March, 03 2006
E- Coal auction bridging coal producers and consumers
While Coal India Limited expects e-auction of coal to fetch them a profit of Rs 900 crore this year consumers are happy that they have direct access to the source and do not have to go through middlemen.
It is said that earlier many genuine bidders were prevented from submitting tender forms by some people, which formed a cartel to corner the benefits. But with bidders now able to bid from the safety of their offices or home, the middlemen now find themselves helpless. Earlier brokers and middlemen cornered supplies of coal at cheaper rates and supplied them to users at inflated rates, thereby making huge profits at the expense of CIL. Some of this money, they feel, probably found their way into the pockets of politicians and political parties.
E-auction has put such practices to rest and allowed genuine buyers to bid for coal at market prices. The fact that buyers, big and small, willingly have paid CIL Rs 900 crore more for the same quantity of coal, officials point out, proves that the prices paid to CIL before e-auction were artificially depressed.
Some politicians are opposing e-auction of coal and some of the traders challenging it before the apex court. Union minister for coal Mr Shibu Soren has said that he would explore the possibility of doing away with e-auction of coal. Jharkhand CM Mr Arjun Munda has demanded the scrapping of e-auctioning on the grounds that many of the coal based units in the state were not getting adequate coal.
NMPT improves daily record of handling of iron ore
A record quantity of 32,499 tonnes of iron ore fines was handled at New Mangalore Port Trust on March 2nd while loading MV Dubai Jewel. This is the highest quantity of iron ore fines handled at the port manually in a day in a single vessel surpassing the previous record of 28,391 tonnes handled on February 15 in the vessel MV Namrun, Mr S Gopalkrishna Traffic Manager said in a press release.
Another achievement is the record handling of 12129 tonnes of iron ore fines in a single shift yesterday surpassing the earlier record of 11,061 tonnes handled on February 15, the release said.
So far the port has handled 5 million tonnes of iron ore fines during the current fiscal year 2005-06.
Gallantt Metal to launch IPO soon
Gujarat based Gallantt Metal Limited will raise Rs 37.12 crore from the capital market to part finance a Rs 190.82 crore greenfield steel plant at Gujarat. Issue opens on March 6 and closes on March 10.
The first phase of the two-phase integrated steel plant comprises of sponge iron unit of 99,000 tonnes per annum capacity, a billet unit of 176,429 tonnes per year and re rolled products division with 168,300 tonnes per annum.
The commercial production of phase one has already commenced from December, 2005. Company has begun the implementation of second phase for installing 18 MW captive power plant to be commissioned by October, 2006. Gallantt is presently utilizing 60 per cent of its capacity and plans to utilize complete capacity by 2008.
"We will increase our capacity utilization every year by 10% and plan to make it 100 per cent by 2008," Director Mr Nitin Kandoi said. Company is also planning to launch special steel and alloy, he said.
Sical Logistics to raise $125 million
India's leading provider of integrated multi-modal logistics for bulk cargo port terminals and related activities Sical Logistics Ltd announced that the company's board has approved a resolution to raise $125 million through FCCB and GDR.
Funds raised through foreign currency convertible bonds and global depository receipts will primarily be used for the coal and iron ore terminal project being set up on a build, operate, and transfer basis at Ennore and container trains on all India license for the JNP-Delhi sector and three other strategic sectors. The funds would also be used for offshore logistics, trucking and towards working capital, a company release said.
Northwest Pipe Company announces Denver order
Northwest Pipe Company reported that it was named to supply approximately $5 million of welded steel pipe for the Denver Water Board. Northwest Pipe will supply approximately 20,225 feet of 54-inch diameter steel pipe. The pipe is expected to be manufactured in the Company's Denver, Colorado division with delivery scheduled to begin in the third quarter of 2006. The pipe will become part of Denver's recycled water system.
The Denver Water Board is the oldest and largest water utility in the state of Colorado.
Northwest Pipe Company manufactures welded steel pipe in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon and has nine manufacturing facilities across the United States and Mexico.
