L&T & Paul Wurth to construct BF at RINL

Indias leading engineering & construction major Larsen & Toubro Ltd announced that it has bagged an INR 1400 crores EPC package for the expansion of Vizag Steel Plant of Rashtriya Ispat Nigam Ltd through its international consortium partners Paul Wurth. L&T's construction division will execute this contact in consortium with Paul Wurth Italia within a guaranteed time frame of 30 months.

L&T will construct a state of the art 3800 cubic meter unit blast furnace with a hot metal capacity of 2.5 million tonnes of per year. L&T's contract value in this project is pegged at around INR 810 crores.

L&T's scope of work includes complete detailed engineering apart from certain areas of basic engineering based on the process engineering being supplied by Paul Wurth. Apart from this complete site services including the civil and structural works and erection of equipment would be undertaken by L&T with supervision being provided by Paul Wurth.

RINL had invited bids for installation of a new third blast furnace to double its capacity to 6.5 million tonnes per annum of hot metal from the present level of 3.2 million tonnes per annum.

India may modify iron ore export tax policy Report

Chinese media has reported that India is planning to modify export tax on iron ore only on Fe content of 60% or more and that below 60% will be exempted from the duty. Whereas India's Federation of Mining Industries suggested that it's widely expected that India government would only impose tax on ore lumps grading over 65% and give mercy to ore fines.

Market analysts believe that Chinese importers would suffer heavy loss from the new export tax since most of Indian iron ore shipped to China is grading 60% to 63.5%.

CCCMC has gathered ore traders in Beijing for an urgent meeting to discuss their response to the duties and Indian exporters are lobbying the government to roll back the tax.

Mr Liu Zhengang a senior manager with China Min metals Corporation said that Indian steelmakers and ore miners are greatly divided on the export tax. Ore exporters insist that the duties would make Indian iron ore less competitive in the global market and reduce the government revenue significantly. However, the tax is welcomed by Indian steel industry for satisfying domestic demand and cap resources export. Mr Liu added that "To what extent Chinese buyers can absorb Indian export tax is still unclear, and more negotiations are needed for both sides to work out a final solution."

India sold 74.75 million tons of iron ore to China in 2006, 84% of the nation's total output of 155 million tons.

(Sourced from Mysteel.net)

Stemcors BRPL to set up pellet plant in Orissa

Reuters has reported that UK based Stemcor pans to invest INR 14.85 billion for an iron pelletisation complex in Orissa and that it's Indian arm Brahmani River Pellets Ltd has signed an initial agreement with the Orissa government to set up the facilities in the Keonjhar and Jajpur districts. Commercial production would start in four years.

Mr KV Rao MD of Brahmani told reporters that "The project consists of 4 million tonnes a year iron ore beneficiation plant, a 4 million tonne a year ore pelletisation plant and laying 200 kilometer pipeline to carry beneficiated iron ore in slurry form."

Ore pellets are used in blast furnaces as well as in the production of direct reduced iron. The pellet plant would convert low grade ultra fines into value added pellets for steel mills.

Jharkhand HC directs state government to file rejoinder for Chiria

Local media reported that the Jharkhand High Court has directed the state government to file a rejoinder in connection with the counter affidavit filed by the central government regarding Chirya mines case.

The division bench comprising of chief justice Mr M Kargavnayagam and Justice Mr Premod Kohli adjourned the matter for further hearing on April 4th 2007.

The central government among various submissions also pointed that the court might decide the matter on minutes of the meeting held on February 19th 2007 in PMO submitted that the state government had clarified that the requirement of SAIL for its proposed expansion plan of Bokaro & IISCO Steel Plant would get priority.

Royal Boskalis & Dredging International JV to build pipeline in India

Exim News Service has reported that the Dutch dredging company Royal Boskalis Westminster and Belgium based Dredging International have floated a 50:50 JV to undertake a pipeline project in India with an investment of USD 166 million. Work on the project will begin in September 2007 and will be completed by June 2008.

The pipeline will connect Reliance Industries offshore gas field KG-6 to its onshore terminal near Kakinada in Andhra Pradesh.

