Merchant banker to be appointed for NINL - SAIL merger

A merchant banker will be appointed for the valuation of Nilanchal Ispat Nigam Ltd for its proposed merger with SAIL. Dr Akhilesh Das minister of state for steel informed Lok Sabha that "In the meeting of Committee of Secretaries held in July last year, it was decided to merge NINL with SAIL. The process of appointment for merchant banker for the valuation of NINL is in progress.

Dr Akhilesh Das also informed that the boards of Maharashtra Elektrosmelt Ltd and Bharat Refractories Ltd have also accorded in principle approval for their merger with SAIL.

CCCMCs reference prices for Indian iron ore Imports

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released on November 27th 2006 the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week:

The change is with respect to reference prices posted on November 20th 2006.

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material.

(Sourced from Mysteel.net)

Arcelor Mittal rejects offer of Ankura iron ore mines in Jharkhand

Indo Asian News Service has reported that Arcelor Mittal has not taken the offer for allocating alternate Ankura iron ore mines in lieu of Chiria mines, made by Mr Madhu Koda chief minister of Jharkhand, saying that Ankura mines do not fulfill their needs.

IANS has reported that Mr Sanjeev Sengupta of Mittal Steel Jharkhand was quoted as saying by local dailies that "The Ankura mines will not fulfill our needs. We want mechanized mining which is not possible in that mine. We had visited the Ankura mines along with experts, but it is of no use to us.

Mittal Steel wants 600 million tonnes iron ore for 30 years from Chiria mines but with this announcement the state government has clearly expressed inability to allot the Chiria mines to them as they belong to SAIL for decades and the dispute created by the previous government is almost resolved.

MoU for pre shipment inspection of iron ore to China

It is reported that after the visit of Chinese president Mr Hu Jintao to India recently, for streamlining system of iron ore exports to China, a MoU was signed for inspection of export cargo of iron ore at Indian shores.

As per the MoU, all export consignments of iron ore from India will now be inspected at ports here and documents will be made available to Chinese authorities so that export consignments are not delayed. The MoU will also prevent wrong classification of iron ore for exports.

CIL outlines growing needs of mining equipments in India

Coal India Limited has called the Indian & overseas manufacturers of mining equipments to step up their operations to cater to the growing needs of Indian mining Industry at competitive prices.

Mr PS Bhattacharjee CMD of CIL while addressing the 8th India Mining Summit last week urged leading domestic and international mining equipment and machinery manufacturers to play a major role to satisfy the growing requirement of such machines and equipment in the Indian coal and mineral mining sectors. He said that CIL itself would require a large number of dumper, shovels, heavy duty trucks and other equipment in the next 10 years for new mines as well as for replacement, he said.

He also asked manufacturers & suppliers to keep the prices of their machines and equipment at reasonable levels so that CIL could maintain production at competitive costs as CIL is operating in a global environment and the coal produced by it should be competitive.

No proposal for foreign mining company under consideration

Mr Sis Ram Ola minister of mines in a written reply to Mr Tarini Kanta Roy in the Rajya Sabha confirmed that no proposal for handing over some mines to foreign companies is under consideration of the Government.

He said that under Section 5(1) of Mines and Minerals (Development and Regulation) Act, 1957, only an Indian national or a company registered in India under Section 3(1) of the Companies Act of 1956 can be granted a mining lease.

BEML to set up more manufacturing units overseas

After initiating its Brazilian JV with Compagnie Comercio E Construcoes for manufacturing and supply of rail wagons & bogies and mining & construction equipment & spares, Bharat Earth Movers Limited is considering setting up more manufacturing facilities in Australia, Southeast Asia and Africa through acquisitions or JV with local partners.

Mr VRS Natarajan CMD of BEML on the sidelines of the India Mining Summit recently said that after Brazil, BEML has short listed Indonesia, North Africa and Australia for overseas expansion. He said that We shall start with warehousing facilities there followed by manufacturing. We hope that something will materialize in 2007-08.

Mr Natarajan informed that BEML is in the process to appoint two international consultants for preparing the project report and due diligence for the Brazil project. He said We want to carry out financial and legal due diligence before starting operations there. BEML expects the JV in Brazil to start production in the second quarter of 2007-08.

