July, 16 2006
Indias mineral policy aimed at scientific mining & JVs
The new national mineral policy 2006 is being drafted with an objective to create a balance & conserve environment and for extensive mineral wealth extraction with scientific techniques and would be tabled during the winter session of Parliament
Dr T Subbarami Reddy union minister of state for mines before inaugurating a seminar on Scientific and Sustainable Mining organized by the Indian Mines Bureau in Goa told reporters that the mineral policy, which is being reframed after 13 years, would be more entrepreneurs friendly and would invite modern techniques into mining at par with Canada and South Africa which will arrest environment degradation.
He said the policy would also enable participation of global mining players in the country through JVs. He said These joint ventures would be preferably with the Indian entrepreneurs.
Dr Reddy said that despite having vast mineral resources to the tune of 1.85 million square kilometer of mineral material, India had hardly exploited 5%. He informed that approximate mapping by the Geological Survey of India showed that India was rich in minerals having 22.108 billion tonnes of iron ore, 2.925 billion tonnes of bauxite, 0.178 billion tonne of chromate and combined reserves of manganese and limestone at 120 billion tonnes.
The Union minister added that growth of the Indian economy had to depend on the mineral industry.
SAIL to finalize strategic partner for cement JV at Bokaro
Cement major Jaypee group is reported to be leading the race to become the strategic partner for Steel Authority of Indias proposed cement plant at Bokaro among 6 to 7 contenders. As per reports the bids submitted by interested companies are under evaluation.
The cement venture will have a capacity of 2 million tonne per annum and SAIL will hold minority stake of 26% in the JV and balance will be with the strategic partner. SAILs Bokaro plant would supply blast furnace slag to JV and also arrange limestone.
Incidentally SAIL has identified Jaiprakash Associates Ltd as the strategic partner for setting up 2 million tonnes per annum slag based cement plant at its Bhilai Steel Plant and has issued a letter of intent in this regard to JAL on June 27, 2006. SAIL would hold minority stake of 26% with the remaining stake held by JAL. The plant would use slag generated at the blast furnace of its integrated steel plant at Bhilai. Further, the lime stone would be made available to the JV Company from the lime stone mine at Satna.
AITUC to back RINL for expansion and for captive mines
The All India Trade Union Congress has pledged its support to the capacity expansion project of the Visakhapatnam Steel Plant and promised to strive for securing captive iron ore mines for the plant. Mr Gurdas Das Gupta MP and general secretary of the AITUC while addressing the inaugural session of the 3 day national council meet of the AITUC in Visakhapatnam said "The AITUC will fully support the project. It will also strive for securing iron ore for the plant for capacity expansion to 15 million tonnes, as the CMD had sought."
Earlier, Mr Y. Sivasagara Rao CMD of RINL said that Visakhapatnam Steel Plant had overcome all obstacles and achieved a remarkable turnaround. He said "We are doubling the capacity at a cost of Rs 8,600 crore, to be met out of our internal resources, and we want to enhance it to 15 million tonnes ultimately. We have the infrastructure and other requirements. But we have a major constraint as we do not have captive iron ore mines. Our competitors in the private sector are getting the ore very cheaply and we are paying more than Rs 2,000 per tonne. We expect the support of Mr Das Gupta and others in our efforts to overcome the problem."
CPI (M) government in Kerala to cancel mineral mining licenses
Mr Elamara Karim industries minister of Keralas CPI (M) led government said that their government is against granting license to private companies for mineral sand mining in the state. He told reporters "Licenses to private companies were granted during the previous Congress led UDF rule and the same will be cancelled if they are found to be going against the principles of our government."
Mr Elamara Karim said that granting licenses to private entrepreneurs at Kayamkulam was the decision of the previous government and the LDF had nothing to do with it. The Minister said his government was in favor of allotting license only to public sector companies.
Chinese mills starting to feel the heat due to increased exports
China News has reported that China Iron and Steel Association held a special meeting to address the growing resistance to Chinese steel exports in several countries at Anshan Iron and Steel Group Corporation. CISA is attempting to find a solution to ease the international pressure on China's steel export.
Off late several antidumping investigations against Chinese steel products have been started, including Indonesian AD investigation of China's hot rolled steel plate and Thailands plan to start an AD investigation of the high carbon wires from China, India and South Africa. South Korea also came to negotiate with CISA to reduce the steel exports. US Steel makers are gathering support for taking trade measures and have sponsored a study called China Syndrome last week urging US government to examine if China has subsidized steel export and appeal to the WTO against China's violation of international trade regulations.
