April, 29 2006
TATA Steel acquires Thai Steel Co
TATA Steel on Friday completed acquisition of 67.11% stake in Millennium Steel Public Company of Thailand for about $170 million. It had acquired the stake through combination of preferential allotment of 24.99% and open offer totaling 42.12%. The investment was made by TATA Steel and its Singapore based wholly owned subsidiary Natsteel Asia Pte Ltd.
The board of Millenium Steel has been reconstituted and out of 11 directors six are nominees are from TATA Steel and TATA Steel MD Mr B Muthuraman was appointed chairman of Thai steel company.
Millennium Steel is one of the largest steel companies in Thailand with a capacity of 1.7 million tonnes producing long products with three plants.
Steel projects in Jharkhand & Orissa to get delayed
It is reported that the central mining ministry has rejected several applications from steel producers for iron ore mining leases in Orissa and Jharkhand. These include names like TATA Steel, Bhushan Steel, Jindal, Ispat Industries, Monet Ispat, Aarti Steel and Neepaz Metalliks. The rejection of mining leases is likely to delay implementation of green field steel projects in Orissa and Jharkhand by the applicants as the viability of these steel projects depends entirely on the allocation of mines.
While applications of some players have been rejected on the grounds that they already have mines, some other applications have been rejected because the mines which they have applied for fall under the Reserved for PSU category. Orissa state mining secretary Mr Bhaskar Chatterjee said that the rejections could be on account of the mining areas coming under forest cover.
While the large players like the TATA Steel, Essar and POSCO are yet to begin work in the two states, small players like Aarti, Neepaz, Jindal and Bhushan have started work on projects in the hope that iron ore mines will be allotted to them. Now they are likely to challenge the rejection.
Electrosteel receives pollution clearance for sintering plant
It is reported that Electrosteel Casting Limited has received the Pollution Control Board clearance for the new 850 tonne per day sintering plant and the work is expected to begin shortly.
The project at the plant site in Khardah, for increasing the liquid metal availability from the blast furnace, entails an investment of Rs 66 crore, and will be completed within the next 12 to 15 months.
Indian ship breakers seek asbestos laden Blue Lady
EximIn has reported that several Indian ship breaking companies are keen to acquire another asbestos laden cruise ship Blue Lady for dismantling. The Blue Lady is at present anchored off the coast of Malaysia as it is termed a potential environmental hazard.
The Blue Lady, built by the French, which sailed under the names Norway and France under previous owners is now reported to be owned by Mr Lokman Hossain a Bangladesh national who runs the Chittagong based Jiri Sudebar Steel Re-rolling Mills and was denied permission by Bangladesh government to break the ship in Bangladesh.
Greenpeace had included the Blue Lady on a list of 50 ships which the environmental advocacy group fears might not be decontaminated before dismantling.
Blast during furnace repair at Upper India Steel kills 2
It is reported that a powerful blast took place in the furnace of an Upper India Steel in Giaspur Ludhiana on Friday evening killing 2. The engineer undertaking some repair work of the furnace compressor was also killed along with a local helper.
Two other injured have been sent to hospital.
Police officials said they were investigating to see why the blast occurred.
CIL production up by 20 million tonnes in 2005-06 YOY
Minister of Coal Mr Shibu Soren informed that Coal India Ltd produced 343 million tonnes of coal during the last financial year, 20 million tonnes more than the production of coal during 2004-05.
He also said that the Neyveli Lignite Corporation also exceeded the production target of 20.4 million tonnes of lignite by producing 21.567 million tonnes during 2005-06.
RINL invites EoI for appointment of consultant
Rashtriya Ispat Nigam Limiteds intends to revisit its corporate objectives and strategies formulated during 2003 in view of Companys present performance and emerging competitive environment in the industry. The Company is planning to engage experienced Consultants for working out strategic goals and plans for sustaining profitability and mitigating the risk involved in various areas like fluctuation in raw materials prices, steel prices, domestic and external competition etc.
