SS Blue Ladys inspection report favors breaking at Alang

Although the final judgment from Indias Supreme Court is awaited on the fate of SS Blue Lady, Times of UK has reported that it is likely that SS Blue Lady would be allowed to be broken at Haryana Shipbreakers yard at Alang. Even Bangladesh, not known for environmental concerns has turned her away in recent past, which prompted the ship owners to find a soft spot at Indian shores despite the worldwide knowledge that it carries enormous amounts of deadly asbestos. Her scrap value is $12.3 million, according to Norwegian Cruise Lines accounts, which is less than the cost of asbestos decontamination

As per reports, The Times has seen the report submitted by the expert committee, which recommends that SS Blue Lady should be allowed to be tugged into the ship breaking yard at Alang. The report rules that the SS France is fit for dismantling, despite the presence of significant amounts of asbestos. It concludes: No other hazardous material of any kind or quantity was found that cannot be safely removed, handled and disposed of at Alang.

Greenpeace and another environmental pressure group Platform on Shipbreaking say that the decision, expected to be upheld by the Supreme Court, violates the UN Basle Convention and a 2003 law banning the import of asbestos waste to India. Activists say that the ship should be recalled for decontamination to Bremerhaven, Germany, from where she sailed last year, because she contains 1,200 tonnes of asbestos and would represent an environmental hazard if broken up in India.

Ship Decommissioning Industries in Paris in a letter had told the Indian Environment Minister Mr Pradipto Ghosh that it had identified other hazardous substances, including mercury compounds and heavy metals, when it inspected the ship in Germany before she was towed to Malaysia and to India. Mr Briac Beilvert, of the organization said We are convinced that a large pollution may result if the de pollution is not properly handled, jeopardizing human life.

A Greenpeace report in 2000 showed that workers at Alang were exposed to asbestos 24 hours a day. Deadly fibers were found not only at the yards, in the living quarters and in the waste dump, but also inside temples. Therefore claims by the expert committee that Alang is equipped to handle such large quantity of Asbestos appear difficult to be believed. If SS Blue lady is allowed to be broken at Alang, India would top the list as the global backyard for dumping toxic wastes.

TATA Steel charges Jharkhand for giving preference to multi nationals

It is reported that TATA Steel has charged Jharkhand government for according preference to much hyped investments by multi national companies without taking into account the contributions made by the century old TATA Steel for the state. In addition TATA Steel has already invested Rs 5000 crores in the ongoing 1.8 million tonne expansion program at Jamshedpur whereas multinational companies were still planning to invest in the state.

TATA Steel has expressed sever dissatisfaction over delays by Jharkhand government in allocation of iron ore mines and announcing R&R policy which would facilitate land acquisition by TATA Steel for its 12 million tonne Greenfield steel plant in Saraikela-Kharswan district at an investment of over Rs 50,000 crores. Although TATA Steel has completed all formalities like applying for land, water, electricity and allocation for iron ore mines lease, no action had been initiated by the Jharkhand government as yet.

Jharkhand organizes investor meet to make promises

Jharkhand has organized a 4 days investor meet at Ranchi to reassure investors of full support from the state government and have promised to provide the required infrastructure, including land and mines lease, needed to help translate their projects into reality. On the first day itself, investors were reassured that a rehabilitation and mines policy would be announced soon.

A senior state official told media At the meeting, we discussed the infrastructure, law and order situation and other issues which are stumbling blocks for the investors. The investors came out with their problems like getting iron ore mines lease, land and other infrastructure. We told the investors to prepare the Detailed Project Report of their projects and apply for the land and iron ore mines. The chief secretary assured the investors that land would be provided to them and suggested they apply to the Jharkhand Industrial Development Corporation. He also assured that a rehabilitation policy would be announced soon so that land acquisition can take place without protest.

The Jharkhand government has signed 45 MoUs with various companies in steel, mining, power and other sectors totaling to Rs 2 trillion worth investment in the state. The investors are unhappy with the several problems dogging their projects, including getting land, granting lease of iron ore mines, power and other matters.

