March, 29 2006
Everest Kanto Cylinder to double its capacity in Dubai
Everest Kanto Cylinder Ltd has announced that the Company has established a separate wholly owned subsidiary in Dubai. The plant will be functional by August and is located in Jebel Ali free zone. The Company will incur total investment of $ 8.5 million. With the new plant in place the capacity at Dubai will be doubled from 0.1 million to 0.2 million cylinder. The Company already has a plant in Dubai.
Mr Prem Khurana CMD said that "Our subsidiary in Dubai will supply gas cylinders to Commonwealth Independent States and Middle East markets. There is huge growth potential in CIS markets because of their vast reserves of natural gas. We will concentrate on markets like Russia, Ukraine, Armenia and Kazakhstan. At present there are 0.2 million vehicles running on CNG."
The Company currently has manufacturing units in Tarapur, Gandhidham, Dubai and Aurangabad with an aggregate capacity to produce 706,000 units per annum. In addition to domestic clients like Bajaj Auto, TATA Motors, Ashok Leyland, Swaraj Mazada and Hindustan Motors, the Company is also a major exporter of CNG cylinders to Thailand, Malaysia, Bangladesh, Iran, Pakistan and neighboring Middle East countries.
4000MW project to come up in Nellore in Andhra Pradesh
The central government has cleared a 4,000MW electricity project at Andhra Pradesh's Krishnapatnam port. The project in Nellore district would have four separate units, each producing 1,000 MW of power, Central Electricity Authority committee member (Thermal) Mr RK Jain told reporters. Jain said that out of the total capacity, 2,000 MW would be earmarked for Andhra Pradesh and the balance for the central grid.
Mr Jain said the project would be set up with a 100% private ownership. The project is estimated to cost about Rs.140 billion to Rs.150 billion. Basic infrastructure would be created by April 2007 and the project would be entrusted through international competitive bidding process.
The state government has selected the port area because of its capacity to unload 125,000 tonnes of coal at a time, he said and imported coal would be the feedstock for this project.
Gujarat NRE Coke to raise $ 50 m via FCCBs
Gujarat NRE Coke Ltd announced that it will raise $50 million through the issue of Foreign Currency Convertible Bonds to fund investments in its coking coal mines in Australia, Gujarat NRE FCGL Pty Ltd and other expansion plans. The FCCB issue would close on April 11 and would be listed on the Luxembourg Stock Exchange and trade on its Euro MTF Market, the company informed the BSE.
The proceeds of the issue would be used for capital expenditure plans of 400,000 tonnes per annum Greenfield low ash metallurgical coke plant in Dharwad, 20MW captive power plant and to meet various financial needs of other expansion plans, it added.
Western India Shipyard bags order for multi utility craft
Western India Shipyard Ltd has informed BSE that the Company has now won another major contract from PMC Projects (India) Pvt Ltd an Adani Group Company for the construction 'Multi Utility Craft' of the value of about Rs 35 million, under the India Flag.
This construction of 'Multi Utility Craft' will open further more opportunities in the Shipbuilding industry.
Ispat Profiles appoints new directors
Ispat Profiles India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 25, 2006, have appointed Mr. Deepak V Kulkarni & Mr. Nirmalendu Biswas as Additional Directors of the Company.
TopChina expected to be net steel exporter in 2006
China is expected to be a net steel exporter in 2006 as production exceeds demand and as industry lobbies to remove barriers to exports, a Chinese industry official said. China's crude steel output in 2006 could hit 402.75 million tonnes, 2 million tonnes more than its projected demand, according to figures from Mr Qi Xiangdong vice chairman of China Iron and Steel Association. Mr Qi projected that demand growth in 2006 in China would be fuelled by 14% growth in construction steel demand, 36% growth in demand for steel for ship building and by the country's decision to invest 160 billion yuan in its railway network.
