Indian steel ministry sees iron ore exports as threat to domestic industry

Indian steel ministry has expressed deep concern over the rise in iron ore exports over last 5 years terming it as a serious threat to the growth of domestic steel industry.

Mr RS Pandey secretary steel while speaking on the sidelines of a seminar told reporters that from 41 million tonnes in 2001-02, iron ore exports had more than doubled to 100 million tonnes as per latest estimates. He said there had been a phenomenal rise in iron ore exports over the last few years where exports should not take place at the cost of the domestic industry. He said that steel ministry was of the view that iron ore that were being exported should be made available to the domestic industry on a long term basis to support the growth which was estimated to be in the range of 11% to 12% during the 11th Five Year Plan.

Mr Pandey said that the steel ministry had taken up the matter with the government following which the issue was now being dealt with by the Group of Ministers

On the issue of iron ore linkages to domestic steel makers, Mr Pandey said this was also an important matter as huge quantum of investments would flow into the steel sector only when this was properly addressed.

Mr Pandey said By 2010-11, we are looking at a production base of 80 million tonnes and it may go up to 200 million tonne in 2020. He added that by 2015-16, India would be the second largest steelmaker in the world.

Land acquisition drive leaves a trail of blood in West Bengal

As per media reports, 11 people were killed and many more seriously injured in West Bengal in violent incidents related to villagers protesting against the acquisition of land for a special economic zone at Nandigram area.

According to reports, police entered the disputed area, which has been a forbidden zone since January 2007 when 6 people were killed in a similar clash, from three sides, Chandipur, Tekhali Bridge and Bhangabera Bridge, with an aim to encircle Nandigram. People gathered at several points to stop them by digging up roads and erecting barricades. Thousands of people, armed with bamboo sticks, came out of their homes. It turned into a battleground again as police entered the villages and clashed with thousands of villagers.

West Bengal government plans to acquire 22,000 acres of land and build a petrochemical plant and shipyard in a Special Economic Zone in Nandigram.

Those disturbances prompted the government to temporarily suspend plans for scores of special economic zones, which are meant to attract investors with generous tax breaks. Most of the zones are to be built on farmland. Critics say this is destined to become the biggest land grab in post-colonial India, given the lack of transparency and rampant corruption in government.

The violence has ignited a national debate over whether farms should be razed for factories in India, where about two thirds of the country's more than 1 billion people live off agriculture.

SAIL on mega growth path

Indian steel leader Steel Authority of India Limited plans to utilize all the opportunities of growth in the country and utilize its inherent strengths and assets to turn the challenges into opportunities.

Mr SK Roongta chairman of SAIL while addressing a national seminar at management training institute at SAIL Ranchi said that the steel sector was earlier termed as a graveyard industry but it has now revived with a new found confidence to stand up global competition.

He said that there will be great demand for steel in the near future and there can be no better time for Indian economy and especially for steel sector and SAIL to move ahead. He said that India and other developing countries will need a lot of steel in the future and if the capacity is not enhanced there may be short supply.

Mr Roongta said that while SAIL has already embarked upon capacity enhancement of the existing plants from 12.5 million tonnes to 23 million tonnes, they are other plans also to increase its capacity including acquisitions and new Greenfield projects. He told that We have entrusted MECON to find out a suitable site for the steel plant at Jharkhand with an initial capacity of 6 million tons.

Indian coal & steel sector growth slowing down

Indias 6 core infrastructure industries' output grew by 8.4% during the April 2006 to January 2007 as against 5.8% in 2006 despite slowdown in production of cement, finished steel and coal. The 6 core industries' production grew by 8.7% in January 2007 as against 8.2% in January 2006.

In million tonnes

The comparison of growth during April 2006 to January 2007 with April 2005 to January 2006 is as under

Siemens & BHEL consortium to construct HVDC link

A consortium of Siemens Power Transmission and Distribution and Bharat Heavy Electricals Ltd has been awarded an order worth EUR 235 million by the Power Grid Corporation of India Ltd to construct a World Bank funded 780 kilometer long high voltage direct current transmission route between the provinces of Uttar Pradesh and Rajasthan. Final commissioning is scheduled for November 2009.

