No need to ban iron ore exports Indian miners

Reuter has reported that Federation of Indian Mineral Industries has retreated that India should not restrict iron ore exports as the country has enough reserves to meet both domestic and export demand. Mr RK Sharma secretary general of the FIMI said Even if we assume there will not be any addition to Indias iron ore reserve, the stock will last for at least 100 years.

Mr Sharma, commenting on recent statement from Mr Ram Vilas Paswan Indian steel minister told Reuters that The minister has been wrongly briefed by some of the powerful companies of the country as steel makers want to ban ore exports to wrest control of iron ore reserves.

Mr Sharma said We have enough reserve to meet overseas sales and Indian demand. Steel companies have their own axe to grind by raising the scarcity bogey.

Mr Sharma said that currently iron ore was being exported at $35 FOB to $55 FOB, depending on the destination and quality of the ore. India exported 90 million tonnes of iron ore in 2005-06 out of which 68.5 million tonnes went to China and that exports account for about 60% of Indias iron ore production.

Corus to send offer document to shareholders soon

It is reported in British media that Corus is expected to send an offer document to its shareholders within the next fortnight on bid by TATA Steel. Thereafter it will hold an extraordinary general meeting in December 2006 to seek their approval.

According to the scheme of arrangement of the acquisition, Corus will have to get approval from 75% of the shareholders, including at least half from those attending the EGM. Once attained, the offer will go to a local court for the final assent.

This seems to be in line with TATA Steels estimation that the acquisition will be complete by January 2007.

INSDAG unveils plan to increase steel consumption in India

Institute for Steel Development and Growth, as part of a project to increase use of steel, has designed cost effective houses, bullock carts, toilets, bus shelters, bridges, culverts, and water tanks for rural areas, made of steel.

Mr RKP Singh DG of INSDAG while speaking at an All India District Level Dealers Conference, organized by Rashtriya Ispat Nigam Limited focusing on promotion of steel in rural areas said that the designs would have a definite edge over the concrete and cement structures because of their resistance to wind, earthquakes and cyclones.

He said that INSDAG had taken up designing the project for exploring the use of steel in rural areas, as part of the national steel policy, under which the ministry of steel had set a goal of increasing the rural per capita consumption of steel to 4 kg per annum by 2019-20 from the present 2 kg per annum. Mr Singh said that this was achievable by 2012-13, provided there were adequate promotional efforts and focus on opening new block level of rural stocks.

Mr Singh also said the INSDAG planned to launch a mass media campaign on promoting steel this year and had earmarked over Rs.20 crore for advertisements.

NMDC reports results for Q2

Indian iron ore major, National Mineral Development Corporation Limited has reported that its net sales & income from operations during July to September quarter of 2006-07 amounted to INR 9,484.7 million down by 10.5% YoY as compared to INR 10,607.3 million in July to September 2005-06. Its net profit during Q2 of 2006-07 at INR 5,229 million is also down by 4.8% YoY as compared to INR 5,497.6 million in Q2 of 2005-06.

However, NMDCs net sales & income from operations during April to September of 2006-07 amounted to INR 17,600 million up by 7.6% YoY as compared to INR 16,349 million in April to September 2005-06. Its net profit during H1 of 2006-07 at INR 10,030.4 million is also down by 27.4% YoY as compared to INR 7,868.9 million in H1 of 2005-06.

The release adds that the sales for the quarter July to September 2005 included an amount of INR 2,858.5 million of arrears of iron ore sales accounted in respect of the quarter April to June 2005 as the sales agreements were signed only during August and September 2005. Thus the sales of 2nd quarter of 2005-06 works out to INR 7,748.8 million as against INR 9,484.7 million of 2nd quarter of 2006-07 resulting in the actual increase in sales by 23% YoY.

