April, 25 2006
Attack on anti POSCO protestor sparks tension in Orissa
In a very unfortunate incident Mr Ranjan Swain protesting against POSCOs proposed plant in Orissa was attacked by supporters of the project and was beaten badly up on his way to a rally against POSCO near Naugaon village in the coastal district of Jagatsinghpur as per a statement from a police official.
This incident has sparked tension in the area and as the news of the attack spread, hundreds of anti POSCO activists from Naugaon and its periphery gathered at the village demanding the arrest of the attackers. Top district police officials rushed to the spot to bring the situation under control.
The ruling political party seems to be on the path of intimidating protesting villagers by use of force through their network and their action is highly deplorable.
Mr Munda confident of ore supply to 43 MoUs only for 30 years
Business Standard has reported that Jharkhand CM Mr Arjun Munda is confident that all the 43 MoU signed with the private sector investors for the setting up of steel projects worth Rs 1,53,000 crore would not lead to any shortage of raw materials, particularly iron ore, at least in the first 30 years of operation of these industrial units. Mr Munda said he wished to refute the comments made by the Union steel minister Mr Ram Vilas Paswan questioning the wisdom of signing of 43 MoUs.
Mr Munda said "The state is not going to lease out iron ore mines to the investors for 500 years. We will give lease only for 30 years for which we have the reserves. Besides, the state has virgin zones which have iron ore mines, which can be exploited in future".
The chief minister reiterated that the Jharkhand government had in principle decided not to grant any mining lease for iron ore to any investor who did not set up a manufacturing unit in the state. "I have reports that iron ore is being exported through Haldia Port and therefore we have taken the decision not to allow any investor to export iron ore mined in our state," he said.
NCDEX to launch Zinc, Aluminium & Nickel contracts
The National Commodity and Derivatives Exchange announced that it would launch trading in aluminium, zinc and nickel by the first week of May. The new contracts would strengthen NCDEX position in the non-ferrous metal trading segment. It already trades copper futures.
Mr S Sundar VP of product development told reporters on the sidelines of a conference on metals trading said that delivery centers for each contract would be Bhiwandi and Delhi. Contract size, called delivery unit, for aluminium and zinc is two tonne and for nickel 250 kilograms, he said. Contracts would be settled on the basis of spot prices in the international markets.
Mittal Steel to survey Santhal Pargana and Muri for plant site
The Telegraph has reported that Mittal Steel is interested in exploring Santhal Pargana and Muri for its proposed steel plant in Jharkhand before taking the final decision and starts a detailed survey of the area citing MR SK Venkatesh GM of project management. He is quoted as saying that We have been apprised by the state government that the area in Santhal Pargana has got immense source of water from the Ganga, proximity to coal reserves and Haldia port of neighboring Bengal. A team is likely to visit these areas and make a primary survey of these areas.
Mittal Steel, which requires about 12,000 acres of land for its steel plant has already made an initial survey of at least three probable sites in Jharkhand which include Karra Govindpur, Seraikela and Ghatshila areas. Seraikela is reported to be fit for setting up of the steel plant due to its proximity to two rivers Sanjay and Kharkai, Besides and iron ore reserves of West Singhbhum.
Jharkhand CM Mr Arjun Munda had also expressed his desire to also explore the areas of Santhal Pargana region as a move of to nullify the concentration of steel companies in Singhbhum-Kolhan region only, which has TATA Steels new proposed project at Seraikela and Jindal Steel and Power Limiteds proposed project site at Asanboni area of East Singhbhum district.
RINL organizes Partnership Summit-2006
Mr Y Siva Sagar Rao RINL CMD, while addressing the Partnership Summit-2006 said that Visakhapatnam Steel Plant was all set to meet the demands of its growing customers and there is a need to forge strong relationship between customers and VSP for mutual benefit and progress. He said that restructuring strategies had been evolved keeping the customers in mind.
Mr Rao observed that the prices would remain stable in the current fiscal. He said The steel market had started consolidating after a moderate slump half-way through 2005. The demand had been supported by economic growth of the country.
Kalyani Steels may hike prices by April end
It is reported that there is a possibility of the Kalyani Steel raising steel prices by end of April by Rs 1500 per tonne. The company had raised the price last in April 2005.
Kalyani Steel is primarily engaged in alloy special steel manufacturing and is one of the main players in special steel manufacturing.
