November, 30 2006
SAIL not to share Chiria mines with other players
Steel Authority of India Ltd has ruled out the possibility of sharing Chiria mines with any other player. Mr SK Roongta chairman of SAIL at the sidelines of the Bengal Chamber of Commerce & Industrys Metals 2006 conference said that SAIL was working on an amicable settlement on Chiria with Jharkhand government but would not share its resources.
SAIL is planning to set up Greenfield steel making capacities in Jharkhand to assuage Jharkhand government, in addition to its capacity expansion at Bokaro Steel Plant in the state. SAIL has also lined up an investment of Rs 1,800 crore for Chiria iron ore deposits.
Chiria iron ore deposits, Asias largest reserves in excess of 2 billion tonnes of high grade ore, were originally leased out to IISCO by the erstwhile Bihar Government for many decades. Subsequent to IISCOs merger with SAIL, Chiria deposits now belong to SAIL.
Unfortunately, the previous Jharkhand government overlooked this fact and tried to woo investors by promising these deposits, but with the intervention of central government, the new government in Jharkhand has relented for settlement with SAIL.
JSW likely to set up steel plant in West Bengal Report
It is reported that JSW Steel and West Bengal government are putting the final touches to a MoU for setting up an integrated steel plant in the state and that JSW is considering Salboni in Midnapur district as the possible site for the unit. Dr BN Singh joint MD and CEO of JSW Steel said We have made good progress on the project. An agreement will be signed next month.
As per reports, the capacity of the steel plant could be either 3 million tonnes or 5 million tonnes and would not depend on iron ore mines in Jharkhand rather source it from stand alone miners in both Orissa & Jharkhand although Mr Buddhadeb Bhattacharjee chief minister of West Bengal has been lobbying hard with the Centre for such mines
The report mentions that the West Bengal government is taking steps to provide 4 million tonnes to 6 million tonnes of coal to the project through the West Bengal Mineral Development Corporation and some private miners.
JSWs proposal was dumped a year back when Jharkhand government denied captive mines to JSW Steel, resulting in announcements from JSW Steel for steel plants in Jharkhand and Orissa.
Essar commissions new caster
Essar Steel has successfully commissioned a continuous caster at its Hazira works which is supplied by SMS Demag.
The caster produces slabs in widths of up to 2,000 mm and a thickness of 220mm or 260 mm. It is designed for an annual production of 1.8 million tonnes of steel. Essar Steel is using the caster to produce high quality heavy plate and tube steel grades up to API X80 as well as IF and ultra low carbon steel grades.
The technological equipment comprises the adjustable mold with hydraulic oscillations, mold level control, hydraulically adjustable segments for dynamic soft reduction and level 2 automations.
GMDC diversifying to become coal & power major
Gujarat Mineral Development Corporation is focusing on emerging as a major minerals and power player from a lignite mining company by acquiring coal mines in India and abroad. Mr C.J Jose CMD of GMDC, on commissioning of its 250MW lignite-based power plant at Akrimota said From a lignite mining company we want to make GMDC an all encompassing minerals company by acquiring coal mines in India and abroad.
GMDC has already bagged the Morga-II coal block in Chhattisgarh from the government, which is estimated to have coal reserves of 350 million tonnes out of which 250 million tonnes would be mine able reserves. GMDC has also entered into coal supply and investment agreement with KSK Energy Ventures with an the option of taking a 26% equity stake in the power company being formed for setting up a 250 MW power plant at Vardha and another 750 MW plant near Morga mines.
GMDC was also allotted another coal block in Jharkhand recently. Me Jose said As the reserves in this block are too small, we have asked the Centre to allot a bigger block at Moharkudi in West Bengal in place of the Jharkhand block. Apart from this, we have bid for all the 11 coal blocks that the Centre recently put out for public sector units.
GMDC is also exploring coal mines abroad and Mr Jose said We will be meeting executives from an Indonesian coal mine company soon. As outside companies are not allowed to own mines in Indonesia, we may tie-up with this company for a long-term contract and source coal from them and sell it in India.