The Consultants would work with a cross functional team of senior officials and make a comprehensive study of the prevailing processes, structures, relationships, working conditions etc and suggest specific strategies, action plans keeping in view the emerging global scenario, to help the Company realize its vision of being a continuously growing world class company.
The Consultants shall have experience in strategic planning, risk management etc. They should have worked or similar projects for a manufacturing unit of annual turnover of at least around Rs.4000 crores. The Consultants with similar works carried out in integrated steel plant will be preferred. However, this may not be a constraint.
RINLs Visakhapatnam Steel Plant, the only shore based integrated Steel Plant came into operation in the year 1990 and was dedicated to the Nation in August, 1992. The Company is predominantly producing long products such as Rounds, Angles, Channels and Wire Rod Coils. Presently the Company is operating at around 120% of installed capacity. The turn over of the Company is around Rs.8,500 crores. RINL is poised for doubling its capacity to 6.3 million tonnes of liquid steel production. The Expansion Project would be completed by 2008-09 and the turnover after expansion is expected to be around Rs.14,500 crores.
Arcelor board reelects Chairman and Vice Chairman
The Board of Directors of Arcelor met at the close of the General Meeting of Shareholders held on April 28 in Luxembourg and re elected Mr Joseph Kinsch and Mr JosRam varez Rendueles as its chairman and vice chairman. The resolutions on the renewal of the administrators' mandates were approved by the General Meeting with an average of 80.19% of the votes.
At the General Meeting, the terms of the following directors were renewed Mr Ulrich Hartmann for 2 years, Mr Joseph Kinsch for 2 years, Mr Edmond Pachura for 2 years, Mr Fernand Wagner for 2 years, Mr Hedwig De Koker for 3 years, Mr Jean-Pierre Hansen for 3 years, Mr Daniel Melin for 3 years, Mr Sergio Silva de Freitas for 3 years, Mr Mr John Castegnaro for 4 years, Mr Manuel Ferndez Lez for 4 years, Mr Francisco Javier de la Riva Garriga for 4 years, Mr JosRam varez Rendueles for 4 years, Corporaci JMAC BV for 5 years, Mr Jean-Yves Durance for 5 years, HRH Prince Guillaume of Luxembourg for 5 years and Mr Georges Schmit for 5 years.
The mandates of No Forgeard and Michel Marti, elected to the Board of Directors in 2004, run until 2009.
The Board of Directors of Arcelor is composed of 18 directors, three of whom represent the employees.
Nippon Steel posts 56% increase in net profit for year
Japan's largest steelmaker Nippon Steel Corp has announced 56% increase in net profit for the financial year ended March 31 due to increased product prices. The net profit rose to 343.9 billion yen from 220.6 billion yen in the previous financial year, while operating profit grew by 34% to 576.3 billion. Revenue rose by 15.3% to 3.91 trillion yen as crude steel production jumped to 33.95 million tons from 32.79 million tons. Delivery price of its steel products averaged 74,300 yen per ton in the past year, higher than the year ago's 61,600 yen per ton.
Nippon Steel MD Mr Nobuyoshi Fujiwara said Surging delivery prices of our steel products helped us more than offset the adverse impact of rising procurement costs.
But Nippon Steel expects operating profit at the steel division to fall to 430 billion yen in the current year, due to rising procurement costs and competition in the common grade steel market. Nippon Steel predicts net profit will decline to 280 billion yen in the year to March 2007 and overall operating profit will drop to 475 billion although revenue is projected to rise by 2.3% to 4.0 trillion yen.
Arcelor will reconsider Mittal Steel offer made exclusively in cash
Arcelor chairman Mr Joseph Kinsch said the group is ready to reconsider any takeover offer from Mittal Steel made entirely in cash, instead of the current cash and share bid. If Mittal Steel made an offer exclusively in cash, the board of directors would of course reconsider its position' against the bid Mr Kinsch said at the group's AGM. We are not at all stopping Mittal from improving its offer. If this is the case, the shareholders will study it and decide whether or not to tender their shares he said.