Debate on for quantity of mine able Indian iron ore reserves

The differences of opinion on the quantity of iron ore reserves in the country between the steel ministry and the mining community is continuing, as it is likely to play in deciding Indias long term policy on iron ore that weather it should be preserved with linkages to announce steel mills or the exports shall be allowed.

As per the Indian Bureau of Mines Indias iron ore are estimated at 23 billion tonnes. The insitu reserves are estimated at about 18 billion tonnes. Haematite accounts for 12.3 billion tonnes and magnetite 5.4 billion tonnes. Besides, conditional reserves of both haematite and magnetite are assessed at 5.5 billion tonnes taking total Indian iron ore reserves beyond 23 billion tonnes.

The iron ore reserves are spread mostly in South, Western and South Eastern part of India and are divided in 5 zones. As per available information, almost 45% of the hematite is of medium to high grade with Fe content of 62% to 65% and the amount of 65% grade is limited to about 15%

The steel ministry claim that exports endanger the reserves in the country which may be much lower than the estimates as almost half of the reserves specifically 10.68 billion tonnes of magnetite are under dense forest cover in tribal areas in Western Ghats and difficult to mine due to environmental issue.

A senior steel ministry official referring to the SC judgment ordering the closure of mines owned by the KIOCL due to environmental reasons said that The Supreme Court example of Kudremukh Iron Ore Company Limited is a prime example. There is already precedence in place and hence there is apprehension that mining will be disallowed in sensitive areas in future.

On the other hand Federation of Indian Mineral Industries believes that the KIOCL example should not be generalized as instances like Rowghat which was granted to Steel Authority of India Ltd are also present. Mr RK Sharma secretary general said Rowghat is ecologically among the most sensitive areas in the world and yet it was granted to SAIL. There is no reason to believe why other areas should not be available for mining.

Indian mining industry is also of the opinion that greater exploration will only see reserves go up and not otherwise. Mr Sharma said If we study cases like Australia, the reserves went up when exports were allowed and intensive mining was encouraged. The same needs to be done here and its always the non captive mines that have done more intensive mining and added capacities.

TATA Steel re dedicates to ASPIRE to get support for growth

On the first eve of November, TATA Steel re dedicated itself to ASPIRE with the objective of emphasizing the role of improvement initiatives in TATA Steels ever growing aspirations. The program focused on motivating the employees in dedicating themselves to theory of constraints, total quality management and technology in the companys journey of becoming a world leader in steel. The program was ceremonially launched by Mr B Muthuraman MD of TATA Steel and Mr Shailesh Kumar Singh deputy president of TATA

Dr T Mukherjee deputy MD Steel set the perspective by emphasizing the necessity to dream big and how TATA Steel through ASPIRE program is converting its dreams into reality.

Mr B Muthuraman emphasized on the need for synergy and integration in the efforts of the employees through TOC, TQM and Technology initiatives. He asked each and every employee to re-focus on the fundamentals of TOC and TQM. Also in the changing scenario each one should build confidence to develop their own Technology rather than depending on others.

Mr Shailesh Singh stressed on the importance of the role of each and every employee in helping TATA Steel achieve its aspirations through people involvement. He stressed the need for employees to take more training and increase their knowledge to improve their individual and organizational performance.

ASPIRE has become TATA Steels brand for internal improvements through involvement of its employees. The ASPIRE program, introduced in May 2003 evolves round the philosophy of setting aspirations which maybe beyond the current capability, then getting determined about reaching those aspirations, mustering required resources which leads to achievements and thus the self confidence to ASPIRE for more.

Jinan Steel ties up with DEMPO for iron ore supply

Chinese steelmaker Jinan Steel has signed a contract on October 25th 2006 with Indian iron ore major DEMPO for a 3 year iron ore supply from 2007 to 2010.

The two parties have been in cooperation ever since 1992.

(Sourced from Mysteel.net)

HZL raises zinc price

As per reports, Hindustan Zinc Ltd has raised zinc prices by Rs 9,500 per tonne or by 4.5% to Rs 221,800 effective yesterday. The price increase is driven by the surge in global prices of zinc.