Protest for rehabilitation paralyzes MCLs Balram coalmine
Statesman News Service has reported that Coal India Limiteds subsidiary Mahanadi Coalfield Limiteds Balram coal mine in Talcher, continues to be paralyzed for the past 21 days following the agitation by the people of Soloda village and that the stir also hit partially another mine Hingula. As per the report, both MCL and state administration expressed their helplessness stating that they have no power to do so.
According to MCL official sources, it suffered a loss of about 0.5 million tonnes of coal output from these two mines during the strike period and the coal supply to power stations across the country has been curtailed and both the company and the state have suffered huge financial losses.
Villagers resorted to a strike demanding the takeover of their 2016 acres of land by the colliery following 4(1) notification by the Centre under Coal Bearing Act years ago.
Balram produced coal at an average of 15000 tonnes daily while Hingula maintains a daily output of 30000 tonnes.
Gujarat NRE acquires controlling stake in Australian Zelos Resources
Gujarat NRE Coke Ltd has announced that Australian Stock Exchange listed Zelos Resources NL is now officially renamed as Gujarat NRE Resources NL after the shareholders of Zelos passed the resolution giving effect to Gujarat NRE Coke Ltd taking a controlling 85% stake in Zelos Resources last week.
The takeover came through when Gujarat NRE Coke sold its Avondale Coal Mine in the Southern Coalfields of NSW of Australia to Zelos for 170 million shares in Zelos and 130 million options of 20 cents. These shares constitute about 85% of the equity of Zelos.
Gujarat NRE Coke has licenses to prospect for metals and minerals that include iron ore, gold, copper and coal in the Tasmanian region of Australia. The listing is expected to fortify the position and stature of the Gujarat NRE Group in Australia. Gujarat NRE group is only the second company from India to have a listed presence on the Australian Stock Exchange.
Jindal Saws net profit surge by 97% YoY in Q2
Jindal Saw Ltd has announced the audited results for the July September 2006.
Jindal Saw Ltd has posted a net profit of INR 475.684 million for Q2 of 2006-07 up by 97% YoY as compared to INR 241.371 million in Q2 of 2005-06.
Jindal Saw Ltd total Income net of excise has increased from INR 5743.853 million in Q2 of 2005-06 to INR 11402.935 million in Q2 of 2006-07.
Balmer Lawrie upgraded to Mini Ratna Category I
Balmer Lawrie & Company Ltd has been upgraded to Mini Ratna Category - I status from Mini Ratna Category - II by the government of India. With this, Balmer Lawrie would be able to enjoy greater managerial and commercial autonomy in respect of capital expenditure, JV subsidiaries, mergers and acquisitions.
Balmer Lawrie now joins the select group of category I Mini Ratnas, which include Shipping Corporation of India, Hindustan Aeronautics Ltd, Container Corporation of India, National Aluminium Company Ltd and Engineers India Ltd.
Surana Industries to set up a steel complex at Raichur
It is reported that Surana Industries Ltd is setting up a new integrated steel complex to manufacture special steels mainly to cater to the needs of automobile sector with an estimated investment of around Rs 473 crore. The company plans to commence production in December.
The plant would be set up at Raichur in Karnataka and will produce 0.128 million tonnes of sponge iron, 0.136 million tonnes of liquid steel at the steel melting shop and the rolling mill would have a capacity of 0.132 million tonnes annually.
SIL has signed agreement with MN Dastur & Company for its proposed captive power plant and with MITEC for its steel melting shop. It has also signed agreement with Bilashpur based ECIS for directly reduced iron plant and with Richardson & Crudas for pollution control.
Siemens wins order for substations in Qatar
It is reported that a consortium of Siemens and parent German Siemens AG has bagged an order worth Rs.4,000 crore from Qatar General Electricity & Water Corporation for development of phase VII electrical grid in Qatar. The share of Siemens in the order will be Rs.3,600 crore or 90%. The project is scheduled for completion within 22 months.
The orders include 25 new sub stations of voltages 220 kV/132 kV/66 kV with extension of 14 substations and renovation of 10 substations. The sub stations are to be built in cities like Doha, Ras Laffan and Maesaeed. All substations will be installed with electrical power equipments and substation automation systems supplied in house by Siemens.