Mr LN Mittals announcement of steel plant in Orissa has put Jharkhand government in top gear and this exercise seems to be emanating from the renewed strategy to retain investments in the state.

FICCI survey on core sectors growth prospects

According to the latest Core Sector Survey by Federation of Indian Chambers of Commerce and Industry coal, electric power, oil & gas, crude oil, steel and aluminium are the major core sector segments projected to record higher growth rate in the current financial year, as compared with the growth rate last fiscal.

The survey revealed the estimated growth of various sectors in 2006-07.

The survey confirms that in the coming years the core sectors can attain projected growth rates and may even record higher growth than projected, provided some of the basic issues pertaining to each individual sector are addressed.

The survey was based on responses from industry, allied industry organizations, associations, government and PSUs.

JSW Steels Jharkhand project going ahead

JSW Steel is determined to set up a 10 million ton steel plant in Jharkhand despite delays from state government in announcing R&R policy for land acquisition, giving iron ore mines and security threats from Maoist extremists. Dr BN Singh joint MD and CEO of JSW Steel along with Mr RP Singh CEO of JSWs Jharkhand Project and Mr RN Chowbey regional chief of JSW Steel met Jharkhands chief secretary Mr MK Mandal and discussed the progress of the proposed project from all corners.

Dr BN Singh told reporters The Company is ready to set up the plant near Chandil, as per the conditions of MoU that it signed with the Jharkhand in November, last year. We have applied for 9000 acres of land for our proposed steel plant, a captive power plant and an integrated township. The state government has issued a demand note for 750 acres of land and we will be going ahead with our project in three phases.

TATA Steel yet to apply for mines & land in Chhattisgarh

Mr Rajesh Munat industry minister of Jharkhand, in a reply to a question by Mr Ravindra Choubey in a session of Chhattisgarh assembly, informed that after announcing plans to set up a mega steel plant in Bastar, TATA Steel has neither applied for any mine nor has purchased any land.

TATA Steel and the state of Chattisgarh had signed a MoU on June 4th 2005 for setting up a steel plant at an investment of Rs 10,000 crore.

81 more coal blocks identified

Dr Dasari Narayana Rao minister of state for coal in a written reply in the Rajya Sabha informed that the Government have identified 81 coal blocks for allocation to Government companies and private sector in addition to 148 coal blocks identified earlier for captive mining.

The Coal Mines (Nationalization) Amendment Bill, 2000, which seeks to allow an Indian company to undertake coal mining without the present restriction of captive use, was introduced in the Rajya Sabha in April 2000.

Indian Railways NTPC JV awaits cabinet approval

Indian Railways has proposed setting up of 1,000 MW thermal power plant as a 51:49 JV with National Thermal Power Corporation for getting cheaper power for its traction. The project is termed as Bharatiya Rail Bijlee Company.

Mr R Velu minister of state for railways informed Lok Sabha last week that the cabinet note for this project has been sent to the Finance Ministry on May 19th by the power ministry.

SAIL board gets three directors

It is reported that Mr MY Khan former chairman JK Bank, Mr Shyamal Ghosh former secretary department of telecommunications and Mr SNPN Sinha former secretary department of fertilizers and secretary ministry of steel have been appointed by the president of India as directors of Steel Authority of India Limited for a period of three years in pursuance of article 71 (B) of articles of association of SAIL.

The appointments have been made after clearance from central cabinet and the PMO.

BHEL reports 80% increase in Q1s net profit

Bharat Heavy Electricals Ltd has announced unaudited financial results for April to June quarter.

BHEL has posted a net profit of Rs 2366.70 million for the quarter as compared to Rs 1278.70 million for April to June 2005-06. Total Income, net of excise, has increased from Rs 20296.60 million in Q1 of 2005-06 to Rs 27764.20 million for Q1 of 2006-07.

Hindalco-Essar coal JV MCC to start mine development by year end

Subsequent to getting coal block allocation from government, Mahan Coal Company, a 50:50 JV of Hindalco Industries and Essar Power, is likely to start coal mine development in December at the Mahan block of Sidhi-Singrauli fields in Madhya Pradesh. The development of the field is expected to be completed by 2009. After that, coal production will begin to fuel the proposed power plants of both Essar and Hindalco.