Faced with decreased profit margins, the industry is lobbying the government to remove a 17% VAT imposed on exporters of steel products, Mr Qi said. "No other country has this tax. Doesn't it go against World Trade Organization rules?" Mr Qi told reporters, on the sidelines of a conference organized by Metal Bulletin and Minmetals Group. The State Council is studying the proposal to remove the tax, which is disadvantageous to exporters that use Chinese raw materials, Mr Qi added.
Global SS output decreased by 1% in 2005 ISSF
The International Stainless Steel Forum has announced that world stainless crude steel production declined by 1% to 24.6 million tonnes in 2005 for the first time since 2001 due to decrease in the third and fourth quarters. The cut in production in the second half of 2005 was the result of dramatically reduced demand. Significant stock reductions have occurred at stockholders and fabricators ISSF said.
The ISSF said that Asia was the largest stainless steel producing area in the world in 2005 and that Asia was also the only main production area with an increase in stainless steel output over the year. Stainless steel production was driven by China which produced 3.2 million tonnes up by 34% YOY and India which produces 1.5 million tonnes up by 11%. Meanwhile, all other stainless steel producing countries in Asia failed to match their 2004 output. In total Asias stainless steel production grew by 5% to 12.5 million tonnes. This came on top of an extraordinarily high increase in 2004 production of 12%.
The second largest stainless-steel-producing region was Western Europe and Africa, the ISSF reported. Total output in the region shrank by 6.4% in 2005 to 8.8 million tonnes. Only Spain and Italy showed an increase in production compared to 2004 figures. Total output from these regions was 2.5 million tonnes in 2005.
Demand for stainless steel in the Central and Eastern Europe region has currently shown a strong increase, the forum said. However, local production facilities could not meet this demand and stainless steel production in the region decreased by 2.5% to 310,000 tonnes.
CSN plans to double capacity to reach 12 million tonnes
Brazil's third-largest steelmaker Cia Siderurgica Nacional plans to invest $5.1 billion to more than double steel making capacity and expand iron-ore output by 2011.The company's board approved a $3.6 billion four year plan to increase raw steelmaking capacity to almost 12 million tons a year from 5.8 million tons. Half of the production capacity will be built at Itaguai on the Brazilian coast near Rio de Janeiro and the rest will be built either at Itaguai or at another Brazilian location.
The CSN board has also approved $1.5 billion of investment to increase capacity at its Casa de Pedro mine to 53 million tons a year by 2011, a third more than the 40 million tons approved last year. The investment includes a second iron ore pellet facility on the coast near Rio de Janeiro and will allow the company to expand its coal terminal.
CSN CEO Mr Benjamin Steinbruch wants to use CSN's high quality, low cost iron ore from its Casa de Pedra mine to produce slabs for export and first proposed the expansion in 1999. The project was put on hold in 2002.
Expansion of the iron-ore mine would make CSN one of the world's largest iron-ore exporters after Vale, Rio Tinto Group and BHP Billiton.
JFE to raise steel export prices
JFE Holdings Inc, the world's fourth biggest steel maker, said on Tuesday it would raise its Asian export prices for commodity grade steel up to 10%, in a sign Asia's steel market is finally bottoming out. It would be JFE's first price increase in about a year.
A spokesman for JFE Steel, the holding company's steel making unit, said that the company's Chinese, South Korean and other Asian clients had agreed to pay $50-100 more per tonne in the April to June quarter. JFE's hot-rolled coils were quoted at $520 per tonne in the January to March quarter, industry officials said.
"We have seen a sudden, strong improvement in the export market in Asia, and haven't been able to keep up with demand," said a JFE spokesman. "We don't know how far this will continue, but we hope to raise prices further in the July to September quarter."
JFE, which relies on exports for more than 40% of its sales, was hit particularly hard by a fall in prices in Asia and had cut its steel output by 2 million tonnes this business year from its original plan. JFE Steel Corp plans to end its production cut for commodity grade steel next month.