Kulpi Port to start land acquisition by January 2007
It is reported that land acquisition for the Kulpi port project in South 24 Parganas of West Bengal is likely to begin from January 2007. It is learnt that US consultant Jacobs Babtie has already submitted the detailed project report to the promoters.
The project is a 3 way JV between Dubai Ports SPV Dubai World, Mr MK Jalans Keventer Group and West Bengal Industrial Development Corporation.
L&Ts JV bags Tapovan Vishnugad hydel project in Uttaranchal
Larsen & Toubro Ltd has announced that its JV with Alpine Mayreder Bau GmbH of Austria has bagged an order valued at Rs 456 crores from NTPC Ltd for the execution of 4 x 130 MW Tapovan Vishnugad hydropower project in on the Dhauliganga River in Chamoli district of Uttaranchal.
The package includes construction of a concrete lined head race tunnel of approximately 11.3 kilometers length and 5.6 meter finished diameter partly by tunnel boring machine and partly by Roadheader, drill & blast.
L&T is already implementing Singoli Bhatwari hydel project, about 125 km from Tapovan Vishnugad, on BOT basis in Uttaranchal.
Baosteel seeks alliance with Nippon Steel & POSCO Report
Japanese Nihon Keizai Shimbun quoting Baosteel chairwoman Ms Xie Qihua reported that Baosteel Group Corp may ask Nippon Steel Corp to take some stake in the Chinese company. Nihon Keizai said that the sizes of the stakes are likely to be a few percent.
Ms Xie in an interview with the business daily said that BaoSteel may make requests of Nippon Steel and POSCO to buy its shares if it lists on overseas markets.
According to the report Nippon Steel, which has been seeking some capital alliances with leading overseas steelmakers, would likely accept an offer from Baosteel.
Baosteel and Nippon Steel jointly produce high grade automotive sheet steel in Shanghai through a 3 way joint venture with Arcelor but have yet to form direct capital ties.
Corus Q3 earnings surge due to higher prices
Corus Group has posted a net income attributable to equity holders rose to 141 million pounds ($275 million) for July to September 2006 from 50 million pounds a year earlier. EBITDA was 235 million pounds ($459 million) and sales climbed to 2.49 billion pounds from 2.13 billion.
Mr Philippe Varin CEO said that prices would likely be little changed overall in the fourth quarter from the third quarter. He said that Corus has been able to introduce small price rises in northern Europe but these have been offset by price pressure in southern Europe, which are exposed to imports.
Mr Varin added "Overall, the commercial environment in the fourth quarter remains stable, however our profitability in this period will reflect seasonal production shutdowns and the blast furnace reline at IJmuiden in the Netherlands."
Death toll rises in fire at MMK
Interfax has reported that the death toll from the fire at the Magnitogorsk Iron & Steel Works has reached six. Mr Andrei Kosilov acting Chelyabinsk Region Governor told a briefing "Six of the seven presumed corpses have been found. He said that the exact number of people killed in the blaze will be released only after the cleanup is completed. About 300 rescuers are searching for more people under the debris.
Emergency services said infringements of operational procedures in pickling section was a possible cause of the blaze, in which the roof collapsed due to the extremely high temperature. Investigations into the cause of the blaze are under way.
Mr Victor Rashnikov president of MMK Managing Company said that We deeply regret this accident, and are especially sorry for the victims. We will ensure that all of the victims receive all necessary help and support.
Mr Gennadiy Senichev ED of MMK said We have prepared a plan for the optimum redistribution of our materials and production flows which will help to minimize the negative economic consequences. At present Rolling Shop No 5 has sufficient supplies in reserve of semi finished products and inventories to allow us to maintain downstream production while we address this issue.
Smorgon Steel to set up steel facility at Virginia in US
Smorgon Steel has announced that it will shortly commence development of a production facility for its LiteSteel beam product in the USA. The company said that the investment in the project, to be located at Botetourt County in Virginia would be approximately $30 million. Smorgon said that the plant would be located on the site of a former steel pipe fabrication facility and that the plant is expected to open in the second half of 2008.