BME calls for reduction in duties for non ferrous
Bombay Metal Exchange has urged to the Indian government to cut the excise duty and CVD rates in half and is also asking to lower the customs duty to zero. The organization cited the sharp jump in metals prices on the world market as the reason for the need to cut the duty. The non ferrous metals industry needs immediate relief to remain in at par level with international supplier. Non ferrous metals are basic raw material and play a vital role as industrial inputs in many industries.
Mr Rohit Shah, president of BME said "As per the new Import Policy 2006-07, the Government has imposed lot of restrictions on the import of non-ferrous metals scrap. Import of non-ferrous metals scrap will be allowed only from those overseas suppliers who are registered with Director General of Foreign Trade."
He added that about 40% of the raw material needed by manufacturers in the county comes from the scrap industry, with most of it being imported from other countries. Mr Shah estimates that between 600,000-700,000 tons of scrap metal is imported each year by Indian companies. "Such imports will also be only allowed through registered suppliers against letter of credit and no high seas sale would be permitted. The terms and conditions of imports will definitely hamper the smooth functioning of trade and stoppage of high seas sale will create big problems for small units" Mr Shah said.
The Bombay Metal Exchange Ltd represents Indian non ferrous companies from non ferrous sector.
L&T bags a major contract from Reliance Industries
Larsen & Toubro has announced that the Company has won contracts valued at over Rs 8000 million from Reliance Industries Ltd for major construction services as well as supply of high end electrical systems for its SEZ refinery and petrochemical project in Jamnagar Gujarat.
The Company's Construction Division, ECC, will undertake critical civil, mechanical and electrical works for the 29 million tonnes per year refinery and petrochemical complex. The Company's Electrical & Electronics Division will supply over 325 high end switchboards equipped with intelligent relays. The equipment conforms to the high quality standards and stringent specifications of Bechtel.
Dhamra Port to adopt turtle friendly technology for lighting
Aiming to get out of the controversy that its proposed port would affect endangered Olive Ridley turtles Dhamra Port Co Ltd has said it was going to use dark sky friendly lighting to prevent hatchlings from getting disoriented. DPCL CEO Mr Santosh K Mohapatra said "There is a proposal in favor of dark sky friendly lighting and we in Dhamra Port are going to use it,"
DPCL, a JV of L&T and TATA Steel, planned to build a 13 million tonne capacity all weather port at an estimated investment of Rs 2,000 crore near Dhamra river mouth in Orissa's Bhadrak district. Ever since the port plan was announced, conservationists have been voicing concern over the fate of endangered Olive Ridley turtles, which visits Orissa coast for mass nesting.
MCX seeks approval for futures trading in coal
Multi Commodity Exchange has sought permission from the Forward Markets Commission, the commodity markets regulator, for launching futures trading in coal.
However, the official declined to comment on the details of the contract.
KEI to raise $60 million via GDR & FCCB
KEI Industries Ltd, manufacturers of stainless steel wires and cables, announced that it will raise $60 million through issue of Global Depository Receipts or Foreign Currency Convertible Bonds or other convertible securities in the domestic or international markets.
The company would also increase the limit of Foreign Institutional Investors up to 49% of the paid up equity share capital of the company, it said.
China may remove steel export tax rebates
Mr Wu Wenzhang GM of a steel portal Steelhome.cn told a forum in Shanghai that China will probably scrap tax rebates on all steel products in the second half of 2006 to discourage exports and steel prices will find it hard to recover. The government frowns on huge exports of steel products, which consume a large amount of energy and emit pollutants during production he said.
Mr Wu said tax rebates would eventually be removed on all steel products and tariff duties may even be levied on some primary and semi finished products for export.
Mr Peter F Marcus managing partner of World Steel Dynamics also predicted that the move to scrap tax rebates will probably take effect within the year. "Tax credits could be zero by the fourth quarter" he said.
The Chinese government has adjusted tax policies on steel product exports several times starting last year. The tax rebate was cut from 13% to 11% for several steel products last year and the discounts for ferroalloy and steel billet were removed last year.
According to latest customs data, China exported 6.47 million tons of steel in the first quarter an increase of 24.7% from a year ago.
Arcelor may face fireworks from shareholder
The Guardian has reported that Arcelor may face a shareholder revolt over its defense tactics at its annual general meeting on Friday.
The paper said some investors are angered by Arcelor's decision to put Canadian subsidiary Dofasco into a trust without consulting them. The move is designed to thwart Mittal Steel, which has said it would sell Dofasco as part of its takeover strategy.
