April, 20 2006
JSW Steel announces 2005-06 results
JSW Steel Ltd has announced unaudited results for the last quarter & year ended March 31, 2006. The Company has posted a net profit of Rs 4106.80 million for the quarter ended March 31, 2006 where as the same was at Rs 4041.40 million for the quarter ended March 31, 2005 (Q4 FY 04-05). Total Income (net of excise) is Rs 19572.90 million for Q4 FY 05-06 where the same was at Rs 21923.90 million in Q4 FY 04-05.
JSW has posted a net profit of Rs 8565.30 million for the year ended March 31, 2006 where as the same was at Rs 8701.10 million for the year ended March 31, 2005. Total Income (net of excise) is Rs 65630.60 million for FY 05-06 where the same was at Rs 66983.40 million for FY 04-05.
In view of amalgamation of Euro Ikon Iron & Steel Pvt Ltd, Euro Coke & Energy Pvt Ltd and JSW Power Ltd with the Company wef. April 01, 2005, the figures for the quarter & year ended March 31, 2006 include the figures of erstwhile Euro Ikon, Euro Coke and JPL and hence, are not comparable with the figures of the corresponding periods.
TATA Steel & Bhilai Steel Plant get awards for sustainable development
TATA Steel and SAILs Bhilai Steel Plant has won the first CII-ITC Sustainability Awards for the year 2006 for excellent performance on sustainable development as Large business organization and Independent unit respectively. Commerce and Industry Minister Mr Kamal Nath on Wednesday presented the awards at the Confederation of Indian Industry Annual Conference.
The Awards have been instituted by the CII-ITC Centre of Excellence for Sustainable Development and were decided by an eminent jury led by Mr R A Mashelkar Director General CSIR and Secretary Department of Industrial Research.
States signing MoUs without assessment - Mr Paswan
Indian union minister Mr Ram Vilas Paswan expressed unhappiness with what it called the indiscriminate signing of MoUs by some states for steel projects without assessing iron-ore reserves. "Some state governments are signing MoUs with steel majors for projects without assessing the deposit" Mr Paswan told reporters.
Both Orissa and Jharkhand have signed MoUs running over Rs 100,000 crore and Rs 50,000 crore for new greenfield steel project.
Mr Paswan said there was no shortage of iron ore in India. "I am trying to implement a system by which export of iron-ore will be done after meeting domestic demand" Mr Paswan said.
Centre had limited scope as ironore is a state subject but the proposed national policy framework to deal with raw materials was expected to resolve the ongoing tussel.
NINL likely to merge with SAIL by year end
Neelachal Ispat Nigam Limited chairman Mr SD Kapoor told media that the proposed merger with the Steel Authority of India Limited is expected to be completed by the year end, said company and that the process would gather momentum once a merchant banker was appointed to carry it forward.
He also informed that is continuing exploration of its proposed captive iron ore mines at Basada and Mithirda in Sundargarh district. The work is likely to be completed in the second quarter of 2006-07 and commencement of iron ore mining is planned in last quarter of 2006-07. Initially 2 million tonne of iron ore will be mined. The capacity will be increased with the expansion of NINL steel plant at Jajpur. An investment of Rs 200 crore would be made over three years in mechanized state of art mine with crushing and screening plant, he added.
Besides, a steel melting shop will be set up with a capacity of 0.9 million tonne in the companys second phase expansion drive involving around Rs 1,200 crore. Once this is commissioned, the company will start producing mild steel and special steel billets Mr Kapoor said.
100% FDI in Indian coal sector allowed
Indian government has allowed 100% FDI in coal sector to provide adequate quantity of the fuel to core sectors such as power and steel as well as non-core sectors, Coal Minister Mr Shibu Soren announced. "Within the limitations we are trying to encourage private participation for promoting competition in the sector with the objective of providing best quality of coal to our consumers," he told reporters at CII Annual conference here.
Admitting that corporate governance in state owned coal firms was an area of concern, he said in the past two years hectic efforts were made to streamline functioning of these companies and appointing independent directors. He said the ministry's move to start e-auction of coal has yielded good results and brought transparency in the tender process of coal companies.
JSW Steel plans sales growth of 20% in 2006-07
JSW Steel Ltds Finance Director Mr Seshagiri Rao expects sales to grow at least by 20% in 2006-07 aided by an increase in production capacity. "We expect not less than 20% rise in top line this year" Mr Rao told reporters.
The company would add 1.3 million tonnes by the second quarter of 2006-07 and another 1.7 million tonnes a year later, taking total capacity to 6.8 million tonnes, he said.