Smorgon also reported that it has also entered into a purchase agreement for a purpose built LiteSteel beam mill with OTO Mills of Italy. The group advised that the mill would have a capacity of 65,000 tonnes per annum.
Mr Ray Horsburgh MD said that the company had previously indicated its plans to produce and distribute the LiteSteel beam in the US. He said Extensive research has demonstrated to us that there is a promising market for the product in the US and today we are taking two significant steps with the development of a high quality manufacturing site in Virginia and the purchase of a LiteSteel beam mill line from OTO Mills.
Size criterion to judge outdated steel capacity in China questioned
Industry Department of Chinas NDRC held a symposium lately with the purpose of enhancing supervision over outdated capacity elimination next year, attended by four provincial development and reform commissions of Hebei, Jiangsu, Shandong and Shanxi, three big steel producers Baosteel, Wuhan Steel and Anshan Steel as well as CISA and Metallurgy Chamber of Commerce All China Federation of Industry & Commerce.
All attendees exchanged views on implementation of weeding out outdated facilities and the Metallurgy Chamber of Commerce All-China Federation of Industry & Commerce in particular, for the first time voiced counter to the standards put up by NDRC in the name of the organization.
"Size criterions of furnaces to judge what capacities are outdated and should be forced out are inappropriate." Deputy secretary-general of Metallurgy Chamber of Commerce All-China Federation of Industry & Commerce Geng Bingxi told the reporter.
The steel industry policy prescribed construction area for a sintering machine shall be at least 180 square meters, effective inner volume of a blast furnace shall be at least 1,000 cubic meters, nominal capacity of a BOF at least 120 tons. As supported measures, blast furnaces with below 1,000-cu.m volume and BOF with less than 120t capacity that were constructed after Aug 2006 should abide by differential power prices from Oct 1 this year.
In fact, facilities with smaller size than are prescribed still provide capacities to meet a big market demand. Size criterions are unfair to small and medium steel mills, with private mills as representative, vice general manager of Umetal website Yang Hongjie expressed.
Expert team with Metallurgy Chamber of Commerce All-China Federation of Industry & Commerce suggested that facilities up to the criterions are undoubtedly good for production of HR wide strip etc; but for wire rod, small/medium sections, bar products etc, 120t BOF may contradict to existing conti-caster and rolling mills etc. These varieties cover more than half of steel market, he said.
If over half of total steel output shifts to be made by BOF with over120t capacity, energy and resource consumption would surge and large expansion may happen at many steel makers. This is contradictory to the macro-control, Deng said.
As to environmental criterions, most of BOF with below 120t capacity and BF with 1000-cu.m volume are up to environmental criterions. It's unconvincing to simply follow the industrial standards regardless of other indices; still, China's economy is unbalanced distributed, small mils in the East may be major ones in the West, Yang Hongjie reminded.
Geng also stressed energy and resource consumption, environmental effect etc should be measured to seek out outdated facilities from advanced.
Earlier, deputy general-manager of CISA Li Shijun had disclosed new norms on waste discharge would be mapped with detailed technical indicators by end of this year to replace size and equipment criterions. This has however not essentially proceeded.
At the steel industry situation conference ended Nov 26, head of NDRC industry policy dept Liu Zhi also said apart from land and credit controls, resource utilization and waste discharge etc will be included as indices for industry admittance. (Source: China Business Times)
(Sourced from Mysteel.net)
Nippon Steel plans 1 trillion yen CAPEX to boost high end steel production
The Asahi Shimbun has reported that Nippon Steel Corp plans to spend more than 1 trillion yen ($8.6 billion) on a consolidated basis over three fiscal years through March 2009 to upgrade its production facilities and equipment and that the capital investment will be Nippon Steel's first exceeding 1 trillion yen for a midterm management plan.
The report said that Nippon Steel has decided to increase the outlay by more than 150 billion yen from the initial 850 billion yen budgeted under the three year midterm management plan.
It cited a company executive as saying that "Now is the time to further enhance profitability when demand for high end steel products is growing beyond our expectations."
Nippon Steel will focus on enhancing production of high-end steel products, such as steel sheets for automobiles, by updating and renovating facilities and equipment, including blast furnaces and steel material process lines.