It is also reported that some rebel shareholders are planning to vote against the re election of Arcelor chairman Mr Joseph Kinsch and its vice chairman Mr Jose Ramon Alvarez.
CVRD CEO says that Chinese iron ore demand strong in March
CVRD CEO Mr Roger Angelli said that China continued to be the engine driving global iron ore demand in March. "China's demand for iron ore in March was a record he said. According to Mr Agnelli, Chinese iron ore demand grew by 28% in March compared with the same month a year ago.
With demand continuing to be strong, the natural evolution is for iron ore prices to keep rising Mr Agnelli added. "Demand continues to be strong, and the tendency is for prices to rise. This is natural, there's nothing much to discuss" Mr Agnelli said.
Gazprom to press for higher gas prices from Ukraine
A top manager of the Russian natural gas monopoly Gazprom has said that the price of natural gas delivered to Ukraine under agreements reached in January 2006 must be raised from $95 to $230 per thousand cubic meters.
Mr Aleksander Medvedev, deputy board chairman of Gazprom said in an interview with the Ukrainian weekly Galitskiye Kontrakty that his company, which owns a 50% stake in the Russian-Ukrainian company Rosukrenergo, does not consider the current price of gas for Ukraine a market price.
Mr Medvedev said that Gazprom would raise the question of re-setting the gas price on July 1. As for the market price, we named it a long time ago it is $230 per thousand cubic meters the executive said.
In 2005 Russias Gazprom said it would raise gas prices for Ukraine to market levels and even briefly cut off supplies, as the Ukrainian side refused to agree to the new terms of the contract. In January 2006, the Russian-Ukrainian company Rosukrenergo and Ukrainian Naftogaz signed an agreement setting the price for gas at $95 per thousand cubic meters for the first half of 2006. However, Ukrainian officials have recently said that the lower rate would be maintained for five more years.
Bolivia disqualifies EBX for El Mutun iron ore project
A bid by Brazilian mining company EBX Group to develop a $1.1 billion iron ore project in Bolivia will be disqualified after another company project violated laws. Bolivian Planning Minister Mr Carlos Villegas said Given these circumstances, EBX won't be able to continue to be a participant in this project.''
The decision removes EBX from the competition to develop a field, known as El Mutun that may have as much as 40 billion tons of iron. Four companies remain in the bidding including Mittal Steel, Jindal Steel & Power Ltd., China's Shandong Luneng Hengyuan Trading Group Co Ltd. and a joint venture between Argentina's Siderar SAIC and Techint Argentina SA.
FMGs Cloud Break iron ore project gets environmental approval
Environment Minister Mr Mark McGowan has given final environmental approval for Fortescue Metals Group's Ltds $2 billion Cloud Break iron ore mine in Western Australia's Pilbara region, subject to a comprehensive package of environmental conditions. Mr McGowan said the Cloud Break proposal was designed to integrate with the previously approved Stages A and B of FMG's operations in the Pilbara region.
The Minister also acknowledged an overall package of biodiversity offsets to be put in place by FMG. "FMG has agreed to provide funding to CALM for the acquisition of about 200,000 to 300,000ha of land surrounding Fortescue marsh for conservation, which is significantly greater than the 18,075ha that will be impacted by mining," he said. Other offsets proposed by FMG for its Stage B and Cloud Break proposals include, research projects into Mulga, the Night Parrot, Bilby and other threatened fauna, and development of a broad-scale feral animal control program. In addition FMG will also work with CALM to develop a Fortescue Marsh management plan, and will fund a position within CALM. "Coupled with the strict requirements to be applied to mining, these additional offsets represent a very positive contribution to conservation outcomes in the region" Mr McGowan said.
For the past two years, Fortescue Metals Group has been planning its Cloud Break venture, north of Newman. The project includes a port and rail network. The company says its deposit holds more than one billion tonnes of iron ore.
Siemens to supply electrical & automation to Baotou & Mega Steel
Siemens Industrial Solutions and Services Group has reported details of two contracts to supply the electrical and automation systems for the expansion of casting and rolling operations at China's Baotou Iron and Steel Co and Malaysia's Megasteel Sdn Bhd. Each is scheduled to be commissioned in 2007.