China key to health of global steel industry - Moody's
The global steel industry is increasingly dependent on China because of the country's growing production capacity and consumption levels, Moody's Investors Service said. China, as the world's largest producer and consumer of steel, exerts a huge impact on the industry globally and even more sharply in the region, Moody's said in an industry report.
Moody said that China's steel production, which now represents 30% of global output, continues to grow strongly, reaching 349 million tonnes in 2005, up by a substantial 25% from the 2004 level, yet consumption has also grown substantially in line with economic development. However, consumption growth moderated from the second half last year as government initiatives to cool certain heated sectors took effect. 'Accordingly, overcapacity has become apparent, driving up China's sales abroad. But China still relies on imports of high grade coated products due to a domestic shortage, the report said.
This year, growth in Chinese steel production will largely depend on the success of the government's initiatives to manage down the industry, particularly given its strong project pipeline. Some estimates suggest that as much as 50 mln tons will be added to capacity in China this year alone, Moody's said.
Domestic demand is likely to exhibit continued solid, albeit moderating, growth consistent with the government's plan. Moody's does not expect a material slowdown in steel demand as we continue to see GDP growing by 8% to 9% in 2006 and 2007. We think that fixed asset investments will also exhibit solid growth rates, underpinning demand for steel, the report said.
Top steelmakers in Japan forecast strong results
It is reported that Japan's top four steelmakers have forecast record sales and profit for the fiscal year through March. The latest projections confirmed that the steelmakers have already dealt with cutbacks in output after rising production from China. But a large part of the negative effect on their profitability from such moves has been offset by the weaker yen.
Nippon Steel, Japan's largest steelmaker, said it now expects a record group net profit of 330 billion yen ($2.84 billion), higher than the 320 billion yen ($2.75 billion) profit it previously forecast.
JFE left unrevised its group net profit outlook at 310 billion yen ($2.67 billion) and lowered its group operating profit outlook to 510 billion yen ($4.39 billion) from 520 billion yen ($4.47 billion) due to lower commodity grade steel output.
Sumitomo, the third largest steelmaker, said it revised upward its group net profit outlook to a record high 203.0 billion yen ($1.75 billion).
The fourth-largest Japanese steelmaker, Kobe Steel Ltd., forecast a group pretax profit of 170 billion yen ($1.46 billion), revising up its previous outlook for a 165 billion yen ($1.42 billion) profit.
Mittal Steels plan for Arcelor leaked to French press
Mittal Steel said that the industrial plan for its takeover bid for European steel giant Arcelor SA was leaked to the French press. The plan, which is the rationale for Mittal's bid, was given confidentially to government officials, the company said in a statement. The executive summary of the plan was leaked to a French newspaper, the company said. "This breach illustrates the concern that Mittal Steel has had in sharing non public details of the industrial plan with selected stakeholders," the statement said, adding the company "expresses its surprise at this breach of confidentiality" and that it intends to increase security to ensure privacy.
Mittal Steel said it was surprised by the leak and it would take steps to prevent it happening again.
Mittal Steels 6 page confidential document was reproduced on the Web site of La Tribune
Mittal Steel said the document was not intended to be a full fledged industrial plan. "It does not purport to fully reflect all industrial, social and economic aspects of the proposed transaction," the company said in a statement. "Mittal Steel has offered to meet with representatives of the various governments involved to discuss those aspects in more detail."
OYAK still needs a partner for Erdemir
It is reported that the Turkish Metallurgy Engineers Association said that OYAKs declaration that it ended partnership with Arcelor in Ataer is a tactical decision taken due to obligations and OYAK will definitely have to partner with a foreign company due to their lack of experience.
The Metallurgy Engineers Association in the written statement said that an OYAK official's statement during the take over of Erdemir that "cooperation with Arcelor will continue after the transfer" signaled the partnership continues, and will continue though not on paper at the moment.