The purpose of the new HVDC transmission system is to strengthen the power supply to the growing region around New Delhi without the need to build additional power plants. In comparison to a conventional 400 kV AC transmission line this HVDC transmission link improves energy efficiency so that 688.000 tons of CO2 per year will be saved.

As head of the consortium, Siemens has overall responsibility for the project, including the design of the complete HVDC transmission system. Siemens will deliver the bulk of the core components such as converter valves, converter transformers, smoothing reactors, protection and control systems, and the AC and DC filters. The company is also undertaking the transport functions, construction work and the installation and start-up of the HVDC transmission system. The consortium partner BHEL is supplying the converter transformers for the Bhiwadi converter station and components of the AC switchgear for both converter stations.

The new long distance HVDC transmission link is the second system that Siemens is building in India. The first HVDC transmission route was the East-South long distance link, which still currently ranks as the second longest HVDC transmission link in the world.

TATA restarts talks on investment plans in Bangladesh

It is reported that TATA Group has restarted its earlier abandoned investment talks in Bangladesh with officials of the new government.

Mr S Manzer Hussain resident director of TATA group in Bangladesh told media that "Recently I met a key government adviser and discussed how we could take the proposals forward. We also met the chief of the Board of Investment as it is the key player in this regard. We want to restart our negotiations but we are not sure how far the interim government can go as it is a major decision.

Mr Manzer said "Now we are waiting for a response from them. The status of our proposals remains unchanged and we also understand the limitations of this interim government. But we cannot wait for an uncertain period. We are yet to get any indication regarding resumption of talks" on the investment proposals."

TATA Group expressed its interest in investments in Bangladesh in 2003 and offered its final revised proposal in April 2006for its USD 3 billion investment plans in Bangladesh in October 2004 for setting up a steel plant, a fertilizer factory project and call & gas based power plants. However, the Government led by Bangladesh Nationalist Party had postponed its decision on the proposal, leaving it to a popular government after the parliamentary elections to take a final decision.

PSL bags order for KG Basin pipeline project

PSL Ltd has recently bagged an order worth USD 21 million for the gas field known as KG-DNN-98/3, within the KG Basin in the Bay of Bengal.

Mr DN Sehgal director of PSL said "The gas find being developed by RIL lies in Water Depths ranging from 400 meters in the Northwest to over 2000 meters in the South ease, and requires very special anti corrosion and offshore concrete weight coating. The work is to be carried out with an extremely tight schedule demanding high levels of technical competence since the first two lots of Bare Line Pipe have already been received by the Company at its coating yard in Vizag."

The scope work also includes the design, engineering, supply, and installation of sacrificial anodes, fabrication and coating of induction bends, and other allied works like fabrication of spools at Kakinada.

PSL has established onshore and offshore pipe coating yards at Kakinada in addition to the existing API certified pipe mills and coating yards at Vizag.

NTPC plans to set up power equipment subsidiary

ET reported that The National Thermal Power Corporation is keen to venture into power equipment spares manufacturing and servicing power equipment, as the existing power equipment manufacturers are busy supplying equipment to large capacity new projects that affect their capacity to cater to the rising demand for spares and supply of equipment for existing thermal power plants.

NTPC said that to cater to this demand a large number of power generators are adding to their present capacity resulting in all power equipment manufacturers & suppliers reaching full capacity and that some of the existing power equipment suppliers are not being able to keep their commitment of time with respect to maintenance and servicing required.

As per report, NTPC management is looking at the possibility of floating a subsidiary that will undertake manufacture of spare parts, equipment and components for the power plants. It is also looking at the possibility of undertaking maintenance and repair jobs through this subsidiary.

The report mentions that NTPC has already initiated a pilot project at its existing thermal power station at Rihand in Uttar Pradesh to set up a maintenance workshop for its existing power units. Another similar project is likely to come up in some other locations and the decision to set up the subsidiary will hinge on the success of these pilot projects.

