March, 16 2007
SAIL to setup mega steel plant in Jharkhand
It is reported that Indian steel major Steel Authority of India Ltd is planning to set up a 6 million tonne Greenfield steel plant in Jharkhand to secure renewal of the mining lease for the Chiria mines.
Mr SK Roongta chairman of SAIL told reporters that the company has already taken the decision in principal and communicated it to the Jharkhand government.
Mr Roongta said that "The Jharkhand government wanted value addition of the iron ore sourced from the state and we are willing to meet their aspirations.
Mr Roongta added that "The finer details of the project are yet to be worked out including investment. But, according to standard cost for a 6 million plant would be around INR 18,000 crore, but could change depending upon the final product mix."
AS per reports, MRCON has been given the mandate to carry out the preliminary study for a possible site for the 6 million steel plant.
CIL likely to float IPO in 2007-08
It is reported that Coal India Ltd is expected to hit the market with its much waited public offering before the end of the first quarter or the beginning of the second quarter of the 2007-08 fiscal. AS per reports, CIL now plans to raise INR 4,000 crore to INR 4,500 crore in the capital market with a public offer of 5 % of the paid up capital through the book building route by converting all its subsidiaries into profit making entities.
Mr PS Bhattacharya chairman of CIL told media that It is true we have mooted such an idea, but finally all depends on the government. Entering the stock market would enhance our credibility, which has already settled down in the eyes of the public at large, going by our commendable results.
Mr PS Bhattacharya however clarified that It would be difficult to provide a formal assertive answer either yes or no, as long as I do not have a clear indication from the coal ministry.
CILs current paid up equity is INR 6,316 crore and has an authorized capital of INR 8,000 crore. With a current asset base of INR 24,411 crore and fixed assets of INR 11,349 crore, CIL turned out sales figures of INR 33,750 crore and a net profit of INR 8,676 crore. CILs current net worth stands at a whopping INR 12,184 crore and according to figures calculated by different research agencies it commands a market capitalization of around USD 30 billion.
CIL is the holding company of 7 coal producing companies including Northern Coalfields Ltd, South Eastern Coalfields Ltd, Western Coalfields Ltd, Mahanadi Coalfields Ltd, Eastern Coalfields Ltd, Bharat Coking Coal Ltd and Central Coalfields Ltd. CIL has chalked out a plan to invest INR 15,000 crore during the 11th Five Year Plan to meet the cost of its existing and new projects. It also envisaged setting up Greenfield washeries along with major power utilities at a cost INR 4,000 crore in the next two years.
SAIL & MOIL to form a ferroalloy JV
Steel Authority of India Ltd has proposed to form a JV with Manganese Ore India Ltd under its plan for ensuring long term security of critical raw materials to match its capacity expansion plan.
Mr SK Roongta chairman of SAIL told reporters that the proposed JV with MOIL would produce ferro manganese and ferro silicon with installation of three furnaces at Bhilai at a total capital outlay of INR 225 crore.
So as to ensure supplies of raw materials required to match its expanded capacity, SAIL has also decided to pick up an equity component of INR 4,000 crore stake in a proposed special purpose vehicle to be floated jointly by SAIL, Rashtriya Ispat Nigam Ltd, Coal India Ltd, National Thermal Power Corporation Ltd and National Mineral Development Corporation for acquisition of coal mines abroad.
SCI & major ports to form a dredging JV
BL reported that some of that Indias major public sector undertaking including Shipping Corporation of India, Jawaharlal Nehru port, Mumbai port and Mazagon Docks Ltd are considering a move to get together to form a mega dredging company to undertake dredging works for its ports. As per report, shipping ministry may also take the issue up with the ministry of petroleum to rope in some oil majors for the proposed JV.
Mr S Hajara CMD of SCI while addressing a ports mission from the UK during a conference organized by the Confederation of Indian Industry said that "The move is aimed at bringing in competition in a segment, which is virtually controlled by a few major companies in the world market."
The larger plans of this venture, in addition to dredging operations at ports, include building of dredgers to steer India to join a select club of countries having this capability.