SAIL to take equity in overseas coking coal mines
Steel Authority of India Ltd is reported to be close to acquiring equity in coking coal mines in Australia and Russia. It is reported in a daily that the coal companies from these two countries have offered equities in their mines and SAIL was weighing the matter before finalizing any deal.
It is reported that a coal mining company in Australia has offered equity to SAIL in a new mine under development. Specifications of coal are prima facie meeting the SAILs requirements. Discussions are in progress on structuring a joint venture with SAIL as an equity partner. According to sources, SAIL may seek equal partnership in the Australian coal blocks though it is also open to acquire the mine completely if an offer is made.
In case of Russia, SAIL has been offered equity in a hard coking mine Citing sources the report said that SAIL was studying the quality of coal from this mine after which a decision would be taken for equity participation.
SAIL has been on the hunt for coal properties abroad for some time now. SAIL has also invited EOI from mining companies worldwide for coal supplies. Sources said nine mining companies have so far responded to the EOI. It is understood that the PSU is pursuing two out of this nine proposals coming from Australia and Canada.
TATA Metaliks profits down by 32% in 2005-06
TATA Metaliks has recorded a 32% decline in 2005-06 profit before tax to Rs 68.79 crore from Rs 101.72 crore last year. Net profit stood at Rs 45.91 crore as compared to Rs 64 crore during the same period last year. The company however recorded a 62% increase in turnover to Rs 504 crore. It registered a record production of 327,801 tonne of hot metal as against 167,802 tonne of hot metal in the previous year.
Dispatch of pig iron for the last fiscal was 310,061 tonne, an increase of 90% from last year's 163,483 tonne. Tata Metaliks also recorded 14,000 tonne production of hot metal from its newly acquired blast furnace at Redi in Maharashtra.
The decrease in profits is contributed to a Rs 3,000 per tonne fall in pig iron prices through the year.
JSW Steel considering overseas issue
JSW Steel Ltd. said on Wednesday that in view of the significant interest shown by foreign investors to invest in the steel sector due to recent spurt in prices and promising industry outlook, the Board of Directors has decided to consider a comprehensive plan to raise additional resources by way of GDR/ADR or FCCB issue, besides the Rs4bn Rights Issue.
At the Board meeting held on January 20, the company had proposed to issue securities on a Rights basis (excluding proceeds on warrants, 2 warrants for each share subscribed on Rights basis). At the AGM held on June 13, 2005, the company's shareholders had approved raising of up to $500mn through ADR/GDR/FCCB issue.
Dedicated rail freight corridor planned
Indian Planning Commission is reportedly thinking of laying a dedicated East West rail freight corridor in the 11th Plan. It also talked of setting up dedicated freight corridors along the Golden Quadrilateral, through which all the regions would be connected, including minor ports in the western region. The dedicated rail freight corridors, mooted with the aim of creating a separate route for freight trains between the four metros, would run parallel to the Golden Quadrilateral stretches of the National Highway Development program. These dedicated freight routes would decongest the current routes, which carry passengers as well as freight trains.
Railway Ministry will have to set up a special purpose vehicle to finance them. The proposed SPV would have the same powers as that of the Delhi Metro Rail Corporation. To form the SPV, the Railway Ministry would have to create a cell in the Railway Board. This cell would also have to come up by the next month end. And by June, a Chairman and Managing Director for the SPV would have to be appointed.
With a view to avoiding a funds crunch for the proposed dedicated freight corridor, the Railways is reportedly working out a plan to outsource construction of tracks. As per the plan, the Railways will identify stretches of up to 100 kilometers and invite companies to bid for laying of tracks on a build, operate and transfer basis. The parties which lay tracks in these stretches will be paid annuities and user charges by the Railways, with concession periods ranging between 25 years and 30 years.
The East-West freight corridors may be divided into stretches of roughly 100 km each. The project cost of a 100 km line is expected to be about Rs 1,000 crore. All the stretches will have a stipulated completion period of five years and the companies may be rewarded if they complete their stretches before the deadline.
Dredging Corporation combines with Dredging International
Dredging Corporation of India Ltd has entered into an MoU with Dredging International NV of Belgium for joint participation as a consortium in bidding for dredging and for execution of the Sethusamudram Ship Channel Project at the sections Adam's Bridge and Southern part of Palk Starit & Palk Bay.
A Memorandum of understanding to this effect was signed between the Company and DI on April 13, 2006.