Land acquisition may delay CCLs 5 projects

BS reported that Coal India Limiteds Central Coalfields Ltd, despite having achievement of recorded highest profit of INR 773 crore during April to February 2007 period, may still miss its 11th Five Year Plan production target of 78 million tones due to delay in land acquisition for its proposed new projects to achieve these volumes by 2012.

Mr RP Ritolia CMD of CCL told Business Standard that the enhanced target of 78 million tonnes during the terminal year 11th Five Year Plan would be produced from five new mines at Magadh, Amrapali, North Urimari Karo and Konar besides enhancing the production from the existing mines. He said these 5 new mines would be developed with a capital expenditure of INR 1854 crores

Mr Ritolia however expressed concern over the delay in possession of the lands for the new projects. The delay in possession of the land for the new projects was due to strong resistance of the land losers with the support of the locals who have been demanding increased rate of land compensation, employment and other amenities.

The report mentions as some insiders as saying that despite taking up five new projects during X Five year Plan period not even 50% land for the proposed coal projects had come to the possession of the company. A senior CCL official told Business standard that CCL management had been maintaining constant touch with the concerned state government officials for the expedition of the land possession required for the proposed five coal projects.

China's unyielding trade surplus growth

Xinhua reported that China's rapidly swelling trade surplus in the first two months of this year astonished experts, who believed it was mainly attributable to the nation's trade structure and soaring exports in anticipation of lower tax rebates and appreciation of the RMB. According to customs data, the processing trade accounted for 80% of the surplus of which foreign funded enterprises made up an overwhelmingly large proportion. Given the sustained rapid growth in the global economy it is difficult for China to reduce the surplus in the short term.

Mr Yi Xianrong a renowned economist with the Chinese Academy of Social Sciences said "The situation will probably remain largely unchanged in the next decade. The Shenyin Wanguo Securities predicted that this year China's trade surplus would exceed USD 210 billion a growth of USD 40 billion from the 2006 level

Ms Mei Xinyu a research fellow with the Research Institute of International Trade and Economic Cooperation under the Ministry of Commerce said that appreciation of the yuan has in the short term meant increased revenues for exporters, while imported primary products, which were less costly led to a slower rise in the value of imports.

The relatively slow growth in arrivals was also ascribed to less demand for imports that have been substituted by domestically made products. Some other experts said the fast growth in exports was attributable to strong demand for China made products worldwide. Greater export activity by domestic enterprises in anticipation of lower tax rebates and RMB appreciation, also contributed significantly to the rapid growth, experts believe. Generally speaking, the RMB's sustained appreciation will help dampen Chinese exporters' earnings in the long run.

Remedies were suggested for mitigating the huge trade surplus, including taking tough measures to squeeze export bubbles, increasing domestic demand, readjusting export related taxes and expanding imports, particularly of new and high technology products and energy efficient equipment. Mr Zhang Jiao, a national political consultant, believed the conditions were ready for scrapping tax rebates on exports. Other experts said it was necessary to further ease foreign exchange controls so as to encourage more Chinese firms to invest abroad. Some national legislators have suggested that monetary policy be readjusted to curb the inrush of hot money. Interest rates on deposits should be maintained at a low level, while interest rates on loans and the required reserve ratio for commercial banks should be kept high, they said.

According to customs sources the trade surplus for the first two months amounted to USD 39.6 billion, USD 27.6 billion higher than the same period last year. It exceeded the surplus for the Q1 in 2006 and amounted to 22% of the whole 2006 figure.

Corus to cut carcinogenic emissions in the Netherlands

According to the Amsterdam Daily Het Parool.Corus is planning to reduce emissions of potentially carcinogenic policyclic aromatic hyrdocarbons in the Netherlands over the next two years ahead of a forthcoming government standard

As per report the Corus has reached agreement with its central council and union FNV-Bondgenoten to cut PAH emissions from 2000 nanogrammes per cubic metre of air to 150 nanogrammes per cubic metre by 2009

At present the Netherlands has no legal limit on such emissions but the Minister of Social Affairs and Employment is expected to put new norms into effect in the near future once a commission of government authorities, employers and unions finally agrees on how to advise him.