Luxembourg's takeover law changes not aimed at scuttling Mittal Steel's bid
Luxembourg envoy said a takeover law that it planned to enact in May was in no way aimed at creating impediments to Mittal Steel's bid to takeover Arcelor. "The government will have no role in impeding the bid. We intend to bring the takeover bill in May to put in the best international practices in our economy," Luxembourg Minister for Economy and Foreign Trade Mr Jeannot Krecke told reporters in New Delhi. He said there was absolutely no intention on the part of the government to meddle with the Mittal's bid.
Mr Krecke said that the bill is intended to secure the interests of shareholders both majority and minority and that the bill which Luxembourg would bring in May would have to be brought by 25 EU nations too. A separate takeover Bill would be introduced by the EU nations in their respective Parliament to air their own views on takeovers.
China iron ore price talks resume
The fourth round of China's iron ore import price talks with major global suppliers has begun in Shanghai with both sides apparently sticking to their earlier positions, the official Xinhua news agency said, citing a source close to the matter. "The talks are stuck on disagreements over demand issues going forward, and concrete price negotiations have not yet entered an advanced stage," Xinhua quoted the source as saying.
The report added that the talks remain at an impasse despite the perceived pressure to reach an agreement prior to April 1 when yearly contract prices are customarily agreed to. "The two sides seem to be content to carry on a waiting game with neither party likely break anytime soon due to time pressures," Xinhua said, citing the source.
Talks collapsed last week amid China's insistence that it cannot take on another price hike after last year's arrangement forced Chinese firms to agree to a 71.5% increase in the price of iron ore.
This round of negotiations is expected to last about two weeks. Baosteel is scheduled to firstly negotiate with Australian Hamersley Iron Corporation of the Rio Tinto Group and then with another two iron ore giants BHP Billiton and CVRD. However, insiders are not very optimistic that the final price will be agreed on during this round of talks. Some observers predict that both sides will not be pressured by the deadline of April 1 and the negotiation will still be a protracted warfare, at least in the foreseeable future.
CVRD seeks new investment opportunities in Asia
Brazil's Companhia Vale Do Rio Doce is looking for new investment opportunities in Asia's mining sector Mr Fabio Masotti CVRD's Head of Exploration for Asia and Oceania said while speaking at Asia Mining Congress 2006. He said that Mongolia, in which the company already has 3.9 million hectares of exploration land, will be a major destination for CVRD, which has earmarked 77% of its capital expenditure for new projects.
"South America was the leading mining region in the 90s for investment and mining development. Political and economic framework meanwhile delayed mining development in Asia, but Asia is coming into focus now," said Mr Masotti. South America accounted for 18% of global mining exploration investment last year, he said. Its share had fallen as it was becoming harder for geologists to find new deposits, he said. Asia and the Pacific accounted for 4.4% last year of global exploration spending last year, while Australia's share was 12.6%, according to Nova Scotia-based Metal Economics Group's survey of 1,431 companies.
He noted that Asia is now only behind North America and South America in new mining development. "In South America, new discoveries are getting harder while in Asia, Mongolia has become a remarkable new member" on the mining horizon. Mongolia received $120 million in new mining investments during 2005, Mr Masotti said. Diversifying out of iron ore CVRD has licenses to mine and explore for gold, copper and coal in Mongolia, said Masotti. Vale is searching for 14 commodities, including nickel, he added.
In 2005, CVRD was the largest producer of iron ore in the world, accounting for about 33% of global supplies. To maintain growth, the company plans to make new investments of $13 billion in the next 5 years.
CSN 2005 earnings up by 1.1%
Brazilian integrated steelmaker CSN reported a 2.01 billion real ($904 million) net profit during 2005 up by 1.1% from 1.98 billion reais in 2004. Net revenue last year came in at 10.04 billion reais compared to 9.80 billion reais in 2004, while gross revenue in the period remained relatively flat at 12.3 billion reais. EBITDA in 2005 declined to 4.59 billion reais from 4.89 billion reais in the previous year while sales volume grew 2.6% to 4.9 million tonnes.
