April, 06 2006
RINL looking for financial consulting firm for overseas coal mines
It is reported that the Visakhapatnam Steel Plant is in the process of appointing an internationally reputed financial firm as its consultant to explore ways to participate in global bidding for coking coal mines abroad.
RINL CMD Mr Y Siva Sagar Rao said "ours being the only steel plant in the country sans captive mines for the iron ore and coking coal, we are facing a lot of difficulties in coping up with constantly increasing prices of raw materials. Hence, we decided to take part in the global bidding for coking coal mines in countries like Australia and the financial consultant will advise us the best suitable offer."
Mr Rao said that efforts are on for striking joint venture with foreign coking coal firms to ensure the smooth supply of the raw material at a time when the work on the expansion project of the plant had already begun, he said.
Jharkhand government working on new site for Mittal Steel plant
It is reported that Jharkhand government has issued directives to the land revenue officials in Govindpur area under Karra block that 10,000 acres of land be identified immediately to prepare a report stating the location, precincts of the lands identified, the various categories of raiyati land under individual and state possession for the proposed Mittal Steel plant in Jharkhand. Once the land in Govindpur is identified, spot inspections will be carried out by the Ranchi deputy commissioner and senior land revenue officials to facilitate acquisition of land wherever necessary a report said.
It is reported that Mittal Steel has indicated their preference for Govindpur area since it lies on the rail head connecting Ranchi with Rourkela in Orissa and serves as an ideal location for a steel plant with easy connectivity with the rest of the country.
Vizag port cargo handling up by 11.4% in 2005-06
The Visakhapatnam Port handled 55.75 million tonnes cargo during 2005-06 registering a growth of 11.4% over 50.01 million tonnes in 2004-05 in spite of shifting 0.3 million tonnes to Kakinada port. VPT increased handling of thermal coal by about 1.5 million tonnes YOY.
VPT handled about 16.875 million tonnes of petroleum products including transshipment cargo, 15.974 million tonnes of iron ore, 3.619 million tonnes of fertilizers and fertilizer raw materials, 7.08 million tonnes of coking coal, 0.425 million tonnes of soyabean, 0.45 million tonnes of steel products and 8.42 million tonnes of other cargo as against 14.622 million tonnes, 16.43 million tonnes, 2.441 million tonnes, 6.507 million tonnes, 0.171 million tonnes, 0.244 million tonnes and 6.246 million tonnes respectively in the year 2004-05.
Mr K Ratna Kishore chairman of Visakhapatnam Port Trust said The port has been maintaining its number one position for six consecutive years in cargo handling among all other major ports in the country.
Steel Minister urges to use IT to improve efficiency in steel production
The Ministry of Steel is spearheading initiatives in the use of Information Technology since the integrated use of IT tools is needed to enhance productivity of steel plants significantly in the country, according to the Union Minister for Steel Mr Ram Vilas Paswan. Mr Paswan was the chief guest at the International Conference on Leveraging IT for global competitive advantage of the Indian Steel Industry jointly organized by the Confederation of Indian Industry, Indian Steel Alliance and Hewlett Packard.
Mr Paswan pointed out that SAIL has set out a five year program to switch over to e-commerce in a big way. Mr VS Jain Chairman SAIL said that the growth of the steel sector without integrating with IT was not possible. He said that it was important to make India a hub for steel manufacturing and for this use of IT was very important.
Mr MV Rajashekharan Minister of State, Planning said that the government could help companies adopt the right technology for improving productivity. He also said that IT provided the cost advantage to companies. Additional Secretary in the Ministry of Steel, Dr SN Dash said that IT could help bring transparency into the transactions in steel like in the case of e-auctions.
CII with the Indian Steel Alliance will work to ensure that companies are able to use IT for increasing productivity in the country.