Corus decided to take action on its own and a spokesman told Het Parool that We do not expect the Minister's advice to be any stricter, because the unions, on behalf of the workers, agreed to this phase-out over three years.

According to studies occupational exposure to PAH, a term applied to hundreds of chemical compounds released when organic material is burned, can increase the risk of cancer.

Chinas top steel leaders in M & A discussions

During the NPC session, top level leaders from five Chinas domestic steel making titans expressed their minds as to M&A, a hot issue over the sector, reported by Shanghai Securities News.

Mr Liu Rujun board chairman of Handan Steel disclosed that Handan Steel's west side 5 million tonnes per year flat product project is under way. As per the requirement to diversify the investors, the company is in negotiation with BaoSteel in co funding the project. Mr Liu agreed that M&A is a trend for the steel sector in global context and the campaign should be pushed forward on mutual-benefit basis by sharing each other the resources, technology and complementing each other.

Mr Lin Donglu board chairman of Baotou Steel said that it has submitted the 3rd phase 5 million tonnes per year steel project plan to the NDRC with the feasibility report soon to complete. The CYN 20 billion investment involved new item may seek co op from Baotou Steel in the form of technical support. As to consolidation in South Hebei Province, where private mills dominate the market, Mr Liu said different ways are needed compared with that taken by northern mills for reorganization. Regarding combination of the two groups, Mr Lin said they are complementary to each other in terms of product mix and technology. Baotou Steel boasts resource and regional advantages while Baosteel will favor the other by offering advanced management and technology, esp. its flats producing techniques will greatly aid Baotou Steel's new item. Further, Baotou Steel makes seamless pipe that Baotou Steel doesn't. Mr Lin revealed achieving tie up of the two might require solving of some deep-rooted problems, while Baosteel's suppor
t to the new project is a drive-up to Inner Mongolia economy. The new project will involve exploitation of coalfield, oilfield and gas field in the west and making of pipe products.

Mr Ai Baojun general manager of Baosteel Group said that Baosteel has not mapped specific plans about financing or overseas listing, while would continue to enhance coop with domestic and overseas enterprises. Mr Ai said he looked to see formation of some congregates in China, as this would spur sharing of technical resources, improvement of service system and upgrading of product mix. Baosteel will go on the road of cooperating with other enterprises, Mr Ai expressed his opinion, the domestic market may provide more chances for M&A and it would be better to focus on domestic market for the moment. Mr Ai commented on the lately achieved merger with Bayi Steel, saying Bayi is a good regional enterprise to combine with.

Mr Zhu Jimin chairman of Shougang Group disclosed the plan of ruling out 4 million tonnes capacity this year and said the Caofeidian project will produce mainly shipbuilding plate, high layer construction steel, oil and gas pipeline, automobile steel sheet and silicon steel etc once put into operation. About M&A, the group is thinking of other targets aside from the Caifeidian item it engaged in together with Tangshan Steel. The group also considers expansion to the overseas steel circle, according to Mr Zhu. Mr Zhu mentioned specific conditions should be pondered, in M&A cases, to see whether a domestic target is a good choice or better to absorb fund from abroad.

Mr Wang Tianyi chairman of Tangshan Steel said that he is supportive of qualified enterprises to make cross-region takeover, and said Tanggang will inevitably launch integrated listing in future. Last year, Tangshan Steel, Xuanhua Steel and Chengde Steel formed the new Tanggang. As the new company still contains two entities and two public units in it, Mr Wang said it would be further consolidated so as to show merger superiority. After the first-step, Tanggang had a combined output of 19mt and gained record-high profit level last year. The company will seek more achievements by teaming up tighter and study possible means for integrated listing, Mr Wang added.