CSN's crude steel output in 2005 came in at 5.2 million tonnes compared to 5.5 million tonnes in the previous year. Out of total sales only 59% was accounted by domestic went to the domestic market against 70% in 2004 reflecting the weak performance in the local market according to the report.
Glenda cyclone disrupts iron ore exports
Global iron ore supply will be further tightened this week as Cyclone Glenda disrupts shipments from Rio Tinto Ltd and BHP Billiton's West Australian operations. The Pilbara iron ore ports of Dampier, Port Hedland and Cape Lambert have all come to a halt in preparation for Glenda.
According to Mr Vic Justice harbor master at Dampier "It will be Friday or Saturday before we can assess the damage and it could then take up to a week on average for the last terminal to be operational," he told a newspaper.
Glenda is expected to grow into a force five cyclone, with wind gusts up to 290 kilometers an hour, by the end of the week.
CVRD halts S Luis pellet plant operations
CVRD has temporarily stopped operations at its S Luis pellet plant in Maranh state in order to perform maintenance and redirect fines for customers in need, the company said in a statement. CVRD said the current level of inventories and the company's growing pellet production at plants in Espito Santo state would ensure pellet supplies until S Luis resumes operations.
The stoppage allows CVRD to redirect iron ore fines, that normally would go to pellet making, to client to meet strong demand for iron ore fines, CVRD said.
This is reported to be a planned stoppage and there is no forecast of when the S Luis plant could restart operations.
The pellet plant in Maranh state started operations in 2002 and produced 6.2 million tonnes of pellets in 2005.
Glencore to supply Russian coal to Korean Western Power
Korea Western Power will enter into a 3 year contract with Glencore for the delivery of 300,000 tonnes of coal annually, the Platts agency reported. Glencore will supply Kowepo with coal bought from KruTrade, a trading unit of Russia's Kuzbassrazrezugol, at a price of $54 per tonne.
The contract allows for increasing coal deliveries. Kowepo owns six power stations in South Korea.
Kuzbassrazrezugol, one of Russia's largest coal producers, is controlled by entities of the Urals Mining and Metallurgical Company. The company, which includes eleven open pit mines, produced more than 40 million tonnes of coal in 2005.
New Zealands Fletcher Steel to raise rebar prices
It is reported that New Zealands Fletcher Building's Pacific Steel is likely to increase prices for reinforcing steel and wire by about 10% from next month due to fall in the exchange rate and higher world scrap prices.
GM Mr Alan Pearson said that the exchange rate has fallen by 11% since last November and scrap prices have increased by 5% in the past month alone. He also said that the increase is consistent with the global trend of rising steel prices.
Pacific Steel is the New Zealands sole manufacturer of reinforcing steel.
Baosteel may accept a 10% iron ore price increase
It is reported that Shanghai Baoshan Iron and Steel Group (Baosteel), Chinas representative during international iron ore price negotiations, may accept a 10% increase for benchmark prices, analysts and insiders said. "The company may finally give in to an up to 10% price increase, a Baosteel source involved in the negotiations, who did not want to be identified, told Interfax.
The source said Baosteel will not accept a more than 15% increase and would rather seen a less than 5% increase.
It is reported that according to an advisor to the negotiations, who asked to remain anonymous, Baosteel was divided over Chinas projected iron ore consumption in 2006 and the Chinese governments participation in the price negotiations. Two weeks ago, China's National Development and Reform Commission and the Ministry of Commerce threatened to manipulate iron ore imports if ongoing price negotiations come to an "unreasonable" conclusion. These threats apparently toughened the iron ore suppliers stance during the talks.
CSN studies partial sale of iron ore mine
Brazilian steel maker Companhia Siderurgica Nacional said on Tuesday it is studying the sale of a share of its Casa de Pedra iron ore mine in the state of Minas Gerais.