Kirby Buildings Haridwar unit to begin commercial production
Hyderabad based Kirby Building Systems India, a subsidiary of the $1 billion Alghanim Group of Kuwait, will begin commercial production at its second pre engineered steel building solutions unit, set up at Haridwar in Uttaranchal, on April 6, 2006. Completed in a record time of seven months at an investment of $20 million, the new manufacturing plant will produce 60,000 tonnes of pre engineered steel buildings, taking the companys total installed capacity to 1,35000 tonnes a year. Kirby had set up its first unit at Pashamailaram Industrial Area in AP seven years back and its present capacity is 75,000 tonne a year.
Mr Omar Kutayaba Alghanim CEO of Alghanim Industries and Mr VR Rajan MD and CEO of Kirby Building Systems India Limited said that the company was bullish on the growing Indian industry. It was aiming to touch the Rs 500 crore turnover mark in the next couple of years from Rs 300 crore for the year 2005-06.
Mr Rajan said that the concept of pre-engineered steel buildings was gaining ground in place of conventional building structures among the industry players owing to quick completion, durability and cost advantages. India has a sizable market of Rs 2,300 crore for pre engineered solutions, which is growing at the rate of 10% YOY and according to him Kirby has a 60 per cent market share at present.
Kalpataru Power Transmission bags orders for TLT
Kalpataru Power Transmission Ltd has announced that in some of the projects, wherein the company was L1 bidder, orders were received in the last quarter including 400 KV transmission jobs from Power Grid Corporation on India in excess of Rs 3000 million, Rural Electrification jobs in Bihar of Rs 1750 million from Power Grid Corporation on India and a Rs 750 million distribution project from Uttaranchal. The order backlog, including L1 jobs where the Company is well placed, stands at over Rs 20,000 million.
The Company also announced the ISO 14000 and ISO 9000 certification for its new Tower Plant at Gandhinagar, set up as an export oriented unit in October 2005. The capacity has been enhanced by 30,000 tonnes per annum, taking total installed capacity to 84,000 tonnes per annum.
AP Genco gets 2 coal mines of Singareni Coal
It is reported that Union Ministry of Coal has allotted 2 out of 7 captive coal mines identified in the Andhra Pradesh to the Andhra Pradesh Power Generation Corporation, who is the main supplier of power to the AP and has 3,000 MW from thermal power plants out of its 6,500 MW installed capacity thus needing a huge quantity of coal as fuel.
APGenco has completed a geological survey of the blocks allotted, and is likely to call tenders to open the mines and produce coal.
No party has come forward to take the rest of the five captive mines of Singareni due to various reasons, including the huge investment required to exploit them.
Luxembourg set to drop amendment in takeover law
It is reported that the Luxembourg's parliament is set to scrap legislative plans that threatened Mittal Steel's bid for Arcelor citing a senior lawmaker. Luxembourg lawmakers had proposed an amendment to takeover law that would have prevented companies resubmitting acquisition bids for 12 months after the failure or withdrawal of a previous bid. But Luxembourg's top administrative review body, the state council or Conseil d'Etat, voiced its opposition to this key amendment on Tuesday. The key amendment could effectively have prevented Mittal Steel from making fundamental changes to its offer for Arcelor.
"I'm going to suggest that the committee accept the three formal objections by the state council and for the rest to remain with the actual text," Mr Laurent Mosar, head of the Luxembourg parliament's finance committee, told Reuters. The finance committee is responsible for putting forward a proposed takeover law and it will meet on Thursday morning to discuss the new proposed text. Mr Mosar is in charge of drawing up amendments.
Gerdau Ameristeel acquires Sheffield Steel
Sheffield Steel Corporation announced today that it has entered into a definitive agreement with Gerdau Ameristeel to sell all of the outstanding shares of Sheffield Steel Corporation. Subject to certain closing adjustments, the purchase price for all of the shares of Sheffield is expected to be approximately $76 million in cash plus the assumption of approximately $94 million of debt and certain long term liabilities. The transaction, which is subject to Sheffield shareholder approval, satisfactory completion of anti trust and applicable regulatory reviews and other customary closing conditions, is expected to close in the second quarter of 2006.
