March, 11 2007
SAIL to set up specialized SEZ at Salem
ET reported last week that Steel Authority of India Limited is planning to set up a 250 acres product specific special economic zone at unutilized land at its existing stainless steel facility in Salem and is likely to apply for clearance of its SEZ proposal once the central government lifts the present freeze on fresh applications.
Mr SK Roongta chairman of SAIL told ET. Sail owns 150,000 acres of land across the country and some of this could easily be utilized to develop the SEZ. To begin with, we are looking at developing a stainless steel based SEZ at spare land near our Salem Steel Plant.
SAIL would invite investments from several downstream stainless steel-based industries in its proposed SEZ. Special steel producers and other vendors may also be permitted to set their shop in the zone. Dedicated port facilities for the SEZ may also be considered.
As SAIL owns about 3,500 acres of land at Salem Steel Plant and a portion could be used for setting up SEZ, it would not face the main hurdle of land acquisition for setting up SEZ, as being faced by all players.
Kalinga Nagar blockade finally lifted
Statesman News Service reported that the 430 day old road blockade by the tribal of Kalinga Nagar has ended as the agitators removed the obstruction in response to a High Court order.
As per report, although the blockade on the Express Highway has been removed, truckers are still avoiding the area fearing any trouble and only a handful of trucks have started plying.
The leaders of agitating tribal outfit Visthapan Virodhi Janmanch have however announced that their opposition to displacement by TATA Steels project would continue till all the issues involved is resolved through dialogue at the highest political level.
The agitators, who are strongly opposing the proposed steel plant of TATA Steel in the Kalinga Nagar industrial complex area, have been blocking the highway since January 2nd 2006 to protest against the police firing in which 13 of their men and women were killed.
NCL to form power JVs with UPRVUN and NCL
Coal India Limiteds subsidiary Northern Coalfield Limited is planning to form two 30:70 JVs with Uttar Pradesh Rajya Vidyut Utpadan Nigam and Neyveli Lignite Corporation to set up 2 separate 1,000 MW coal fired thermal stations at a total investment of INR 8,000 crore. NCL will be supplying the required quantity of coal for both the plants.
Mr VK Singh CMD of NCL told reporters that NCL has received in principle approvals from Coal India Limited for setting up these JVs. This will now be followed by preparation of detailed project reports for both plants and relevant approvals from the coal ministry.
The JV with UPRVUNL is likely to come up at Anpara in Uttar Pradesh where the latter already has an installed capacity of 1,630 MW through two 500 MW units and three 210 MW units.
The JV with Neyveli Lignite Corp will come up in Madhya Pradesh at Sasan.
Each of the JVs will require investments of INR 4,000 crore of which INR 1,200 crore will be infused by way of promoters equity. NCL will infuse INR 360 crore as equity in each of these companies.
M&M acquires Punjab Tractors
Indias largest tractor company Mahindra & Mahindra acquired the controlling stake in Punjab Tractors Ltd, out bidding Hinduja Groups Ashok Leyland. M&M has acquired the 43.5 % stake from private equity fund Actis and the New Delhi based Burman family after it revised its initial bid of INR 340 a share to INR 360.
Post acquisition M&M will launch a 20% mandatory open offer for retail shareholders of PTL.
PTL is jointly promoted by the Punjab State Industrial Development Corporation and the Central Mechanical Engineering Research Institute.
The acquisition will increase M&Ms domestic market share to 40% from 30% currently followed by Tafe with a 23% market share, Escorts with 13.5%, Sonalika with 11%, Ford New Holland with 4.5%, John Deere with 3.5% and HMT with 1.8%. However its global rankings will stay at 4th after John Deere, AGCO and Case New Holland.
Bhilwara Energy to set up hydropower projects in Arunachal
It is reported that LNJ Bhilwara Groups Bhilwara Energy Ltd has signed a MoU with the Arunachal Pradesh Government for development of 3 hydropower projects with a total capacity of 290 MW at an investment of about INR 1,700 crore. BEL plans to furnish DPR to the Government for approval in the next 12 months to 15 months and to commence work on the project towards the middle of 2008.
The project will be implemented in 3 phases of 98 MW, 97 MW and 95 MW each with an ultimate target of generating about 1,300 million units of power annually on 50% plant load factor. However the final ratings and capacity will be decided after completion of detailed project report.
The land and site required by BEL for construction, operation and maintenance of the project will be provided by the state government on a 40 year lease. Bhilwara Energy will be making its own arrangements for evacuation and distribution of power from the site. Bhilwara Energy will provide 12% of the generated power to Arunachal Pradesh free of cost for the designated period.