Government appoints Mr G Elias as Director on SAIL board
Steel Authority of India Ltd has informed BSE that the Government of India has appointed Mr G Elias Joint Secretary Ministry of Steel as Director on the Board of Directors of the Company wef April 18, 2006.
TopCoal berth added to expansion plans of Paradip Port
It is reported that the Paradip Port Trust has added a coal berth to its plans for development of a deep draught iron ore berth. The berth, to be developed on BOT basis, will be able to dock 125,000 DWT vessels. It will be located close to the port entrance. The estimated cost of constructing the iron ore berth was Rs 328.30 crore but since the project will now include a coal handling berth, the cost of the entire project is expected to rise. Rites Ltd will conduct the feasibility study for the coal berth. Mr SC Mohapatra of Paradip Port Trust said "We have asked Rites to expedite the survey and complete it by the end of May this year, so that we can float the tenders by mid June."
The port trust is planning to develop the western dock system, which has a provision for developing eight berths. One of these will be a clean cargo berth to be developed on BOT basis. This project is slated to cost Rs 138 crore. Several steel majors have approached PPT for developing captive ports. The port trust has decided to give Jindal Steel and Power two berths while Visa Industries and Lhoist will get one berth each. PPT will also develop a turning basin of 600 meter diameter and 16 meter depth.
Mittal Steels Arcelor offer to begin in 2 weeks
Mittal Steel will launch its offer for rival Arcelor in two weeks' time, CEO Mr LN Mittal said on Wednesday. The value of the cash and stock offer is estimated at about 21 billion euros ($25.9 billion) and will be need the approval of the European Union antitrust office.
"The offer is being studied by the regulators. We expect in two weeks" Mr Mittal told journalists. He added that the offer period would last 35 working days.
Mr Mittal also said that the offer would stand as it was. "We are not changing our offer. It is already a very attractive offer with the cash and with the shares. Steel share prices have gone up which has already increased the value of the offer," he said.
Benxi orders two 6 high reversing cold rolling mills to SMS Demag
Benxi Iron & Steel in Liaoning province of China has awarded SMS Demag an order for the supply of two six high reversing cold rolling mill stands. These reversing cold rolling mill stands are rated specifically for rolling carbon steels with thin final gages. At a maximum rolling speed of 1,200 meters per minute, strip widths from 750mm to 1,300 mm can be rolled with exit thicknesses from 0.18mm to 1.6 mm. The annual production of each mill will be 250,000 tonnes. The first of the two cold rolling mills will start production as early as in October 2007.
Supplies will include two identical high-capacity CVCPLUS six-high (Continuous Variable Crown) mills with horizontal stabilization of the work rolls (HS system) and driven intermediate rolls. SMS Demag will supply all electrical equipment and automation systems for both mills. Innovative set-up models for a maximum yield plus a comprehensive package of technological controls to satisfy stringent quality requirements form essential parts of the automation system. The mills will come equipped with SMS Demag flatness measuring rollers.
The integrated solution of mechanical equipment, fluid systems, electrical equipment and automation systems all supplied from a single source was the factor that convinced Benxi to award the contract to SMS Demag.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology.
MEPS expects further steel price rise in EU for Q3 deliveries
MEPS say that although traditionally the third quarter of the year is often regarded as an inauspicious time to attempt an increase in steel prices in Europe as even if demand in the first half has been solid, things can change abruptly when buyers go off for their summer holidays, this year European steel mills appear to be confident of securing further upward adjustments in the next quarter and in some cases even earlier. MEPS is aware that mills are telling their customers to expect formal announcements soon.
Global market conditions certainly appear to be in the mills favor. Prices are rising around the world hot rolled coil imported into Asia is reported to be selling at more than S500 per tonne. Prices of coil exports from Russia and Ukraine have been increasing steadily. US prices remain strong. European domestic conditions are also firmer. Real consumption of flat products has taken an upward turn. The important German and Italian markets appear to be consuming somewhat larger tonnages than had been anticipated at the start of this year. France is the only major EU market currently described as weak. MEPS average EU flat products price in April is up by 15 per tonne from March. Despite some reports of increased imports into southern Europe, these do not appear to be undermining price levels. Many regular exporters are either out of the market or are offering uncompetitive prices. Exporters of strip and plate products from the CIS are still trying to catch up with a backlog caused by the severe winter weather, and by breakdowns at some steelworks.