CSN CEO Mr Benjamin Steinbruch told analysts that the company's board of directors asked the administration to hire an investment bank to evaluate an eventual sale of part of the mine, the value of which CSN estimates is $5 billion.
US coal output could climb to 1.8 billion tons by 2030
US Energy Information Administration said that the Powder River Basin could help boost US coal production by as much as 64% within 25 years and US coal production could reach 1.8 billion tons by 2030, up from 1.1 billion tons mined in 2004.
The basin could contribute about 657 million short tons of coal, , nearly double the 382 million short tons mined there in 2004, EIA economist Ms Diane Kearney told the EIA's energy outlook conference.
At that time coal could help generate about 57% of the electricity in the United States, she said. Currently about 50% of the nation's electricity comes from coal fired plants.
China likely to see 18% iron ore price hike - Merrill Lynch
Miners are likely to secure iron ore contract price growth of 18% from China, even as the government steps up its attempts to hold the line in negotiations with its three largest suppliers, Merrill Lynch said. We remain positive towards iron ore and believe that producers still have the upper hand in current negotiations and still believe that an 18% increase in iron ore prices is still the most likely outcome, the research note said.
In the short term, Merrill said sentiment will likely be hurt by news of interference in the process by Chinese authorities. Unconfirmed reports from China indicating that the government is looking to cap iron ore import prices by blocking shipments that are over 2005 contract prices are adding to the confusion surrounding the negotiations, Merrill Lynch said.
Merrill said the potential influence of Chinese authorities on the talks was worth keeping an eye on. The possible intervention of the Chinese government raises the stakes and therefore must be taken a little bit more seriously.
Gerdau Ameristeel acquires Callaway Building Products
Gerdau Ameristeel announced that it has acquired the assets of Callaway Building Products, headquartered in Knoxville Tennessee. Terms of the transaction were not disclosed.
For more than 45 years, Callaway Building Products has served the construction industry as a rebar fabricator and supplier of concrete construction products throughout East Tennessee, Eastern Kentucky, Virginia, North Carolina, and Georgia. John Salsbery, former president of Callaway, has accepted a position with Gerdau Ameristeel as sales manager.
"We are pleased to have Mr John Salsbery and the Callaway team joins Gerdau Ameristeel. They bring with them the value of over 45 years of supplying reinforcing steel and related construction products to Knoxville and eastern Tennessee," said Mr Neal McCullohs, vice president of Downstream Operations. "We are very excited about their expertise in the construction products business, and see this as our entry into new markets and customers."
Australia iron ore could grow at 56% by 2010
It is reported that BHP Billiton, Rio Tinto Group and other iron ore miners in Western Australia could increase production of the steelmaking ingredient by 56% by the end of the decade as they expand capacity and build new mines. Mines in Western Australia could be producing more than 400 million tons of iron ore by 2010, up from 256 million tons in 2005 Mr Gary Stokes deputy director general of the state's Department of Industry and Resources said.
Iron ore supply needs to grow strongly to catch up with demand,'' said Mr Stokes at a Metal Bulletin conference in Beijing. We have the resource base to support the growth.''
Miners are planning expansion up to 315 million tons a year by next year, and studying expansion up to 370 million tons over the next three to four years, Mr Stokes said. Including other initial studies, there's a potential output of more than 400 million tons, he said. There are six existing producers, and nine proposed developers and as many as 40 other projects in various stages of exploration, he said.
Rio and BHP, the world's second and third-largest iron ore exporters, are spending $2.65 billion to expand Western Australian mines to meet surging Chinese demand. This demand is spurring developments by smaller miners such as Midwest Corp. and Fortescue Metals Group Ltd., who are studying projects worth more than $3.9 billion in Western Australia.
Australia is the world's largest iron ore exporter, with almost all the raw material being mined in Western Australia.