SAIL to take stake in coking coal mines overseas

Dr Akhilesh Das minister of state for steel in a written reply to Mr Hansraj G Ahir in the Lok Sabha informed that for establishing long term security in the sourcing of coking coal, Steel Authority of India Limited has plans to acquire equity stakes in overseas mines and is currently exploring the possibilities of forging strategic alliances with overseas coal mining companies.

Dr Das informed that some proposals are currently under consideration and examination for their suitability but no equity stake has been taken in any overseas mine as yet.

NTPC to set up power plant in Sri Lanka

With reference to the news item appearing in leading portal titled "NTPC overtake Infosys in terms of Market Cap, says may invest $500 Mn in Sri Lanka plant", National Thermal Power Corporation Ltd has clarified to BSE that the Company has been discussing with Government of Sri Lanka since the year 2005 a proposal for putting up of a power plant in that country.

NTPC said that in line with its expansion plans the Company has decided to submit a proposal to the Government of Sri Lanka to set up a 900 MW Coal / LNG based power plant in Sri Lanka. The proposal is still under discussion and the Company is likely to sign a Memorandum of Agreement with the Government of Sri Lanka shortly.

NTPC had earlier announced on June 27, 2005 that it will submit a proposal to the Government of Srilanka to set up a 900 MW Coal/LNG based Power Project in Srilanka on Build, Own, Operate or Build, Own, Operate and Transfer basis.

BHEL to set up captive power plant for HZL

Bharat Heavy Electrical Limited announced that it has bagged a INR 1290 million captive power plant project from Hindustan Zinc Ltd which would cater to requirements of HZL's unit at Jawar mines at Udaipur in Rajasthan.

BHEL said that the project entails design, engineering, manufacture, supply, installation, testing and commissioning of the plant.

BHEL had earlier executed a turnkey order for two units of 77 MW each at HZL's captive power plant at Chanderia lead zinc smelter plant at Chittorgarh in Rajasthan. It is also executing another order from HZL for one unit of 80 MW at the same plant.

Hoda recommendations on mining sector under consideration

Indian Government is considering the Hoda Panel report on attracting private investment in the mines sector. Mr Sis Ram Ola minister for mines said in a written reply to the Rajya Sabha said that the committee has submitted its report to the Central government and it is under consideration.

The Hoda Panel was constituted to review the amendments in the Mines and Minerals (Development & Regulation) Act of 1957 to give a fillip to private investments in the sector.

Corus postpones EGM to 20th December to allow CSN to make counter bid

Corus announced that its extraordinary general meeting due to take place on December 4th has been postponed until December 20th to allow Companhia Siderurgica Nacional more time to consider a counter bid to TATA Steels offer.

Corus said The board has decided that it is in the best interests of Corus shareholders to allow CSN some additional time to satisfy its preconditions and to determine whether it will put forward a formal offer.

The shareholders of Anglo-Dutch Corus had been due to vote on a bid by TATA Steel on December 4th but TATA Steel's bid for Corus has been topped by a conditional counter offer from CSN. CSN has offered 475 pence per share for Corus, 20 pence per share more than TATA Steel.

Analysts said TATA Steel was likely to wait for CSN's formal bid before making an announcement but it could win a takeover battle if it matched the Brazilian firm's bid, as Corus management had approved its offer last month.

NLMK and Duferco JV finalized

Novolipetsk Steel and Duferco Group have reached a definitive agreement to create a joint venture company to acquire certain steel production and distribution facilities currently owned by Duferco in Europe and USA. The parties expect to complete the transaction by the end of this year.

The principal terms of the transaction are

NLMK and Duferco will form a joint venture through Steel Invest & Finance SA (Luxembourg) in which they both will hold a 50% interest. NLMK will acquire its 50% interest for approximately $805 million, subject to a purchase price adjustment based on the results of the audited financial statements of the joint venture group for the fiscal year ended 30 September, 2006. NLMK will finance the transaction out of existing cash funds.