According to China Customs, China exported 4.43 million tons of steel in June, a 102% growth from last year, but the import was only 1.67 million tons, 33.46% lower than last year. China has exported 10.57 million tons of rolled steel and steel ingots from January to June 2006. That is 11.06 million tons if calculated as crude steel.
The international community reacted very strongly against the fast growth of China's steel export. TUSA wishes to start a second round of negotiations on steel trade this summer in Beijing. If it is proved that.
Bush plan targets Cuban nickel
The Bush administration vowed last week to crack down on nickel exports from Cuba alleging that the money from the sales is being diverted to maintain the regime's repressive security apparatus. President George W. Bush announced that he would go ahead with recommendations of a special government appointed group known as the Commission for Assistance for a Free Cuba.
The commission called for a range of policies aimed at strangling the regime of President Fidel Castro. The report specifically calls for a crackdown on nickel exports, which it says now account for nearly half of the regime's current foreign income. The report said that the revenue from these sales does not go to benefit the Cuban people, but is diverted to maintain the regime's repressive security apparatus and fund Castro's interventionist and destabilizing policies in other countries in the hemisphere. The commission went on to recommend establishment of an inter agency Cuban Nickel Targeting Task Force whose job it will be to reinvigorate the existing nickel import certification and control regime.
As at least half of Cubas Nickel exports are accounted for by Canada's Sherritt International Corp, Mr Ian Delaney Chairman of Sherritt immediately labeled the proposed actions as nothing new and said that the continuing US embargo on the Communist nation is simply nonsense.
Sherritt operates a JV with the Cuban government that last year produced 34,000 tonnes of nickel. An expansion of the facility at Moa Bay is under way, which is expected to increase output by about 50%. The nickel is produced as a concentrate in Cuba, shipped by sea to Halifax and by rail to Sherritt's refinery in Fort Saskatchewan, Alta., where it is refined into metal and then sold internationally, primarily in Europe. It is illegal to sell it to the United States, either in pure form or included in end products.
South Korean riot police storm POSCO HQ to remove blockade
South Korea media has reported that 7000 of South Korean riot police have stormed the 12 storey headquarters of POSCO to break up a blockade by about 1500 to 2000 striking construction since Thursday.
The police removed iron barricades at the gates of the site using fork lifts and cranes to barge their way into the building.
The workers belong to 70 small and medium sized companies and are asking for a 15% wage hike and better working conditions.
Perstima to double tin plate exports this year
Malaysian Tinplate producer Perusahaan Sadur Timah Malaysia (Perstima) Bhd is targeting to double its exports in the current financial year on the back of higher overseas demand and escalating steel prices. Mr Tan Sri Ab Rahman Omar chairman while speaking after the company AGM said that We are expecting exports to go up this year to 20% of production from the current 20,000-25,000 tonnes to 40,000-45,000 tonnes.
It is currently exporting tin mill products to countries such as Iran, Bangladesh and Sri Lanka. Mr Ab Rahman said that its customers were expected to increase orders now, in view of their depleting stock and anticipation of rising steel prices.
Perstima has an annual production capacity of between 200,000 and 240,000 tonnes per year.
Mittal Steel Anaba to get Iron Range ore
It is reported that 24,500 tons of iron ore from Mittal Steel US majority owned Hibbing Taconite is loaded onto the Bahamian ocean vessel Goviken at the Burlington Northern Santa Fe dock in Allouez in Superior for shipment to Mittal Steel Anaba in Algeria.
This is considered highly unusual and has not been done in past. China is among countries that previously have purchased Iron Range ore but shipping directly overseas to Algeria is a first. An iron industry analyst Mr Peter Kakela professor of Michigan State University said "I think it's a big deal."
Mr Dan Sydow manager of Fedmar International the Goviken's Duluth based vessel agent said that Mittal Steel is conducted an experiment to see the feasibility in terms of logistics and compatibility with Annaba blast furnace. Mr Sydow said that If the test proves successful, they're talking about a couple of shipments a month next year from BNSF.