Nippon Steel's move for expansion represents a departure from the years of restructuring and downsizing among Japanese steelmakers.
Chinese SS output to rise by 60% in 2006
According to a report by Interfax citing Antaike, Chinese stainless steel output is forecast to rise by 60% this year to 5.1 million tonnes and that the Chinese consumption could rise by 16% to 6.15 million tonnes with imports reaching 2.6 million tonnes versus exports of just 0.6 million tonnes.
China's stainless steel capacity has been climbing rapidly and by the end of the year could reach 12 million tonnes, out of which 8 million tonnes of capacity was built in 2005 and 2006. The overcapacity will put pressure on SS prices amid rising raw material costs.
Xstrata to rake up issue of chrome ore export to China from SA
Platts has reported that Xstrata is likely to rake up the issue stopping chrome ore export from South Africa to China during the visit of South African officials from the Department of Minerals and Energy to its new Lion ferrochrome smelter in Mpumalanga and point out that it creates jobs and wealth for South Africa.
Songeza Zibi head of communications for Xstrata told "We have a very strong case and we will make sure that the officials are fully briefed about our position when they get here. We feel that the exports to China mean the loss to South Africa of the kind of jobs we have created at Lion."
Xstrata has been pushing its campaign against the export of chrome ore from South Africa and has filed a petitioned to the government claiming that the trade is tantamount to exporting jobs. The company has also written a new position paper in the dispute over the exports to ferrochrome hungry China.
Lion smelter is expected to produce 360,000 tonnes per year of ferrochrome from next year, later raising it to 1.2 million tonnes per year by 2012. The two furnaces at Lion brings Xstrata up to 20 furnaces in South Africa.
China Coal to raise funds for expansion by HK IPO
Bloomberg, citing two unidentified sources familiar with the matter, has reported that China Coal Energy plans to raise up to H$13.16 billion in an initial public offering by selling 3.25 billion shares at H$3.20-H$4.05 per share in Hong Kong to help fund its expansion plans.
Bloomberg citing a recent report by investment bank Citigroup, one of the banks arranging the China Coal IPO reported that China Coal plans to invest Yu13.7 billion ($1.75 billion) between this year and 2008 to expand coal production and trading, which amounts to around 66.5% of China Coals total expenditure in the three year period.
China Coal is Chinas 2nd largest coal producer and owner of nine underground and three open pit mines. It is Chinas largest coal mining equipment maker by turnover and one of the largest domestic coke producers that are not part of a steelmaker,
Chinese RMB breaks 7.85 mark against US dollar
The value of the Chinese RMB against the US dollar hit a new high on Monday, with the central parity rate at 7.8402 yuan to one dollar, breaking the 7.85 mark. The appreciation followed previous records on November 9th when the central parity rate hit 7.8697, breaking the 7.87 mark and November 23rd when it was 7.8596, breaking the 7.86 mark.
This signifies that RMB value has risen by 5.31% since July 21, 2005, when the Chinese government launched the reform of the exchange rate system to allow the yuan to float against the US dollar within a daily 0.3% band from the official central parity rate. The exchange rate was set at about 8.27 yuan per US dollar before the reform.
The yuan's appreciation is attributed to the continuous slump of the US dollar and expectation for an interest rate drop in the United States. China's soaring foreign exchange reserves and the rocketing trade surplus are also considered important factors that pushed the yuan's value to new highs.
Arvedi to install new EAF to feed ESP at Cremona
It is reported that the Italian steelmaker Arvedi will install a 250 tonne Techint EAF-Consteel to supply the liquid steel for its new endless steel production line at Cremona.
The new EAF will be integrated with a Consteel system, the continuous preheating system patented by Techint, and will reach the world wide highest capacity for a single furnace of 300 tonne per hour with 100% scrap feeding. The melting unit will be equipped with Goodfellow EFSOP off gas process control system, the KT oxygen and carbon lime lances for chemical injection and TDRH electrode digital regulation system.
The melting area will be completed by the installation of two Techint 250 tonne ladle furnaces that will operate downstream of the furnace.
Arvedi hopes that this project will guarantee better production, lower costs, and the highest level of quality and reliability in an environmentally friendly plant.