HZL has also increased lead prices by Rs 3,100 per tonne or 3.8% to Rs 84,600 a tonne.

Ceiling on JV equity removed for NTPC

Indian Cabinet Committee on Economic Affairs has approved waiver of the ceiling of Rs.1000 crores for equity investments by NTPC Limited to establish financial JV and wholly owned subsidiaries in India or abroad for the purpose of participating in the bidding of ultra mega projects, subject to the implementation of maximum 2 projects.

However, the ceiling of 15% of the net worth of NTPC in one project and the overall ceiling of 30% of the net worth of the NTPC in all such projects of NTPC put together shall remain.

This will facilitate participation of JV of NTPC and BHEL in the bidding for the development of ultra mega power projects and result in technically and commercially bid as well as facilitate tying up with world class mining operators.

AES Corps power plant in Chattisgarh approved

Indian Cabinet Committee on Economic Affairs has given its approval for setting up a coal based power plant in the state of Chattisgarh by AES OPGC Holding, Mauritius and any other group affiliate entity of AES Corporation USA to set up a wholly owned subsidiary in India to undertake a green field coal based power generation plant and to undertake coal mining for captive consumption.

The project is expected to cost approximately $1,222 million. AES expects to bring $ 370 million as FDI and balance $ 852 million shall be raised through loan from domestic and international banks and financial institutions.

SILs sales up by 20.9% in Q2

Southern Ispat Limited has reported sales of INR 55.731 million for the July to September 2006 quarter up by 20.9% YoY as compared to INR 46.083 million in Q2 of 2005-06. With this, SIL has posted net profit of INR 1.046 million on a turnover of INR 102.594 million in April to September 2006 period.

Mr Vivek Agarwal MD of SIL said that the company is exploring options of striking strategic alliances with large integrated steel companies to source raw material and in return will either offer equity stake or a share of its revenue.

SIL had a turnover of INR 193.435 million and profits of INR 10.058 million during 2005-06.

Chinese steelmills settle SBQ plate prices with S Korean buyers

China's major integrated steelmakers such as Baoshan Iron & Steel Co have settled flat prices in their negotiations on exports of ship plates to South Korea's Hyundai Heavy Industries Co and other major shipbuilding companies for shipments in December to February next year according to information made available in Tokyo.

In the negotiations, Baosteel is said to have agreed on a price of around $620 C&F. Also, there are cases of a price settlement at around $600 C&F as to other Chinese steelmakers, market sources believe.

A flat price level in Chinese ship plate exports to South Korea amounts to an appropriate settlement, given Japanese export prices of ship plates for South Korea, point out Japanese steel industry sources. Japanese integrated steelmakers are contracted to provide ship plates for South Korea's major shipbuilding companies at $600 FOB for November-December shipments and at $610 FOB for January to March shipments next year.

The Chinese steelmakers' existing ship plate export contracts for September to November shipments to South Korea are thought to have ensued from tough contract negotiations with the Korean shipbuilding companies for July to September shipments, according to market sources.

(Sourced from Mysteel.net)

Reliance Steel & Aluminum to acquire Crest Steel Corporation

Reliance Steel & Aluminum Co announced that it has reached an agreement to acquire Crest Steel Corporation, a metals service center company headquartered at Carson in California with facilities at Riverside at California and Phoenix in Arizona. Terms have not been disclosed. The transaction is expected to be finalized in early 2007, subject to the completion of due diligence and regulatory approvals.

Crest was founded in 1963 and specializes in the processing and distribution of carbon steel products including flat-rolled, plate, bars and structural. Crests net sales for the 2005 fiscal year were approximately $129 million.

Reliance Steel & Aluminum Co is one of the largest metals service center companies in the US with a network of more than 160 locations in 37 states and Belgium, Canada, China and South Korea.