Mr Kinsch also said that Arcelor has no plans to launch a share capital increase solely with a view to making the hostile takeover bid from Mittal Steel more expensive. The board of directors will take no measure whose aim is to scupper Mittal Steel's offer he said. It does not intend to launch a capital increase with the only goal of countering an offer though he maintained that a capital hike could be launched in order to pursue 'a value-creating industrial project.'
Arcelor is actively examining alternative strategies. Numerous opportunities are open to the company and its shareholders Mr Kinsch said.
China steel supply and demand almost balanced in Q1
China Iron and Steel Association said at a press conference in Beijing said that China's steel supply and demand was basically balanced in the first quarter. China's raw steel production stood at 92.19 million tons in the first three months up by 17.56%YOY, whereas China consumed a total of 89.42 million tons in up by 16.46% YOY.
Mr Luo Bingsheng CISA's vice president said The basic balance of steel supply and demand can be attributed to robust domestic demand and higher exports.
China's domestic steel demand has been buoyed by a 27.7%YOY rise in fixed asset investment in the first quarter.
China's steel exports also rose to 2.77 million tons in the first quarter, up from 1.13 million tons from a year earlier.
Evraz Group net profits down by 23.3% in 2005
Evraz Group announced that its net profits calculated to International Financial Reporting Standards declined by 23.3% YOY in 2005 to $905.2 million. Sales grew by 9.7% to $6.51 billion in 2005 from $5.93 million in 2004 although total volumes of steel products sold in 2005 did not change significantly compared to 2004. Operating profit fell by 13.7% in 2005 YOY to $1.58 billion while EBITDA dropped by 7.8% to $1.86 billion.
Revenues from Russian sales amounted to $3.889 billion 59.8% of total sales as compared with $3.288 billion and 55.4% in 2004. The increased share of domestic revenues was attributable to stronger prices in the Russian market compared to non Russian markets.
Evraz Group is one of the leading vertically integrated mining and metallurgical companies in Russia. It incorporates three large steel enterprises and some ore mining and coal producing facilities.
Arcelor AGM no indication of bid sentiment Mittal Steel
Reuters has reported that Mittal Steel said on Friday that the results of Arcelor's shareholders meeting were no indication of sentiment regarding Mittal Steel's hostile bid for the group.
A Mittal Steel spokesman said "None of the resolutions at Arcelor's AGM related to our offer or their defensive actions. Therefore the results are not a reflection of shareholder sentiment to the proposed combination of Arcelor and Mittal Steel which we continue to believe creates value for both sets of shareholders."
CISA says that the direction of iron prices undecided
CISA said on Friday that negotiations on international iron ore prices have reached a deadlock with the direction of prices of imported iron ore for this year still unclear. Mr Luo BingSheng executive VC and secretary general of the China Iron & Steel Association told a news briefing "Both sides are unable to come up with a timetable for the talks to conclude. The basic direction in terms of whether iron ore prices should go up or down this year hasn't yet been decided."
Mr Luo said that the suppliers have been insisting that iron ore prices should be raised further this year, while Chinese buyers have been asking for prices that are lower than last year's.
Chinese buyers led by Shanghai Baosteel Group Corp. are in the middle of talks with leading suppliers BHPB, Rio Tinto and CVRD in a bid to set prices for iron ore imports for this year.
Ternium Announces First Quarter 2006 Results
Ternium SA announced its results in accordance with International Financial Reporting Standards for the quarter ended March 31, 2006. The net sale is reported at $1.5 billion with operating income of $392.5 million, EBITDA of $500.5 million and net income of $194.5 million on shipments of flat and long products of 2.2 million tons.
During the first quarter of 2006 Ternium's facilities produced 2.5 million tons of crude steel, compared to 2.4 million tons in the previous quarter.