TATA Motors acquires Nissan facility in South Africa
It is reported that TATA Internationals subsidiary TATA Africa has acquired a manufacturing facility located in Pretoria near Johannesburg in South Africa, which was previously owned and operated by Nissan Motor of Japan.
As per reports, TATA Group is now in the process of conducting the due diligence for working out the modalities of using the facility to set up a manufacturing and car assembly plant that will possibly be used to roll out the Tata Indica and the Indigo sedan for the South African market.
The new manufacturing outfit would also be used to launch Tata vehicles into the European market. Tata Motors will attempt to leverage the free trade agreement that currently exists between European Union and South Africa.
Mr Ratan Tata MD of Tata groups while talking to visiting journalists at the Tata exhibit in the Geneva Auto Show 2007 said that the demand cycles in the automobile industry during the past have shown that the company cannot depend on one market alone anymore. He said that "We have to protect against a downturn in any one economy by having a global footprint covering many geographies."
PGCIL gets MOU Excellence Award for 2004-05 & 2005-06
Ministry of heavy industries & public enterprises has awarded the prestigious MOU Excellence Award to Power Grid Corporation of India Ltd for 2 consecutive years for being amongst the top 10 public sector enterprises. Dr Manmohan Singh Prime Minister of India during a conference of heads of public sector undertakings has presented these awards to Dr RP Singh CMD of PGCIL.
Dr RP Singh CMD of PGCIL has also been awarded the Scope Award for Excellence and Outstanding Contribution to the Public Sector Management Individual category for the year 2005-06 in recognition of his leadership and contribution towards growth of PGCIL as well as Indian Power Sector. A Gold Plaque and a cash amount of INR 100,000 were presented to him.
Dr Singh has been closely associated with the Power Sector for 35 years covering critical areas of Generation, Transmission, and Large System Operation & Distribution. He has served with distinction premier Organizations like TISCO, NTPC & POWERGRID. He has been chairman of PGCIL since November 1996. Dr Singh has imparted great impetus to the setting up of National Grid and modernization of Load Dispatch Centers leading to almost uninterrupted grid availability and huge National savings.
Mumbai harbor deepening project approved
Mr TR Baalu minister of shipping, road transport and highways informed Lok Sabha said that Indian government has approved a project for deepening and widening of the Mumbai Harbour Channel and JN Port Channel at the Jawaharlal Nehru Port in Sheva at an estimated cost of INR 800 crore. The project is scheduled to be completed within a period of 27 months from the date of issue of work order.
The project involves dredging for increasing the maintained depth, width and the length of the port channel so as to facilitate handling of vessels requiring draft up to 14 meter using tidal window as against 12.5 meter draft vessels at present.
CVRD claims to become top global nickel producer
Cia Vale do Rio Doce announced that it has surpassed OAO GMK Norilsk Nickel as the world's biggest nickel producer in 2006. CVRD took the top spot in nickel production after it acquired Canada's Inco Ltd for USD 17.4 billion in October 2006 and had acquired all the shares by January.
Mr Fabio Barbosa CFO of CVRD told reporters that CVRD produced 250,600 tonnes of nickel in 2006.
Moscow based Norilsk announced earlier in January 2007 that it produced 244,000 tonnes of nickel in 2006.
Shougang to reduce production during Olympics
Xinhua reported that Beijing Shougang steel company formerly known as Beijing Capital Iron and Steel Group, one of the Beijing's worst polluters, will continue to operate during the 2008 Olympic Games, but at a minimum level.
Mr Zhu Jimin chairman of Shougang, which had previously indicated it might suspend production during the Olympics, said that the production will continue but would be reduced from 8 million to 4 million tons this year and minimum operations will be maintained during the Games.
Mr Zhu said that the company had already started to reduce production with the closure of a 2 million ton production facility and a furnace with a capacity of 700,000 tons. He added that the company would maintain a capacity of four million tons during the Beijing Olympics, when its operations would be strictly carried out in line with government instructions.
The Shougang group started to relocate production in 2005 to Caofeidian, an island between Tanggu New Port and Qinhuangdao Port, 225 kilometer southeast of Beijing and 85 kilometer south of Tangshan in Hebei. According to a plan approved in 2005 by the State Council, China's cabinet, the steel company is expected to move all its Beijing based production facilities to Caofeidian by 2010. Construction of a new plant in Caofeidian will begin operations by the end of next year with an annual capacity of 9.75 million tons.