Shouqin officially start 4300mm wide plate mill
Qinhuangdao Shouqin Metal Material Co held ceremony November 22nd to celebrate official startup of the 4300mm wide and thick steel plate project constructed by Shanghai Baoye Construction Corp Ltd. The project was commissioned on October 8th and started trial production from October 20th.
First phase of the plate project has 1.2 million tonnes capacity per year and will eventually reach 1.8 million tonnes.
(Sourced from Mysteel.net)
Centennial hopes for approval for Anvil Hill coal mine in NSW
It is reported that Centennial Coal Company believes that it will get state government approval for a new open cut mine in NSW despite opposition from environmental groups. Mr Kenneth Moss chairman said that he personally believed the mine would be built and operating by 2008.
Mr Robert Cameron MD of centennial coal company said that compared to other mines Anvil is shallower, requires lesser disturbance to the land, and has low sulphur & nitrogen content and is a very environmentally friendly mine. He added that community support for construction of the mine was strong.
Centennial Coals AGM was recently disrupted when a group of around 10 protesters opposed to the development of the proposed Anvil Hill mine in the Hunter Valley.
Sapinsh Nervacero completes bar mill up gradation project
Danieli has completed the double strand bar mill upgrade project at Nervacero SA in Spain. The project began with the installation of the first spooler line, which has been in operation since the end of 2004.
Operating the second line makes it possible for Nervacero to maximize the capacity of the rolling mill for producing coiled bars at rates up to 150 metric tons per hour. The plant will produce products ranging from 8mm to 32mm rebars or plain bars up to 22 mm in up to 3.5 ton compact coils at finishing speeds up to 35 meters per second.
The spooler design is based on twist free winding of hot rolled bars into highly compact, heavy coils. The process makes it possible to unspool the coils smoothly, without cobbles, which facilitates direct feeding to cold processing lines without any intervening steps.
Chinas nonferrous metal scrap output to increase by 20% in 2006
It is reported that China's nonferrous scrap metal production rose quickly in the first three quarters as high prices of non ferrous metals have encouraged more end users to look for scrap metal and that the total nonferrous scrap metals production is estimated to rise by 20% to reach 4.5 million tons this year.
Mr Ma Hongchang deputy secretary general of China Nonferrous Metals Industry Association's Recycling Metal Branch while speaking at the Metal Bulletin's 4th Chinese Aluminium Conference said that Copper output totaled 1.26 million tonnes and scrap aluminium 1.76 million tonnes in January to September up by 19% YoY and 21% YoY respectively. Scrap lead and zinc production rose by 42% YoY and 38% YoY on year to 300,000 and 90,000 tons in the same period.
Mr Hongchang said Despite the adjustment of some scrap export tariffs, The Chinese government will continue to support recycling businesses and scrap metals.
He added that China's imports of scrap copper and aluminium were at 3.48 million tons and 1.27 million tons in January to September 2006 down by 3.5% YoY and up 3% YoY.
Columbus Stainless commissions new magnetic separator
It is reported that SMS Demag South Africa (Pty) Ltd has completed installation and commissioning of a chain driven magnetic separator for Columbus Stainless Steel at Middelburg in South Africa.
The practice of cold-rolling hotrolled strip without prior pickling had overloaded the filtration system on the four high stands. The new magnetic separator ensures precipitation of the emulsion containing residues with very high iron contents, before it flows into the existing filter system this reduces the amount of maintenance required for the existing filter and improves the strip surface quality and cleanliness.
Columbus Stainless is a subsidiary of stainless steel giant Acerinox SA.
Chinese government punishes officials and miners for coal mine accidents
Xinhua news agency reported that Chinese government sacked 2 local government chiefs and their deputies from their posts in Communist Party as well as government and that 7 mine bosses, held responsible for two fatal coal mine gas explosions that killed 249 miners in northwest China's Shaanxi Province and Xinjiang Uygur Autonomous Region, were sentenced to prison.