Ternium's 2006 first quarter performance reflects continued strength in our core steel markets. Revenue increased in the first quarter of 2006 compared to the last quarter of 2005 as record production levels in our Mexican subsidiary Hylsamex supported higher shipments. EBITDA margin remained stable compared to the previous quarter as higher cost of sales was offset by a reduction in SG&A expenses.
Jinchuan puts price cap on Nickel prices in spite of global volatility
Jinchuan Group, China's largest nickel smelter has placed a price cap on all nickel products to sales agents since the end of April in a bid to retain customers as the nickel price soars to record highs. A company official said "Company is worried that dramatic growth of nickel prices will hurt our business in future although it is currently benefiting from the high price." The spokesperson said that the company had not seen decrease of nickel product sale so far, but downstream customers will no longer be able to afford the cost if the nickel price goes higher.
However and analyst doubted that the policy will be maintained for a long time since the price of nickel price is likely to increase further in the coming months.
As the largest nickel consumer in the world, China's nickel consumption dropped by 15.6% in the first two months this year and imports of refined nickel in the first quarter even decreased 25.7% to 20,144 tons.
The Nickel cash price on the London Metals Exchange was $20,150 per ton and the three month price was $19,800 per ton on April 26, which is highest, recorded since they were first quoted on the LME in April 1979. Nickel prices have soared 48% since early 2006.
Arcelor shareholders approve 2005 financial statements and dividends
The General Meeting of Arcelor shareholders held on 28 April 2006, presided by Mr Joseph Kinsch, adopted all resolutions submitted for approval. In particular, shareholders approved 2005 financial statements and the distribution of a gross dividend of Euro 1.85 per share, payable on 29 May 2006.
The items on the agenda for the meeting included report of the Board of Directors and the Auditors Report on the annual accounts and the consolidated accounts for the 2005 financial year, approval of the annual accounts for the 2005 financial year, approval of the consolidated accounts for the 2005 financial year, determination of the amount of fees to be allocated to the Board of Directors, allocation of results and determination of the dividend, discharge of the directors, statutory elections, renewal of the authorization of the Board of Directors of the Company and of the corporate bodies of other companies in the Group to acquire shares in the company and appointment of an independent company auditor to examine the annual accounts and the consolidated accounts for the 2006 and 2007 financial years
Mr Joseph Kinsch, Chairman of the Board of Directors, stated that "2005 was a year of consolidation and reinforcement of international positions for Arcelor which testified to the pertinence of our Group's business model, with excellent results in clear progress despite less favorable economic conditions than in the previous year".
Mr Guy Doll President of Arcelor's Management Board, attributed Arcelor's excellent results to "the strength of a business development model that delivers excellent results and is committed to the long term". After reviewing the process of industrial integration conducted by Arcelor in the years from 2002 to 2004 and the transformation based on expansion into emerging markets, cost reduction and partnerships with customers, Mr Guy Dollwent on to outline the value creation plan for the period 2006-2008 which was announced on 27 February 2006.
Arcelor will announce first-quarter 2006 results on Friday, May 12, before markets open.
Chien Shing to build SS mill in Vietnam
Taiwan's Chien Shing Stainless Steel Co has planned to build an integrated steel mill with an annual production capacity reaching 720,000 metric tons of stainless steel. Chien Shing said the erection of the steel mill has won approval from the Vietnamese government. The project will require funds of $700 million, $490 million of which will come from the international capital market.
Vietnamese government is offering many tax incentives to attract foreign investment and Chien Shing will save between NT$2 billion ($62.5 million) and NT$3 billion ($93.75 million) in tariffs for the importation of production equipment at the new plant.
Coal mine blast kills 5 in Jiaxian county in Central China
Five miners were killed and another seven were injured in a coal mine explosion in central China's Henan Province on Wednesday night. The blast occurred in a coal mine in Yegou Village of Huangdao Township in Jiaxian County when 66 miners were working underground. Five miners were killed. The rest survived the accident, seven of whom suffered slight injuries.