Land subsidence kills 10 at BCCLs Kusunda colliery area
It is reported that In a tragic incident, at least 10 people were killed and more than 15 injured in the wee hours when land subsided at Kusunda colliery area of Coal India Limiteds subsidiary Bharat Coking Coal Limited in eastern Jharkhand.
The dead included seven members of a single family who were living in one of the houses that collapsed. The condition of five of the injured was serious.
The houses were located in a residential colony of the BCCL in Nayakundi in Dhanbad district of Jharkhand.
As per reports, BCCL had declared the locality to be a danger zone in 1999 as there were fears of underground mine fires and land subsidence. BCCL had asked the residents to vacate their houses but some continued to live there and there were several illegal constructions as well.
NTPC & CIL sign MoU for coal block development and power plants
National Thermal Power Corporation Ltd announced that it has signed a MoU with Coal India Ltd on March 15th 2007 for undertaking development, operation & maintenance of coal blocks and integrated coal based power plants. The agreement was signed by Mr Chandan Roy director operations of NTPC and Mr K Ranganath commercial director of CIL.
The MoU will leverage NTPC and CIL to pool in their experiences and expertise in the areas of coal mining and operation & maintenance of captive power plants using middlings of coal washeries and coal washeries rejects. It also plans to set up integrated power plants each having a capacity of 3000MW to 4000MW.
The areas of immediate co operation by 50:50 JV include development of two coal blocks Brahmini and Chichro Patsimal in Jharkhand.
Indian government has allocated Pakri Barwadih 1,436 million tonne, Kerandari 228 million tonne, Chatti Bariatu 243 million tonne, Chattrasal 150 million tonne, Dulanga 260 million tonne, Talaipalli 965 million tonne, Brahmini 1,900 million tonne and Chichro Patsimal 356 million tonne to NTPC to meet its requirements of coal for fuelling its power plants.
Indian government to auction coal blocks with 6 billion tonne reserves
It is reported that Indian government has plan to auction 38 coal blocks with a reserve of 6086.67 million tonnes to the power, steel, iron and cement sectors in 2007.
Dr Dasari Narayana Rao union coal minister of India told parliament that the coal reserves of 38 blocks to be allocated for captive mining through the screening committee route is estimated to be 6086.67 million tons and the government issued an advertisement last November inviting applications from eligible companies for allocation of coal blocks for captive mining by January 12th 2007.
Mr Rao said that a total of 1422 applications have been received. The allocation of coal blocks will depend on the time by which the views and comments of provincial governments and nodal ministries are obtained and the recommendations of the screening committee constituted for the purpose is received.
He said that in order to make the system more transparent and objective, a proposal to introduce a mechanism of competitive bidding for allocation of coal blocks is being considered.
However as per some other reports, the screening committee headed by Mr HC Gupta coal secretary has given the green signal and an announcement may happen anytime for allocation of 25 blocks for captive consumption, out of which 19 blocks are of coal and 6 of lignite blocks.
Chennai Port crosses 50 million tonne mark
Chennai port has crossed a record milestone of 50 million tonnes of cargo handled during the current financial year by handling 50.06 million tonnes of cargo during April to February 2007 up by 12.92% YoY. Its performance is up by 1.23 % over the Shipping Ministry's target of 49.46 million tonnes for April to February 2007.
Mr K Suresh chairman of Chennai Port Trust said that "Achieving 50 million tonnes in a year is a significant moment for Chennai port, an old port that is now growing in glory."
However, Mr Suresh cautioned that It would be difficult to sustain the momentum since the Port Trust planned to move out coal from the Port, for it to become a clean and green port to handle increased volumes of containers, automobiles and project cargoes. Mr Suresh added that the port trust has informed about the decision to users, who would move coal to ports like Tuticorin, Ennore or Cuddalore.
The achievement is all the more creditable because three years ago, Chennai Port lost around 9 million tonnes of thermal coal meant for Tamil Nadu Electricity Board to Ennore Port and then the Ports cargo handling fell to 35 million tonnes. Nevertheless, after that, the Ports cargo handling bounced back at a rapid pace.