Vallourec 2006 acquisition highlights
During 2006, Vallourec continued to strengthen its portfolio of activities by making several disposals and acquisitions and by increasing its investment programs as under.
1. Vallourec established its first operations in India by acquiring 75% of CST Ltd, specialised in tubes for power plant condensers and feed waters heaters.
2. It also acquired SMFI a French company that supplements the Group's drilling products activity.
3. Vallourec also increased to 95% its stake in its subsidiary Valtimet specialised in stainless steel and titanium welded tubes for power generation by buying, for USD 75 million 43.7% of the share capital from the Timet group with which it had formed this joint venture in 1997.
4. At the end of 2006, Vallourec kicked off the process for the disposal of its precision tubes activity by signing a preliminary agreement for the sale to Salzgitter of its French subsidiary VPE and the hot rolled tubes plant in Zeithain Subject to securing the necessary authorizations this disposal could be finalized by the end of May 2007. Consolidated sales for 2007 would thus be reduced by around EUR 115 million.
5. In September 2006 Vallourec inaugurated in Changzhou (China) a new finishing plant for tubes aimed at the power generation market. This plant has a capacity of around 20,000 tonnes per annum. Also in Changzhou, the Group launched the construction of a threading plant for OCTG tubes with production scheduled to begin in mid 2007 with a capacity of around 50,000 tonnes per annum.
6. In 2006 Vallourec pursued its investment programme aimed primarily at increasing the Group's heat treatment capacity to 50% of its total production in 2007.
RBCTs February coal exports likely to be up
Mining Weekly Online reported that Richards Bay Coal Terminal RBCT is expected to report a significant increase in exports for February 2007 mainly due to European demand picking up and improved efficiencies at the terminal.
Mr Khuseni Dlamini chairperson of RBCT while speaking in a telephone interview with Mining Weekly Online said that it had taken a bit of time for the European winter to arrive, which was partly to blame for a decline in the January coal exports. He added however, things had now picked up again and Europe was getting back to business.
Mr Dlamini said that the February figures had not been released yet but in January 2007, 3.98 million tonnes of coal were exported through the terminal, significantly lower than volumes recorded in January 2005. Mr Dlamini attributed the decline to a warmer winter being experienced in Europe.
Bloomberg News, citing an unnamed official, reported that RBCT shipped 13% YoY more coal in February 2007. As per report, it shipped 6.19 million tonnes of coal in February 2007 as compared with the 5.49 million tonnes in February 2006.
Shougang drops Thai steel project and looking at alternates
It is reported that Chinas leading steelmaker Shougang Corp is examining alternate sites in Southeast Asia to build a steel mill after scrapping a THB 100 project in Thailand following the military coup.
Mr Zhu Jimin chairman of Shougang Corp at the annual meeting of the Chinese legislature said that We dropped the plan because we're concerned about the political situation in Thailand.''
China's drive to slow investment in the steel industry is spurring Shougang and rivals to study building mills elsewhere in Asia, where demand for buildings and roads is also surging. Chinese mills are turning to expand overseas following an overcapacity in domestic market. Indonesia and Cambodia have iron ore resources and Vietnam is also a good place for a Chinese steelmakers to consider and is mainly to tap local demand.
CVRD to increase iron ore shipments to China in 2007
An overseas media report said that Companhia Vale de Rio Doce forecast iron ore shipment to China at 100 million tonne for 2007.
Mr Fabio Barbosa CFO of CVRD at a press conference said that CVRD would substantially push up export volume to China this year as China's economy shall grow faster than the global average.
Mr Fabio Barbosa said CVRD has become the largest ore supplier to China by shipping 77.873 million tonne in 2006.
(Source from mysteel.net)
Handan Steel to cross 8 million tonnes in 2007
Chinese steel maker Handan Steel's steel output is expected to climb to 8 million tonnes in 2007.
Mr Liu Rujun board chairman of the group told Reuters that Handan Steel upgraded its products during recent years depending on energy conservation and consumption reduction rather than industrial scale expansion, in line with industry policies and government's requirements. Mr Liu said "Output growth in this year will be contributed by full capacities realization."
Mr Liu also disclosed that the steelmakers had made some investments in mines and ports as well as early contacts and negotiations with some Australian miners. He said "Cooperation right away will cost too much. We should wait for a proper time. Besides, we are also trying to find some domestic cooperators. We are also interested in being listed abroad, but now it is only a plan, without any detailed time table."