Investigation into the cause of the blast is under way.
The colliery was run by Daliushan Coal Company, a subsidiary of Henan Yuantian Corporation.
Bolivians in Puerto Suarez to strike in support EBX
Bolivian civic leaders in the eastern town of Puerto Suarez called a general strike and blocked roads to Brazil on Friday, demanding the government reconsider its decision to kick out a Brazilian iron company it says is operating illegally in the country. Leaders in Puerto Suarez have given the government until Sunday to approve the company's permits. They plan to block roads and rail lines connecting Bolivia to Brazil until then.
Protesters held a similar strike earlier this month and took three government ministers hostage overnight, after the ministers had arrived to negotiate.
East Siberia pipeline construction begins
Mr Anatoly Bezverkhov GD of the East Siberia Pacific Ocean Company. Transnefts subsidiary responsible for the pipeline project, informed that the construction of the first section of the East Siberia-Pacific Ocean pipeline began in Taishet in Irkutsk region on Friday. 2.7 kilometers of pipelines have been laid so far. The pipeline will be built at a speed of between 200 and 300 meters a day.
Mr Bezverkhov said. We will work fast in order to complete the construction by the second half of 2008 as planned. The construction of the first section of the pipeline would be completed on time, despite the transfer of part of the pipeline to the north of Baikal Lake. Mr Bezverkhov said that most probably, Transneft would abandon plans to take the pipeline to Buryatiya and Yakutiya, and it would go from Irkutsk to Yakutia.
General contractor for the project is the Stroisistema construction firm, based in Omsk.
The project will be implemented in two stages. The first section of the pipeline, from Taishet to Skovorodino in the Amur region, with a capacity of 30 million tons, will be built by the second half of 2008, as well as an oil terminal on the Pacific coast. During the second stage, a pipeline will be built from Skovorodino to Perevoznaya Bay in the Primorsky region; it will have a capacity of 50 million tons a year. The total cost of the project is about $11.5 billion, of which $6.6 billion is the cost of the first stage.
Ukrainian ambassador denies media reports of radioactive steel
Ukrainian Ambassador in Amman, Mr Victor Nagaichuk rejected media reports that Ukrainian steel exported to Jordan is contaminated with nuclear radiation. Mr Nagaichuk during a press conference to mark the 20th anniversary of the Chernobyl nuclear disaster said These are incorrect rumors and are meant to force out Ukrainian metal producers from Jordanian and other Arab markets. They seek to harm Ukraine's steel industry as steel and its by products are among the most significant exports of the country.
The ambassador said it is forbidden to use any materials from the Chernobyl area for industrial purposes, noting that metals undergo intensive and comprehensive inspections and that scrap metal has to undergo quadruple inspections.
Local news reports earlier this month claimed that Ukrainian steel products supplied to Jordan were being manufactured with the use of a radioactive scrap metal.
ASIC files a new claim statement against Fortescue
Australian Securities and Investments Commission has prepared a new statement of claim in its case that Fortescue and Mr Forrest misled the stock market. A scheduled hearing to strike out the case against Mr Forrest and Fortescue did not go ahead in the Perth Federal Court after ASIC entirely substituted the statement of claim outlining its case. The new documents include further claims against Fortescue and Mr Forrest and seek additional orders against them.
ASIC has sought leave to amend its claim in response to allegations by the defendants that the original claim was defective because it did not refer to an Australian Stock Exchange announcement dated November 8, 2004 which was released to the market on November 9, 2004. ASIC said it would now seek to rely on that announcement and other statements set out in its new statement of claim as a basis for seeking the additional orders.
Its Lawyer Martin Bennett said the new statement of claim prepared for ASIC's Federal Court bid to impose $3.6 million in penalties against Mr Forrest and Fortescue Metals Group still included big ticket errors.