Panama approves canal expansion
The Panamanian congress has formally approved a $5 billion plan to widen the Panama Canal, its biggest expansion since it opened in 1914 so that some modern wide ships can pass through the canal and the time of passing is reduced. Panama says the cost of the upgrades would be met from increased tolls, supplemented by a $2.3 billion loan. The project will now go to a binding referendum to be held later this year.
The 80 kilometer long Panama Canal, which was controlled by the United States until 1999, handles nearly 5% of global trade. But with wider locks and deeper and wider access canals it could take ships carrying up to 10,000 containers. The current locks are 33 meters wide, but the new locks would be 50 meters. A third lane of traffic would be able to handle the wider loads.
Opinion polls show that voters in Panama are in favor of the plan, but critics say the completed project will still not meet shipping needs. Opponents say that when the work is finished in 2014-15, the canal will still be inadequate. An alternative plan of new terminals at the Pacific and Atlantic ends of the canal to handle containers in transit is proposed.
Railroad to ship Wyoming coal expected to cost $6B to $7B
The Sioux Falls based Dakota, Minnesota and Eastern Railroad's project to ship Wyoming coal will require at least $3.5 billion in private funding on top of a $2.5 billion Federal Railroad Administration loan. Mr Kevin Schieffer DM&E President told the Plainsman newspaper of Huron "The project will attract and has attracted a huge amount of private financing." He did not disclose the source of the private money. DM&E Railroad is waiting for word from the FRA on the loan.
He said that major construction could start next year. Rebuilding the existing track in South Dakota and Minnesota and building 262 miles of new track to the coal fields in eastern Wyoming's Powder River Basin would take three construction seasons. Mr Schieffer said We're still on that track. I don't see any insurmountable obstacle to achieving that. Everything in the industry makes it more compelling for this to happen."
DM&E estimates it will need $2.4 billion to rebuild its own track. Another $3.5 billion or so would be needed to buy locomotives, rails cars and other equipment, and to fix up track not owned by the DM&E. A $100 million operations center would be built in Huron.
DM&E would become US's sixth Class I railroad when the project is completed.
Baosteel establishes 400 series SS in China
Chinese steel major Baosteel has increased production of 400 series stainless steel to more than 10,000 tons per month and has established 400 series products for application in automobile, railway and home applications and other fields.
Due to tight supply of nickel and surge in its prices Baosteel focused on developing and producing low nickel ferrite stainless steel and now ferrite 400 series stainless steel has become another famous brand of Baosteel.
PSMC Privatization Failure not to affect other process
Pakistans President General Pervez Musharraf has said that privatization forms a core of Pakistans economic strategy and an integral element of FDI, which along with exports and remittances helps balance out trade deficit. He underlined the importance of privatization in the countrys continued development.
He said that the Supreme Court verdict on Pakistan Steel Mills sale is independent and we must honor its observation and rectify. At the same time, the President expressed the hope that it would not affect the privatization process of the country as Pakistan wants greater inflow of investment into various sectors for its continued economic growth.
ACFTA to affect flat producers in Vietnam
Vietnamese sheet and plate producers will face major difficulties in the near future when Vietnam cuts the tariff on such products under the framework of the ASEAN China Free Trade Agreement. Mr Pham Chi Cuong chairman of Vietnam said that Vietnam began negotiating for ACFTA in 2003, when the tax rate on imported sheet and plate steel was 0%. At that time, Vietnam had to import all its sheet steel, as it could not be produced domestically. That was why Vietnam accepted imposing 0% on imported sheet and plate steel under the framework of ACFTA. However, the situation has changed since then, as sheet and plate steel can now be produced domestically.
In order to encourage investment in sheet steel projects, the Government has decided to raise import taxes on sheet steel to 7%, even though Vietnam had promised 0% on sheet steel sourced from ACFTA. The Phu My cold rolled steel mill has been operational since early 2006, and is expected to roll out 200,000 tonnes a year. Taiwanese firm SUNSCO will put its 200,000 tonne a year sheet steel mill into operation. The Can Tho based 120,000 tonne a year Ton Hoa Sen mill will also be operational at that time, raising the total capacity of sheet steel to 520,000 tonnes per year.
Mr Cuong said that the tax cuts will not affect producers of other kinds of steel. The current tax rate of 35% on construction steel will gradually reduce to 30% in 2006-2007, 25% in 2008, 20% in 2009, 15% in 2011, 10% in 2013 and 0% in 2015.Nevertheless, sheet and plate steel producers will suffer from the tax cuts, especially new comers.