Mr Liu predicted a slightly fluctuated steel industry in the latter half of this year after calm operation in the first half. Meanwhile he expected a modest growth of flat steel products consumption in 2007, in view of China's revitalization of equipment manufacturing industry yet with possibly declined growth rate.
(Sourced from MySteel.net)
Alchevsks finished output up by 6.7% YoY in 2 months
Industrial Union of Donbass Luhansk region based Alchevsk Iron & Steel Works announced that it has increased finished roll output tentatively by 6.7% YoY during January to February 2007 to 526,000 tonnes. It also increased crude steel production 5.1% YoY in the two months to 614,000 tonnes.
Unions at Peruvian zinc producer Volcan threatening strike
Metals Insider has reported that union leaders representing workers at Peruvian zinc lead miner Volcan have been making vague threats of strike action for some weeks now and they have now upped the ante by threatening to lodge a formal strike notice for March 19th 2007.
Volcan is Perus biggest producer with output last year of around 233,000 tonnes contained zinc and 65,500 tonnes of contained lead
Anshan Dongya to commission new CR strip line
It is reported that Anshan Dongva Steel located in Chinas northeastern area plans to set up a USD 40.6 million steel project with a producing capacity of 50,000 tonnes austenitic and ferritic CR stainless steel.
Products made by this new stainless line are strips in width 40mm to 650mm in thickness range of 0.03mm to 0.6mm which can be applied for instruments and auto accessories. The sales volume is expected to reach annual CNY 1.5 billion after completion.
Liberian senate committee begins hearing into Mittal Steel agreement
It is reported that Liberias Environmental Protection Agency announced last week that Mittal Steel will not be allowed to commence any operation until it meets the policies and guidelines instituted in the Environmental Laws of Liberia.
Mr Ben Donnie ED of EPA, while speaking at Mittal Steel's first hearing before the Senate Committee on Lands, Mines, Energy, Natural Resources and the Environment last week said that until Mittal Steel gets the requisite environmental management control certificates, mining operations at the company will be vehemently opposed despite any passage of the agreement by the Senate.
Mr Donnie said EPA standards and guidelines have been presented to the management of Mittal Steel and it is our hope that a realistic importance will be attached as it is required to submit to the EPA its environmental management plan in order to obtained absolute guarantee from both sides. He then said that Mittal Steel's obligation to the people and the Environmental will be taken into consideration.
The Mittal Steel agreement was initially signed by the National Transitional Government of Liberia but was later reviewed by the Unity Party led government. According to the agreement signed, the Mittal Steel Company will be investing USD 1 billion over the period of five years. Mittal Steel will be able to mine iron ore at Mount Nimba located in the northern part of Liberia.
Protesters interrupt operations at CVRD mine in Brazil
It is reported that Brazil's landless farmers blocked access to a mine run by mining giant Companhia Vale do Rio Doce protesting the impact of big companies on the poor.
Local media said that protesters took over the road leading to the Capao Xavier mine early in the state of Minas Gerais preventing the production of 12,000 tons of iron ore. Officials from the Agrarian Reform Department asked the protesters to move to the Mineirao stadium in Belo Horizonte where some non governmental organizations were gathering to protest.
CVRD said the protest was not justified as it has invested BRL 300 million in social and environmental projects in 2006 and expects to invest USD 4.6 billion and employ 43,000 people in Brazil this year.
PSM to post operating profit this year
Daily News reported that Pakistan Steel Mills is likely to earn operating profit of PKR 1.5 to PKR 2 billion with record sales of products worth PKR 29 billion during the current fiscal as against operating loss of PKR 1.8 billion and sales of PKR 20 billion in the last fiscal.
Retired Major General Muhammad Javed chairman of PSM while addressing a press conference said that the total profit including the operating profit would reach INR 3 billion and that the capacity utilization in the current fiscal would be 85% to 90% as against 62% in 2006. He said that PSM sold products worth INR 2.95 billion in February 2007 and that the March sales are likely to hit INR 3 billion, highest ever in the history of PSM.
He also informed about PKR 4 billion capital repairs with foreign collaboration, which on completion in May 2009 would result in sustained production of 1.1 million tonnes per annum for next 15 years to 20 years.
Zinifex resumes work at Port Pirie smelter
Zinifex said that an assessment team, comprising both in house specialists and state inspectors has given the OK for work to resume in the part of the Port Pirie smelter that saw one worker seriously injured by an explosion of molten metal.