Baotou Iron & Steel Co has been operating its 2 million tonne hot strip mill since 2001 and is producing up to 2.8 million tons per year. To improve the HRC quality and thickness requirements of its new CRM complex it's six stand HSM line is being extended to include a seventh stand. This seventh stand will improve production flexibility and allow Baotou to produce thinner gauges. A roll gap lubrication system, automatic leveling control, and looper flatness control will be retrofitted to the line.
Megasteel Sdn Bhd, which also operates a 6 stand HSM in Kuala Langat, is also adding a seventh rolling stand and installing an additional coiler. Siemens is supplying drives and automation systems for this expansion, and is managing the link to the existing automation system for the finishing line.
At both plants, the main drives used are synchronous motors with cylindrical rotors, fed by Simovert D cycloconverters. Siemens is also responsible for supervising installation of the equipment, commissioning, and customer training.
Grupo Mexico's Taxco Zinc workers join strike
Workers at Grupo Mexico, the world's seventh largest zinc producer, walked off the job at the company's Taxco zinc lead mine, joining a strike underway at two other company mines, the Mining Federation said. The strikes may force suspension of May copper and zinc deliveries, Grupo Mexico said earlier this month. Grupo Mexico produces around 640,000 tons of copper and 100,000 tons of zinc a year.
Workers at Taxco, in the southern state of Guerrero, went on strike for higher wages and better safety conditions in response to a February 19 explosion that killed 65 miners at the company's Pasta de Conchos coal mine, union spokesman Jaime Martinez said in a phone interview from Mexico City.
Workers walked out at Grupo Mexico's La Caridad copper mine on March 24 and at its San Martin zinc mine on April 5.
No talks are planned, because the company refuses to recognize Mr Napoleon Gomez as leader of the 250,000 member union.
Cazaly to fight government decision
Cazaly Resources claims it has financial support from the West Australian mining industry for a legal challenge to Friday's decision by the West Australian Government to strip it of the lucrative Shovelanna iron ore deposit. Cazaly MR Nathan McMahon stepped up his attack on the Government saying that Mr Bowler did not have the guts to explain the decision to the public. "This is a Government which prides itself on transparency and as we have seen there is no transparency when big business is involved" Mr McMahon said. "The board feels deeply that this is worth fighting for he said. "We are adequately funded and have had a huge response, including financially, from the WA mining industry in response to this decision" he added.
Cazaly has called upon the services of top West Australian Queens Counsel Mr Malcom McCusker to spearhead the challenge and has also lodged Freedom of Information applications for all legal advice from the State Solicitors Office to Mr Bowler and the state's Department of Industry and Resources. It has also written to Mr Bowler asking for a full written explanation of the reasons for his decision.
The Government has since refused to comment on its decision, leaving market watchers and mining industry insiders speculating about the reason for handing the lease back to Pilbara heavyweight Rio Tinto. State Resources Minister John Bowler maintained his silence over the matter before the legal challenge was launched. Government advisers said it was Mr Bowler's decision not to expand on the "public interest" grounds given for his decision.
Rio had argued it lost the deposit, which it has not worked for nearly two decades, only because a courier failed to deliver the reapplication for the tenement lease in August last year.
Arcelor to pass on Zinc cost to customers as metal soars
Arcelor will pass on the costs of zinc to its customers for galvanized products as the price of the metal climbed to a record. The price of zinc has skyrocketed since mid 2005 and does not show any signs of reversing, at least on a middle term basis. Arcelor has decided to pass on this additional cost.'' Arcelor said.
Arcelor will introduce the surcharges on zinc coated steel products on July 1. The company will also pass on the cost of aluminium contained in some of its coated products, according to the statement.
The price of the Zinc has soared 70% so far this year on the London Metal Exchange and matched its record $3,360 a tonne.
PSMC Privatization - Share purchase agreement signed
Share Purchase Agreement for sale and purchase to 75% strategic stake in the Share capital of Pakistan Steel Mills Corporation was signed by Mr Farrukh Qayyum Secretary Ministry of Privatization & Investment signed on behalf of the Government of Pakistan with representatives of Consortium of MMK, Tuwairqi Steel and Arif Habib Securities yesterday.
It was the requirement of the bidding documents to sign SPA within four days after receiving the 25 % payment of the bid.
ThyssenKrupp modernizing hot metal base in Duisburg Hamborn
ThyssenKrupp Steel AG is currently modernizing its hot metal base in Duisburg-Hamborn by constructing a new blast furnace on the site where some 18 months earlier the remains of the blast furnace 8 closed down in 1991 were demolished. In addition BF 9, built in 1987, is to be relined and BF 4, built in 1963, will be shut down and kept only as a back-up unit. The project is likely to be implemented by 2008 at a total cost of 340 million euros.