As per JV agreement, Essar will use 60% of the coal output and Hindalco will take the remaining 40%. The Mahan coal block has proven reserves of 150 million tonne of coal.

Essar Power is setting up a 1000MW power plant at an investment of Rs 4,000 crore and Hindalco is setting up a 750 MW captive power plant with an estimated investment of Rs 2,400 crore. Both the power plants are expected to start production by 2010. Essar is likely to trade the power whereas Hindlaco will feed its upcoming aluminium smelter.

Fortescue Metals Pilbara costs increase to A$3.7 billion

Fortescue Metals revealed on last Friday that its Pilbara iron ore development would cost A$3.7 billion to fund, which is double the A$1.85 billion estimate from a year ago and A$1 billion higher than the most recent estimate. Along with A$2.7 billion to cover the capital costs of building a mine, port and railway, Fortescue has been forced to raise A$1 billion to cover financing charges and potential cost blowouts.

Fortescue released a 375 page document designed to help it raise A$2.5 billion in debt from investors around the world. Fortescue along with Citigroup aims to raise the debt through road shows by the end of August. It is believed to be seeking a yield of about 9% on the senior secured notes.

Fortescue completed a $535 million equity and debt deal with the US investment company Leucadia National last week, after negotiations broke down with Hong Kong commodities trader Noble Group. The deal with Leucadia is contingent on Fortescue completing its debt financing by the end of the year.

CSC unveils strategies to stay ahead of competition from China

Taiwanese steel major China Steel Corp is forgoing size in favor of a shift toward higher grade products and partnerships with Taiwanese businesses in China. Key to its plans is the construction of the nation's second integrated steel mill through its 70% owned Dragon Steel Corp.

Mr Chen Yuan-cheng president of CSC told DJ in a recent interview that "Taiwan doesn't have many natural resources. We have to import iron ore, coal, everything. The reason China Steel has performed strongly is because we have extensive experience in steel mill management, we have good equipment, and we are efficient. But China will catch up on this. So we have to upgrade."

Mr Chen said that the Dragon Steel plant, which is expected to be completed in 2009, will produce high quality steel products.

Mr Chen said that to tackle the vast Chinese market, China Steel's strategy is to partner with other Taiwanese companies operating in China through either acquisitions or investments. Mr Chen said Taiwanese businesses in China are a great asset for us. They can mean an extension of our business world."

Shanxi coke producers suspend price hike due to steel decline

It is reported that Mr Zhang Gangfeng sectary general of Shanxi Coke Association while addressing 39 coke makers at a recent industry conference said that "In light of the latest price changes in domestic steel market, coke producers in Shanxi Province will suspend price hikes from August."

The declining steel price in China is an import contributing factor to the latest price-hike-suspending order. An analyst said that "If steel prices continue to slide amid the government's tightened macro control and the rising iron ore costs, coke demand from steelmakers will shrink further. This is definitely detrimental to coke industry in Shanxi Province. Therefore, both coke industry and steel industry should have their production capacities under well-measured control."

Shanxi Coke Group and Shanxi Coke Association also released a joint statement requesting all Shanxi based coke producers to practice strict industry discipline to secure the present price recovery achieved through previous production cut and price hikes.

SA NUM & BAMCW go on strike at Kumba

Kumba said in a statement issued late on Saturday trade union Solidarity had called off a strike by about 1,500 of its members at Kumba mines due to start on Sunday morning after the two reached an agreement over pay. Kumba said that it had offered a 7% across the board wage increase and an 8% wage increase for lower grade miners. It also offered to raise the housing allowance for all employees in the bargaining units by 10%.

Kumba said it had made the same offer to the National Union of Mineworkers and the Building Allied Mining Construction Workers Union. Some 4,000 NUM members and close to 500 from Bamcwu are due to strike from 1600 GMT on Sunday. Kumba said that these unions were consulting their members but at this stage still planned to press ahead with the industrial action.