(Sourced from MySteel.net)

Hot band spot prices jump up in last fortnight

SteelBenchmarker reported an overall jump in hot band prices for the last fortnight

The four benchmark prices for hot rolled band included in the March 12th report are

1. US
USD 611 per metric ton FOB the mill
Up by USD 14 per ton from USD 597 two weeks ago
Down USD 87 per ton from the peak of USD 698 on July 24th 2006

2. World Export Price
USD 583 per metric ton FOB the port of export
Up by USD 21 per ton from USD 562 two weeks ago
Down USD 27 per ton from the peak of USD 610 on June 12th 2006

3. Western Europe
USD 660 per metric ton ex works
Up by USD 36 per ton from USD 624 two weeks ago
Up by USD 29 per ton the previous peak of USD 631 on July 24th 2006

4. China
USD 440 per metric ton ex works
Down by USD 2 per ton from USD 442 two weeks ago
Down USD 24 per ton from the peak of USD 464 on June 12th 2006

SteelBenchmarker publishes steel benchmark prices for hot rolled band, cold rolled coil, rebar and standard plate in the US, Western Europe, mainland China and the world export market twice each month.

MIT issues a plan for green use of coal

US scientists have issued a report examining how the world can continue to use coal in a way that mitigates instead of worsens global warming.

A Massachusetts Institute of Technology study "The Future of Coal Options for a Carbon Constrained World" advocates the United States assume global leadership through adoption of significant policy actions.

Mr John Deutch chemistry Professor and Mr Ernest Moniz physics Professor said that carbon capture and sequestration is the critical enabling technology to help reduce carbon dioxide emissions, while allowing coal to meet the world's energy needs.

Mr Deutch said "As the world's leading energy user and greenhouse gas emitter the US must take the lead in showing the world CCS can work He added that demonstrations of technical, economic and institutional features of CCS at commercial scale coal combustion and conversion plants would give policymakers and the public confidence a practical carbon mitigation control option exists.

Mr Moniz said an aggressive research and development effort in the near term would yield significant dividends and should be undertaken immediately to help meet this urgent scientific challenge."

The report is available online at web.mit.edu/coal.

Australia approves resuming coal quotas at Newcastle

Bloomberg reported that Australia's competition regulator gave interim approval to reintroduce a coal export quota system at Newcastle port to help reduce the number of ships waiting to load coal.

Mr Graeme Samuel Australian Competition and Consumer Commission chairman said the reintroduction of the system is intended to better balance export capacity with demand and should prevent Australian coal producers having to pay demurrage costs as high as AUD 460 million in 2007.

Mr Samuel said Reinstating the system is expected to result in significant demurrage savings for the industry. Despite recent and ongoing expansion activities at the port is still an imbalance between demand and capacity of the Hunter Valley coal chain which has led to a record queue of vessels of around 70 ships returning to Newcastle.''

Coal producers in Australia's Hunter Valley voted last month to resume export quotas at Newcastle after the queue of ships waiting to load coal at the port reached a record 64. The queue lengthened to 69 earlier this month. Demurrage are costs paid to a ship owner when a vessel is kept waiting to load its cargo beyond a scheduled time. Coal ships waited an average of 22.5 days to load at Newcastle last week as compared with 0.25 days for general cargo vessels.

SSINA releases 2006 special steel market data for US

The Specialty Steel Industry of North America has released the latest available statistical data on imports, US consumption and import penetration for 2006 as compared to 2005.

Imports of total specialty steel comprising stainless steel, alloy tool steel and electrical steel in 2006 were 1,010,892 tons, a 15% increase compared to 2005; US consumption was 3,108,118 tons, a 12% increase; import penetration was 33%, a one percentage point increase.

Alloy tool steel: Imports in 2006 were 101,010 tons, a 17% decrease compared to 2005; U.S. consumption and import penetration were not calculable.

Electrical steel: Imports in 2006 were 81,784 tons, a 1% decrease compared to 2005; U.S. consumption was 439,208 tons, an 8% increase; twelve-month import penetration was 19%, a one percentage point decrease.