Dsseldorf district authority granted approval for the construction of a new blast furnace 8, which will cost around 200 million euros, during last summers and since then work has been underway on clearing and preparing the site.
The orders for the core units for supply, installation and start up of the blast furnace, casthouse, inclined elevator and cooling system were placed with Paul Wurth at the end of February. ThyssenKrupp Steel is putting other items of blast furnace equipment out to separate tender, including the top gas scrubbers and the new state of the art central control station for blast furnaces 8 and 9.
The new complex will feature highly advanced pollution control equipment which will reduce noise levels in the surrounding neighborhood to a minimum and further reduce dust and fine dust emissions. The equipment is so effective that some emissions will be well below the statutory limits. Both blast furnace 8 and blast furnace 9 will be equipped with new dedusting systems for the hopper car discharging stations at a cost of over 20 million euros. In addition, the cooling system for blast furnace 8 will be fitted with a low noise, slow rotating ventilator. The cooling tower for slag granulation on blast furnace 9 will also be moved further to the center of the plant site, virtually eliminating the possibility of noise pollution for local residents.
Czech Coal denies sale of its brown coal mining firm MUS
Czech Coal, which controls Mostecka Uhelna Spolecnost has denied media speculation that a Swiss company linked to financier Mr Pavel Tykac bought a 49% stake in the firm for CZK 10 billion, but has not ruled out the possibility of a strategic investor in future. Czech Coal said "It is false information. MUS as well as other companies within Czech Coal are in hands of four private individuals Mr Antonin Kolacek, Mr Lubos Mekota, Mr Vasil Bobela and Mr Petr Pudil and there are no changes planned in the ownership structure for the time being."
However the shareholders have received a number of proposals from foreign investors on a capital entry into the group and that therefore raising Czech Coal's capital through the sale of a minority stake cannot be ruled out in future. "Since Czech Coal shareholders are strategic owners and they are planning to further develop their business in the energy segment in the Czech Republic in the future the sale of the majority stake is not realistic" said Czech Coal.
Guangdong Steel may join BaoSteels Zhanjiang project
Guangzhou Iron and Steel Group, the largest steelworks in southern China, may join Baosteel's 10 million tonnes project in Zhanjiang in Guangdong Province. Mr Wei Yijun of Guangdong Development and Reform Commission told Interfax "The Guangdong government hopes a local steel mill will be able to participate in this project and we think Guangdong Steel is the most suitable company for the project. Guangdong Steel is also showing interest."
Mr Wei said Baosteel Group is so far the only investor in the project but NDRC is assessing the project right now and will decide if Guangdong Steel can join.
Russia ups steel output 3.4% in Q1
Russian Federal State Statistics Service announced that Russia has raised crude steel output 3.4% YOY in January to March to 16.995 million tonnes. Converter steel output rose by 5% to 10.297 million tonnes and electric steel output grew by 10.6% to 3.47 million tonnes.
Steel production rose by 13.7% at Severstal, 7.5% at MMK, 4.5% at NLMK, 11.5% at Novokuznetsk Iron & Steel Works, 3.1% at Oskol Electrometallurgical Combine, 25.1% at West Siberian Iron & Steel Works (ZSMK) and 15.6% at the Chusovoi Steel Works.
It fell by 5.9% at Urals Steel, 16.3% at Chelyabinsk Iron & Steel Works and 13.2% at Nizhny Tagil Iron & Steel Works.
CMC declares stock split
The board of Commercial Metals Co. has approved a two for one stock split. Under the stock split, each Commercial Metals shareholder of record on May 8 will receive an additional share of Commercial Metals stock payable on May 22. The company has about 60.61 million shares outstanding.
A stock split normally is used when a company feels the price of its stock is getting too high. A stock split doesn't alter the value of a shareholder's earnings, but it increases the number of a company's stock shares that are outstanding and reduces the stated value of the stock proportionally.
IST group to commission ferrochrome plant in by 2006 end
Tikhvin Ferroalloys Plant, a division of the IST group, plans to complete construction of a high carbon ferrochrome plant in the Leningrad region in the third or fourth quarter of 2006, the regional government said in a press release. "The ferrochrome will be used to make stainless and special steels and will be sold to wholesale buyers from outside Russia." The release added.