KISA lowers steel demand outlook for South Korea
The Korea Iron & Steel Association said that it has lowered its earlier forecast for this years domestic demand and exports of steel products. The association attributed the adjustment to the wons strength against the Japanese yen and Chinas growing self sufficiency in steel.
Domestic demand and inventories will likely come to 47.27 million tons this year up by 1.5% from a year earlier due to the bullish manufacturing sector, such as automobile and ship production KISA said. However, the projected figure is lower than the associations earlier forecast of 47.38 million tons.
Exports of steel products are likely to increase by 1.1% to reach 16.44 million tons this year lower than the earlier projection of 2%. In contrast to the earlier expectation, steel imports will continue to rise this year to reach 19.17 million tons up by 1.5% from the previous year.
Euro Steel sells stake to BEE Isitali Consortium
Euro Steel, one of South Africa's major stockiest and distributors of stainless steel and metal products, has sold a 25.1% stake in its business to the black economic empowerment group, Isitali Consortium, for an undisclosed amount. The BEE partnership between Euro Steel and the Isitali Consortium had been funded by Capricorn Capital Partners and Blackstar Investors plc. The transaction, while subject to regulatory authority approval, is effective from March 1 2006.
Mr Colin Wilson MD of Euro Steel said that the company had found a very suitable partner in the Isitali Consortium. "From the outset, we liked the synergies between the two companies as the Isitali Consortium is made up of people who are in the industrial market and are already users of stainless steel and aluminium products," he commented.
Dr Zolile Maqetuka, chairperson of the Isitali Consortium, said the consortium comprised individuals focused on the engineering sector. Its priority would be on supplying products for the government's identified infrastructure development projects. "Over the next five years, the government has earmarked R372 billion to develop infrastructure in the country. As one of the significant stainless steel and aluminium distributors in South Africa, we want Euro Steel to have the opportunity to be involved as a supplier on these projects," Dr Maqetuka said.
Mittal Steel launches 8 billion euro loan
It is reported that 8 billion euro syndicated loan backing Mittal Steel's bid for Arcelor has been launched to a wider syndication, bankers close to the deal said on last Friday. The deal consists of a 5 billion euro acquisition facility which funds the cash portion of the bid, and a 3 billion euro refinancing facility which repays a $3.5 billion 364 day bridge loan of December 2005 that financed Mittal Steel's acquisition of Ukrainian steelmaker Kryvorizhstal.
Both facilities are being syndicated together and have identical maturity splits, with one third of the debt in a one year tranche, one third in a three year tranche and one third in a five year tranche, bankers said.
Arrangers Citigroup, Goldman Sachs, Societe Generale, Commerzbank, CSFB and HSBC have launched the deal to around 20 of Mittal Steel's relationship banks, which have been invited to sub underwrite the loan. Mittal Steel's relationships banks have been invited to sub underwrite 600 million euros each with a view to holding 400 million euros after syndication.
AK Steel bags award for safest coke plant operation
AK Steel announced that its Ashland Kentucky coke plant has been selected to receive the Max Eward Safety Award from the American Coke and Coal Chemicals Institute. The award recognizes the ACCCI-member coke plant with the best safety record during 2005. AK Steel's Ashland coke plant employees worked the entire 2005 year without recording a single OSHA Recordable Injury.
This marks the eighth time in the past nine years that an AK Steel coke making facility has been honored as the industries safest. The company's Middletown, Ohio coke plant is a seven-time recipient of the Max Eward award. It also had an outstanding safety record last year and finished second in the industry-wide competition for the 2005 award.
"We salute our Ashland coke plant employees for their tremendous safety performance during 2005 which earned them this coveted award," said Mr James L Wainscott, chairman, president and CEO of AK Steel. "Nothing is more important at AK Steel than employee safety, and it is gratifying to have our Ashland coke plant employees recognized for their dedication to work safely each day."