European mills do not usually announce prices too far in advance of their effective date unless they are supremely confident that they will get what they are asking. If there is doubt in their minds, they will delay until they have a clearer view of the markets underlying condition. They strive to avoid a situation where they announce a price increase only to see it fail. But this time, the mills have passed through the increases they announced for the second trimester so easily that they appear to have been imbued with self-belief for period three.
MEPS said that as early as the first week of April, some mills were claiming to be fully booked through the second quarter. What fully booked actually means in this context is open to debate, however. Some stockholders say they are being quoted delivery no earlier than September for certain products, and other buyers say they are unable to obtain all the tonnage they want. While playing down talk of a shortage, mills are anxious not to allow over-buying to result in a build-up of stocks. That would risk a repeat of the 2004 bubble, which was followed by a plunge in prices the following year.
The extent of the likely third quarter attempted price increases is not yet clear. At the bottom end of the range are suggestions of 10/30 per tonne for uncoated coil. At least 60/80 per tonne is being mentioned for hot-dip galvanized coils, where mills having rejected the idea of a special surcharge are seeking to pass on their record high zinc costs.
Iron Boomerang project
Chinese steelmakers are assessing a $45 billion proposal to build a rail line across Australia to haul iron ore and coal to distant ports for export "Iron Boomerang" project's founder Mr Shane Condon said and that he is inviting steel mills across Asia including China's Baosteel Group, to fund a study that could lead to laying of a 3000 kilometer of railroad linking Australia's western iron mines and coal mines along the eastern seaboard. The project also calls for construction of six blast furnaces at each end, turning iron ore into higher value pig iron or steel pellet before being exported to the mills.
Mr Condon said the project would save billions of dollars in transport costs by cutting the need to run empty trains out of remote mine locations. In addition, it would slash carbon dioxide emissions by incorporating the latest technologies for blast furnaces, to be fuelled from nearby natural gas lines, he predicted.
The project first needs between 12 and 15 steel mills to chip in $4 million each to fund an economic study of the plan Mr Condon said. Talks are already under way with Rio Tinto Ltd, BHP Billiton Ltd and Xstrata.
Locals kidnap 3 Bolivian ministers over steel mill
Town people kidnapped three Bolivian government ministers in Puerto Suarez to make the government grant an environmental license to a Brazilian company's mining project in the border area. and demanded the legalization of a foreign owned steel plant in their village. Planning Minister Mr Carlos Villegas, Economic Development Minister Mr Celinda Sosa and Mining Minister Mr Walter Villarroel were being held hostage in the southeastern town of Puerto Suarez.
Town residents also demanded that Bolivia's government guarantee that bidding on a nearby giant iron-ore mining project, el Mutun, be carried out in May as planned. Just hours before the kidnapping, the government had said it might further postpone bidding on el Mutun to correct so-called irregularities in the competition, which had initially drawn interest from five international companies.
But authorities quickly called in military and police forces to free three government ministers Wednesday morning. Angry civic leaders had held the Cabinet members hostage overnight in Puerto Suarez.
Defense Minster Mr San Miguel told that the ministers had traveled to Puerto Suarez to explain that the Brazilian-owned steel plant being built there violated constitutional rules that prohibit foreign ownership within 30 miles of the border. "For the government this is nonnegotiable," San Miguel said, calling the Brazilian company known as EBX "shameless" for starting construction of the plant without the necessary permits.
The Brazilian steel company, EBX, plans to build a foundry close to the El Mutun iron deposits, which is well known for some of world's largest reserves of both iron and magnesium.
NLMK not interested in acquiring Arcelor
The daily Les Echos reported that Russia's OJSC Novolipetsk Steel said that it is not interested in acquiring Arcelor,
NLMK declined to comment on reports that its chairman, Mr Vladimir Lisin wants to buy a significant stake in the company.
Mr Ross predicts more auto part industry consolidation
Mr Wilbur Ross Jr predicted more consolidation in the auto parts supply industry as the automakers it serves target their vehicles at an increasingly global market. Mr Ross is working to create the world's largest auto parts supplier and believes he can build a profitable auto supplier from pieces of failed ones.
Mr Ross said he expects automakers will produce more vehicle models that can be sold in many countries, rather than create different models for each location. "Global platforms will necessitate suppliers who can provide consistent design and quality in all important locales" Mr Ross said.
Mr Ross is chairman and CEO of WL Ross & Co LLC, a private equity company, and heads International Automotive Components Group, a joint venture that also includes auto supplier Lear Corp and Franklin Mutual Advisers LLC.