The joint venture will hold 100% or in cases where there is an existing minority party majority interests in 22 companies currently owned by Duferco. This includes one steel making plant and five steel rolling facilities with total finished steel output of 4.5 million tonnes in 2006 as well as a network of steel service centers.

The joint venture companies will be managed by Duferco, subject to a shareholders agreement between the parties. Duferco management will remain responsible for operational, financial and technical issues as well as relations with employees, trade unions and local communities.

The parties have agreed to embark on an ambitious technical upgrade and expansion program for the joint venture companies providing for total investments of approximately EUR 375 million. The program which will be overseen by Duferco management will draw on the financial support and expertise of NLMK and is intended to boost production while increasing supply of semi-finished steel products from NLMK.

The transaction agreements provide for put option arrangements for each party in the event of future major corporate events, including future disagreements.

The parties received clearance for the transaction from the European Commission on 20 November, 2006. The Hart-Scott-Rodino1 waiting period expired on 6 November, 2006 completing the process of obtaining US antitrust clearances for the transaction.

Mr Vladimir Lisin chairman of the NLMK Board of Directors said This transaction is another step of NLMKs strategy of developing high value-added product portfolio while enhancing its presence in the international markets. The creation of the joint venture will allow maximum utilization of NLMKs core competitive advantage in low cost steel production and will ensure sustainable growth of the companys earnings. Continued Duferco management will ensure smooth implementation of the joint venture business plan and quick ramp-up of synergies. We are confident that NLMK and Duferco will develop a value-creating partnership bringing strong benefits to all their shareholders.

Mr Bruno Bolfo chairman of the Duferco Board of Directors, said We welcome the creation of a joint venture with NLMK, a lowest cost Russian-based steel producer, representing an opportunity to increase capacity and production of high value-added steel products by the joint venture companies. The Duferco-NLMK partnership is an excellent example of the global steel industry consolidation. The joint venture transforms successful long-term business cooperation into a solid partnership with high growth potential. The joint venture companies and their employees will fully benefit from a tie-up with one of the most efficient steel producers in the world.

Global steel sector consolidation only way to sustain Mr LN Mittal

Mr LN Mittal president and CEO of Arcelor Mittal, who has led the sector's consolidation by snapping up rival firms, said that the global steel industry still needs to consolidate further to improve pricing power and keep an eye on China's increasing influence in the sector and that consolidation is the only way forward for the highly fragmented steel industry to survive and sustain profitability.

Mr LN Mittal at the annual conference of the Confederation of British Industry said "The industry needs to go much further than what we've achieved so far. Although since 2001 there has been very good progress in terms of consolidation, we have seen a lot of mergers and acquisitions taking place in regions but this is not enough. We think the industry should continue to move forward. Since we've moved forward, the industry has become healthier, stronger and more sustainable."

Mr Mittal said "China is coming in as a new consumer and new producer, and we need further consolidation first on a global basis. He said that China will play a crucial role in the next wave of consolidation, which should create 'global players' producing 100 million tonnes of steel or more.

He added that "When our supply base is consolidating, our customer base is consolidating it's very important that the steel industry also consolidates and becomes a global player. The industry, which has been suffering from falling steel prices and a supply glut, has to consolidate much further than it has achieved so far.

Another coal mine accident in China kills 24 miners

Xinhua has reported another coal mine explosion, the third in two days, in which 24 miners have been killed. It reported that the Sunday night explosion was triggered by a gas buildup in mine in northern China and that the mine had been operating without a license.

Rescuers had found all the dead bodies and wrapped up rescue work on Monday morning. The accident occurred at around 6:40PM at Luweitan Colliery in Yaodu district in the city of Linfen.

Investigators said a power failure earlier Sunday afternoon had caused a breakdown of the ventilation system in the pit.

Luweitan colliery is designed to produce 150,000 tons a year, but its production permit and safety license have both expired.

Xinxing Pipes acquires Xinjiang Jintehegang Steel

Xinxing Ductile Iron Pipes Group has recently signed the contract for acquiring Xinjiang Jintehegang Steel, according to company official. The latter is based in northwestern China's Xinjiang Uyghur Autonomous Region.