Mr James Nolan President and CEO of Sheffield Steel commented "This transaction is a positive outcome for Sheffield Steel, our employees, and the communities we operate in because of the excellent reputation and financial strength of Gerdau Ameristeel. Under the leadership of Gerdau Ameristeel, the combined organization will have additional resources and capabilities with which to service our existing customers as well as the expanding southwestern markets."
Sheffield Steel is a mini mill producer of SBQ and MBQ hot rolled bar products, concrete reinforcing bar and fabricated products, including fabricated rebar, steel fence posts and railroad track spikes with annual shipments of 550,000 tonnes. The company's headquarters and largest manufacturing facility is located in Sand Springs, Oklahoma, where it has an annual billet making capacity of 650,000 tons. It also has a rolling mill in Joliet, Illinois, two fabrication shops in the Kansas City area, and a railroad spike producer in Sand Springs, Oklahoma. Sheffield also owns the Sand Springs Railway, which connects the Sand Springs industrial corridor to Tulsa, Oklahoma.
Gerdau Ameristeel is the second largest mini-mill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of finished steel products. Through its vertically integrated network of 15 mini mills (including one 50% owned mini mill), 17 scrap recycling facilities and 43 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern two thirds of North America.
Iron ore negotiations reported to be non conclusive
It is reported that the China's latest round of talks with major iron ore suppliers has not yet resulted in a price agreement. According to a source close to the ongoing talks between Baosteel Group and major suppliers, including CVRD, Rio Tinto and BHP Billiton have so far been unsuccessful.
The source said the parties were still at loggerheads and prices would remain at last year's level until a settlement was reached.
The fourth round of this year's iron ore price negotiations was launched earlier last week.
MEPS forecast on EUs carbon steel prices
MEPS ha said that in the flat products category, mill order books are swelling as buyers return to the market to replenish their inventories. This situation is likely to extend into the next round of negotiations for third quarter deliveries. MEPS, however, detect a rise in applications for import licenses for deliveries around the middle of the year.
The potential threat from imports has prompted MEPS to forecast stable prices for deliveries in the third quarter. Small price erosion is anticipated for negotiations in September for the final quarter, followed by further easing in the New Year. This assessment is also based on the likelihood of unplanned outages returning to production, thus alleviating current shortages.
MEPS maintains that long product prices will move up steadily during the first half of 2006 as construction demand increases and the existing tight supply conditions prevail. In the second half prices are expected to contract slowly as import volumes expand and the inventory building is completed. The average EU long products price in March 2007 is predicted to be close to the figure recorded this month, - assuming no major upset in international market conditions which may cause scrap values or energy costs to explode.
Brazilian steel demand to grow during 2006
Brazilian steel demand is expected to improve this year compared to 2005 thanks to the country's elections and reduced interest rates, mining and metals analyst Elaine Rabelo of brokerage Coinvalores told BNamericas. "This year will be more positive compared to 2005, as in an election year the government historically increases its investments," the analyst added. "There is an environment of better demand and prices compared to previous quarters." Brazil's presidential elections are in October 2006.
Meanwhile lower interest rates will make it more cost-effective for steelmakers to finance expansions and is due to boost consumption in Brazil. "In international markets we are seeing an increase in steel prices," Rabelo said. Indeed Brazilian steelmakers Usiminas and CSN have already said they plan to expand prices starting in Q2.
Last year Brazilian steelmaker's faced a number of factors that took a bite out of operational margins, including a "weak domestic market, an increase in exports with a weaker US dollar against the real and pressure on costs," Rabelo said. And the country's crude steel output for all of 2005 decreased 3.9% to 31.6 million tonnes.
Asian thermal coal prices may beat forecasts ANZ
Asian contract prices for thermal coal may outpace forecasts because of colder weather in North Asia and Europe and disruptions in Indonesian exports, ANZ Banking Group Ltd said. Japanese utilities such as Tokyo Electric Power Co may agree to pay as much as $47 a ton in the year that started April 1, up from $42 forecast in December, said Mr Andrew Harrington. Prices won't fall as much as predicted from last year's record of $53, he said.