Mr Mittal comments on Arcelors defense measures
Mr LN Mittal CEO of Mittal Steel described Arcelor's attempts to protect itself against a takeover as sinking the business to reporters. He said Arcelor's action to protect its recent purchase of Dofasco Inc by transferring all shares to an independent trust was a very defensive measure to frustrate our transaction. "This is not good corporate governance, we believe" said Mr Mittal. "If it is such strategic importance for Arcelor, we do not understand why they should put such kind of assets where the shareholders have no voice."
Mr Mittal also said Arcelor's plan to share a 5 billion euros ($6.13 billion) dividend out among shareholders would increase the debt level of the company. "This will also restrict the growth of the company in future or the company will not have any plans to grow in the future. This is kind of sinking the business."
SRI announces new office bearers
The Institute of Scrap Recycling Industries Inc elected Mr Frank Cozzi to a two year term as national chair. Mr Cozzi is president of Cozzi Enterprises.
The elections were held during ISRIs annual convention in Las Vegas. ISRI also announced three other elections of Mr George Adams President of Adams Steel as Chair Elect, Mr John Sacco President of Sierra Recycling & Demolition as Vice Chairman and Mr Jerry Simms Vice President of Atlas Metal and Iron Corp as Secretary & Treasurer for two year terms.
Mittal Steel Ostravas production in Q1 best in last 6 quarters
Czech based Mittal Steel Ostrava produced 795,000 tonnes of steel in the first quarter of 2006, the best in the last six quarters, company spokeswoman Ms Jana Dronska announced in a press release. "All production lines at Mittal Steel Ostrava are operating at full capacity now and the first quarter of 2006 was the most successful in the last year and half," said Ms Dronska.
The Q1 results continue the positive trend seen in 2004, when production reached record volumes, the spokeswoman said, and comes as demand from the construction industry is booming and after investments in new lines. "Thanks to a boom in the Czech construction segment we expect the next three quarters to be as successful as the first quarter of 2006, and we expect Mittal Steel Ostrava to exceed an expected annual plan of 3.1 mln tonnes of steel" said Ms Dronska.
Mittal Steel Holdings NV controls 70.67% of Mittal Steel Ostrava, the Czech National Property Fund has 13.88%, the state bailout agency CKA has almost 11%, and small shareholders hold under 5%.
Baosteel eyes rival in plan to build mill
Baosteel Group Corp may acquire smaller rival Jinan Iron & Steel Group and together they may build a 10 million tonne annual capacity mill in Shandong province, officials from Jinan Steel said. Baosteel talks are in initial stages," said Jinan Steel chairman Mr Li Changshun Monday at the Fourth International Steel Congress in Beijing. The new mill may be sited in the port city of Rizhao.
China has been trying to consolidate its steel industry after output doubled in four years, driving up prices of iron ore and coal to records and fueling inflation. Grouping mills into bigger businesses may help steelmakers spend more on making high-grade products and negotiate lower input costs.
Baosteel has entered into alliances with Magang (Group) Holding and Xinjiang Ba Yi Iron & Steel Group. Baosteel seeks to merge with the two companies when "conditions mature," Baosteel president Mr Xu Lejiang said.
Beta Steel awards caster conversion contract to SMS Demag
Beta Steel Corp US has awarded SMS Demag Pittsburgh a contract to convert its single strand casting machine from a slab thickness of 6.7 inches to 8.1 inches. The project, from engineering through manufacturing to delivery, is scheduled to be completed in just ten months ensuring a December 2006 start-up. The aggressive schedule is only possible due to a close working relationship between SMS Demag and its sister company SMS Millcraft, who will manufacture the majority of the equipment for the conversion.
The conversion, aimed at improved slab quality, reduced maintenance and an increased coil weight includes three new split roll segments in the upper end of the machine to replace the existing full face rollers. The lower portion of the machine, which was converted to split-roll segments by SMS Demag in 2004, will be re gapped to accommodate the thicker slabs. Additional equipment being supplied under the modernization contract includes a segment carrier frame, removal guide rails and chain, and mold modifications.
SMS Demag Inc. forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group.
Mittal Steel offers job assurance to Belgium
It is reported that Mr LN Mittal CEO of Mittal Steel met Belgian Prime Minister Mr Guy Verhofstadt in Brussels on Wednesday to discuss his 18.6 billion Euro bid to take over Arcelor.
"We have reassured the Prime Minister. We have told them that we will honor all the commitments made by Arcelor in terms of jobs, of investments," Mr Mittal said.