The steelmaker is looking to boost its capacity to 1 million tonnes per year by the end of 2010 with the investment of about RMB 600 million to RMB 800 million from Xinxing Ductile Iron Pipes. Both parties are holding talks regarding details of the expansion project.

Xinjiang Jintehegang Steel currently has an iron making capacity of around 300,000 tonnes per annum and matching crude steel capacity. Its rebar and wire rod capacities combine to reach 500,000 tonnes per year, though its production is only around 300,000 tonnes per year at present. All its finished products are sold domestically.

Xinxing is China's largest ductile iron pipe producer, located in central China's Hubei province. It had a production of around 800,000 tonne per year of ductile iron pipes and 30,000 tonnes per year of pipe fittings last year. It also makes 1.2 million tonne per year of rebar and round bar, and 30,000 tonnes per year of plate.

(Sourced from Mysteel.net)

Chinese MCC bids for Ziscosteel Report

Zimbabwes Herald newspaper citing Mr Christopher Mutsvangwa Zimbabwe's Ambassador to China has reported that Metallurgical Corporation of China has offered N$3 billion for a 60% stake in Zimbabwe's struggling state owned steel firm Zimbabwe Iron and Steel Company was now waiting for a response from Harare.

Mr Mutsvangwa was quoted as saying "MCC applied for a 60% stake in Ziscosteel after a meeting which was held between MCC officials and our government. If the government approves the deal, which I think it will, Zisco will regain its status as the biggest steel manufacturer in Africa south of the Sahara.

Zimbabwe government is battling to keep Ziscosteel from collapsing after years of mismanagement. Ziscosteel was the country's main foreign currency earner before independence from Britain in 1980, but output has sharply fallen to just 78,000 tonnes of steel annually because its main furnace has been derelict for years.

CSN welcomes postponement of Corus EGM

Brazilian steel maker CSN welcomed Corus' decision to postpone its EGM and court meeting saying that it was a prudent move. CSN launched a counter offer to take over Corus on November 17th and is studying the books of Corus.

A CSN spokesperson told media that giving the company more time, is probably prudent. He reiterated that CSN intends to make a formal bid and it would complete the due diligence process as quickly as possible." He added that "The due diligence is still underway.

Rios Mount Pleasant project enters next phase

Rio Tintos 75.7% owned subsidiary, Coal & Allied Industries Limited, has confirmed its long term commitment to its 100% owned Mount Pleasant project in the Hunter Valley of New South Wales with the commencement of a feasibility study into the projects potential development.

Mr Douglas Ritchie MD of Coal & Allied said that the feasibility study is expected to take approximately 12 months to complete. Mr Ritchie said Coal & Allied would undertake extensive community consultation as part of the feasibility study. He said We have a long history in the Hunter Valley and we will continue to work with the community to understand and manage our impacts and to implement programs which make a positive contribution, both in the short and long term, he said.

He said As part of our ongoing focus on sustainable development, all aspects of the proposed operation would be considered to maximize energy efficiency, manage water use and reduce impacts on our neighbors.

Mr Ritchie said that a final decision was yet to be made on the future development of the operation. He said The coal industry has a significant long-term role to play in the Hunter and this project has been part of Coal & Allieds development portfolio for many years.

ThyssenKrupp Stainless open service centre in Birmingham

ThyssenKrupp Stainless AG has officially opened a service center at Birmingham in UK which will add new processing capacities and a large storage facility to the company's existing sales organization. From here ThyssenKrupp Stainless UK, a subsidiary of ThyssenKrupp Stainless International GmbH, will serve the increasingly important British market for stainless flat products.

ThyssenKrupp Stainless UK processes and sells the full range of ThyssenKrupp Stainless products. Alongside a cut to length line, the center features a modern line for the production of polished and brushed finishes.

Dr Jrgen Fechter CEO of ThyssenKrupp Stainless AG at the inauguration of the service center in Birmingham said "We aim to be more than just a material supplier. We aim to be a true service provider. That means delivering solutions for a wide range of applications, offering product support services, and operating as close to our customers as possible by constantly expanding and optimizing our worldwide sales and service center network.