Liugangs crude steel production up by 26.5% in H1
Chinese Liugang Group produced 2.482 million tonnes of hot metal, 2.574 million tonnes of steel and 2.683 million tonnes of finished steel during January to June 2006 recording increase of 28.5%, 26.5% and 42.5% respectively over production during January to June 2005.
The main business of Liugang contributed a sales income of 9.37 billion Yuan in the first half of 2006 up by 27.4% YOY and the company now targets at realizing a sales income of 20 billion in 2006.
EBS joins Cemec for deeper reach in Oman
Dubai Investments Industrys subsidiary Emirates Building Systems has appointed Cemec Trading & Services to market its range of construction and engineering products in Oman to further extend its role in Omans booming construction and real estate industry.
Mr Fouad Arwadi GM of sales said By appointing Cemec as our distributor in Oman, we will be better positioned to strengthen our market presence in the sultanate, which is witnessing significant developments in the construction sector. Over the years we have been involved in the construction of several landmark projects across the Middle East, and now we are glad to increase the availability of our high quality pre engineered metal and steel building structures in Oman through Cemec.
Cemec Trading & Services is engaged in the erection activities for warehouses, factories, showrooms and multi storied buildings in Oman.
EBS is a manufacturer and supplier of pre engineered metal and steel building structures for institutional, commercial and industrial sectors, with an annual production capacity of 50,000 tonnes.
POSCOs construction wing sets up subsidiary in Nigeria
The construction arm of POSCO, POSCO Engineering & Construction Co announced that it has established a wholly owned subsidiary in Nigeria as part of its efforts to make inroads into markets in Africa.
The builder said in a regulatory filing that it has a 100 percent stake in the Nigerian unit capitalized at US$2.5 million.
Hwange coal production improves
Zimbabwes Hwange Colliery Company announced that it's Chaba open cast mine has significantly improved its coal production over the past three months. Coal output from Chaba went up to 117,000 tonnes in June from 22,000 tonnes in April.
HCC said in an update to its customers that Chaba and the 3 Main underground mine were fully operational. Both should see improved production as two shuttle cars are delivered to the underground mine and 10 haulage trucks delivered to Chaba open cast mines during the months of July and August. HCC said that "Thereafter production is expected to increase to levels which exceed national demand."
Zimbabwe has been battling acute coal shortages forcing many companies to resort to imports from Botswana and South Africa. Power utility Zesa has complained that power generation had been heavily affected by inadequate coal supplies from HCC. Steel maker Zisco also recently said it was working at 50% capacity because of poor coal supplies.
Zuma Steel Mill resumes production
It is reported that Nigerian Zuma Steel has restarted production. Mr Innocent Ezumma chairman of the company said that his company had invested N1 billion to revive the steel mill and President Olusegun Obasanjo is likely to re commission the complex in Jos next week Friday.
Zuma Steel West Africa Limited had bought the former Jos Steel Rolling Mill as core investor for a fee of N800 million last year through a bid process conducted by the Bureau of Public Enterprises. They have embarked on the reconstruction, refurbishment and modernizations of the Zuma with the help of Ukrainian partners.
The mill has installed capacity of 210, 000 tons to produce long products. The new owners plan to increase the capacity to 410,000 as part of expansion plans in 2nd phase. Zuma is also planning a steel mill in Kogi State to tap from the huge iron ore deposits in the country.
Pingdingshan Tian'an Coalmine to launch Shanghai IPO
Pingdingshan Tian'an Coalmining, a subsidiary of the Henan-based Pingdingshan Coal Group, had its IPO application approved by the China Securities Regulatory Commission last week.
Tian'an announced that it plans to float new shares at a range between 130 million to 400 million but did not reveal how much capital it proposed to raise. All the new shares would be traded on the Shanghai Stock Exchange. The company is expected to release its prospectus next week with details of its operation and financial status.
Tian'an's parent Pingdingshan Coal Group produced 30 million tons of coal in 2005 with total sales revenues of RMB 9 billion.
Nizhniy Tagil launches new power substation
Evraz Groups Metallurgical Industrial Complex of Nizhniy Tagil JSC has recently launched the new power substation with the capacity of 13.5MW to distribute electricity for the companys by product plant of under construction Coke Ovens no 5.
The station is fitted with all the modern control and protection systems and is fully automated.