16 coal miners dig their way to safety after land slide

Xinhua has reported that 16 miners trapped for 14 hours in a northwestern China coal mine have dug them out to freedom.

The miners were trapped in the Deshun coal mine near Lanzhou city, Gansu province, mid morning Wednesday when 1.4 million cubic meters of mud slid down a mountain and blocked the mine entrance. The miners dug an eight meter tunnel with shovels and other mining tools taking 14 hours to reach freedom.

The report quoted a miner surnamed Wang as saying that "We were frightened at the beginning, but we soon calmed down because we knew we were not far from the ground surface. Later we heard the sound of excavators digging and that boosted our morale enormously."

MEPS maintains flat steel price forecast for Asia

UK Based MEPS has not changed their forecast significantly this month for flat products and said that the Asian Average prices are expected to increase gently for the period up to the end of 2006.

MEPS said that high volumes of exports should continue to keep Chinese supply and demand reasonably in balance, Japanese prices should hold up due to current market conditions and weakness could occur in South Korea but this should be offset by firm consumption in Taiwan.

MEPS said that, in the medium term, exports to North America and the EU should subside as Asian selling values become less competitive and overall export demand slips and a modest decrease in price is forecast to follow. However, MEPS do not envisage prices in the Asian market following the highly volatile pattern likely to be experienced in the EU and North American steel sectors.

CISA to reintroduce steel futures to combat speculative trading

Intefax has reported that China Iron and Steel Association are considering reintroducing steel product futures to help combat speculative online trading. However, such affirmative comments apparently contradict with earlier media reports that CISA strongly oppose steel futures trading in any form.

Mr Qi Xiangdong deputy general secretary of CISA during a conference last weekend in Wuhan said that the CISA may start studying the potential for steel product futures trading to control market speculation. Mr Qi said that the recent drop in steel product prices was due to speculation through online forward-contract steel product trading in Shanghai.

Mr Chen Kun a steel analyst with Sinosteel Group said that many traders in major cities including Shanghai, Beijing and Tianjin are involved in forward contract steel product trades through e-commerce websites, building up many short positions to pull down steel product prices on the spot market. Mr Chen said this form of trading is very similar with futures trading, but is purely speculative and has no unified trading platform.

Mr Zhao Yushen an analyst with China Union Steel Co Ltd said that many traders have set up short positions since April on contracts to be delivered in October and November. However, he said the actual market price is higher than expected and as a result speculators pulled down prices.

CITIC to set up coke ovens for ThyssenKrupp CVRD JV in Brazil

China's CITIC Group has signed a Euro 269 million deal with ThyssenKrupp for setting up a coking coal JV in Brazil. The project called Brazil Atlantic Steel Coking will be fully operational by 2009 with annual coke output of 1.9 million tonnes.

CITIC will set up a coking plant for the JV, jointly founded by Thyssen Krupp and CVRD in Brazil. CITIC has already commissioned such coking plant projects in Iran and South Africa.

Exxaro Resources to become largest coal company in SA by 2012

Kumbas offshoot Exxaro Resources, which currently produces about 42 million tons of coal per year has plans to produce 70 million tons per year of coal in six years to make it South Africa's largest coal producer as it is to combine the assets of Kumba Coal and Eyesizwe Mining and also has a huge number of new projects in the pipeline.. Exxaro will also produce zinc and titanium but its primary offering is coal.

Exxaros growth will be come from its dominant position on the Waterberg coal field in Limpopo Province. Exxaro also has links to energy giant Sasol because Eyesizwe is Sasol Minings major empowerment partner.

The Waterberg contains South Africas largest remaining coal resource and is expected to become the countrys most important coal mining region within 10 to 20 years. In that time the Witbank and Middelburg coal fields, which have been the mainstay of the industry to date, will wind down.