Talks on annual prices in Asia have been delayed into the new Japanese business year as buyers resist demands by producers to renew contracts at last year's record price. Meantime, the price of coal sold for immediate delivery by producers in Australia such as Xstrata Plc and BHP Billiton has risen 46% since November, partly because of colder weather in Japan. Generally, the contract price tends to be settled a couple of dollars discount to the spot price.
Melbourne-based Goldman Sachs JBWere Pty is forecasting contract prices may be settled at $48 a ton this year, while UBS AG is forecasting $46 a ton. National Australia Bank Ltd. will raise its forecast of $42 later this month, probably to the high $40s, said Mr Gerard Burg, a minerals and energy economist at the Melbourne-based bank.
Padana Tubi orders for tube citing machine from SMS Meer GmbH
Italian tubular section manufacturer Padana Tubi & Profilati Acciaio SpA has placed an order with SMS Meer of Germany for the supply of a traveling tube cut off machine. Within the scope of supply for a new tube welding line by SMS Meer, this new machine is a major step forward in ensuring the production of high-quality tubes on modern lines at Padana Tubi. Commissioning of the new machine is scheduled for 2007.
The machine is designed to cut the round or rectangular tube strand leaving the ERW line using a milling cut off unit, traveling synchronously with the speed of the tube strand. The tubular section cut off machine with its two milling cut off blades offset at approx. 180 to one another rotating about the tube is characterized by practically burr free cut surfaces without cold deformation and a very good surface finish, close tube length tolerances and good tube optimization. Further benefits are the low tool costs, short size change times and low noise development during cutting.
The tubes and corresponding sections are in the diameter range of 5 to 14 with wall thicknesses from 3mm to 10 mm in 5 meters and 16 meters lengths.
Guastalla based Padana Tubi has now added its name to the list of 14 other tube manufacturers worldwide with a total of 24 machines who have already decided in favor of a machine from this series.
SMS Meer GmbH forms part of the Tube, Long Product and Forging 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.
Hyundai Heavy gets 15% price cut on SBQ plates from Japanese steelmakers
Hyundai Heavy Industries Co, the world's largest shipbuilder, said it got a 15% on steel plates from Japanese steelmakers including Nippon Steel Corp as competition from China drives prices lower. Hyundai Heavy has agreed to buy steel plates from its Japanese suppliers at $580 a metric ton for the April to September period down from $680 a year earlier, spokesman Kim Ki Young said. The lower price would result in a $100 million saving for Hyundai Heavy.
Hyundai Heavy has earlier said that it will buy twice as many steel plates this year from China due to lesser prices. Japanese companies supply about 1 million tons or one third of Hyundai Heavy's steel plate requirement per year.
Spokesman for Nippon Steel and Sumitomo Metal Industries Ltd declined to comment on the price cuts.
POSCO in New Caledonia nickel JV
POSCO and New Caledonia's Societe Miniere du Sud Pacifique SA signed a contract to set up a JV for nickel mining and refining. As announced in January, Posco will invest $352 million for the construction of a nickel refining plant in Gwangyang South Gyeongsang Province of South Korea while SMSP will provide mining rights for the nickel mining joint venture that will be established in New Caledonia. POSCO's executive VP Mr Kwon Young-tae and SMSP president Mr Andre Dang signed a memorandum of understanding yesterday at the steel makers headquarters in Seoul. POSCO will own a 49% stake in each of the joint ventures while SMSP will hold the remaining 51%.
Once mass production begins at the end of 2008, the refining plant is expected to produce 30,000 tons of nickel a year, all of which will go to POSCO's steel plant. The nickel mine in New Caledonia will provide the necessary quantity of nickel to the South Korean nickel refining plant for 30 years, according to the statement.
By finalizing the deal, Posco expects to strengthen its competitiveness in the stainless steel sector as nickel is a key material in the production of stainless steel, the steel maker said. Scheduled to complete a 600,000 ton stainless mill in Zhangjiagang on the eastern coast of China by July, POSCO expects to become one of the world's three major stainless. POSCO consumed 84,000 tons of nickel in 2005.