Tikhvin Ferroalloys started to build the plant in 2001 to a design by the Giprostal institute in Kharkiv Ukraine The plant will be capable of producing 135,000 tonnes of ferroalloys per year. Project costs are around 2.7 billion rubles.
Carpenter Technology net income up by 72% in Q3
Carpenter Technology Corporation has reported record quarterly sales and net income led by strong demand for aerospace materials and by the Company's continued focus on cost through lean and variation reduction. Net sales for the third quarter ended March 31, 2006 were $426.0 million as compared with $342.1 million for the same quarter a year ago. Net income in the third quarter was $60.8 million as compared to net income of $35.3 million a year ago.
Net sales for the first nine months of the current fiscal year were $1.1 billion, compared with $951.8 million for the same period a year ago and net income was $143.8 million as compared with net income of $87.6 million for the same period a year ago.
Mr Robert J Torcolini chairman, president and CEO said "Record quarterly results were achieved primarily due to robust demand from the aerospace market for our specialty alloy and titanium materials, and our ongoing focus on operational excellence. Our growth in the aerospace and other key markets reflects our strategy to develop and produce materials that are valued for their performance characteristics.
Brazilian Gerdau sees 10% to 20% rise in iron ore prices
Brazilian long steel giant Gerdau SA expects iron ore prices to rise between 10% and 20% when contract negotiations are completed with iron ore miners. Gerdau VP Mr Rui Lopes said during a speech at a Latin America steel making conference hosted the Brazilian Steel Institute and Metal Bulletin that the increase in prices of steel products since the start of 2006 reflects expectations for an iron ore price adjustment within this range.
Brazilian steel makers pay the prevailing global price for iron ore, minus logistics costs to ship the ore overseas. While supply of iron ore is based on long term contracts, miners and steel makers negotiate prices for the contracts each year.
Global steel makers are resisting efforts by CVRD and, who control 70% of the seaborne iron ore market, to again raise prices. However, miners have pointed that continued global economic growth, led by urbanization in China, has maintained the current imbalances between iron-ore supply and demand. Furthermore, the companies said they need to raise prices to fund a surge in investments needed to meet the increased global demand for iron ore.
IUD eyeing Polish Stocznia Gdynia shipyard
It is reported in local media that Ukrainian Industrial Union of Donbas, is considering investing in the Stocznia Gdynia shipyard and may form a consortium with Israeli Rami Ungar, an Israeli ship owner who already has 20% of votes at Stocznia Gdynia GSM. IUD has a good reputation in Poland as they are the main investor in Huta Częstochowa.
IUD has met the representatives of the state to talk about the restructuring of Stocznia Gdynia, which is still managed by the state. We are going to submit our offer next week. We have said many times that we were interested in the shipyard industry. We want to analyze the program of capital increase of the company and what it would result in. After we check the situation, we will make the final decision Mr Konstanty Litwinow of IUD in Poland said.
Experts see numerous advantages of IUD as Stocznia Gdynia investor Donbas delivers flat steel to build ships. Its potential investment in the shipyard might result in long term cooperation Mr Dariusz Adamski, the head of Stocznia Gdynia Solidarnosc trade union and the member of the supervisory board of the shipyard said.
Stocznia Gdynia specializes in car and container carriers. The company has over PLN 0.5 billion of expired debts. It has USD 1.5 billion of orders till the year 2009. Stocznia Gdynia shipyard is looking for investors who could inject PLN 300 million (Euro 77.6 million) of capital.
AK Steel workers ready for long fight
While AK Steel continues to advertise for replacement steel workers for it Middletown Works plant, veteran steelworkers on the picket line say they doubt replacements would be able to keep up with the company's needs. "They're making money on their stockpile, stuff we made," says one of the workers locked out for nearly two months. "When they run out, that's when they're going to hurt."
AK Steel locked out nearly 2,700 hourly workers when their contract expired Feb. 28, and salaried personnel and replacement workers have kept the mill running. Although both sides say they want a new agreement, little progress has been made toward that goal. AK Steel predecessor, Armco Inc operated the plant for 39 months with replacement workers after it locked out the local union in 1999, when its contract expired.
AK Steel makes flat-rolled carbon steel and stainless and electrical steel used in cars and appliances. Its biggest mill and headquarters are in Middletown, with smaller plants in Ashland, Rockport, Butler, Mansfield and Zanesville.
MMK to pay $716 million in 2005 dividends
Magnitogorsk Metallurgical Combine announced that it would pay $716 million in 2005 dividends to its shareholders.