The project includes a trench that will be 18 meters wide and 21 kilometer long for the positioning of 9 pipelines that will pass through the Godavari river for the mainland connection of the offshore field.

Electrotherm to invest INR 200 crore in steel

Ahmedabad based steel maker Electrotherm India Ltd is planning to invest INR 450 crore over the next couple of years. The investment will go into backward integration of its steel plant and a captive power plant of 40MW and the making of electric three wheelers and hybrid electrical buses.

Mr Avinash Bhandari director of operations of Electrotherm said that "We plan to invest about INR 200 crore in the steel business and INR 250 crore in automobiles. The thrust in the steel and automobile businesses will help our top line grow, while our equipment manufacturing business induction melting furnaces will contribute to our bottom line."

HSL bags order for 10 bulk carriers

Mr TR Baalu minister of shipping, road transport and highways in a written reply in the Rajya Sabha said that Visakhapatnam based Hindustan Shipyard Limited has received orders for 10 bulk carriers comprising four 30,000 DWT bulk carriers and six 53,000 DWT bulk carriers.

The shipyard is eligible for and getting subsidy for the above vessels as per the government of India subsidy scheme. Rehabilitation cum Financial Restructuring plan covering all aspects of revival of HSL is under process.

CCL to celebrate welfare year

A local media reported that the Coal India Limiteds Ranchi based Central Coalfields Ltd plans to celebrateWelfare, community, development and environmental conservation year.

CCL, which is celebrating its golden jubilee this year, has been involved in welfare and community development works for a long time. The program has been chalked out as the company is fully aware of its corporate responsibilities and to give impetus to villages adjacent to the operating coalmines.

According to CCL sources, the company is confident of meeting production target of 42 million tonnes during the current fiscal and has set an ambitious target of 78 million tonnes to be achieved in the terminal year of the 11th Plan 2011-12.

Arcelor Mittal to build new service centre in Krakow

Arcelor Mittal, as part of its expansion strategy in Central & Eastern Europe, would invest in a new Steel Service Centre in Krakow. This facility with a processing capacity of 450 000 tons per year will strengthen the existing network of SSC operations in Poland in Huta Zendzimira and in Bytom near Katowice. It will start operating early in fourth quarter of 2007.

This new service center will bring Arcelor Mittal's service center capacity, including at Huta Sendzimira and Bytom, close to 1 million tonnes per year in Poland and will be fitted with modern equipment, serviced by a lean and specialized team, and will be able to meet the evolving market requirements with the utmost efficiency.

Equipments will incorporate 2 de coiling lines 1 for hot rolled coils and 1 for cold rolled and coated material as well as a slitting line. These lines will be localized in the existing Walcownia Tasm building in Huta Zendzimira. This unique location will allow the new centre to benefit from significant logistics and cost competitiveness.

Mr Philippe Darmayan CEO of Arcelor Mittal Steel Solutions and Services and Mr Vijay Bhatnagar CEO for Eastern Europe said "The fast and efficient implementation of such organic growth projects in Central and Eastern Europe is facilitated by the successful integration of Arcelor Mittal in Europe".

ILZSG estimates zinc surplus in January 2007

The International Lead and Zinc Study Group said that the global refined zinc market had a 50,000 metric tonnes surplus in January 2007 reversing a 31,000 tonnes deficit in the same month of 2006.

ILZSG said that refined zinc production in January was 941,000 tonnes while refined zinc consumption was 891,000 tonnes.

Western world demand for refined zinc was 623,000 tonnes in January with production of 566,000 tonnes creating a deficit in this region of 57,000 tonnes.

Usiminas announces CAPEX plans

Brazil's 2nd largest steelmaker Usiminas said that it will invest as much as BRL 4.7 billion to boost annual steel production, including a 2.2 million tonne expansion at its Ipatinga steelworks. Usinas Siderurgicas de Minas Gerais SA said in a regulatory filing that the company's board approved the Ipatinga expansion in central Brazil at a cost of BRL 2 billion and construction will start immediately, with completion expected in 2010 or 2011.