ASIC alleges Mr Forrest and Fortescue deceived the stock market about contracts with the Chinese backers of Fortescue's $2 billion iron ore project in the Pilbara in Western Australia's northwest.
The matter is scheduled to return to court in June.
Chinas iron ore import up by 27.7% in Q1
China's iron ore imports in the first quarter climbed 27.7% YOY to 80.91 million tons, with imports in March alone at 29.51 million tons. China's steel mills are expected to import 301 million tons of iron ore this year, up 26 million tons, or around 10%, from last year, the CISA said in a statement.
Domestic iron ore production, based on the most conservative assumption will likely grow by 10% or 48 million tons to 528 million tons this year the statement said. That is equivalent to 22.9 million tons of iron concentrate with content of more than 65%, it said. Domestic production and imports will help basically reach a balance in supply and demand for iron ore in China, the association said.
Kazakh SSGPO increases pellet exports by 2.1% in Q1
Rudprom, the Russian agency which collates statistics about FSU ore producers has informed that Kazakhstan's biggest iron ore producer Sokolov Sarbai Mining Production Association has increased pellet exports by 2.1% YOY in January to March 2006 to 1.91 million tonnes and concentrate exports by 56.3% to 1.48 million tonnes.
Rudprom informed that SSGPO increased pellet exports to China by 160% to reach 857,000 tonnes while pellet exports to Russia decreased by 31.6% to 1.055 million tonnes. However concentrate exports to Russia grew by 47% to 1.39 million tonnes.
Magnitogorsk Iron & Steel Works is SSGPO's biggest customer in Russia.
Lending rate hike to erode Chinese steel makers profits further
Another senior official of CISA said that the latest lending rate hike by the central bank would erode the industry's profitability further, as steel makers usually face relatively tight liquidity. Vice Secretary General Mr Qi Xiangdong told reporters that the association has yet to come up with a quantitative assessment on the impact of the rate hike on steelmakers.
From Friday, the People's Bank of China raised the benchmark one-year lending rate by 27 basis points to 5.58% from 5.31%, in a bid to help rein in the country's too rapid economic growth, which reached 10.2% in the first quarter.
Kazakhstan's enlarged mining and metal co targets IPO in 2007
The holding company to be created through a merger between six metals and mining companies in Kazakhstan could hold an IPO in London in the fall of 2007. Ms Zaure Zaurbekova the Eurasian Industrial Association vice president for economics and finance at a briefing in Almaty said I think that realistically, the offering will take place in the fall of 2007."
Ms Zaurbekova also confirmed that 20% of the holding's shares would be floated on the Kazakhstan Stock Exchange. "I can confirm this information. We have said that 20% of the new company's shares will be offered on the KASE," she said.
Talks are being held with a number of international investment companies to name the lead managers for the IPO. Ms Zaurbekova said "international audits are in full swing at the enterprises." "We're restructuring our enterprises and a large group of appraisers is working on a valuation of our assets," she said.
The Eurasian Industrial Association has suggested a merger between Kazchrome, iron ore producer Sokolov-Sarbai Mining Production Association, Eurasian Energy Corporation, Kazakhstan Aluminum, Electrolysis Plant (an aluminum smelter being built in Pavlodar) and manganese ore producer Zhairemsky GOK and floating them on the international stock market.
ICG reports net loss in Q1 due to Sago mine accident
International Coal Group Inc reported revenues of $212.2 million for the quarter ended March 31, 2006, which is a 38% increase compared with $153.2 million in the first quarter of 2005. The Company also reported an operating loss of $7.9 million for the quarter, compared to operating income of $20.1 million in last year's first quarter. EBITDA was $10.6 million, compared with $29.2 million in last year's first quarter. In the first quarter of 2006, the Company reported a net loss of $6.2 million versus net income of $10.9 million for the comparable period in 2005.
The first quarter 2006 results were negatively impacted by $11.7 million in costs attributable to the fatal accident at the Company's Sago mine in West Virginia on January 2. These costs include all out of pocket expenses incurred during the quarter, including reserves established for legal and other future costs, offset by minor revenue received after the Sago mine resumed coal production on March 15.
ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The Company has 11 active mining complexes, of which 10 are located in Northern and Central Appalachia and one in Central Illinois.
Vietnams sole flats producer PFS to start exports soon
Vietnam state owned Phu My Flat Steel Company will send the first shipments of its products to overseas markets this year. Mr Huynh Quang Bau, PFSs GD said "Final preparation is underway for our first sales to markets in the US, the EU and South Asia in the third quarter."
PFS is Viet Nam sole producer of flat products and was set up in late 2003 with a total investment of $129 million Located in the Phu My 1 Industrial Park of Ba Ria-Vung Tau province, it began production last June and by mid April had also sold 100,000 tonnes to domestic clients including the unit of Blue Scope Steel and the Vietnamese Korean JV Posvina.
PFS plans to sell 230,000 tonnes this year, though it has an annual capacity of more than 400,000 tonnes as full capacity utilization would be achieved in the fourth quarter.
Vietnam's total demand for flat products is reported to be more than 1 million tonnes per year.
Zaleski's Tassara raises Arcelor stake to 4.3%
Carlo Tassara International, the holding company controlled by Mr Romain Zaleski, has raised its stake in Arcelor to 4.3% from the 3.63%, according to a filing with the French market regulator AMF.
Tassara has again confirmed to the AMF that it may raise this stake.
Arcelor Chairman Mr Joseph Kinsch told reporters after the company's annual general meeting "I have just learnt that Mr Zaleski now has more than four percent of our capital, making him an important shareholder. We are going to try and make contact with him soon to find out what his intentions are."
BHP Billiton announces board appointments
BHP Billiton Chairman Mr Don Argus announced the appointment of two additional non-executive directors, Mr Paul Anderson and Mr Jacques Nasser, to the BHP Billiton Board, effective 6 June 2006.
Mr Anderson was MD and CEO of BHP Billiton from 1998 to 2002, and presided over the merger of BHP and Billiton in 2001. He is currently Chairman of Duke Energy having relinquished the CEO role following Dukes recent merger with Cinergy Corp.
Mr Nasser had a 33 year career with the Ford Motor Company in various leadership positions in Europe, Australia, Asia, South America and the United States. He served as CEO of Ford from 1998-2001.
Mr Argus said that both appointments would be invaluable additions to the BHP Billiton Board, bringing with them a wide range of international business skills. Mr Argus said that the appointments would bring the number of BHP Billiton directors to 14. The Groups established process of continually reviewing the mix of skills and competencies of directors will continue to ensure that the Board is made up of members best able to promote shareholder interests and effectively govern the Group.
Olympic Steel reports 16% dip in revenues in Q1
Olympic Steel Inc announced its financial results for the first quarter ended March 31, 2006. Net sales for the first quarter of 2006 totaled $238.9 million, a 16% decrease from the $284.6 million for the first quarter a year ago. First quarter 2006 net income totaled $7.98 million as compared to net income of $9.6 million for last year's first quarter. Tons sold decreased by 6% to 338,000 from 360,000 tons in the first quarter of 2005.
Mr Michael D Siegal Chairman and CEO said "We took actions consistent with our long term strategy of delivering additional value added services and supply solutions for our customers by migrating into more downstream processing. During the first quarter of 2006, we significantly increased our capital spending to $6.2 million. The 150,000 square foot facility we purchased in Chambersburg, Pennsylvania to fabricate steel plate became operational during the quarter. We expanded our existing processing presence there with welding, continuing our emphasis on adding depth to our customer services. We also installed two new laser-processing lines in Winder, Georgia during the first quarter and are installing three more in the second quarter, two in Minneapolis and one in Cleveland."
Founded in 1954, Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the Company operates 12 facilities.