OYAK, who gave the highest proposal of $2.77 billion in the tender held for 46.12% of Eedemir, paid the final transaction fee and took over the steel giant on last Monday. OYAK had talks for the sale of a 41% share of Ataer it previously established in order to take over the monopoly to Arcelor, but announced it gave up the partnership on the grounds that no view came from the Competition Board and a time restriction will be implemented in this case.
It is also reported that OYAK has formed new board for Erdemir comprising of Mr Serif Coskun Ulusoy, Mr Mehmet Aydin Muderrisoglu, Mr Ali Caner Oner, Mr Celalettin Caglar, Mr Ergun Oktay Okur, Mr Dinc Kizildemir, Mr Halil Cem Karakas and Mr Ozan Bekci.
Gas leakage poisons 8 at Yuzhong steel plant in Gansu province
Eight people have been poisoned seriously in a gas leakage accident in Yulin County of northwest China's Gansu Province, the state media reported today.
The accident occurred yesterday when a gas pipe at a steel workshop of the Yuzhong Iron and Steel Co Ltd cracked suddenly when eight people were working and the ensuing gas leakage left the eight seriously poisoned. Six of the eight affected are out of danger.
The cause of the accident is under investigation.
Arcelor CEO blames Mr Mittal for political backlash
It is reported that Arcelor has stoked up its attack on Mr LN Mittal, claiming the entrepreneur was to blame for inflaming political opinion against his bid from French, Luxembourg and Spanish governments although some people claim that the protectionist rhetoric from politicians were instigated by Mr Guy DollArcelors CEO.
However, speaking to The Daily Telegraph last night, Mr Dollsaid: "Mr Mittal paid so many visits to politicians, so why do you think they are getting involved. I saw much fewer politicians.'' Mr Dollnow wants to turn the argument back to value, and claims he would like the political furor to disappear. "I have said that the politicians, they have to be quiet. They are not deciding it's up to the shareholders."
Mittal Steel spokesman denied that Mr Mittal had provoked the politicians, saying: "Mr Mittal visited the European politicians to satisfy the concerns they seemed to have after the announcement of the merger offer.''
Highveld due diligence started
Highveld announced that due diligence by several interested buyers for a controlling stake in Highveld Steel & Vanadium has started without giving details
"Several interested parties have commenced due diligence investigations in respect of Highveld. Shareholders are advised to continue to exercise caution when dealing in Highveld shares," Highveld said in a statement.
Andritz bags order from Baoshan for a SS strip line
International Technology Group Andritz received an order from Shanghai Baoshan Iron and Steel Co Ltd for supply of a stainless steel hot strip annealing and pickling line with in line rolling mill for the new stainless steel mill in Baoshan. The order value is approximately Euro 45 million.
The order comprises the complete engineering services and start up of the complete plant as well as supply of important machinery and plant components. All required processes like rolling, annealing and pickling will be based on in-house Andritz Group technologies.
The line has been designed for approx. 900,000 tons of strip per year, depending on the product mix, and will process strip within the thickness range of 2-10 mm and up to 1,600 mm wide. Production is scheduled to start in the summer of 2007.
Andritz Group is a global market leader in advanced production systems for the pulp and paper, steel, and other specialized industries.
Arcelor maintains its stance on Mittal Steels bid
Arcelor said that it has not changed its views on an unsolicited takeover bid from Mittal Steel despite reports saying its managers were ready to talk. "There's no change in Arcelor's stance. We have not received any industrial plan. The financial proposal does not create value for Arcelor shareholders," an Arcelor spokesman said.
Earlier in the day the Website of the Financial Times newspaper said Arcelor's managers would be prepared to talk to executives at Mittal, citing comments made by Arcelor CEO Mr Guy Dolle.
Mechel submits proposal for Elga coal deposits
Mechel announced that in response to a request for proposals from Russian Railways it has submitted a non binding proposal regarding Yakutugol and the development of the Elga coal deposit in Yakutia. "The proposal we submitted is in furtherance to our goal to gain control over Yakutugol OAO, and could also serve to launch Mechel into a strategically very interesting region, one remarkably rich in mineral resources. All of this, of course, is fully on line with our strategy to further strengthen the mining segment," Mechel's COO, Mr Alexei Ivanushkin, said.