AK Steel to raise prices for stainless steel products
AK Steel announced that it will increase transaction prices for all hot rolled and cold rolled stainless steel sheet, strip and continuous mill plate products, effective with shipments on April 30.
Prices for hot-rolled and cold-rolled stainless steel sheet and strip will increase by approximately 6% percent, accomplished through a 2 percentage point reduction in the functional discount rate. Prices for stainless steel continuous mill plate products will increase by approximately 9%, accomplished through a 3 percentage point reduction in the functional discount rate.
Headquartered in Middletown, Ohio, AK Steel produces flat rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
Five rescued in coal mine flooding in Guizhou
Five miners who were trapped in a flooded coal mine in Southwest China's Guizhou Province have been rescued by Wednesday evening while two miners are still missing with slim chances of survival. Rescue workers managed to dig a tunnel to the shaft where the miners were trapped and reached the five miners.
The accident took place Tuesday morning at the Yalong Coal Mine in Shaying Township of Guanling County, in the mountainous southwestern area of Guizhou, trapping seventeen miners who were working underground. The cause of the flooding is under investigation.
The newly excavated mine, with an estimated annual production of 90,000 tons, has no safety license.
Daewoo building a steel plant at Karawang in Indonesia
Mr Loh Young Tae president PT International Steel Indonesia, a JV between Daewoo and a local Indonesian company, told that Daewoo is building a steel plant in Indonesia at a cost of US$10 million. Currently, we're constructing the factory on a site of 21,000 square meters in Karawang, West Java. Hopefully, it will be finished in June so that we can start operations in July of this year," said Mr Tae.
According to Mr Tae, having reached a deal with PT Krakatau Steel and Blue Scope Steel Indonesia for the supply of raw materials, the plant would have a production capacity of 240,000 tons of hot rolled coil, cold rolled coil, aluminum coil and color coated steel per year. "All our steel production will be sold on the local market" Mr Tae said.
PT International Steel Indonesia is 51% owned by Daewoo International, 40% by PT Selamat Sempurna of ADR Group and 9% by a technical partner from South Korea.
SDI to expand Columbia City operations
Steel Dynamics may invest $200 million in its Columbia City mill. The steel mill is investing $130 million on equipment and $70 million on a building. Construction is expected to be completed by the second half of 2007. The new mill will add 600,000 tons of capacity to the Columbia City operation and is expected to generate sales of about $330 million annually.
We havent made any formal announcement yet, but we are taking all the steps in anticipation that the project will go forward, said Mr Dick Teets VP & GM for Steel Dynamics Structural and Rail Division from Columbia City.
Grindrod buys stake in Maputo port
Shipping and logistics group Grindrod has acquired a 12.24% stake in the Mozambican port of Maputo for an undisclosed amount. Grindrod also plans to spend up to US$25 million to upgrade the Matola Coal Terminal facility that is part of the Maputo Port, which it also owns, the company announces.
Maputo Port, located approximately 500 kilometers from Johannesburg, has historically shipped up to 14 million tons of cargo per annum. The main commodities shipped through Maputo are coal, iron ore, fruit, ferro alloys, steel products, containers, cars and other related commodities.
The Maputo Port was concessioned in 2002 to a private consortium consisting of European majors including Mersey Docks, a well-known international port operator. Grindrod acquired its 12.24% share from the European shareholders, diluting their respective interests. The Port concession is for an initial 15 year period with a further 10 year optional period. The Mozambican government holds a 49% share in the Maputo Port Development company (the port concessionaire), the balance of 51% being held by the private consortium of which Grindrod is now part.
Grindrod CEO Mr Ivan Clark stated "The expansion into port operations and terminals is an exciting move for the Grindrod group. The Grindrod group has been positioning itself for concessioning of ports in Southern Africa for some time. The Maputo Port provides an immediate opportunity for Grindrod to participate in the development of a port with a natural hinterland and which is an integral part of Southern Africa's freight system."
EBRD approves $200 million loan to Mittal Steel Kryviy Rih
It is reported that the European Bank for Reconstruction and Development on April 4 approved a loan of $200 million for Mittal Steel Kryviy Rih.