Xining Special Steel reports 29% increase in net profits
Xining Special Steel Co has reported production of 505,300 tons of steel and 441,200 tons of finished steel products in 2005, an increase of 7.26% and 19.24% YOY respectively. The company totally achieved CNY 2.54 billion turnover up by 22% from a year ago and net profits of CNY 145 million up by 29% YOY. The company's ore mining volume was 1.2 million tons in 2005.
XSSC undertook several projects in 2005 including completion of the first stage of the construction of a 600,000 ton opencast mining plant and 350,000 ton coke plant has. The No.2 furnace in a subsidiary started operation while company's steel smelting project and small sized rolling project began the trial production.
XSSC expects to produce 1.1 million tons of steel and 1 million tons of steel products in 2006.
Arcelor board shake up urged
It is reported that Arcelor's attempt to fend off a hostile takeover hurt its own shareholder, two corporate governance groups said they will recommend at next week's annual meeting that some Arcelor directors shouldn't be re elected.
Several Arcelor minority shareholders are reportedly upset at Arcelor's aggressive steps to fight off a hostile bid from Mittal Steel.
High metal prices on LME could cause market collapse
Market observers are worried that heavy speculation in the metals market has caused an unprecedented rise in prices of several base metals like copper, aluminum and zinc on the London Metal Exchange to unsustainable levels. This has caused the market to drift apart from its traditional users and the market could collapse.
Speculators are pushing producers out of their hedges which is the core business of the LME. Many investors are holding big position of the metal which forced the actual users to pay very high prices for the metal which were half or even a third of the price only a few months ago.
US mills increase shipments in February by 3.1% YOY
The American Iron and Steel Institute reported that for the month of February 2006, US steel mills shipped 8.937 million net tons, a 3.1 % increase from the 8.662 million net tons shipped in February 2005 and a 0.2% increase from the 8.918 million net tons shipped in January 2006.
A YOY comparison of YTD shipments to various market shows that service centers and distributors went down by 3.3%, automotive went up by 14.8%, construction and contractors products went up 20.3%, oil and gas went up by 8.3%, machinery, industrial equipment and tools went up by 11.2 percent%, appliances, utensils and cutlery, went down by 3.9%, containers, packaging and shipping materials went down by 1.4% and electrical equipment went up by 3%.
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 33 member companies, including integrated and electric furnace steelmakers and 118 associate and affiliate members who are suppliers to or customers of the steel industry. AISI's member companies represent more than 75% of both US and North American steel capacity.
Pakistans GDP growth expected lower than 7%
Pakistans GDP growth rate this financial year is likely to be less than the 7% target, according to the State Bank of Pakistan. The central bank estimates that real GDP growth will fall in the range of 6.3% to 6.8%. The slowdown relative to the target owes principally to the estimated weakness in the commodity producing sectors of the economy, the impact of which will be partially offset by an anticipated above target performance of the service-sector.
The second quarterly report on the state of Pakistans economy for financial year 2005-06 released by the State Bank said that the fast growing globalization and increasing regional competition means Pakistan can ill afford to derail its macroeconomic stability, which has been the lynchpin in restoring domestic and foreign investor confidence.
While inflationary pressures show a welcome decline, the downward trend is unsettled, and inflation remains relatively high. Inflation is projected to fall in the 7.7% to 8.3% range during FY 2006.
China to adopt new coal policies in Shanxi province
China has decided to explore new possibilities of sustainable development in coal rich Shanxi Province in north China. At a meeting of the State Council yesterday, it was concluded that the coal industry is facing serious challenges in administrative policies, resource management, industrial safety and pollution control, and that it is vital to pursue a more sustainable development.
The experimental policies will strengthen the state's administration of the industry and improve the coordination between different regulators to make them more efficient. The threshold to enter the industry will also be raised.
Severstal appoints new GD at Karelsky Okatysh
Mr Viktor Vasin has been appointed as the new general director at Karelsky Okatysh, a division of the Severstal Group that is one of Russia's largest iron ore producers. Mr Vasin, who previously headed Olenegorsky GOK another iron ore mining division of the Severstal Group, replaces Mr Valery Grinenko. Mr Grinenko has been appointed senior manager of the iron ore business unit at Serverstal Resources. Mr Grinenko held this post until he became head of Karelsky Okatysh last June.
"In the past ten months the company has achieved good results, much has been done, investment programs have been implemented, productivity has increased. It is important that in future the company not only maintain a good pace of development, but also manages to attain a new level. This is why in selecting a new general director we settled on Mr Viktor Vasin, who has huge experience managing such enterprises, as well as tackling complex organizational and technical projects, such as the construction of the deep mine at Olenegorsky," Severstal Resources GD Mr roman Deniskin said.
