Mittal said that Mr Dolle has not responded to his request for a meeting since Mittal Steel's announced its bid for Arcelor nearly two months ago.
SAs Competition Tribunal questions its right to set steel prices
It is reported that during the hearing of a complaint by gold miners Harmony and DRDGold alleging excessive pricing and inducement abuse by Mittal Steel SA, the Competition Tribunal members have begun raising questions over jurisdiction and the appropriateness of their intervention in the setting of a new steel price regime.
Tribunal member Mr Norman Manoim was the first to pose the jurisdiction issue, questioning whether it was indeed the job of the competition authority to propose a pricing-regime remedy, even in an instance where excessive pricing was found to exist.
Tribunal Chairperson Dr David Lewis said that Harmony and DRDGold want the lowest price of steel and Mittal Steel SA want the highest price of steel and frankly nobody is particularly concerned in the maintenance of South Africa's industrial base or the levels of competition at all. He asked that is this an environment conducive to the task of setting the price of any commodity and especially a commodity as complex as this with the complex interplay between the world market, domestic markets, previous subsidies, debates about whether replacement capital or existing capital should be used as the base for the pricing regime.
Mr Zavareh Rustomjee, who was previously a Department of Trade and Industry director general and is regarded as an industrial policy expert is a key witness for the miners in the case answered My personal view is that, if the current way in which power is exercised around the pricing of steel is causing our economy not to grow as fast as it should, or jobs not to be created, then I think the price of steel should be set. It may not be traditionally within the purview of the Competition Tribunal to be a price regulator, but then, maybe the authority should be looking at other systems. Maybe we need a steel regulator - not that we have had a very happy experience with the role that regulators have played in all cases, Mr Rustomjee asserted.
Taiwans Tycoon Group to set steel mill in Vietnams Dung Quat
It is reported that Tycoons Worldwide Group, a subsidiary of the Taiwan based Tycoons Group International, the worlds leading screw manufacturer, has chosen Dung Quat Open Economic Zone in Vietnam to build a steel making and rolling facility with an annual capacity of 5 million tonnes of steel. Tycoons chose Dung Quat because it has good infrastructure and a deep sea port that can receive 70,000 DWT ships. Dung Quat also has a rich water supply with a capacity of up to 300,000cu.m per day and is in an area not subject to major earthquake activity.
Tycoons have completed initial procedures for its Dung Quat steel plant project and this month will submit a license application to the Ministry of Planning and Investment. The project would have a total investment of over $1 billion and be implemented over a period of eight years. Tycoons expect to start construction of the plant in July and finish the first phase in early 2009.
Dung Quat Open Economic Zone has created an ideal setting for industrial projects, particularly in the steel industry. So far, the Dung Quat Open Economic Zone has attracted total investment of $3.2 billion from 64 projects, mainly heavy industrial projects. The zone expects to draw a total investment of $1.3 billion from 28 projects in coming months.
Construction of oil pipe line between Russia & China to begin soon
Russian Foreign Minister Mr Sergei Lavrov said that work on a new oil pipeline from Russia to China will begin in the near future. He said that the two countries would conduct a technical feasibility study on the pipeline, which will be a branch of the East Siberia Pacific pipeline. Mr Lavrov said Russias oil exports to China will increase sharply after the oil pipeline is put into use.
Russian natural gas company Gazprom on Wednesday signed an agreement with the China National Petroleum Corporation on the joint design and construction of the oil pipeline from Russias Skovorodino to the border of the two countries.
Also on Wednesday, Gazprom signed a MoU with CNPC on the construction of two pipelines that will allow Russia to supply 30 billion to 40 billion cubic meters of natural gas to China annually.
Stelcos unit rechristened as Hamilton Steel General Partnership Inc
Tricap Management Ltd, the new owner of the Hamilton city's ailing steelmaker Stelco, is rechristening the local plant as Hamilton Steel General Partnership Inc when it emerges from bankruptcy protection April 1. Stelco Inc will still exist, but now only as a holding company for operations in Hamilton, Lake Erie and elsewhere.
"Each plant will operate as their individual unit and have their own name" said Stelco spokesperson Ms Helen Reeves. "The location will be identified as both Stelco and Hamilton Steel." The name change is the external part of a plan to restructure the steel company into nine business units. Each unit will have its own management, employee communications, web page, human resource functions, accounting records and letterhead.
The restructuring plan was devised by Stelco's new owners Tricap Management Ltd. as a way of forcing each unit to be more accountable for its operating results. The company has been divided into the two main steel makers, Hamilton and Lake Erie and other assets to make up a total of nine operations, which will all have new names. The Lake Erie plant's new name is Lake Erie Steel General Partnership Ltd.