Usiminas will also build a 750,000 metric ton a year coke plant at Ipatinga to supply the steelworks. The company said it received a BRL 240 million loan from the Japan Bank for International Cooperation to build the coke plant. In addition, the company is in studies for a separate 3 million metric ton expansion project that will cost BRL 2.7 billion.

Usiminas is Brazil's leading flat steel maker, with more than 50 % of the local market for hot rolled coils. It also supplies thick steel plates to the naval industry. The company is controlled by a group of shareholders that includes Japanese steelmaker Nippon Steel Corp. and three Brazilian companies Companhia Vale do Rio Doce SA, industrial conglomerate Votorantim Participacoes SA and construction firm Grupo Camargo Correa.

Arcelor Mittals eying POSCO Report

The Korea Economic Daily reported that Arcelor Mittal is mulling hostile takeover of POSCO and that a message about Arcelor-Mittal's interest was conveyed to POSCO last month. Ever since a meeting between Mr Roland Junck management board member of Arcelor Mittal and Mr Lee Ku-taek CEO of POSCO last month the speculations have been making rounds.

POSCO has issued a denial that there is no takeover bid, hostile or otherwise. After last months meeting a POSCO spokesman said "The Arcelor Mittal executive and Posco CEO talked about the consolidation in the global steel industry at that time but the executive did not mention Posco's M&A strategy.

However, POSCO with its very fragmented foreign shareholding, it could be a prime target for a takeover bid. No single shareholding in POSCO is more than 5%. POSCO has already set in motion an elaborate cross holding alliance with other steel producers to insulate it self from hostile takeovers.

South Africa to get more chrome furnaces

Mr Paolo Argenta CEO of smelting specialist Pyromet told Engineering News Online that South Africa could get 5 new ferrochrome furnaces in the next couple of years.

He noted that these greenfields and brownfield projects were being seriously considered even before deputy president Mr Phumzile Mlambo Ngcukha announced on March 1st that the country would be restricting the export of unbeneficiated chrome ore.

Mr Argenta said that "The South African market is extremely strong, but, at the same time, we are also looking to grow our global business. India is another interesting prospect for us. We have already done some work there, but we are currently reviewing our strategy for the country."

China's industrial output up by 18.5% in January to February

The China National Bureau of Statistics said that industrial output from all state and private enterprises in China with annual sales revenues of more than USD 646,000 was up by 18.5% in the first 2 months of 2007.

The table below specifies China's industrial output in the first 2 months of 2007.

(In terms of million tonnes)

Source is Chinas National Bureau of Statistics

IOC strike may extend to Quebec

CBC News reported that a worker union official said that unionized workers with the Iron Ore Company of Canada in Quebec are making plans to go on strike as about 250 IOC workers in Sept Iles voted 96 % in favour of strike action.

Mr George Kean president of the union local in Labrador City said that pending strike in Quebec will bolster his members' walkout and strike in Sept Iles would put additional pressure on IOC to come up with a stronger offer.

Mr Kean said that "There's a small stockpile in Sept-Iles, so as long as employees are still working there, ships coming from China, from Holland, from all over the world can still get their ships and their boats loaded. But when they go on Monday, the stockpile that's on the ground will be staying there, which means that the steel plants from around the world that depend on IOC pellets will no longer be receiving that."

Aurox and Chengde ink long term iron ore off take deal

Aurox Resources has signed a long term Sales Agreement to supply Chengde Iron and Steel Group Company with 3 million tonnes per annum of titan magnetite iron ore concentrate from its Balla Balla project West Pilbara which will commence in 2009.

The agreement links the concentrate sales price directly to the Hamersley Premium Fines price negotiated annually between the worlds major steel producers and Australian iron ore suppliers.

First production from Balla Balla will coincide with the expansion of Chengdes steel plant located in the Hebei province from a reported 4.4 million tonnes per annum to 8 million tonnes per annum steel by 2009.

Chengde is part of the Tangshan Iron and Steel Group, one of the top three steel producers in China. It is one of the worlds largest low cost vanadium producers making vanadium slag as a by product of steel production using a feedstock of vanadium rich titan magnetite concentrate.