Exxaro owns the only operating colliery in the Waterberg, the multi product Grootegeluk mine, which currently produces 18.8 million tons per year. Eyesizwe picked up some six billion tons of coal resource in the Waterberg as part of the NewCoal assets and that coal is located within kilometres of Kumbas existing coal resources.

Xstrata completes takeover of Falconbridge

Xstrata Plc announced that it had completed the acquisition of Canadian miner Falconbridge, owning 100% of the shares it bought for C$62.50 in cash.

Xstrata took control of Falconbridge in August following a complex and heated bid battle in which it had an edge after acquiring a 20% stake cheaply last year.

The deal made Xstrata the world's fifth-largest diversified mining company by market capitalization and boosted its copper and nickel portfolio.

Chinese tolling trading likely to see export rebate cancellation

After Chinese government published on October 27th 2006 to impose a 10% export tariff on semi products, valid from November 1st 2006, Chinese government is said to be considering cancellation of export tax rebate for tolling trading in which processing materials are supplied by clients. Insiders forecast that the rebate would be certainly cancelled, just a matter of time.

According to China's tax system, once tolling trading was subjected to export tax rebate cancellation, importers had to shoulder 2% to 3% import tariff and 17% VAT. And only their import costs would increase by 19% to 20%. In consideration of export tax rebate of 5% for finished products, processors' costs would be lifted up by 14% to 15%.

(Sourced from Mysteel.net)

Eramet reopens its Kouaoua mine

It is reported that Eramet SA, which runs the world's biggest ferro nickel plant in New Caledonia has regained access to one of its two mines that have been blocked because of continuing strike action. The Paris based company reopened its Kouaoua mine, which was blocked by strikers last week. It has maintained access to the other two of its four mines on the island, including the largest Tiebaghi nickel mine.

Mr Pierre Alla CEO of Eramet's Le Nickel SLN unit during an interview with Bloomberg said: "The Kouaoua mine isn't working back to normal yet. We still have some blockades but have about ten days of ore reserves and we'll keep going." He also said that Eramet's smelter still operating at two thirds capacity.

The general strike began in late September with locals protesting at the number of foreign workers and the high cost of living on the island which is believed to have 25% of the world's known nickel reserves. Last week, the government of the French-controlled territory put a proposal to the unions in the hope of ending the strike, but so far there has been no response.

The continuation of the crisis at New Caledonia, approaching its sixth week, will keep nickel prices high. Another nickel miner, Goro Nickel, has also been affected by the strike with workers facing protests and vandalsim during construction.

Kumba Iron Ore to double output up by 2105

Africa's biggest iron ore producer Kumba Resources Ltd expects to boost iron ore output by nearly a third within three years and more than double it by 2015 as it aims to increase production to 42 million tonnes by 2009 and to 70 million by 2015 from around 32 million tonnes currently.

Mr Ras Myburgh CEO, after the company's shareholders voted to agree to the planned spin off of a coal and heavy minerals company from Kumba which will be renamed Kumba Iron Ore, told a media briefing that iron ore contract prices were due to keep rising next year, although they were not likely to repeat the 19% and 71.5% hikes seen in 2006 and 2005 respectively. He said "I can't expect the type of increases we've seen in the past, but I definitely see single digit. I wouldn't fall off my chair if we got increases in the double digits."

Anshan orders a new seamless tube mill

Anshan New Steel Corporation Ltd has placed an order with SMS Meer for the supply of a new seamless tube mill employing the Premium Quality Finishing technology. The mill is scheduled to go into full production at the beginning of 2008.

The mill will be used to produce seamless tubes in the diameter range from 73 mm up to 177.8 mm with a planned capacity of 250,000 tonnes per year.

Ryerson's Q3 profit slides due to higher inventories

Ryerson Inc announced that its net earnings were $21.6 million in July to September 2006 quarter as compared with $30.7 million in Q3 of 2005 and that its revenue in Q3 of 2006 rose by 8.6% YoY from the year earlier to $1.54 billion.