Fears have been raised by the Hamilton union that the new structure will make it easier to close or sell the obsolete and unprofitable Hilton Works complex. Dividing the company and renaming each unit makes it obvious they are legally separate operations. Tricap would make more profit if the company sold the operations off individually rather than selling Stelco as a whole because Hilton Works has a lot of environmental liabilities. Mr Marvin Ryder, professor with DeGroote School of Business at McMaster University, said the name change signals a new chapter for the steel company after two years of turmoil. "It doesn't matter what they change the name to, people will still call it Stelco," the professor said. "It's been such a part of Hamilton's history that the name won't be going away any time soon."
RBCT sets aside 4 million tonnes for small BEE coal miners
The Richards Bay Coal Terminal will be setting aside 4 million tons of coal export capacity for small black economic empowerment miners from April 1 this year. Executive chairperson Mr Kuseni Dlamini told delegates at the CoalTrans conference held in Sandton that the aim of the RBCT expansion phase five was to ensure that the terminal satisfied the aspirations of all economically sustainable producers in line with South Africas transformation goals.
Mr Dlamini said that RBCT, which has a capacity of 72 million tons a year, is owned by several large coal-mining companies. Ingwe with a shareholding of 27.43% has an export allocation of 26.95 million tons a year. Anglo Coal with a shareholding of 27.48% has access to 19.78 million tons a year, and Xstrata with a shareholding of 20.91% has export capacity of 15.06 million tons. Total Coal South Africa with a shareholding of 5.68% has access to 4.09 million tons, Sasol with 5%, has 3.6 million tons, Kangra with a 2.3% shareholding has 1.65 million tons of capacity and Eyesizwe with 1.2% shareholding has 0.87 million tons a year of export capacity.
Mr Dlamini said that the expansion at RBCT would add an additional 20 million tons to current capacity and 4 million tones would be allotted to BEE miners. 6 million tons had been allocated to the South Dunes Coal Terminal Company, which had a target of 66% BEE. Another 10 million tons would be available for subscription, which should be taken up by BEE miners.
Mittal Steel hopeful that Arcelor shareholders see benefits of merger
It is reported that after the Luxembourg government ruled out selling its shares in the Arcelor steel company in the near future Mittal Steel said it was confident that shareholders of Arcelor would see the benefits of the buyout.
"We continue to believe in the benefits of consolidation and are confident that the shareholders of Arcelor would see the benefits that would accrue in terms of value," a spokesperson of Mittal Steel said
Earlier, Mr Guy Schulles, spokesperson of Luxembourg government, said at Brussels that "there is no reason to sell the Arcelor shares in the near future".
Al Fozan to set up steel manufacturing facility at DIP
Dubai Investments Park has announced that Al Fozan, one of the largest importers of steel, wood, electrical and hardware material, as well as the leading manufacturer of steel and wooden products for the building and construction industry, will be setting up an AED 45 million manufacturing facility at the Park. Al Fozan's new plant is scheduled for completion in early October 2006.
The new facility will have the latest technology and equipment for fabricating steel and manufacturing wire-mesh and lumber. The plant, which is being built in an area of 68,145 square meters, will have a production capacity of 60,000 tonnes of cut and bend steel bars, per annum.
Mr Mahmoud Abu Dayah Regional Manager of Al Fozan said Our decision to set up this modern manufacturing facility at Dubai Investments Park is in line with our strategy to effectively target the regional markets. The Park's self contained business zone and its proximity to the Jebel Ali port is a major factor that will contribute to enhancing the efficiency and productivity of our operations. We will be adopting the latest international standards in our operations to supply the market with the highest quality of steel, wire-mesh and lumber.
Mr Khalid J Kalban MD & CEO of Dubai Investments said The increasing number of tenants who are setting up their regional operations in the Park is evidence of our high quality support services and well-planned infrastructure facilities. We have been committed to satisfying the needs of our tenants from different industries and ensuring that the Park serves as an ideal environment for their business.
Kazakhstan's SSGPO increases sales by 18% in first 2 months
Sokolov Sarbai Mining Production Association, Kazakhstan's biggest iron ore producer, increased sales by 18.2% YOY in January to February to 2.172 million tonnes, the company said in a press release. Crude ore production in rose by 4.6% YOY to 2.983 million tonnes and ore processing grew by 5% to 2.986 million tonnes.
February sales rose by 8.9% YOY to 956,000 tonnes. Iron ore production rose 6.2% YOY in February to 1.263 million tonnes.