China suspends new mining rights

Reuter has reported that China has banned the issue of new minerals exploration licenses through the end of 2007 as it reorganizes its mining sector. Chinas Ministry of Land and Resources had earlier said it would suspend auctions of new coal exploration rights until end of 2008 in an announcement dated February.

But Chinese officials have complained that license holders are sitting on licenses without completing the required exploration investment and without applying for development rights for promising finds.

Mr Huang Fangfang director of the National Land and Resources Department of the Guangxi region in southern China said "At the moment China is sorting things out to make mining development more orderly. He said during this time in principle new exploration rights cant be granted until the end of the year once things are sorted out then they can be issued

US ITC to investigate effect of duty free imports from less developed countries

The US International Trade Commission has launched an investigation to assess the probable economic effect of allowing products from the world's least developed countries to enter the United States free of all duties and quotas. The investigation Probable Economic Effect of Duty Free Quota-Free Treatment for Imports from Least Developed Countries was requested by the US Trade Representative in a letter dated February 16th 2007.

USTR noted that members of the World Trade Organization reached an agreement at the WTO Ministerial Conference in Hong Kong in December 2005 to provide duty free, quota free market access to products from LDCs, as defined by the United Nations.

As requested, the ITC will provide advice to USTR as to the probable economic effect of providing duty free quota free treatment for LDC imports on industries in the United States producing like or directly competitive products and on consumers.

Investigation will cover each article in chapters 1 through 97 of the Harmonized Tariff Schedule of the United States for which US tariffs or quotas will remain after the United States fully implements its Uruguay Round tariff commitments taking into account preferential tariff treatment currently being provided to LDCs under the Generalized System of Preferences The Commission's advice will be based on the 2002 HTS nomenclature and on 2006 trade and tariff rate data.

Australias mineral export earnings up in Q4 of 2006

According to the Australian Bureau of Agricultural and Resource Economics Australia's mineral export earnings rose by 2% to AUD 27.1 billion in the December quarter of 2006 compared with the previous quarter, and nickel led the way as the commodity with the largest increase in export earnings.

Mr Phillip Glyde ABARE's Executive Director said "The commodity that had the largest increase in export earnings in the December quarter 2006 was nickel up by AUD 358 million to AUD 2,034 million results of increases in both export volumes and export prices." He said other commodities that recorded significant increases in export earnings in the December quarter 2006 were zinc up by AUD 236 million to AUD 1.2 billion iron ore and pellets up by AUD 194 million to AUD 4.1 billion and alumina up by AUD 107 million to AUD 1.7 billion.

Mr Glyde explained the index of export prices of Australian mineral resources fell by 3% in the December quarter 2006 as compared with the previous quarter reflecting a reduction in energy minerals prices of 9% while metals and related minerals prices rose by 2%.

Australia's major minerals and energy commodities recorded production increases compared with the September quarter 2006. Substantial increases in production of minerals and energy commodities.

1. Refined lead up by 146%
2. Tin mine up by 52%
3. Other petroleum refinery products up by 41%
4. Uranium oxide up by 28%.
5. Mineral sands leucoxene and refined silver both up by 17%
6. Automotive diesels up by 15%,
7. Nickel mine up by 14%
8. Intermediate nickel up by 13%
9. Titanium dioxide pigment up by 12%
10. Refinery LPG up by 11%

Eramet declares force majeure at Marietta Ohio plant

Platts reported that French owned manganese alloys producer Eramet declared force majeure on its US silicomanganese production at its Marietta Ohio plant after suffering a burn through in the lining of one of its furnaces over the weekend. It said that it is the second burn through suffered by the furnace in the space of two weeks.

Eramet spokesman said that it no longer had sufficient stock and had sent letters to customers confirming the declaration of force majeure. It said that allocation letters would be sent to customers and warned deliveries would not continue in the smooth fashion that occurred during the recently settled strike at Marietta which began last August.

Australian Worker Union criticizes FFG for mishaps

It is reported that Fortescue Metals Group has been criticized for allegedly failing to evacuate workers in time from a remote mining camp in Western Australia ahead of a cyclone which killed two of the companys workers recently and injured a further 16.

Mr Bill Shorten national secretary of Australian Workers Union was quoted by local newspapers that huts at Fortescue Metals Groups rail camp 1,100 kilometer south of Port Hedland were not secured safely to the ground with steel cables.