Imports of total stainless steel (comprising the foregoing product lines) in 2006 were 828,098 tons, a 23% increase compared to 2005; U.S. consumption was 2,591,577 tons, a 15% increase; import penetration was 32%, a two percentage point increase.

In tonnes

Salzgitter to continue cooperation talks with Algoma

AFX reported that Salzgitter AG still intends to investigate the potential for an industrial cooperation with Canada's Algoma Steel Inc although talks between the two companies regarding a possible takeover have been terminated.

Salzgitter announced that no binding takeover bid will be issued for the time being but it intended to investigate the potential for an industrial cooperation.

A spokesman for Salzgitter told AFX News that The talks are over, but there are lots of possibilities and the door is still open for cooperation with Algoma Steel.

IAM members ratify new labor accord for AK Steel's Middletown Works

AK Steel announced that the members of the International Association of Machinists and Aerospace Workers have ratified a 54 month new era labor agreement covering about 1,700 hourly production and maintenance employees at the company's Middletown Works replacing the last of AK Steel's labor contracts that originated prior to the steel industry's massive restructuring and wave of progressive new labor contracts of the last several years.

AK Steel said IAM officials informed the company today that the new contract had passed by an overwhelming 85% favorable vote, 1,275 to 226. The new agreement takes effect from March 15th 2007 and runs through September 15th 2011.

The new Middletown Works contract includes, among numerous other provisions such as

1. A lock and freeze of the traditional defined-benefit pension plan, replaced by a USD 1.50 per hour company contribution to the IAM's multi employer pension plan, increasing to a USD 1.80 per hour contribution over 36 months
2. Reduction from 1,000 job classes to 7
3. Complete workforce restructuring
4. Elimination of minimum base workforce guarantee
5. Active employee, and future retiree, health care cost-sharing
6. Competitive wage increases

Mr James L Wainscott chairman, president and CEO of AK Steel said that "We are pleased that we have reached an equitable agreement which will return IAM members to work with a contract that significantly improves Middletown Works' competitiveness. The labor dispute in Middletown is over, and we look forward to the quick return of IAM members."

Goldman Sachs sees China's GDP growth at 9.8% for 2007

US investment bank Goldman Sachson issued a forecast that China's GDP growth rate will be 9.8% with CPI inflation at 2.4% in 2007 whereas Premier Mr Wen Jiabao stated in the government work report at the annual National People's Congress meeting that China's real GDP growth rate is targeted at 8%

The Goldman Sachs report maintained the growth target was not a forecast of the government, but served as an indicative message from the central government to the local governments that further growth acceleration at the local level would not be appreciated by the central government.

The report accords with a Standard Chartered Bank forecast that the economy would grow at about 9.7% in 2007 with investment growth rate staying high at 20%. Goldman Sachs report regarded it as a demonstration of the government's resolve in maintaining monetary control predicting a CPI inflation rate at 2.4%

Though China set the GDP growth rate target at 7% in 2004 and 8% in 2005 and 2006, the actual rates were 10.1%, 10.4% and 10.7% respectively.

Ugitech announces SS base price increase for Q2

Ugitech is announcing an average increase in its basic prices for stainless steel bars between EUR 20 and EUR 50 per ton for Q2 of 2007 deliveries

Ugitech said that Demand remains high mainly because of good results in the Automotive and Process market and there is no sign of slowdown for Q3 2007 it is therefore justify to consolidate basic prices.

MMX plans to sell 30% stake in Corumbproject this year

BNamericas reported that Brazilian mining and metals company MMX plans to sell 30% of its Corumba iron and steel project in Brazil's Mato Grosso do Sul state by year end. A MMX spokesperson told BNamericas that "Many investors are interested talks are at an early stage.

The Corumba project entails a 4.9 million tonne per year iron ore mine, 400,000 tonne per year pig iron plant and 500,000 tonne per year semi finished products facility.