TMK to set up a new large dia pipe mill at Volzhsky
Russian leading oil and gas pipe producers TMK announced that it has contracted Switzerlands leading welded pipe production equipment producers Haeusler AG to supply a new facility for the production of large diameter longitudinal welded pipes. The facility will be installed at TMKs subsidiary Volzhsky Pipe Plant in the Volgograd region of Russia. Production is expected to start in third quarter of 2008
The annual production capacity of this mill will exceed 1.3 million tonnes of pipes per year. The facility will utilize leading edge roll bending technology. The new facility will produce longitudinal welded pipes with diameters of between 530mm and 1420mm in wall thickness of up to 42mm in grades of up to API 5L X100.
Mr Konstantin Semerikov CEO of TMK said that The market for large diameter pipes in Russia and its neighboring countries is buoyant. The facility will allow TMK to sustain its position as the leader of Russian pipe industry in this segment and to provide for Gazprom and Transnefts increasing demand for large diameter pipes for their long distance oil and gas pipelines in Russia and the CIS.
Severstal buys Victory Industries
Severstal announced that it has acquired the Victory Industries Inc based at Dearborn in Michigan, which manufactures and repairs spare parts and components for metallurgical equipment for USD 885 million assets via its services subsidiary ZAO Firma STOIK.
Mr Dmitry Romanov the director of STOIK Said "The main reason for buying the assets of Victory Industries Inc is to develop equipment servicing for Severstal North America, which Severstal acquired in 2004.
The release said that STOIK's management, when planning the development prospects and additional investment in Victory Industries Inc's existing assets, is not ruling out cooperation with other nearby industrial enterprises.
Nickel reaches record high on LME
Nickel prices rose to record high for the 4th consecutive day in London as stockpiles of the metal plunged thus increasing speculation that supply would not meet demand.
Nickel for delivery in 3 months reached an intraday high of USDS 47,890 per tonne.
Nickel inventories monitored by the London Metal Exchange fell by 5.8% to 3,594 tonne which is less than two days of global consumption.
Mr Kevin Norrish an analyst with Barclays Capital in London told Bloomberg that "Supply has just not caught up with demand, particularly for stainless steel in Asia, and there is little prospect of that changing in the near future."
The main driver behind a higher consumption of nickel is the increase in global stainless steel production with China overtaking Japan as the worlds largest stainless steel producer in 2006.
Cargill to buy 49% stake in Spring Creek coal mine
Radio New Zealand reported that Cargill will purchase 49 % of all future coal from Spring Creek Coal Mine at Greymouth. While no price has been named in the deal, Cargill will help fund a NZD 25 million expansion of the mine. The acquisition is subject to approvals from the government and the New Zealand Overseas Investment Office.
Solid Energy New Zealand will continue to hold a 51 % majority share, employ staff and operate the mine.
The Engineering, Printing & Manufacturing Union, which represents workers at the mine, said that the deal will provide a more certain future for staff.
Russia, Bulgaria & Greece sign Balkan pipeline deal
Russia, Bulgaria and Greece signed a long delayed EUR 1 billion deal to build a pipeline across their territories which will pump Russian oil further on to Europe. The 280 kilometer long Burgas to Alexandroupolis pipeline will carry Russian oil from the Caspian region via the Bulgarian Black Sea port of Burgas and Greece's Alexandroupolis on the Aegean to Europe bypassing crowded Bosporus Strait in Turkey.
The agreement has to be ratified by the parliaments of the three countries. The pipeline construction will start immediately after the ratification procedures have been completed. The aim of the agreement is to start building the pipeline in 2008 and to end the construction in 2011.
The pipeline will pump 35 million metric tons of oil a year a volume that could eventually be increased to 50 million metric tons.
Russia's state controlled oil producer Rosneft, state pipeline operator Transneft, and energy giant Gazprom will hold a total of 51 % in the project while Greece and Bulgaria will control 24.5 % each.
Mr Vladimir Putin president of Russia said that "The step we are taking today has been necessitated by the interests pursued by Russia and Greece, as well as our partners interests. I am positive that Russia's energy potential and the favorable geographic positions of Bulgaria and Greece open up prospects for broad cooperation, and provide new opportunities to turn Bulgaria and Greece into large regional centers to transit Russian energy resources to European and world markets."