Karelsky Okatysh plans to produce about 9.2 million tonnes of iron ore pellets in 2006, which will be one of its highest production figures ever.
POSCO announces TJ Park foundation to honor its founder
POSCO is to push for greater social contributions via a scholarship foundation established last September 2005. Named after the steel producers founder and honorary chairman, Mr Park Tae-joon POSCO TJ Park (Chongam) Foundation will award individuals or organizations for their contributions to society in the areas of education, science, and social devotion. The prize for each sector is 100 million won.
The foundation plans to announce the first prize winners in March 2007 after screening contestants during the May-September period, a POSCO spokesman said. Among the members for the screening process are professors from major universities.
The spokesman said the POSCO TJ Foundation is an embodiment of the will to continue rendering greater and broader social contribution in a more systematic manner. It is based on the decision made by the steel makers board of directors in October 2004. Since Mr Park set up the Steel Scholarship Foundation with 60 million won seed money in 1971, POSCO has continued to expand the scope of its social contributions alongside its business growth.
Hyundai's Mr Chung donates $1.1 billion amid probe
Hyundai Motor Co, subject of a bribery probe in South Korea, apologized for management lapses and said the family of chairman Mr Chung Mong Koo will donate 1 trillion won ($1.1 billion) in stock to charity. Mr Chung and his son Mr Chung Eui Sun will give away their entire 60% stake in logistics affiliate Glovis Co, Hyundai Motor Vice Chairman Mr Lee Jeon Kap said. We apologize for causing public concern and for not taking our full social responsibility as a company that should have been a role model'' Mr Lee said at a Seoul press conference.
Donations have been used to express contrition by South Korean companies, including an 800 billion won gift by Samsung Group Chairman Mr Lee Kun Hee in February after investigations into election payments.
Prosecutors are investigating claims that Hyundai Motor paid bribes to win licenses for affiliates to build two blast furnaces and an office block. The blast furnace approvals under investigation involve affiliate INI Steel Co, South Korea's second largest steelmaker, which was renamed Hyundai Steel Co in March. The probes, which led to the arrest of three people and travel bans on 10 executives, delayed plans to open factories in the US and the Czech Republic.
Mr Lee is South Korea's wealthiest man, according to a March 9 ranking of billionaires by Forbes magazine, with a family wealth valued at $6.6 billion. The Chung family is South Korea's third richest family, with their wealth estimated at $3.3 billion, according to Forbes.
AK Steel completes BOF emission project ahead of schedule
AK Steel announced today that it had completed installation of upgraded and additional air emission control systems on its Middletown basic oxygen furnace steelmaking shop more than a month ahead of schedule. The BOF project is the second phase of a capital expenditure by AK Steel to meet Maximum Achievable Control Technology standards of the federal Clean Air Act for iron making and steelmaking operations. AK Steel said that the BOF emission controls will capture about 600 more tons of non hazardous dust per year than the previous controls.
Completion of the BOF air emission project comes less than a year following installation of additional emission controls on the Middletown blast furnace, a project which AK Steel also completed ahead of schedule. The new blast furnace controls capture about 300 tons of non-hazardous dust per year, or more than 90% of the fugitive air emissions from the blast furnace cast house.
Together, the projects represent a $65 million capital investment in the steelmaking "hot end" of AK Steel's Middletown Works.
PPA to modernize three ports
The Philippine Ports Authority will modernize ports in Visayas and Mindanao to improve cargo handling productivity and address the growing demand for modern transport system. The PPA said it will improve ports in Danao, Escalante in Negros Occidental, Sindangan in Zamboanga del Norte and in Limasawa Island in Southern Leyte. The improvement of the ports will cost PPA P61.13 million for Danao Ports, P83.86 million for Sindangan, and P13.38 million for Limasawa Ports.
Under the Medium-Term Philippine Development Plan 2004 to 2010, PPA has to complete the upgrading of at least 10 ports to international standard, improve the delivery of port services and reduce the cost of transacting business at the ports.
Sovkomflot posts $143 million net profit for 2005
Russia's leading shipping agent, Sovkomflot announced that its 2005 net profits calculated to international accounting standards were down to $143.3 million from $204.9 million in 2004.
Sovkomflot's net asset value in 2005 increased to $1.06 bln against $922.9 mln in 2004, while the book value of assets increased to $1.91 bln as compared to $1.82 bln in 2004.