Meanwhile, negotiations with Japanese group Sumitomo to sell 30% of MMX's share in the Minas Rio project are more advanced. The project in the states of Rio de Janeiro and Minas Gerais involves a 26.6 million tonne per year iron ore mine and a 7.6 million tonne per year pellet facility.

Cleveland-Cliffs have already taken 30% of MMX's stake in the Amapá complex in northern Amapá state. The complex includes a 6.5 million tonne per year iron ore mine, a port terminal and a railroad, in addition to a 2 million tonne per year pig iron plant and a 500,000 tonne per year semi finished products facility.

Once the sales are complete MMX will have 70% of each project.

Chelyabinsk Zinc commissions new furnace

Chelyabinsk Zinc Plant announced that a new highly efficient large capacity Waelz kiln will be put into operation on March 16th 2007 as a gas burner was fired on March 12th 2007 and the unit is set for drying and initial heating.

The new facility will allow processing of an additional 85,000 tons of secondary raw material a year with zinc content in the feed of about 22% the maximum load will enable CZP to raise annual output of zinc metal by approximately 18,500 tons.

Mr Sergei Moiseyev Chairman of the CZP Board said that "The new facility is a part of the company's strategy aimed at reduction of dependence on deliveries of high quality zinc concentrates and usage of secondary zinc containing materials in processing that will allow a further increase in production capacity and efficiency of the plant."

CZP's RUB 1.8 billion investment program aims at de bottlenecking the plant and to reach a production level of 200,000 tons of zinc metal by 2010 as against 148,400 tonnes in 2006. Apart from construction of Waelz kiln facility #5, the program includes construction of a new sulphuric acid plant of capacity 100,000 tons per year modernization of the roasting and leaching plants, and replacement of a part of the equipment at the other process stages for more efficient facilities.

Chelyabinsk Zinc Plant OJSC is a leading Russian zinc producer. It is responsible for approximately 60% of Russian zinc production volume. 52.34% of CZP shares belong to NF Holdings BV of Netherlands of which 50% belong to Arkley Capital Sl of Luxemburg.

Exxaro closes underground mining at New Clydesdale

It is reported that South Africa's Exxaro Resources has indefinitely suspended underground mining at its New Clydesdale mine but the open cast and plant operations will continue

Exxaro said the decision to suspend underground operations follows a rock engineering assessment of the old workings which indicated that the support pillars had deteriorated to an unacceptable safety degree. The underground operations produced almost two thirds of the 1.1 million tonnes of the mines coal last year. The company said that it is considering building new infrastructure to access the remaining 6.5 million tonne of underground coal.

Exxaro said "Initial indications are that the financial impact of the suspension will be loss of income of ZAR 50 million for 2007 with remedial actions underway to reduce this figure. The company said its studying ways of making up the lost production.

Exxaro is South Africa's biggest black owned diversified resources group with interests in coal, mineral sands, base metals, industrial minerals and iron ore. It has a capacity of 45 million tonne per annum and is South Africa's 4TH largest coal producer.

5 coal miners killed in Vietnam in 2 mishaps

It is reported that 5 Vietnamese coal miners were killed in two separate accidents the same day in the country's largest coal mining area in the north

As per report the first accident took place when 3 miners were retrieving pillars from an old pit owned by Dong Vong Coal Company in Quang Ninh province 130 kilometers east of Hanoi. Nguyen Van Cuong, technical director of the company said "Soil and coal from the ceiling of the pit suddenly collapsed on the miners instantly killing all three of them." Police is investigating the cause of the accident.

Later in the same morning a second accident nearby claimed two miners as an underground water pocket burst and flooded a mine run by Hoanh Bo Coal Company in the Quang Ninh province. Mr Le Viet Hung, director of the company said the water pocket was probably formed from an abandoned pit dug by illegal miners in the past.

Yakutia to sells iron deposits in single lot

It is reported that Yakutias government has addressed Russias Natural Resources Ministry with proposal to put up for investment contest all iron ore deposits of southern Yakutia via a single lot.