The project has been on the table for more than 10 years, but progress has been slow, reportedly due to Russian producers reluctance to contribute oil to the pipeline. The deal was signed amid growing concerns in Europe over dependence on Russia, which meets about 30 % of Europe's oil demand and 40 % of its natural gas demand and appeals to diversify energy sources.
ThyssenKrupp files for environmental permits in Alabama & Louisiana
It is reported that ThyssenKrupp has filed environmental permit applications for its planned manufacturing plant which is expected to be built in Alabama or Louisiana and that additional permit applications will be filed later with the US Army Corps of Engineers. Last month, ThyssenKrupp confirmed that it is proceeding with the development of new state of the art steel and stainless steel manufacturing and processing facility in one of the two states.
Company officials said that the permit applications were filed with the Alabama Department of Environmental Management and the Louisiana Department of Environmental Quality that required under the federal Clean Air Act to provide an analysis of emission sources before construction begins.
The ThyssenKrupp applications in each state detail several items, including: a description of the construction process; emissions calculations and air dispersion modeling assessments; best achievable control technologies employed during construction to ensure limited emissions; and computer modeling demonstrating that the facility, once operational, will meet or exceed the National Ambient Air Quality Standards and applicable state air guidelines.
Mr Robert P Soulliere president and CEO of ThyssenKrupp Steel and Stainless USA said "We are confident that our filings demonstrate ThyssenKrupp's environmental know how and our focus on the development of processes that are environmentally friendly and conserve resources. He said the company is committed to incorporating state of the art technology to limit any air emissions.
An announcement is expected in coming months on whether the nearly USD 2.9 billion steel plant will be built at Mobile County in Alabama or along the Mississippi River between Baton Rouge and New Orleans in Louisiana. The new plant is expected to begin operations in 2010, with 2,700 jobs.
Rusal, SUAL & Glencore merger to be completed soon
RIA Novosti reported that a merger of Russia's aluminum giants RusAl and SUAL and the alumina assets of Swiss Glencore could be completed in a week. Mr Viktor Vekselberg co owner of SUAL told media "Hopefully the deal will be accomplished in a week.
Rusal SUAL and Glencore agreed to establish United Company Russian Aluminum with RusAl's CEO Mr Alexander Bulygin as its GD in October 2006 and planned to merge by April 1 2007.It will have 12 people on its board including 6 RusAl officials 2 SUAL representatives an official from Glencore and 2 independent directors. RusAl will hold 66% in the future company, SUAL 22% and Glencore 12%.
According to unofficial reports the question of who will be board chairman remains open as SUAL President Mr Brian Gilbertson who was supposed to hold the post has decided to quit the company and Mr Vekselberg may be appointed chairman.
Nucor to upgrade bar mill at Birmingham
Metal Producing & Process reported that Danieli has been contracted by Nucor Steel for an upgrade program at the steel makers bar mill at Birmingham in Alabama involving an addition of 2 roughing stands and a new crop shear plus auxiliaries. They will be installed between December 2007 and early January 2008 followed by a restart.
The contractor described the new mill stands as heavy-duty ESS 685 cantilever stands capable of improving plant operation and process efficiency.
Danieli designed and supplied the original mill in the early 1990s, which produces No 3 to No 18 rebars at up to 120 tons per hour.
Glencore may start Tennessee zinc mines soon
Platts citing a spokeswoman of Tennessee Department of Environment and Conservation reported that Glencore International is currently de watering its Tennessee zinc mines. This suggests concentrate production may be some weeks in the future.
Glencore bought bankrupt Asarco's Tennessee Mines Division at an auction May 19 for a bid of USD 65 million which considering a USD 1.2 million break up fee credit resulted in a USD 63.8 million purchase price.
The Tennessee Mines Division assets include the Young and Coy underground zinc mines and the 7,600 short tonne per day, Young mill at Jefferson County in Tennessee and the Immel underground zinc mine at Knox County in Tennessee. Operations at these units were suspended in November 2001. Grupo Mexico's Asarco subsidiary filed for Chapter 11 bankruptcy protection on August 9th 2005.