Mr Anton Usov spokesman for the EBRD's operation in Ukraine said "This means the bank is prepared to finance the project. The next stage is to sign the loan agreement. Then all the details will be disclosed" Mr Usov said.
Mittal Steel Kryviy Rih had requested EBRD for credit of $200 million for a modernization program that will cost a total of about $500 million and plans to use the credit to optimize existing production capacity, increase productivity and energy efficiency and also to invest in the production of metal products with greater added value. The company also plans to spend money on environmental programs.
Japanese steel demand to drop in April to June quarter
Japanese demand of rolled steel products will decrease by 220,000 tonnes or 0.9% to 25.65 million tonnes for April to June quarter of 2006 over same period of 2005 as per an announcement from the Ministry of Economy, Trade and Industry on Thursday. The demand is 400,000 tonnes or 1.5% lower than in January to March quarter of 2006.
The shipment represents 27.75 million tonnes of raw steel output in April to June quarter of 2006, which is 290,000 tonnes or 1% lower than January to March quarter of 2006 and 1.22 million tonnes or 4.2% lower than April to June quarter of 2005.
China to close all small coal mines by 2007
China will close all small coal mines with annual production capacity under 30,000 tons by the end of 2007, the national coal mine safety authority said. At a video conference on work safety held Monday, Mr Zhao Tiechui, director of the State Administration of Coal Mine Safety, said China will step up rectification of the coal mining sector to improve work safety.
A relevant notice on the rectification has been circulated to local governments said Mr Zhao, adding that the rectification aims to encourage large coal mining firms to merge with smaller ones as giant ones usually pay more attention to work safety. The country will also complete its program to overhaul small sized coal mines which are more vulnerable to work safety accidents said Mr Zhao.
According to the notice, those coal mines without safe production conditions must be shut down immediately and exhausted coal mines with mature production licenses will be excluded from the rectification and integration drive, said the notice.
Mr Zhao urged the local governments to carry out the coal mine rectification step by step, so as to form a group of large coal mine producers in the country.
Vietnams SS makers ask for increase in import duty
It is reported that some Vietnamese steel firms have requested the Ministry of Finance for increase of import duties on steel citing reason that low duties lead to huge steel imports posing threat against domestic production and also complained that Vietnam has the lowest duties on some steel item among ASEAN countries.
A domestic SS producer has proposed to increase duty rate on stainless steel to 10% to 15% from existing 5%, citing that SS from India is being sold $50 to $60 cheaper and is flooding the domestic market.
According to the Ministry of Trade, domestic production of plated steel should be encouraged so it needed to be protected. After studying domestic production capacity, the Ministry of Industry requested the Ministry of Finance to increase the current rate to 10% to protect domestic stainless steel products.
Ferrexpo IT to build steel plant in Hungary with Vorsklasteel
Ukraine's Ferrexpo ITs deputy CEO Mr Konstantin Zhevago announced plans to build a Ft 75 billion (300 million) rolled steel plant in Szabolcs-Szatm-Bereg county in northeast Hungary. Ferrexpo plans to start building the plant in the second half of 2006 and start production by the end of 2008 or the beginning of 2009.
Mr Zhevago said Ferrexpo would set up a joint venture with Vorsklasteel, owned by English and Swiss investors, to build the factory which will have capacity to produce 2.5 million tons of rolled steel a year.
Hungarys Finance Minister Mr Jos Veres, who participated at the negotiations as the government's representative, said talks about the investment have been going on for a year, but have now entered the final phase, with a decision on the location for the plant expected to be reached soon. Ferrexpo will choose between four possible sites in the county.
West Hawk purchases additional 3.3 billion tons of thermal coal reserves
West Hawk Development Corp announced that it has acquired an additional 3.3 billion tons of thermal coal resources contained within 245,519 acres of contiguous coal holdings. The acquired property is known as the Fosheim Peninsula property on the east banks, and the May Point property on the west banks of Eureka Sound in the West Central region of Ellesmere Island Nunavut Territories.