Shanxi, which produces a quarter of China's coal, announced it would inspect all small coal mines in the next 20 days and close those falling short of safety standards. The State Administration of Work Safety said earlier China will seal off 2,652 small mines each with an annual output of less than 30,000 tons this year and another 2,209 next year. Many Chinese local officials have secretly flouted orders to close mines, fearing loss of tax revenue and in some cases, illicit income from their own stakes in mines.
China has the world's deadliest coal mining industry with fatal accidents almost daily as safety regulations are ignored and production is pushed beyond safe limits in the rush to profit from the energy famished boom economy. Chinese coal mines suffer frequent explosions, flooding and cave ins, claiming about 6,000 lives a year. Unsafe small coal mines account for two-thirds of the total fatalities in mine accidents.
Chinas National coal trading center to come up in Taiyuan
The blueprint of setting coal trading center at Taiyuan in Shanxi Province of China has got experts' nod following permission from NDRC and Ministry of Commerce. Before Taiyuan, several cities including Qinhuangdao and Shanghai all tried to set up national coal trading centers, but only to end in failure. In the meanwhile an industry rumor goes that the Chinese government is planning to establish national coal trading center from 2008. Industry experts say the time is ripe for the establishment of a national coal trading center.
According to Mr Li Xuegang, a veteran coal analyst in Qinhuangdao, now the time is ripe for setting up a national coal trading center. The key problems lie in the confirmation and implementation of several concrete problems such as how to establish the trading center and who to manage it.
A national coal trading center requires convenient transportation and satisfying freightage capacity, modern information communication facilities and E-commerce system, perfect economic risk insurance system as well as sufficient coal supply, says Mr Li Chaolin, a veteran coal marketing observer.
Besides, Mr Li also points out several problems, including unsmooth coal supply, troublesome trading process and high risks, bad faith and scarce transportation capacity. Moreover, he urges as a new thing, coal trading center is not so attractive to coal players and only receives suspicions. Mr Li gives special emphasis to good faith, which he believes is the premise to a stable coal trading center. He also holds regional coal trading centers in China, especially those in coastal regions in South China, should catch up with international coal trading market and accomplish the scientific cycle of exporting coal in North China and importing coal in South China.
(Sourced from Mysteel.net)
Ashakacem plans coal mining at Gombe in Nigeria
Ashakacem PIc plans to spend N5.5 billion in mining the coal reserves, estimated at more than 4.5 million tonnes, at the Akko Local Government Area in Gombe state of Nigeria. Mining would commence in October 2007 and the company would start using the coal for its production activities in January 2008.
Mr Alhaji Bakura Bajoga the spokesman of the company while speaking to the newsmen said that exploration has already started and that the company had paid the necessary compensation. He said that the communities displaced as a result of the mining activities would also benefit in terms of being provided with adequate social amenities, where they would be resettled.
China to modernize Yangtze River waterway
Chinese government is planning to invest $1.875 billion in the next 5 years to modernize the Yangtze River waterway as a part of China's 11th Five Year Plan. The money will be mainly used for waterway management, port construction, ship building standardization and shipping security projects.
The Yangtze River now handles 80 %f the iron ore, 72% of the crude oil, and 83% of the coal produced by enterprises along the river. By the end of this year, shipping capacity on the Yangtze River is expected to hit 990 million tons, and will grow to 1.3 billion tons by the year 2010.
The Yangtze River is China's longest and the world's third longest river has overtaken the Mississippi and the Rhine to become the world's No. 1 inland waterway in terms of shipping capacity. Total shipping capacity on the Yangtze River is equal to that of four to six rail routes of the same length, while shipping costs are only one sixth that of the railways and one 28th that of highways.
TGTI Commissions Two EFSOPs in South Africa
Techint Goodfellow Technologies Inc has installed two of its Expert Furnace System Optimization Process systems recently at Cape Gate (Pty) Ltd in Vanderbijlpark and Cape Town Iron & Steel Works (Pty) Ltd in Kuilsrivier in South Africa.
The system uses off gases collected from the electric furnace to analyze O2, H2, CO and CO2 in real time.
Cape Gate (Pty) Ltd is a family owned company producing wire and steel products and supplying its own raw materials. Murray & Roberts subsidiary Cape Town Iron & Steel is a scrap based mini mill producing reinforcing steel.