The proposal contemplates the formation of a new company to be named Sakhaugol OAO through the contribution by Mechel of its 25%+1 share in Yakutugol OAO and up to $300 million. In return for which Mechel would obtain 51% of Sakhaugol. Other participants in the newly-formed company would include Russian Railways OAO, which would contribute 29.5% of Elgaugol OAO, a company that has the license to develop the Elga deposit and the Government of the Republic of Sakha, which would contribute 39.4% of Elgaugol OAO and 45%-1 share in Yakutugol OAO.
As a result, Sakhaugol would own about 70% of Yakutugol and 68.9% of Elgaugol. Yakutugol OAO is a coal producer that produced 9.9 million tonnes of coal in 2005, most all of which is exported to Asian markets.
The Elga coal deposit has proven reserves, according to Russian reserve standards, of 2.2 billion tonnes of coal, potentially making it the largest coal deposit in Russia.
Mittal Steel Kryvy Rih to reach 10 million by 2010
It is reported in a daily that Mittal Steel Kryvy Rih, Ukraines largest steel producer, plans to invest about $1.2 billion in the next four years towards modernization for increasing steel output by about 14% by 2010 citing GD Mr Narendra Chaudhary. The company plans to modernize three blast furnaces, construct a new converter shop replacing open hearth technology and increase ore output sharply.
It is reported that Mittal Steel Kryvy Rih aimed to boost liquid steel output to 7.9 million tonnes in 2006 from 6.953 million in 2005 and to 10 million by 2010. The company produced 510,000 tonnes of liquid steel in February 2006 compared with 580,000 in January 2006.
Mr Chaudhary said that investment plan included about $250 million aimed at increasing ore output to some 30 million tonnes by 2010 from 15.5 million in 2005.
Reliance Steel & Aluminum acquires Shanghai based Everest Metals
Reliance Steel & Aluminum Co announced that Reliance Pan Pacific, Pte Ltd has completed its purchase of Everest Metals (Suzhou) Co Ltd., a metals service center company based near Shanghai in China. Terms were not disclosed. Reliance Pan Pacific is a JV formed in October of 2005 that is 70% owned by Reliance and 30% owned by Manufacturing Network Pte Ltd. Manufacturing Network sold its 100% interest in Everest Metals to Reliance Pan Pacific on March 1, 2006.
Reliance's CEO Mr David H Hannah, said, "This is a good opportunity for us to expand into a fast-growing region of the world and at the same time continue to serve our existing customers that have established businesses in China."
Everest Metals was formed in 2001 and began processing and distributing primarily aluminum products to the electronics industry in 2002. Everest's 2005 revenues were approximately $5.5 million.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is one of the largest metals service center companies in the United States.
European SS makers strive to recover lost margins MEPS
Financial results reported by the main EU stainless steel companies for the latter part of 2005 were dreadful. Profits fell sharply, and in some cases were eliminated completely. The over-production which MEPS previously reported pushed stainless steel prices down to very low levels, in what one producer has called an unprecedented worldwide drop in prices. This caused several companies to write down the value of their inventories, adding further to their financial deficits.
Even Spains Acerinox, normally one of the worlds most profitable stainless steelmakers, reported a 54% slump in pre-tax income for 2005. The star performer was the companys US affiliate where profits fell by only 21%.
At ThyssenKrupp, the stainless divisions earnings were nearly wiped out. Pre-tax profit for October-December 2005 was a mere 7 million, compared with 125 million in the same period a year before. Most of this seems to have come from the companys nickel alloys operations, and not from the stainless business. TKs cold rolling joint venture in China fell into the red as additional capacities entered the market, creating over-supply and pushing down prices.
Outokumpus operating profits collapsed from 436 million in 2004 to just 83 million in 2005, a drop of over 80%. The Finnish company had an operating loss of 179 million in the fourth quarter.