The shareholders also adopted the annual report and profit and losses account and the new version of the company charter and that Deloitte & Touche CIS will audit the company. The shareholders also elected members of the board of directors, which will now include Mr Kiril Levin, deputy chairman of the board of Gazprombank, the subsidiary of Russia's gas monopoly Gazprom.
MMK has 20% share of the domestic market and exports 50% of its output to 75 countries. In 2005, its production touched 11.4 million tons.
Caterpillar revenue up by 13% to $9.39 billion in Q1
Heavy equipment maker Caterpillar Inc posted a record first quarter profit. The company said that its revenue rose by 13% to $9.39 billion from $8.34 billion last year on higher prices and sales volume.
Mr David Burritt CFO said that oil mining and exploration also will likely surge as crude oil prices soar to record levels. Mr Burritt said buying surges are cyclical in the heavy equipment industry, where sales rise and fall based on the economy. Based on the past two cycles, which each lasted seven years, the company would only be midway through the latest upswing he said.
Caterpillar designs and manufactures mining, construction and agricultural machines, as well as engines for earth moving and construction equipment. It also is the worlds leading manufacturer of electrical generators.
Angang New Steel Q1 gross profit margin up
Angang New Steel Co posted an 82.1% rise in first quarter net profit of CNY1.10 billion ($137.3 million) up from CNY603.9 million in the same period last year, according to mainland China accounting standards. Its gross profit margin rose to 19.31% in the three months ended March from 14.52% a year earlier. It said it produced 3.63 million tons of iron, 3.63 million tons of steel and 3.32 million tons of steel products in the first quarter.
Angang attributed the improvement to the purchase of Angang New Steel and Iron Co from parent company Anshan Iron & Steel Group Complex China's second-largest steel maker by capacity. "The purchase has enabled the company to have a complete production process and has enhanced its overall profitability," Angang said in a statement. The completion of such acquisition has enabled the Company to operate an integrated steel production process from coking and sintering, iron manufacture and steel manufacture to hot and cold rolling operations and have necessary power supply systems, which has expanded its scale of operations and enhanced its profitability and business synergy.
Angang New Steel also announced expected increase in the profits for the Period from 1 January 2006 to 30 June 2006. The net profit is expected to substantially increase by 100% to 150% as compared with the same period in 2005.
Fording Canadian Q1 net up to $165 million
Fording Canadian Coal Trust announced its first quarter 2006 results. Net income was $165 million in the first quarter up from $65 million for the same quarter in 2005. Net income before unusual items and future income taxes was $197 million compared with $60 million in 2005. The average coal price in the first quarter of 2006 was $122 per tonne, which was double the price in the same quarter of 2005. Coal sales volumes decreased 9% from first quarter 2005 levels to 3.1 million tonnes, due to customers not taking deliveries of coal shipments as scheduled and to the termination of contracts with the majority of customers in China.
"We had a good first quarter because of high coking coal prices," said Mr Jim Popowich President of Fording Canadian Coal Trust. "While we did not meet all of our targets with respect to coal sales volumes and costs, our distribution of $1.40 per unit was over three times what we paid for the first quarter of 2005. Based on our current price settlements for the 2006 coal year, we will see reduced coking coal prices starting in the second quarter this year; however, prices remain at historically high levels and will provide a good foundation for distributions over the next three quarters."
Elk Valley Coal settled coal prices with substantially all of its customers for the coal year commencing April 1, 2006 at an average price of $07 per tonne. Average calendar year prices are expected to increase to be $12 per tonne.
Fording Canadian Coal Trust is an open-ended mutual fund trust. Through investments in metallurgical coal and industrial minerals mining and processing operations, the Trust makes quarterly cash distributions to unit holders. The Trust, through its wholly owned subsidiaries, holds a 60% interest in the Elk Valley Coal Partnership and is a leading producer of the industrial mineral wollastonite.
Elk Valley Coal is a general partnership between Fording LP and Teck Cominco. Teck Cominco is the managing partner of Elk Valley Coal. Elk Valley Coal is the second largest supplier of seaborne hard coking coal in the world. Hard coking coal is a type of metallurgical coal that is used primarily for making coke by integrated steel mills, which account for approximately 60% of worldwide steel production.