"We are particularly enthusiastic about the latest acquisition due to the coal deposits close proximity to tide water, opening the potential for mine mouth direct ship loading, alleviating the cost of rail transportation. This low cost production will make us price competitive in the global market for seaborne coal" stated company CEO Mr Chris Verrico.
PSMC Privatization - Details of package for employees released
Mr Awais Ahmed Khan Leghari Federal Minister for Privatization & Investment and Information Technology said that the federal government would provide a financial package of Rs 15.64 billion for the Voluntary Separation Scheme to be offered to the 100% employees of the Pakistan Steel Mills Corporation. The PSMC would also contribute 1.5 billion separately to the employees package. Giving details of the Golden Handshake Scheme and the Voluntary Separation Scheme agreed in consultation with employees and officers of the PSMC, the minister said that workers opting for GHS are entitled to normal retirement benefits plus four basic salaries for each completed year of service, no age restriction is applicable.
Under the VSS, the officers below the age of 58 years will be entitled to normal retirement benefits plus two basic salaries for each completed year of service. Junior officers of PSMC will be offered VRS at 1+3 as a special package. Officers of the age of 58 years or above are entitled to 12 gross salaries or for the remaining period of service, whichever is less.
In case the authorities concerned decline the GHS package to any employee, the employee would get a service protection for up to five years or his retirement, whichever is earlier. In case the new management decides to terminate the services of the employee concerned before five years, the management will offer the same benefits as offered to the GHS/VSS recipients, except on disciplinary grounds.
The new buyer will not reduce the salary of any employee, the existing house rent of all the employees will be increased by 10% and limit of encashment of earned leave will be increased from 180 days to 240 days. Employees opting for the GHS/VSS will be allowed medical facility for a period of two years.
Zimbabwe worst destination for mining investors
A leading international research group, the Fraser Institute, has ranked Zimbabwe the worst destination for mining investors, following a survey of 164 countries that was carried out, even before Harare unveiled new plans to seize stake in foreign owned mining firms.
Zimbabwe, grappling a severe economic crisis critics blame on repression and wrong economic policies by President Mr Robert Mugabe, scored 2.4% out of a possible 100 on its mining policies.
The Canada based institute assesses risk in the mining industry in various countries across the globe, looking at factors such as economic stability and government controls in order to help international investors in the industry make informed decisions on where to place new investments.
Australian Royal Resources lists on ASX at premium
West Perth-based iron ore and gold explorer Royal Resources Ltd has made a smooth landing on the Australian Stock Exchange, debuting at a 25% premium after raising more than $4 million in its initial public offering. The funds from the IPO will go towards its various projects in Western Australia, divested from Thundellara Exploration.
According to Chairman Mr Rick Crabb the company had previously attempted to list on the ASX in 2004 as United Gold but was forced to withdraw the offering due to a downturn in the market. He said with iron ore, gold, nickel and copper prices all increased since then the time was right to consider a listing again.
The Pinyalling Hills iron ore project will receive the largest portion of the funds raised, accounting for about $791,000 in the first two years from the exploration budget. Royal said there is potential for both hematite and magnetite resources within a strike ranging in size from 15 to 20 kilometers. The Prairie Downs iron ore project, the Rothsay gold project and the fields base metal project will also be high priorities for the company.
Mittal Steel SA to meet Trade & Industry minister over domestic pricing
Mittal Steel SA CEO Mr Davinder Chugh said that they would soon meet with Minister of Trade and Industry Mr Mandisi Mpahlwa, to agree the way forward on domestic steel pricing. Mittal Steel SA and the department of trade and industry have been in talks over domestic steel pricing for about two years and this will be the first formal meeting between the company and the minister over the issue.
Mr Chugh said that Mittal Steel had taken control of ISCOR in mid 2004 and since then the company had not increased steel prices at all and had even reduced steel prices in February and August 2005 although there had been sharp increases in commodity prices and the company had embarked on several measures despite there be being no formal arrangement over domestic steel pricing. In principle, the company understood its social expectations Mr Chugh said.