Ugine & ALZ remained in the black, but annual profit was almost halved. The fourth quarter result represented a return on sales of less than 1 percent. This poor performance prompted parent company Arcelor to commence a strategic review that includes examining a possible sale or spin-off of the stainless company.
MEPS is not surprised that European stainless steel producers are moving swiftly to take advantage of better market conditions this year. But their financial results for the first half of 2006 are still likely to remain less than satisfactory.
6 killed & 25 trapped in Hebei coal mine explosion
6 people were killed and 25 others trapped in a coal mine explosion in Cixian County of North China's Hebei Province at Thursday afternoon. The blast occurred at around 1 PM on Thursday at a town-run coalmine in the county's Huangsha Town and six people on the ground died, said the official.
The powder at a worksite underground exploded and caused the tragedy, said an official with the Hebei provincial administration for production safety. Rescuers are searching the trapped and further investigation into the explosion is underway.
The coal mine was under safety rectification and applying for the production license, which had been revoked due to inadequate safety facilities, said the official.
Laiwu Steel holders to vote on Arcelor deal on March 30
Laiwu Steel Corp said that its shareholders will meet March 30 to vote on the planned investment by Arcelor in the company.
Laiwu Steel Corp's controlling shareholder, Laiwu Steel Group, signed an agreement with Arcelor to sell a 38.41% stake in the listed unit. Laiwu Steel Group holds a 76.82% stake in Laiwu Steel Corp. Arcelor will acquire a total of 354,236,546 shares in Laiwu Steel Corp. for 2.09 billion yuan ($259 million).
ASIC targets Fortescue over Chinese deal
Fortescue said the Australian Securities and Investment Commission was starting the proceedings in relation to agreements signed with China Railway Engineering Corporation, China Harbor Engineering Corporation and China Metallurgical Construction Corporation regarding Fortescue's massive iron ore project in north Western Australia. The charges relate to the disclosure of agreement details, which Fortescue said had been well covered in Australian Stock Exchange announcements and media releases in March 2005.
ASIC said it was seeking penalties of up to $3 million for the company and $600,000 for Mr Forrest.
Mr Forrest said he and the company would vigorously contest the charges. Fortescue's chairman Mr Gordon Toll said it has acted appropriately in releasing the agreement details. "Fortescue released all appropriate information and disclosures to the market in a timely manner," Mr Toll said. "We remain strongly of the view that the company acted legally and in shareholder's best interests." The legal proceedings had not affected the development of the project, he said.
Allegheny raises SS prices
Allegheny Technologies Inc announced that its unit ATI Allegheny Ludlum is increasing selling prices for cold rolled stainless steel sheet and strip products to offset rising manufacturing costs and to support capital investments and growth. The increases include duplex alloys and auto exhaust alloys. Allegheny Ludlum is also increasing selling prices for stainless steel plate, tool steel, and hot-rolled sheet products.
The price increases, effective March 20, range from 3% to 6%.
The following are the indication
-- Selling prices for 200 series, 300 series, and non-automotive 400 series stainless steel sheet and strip products are being increased by approximately 3%.
-- Selling prices for AL 2003(TM) lean duplex alloy and AL 2205(TM) duplex alloy sheet, strip, and plate products are being increased by approximately 3%.
-- Selling prices for auto exhaust alloy sheet and strip products are being increased by approximately 6%.
-- Selling prices for stainless steel plate-mill-plate products are being increased by approximately 4%.
-- Selling prices for stainless steel continuous-mill-plate, hot-rolled sheet, and hot-rolled tubular quality coil products are being increased by approximately 6%.
-- Selling prices for tool steel products are being increased by approximately 5%.
All surcharges will remain in effect as described on the Allegheny
Allegheny Technologies Incorporated is one of the largest and most diversified specialty metals producers in the world with revenues of over $3.5 billion in 2005.
Steel Warehouse to expand LJT Tennessee operation
Steel Warehouse, an integrated steel service center headquartered in South Bend Indian US has chosen Chattanooga as the location to build a new temper mill and cut to length line as expansion its sister company LJT Tennessee at an investment of $7.25 million. The facility will contain one of the largest temper mill in the world with the capacity to handle 3/4" thick steel in widths up to 100 inches.