Mr Vyacheslav Shtyrov Yakutias President said at the meeting chaired by Russias PM Mr Mikhail Fradkov that the iron ore deposits of southern Yakutia should be sold via a single lot at the closed investment contest. ITAR-TASS quoted Mr Shtyrov as saying. They should be united into a single lot,

ALROSA and Eastern Siberias Mining Co are tipped as potential investors. The contest retirements will be constructing a mining and processing plant in Neryungri. The overall reserves of deposits are estimated at 5 billion tons of ore with the iron content of 30%

Mr Shtyrov expects an investor to build by 2015 a mining and processing plant that will annually produce from 15 million tons to 20 million tons and to construct a steel plant of 5 million tons to 6 million tons capacity by 2020.

General Steel settles consumer protection case

It is reported that Lakewood based General Steel Corp will pay USD 4.5 million to settle a consumer protection case following three years of litigation. The company has 30 days to make the payment.

The settlement will be divided as follows

1. USD 4 million will be paid to 1,440 consumers involved in approximately 1,800 transactions with General Steel dating to 2000.
2. USD 400,000 will be divided equally between the Colorado Attorney General's Office and the Sacramento District Attorney's Office which also settled its claims as part of this settlement.
3. General Steel will pay a USD 50,000 civil penalty and another USD 50,000 to administer the consumer restitution distribution.

Attorney General John Suthers said in a statement that the settlement would provide some relief for customers that lost money as a result of down payments they placed on buildings. He said "In order for the free market to function properly, advertisers must be held accountable for the accuracy of their pitches.

A General Steel statement described the settlement as not an admission of a wrongdoing. Company's attorney Mr Richard Taub said "Although General Steel vehemently disagreed with the court's only findings that were based on an incredibly small sampling of only a handful of customers early in the case, after 3 years of protracted litigation and the extreme costs associated. It was in the company's best interests to resolve this matter."

In 2004, a Jefferson County judge found that the company practiced deceptive sales and marketing tactics by falsely implying that it had an inventory of buildings at factory direct or clearance prices when no such buildings existed. Since then, the court required both sides to identify customers nationwide entitled to restitution.

General Steel is a nationwide provider of large metal buildings.

Cape Lamberts drilling confirms new mineralization zone

Cape Lambert Iron Ore Ltd announced that drilling at its iron ore project in Western Australia has confirmed a northern strike extension of its new magnetite mineralization zone.

The company said Davis Tube Recovery results for drill holes MA231 and MA230 have confirmed a strike extent of at least 500 meters to the north. It added that the results for drill holes MA234 and MA233 are outstanding and could add a further 500 meters of strike extent to the south, providing a total defined strike of 1,000 meters.

Mr Ian Burston chairman said that the discovery and dimensions of this new zone were significant in the context of rapidly delineating a substantial magnetite resource base to enable project development. He added that 'When reverse circulation drilling recommences in early April this area is the first priority as we test for extension to the south and east

Wesfarmers on the hunt for acquisitions

Diversified industrial group Wesfarmers Ltd said that it will continue to look at acquisitions in 2007 but declined to say if it is examining the assets of energy utility Alinta Ltd.

Mr Richard Goyder MD of Wesfarmers said that Wesfarmers would continue to look at opportunities but wouldn't be drawn on speculation the company had been in Alinta's data room running a rule over its books. He said "I am not going to comment on any speculation.

Alinta opened up its data room to potential bidders and a few undisclosed parties have been given access to the data room.

Wesfarmers's portfolio comprises several divisions and includes coal, hardware, insurance, energy, chemical and safety products. Wesfarmers has been active in acquiring assets over the past 12 months, buying insurance broker OAMPS for USD 700 million and industrial gas business Linde Gas Australia for USD 500 million.

Air Liquid inks long term gas supply contract with Shagang

French Air Liquid signed 23 year technological gas supply contract with Shagang.

According to the contract Air Liquid will invest about USD 120 million to establish two sets of oxygen stations that produce 60,000 cubic meter oxygen per hour. The project valued at CNY 15 billion will be finished at the beginning of 2009.

(Sourced from MySteel.net)