Puda Coal announces coke supply contract with Baotou
Puda Coal Inc, a leading supplier of China's highest grade metallurgical coking coal announced that it has formally signed a new one year supply contract with existing customer Baotou Iron & Steel (Group) Company Ltd in China. Puda has begun providing Baotou with 58,000 tons per month. The annual contract quantity an increase of 575% over 103,708 tonnes delivered during 2005 to Baotou.
Puda's recent strategic decision to grow its coal cleaning capacity from 500,000 tonnes to 2.7 million MT by early 2006 was integral in securing supply contracts of this size, both from new customers and its existing customer base. "With our significantly expanded capacity, we can now market ourselves as a principal supplier to some of the largest steel manufacturers in the region, and indeed in all of China," said Puda CEO Mr Zhao Ming.
Puda Coal, through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently processes 1.5 million tons of coking coal annually, and management believes it is one of the largest coke coal cleaning companies in terms of capacity in Shanxi Province, China. Shanxi Province provides 20% to 25% of China's coal output and supplies nearly 50% of China's coke.
Ivanhoe eyes summer start up at Mongolia coal mine
Canadian Ivanhoe Mines Ltd plans to start production at its key Mongolian coal mine this summer if government permits are issued in time, Chairman and CEO Mr Robert Friedland told a conference in Shanghai. Ivanhoe, which aims to take its Mongolian coal assets public, already owns exploration rights to the area and will drill more over the summer in the hope of expanding its measured reserves from a current 123 million tons.
Mr Friedland said "We plan to begin production this summer. Mining licenses are now being submitted to the government of Mongolia. Work would not start until the licenses, which are valid for 60 years with potential for a 40 year extension, had been issued, Friedland told journalists on the conference sidelines.
The Nariin Sukhait mine will produce 1 million tons in the first year of operation, rising to 4 million tons by the eighth year, according to charts presented to the Coaltrans conference. But with an additional 33 million tons of inferred reserves at the site, and intermittent coal showings in exploration drillings covering a distance of some 90 km, eventual production could be far higher.
In addition to summer investigation around the Nariin Sukhait site, Ivanhoe also plans to explore wider areas of the Gobi desert, which Mongolian academics predict may have 150 billion tons of coal reserves that can be mined, Mr Friedland said.
LG to buy coal from Yakutia
Russia's economics and trade minister announced that Korean company LG is set to buy 10 million tons of coal a year from East Siberia. "Korea is ready to import about 10 million tons coal a year from Yakutia," Mr Gref said following a meeting with South Korea's Trade Minister Mr Kim Hyun-chong and businessmen.
Yakutia, also known as the Sakha Republic, is Russia's largest constituent region, and is rich in resources including coal and diamonds.
Bengang Steel Plates to Acquire Assets from Parent
Bengang Steel Plates Co Ltd. announced its plans to acquire the core steel business from its parent Benxi Iron & Steel (Group) Co Ltd as it seeks to ramp up and diversify production by issuing no more than 2 billion new A shares carrying a nominal value of around 1 yuan per share.
Bengang hopes to bring its pro forma steel output to 8.5 million tonnes in 2006. That is expected to rise to around 10.16 million tonnes and 12.35 million tonnes in 2007 and 2008 respectively.
Fortescue flags $90 million blowout in iron ore mine project
The cost of developing Fortescue Metals Group Ltd's flagship iron ore project in Western Australia's Pilbara region has been pushed higher by $90 million. Fortescue said the infrastructure side of the project will now cost $1.92 billion, up from an earlier estimate of $1.83 billion last year. The infrastructure estimate does not include the cost of mining the iron ore, with a separate study on the operational side of the project now being finalized.
The original $1.83 billion estimate, as part of the definitive feasibility study, was based on January 2005 prices and Fortescue said it was encouraged by the small size of the price increase. "This project escalation to the control estimate is considered to be very encouraging in view of higher escalation rates reported for a number of other resource projects."
Fortescue is working towards a start up date of the first quarter of 2008, at an initial production rate of 45 million tonnes a year exported through Port Hedland. It then plans to increase output to 60 million tonnes with studies already underway considering the expansion.