Wabush Scully has iron ore reserves to last at least 7 years
There are sufficient iron ore reserves at the Wabush Scully Mine in Labrador to last at least another seven years as per the assessment of a consultant's report released today by Natural Resources Minister Mr Ed Byrne. The report was commissioned in January 2005 as a result of union concerns over the mine's life.
The consultant, Strathcona Mineral Services Toronto, says the mine managers properly calculated the mineral reserve estimates in 2002 and 2003. The report says there are sufficient iron ore reserves to support mining until 2013.
It says the construction of a manganese reduction plant could prolong the life of the mine beyond 2013, and possibly up to 2021. It would cost about $40 million to build such a plant.
The mine is owned by Cleveland-Cliffs, Stelco and Dofasco.
Survey reveals 143 million ton coal deposit in Bangladesh
A geological survey has identified a 143 million ton reserve of high quality bituminous coal in eight underground layers in a 2.52 square kilometer area at Khalashpir under Pirganj that can be profitably mined.
A survey of Geological Survey Department in 1959 to 1962 first detected the large coal deposit at Khalashpir. The department in a survey estimated the reserve to be 800 million tons in a 25 square kilometers area.
But, since then the government had not taken any step to explore or mine the coal until 2004, when it commissioned Hosaf International Consortium to conduct the just concluded survey. Hosaf launched the survey in January 2005. Out of the initially identified 25 square kilometers reserve area, the Hosaf survey demarcated the coal in 2.52sqkm section as suitable for commercial extraction and that in the remaining 22.48 square kilometer not viable for profitable mining.
Vinacomin & Japan to continue cooperation on coal mining
The Viet Nam National Coal and Mineral Industries Group held talks with Japanese partners on the coal policy and review the two countries cooperation in the industry in Quang Ninh province on April 26. Vinacomin introduced Viet Nam's policies on coal and related matters, covering coal utilization and supply in Viet Nam and coal export. The coal industry will give priority to construction of thermal power plants near coal mining areas and promote the export of high quality coal to major markets such as Japan.
Vinacomin suggested the Japanese side cooperate with Viet Nam to implement a number of projects on coal information channels between Viet Nam and Japan, technology transfer for production of clean coal, CH4 collection and use, coal mine, enhancing the capacity of mine rescue centers, and training in coal mining technology. The Japanese side said they hoped to cooperate with Viet Nam in these projects.-
Over the past eight years, Viet Nam Japan coal cooperation programs have been implemented effectively and expanded. Viet Nam's coal industry has developed markedly and exported coal to many countries.
Mr Don Foot, Palladon President commented, "I can't tell you how excited we are to have Greg join our staff. It would be very difficult to find a better person to be our Director of Operations. He brings years of experience that will benefit our projects greatly. In addition, to his mining and operations background, his commitment to a safe work environment matches exactly with our goals for all operations. Greg will help tremendously in the construction of our mining operations and bringing them to commercial reality."
Interpipe mulls IPO in 2008
Mr Oleksandr Kyrychko MD of Ukrainian Interpipe Management during the Tube Wire exhibition in Dsseldorf said that Interpipe Corporation is planning an initial public offering in 2008 and preparations for the IPO have been under way since last year.
TopMittal Steel Galati to raise share capital
Romania based Mittal Steel Galati announced that it will increase its share capital by 61.6 million RON. Mittal Steel Holdings AG has underwritten some 24.664.800 shares after the general shareholder meeting that was organized on February 9.
TopPalladon Ventures appoint director of operations for Iron Mountain
Palladon Ventures Ltd has announced the appointment of Mr Greg G Hawkins as Director of Operations at the Comstock Mountain Lion Mine on Iron Mountain near Cedar City in Utah and will play a key role in representing Palladon in the development of the Company's copper and gold exploration projects.
Mr. Hawkins has spent the last three years in general management roles and as Vice-President for Strang Excavation and Rock Products, where he was responsible for tripling sales and doubling pit productivity. His responsibilities included project engineering, project management, scheduling, maintenance, and employee health and safety.