Ryerson said that its shipments in Q3 of 2006 declined by 5.4% YoY on a per day basis while the average selling price per ton increased by 16.6%.

Ryerson said that third quarter profit fell due to inventory levels being much higher than market demand adding that it also reflected normal seasonal slowness.

Mr Neil Novich chairman, president and CEO said "Market demand remained solid and prices continued to rise, especially in stainless steel. However, inventory management was unsatisfactory and our level is too high relative to market demand."

Chinese step in bidding war between Aztec & Mt Gibson

In a recent development, the hostile bid war waged by Mt Gibson for Aztec Resources, a Chinese company has acquired part stake in each of Aztec and Mt Gibson and may play a decisive role in deciding the outcome of Mt Gibsons hostile bid for Aztec.

Hong Kong based Shanghai Merchants Holdings Ltd with links to Chinese steel producer Shougang Steel, acquired a 6.5% stake in takeover target Aztec, one day after it acquired a 10.6% stake in Mount Gibson.

The Mount Gibson stake was sold by COL Capital, linked with Hong Kong based investment group Sun Hung Kai, which already owns another 5% of Mount Gibson stock through another venture. Mt Gibson sold its 73 per cent stake in Asian Iron, the owner of a magnetite project on Extension Hill, to Shougang for $52.5 million in June this year.

Mount Gibson has to date acquired a 32.1% stake in Aztec and has recently made its offer unconditional. The offer is set to close on November 3.

The acquisitions give Shanghai Merchants a pivotal role in determining the outcome of Mount Gibson's hostile bid for Aztec, which is developing the Koolan Island Iron Ore project in the Kimberley.

Coking coal price softening to hurt Wesfarmers earnings

Diversified industrial group Wesfarmers has reiterated that earnings for fiscal 2007 will be lower than last year due to softer coal prices.

Mr Richard Goyder MD of Wesfarmers said that the full year result was dependent on the volume of export metallurgical coal from its Curragh mine in Queensland and the average price achieved for calendar 2007.
He said "Given the impact lower coal prices will have on the earnings of the group, it is our expectation that our full year results will be lower than the normalized $869 million we achieved in 2005-06.

Mr Goyder told reporters "I've got no idea; it depends on the coal prices for the last quarter of the financial year and the retail environment.

Wesfarmers currently expects exports of coal from Curragh in a range of 6.2 million tonnes to 6.5 million tonnes.

Vietnams new rule for steel scrap import may cause shortage

It is reported that recent regulations from Vietnam Government have limited the imports of scrap steel and cast confusion over just which enterprises would be allowed to do so. The regulations clearly bar trading companies from importing scrap steel but it has become unclear whether steel producers would be allowed to import steel scrap for production purposes.

As per reports, customs officials at many ports have recently rejected consignments of steel scrap imported by the Viet Nam Steel Corporation. According to Mr Dinh Huy Tam, general secretary of the Viet Nam Steel Association, all of the scrap steel imported by Viet Nam Steel Corporation was intended to supply the corporations member companies which produce ingot steel.

Officials from the Vietnamese ministry of the natural resources and environment, referring to a series of legal documents, said that only direct steel producers could import scrap steel to serve their production lines.

According to the Viet Nam Steel Association Viet Nam needs to import about 1 million tonne of steel scrap every year and it has so far imported 0.4 million tonnes with likely import of another 0.3 million tonne leaving a large gap of 0.3 million tonne for 2006.

South Korean shipyards secure orders for $12.2 billion in Q3

South Korean ministry of commerce, industry and energy recently said that, riding on the increased global demand for vessels, the order book of South Korean shipyards increased by a record $ 12.4 billion during July to September 2006 quarter, more than doubled from a year earlier to 5.97 million compensated gross tonnes.

The Ministry said that "A revival in demand for container vessels after slowing down since the third quarter of 2005 helped South Korean shipyards secure record orders."