ThyssenKrupp Stainless International (Krefeld) supports the direct sales of the ThyssenKrupp Nirosta plants in Germany and ThyssenKrupp Acciai Speciali Terni in Italy. It sells around 850,000 tonnes of material each year worldwide. ThyssenKrupp Stainless International currently has service centers in the United Kingdom, France, Spain, Poland, Hungary and Turkey, a sales company in the Benelux countries and a storage center with processing facilities in southern China.

Arcelor China deal in doubt

Arcelors bid for a major stake in China's Laiwu Steel Corp may be blocked by the government over concerns raised by its merger with Mittal Steel. Interfax news service reported that the deal is likely to be quashed by the Chinese government because of fears it would threaten domestic mills.

Interfax said the deal might have gone through already if the talks between Arcelor and Laiwu had ended well before the Mittal merger, citing an unnamed source at Arcelor. The report mentions that even though the deal has yet to be blocked by the government, Arcelor has already pulled out its 6 member team from working with Laiwu Steel.

An official at Laiwu Steel said the transaction is still in the approval pipeline, and the company hopes it will be wrapped up soon.

Monique Vanvi VP for Arcelor China told Shanghai Daily "I haven't heard this; we are still waiting for approvals. We are still confident. We will give a quick response to any government inquiries regarding the bid."

Arcelor in February 2006 agreed to buy a 38.41% stake in Laiwu Steel from its state parent for RMB 2.09 billion ($266.2 million). However, the National Development and Reform Commission (NDRC), the country's industrial watchdog and policymaker, has not yet approved the deal nearly ten months after it was inked.

Mittal Steel earlier bought 36.67% of Shenzhen listed Hunan Valin Steel Tube & Wire Co for $338 million, its first acquisition in China.

Construction to start for Baosteel-CVRDs palletizing plant in Zhanjiang

Brazil mining giant CVRD and Baosteel co funded palletizing plant is soon to start construction in Zhanjiang in China's Guangdong Province.

With registered capital of RMB 2 billion, the plant is located in economic development experimental zone of Donghai Island, near the under-plan Zhanjiang steel production base.

At China international steel and raw material conference held in Qingdao last month, CVRD disclosed this plan of building a palletizing plant with Baosteel.

This cooperation reflects determination of the Brazilian ore giant and Baosteel to expand production scale in China, and on the other hand, will support and help improve the planned steel base in South China.

The under plan Zhanjiang steel base, signed by Baosteel and Shaoguan Steel, will be injected fund of RMB 140 billion for a total capacity of 20 million tonnes, first phase project will involve RMB 70 billion and 10 million tonnes steel capacity.

(Sourced from Mysteel.net)

CVRD submits report on coal mining in Moatize in Mozambique

According to the Mozambican News Agency Companhia Vale do Rio Doce has completed a viability study on coal mining in Mozambiques western province of Tete, and has handed over to the ministry of mineral resources last week. The Mozambican government now has two months to analyze the viability study and make suggestions about the mining project.

A CVRD official is optimistic that CVRD exploitation of the Moatize coal would go ahead. She said "We expect the government to take the decision to advance with the project which will bring gains not only to Moatize, but to the country as a whole. We believe that the exploitation of the coal will be undertaken in a sustainable manner.

The Moatize basin is believed to contain at least 2.4 billion tonnes of coal. CVRD won the tender for the Moatize concession in November 2004, and has since then, been undertaking a detailed study of the Moatize basin at a cost of $ 30 million. CVRD hopes for a total marketable coal production of 14 million to 15 million tonnes a year.

BHPB to market Qascos HBI from Mesaieed

Industries Qatars affiliate Qatar Steel Company has signed an agreement with BHP Billiton Marketing Singapore to market more than 350,000 tonnes per year of hot briquetted iron. The marketing agreement will take effect next year and provide BHP Billiton with the exclusive rights to market Qasco HBI in some Asian markets.

A Qasco spokesman said here that HBI would be produced from its newly built 1.5 million tonnes per year DRI plant at Mesaieed from the first quarter of 2007.