Zenifex said the effect on production at Port Pirie which is primarily a refined lead producer and is expected to be negligible.
Unity Power files case over Margam mining license
It is reported that Welsh based energy group Unity Power is seeking to overturn a decision by the Coal Authority to offer a license to extract coking coal at Margam to Corus at the High Court. Unity, which lodged its legal challenge under the name of its Neath based mine Abbey, which was recently renamed Unity Mine, has been given a hearing date of March 29th 2007 in London.
Unity launched a legal challenge after the Coal Authority upheld its decision in favor of Corus, following an appeal.
Modal Mining was initially offered the license to mine coal at Margam on the doorstep of Corus's steel slab making facility at Port Talbot in 1998. However, because of a global downturn in coal prices, exploitation was not viable at that time. The Coal Authority then withdrew the license to Modal Mining in 2004. Competing bids were made by Tower Colliery and Corus, which resulted in an offer of the license being made to Corus last year.
The Coal Authority is the UKs government body charged with overseeing the awarding of mining licenses in the UK. It awards around 40 licenses a year. However, this is the first time that one of its decisions will be subject of a judicial review.
Donetsks crude steel up by 30% YoY in 2 months
Interfax reported that Ukraine's Donetsk Metallurgical Plant raised finished roll output tentatively by 30.1% YoY in January to February 2007 to 121,000 tonnes including 58,000 tonnes in February. Its crude steel output rose by 30% to 160,000 tonnes but pig iron was unchanged at 118,000 tonnes.
The plant produces 290 types of sections, bars, shaped steel, steel plate and ship building steel.
Scrap prices increasing in Turkey
It is reported that due to the strong market demand the scrap prices imported to Turkey have reached to around USD 360 per tonne CFR. The scrap prices have been about USD 80 per tonne up since mid December 2006.
As per reports, the CFR prices to Turkey in recent contracts concluded were as ex Europe USD 359 per ton for HMS1, USD 364 per ton for shredded scrap and USD 339 per ton for HMS1&2 (60/40) respectively.
Pakistan suspends Chief Justice
General Pervez Musharraf president of Pakistan has suspended the Chief Justice of Pakistan Justice Iftikhar Mohammad Chaudhry for alleged misconduct and misuse of authority and has appointed the senior most Justice Javed Iqbal as the acting Chief Justice of the Supreme Court.
President has also sent a reference under Article 209 of the Constitution to the Supreme Judicial Council to investigate allegations of misconduct against Justice Chaudhry. According to reports, if the newly constituted judicial council found Justice Chaudhry guilty of the charges, he would be removed from office.
Justice Chaudhry took office in June 2005 for tenure that could last eight years before reaching the retirement age of 65 years. A nine judge bench headed by him stunned the government in August 2006 by scrapping the privatization of the Pakistan Steel Mills saying that it was sold in indecent haste and in violation of rules.
Norilsk Nickel to buy all newly issued shares in WGC-3
RIA Novosti reported that Norilsk Nickel will buy all the newly issued shares of the wholesale generating company WGC-3 controlled by the Unified Energy System. The additional share issue by WGC-3 is the first initial public offering in the history of Russian electricity sector in favor of a private strategic investor.
Mr Alexander Chikunov head of WGC-3 said "After all the bids were studied, Norilsk Nickel was chosen as the strategic investor who will buy all the newly issued shares in WGC-3. WGC-3 has issued 18 billion ordinary shares at RUB 4.54 per share.
The press service of UES said the entire additional share issue totaled RUB 81.72 billion and bids from investors were accepted until March 9. Following the IPO, UES will reduce its stake in WGC-3 from 59.72% to 37.08%. WGC-3 plans to invest the money in new power generating units on Russian territory.
Norilsk Nickel, the world's leading producer of nickel and palladium, has been selected out of eight major Russian and foreign companies, which also included Italy's Enel, Russia's Gazenergoprom, Finland's Fortum, and Russia's Mechel Group.
AIGCO commissions first phase of gas facilities at Zamil Steel
It is reported that Arabian Industrial Gas Company has recently commissioned the pipeline network and installed storage tanks for liquid oxygen, liquid carbon dioxide and LPG for Zamil Steel at Ras-al-Khaimah in UAE.
Zamil Steel, with the improved supplies of industrial gases, would now be able to produce about 40,000 tonnes per year of pre engineered steel buildings, open web steel joists and floor decking.
AIGCO will also handle Zamil Steels needs for the second phase of this project, scheduled to be operational by the end of 2007.