The South Korean shipyards delivered 2.78 million CGT in the third quarter valued at $ 4.49 billion higher by 20% more than a year earlier.

Order backlog reached a record 42.9 million CGT at the end of September, which will help keep South Korean shipyards busy for more than three years.

Simara starts construction of long product plant

BNamericas has reported that Brazilian pig iron producer Simara expects to start operations at its 300,000 tonnes per year long product plant in the second half of 2007. The new mill is being installed at Simara's existing operations and the construction has started.

Mr Ian Corr ED of Simara told BNamericas that investments in the project could reach $100 million to 120 million and that while 50% of the plant equipment will be imported from Germany, Italy and US, Brazilian manufacturers will supply the balance.

Simara is controlled by iron and steel products distributor A Cearense. Simara produces some 200,000 tonne of pig iron at its Marabcity plant located in Brazil's northern Parstate.

Inmet cuts zinc production forecast for 2006

Canadian producer Inmet Mining has cut its 2006 zinc in concentrates production forecast to 73,800 tonne from an original 81,900 tonnes, reflecting revisions at both its Cayeli mine in Turkey and its Pyhasalmi mine in Finland.

Production at Cayeli is now expected to come in at 38,800 tonnes of contained zinc as compared with an original forecast of 43,500 tonnes. Actual production at Cayeli was 26,600 tonnes in January to September 2006 down from 31,100 tonnes in the same period of 2005. That reflects a change in mine sequencing with zinc-rich ore now expected only next year.

Similar changes in mine sequencing at the Finnish mine are responsible for the forecast downgrade there to 35,000 tonnes from original guidance of 38,400 tonnes. Actual production at Pyhasalmi fell to 26,500 tonnes in January to September from 30,400 tonnes in the year earlier period. Mining of a high grade zinc stope has been pushed back from the fourth quarter of this year to the first quarter of next year.

Mttal Steel Temirtaus coal workers change their union leader

Kazakhstan Today has reported that the trade union leader has been replaced in the coal department of Mittal Steel Temirtau, after an election at a conference of the workers took place on November 1 in which 249 delegates from 28 sections representing interests of 24 coal union members were present.

As per reports, Mr Marat Mirgoyazov chairman of the trade union committee of Tentek mine was elected as chairman of Korgau Trade Union by ousting Mr Vyacheslav Sidorov.

Nova-Zinc to supply 25% of CZPs zinc concentrate requirements

Interfax has reported that Chelyabinsk Zinc Plant has paid $136.5 million for acquiring 100% stake of Kazakhstan's Nova-Zinc.

As per reports, Chelyabinsk Zinc Plant acquired 51% of the Swiss company Nova Trading & Commerce AG, which controls Nova- Zinc, for $86.5 million in April 2006 and closed a deal to acquire 49% of Nova Trading & Commerce in August 2006 for $50 million, thereby increasing its stake to 100% and receiving full control of Nova-Zinc.

Nova-Zinc's proved and probable resources to JORC standards were 13.6 million tonnes and 24.1 million tonnes respectively, containing 439,000 tonnes of zinc & 54,000 tonnes of lead and 892,000 tonnes of zinc & 203,000 tonnes of lead respectively as of January 1st 2006. Nova-Zinc should be supplying CZP with approximately 38,000 tonnes of zinc in concentrate, 25% of its annual requirement, from 2007.

Blockade halts port activity at Chittagong

It is reported that the operations at Bangladeshs Chittagong port have ground to a halt after opposition party supporters blocked access to the port following the countrys worsening political crisis resulting in stranding of more than 30 ships at berths and the outer anchorage since October 27 and nearly 20,000 TEUs stockpiled at the yards.

Mr Ahsanul Kabir traffic director of Chittagong Port Authority said "We are no more unloading any stuff from the ships as every yard, warehouse and store are full of containers and bulk cargoes."

Chittagong port handles 80% of Bangladeshs external trade.