LJT Tennessee is a manufacturer of steel tubing. The company purchased the former Huntco Steel facility located at Centre South Riverport in 2002.
Steel Warehouse is an integrated steel service center providing numerous processing services for the delivery of production-ready steel to metal stampers, formers, fabricators and manufacturers. Steel Warehouse is a family owned and managed company headquartered in South Bend and operates a central plant and six branch facilities.
Masteel expects better performance in Q1 of 2006
Malaysia Steel Works (KL) Bhd Masteel is optimistic its performance for the first quarter of 2006 and will see an improvement from last year due to the gradual recovery of global steel prices.
Despite an increase in sales volume resulting in higher revenue, it reported a lower profit for the fourth quarter ended Dec 31, 2005 largely due to softening of global steel prices, which caused net profit to fall to RM3.9 million from RM5.5 million a year earlier. For the whole year, its net profit fell by 33% to RM23.3 million from RM35.9 million in FY04 though revenue rose 9% to RM306.4 million from RM280.8 million.
Masteel MD Mr Tai Hean Leng said in addition to higher selling prices, the company would also continue to increase its export to Asean countries, with an estimate of a further 15% rise in volume from last year. Last year, it exported to Thailand, Indonesia, Vietnam and the Philippines. It exports 30% to 40% of its products, which include high-tensile deformed steel bars, mild steel round bars and steel billets.
Mr Tai said Masteel had since the fourth quarter of last year invested RM50 million in new technology to reduce the cost of producing steel products and increase productivity. Mr Tai said the benefits of the investments were expected to come on stream from the third quarter of this year.
Masteel is one of the top five integrated steel companies in Malaysia, commanding a market share of about 10%.
Nippon Steel says Asia steel market has hit bottom
Nippon Steel Corp, world's No 3 steel maker, said that the Asian steel market has hit bottom, and the company expects the market and export prices of steel to recover gradually in the next business year.
"We have seen a rundown in steel inventory in China and some Chinese companies are moving to raise prices. I think the worst is over," Nippon Steel's CFO Mr Nobuyoshi Fujiwara told a news conference.
Japans steel exports down in January 2006
Japan's steel exports totaled 2.27 million metric tons in January, down by 10.7% from a year earlier, the Japan Iron and Steel Federation said.
Lower demand from most major importers of Japanese steel saw exports slide on year for the seventh consecutive month, while they also shrank by 15.8% from December. Exports fell by 11.6% on year in December, by 21.6% in November, by 4.2% in October and by 4.4% in September.
Demand for steel from South Korea and China, Japan's two biggest customers, continued its downward spiral in January, dropping 6.4% and 32.3% on year, respectively. Exports to South Korea have now fallen for 13 straight months, while those to China have declined for five consecutive months.
Thailand and Taiwan also imported substantially less steel from Japan in the first month of the year, according to the data. Exports to Thailand were down for the third straight month by 14.0%, while those to Taiwan fell for the first time in two months by 14.3%.
Exports to the US were the sole riser in January, jumping 47.6%, up for two consecutive months.
Nisshin Steel announces new President
Japans Nisshin Steel Co announced that it will promote Vice President Mr Hideo Suzuki to president on April 1 and the current president Mr Toshihiko Ono will become board chairman,
After graduating from Keio University, Suzuki, 60, joined Nisshin Steel in 1968. He has been a vice president since April 2005.
Kazakh SSGPO increases pellet & concentrate exports in January
Sokolov Sarbai Mining Production Association SSGPO, Kazakhstan's biggest iron ore producer, increased pellet exports 6.9% YOY in January to 655,000 tonnes and doubled concentrate exports 500,000 tonnes as per Rudprom, the Russian agency which collates statistics about FSU ore producers
SSGPO boosted pellet exports to China 170% to 300,000 tonnes, while pellet exports to Russia plummeted 29.4% to 355,000 tonnes. However concentrate exports to Russia grew, by 80% to 450,000 tonnes.