Two coal mine accidents in China kill 10 miners
According to reports in Chinese media, at least 10 people have been killed in 2 coal mine disasters in China on Wednesday.
The Henan provincial coal mine safety supervision bureau without giving details said that a gas leak at a coal mine in Jiayu Town in the northern Henan Province killed 6 miners, a manager and a technician. The mine had been shut down for a safety overhaul but its management had illegally resumed operations.
In the 2nd accident at a mine in Zhongwei City in the northwestern Ningxia Hui Autonomous Region 2 miners were killed and 2 injured in a cave in. Investigators said that the mine run by the local government of Changle Town was fully licensed and had a production permit.
According to the State Administration of Work Safety, coal mine accidents killed 357 people in China in the first 2 months of this year giving average per day death toll of 6.
Wuhan commences production at continuous annealing line
Wuhan Iron & Steel Co Ltd has successfully produced the first coil on the continuous annealing line supplied by SMS Demag AG of Germany.
The continuous annealing line at Wuhan is designed for the production of strip in widths of 900 mm to 2,080 mm and in thickness range of 0.3mm to 2.5mm. An annual production of 990,000 tonnes is generated with a maximum process speed of 450 meters per minute. The steel strips in the grades ULC, HSS, BH, DP, PMK and TRIP with low carbon content are utilized mainly in the automotive industry and for the manufacture of domestic appliances.
The essential process stages include strip degreasing, re crystallization annealing with controlled strip cooling and skin passing to obtain differing degrees of surface roughness and controlled elongation. The trimming shear cuts the strip to the required final width. The strip surface is oiled electro statically.
Mr Prokhorov quits Norilsk Nickel
It is reported that Mr Mikhail Prokhorov has stepped down early as CEO of Norilsk Nickel to concentrate on energy projects. Norilsk Nickel has nominated Mr Denis Morozov deputy CEO and a director of Polyus Gold to succeed Mr Prokhorov as new CEO.
Mr Prokhorov in a statement said that working on his new energy venture is impossible if he stays on. He said "A clear conflict of interests arises. Because work on forming the new business has already begun and is actively under way, He said I have decided to leave my positions at Norilsk earlier than expected."
Mr Prokhorov`s departure was expected under an agreement with business partner Mr Vladimir Potanin to divide the business empire they control through their Interros holding company. The break up is expected to transfer Interros's 54% stake in Norilsk to Mr Potanin.
Mr Prokhorov and Mr Potanin were ranked as equal fourth richest Russians in the latest list published by US Forbes magazine recently with their fortunes estimated at USD13.5 billion each. But the pair have fallen out with Mr Potanin criticizing Mr Prokhorov`s extravagance and lifestyle, saying the negative publicity had accelerated the separation of their business interests
Arcelor Brazils Belgo Siderurgia starts 2nd charcoal fired BF
It is reported that Arcelor Brazils subsidiary Belgo Siderurgia has started the second charcoal fired blast furnace at its Juiz de Fora plant in Minas Gerais in Brazil. The start-up follows the commissioning of an identical unit in January at the same plant.
As per a company statement, the twin blast furnaces should be operating at a combined 360,000 tonne per year output rate by April 2007, which will reduce the plant's dependence on third party raw materials.
Belgo Siderurgia said that the installation of the blast furnaces is part of Belgo's sustainability program including the supply of eucalyptus charcoal by CAF, a reforestation company, with tied with Belgo to focuses on clean development mechanism projects.
Jiuquan looking for an overseas strategic partner
China Industry Daily has reported that Jiuquan Iron & Steel Group is in talks with a foreign steelmaker for taking it as a strategic shareholder of Jiuquan. However, Mr Ma Honglie chairman of Jiuquan Iron while speaking on the sidelines of the National People's Congress declined to reveal the name of the potential strategic shareholder.
Mr Ma added that Jiuquan has also planned to inject all its assets into Shanghai listed unit Gansu Jiu Steel Group Hongxing Iron & Steel by 2010. Jiuquan is following the footsteps of its bigger domestic rivals as it float all of its assets by selling them to their Mainland listing vehicles.