"The employees of AK Steel's Ashland coke plant have made safety their top priority," said Mr Bruce Steiner, president of ACCCI. "Coke plants are challenging work environments from the standpoint of keeping employees safe, and AK Steel has done a tremendous job year after year at both Ashland and Middletown to protect its most important asset - its people. The Ashland plant's employees and managers are to be congratulated for their extraordinary 2005 safety record and demonstrating that they are working under the principle of Safety First."
NTMK to overhaul soaking pits in blooming mill
Nizhnetagilsky Metallurgichesky Kombinat JSC a member of Evraz Group has planned a thorough overhaul of blooming mills soaking pits. The repair of all soaking pits will be completed within 2006.
The blooming mill department contains 36 soaking pits united in 9 groups, 4 pits in each group. To date, NTMK has completed the repairs of 3 soaking pit groups. Due to the repair schedule, all the subdivisions of the blooming mill department proceed with the realization of the production program.
According to the NTMK release, the company has 6 functioning rolling shops and the blooming mill was set into operation in 1947, among the first NTMK rolling shops.
Coal mine flooding traps 4 in Guangdong
Four farmers remained trapped beneath the shaft of a flooded coal pit in Lianzhou City, South China's Guangdong Province. The flooding took place at the coal pit with Daoliushui Village in Jiubei Township of Lianzhou City, situated in the mountainous northwestern part of Guangdong, on Monday when five farmers were digging coal inside the coal pit without legal license. One of the farmers managed to escape, local sources said.
Rescue operation for those trapped is going on and the cause of the flooding is under investigation.
The coal pit, without proper equipment for coal production suchas power supply, was shut down time and again. But the coal bed is shallow and is easily dug, farmers from nearby areas often sneak down the shaft to dig coal.
Fortescue manages $200 million loan for Pilbara
Fortescue Metals Group Ltd has arranged a $200 million financing facility to keep development of its Pilbara project moving along, as it seeks up to $2 billion in project financing. Fortescue said Citigroup arranged the $200 million syndicated loan note facility to keep the project on track while Fortescue considers its financing options.
"The establishment of this term facility provides Fortescue with time and flexibility to optimize the respective debt and equity components of its project finance program while continuing the expedited delivery of the project," Fortescue said.
With the loan note in place, Fortescue said it was scheduling other key construction and procurement contracts to maintain the project timeline. It signed a contract to dredge the port area at Port Hedland, which is due for completion in February of next year. Fortescue is targeting first production in the first quarter of 2008.
Jiangsu Zhongye proposes to buy Novoeste railway in Brazil
Chinese group Jiangsu Zhongye Iron and Steel Company, from the steel and manganese sector has put forward a proposal to acquire a railroad in Brazil. Other companies interested in acquiring Novoeste include Koreas Asila, Bolivias US-owned Ferrocarril Oriental and Brazils ALL.
The Novoeste railway links the city of Corumb on the border between Brazil and Bolivia in the Central-West region, to Brazils main port in the city of Santos, in the state of S Paulo. The railway is used for transporting mining products abroad from the Urucum mine, located in, in the state of Mato Grosso do Sul.
The mine, which has 22 million tons of iron ore reserves and 7 tons of manganese, is of interest to the Chinese group, according to experts quoted in the Brazilian press.
Novoeste is controlled by Brazilian company Brasil Ferrovias, which also owns two other railways, Ferronorte and Ferroban, the main routes through Brazil. Brasil Ferrovias is, in its turn controlled by state bank BNDES and by investment funds of state banks Banco do Brasil and Caixa Econica Federal.
Severstal shareholders vote to increase authorized capital
Russia's largest steel company Severstal is aiming to increase its authorized capital by 72%, a company statement said Tuesday. Severstal shareholders decided at a session Monday to increase the company's authorized capital to 9.493,731 million rubles ($341,870) by floating 397.518,300 million ordinary shares at par value of 0.01 rubles.
Severstal's current authorized capital is 5.518,548 million rubles ($198,723). Its main shareholders are OOO Kapital (66.12%) and Jadeglide Limited (16.63%).