Kazakhstan reduced iron ore commodity production 18.4% YOY in January to 1.45 million tonnes.
West Hawk acquires coal resource in Northwest Canada
West Hawk Development Corp announced that it has successfully completed the acquisition of a number of large Coal holdings in Northern Canada through an out right purchase agreement of all rights to 272,503 acres of Coal licenses in the Tulita, formerly Ft Norman, Seagull Island, Tate Lake and the Mattson Formation on or near the navigable Mackenzie and Liard Rivers in Northwest Territories of Canada.
The company is commissioning an independent review of all the historical data in order to ascertain an inferred mineral resource estimate compliant with the National Instrument 43-101 guidelines.
West Hawk is a mineral exploration and development Company committed to building shareholder value through the development of its Coal properties in Western and Northern Canada.
UK Coal announces bigger loss
UK Coal announced a wider loss for the last year but said it returned to profitability in the final quarter. UK Coal reported a loss for the year of 62.2m compared with 33.5m a year earlier
"The actions taken in 2005 leave the Group well placed for the coming year and this is supported by the performance in the final quarter of 2005 and the first weeks of 2006," said Chairman Mr David Jones. "The group is now well placed for the coming year, having returned to profitability in the final quarter of 2005. The outcome of the energy review will be important for UK Coal," added Mr Jones.
Liebherr and Atlas Copco to open service centers in Kemerov
It is reported that representatives of Germany's Liebherr and Swedish Atlas Copco are looking into the prospects of cooperation with coal company Kuzbassrazrezugol in Kemerov region.
There is an opportunity to open proprietary service centers providing maintenance services for drilling equipment of Atlas Copco and excavators of Liebherr. Service centers with spare parts stocks are to be build on the base of one of the KRU pits.
333 nonstop train lines for bulk cargo in operation in China
A total of 333 nonstop train lines for bulk cargo such as coal, ores and petroleum are in operation in China, said sources with the Ministry of Railway on Thursday. The lines, 61 more than last year, were considered a further effort to break the bottleneck of China's railway transportation capacity for bulk cargos, especially those of energy resources. Among those lines, 85 directly link coal mines, ports or steel mills.
China started nonstop train lines for bulk cargo in 1998 to meet the rising demand for transportation of energy and other resources of the booming economy.
AK Steel ordered to pay at least $46.2 million in lawsuit
A federal judge has ordered AK Steel Corp to pay at least $46.2 million to 1,250 former employees in a class action lawsuit over pension benefits. US District Judge Sandra Beckwith ordered AK Steel on February 22 to pay about $37.6 million in damages and $8.6 million in pre-judgment interest for a total of about $46.2 million, but the judge also ordered that post-judgment interest will accrue at a rate of about 4.7 percent per year until the payment is made.
The 2002 lawsuit charged that the company had miscalculated the lump sum pension payment for participants in one of its pension plans. The plaintiffs claimed the method used to calculate the payments does not comply with federal law and resulted in underpayments. The plaintiffs all retired or were terminated on or after January 1, 1995, and got their pension benefits under the Retirement Accumulation Pension Plan in a lump sum by April 1, 2005.
AK Steel notified the Securities and Exchange Commission on Thursday that it intends to appeal the ruling.
G Steel net up by 4.38% in 2005
G Steel Plc, one of Malaysias top three hot rolled coil producers, posted a net profit of over 2.7 billion baht out of last years total sales of more than 22.2 billion baht. According to the companys announcement, G Steels net profit during last year was approximately 931 million baht higher than that of 2004, or an increase of 4.38%.
Regarding this years operation plans, the company said, it is undergoing a construction project in an effort to increase its hot rolled coil production capacity from currently 1.8 million tonnes a year to 3.4 million tonnes. The de-bottlenecking project to boost the capacity is expected to cost about 13 billion baht, or 320 million dollars, and would take about 18-20 months for completion.
Moreover, the company will add two more types of products, Skinpass HRC and Pickled and Oiled HRC, as the former will come onto production line in the last quarter of this year while the latter in the first quarter of next year.