RUSAL seeks clearance for merger with SUAL & Glencore

Interfax citing a source familiar with the deal has reported that Russian Aluminum has applied to the European Commission and the Ukrainian Antimonopoly Committee for approval of a deal to merge with SUAL and Glencore.

The report mentions that RUSAL submitted documents to the European Commission, the Ukrainian Antimonopoly Committee and Russian Federal Antimonopoly Service at the same time.

RUSAL owns 56.2% of Italian alumina plant EurAllumina while Glencore owns the remaining 43.8%. In Ukraine RUSAL owns Nikolaev Alumina Plant and SUAL owns Zaporizhzhia Aluminum Plant.

Corus pension trustees to meet CSN this week reports

Business Standard has reported that Corus Groups pension trustees are expected to meet representatives of Companhia Siderurgica Nacional this week to understand its commitment to the workers' pension.

The report mentions bankers close to the situation as saying that the meeting is significant because the backing of the pension trustees is crucial to the ultimate outcome of the takeover.

TATA Steel has, in addition to 455 pence per share, offered to pay upfront the deficit on the Corus Engineering Steel Pension Scheme with $241.22 million to increase the contribution rate to the British Steel Pension Scheme from 10% to 12% until March 31, 2009.

As per reports, Corus has about three pension schemes with above $19.3 billion of assets to cover payments for its 47,000 workforce and many more retired workers.

BHPB acknowledges Cole Commission's report

Mr Chip Goodyear CEO of BHP Billiton acknowledged the release of Commissioner Coles report from the Australian Governments Inquiry into the UN Oil for Food Program.

Mr Goodyear said "In February, I committed to investigating all the facts and publicly releasing our findings from this review. Now that the Commission has released its report, we will analyze the contents and finalize our own report as soon as possible. Until we are able to complete a thorough review of the Commissions findings, we will not be able to make any further comment.

Mr Goodyear will host a media conference to summaries BHP Billiton's findings and answer questions in relation to the Commissions report.

TMK wins Silver Tuning Fork 2006 prize

TMK has won the Silver Tuning Fork 2006 national prize in the category of Best PR Project. The company presented a project at the contest that represents a set of informational events to promote and popularize the TMK Strategic Investment Program in the external and intra-corporate environments.

The Silver Tuning Fork Prize is awarded in 7 categories Best PR Project, Best Intra-Corporate PR Project, Creative PR Campaign, Effective Feedback, High Social Responsibility, Best Internet Website and Best Corporate Publication.

The winners and diploma recipients of the prize are determined by the Expert Council. The Expert Council consists of representatives of leading Russian PR agencies and media outlets; authoritative specialists in the field of public relations, information activities and related industries; and members of the Silver Tuning Fork PR club.

The Silver Tuning Fork national prize is a professional contest of PR and press services of companies and organizations and has been held since 2004. The prize was founded by the organizational committee of the PRESSA international professional exhibition.

Slovenian Steel Group's profits dip by 33.9% in 9 months

The Slovenian Steel group has posted SIT 3.7 billion (EUR 15.5 million) in net profits in the first nine months of 2006 down by 33.9% YoY over the same period last year when profit stood at SIT 5.6 billion (EUR 23.4 million). However, the company increased volume of sales by 13% YoY and revenues by 17.5% YoY.

The drop in profits comes after last year's bumper results, buoyed by a surge in global steel prices.

The company plans to generate revenues to the tune of SIT 130 billion (EUR 542.5 million) by the end of the year and post a net profit of SIT 5 billion (EUR 20.9 million).

Cleveland-Cliffs appoints Ms Brlas as CFO & treasurer

Cleveland-Cliffs Inc has announced the appointment of Ms Laurie Brlas as senior VP, CFO and Treasurer effective December 11th 2006. Ms Brlas replaces acting CFO Mr Donald J. Gallagher, who recently assumed the position of president of North American Iron Ore. Ms Brlas has had an extensive accounting and financial career spanning more than 20 years.

Mr Joseph A Carrabba CEO said "We are very pleased to welcome Laurie to Cliffs. She has an impressive track record with hands-on experience in a wide variety of roles at other publicly traded global companies. We look forward to Laurie joining us and feel she will make an excellent addition to our management team."