Kumba has said that although the country's biggest Sishen iron ore mine could be affected although the company has contingency plans to mitigate the loss of output.

The National Union of Mineworkers said that its 4,000 workers would down tools as planned from Sunday at 1600 GMT but that members would consider a new offer from the company when they met on Monday.

JISF chairman warns Japanese steelmakers of take over threat

Mr Hajime Bada chairman of Japan Iron and Steel Federation during monthly press conference on last Friday warned that Japanese steel executives should prepare for potential mega funded hostile take over bids when Mittal Steel finished acquisition of Arcelor.

However, the president of JFE Steel said the Mittal Steel's move doesn't impact on Japanese steel makers when Japanese steels establish the positions as high valued steel suppliers in Asia.

Xstrata plans a 2 billion plus rights issue

Xstrata is planning a rights issue of up to 2.75bn to finance its acquisition of Falconbridge. The rights issue would be the biggest ever in London apart from BT's refinancing in 2001. Directors are confident that the issue will be fully supported by Credit Suisse, which holds 21.5% and Glencore International, which has a 14.3% stake. That will mean them subscribing about 1bn between them. JP Morgan Securities and Deutsche Bank will underwrite it.

The path was cleared for Xstrata's 10.8bn cash bid to succeed when Inco withdrew a rival offer on Friday. A majority of Falconbridge shareholders therefore rejected Inco's offer and are expected to accept Xstrata's cash only terms on August 18.

Xstrata had bought 20% of Falconbridge last August but Inco made an offer in last October and Xstrata gave a counter bid in May. Both groups have increased their offers since then. Inco's final terms exceeded Xstrata's and had the backing of the Falconbridge board, but the mix of shares and cash was complicated because Inco is itself the subject of a bid from Phelps Dodge of the US.

TMK to build a pipe plant in Venezuelan

Russian pipe major TMK announced that it might build a pipe plant in Venezuela with an eye on supplying Latin American and Caribbean markets. Mr Dmitry Pumpyansky the majority owner of TMK had met with Venezuelan President Mr Hugo Chavez last week during his visit to Russia and has signed a letter of intent with Venezuela's mining ministry on future cooperation.

TMK said in a statement "The signed agreement proposes the development of a project to build a seamless pipe plant in Venezuela's Bolivar region. The pipes would be supplied to Venezuela's oil and gas industry as well as other regions of Latin America and the Caribbean." TMK did not disclose any more details about the project.

TMK had produced 2.84 million tons of pipes in 2005 and accounted for 7% of the world's seamless steel pipes last year. TMK plans to invest $1.5 billion by 2010 in its 4 Russian and 2 Romanian plants in order to expand production.

Analysts predict tight iron ore scenario next year also

Analysts are predicting that Chinese steelmakers may again fail to prevent an increase in prices of iron ore next year as global demand outpaces production. Credit Suisse Group and Beijing Antaike Information Co are forecasting that prices may rise in 2007 for a third straight record.

Mr Rob Clifford of ABN Amro Holding Melbourne said "There is a struggle to bring on capacity, and miners have bottlenecks at the ports, rail and mines. Next year is going to be at least as tight as this year."

Ms Ma Haitian a steel analyst at Beijing Antaike a research affiliate of the China Nonferrous Metals Industry Association said "China's steel production will keep growing. China will probably increase crude steel production by 50-60 million tonne annually till 2008. That will translate into additional iron ore demand of 80 million tonne."

However Chinese steel mills dispute forecasts of rising steel output and iron ore demand. Mr Zou Jian chairman of the China Metallurgical and Mining Association said that ore demand will slow as steel production growth slows.

Baosteel signs agreement with Shenhua

It is reported that Baosteel has concluded framework agreement on strategic cooperation with Inner Mongolia based Shenhua Group.

Two sides have signed long term coal supply & purchase contract for jointly developing coal reserve. They also intend to explore more cooperative opportunities in fields like logistics, trading, technology exchange.

Both Baosteel and Shenhua are largest companies in China in steel and coal sector respectively.