Alliance Resource reports Q1 results
Alliance Resource Partners LP reported record financial and operating results for the quarter ended March 31, 2006. Net income increased by approximately 23% to a record $48.2 million as compared to $39.1 million for the first quarter of 2005. It also reported record EBITDA of $65.9 million in the 2006 Quarter which reflects a 16% increase over the 2005 Quarter EBITDA of $56.9 million. Driven by record coal sales volumes, revenues for the 2006 Quarter increased by 22% to a record $238.3 million, compared to revenues of $195.6 million for the same period last year. Reflecting continued strength in the coal markets, revenues also benefited from higher average coal sales prices realized during the 2006 Quarter. Coal production for the 2006 Quarter increased by 9% to a record 6.2 million tons, as compared to 5.7 million tons for the 2005 Quarter.
"Alliance again delivered strong operating performance during the quarter, setting operating and shipping records for tons produced and sold" said Mr Joseph W Craft III President and CEO. "As a result of this exceptional performance and higher coal prices, we posted new financial results records for revenues, EBITDA and net income during the quarter" he added.
Alliance Resource Partners is US's publicly traded master limited partnership involved in the production and marketing of coal. Alliance Resource Partners currently operates eight mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania and West Virginia.
Teck Cominco earns Q1 profit of $448 million
Vancouver based miner Teck Cominco Ltd more than doubled its first quarter profit compared with a year ago, helped by higher metal and coal prices and a one time gain on the sale of investments. It earned $448 million for the three months ended March 31 as compared with a profit of $205 million a year ago. Quarterly revenue of $1.27 billion is up from $928 million in the first quarter of 2005. Teck Cominco said the increase in profits was due in part to an after tax gain of $58 million from the sale of investments.
Mr Don Lindsay president and CEO said "Compared with a year ago, the company had a strong first quarter as a result of higher metal and coal prices, despite seasonally low sales volumes from Red Dog and lower copper, molybdenum and coal sales volumes."
Harsco Q1 profit up by 49%
Industrial services and products maker Harsco Corp. said Monday its profit in the first quarter surged 49%, lifted by two acquisitions completed in the prior quarter. For the quarter ended March 31, earnings rose to $34.3 million from $23.1 million, or 55 cents per share, a year earlier. Revenue rose 20 % to $769.6 million from $640.1 million, reflecting growth in both service and product sales.
Results benefited from the purchase of Huennebeck Group GmbH in November and the December acquisition of the Northern Hemisphere steel mill services operations of Brambles Industrial Services. This was offset by sale of Harsco's UK based Youngman manufacturing operation in October.
Zambias Collum coal mine to quadruple output by 2008
Mr Xu Jian Xue, chairman of privately-owned Collum Coal Mining Industries Ltd, told Reuters in an interview his firm expected to double its production to 240,000 tonnes in 2007 and then lift it to 480,000 tonnes the following year. "There is high demand for coal from the copper mines and we currently cannot meet that demand as we are still growing. The business atmosphere is looking good and, coupled with a friendly investment atmosphere we should be able to grow" Mr Xu said.
Mr Xu said demand for coal was also rising from Zambia's largest cement producer, Chilanga Cement Plc, due to the government's plans to start constructing two new power plants and many housing units this year.
Collum Coal Mining Industries is owned and run by five Chinese brothers who each invested a total of $5 million to start mining coal in Kandabwe, 400 kilometers south of the Zambian capital Lusaka. Collum Coal Mining Industries started production with output of 10,000 tonnes of coal per month last January.
Navajos protest water talks with Peabody Coal
It is reported that Navajos marched to the Navajo Nation Council and protested the tribe's negotiations with Peabody Coal, opposing the use of Navajos' pristine aquifer water by coal mines and power plants. Navajos from remote areas, many of whom live without running water and drive long distances to haul their drinking water, protested ongoing negotiations with Peabody Coal for continued use of the N and C aquifers' water for coal slurry in Arizona.
During a meeting with Navajo President Marchers voiced opposition to Peabody's water use and opposed the tribe's planned Desert Rock Power Plant. They said the power plant will increase pollution and health hazards for Navajos in New Mexico, where power plants and industries have fouled the air and water in the Four Corners region. Tribes received the findings of a recent scientific report that predicts grave consequences for the aquifer, which supplies most of the drinking water to American Indians in northeastern Arizona, if the project is allowed to proceed.
Coal mining giant Peabody Energy is asking the two nations, as well as the federal government, for permission to increase access to the Navajo Aquifer, which lies beneath Black Mesa, by more than 50%.