According to the China Iron and Steel Association the Jiuquan Group saw crude steel output grow by 17.4 % in 2006 to 6.64 million tonnes and is Chinas 16th largest steelmaker.
Jiuquan Iron & Steel Group has started building a 1.5 million tonne a year cold rolled steel production line last week and is scheduled to be completed in April 2008. The line will manufacture products used to make home appliances and vehicles.
US Steel to construct green coke battery at Granite City
It is reported that US Steel Corp is planning to building a USD 340 million coke battery at its Granite City steel mill and is waiting for Granite City to approve a tax increment financing package to help pay for the project. In addition to the USD 340 million the project is estimated to require USD 85.7 million for utilities and road reconstruction.
The incentive plan calls for US Steel and Sun Coke to receive USD 70 million to USD 100 million in reimbursement over a 23 year period via tax increment financing, under which a city can redirect a project's future tax revenue toward the development costs of the project itself. The City Council of Granite City passed a resolution for a feasibility study for this TIF in June 2006. A public hearing will be held on March 27th and the council will vote on the proposed TIF on April 17th.
Mr John Anderson a spokesman of US Steel said that The Company has narrowed its focus to Granite City. US Steel's board will vote on final approval once the company gains the necessary approvals from Granite City and the Illinois Environmental Protection Agency.
The new facility would be jointly constructed by Sunoco Incs Sun Coke and US Steel with Sun Coke managing operations. The new facility will use heat recovery coke making technology based on the 1990 Clean Air Act. The only by product in that process is hot flue gas, which will be used to make steam to power steam turbine generators.
The existing coke facility at Granite City Works has had difficulty meeting federal air pollution requirements, which steadily have grown tougher. The process of making coke from coal produces toxic chemicals, hazardous waste and wastewater.
NDRC approves CMGs purchase of stake in Argentinean Minera Sierra Grande
Chinas National Development and Reform Commission announced that it has approved China Metallurgical Group Corp's plan to buy a 70% stake in Argentinean iron ore miner Minera Sierra Grande SA. NDRC did not provide more details.
MCC signed an agreement in July 2006 to pay USD 100 million for 70% of the Argentinean miner which has total ore reserves of 214 million tons.
As per a Reuters report, China Metallurgical Group reportedly revived operations last month at the Minera Sierra Grande iron ore mine in southern Argentinas Rio Negro province and has already invested over USD 20 million in the mine.
Baosteel inks transport pact with CSGPC
Baoshan Iron & Steel Co Ltd and Changjiang Shipping Group Phoenix Co Ltd recently signed a long term agreement on river and coastal transportation cooperation.
Over recent years, CSGPC has made big contributions to Baosteel in securing stable transportation and cost cutting of the steel producer. When Baosteel is elevating coastal traffic volume of coal, supplementary materials and for-transit iron ore to over 50 million tonne, it will need further support from the shipping partner.
On the basis of mutual benefit, the two sides are entering into strategic cooperative relations: Baosteel has taken long term contract for river transportation changed from original annual contract, to parallel international shipping pattern and CSGPC has also become one of the top steel maker's strategic cooperators.
Changjiang Shipping Group Phoenix Co Ltd is the largest inland water dry bulk transportation shipping company in China in and the only one with complete serves of river sea and ocean logistics.
(Sourced from MySteel.net)
Pt Inco may set up 2 nickel plants in Indonesia
It is reported that CVRD Incos majority owned PT International Nickel Indonesia is planning to build two nickel production units in Indonesia.
Mr Arif Siregar president of PT International Nickel told local media that the plants would cost around USD 500 million each with construction likely to start in 2010.
As per report, both plants are expected to have a capacity of about 18,000 tonnes of nickel per year.
Engels Pipe increases production in February
Russian FIS reported that reported that Engels Pipe Plant produced over 5000 tonnes of pipe products in February 2007 and 4000 tonnes were shipped to consumers as compared with 3170 tonnes shipped in February 2006 when production amounted to 3100 tonnes.