Dragon Steel orders equipments for 2.5 million tonne steel plant

The Taiwanese steel producer Dragon Steel Corporation has awarded a series of orders for the design and supply of a new sinter plant, blast furnace and slab caster. These metallurgical facilities will be part of a new iron and steel works that will be built in the harbor area of Taichung. The start up of the works is scheduled for December 2009.

The sinter plant will be designed with a nominal production capacity of 7,440 tons of sinter per day. The plant will incorporate the latest sintering technologies including intensive mixing and granulation system, twin layer charging system and a selective waste gas recirculation system. A blast furnace with a hearth diameter of 12 meters and an inner volume 3,274 m3 will be setup for producing 2.5 million tons of hot metal per year. The 2 strand slab caster would produce 2.6 million tons of high quality slabs in thickness of 250 mm and in width range of 950mm to 1,680mm.

Dragon Steel Corporation is a 70% subsidiary company of China Steel Corporation, the largest steel producer in Taiwan. Dragon Steel currently produces approximately 800,000 tons of carbon-steel grades per year which are cast as billets, blooms or beam blanks followed by rolling into heavy sections.

Japans steel export drops by 0.8% in H1 of 2006

Japans ministry of finance last week announced that Japanese steel export decreased by 0.8% YOY to 16.963 million tonnes in January-June 2006 although the value of exports increased by 8.6% YOY to 1.628 trillion yen.

Japans import of steel decreased during H1 of 2006 by 25.3% YOY to 3.506 million tonnes and the import value decreased by 20.9% YOY to 340.558 billion yen.

VSA dismissed hike in rebar prices

The Viet Nam Steel Association has dismissed predictions that the price of construction steel would hit VND10 million per tonne in coming months saying that such claims were unfounded. Mr Nguyen Tien Nghi vice chairman of VSA said the price of construction steel would remain at around VND8 million per tonne for the rest of the year, citing abundant stockpiles on global markets.

There had been speculation that construction steel prices in Vietnam could hit VND9 million per tonne in September due to increase in prices of iron ore. But on the other hand the prices of billets fell to US$390 per tonne last week from $440 earlier in the month.

As per reports construction steel is now selling at VND7.8 to VND8.1 million per tonne at major trading outlets in Ha Noi.

Bangladeshs ship breaking industry under scanner

Bangladesh media has reported that at least 21 workers have been killed since January at the ship breaking yards located along the southern Bangladesh coast, near the harbors of the port city of Chittagong. The daily Bangladesh Observer added that accidents of relatively minor nature were a routine affair. This makes Bangladeshs ship breaking industry as one of the worlds most dangerous occupations.

Human rights activists put the blame on the absence of minimum safety measures and the lack of quick response to hazards. In the absence of dependable institutional support from any agency, the ship breaking workers are prey to exploitation by yard owners. Unskilled and under age workers are most vulnerable to the dangers of hammering iron plates, poisonous gases trapped inside a ships hull and leaping oxyacetylene flames. They also run the risk of exposure to radioactivity.

The report cited an official of Bangladeshs labor ministry as saying that Ship breaking is not officially recognized as an industry and so government focus is lacking.

The industry association in Bangladesh claims the ship breaking yards employ more than 1,000 workers and another 40,000 people are dependent indirectly on incomes from the yards.

South Korean STX planning a shipyard at Khan Hoa in Vietnam

South Korean STX Group plans to build a $500 million shipyard at Van Phong Economic Zone in the central coastal province of Khanh Hoa in Vietnam. The shipyard will be capable of building vessels displacing up to 400,000 DWT with an annual production output of about 1.6 million DWT.

Mr Nguyen Xuan Long director of the provinces Department of Planning and Investment said that the provincial Peoples Committee has proposed relevant authorities issue incentives to assist STX Group prepare the project adding that the local administration considers the development of the shipbuilding industry a top priority.

Khanh Hoa Province is home to the Southeast Asias largest ship repair facility, a joint venture between South Koreas Hyundai Group and the Viet Nam Shipbuilding Industry Corporation (Vinashin) capable of handling vessels displacing up to 100,000 DWT. Located in Ninh Phuoc Commune of Ninh Hoa District, the Hyundai-Vinashin Shipyard began operations in 1999.