Bangladeshs opposition for revision in Phulbari deal
Bangladeshs main opposition party Awami League termed the Phulbari coal mine exploration agreement signed between the government and BHP-Asia Energy Corporation in 1994 as unequal and demanded that the deal be revised to remove all the unequal provisions from it. Party member Dr Mohiuddin Khan Alamgir said that the agreement would be revised if their party gets back to power.
Dr Alamgir said "The fact is that the then BNP government gave the exploration license to BHP Minerals in 1994 and its all provisions were not favorable for Bangladesh." Dr Alamgir demanded trial of those responsible for the contract signed in 1994. He urged the Energy Advisor to make it clear whether he would blame the then Energy Minister of BNP and others for this unequal agreement. He also urged the Energy Advisor to either repeal or amend those unequal provisions of the deal in the interest of the country.
Energy Advisor Mr Mahmudur Rahman recently said that the government's exploration license agreement with the Asia Energy went against national interest and demanded punishment of those responsible for it.
CIC lists in Toronto stock exchange
CIC Energy Corp, the company with the majority shareholding in the Mmamabula coalfield project, was listed on the Toronto Stock Exchange in Canada. CICs COO Mr Francois Badenhorst said they instantly started trading in Toronto after the listing and that the response has been very good and they expect it to get better. He disclosed that the corporation intends to list on the Botswana Stock Exchange soon.
Mmamabula is one of the largest undeveloped high quality coal assets in Southern Africa, not under control of a major mining company. The project has the capacity to support a 3,600MW power station for about 40 years.
The governments of Botswana and South Africa are at an advanced stage to sign a MoU to promote the project. Botswana Power Corporation and Eskom of South Africa will also be signing their MoU. Presently, Botswana imports 70% of its electricity from Eskom.
Mr Elvidge Mhlauli the chairman of Meepong Investments, the local partner of the JV with CIC explained that Eskom has expressed interest in the project but not as an investor and they only want to get into a power off take agreement with us.
Total's new SA coal mine Forzando South to start this year
A new R200 million coal mine run by France's Total will be ready by year end and another is due to be complete by mid 2008, the company said today. Mr Alan Stonall GM of Total Coal South Africa, on the sidelines of Coal Trans conference, said that the new mine will produce an additional 800 000 tons of coal per year, most of which will be exported, but that rail capacity constraints limited further expansion. Total Coal already exports about 80% of its output.
"We are currently building a new mine called Forzando South, which is about 5 kilometer south of our Forzando mine and should start producing at the end of the year" he said. A Greenfield project, the 500 000 ton per year Tumelo mine, will be complete by mid 2008 to coincide with the completion of the expansion of the Richards Bay Coal Terminal.
Total is a relatively junior coal mining firm in Africa even though it has a huge oil footprint on the continent. The company is a smaller shareholder of the RBCT compared to other bigger coal miners.
Prokopyevskugol plans overhaul for coal enrichment plant
The Prokopyevskugol Management Co plans to overhaul the hydraulic extraction division of its Krasnogorskaya enrichment plant this summer at a cost of about 3 million rubles. The overhaul is expected to improve product quality and reduce losses of concentrate.
The overhaul will involve the replacement of the jigging machine, which has been in operation for almost 50 years and is obsolete and worn out as per a company spokesman. It will be replaced with a modern OM-18 machine that is almost twice as productive, with capacity for 270 tonnes of coal per hour, he said.
Prokopyevskugol, which is controlled by the shareholders of the Kuzbassrazrezugol Coal Co, includes seven mines and three enrichment plants.
JMM signs iron ore drilling contract for iron ore deposit
Indo Mines Indonesian partner Jogja Magasa Mining has signed a 16,000m Drilling Contract with Jakarta based drilling company RB Drilling to drill out the companys Yogyakarta ironsands deposit located in Central Java on the south coast of Yogyakarta Province, Indonesia.
The 1000 hole air core drilling program of the ironsands deposit which is expected to commence shortly, will be funded by Indo Mines as part of its earn in requirement to acquire a 70% interest in the Project. JMM will retain a 30% interest in the Project.
The Company has commissioned consulting geologists, Mackay & Schnellmann, to supervise the drilling program and to bring the deposit to JORC resource definition. Samples will be freighted to Australia to Perth-based laboratory, ALS, which has been awarded the contract to assay 10,000 samples by XRF techniques.
Subject to feasibility, the iron ore deposit at Yogyakarta which is 22 kilometer long by up to 1.8 kilometer wide will be used as the basis for the establishment of a pig iron making facility in the Yogyakarta region to provide feedstock for major regional steel producers.