Mr Forrest MD of FMG however defended the safety levels at the camp by reportedly saying that the huts were tied down to the best of his knowledge. He said I think as the CEO of FMG it is I who started this project, it is I who started this company and it is I who takes responsibility.

Brazil to China Capesize iron ore rates nearing record high

Platts reported that a new wave of spot market iron ore freight chartering has pushed freight rates on the densely Brazil to China iron ore route to close to its all time high with rates of USD 44 to USD 47 million tonne seen basis 150,000 million tonne stems. The report mentions that an undisclosed chatterer reportedly fixed a 160,000 million tonne iron ore cargo from Tubarao to Quingdao with a March 20th to 30th loading window at USD 44 million tonne on a voyage basis

Ship brokers said they had heard that Transfield had fixed on a trip charter basis, the 2006-built China Progress 174,000 DWT from Europe, for a trip via Brazil to load iron ore, discharge and redelivery China at USD 102,000 per daily which they said equated to USD 41.44 per million tonne for a 160,000 million tonne cargo or USD 44.20 per million tonne for a 150,000 million tonne stem.

A London based Capesize broker said that 160,000 million tonne cargo sizes were becoming increasingly common on the Brazil to China route because of the larger deadweight capacities of modern Capesize ships.

In December 2004, the Capesize freight market reached an all time high with rates on the Brazil to China iron ore route topping out at USD 53 per million tonne for a 150,000 million tonne cargo, or USD 49.70 for a 160,000 million tonne stem with ship owners enjoying average daily hire rates of around USD 122,300 per day on this route.

Chinese fossil fuel based power capacity nears 699,700 MW

The total capacity of Chinese fossil fired power plants in operation or under construction as displayed in the new McIlvaine Chinese Utility Plans database is 699,700 MW. The database displays data on 1,255 plants comprising more than 2500 individual boilers. Coal accounts for 646,000 MW, gas 8,100 MW and oil 2,145 MW. The fuel is unknown or undecided for 43,000 MW of capacity.

Presently 470,000 MW are in operation. The McIlvaine database shows more coal plants likely to be in operation in 2010 than the official Chinese estimate of 622,000 MW of coal capacity.

Many of the older Chinese units are 150 MW in size or smaller. Most of the units under design are 600 MW. Many of the planned units are of the super critical design. The database does not include industrial coal-fired boilers. There are many thousands of these small boilers. Many are being retired as the power is being supplied by the new utility units.

Country wise coal capacity in MW

As per reports, by 2011 China will have more coal fired capacity than the US and Europe combined and more than the next six countries combined.

Egypt extends bidding deadline Report

It is reported that the Egyptian Holding Company for Metallurgical Industries has extended the period for accepting proposals on its 83.1% stake in the Arab Company for Special Steel after the recent government decision to impose taxes on steel exports.

As per reports, about 16 bidders informed the Holding Company for Metallurgical Industries that fundamental changes should be introduced on the deal terms

A senior official at the holding company said that investors voiced intentions that they would revise their feasibility assessment of the companys assets in light of the recently imposed export taxes and extended the period for accepting proposals to March 16 instead of February 28. The official asserted that the export tax amounted to EGP 160 per ton. Bidders voiced concerns that the export tax could cut down the company's cash flows and urged the holding company for a revision of due diligence assessment of the company

Meanwhile officials from the Ministry of Investment denied that they have been informed with any negative reactions on the steel and cement investment market after the introduction of export taxes.

Donetsk increases roll output by 30% YoY in 2 months

Interfax reported that Ukraine's Donetsk Metallurgical Plant raised finished roll output tentatively 301% YoY in January to February to 121,000 tonnes including 58,000 tonnes in February.

The plant produces 290 types of sections bars shaped steel, steel plate and ship building steel that complies with the international EN ISO 9001:2000 standard and has been certified by Germany's Tuv Nord Cert.

Russia exported 15,600 tonne of unprocessed nickel in January07

Russian FIS reported that 15,500 tonnes of unprocessed nickel worth of USD 499.4 million were exported to overseas countries.