Xinxing Pipe and McWane join to form JVs

Chinese Xinxing Pipe Steel and US based McWane have signed a LOI for strategic partnership for business of cast pipe, pipe fitting, drain pipe and valve. Both parties have agreed to restructure productive assets relating to business of cast pipe, pipe fitting and drain pipe and plan to set up several JVs accordingly. 70-75% of the JV's shares will be contributed by Xinxing Pipe in the form of cash and assets. Another 25-30% of the JV's shares will be provided by McWane in the form of cash. The total assets involved in amount up to 3.21 billion Yuan.

It is reported that the first stage project is designed with annual capacity of 1.2 million tons of cast pipe, 30 thousand tons of pipe fitting and 30 thousand tons of drain pipe. Along with the enlarged market and developing business, the JVs will shape an integrated capacity of 1.5 million tons of cast pipe, 50 thousand tons of pipe fitting, 50 thousand tons of drain pipe and 10 thousand tons of valve per year.

Global ranked 2 and Chinas largest cast pipe maker Xinxing Pipe Steel produces 1.1 million tons of centrifugal casting ductile iron pipes per year.

Birmingham Alabama based McWane had sales revenue of $ 1.7 billion in 2005.

PTCAlliance emerges from Chapter 11

PTCAlliance announced last week that it has completed the necessary steps to implement its Prepackaged Plan of Reorganization and has successfully emerged from Chapter 11. Under the Prepackaged Plan of Reorganization, PTCAlliance's senior lenders have exchanged their pre petition debt for all of the equity in the reorganized company. In addition, the company's senior lenders have agreed to provide PTCAlliance with a $70 million exit financing credit facility to fund the company's operations upon emergence from Chapter 11.

Mr Peter Whiting chairman and CEO of PTCAlliance said "This is an exciting day for PTCAlliance. Today we have officially completed our Chapter 11 restructuring. We emerge with a greatly de leveraged balance sheet and a capital structure that is more appropriate for the cyclical nature of our business. We also have significant cash resources to allow the company to make the necessary investments in developing and growing our business."

PTCAlliance Corp is a manufacturer and marketer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts and precision components and chrome plated steel bars. Major markets include steel service centers, automotive and truck, construction and agricultural equipment, machinery and appliances.

Evrazruda starts upgrading filters at Abagurskiy

Evraz Groups Evrazruda JSC has started upgrading its filtering equipment at the processing shop of Abagurskiy subsidiary in Novokuznetsk. The upgrading program involves gradual withdrawal of the obsolete DSH-68 suction filters and replacing them with the highly efficient DTBO-100 disk filters made by UralChimMash JSC of Yekaterinburg. The processing plant of the companys Abagurskiy subsidiary now has eleven suction filters, and they will soon be replaced by seven powerful disk ones.

The disk filters are capable of filtering 100 square meters of stuff and thus produce up to 1.6 tons per 1 square meter instead of the old figure of 0.8 tons. They would also reduce costs as lower moisture contents in the ore concentrate by 2% would mean a decrease in the amount of black oil used for drying the stuff in winter as well as lesser freight expenses.

SS pipe unit planned in Nigeria

Nigerian media has reported that a N500 million stainless steel pipe manufactures company Design Stainless Products Limited is likely to come up in Abuja. As per reports Design Stainless Products Limited has already secured a bank loan of $3million and Gambia Uniglobal Limited has already invested $900,000 in it.

Dr. Michael Abel Tariah chairman said that there are only 3 units of this type in whole of Africa. He said the company would basically manufacture stainless steel pipes which can be used for the manufacturing of Hospital equipments, trolleys, street lights and door frames among others.

CBH Resources to restart mining for zinc in NSW

Consolidated Broken Hill Resources is planning to spend up to $50 million to reopen a discarded zinc mine at Silver City in western NSW.
CBH Resources is close to completing its $15 million exploration project and is waiting for approval from the NSW Government after having completed environmental and feasibility studies.