Sovkomflot is 100% state-owned and owns a fleet of 50 vessels with a total DMT of3.95 million. Sovkomflot's customers are leading Russian and international energy companies, such as Gazprom, Shell, Exxon, ConocoPhillips and LUKoil.
Evrazruda installing magnetic separators at Irbinsky Mine
It is reported that Evrazruda's engineers are currently working to improve the production technology at the ore crushing and concentrating factory. For this purpose, two magnetic separators are being installed in the CCF transshipping unit and the concentrating equipment will be put under loading tests this week.
Then the enterprise specialists jointly with researchers of the central technological laboratory will determine the most optimal mode of operation. The assembling of the second separator is to be completed by the end of May 2006.
Acquisition talks boost GVM Metals
Australia-based minerals processing group GVM Metals soared after the group confirmed it is in negotiations with regard to a substantial acquisition of an additional coal property in South Africa.
GVM, which listed on Aim in December last year, said any such acquisition would be subject to due diligence. The company said it would hope to make a further announcement in due course.
AT&T to upgrade O'Neal Steels network to IP VPN
AT&T Inc announced that it will help O'Neal Steel, US's largest family owned metals service center, implement a networking solution that will support the rollout of advanced applications. Under the $2 million three year contract, AT&T will upgrade O'Neal's network to an Internet Protocol Virtual Private Network. Since IP is a standardized communications protocol, O'Neal will be able to consolidate multiple legacy networking technologies onto a single, secure, reliable and easily scaled network infrastructure that can carry voice, video and other types of data traffic.
These AT&T services will expand O'Neal Steel's telecommunications framework and enable growth in capabilities as the company continues to increase its use of virtual and digital technology for managing information systems. The contracted solution will bring services to 33 O'Neal Steel locations nationwide and augment the Managed Internet Services currently provided by AT&T at those locations.
In a competitive metals market, we need to use technology to keep improving productivity," said Mr Kenny McCrary, technology manager at O'Neal Steel. "AT&T is helping us develop a solid framework for expanding our capabilities and for utilizing the newest applications to perform effectively and efficiently."
After more than 80 years in business, O'Neal Steel is now the United States' largest family owned metals service center. That's an important distinction because it means the family who started the company, and has guided its growth, continues to be instrumental in its operation today.
Canada's Sherritt begins Cubas nickel expansion
Canadian resource company Sherritt International Corp and Cuba have begun a 16,000 tonne expansion of their joint nickel and cobalt production facility, official Cuban media announced. Plans call for increased output to come on line in 2008 without affecting current production, Sherritt recently reported.
The $450 million expansion project includes retooling a joint venture refinery in Canada to handle the increased output and mining rights that would supply the Moa plant for 25 years.
The plant, in Moa, eastern Holguin province, is a joint venture with state owned Cubaniquel and currently produces 33,000 tonnes per year. Cubaniquel operates two of three processing facilities in Holguin province, 800 km east of Havana and is a 50% partner in the third with Sherritt International.
Cuba is one of the world's largest nickel producers and supplies 10% of the world's cobalt, according to the Basic Industry Ministry. Cuba's National Minerals Resource Center reported that eastern Holguin province where the industry is based counted 34% of the world's known reserves, or some 800 million tonnes of proven nickel plus cobalt reserves, and another 2.2 billion tonnes of probable reserves, with lesser reserves in other parts of the country. Cuban nickel is considered to be Class II with an average 90 percent nickel content.
Joy Global announces acquisition of Stamler from Oldenburg
Joy Global Inc reported that it has entered into an agreement to acquire the net assets of the Stamler business from Oldenburg Group Inc. The purchase price will be $118 million and other details of the transaction are not being disclosed at this time. The acquisition is subject to customary regulatory approvals.
Stamler products are used primarily in underground and surface coal mining applications, including feeder breakers, battery haulers and continuous haulage systems. The Stamler business is anticipated to have revenues of approximately $150 million in calendar 2006.
Mr John Hanson, chairman, president and CEO of Joy Global Inc said "We are pleased to have the opportunity to add the Stamler employees and their strong product offering to our business," commented This acquisition is consistent with our stated philosophy of adding bolt on products and services to our existing businesses. The Stamler products, and in particular their line of feeder breakers, have strong market positions and long-standing reputations with the same mining customers that are served by Joy Mining Machinery and P&H Mining Equipment."
Joy Global Inc. is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining through P&H Mining Equipment and underground mining through Joy Mining Machinery.