Russian tube trader Inprom plans IPO
Inprom, a trader of steel tubes, based in Taganrog in Southern Russia said it planned to raise as much as $70 million in an initial public offering this year CFO Mr Alexander Larionov said in an interview at a conference in Moscow.
Inprom, which started selling steel products to Russian customers in 1996, wants to raise $60 million to $70 million, Mr Larionov said.
US Steel appoints Mr Stein as GM of Fairfield
US Steel Corp has announced that Mr Merle Stein has been appointed general manager of Fairfield Works, effective March 1, replacing Mr Robert Cary, who elected to retire following 41 years of service. Mr Stein joined US Steel in 1970 at the company's former National Plant in McKeesport and since than has held several positions in various areas including tubular and sheet operations, US Steel Kosice and acquisition of National Steel assets. Mr Stein was GM of Granite City Works.
Mr Robert Cary joined U. S. Steel in 1964 as an engineer at Fairfield Works and was promoted to GM of Fairfield Works in 2004.
Paulson announces additional director nominees for Algoma
Paulson & Co Inc, a major shareholder of Algoma Steel Inc, which had requisitioned a special shareholder meeting to replace a majority of current Algoma directors, announced that it intends to nominate, if necessary, two additions Mr John Paulson and Mr Ronald Mayers to its slate to fill open positions on the board.
Based on how the upcoming shareholder vote is structured, it is possible that there will be seven rather than five open positions on the board. In addition to John Paulson and Ronald Mayers, Paulson's nominees include Canadian Senator Mr J Trevor Eyton former Chairman of Brascan, Mr Farokh Hakimi former CFO of Inco, Mr John Hritz former President of AK Steel, Mr Nicholas Tolerico former President of ThyssenKrupp Steel Services and Mr Michael Waldorf Senior VP of Paulson & Co Inc.
Paulson said Our slate of independent nominees is a better alternative to the current directors who have done little for shareholders despite spending over a year exploring strategic alternatives. After their endless work on maximizing value, Algoma still trades at the lowest multiple of the major steel companies. It is obvious that the current directors lack the financial expertise and strategic vision necessary to unlock Algoma's value.
Mr Benedetti appointed as director of Russel Metals
Russel Metals Inc has announced that Mr Alain Benedetti has joined the Company's Board of Directors effective February 23, 2006, filling the vacancy created by the resignation of Mr. Pierre Brunet. Mr. Benedetti has also been appointed Chair of the Audit Committee.
Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names.
Metals USA reports 2005 results
Metals USA Inc, a leader in the metals processing and distribution industry, announced its 2005 results in which sales revenues exceeded $1.6 billion up by $129.2 million as average realized sales price per ton for the Flat Rolled and Plates and Shapes Groups was up 13.6% partially offset by a 4.2% decline in shipped tonnage.
Sales activity for the first two months of 2006 continued to be solid and Metals USA has a positive view on its first quarter performance.
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.
Kazakhstan to China gas pipe line study starts
Kazakh national oil and gas company KazMunaiGaz and China National Petroleum Corporation have started to jointly develop an investment study for the construction of a gas pipeline from Kazakhstan to China, Mr Yury Rubchenkov, deputy director of KazMunaiGaz's pipeline development department, said at a conference in Almaty. He said that it is planned to complete this work by the end of this year.
A preliminary investment study was carried out in 2005. "Last year KazMunaiGaz and CNPC jointly completed a preliminary investment study for the construction of the gas pipeline to China. In August 2005 KazMunaiGaz and CNPC signed a new agreement on the joint development of an investment study, which is the next project stage, upon the completion of which the sides will be able to reach an investment decision to start building the pipeline, Mr Rubchenkov said.
He said that the technical aspects of the project have already been agreed and the capacity of the pipeline is planned at 30 bcm of gas per year. The launch of the first phase of the pipeline, with a capacity of 10 bcm is planned for 2009 and the second phase, bringing capacity up to 30 bcm in 2012.