Mr Bob Besley MD of CBH Resource said that the main body of zinc at the Rasp mine in the city's centre had never been tapped because it was of a grade which was previously too costly to extract. Mr Besley said "This is quite a different ore body, its lower grade but it's a simpler mining operation. It's considerably lower cost to mine than Broken Hill ore bodies were in the past."

Mr Besley said "We're looking at about 750,000 tonnes of zinc per annum from the underground mine up the decline and processed through a processing plant. Zinc, lead and silver are the three metals, but the dominant metal is zinc." Mr Besley said most of the zinc mined at Broken Hill would be exported to China and Japan.

Hillsborough Resources announces Quinsam North coal details

Vancouver based Hillsborough Resources has announced details for its Quinsam North underground thermal coal deposit just north of its existing Quinsam mine near Campbell River. It said that the measured and indicated resources are 25.2 million tonnes and inferred resources are 11.7 million tonnes of high volatile Grade A coal and that they will be incorporated into its long term plan for the Quinsam mine.

As per the company release, the coal resources at Quinsam North are contained within the Quinsam No 1 coal zone, which is within the Cumberland Member of the Comox Formation and is the zone currently being mined. The 43-101 report states that clean coal composites demonstrate excellent calorific values for thermal use. Raw coal composites have moderately low ash content at 14% to 20% on an air dried basis, with some strata having ash contents less than 10%, and float sink tests show that the coal washes well for ash reduction.

Ex CEO of Kremikovtzi buys auto part maker in Serbia

Mr Valentin Zahariev former CEO of Kremikovtzi announced that his Intertrust Company bought 80% of Zastava-Kovacnica plant at Kragujevac in Serbia for Euro 2 million in October 2005. Mr Zahariev said that old debts stood amounting to Euro 6 million to 7 million have been restructured and serviced regularly and Intertrust plans to invest Euro 3 million in Zastava-Kovacnica over the next 3 years.

Zastava Kovacnica manufactures forged products for the auto and defense industries. The Serbian plant manufactures items for German and US auto makers as well as for the truck, bus and tractor industries. Annual output capacity is 15 million items.

Intertrust also operates a galvanized sheet steel factory in Kosovo, a 120,000 tons of ERW and seamless pipes at its Inter Pipe plant located on the Kremikovtzi site, copper and zinc factory OCK in Kardjali, ore dressing plant Gorubso-Madan and ore dressing plant Gorubso-Rudozem.

Rolling mills in Pakistan hit by low demand

Business Recorder has reported that 10 recently established small and medium steel rolling units, with an aggregate investment of around Rs 640 million, have stopped production due to dormant construction activities across Pakistan. The reports said "Some units have halted their construction work while others have stopped production for the last two months."

As per reports the owners of some units had been compelled to sell their units as these had been set up to cater to the local needs when the government had decided to start its mega projects, including big dams and water reservoirs, which have not yet been initiated.

Pakistans PM Mr Shaukat Aziz in a meeting with the re rolling mills in 2005 had stressed the need for establishing new rolling units, hinting that the mega development projects, including water reservoirs, would be initiated, where huge quantities of steel would be required. Following the meeting, the steel mills had started work on expansion of the existing units, or erecting new ones, with an aggregate investment of around Rs 640 million.

An owner of a rolling mill said that the government should discourage steel imports and increase duty on steel import, so that the local industry could flourish. He said "The importers are now bringing in finished goods rather than raw material, which has put a negative impact on the local steel producers as they have not been price and quality competitive.

Construction accident kills 2 at North American Stainless

Two construction workers died Friday when they fell about 80 feet to the ground from a roof they were working on at North American Stainless in Carroll County. As per reports both men were wearing safety harnesses when the panel gave way but it appears that their harnesses were not fastened to a line designed to keep them from falling.

State OSHA officials and the Carroll County Coroners Office are investigating the work related deaths.

The two men worked for United Group Services Inc. Cincinnati-based United Group Services is a mechanical contractor for North American Stainless and other industrial and manufacturing customers.