March, 20 2007
Indian steel industry calls for quantity cap on export of iron ore
Close on the heels of Mr P Chidambarams statement about a possible review on recently imposed export tax on iron ore, Indias domestic steel industry has renewed their aggression on this matte by demanding that the Indian government place a quantitative restriction on iron ore export at 90 million tonnes for the current year and 15% reduction every year until the exports are brought down to zero in five to seven years time.
Mr Moosa Raza president of Indian Steel Alliance at a press conference organized by Assocham said Iron ore export needs to be limited because there is a shortage in the supply of iron ore to the domestic steel industry. When the steel industry reaches a capacity of 200 million tonnes by 2020, it will need 350 million tonne ore. We should restrict exports to attract long term investments in the steel sector.
Mr Raza added that Imposing a levy of INR 300 per tonne will not have a significant impact on restricting exports. It should impose a minimum levy of INR 500 per tonne until exports are completely phased out.
Mr Raza added that the spot iron ore sales prices have increased to USD 61 a tonne in February from USD51 a tonne. He said At this price the exporters are left with a surplus of at least INR 1,500 a tonne even after deducting all expenses and the export duty. We have been urging the government to impose at least INR 500 per tonne duty on the iron ore exports. The loss made in the form of decreasing trade volumes will be offset by exporting value added steel.
Restricting exports is a long standing demand of the steel industry which feels that iron ore needs to be preserved to meet the capacity expansion plans of the indigenous steel sector. The government had tried to address this issue by levying a duty of INR 300 per tonne on iron ore exports.
At the conference, five major steel associations including Indian Steel Alliance, Sponge Iron Manufacturers Association, Steel Furnace Association, Association of Indian Mini Blast Furnace and All India Induction Furnace Association signed a MoU among themselves seeking restrictions on exports. The MoU has been sent to ministers concerned including the Prime Minister Dr Manmohan Singh.
SAILs VISP to get iron ore mines in Karnataka
It is reported that Mr HD Kumaraswamy chief minister of Karnataka has promised to allot an iron ore mine to Steel Authority of India Limiteds Visvesvaraya Iron & Steel Plant when the delegation led by Mr MK Bhattacharya ED of VISP met him at Bangalore last weekend.
Mr Bhattacharya later said that the allotment of new mines to VISP would not only help improve the performance of the plant but also would provide new outlook for development.
VISP has been procuring its iron ore requirement from outside sources since 2004 after the mining operations were suspended at its captive mine at Kemmangundi resulting in higher input costs and had burdened the bottom line on VISP.
Congress allege that POSCO funded pro faction in election
Orissas Congress party has alleged that POSCO had funded the ruling BJD and BJP candidates in the recent panchayat polls.
Mr Jaydev Jena president of Orissa Pradesh Congress Committee while addressing a press conference at the partys state headquarters alleged that POSCO has targeted Congress since the party was supporting the agitation of the displaced people.
However, the report mentions that PSOCO officials refused to comment on the allegation by saying that Lets first check it up.
Mr Jena also alleged that several mine owners, business and industrial houses, who had received undue favor from the BJD-BJP government, had heavily funded the ruling coalition in the panchayat polls. He said We have prepared a list of such companies and individuals and will send it to UPA chairperson Sonia Gandhi and Prime Minister Manmohan Singh soon.
CIL to set up washeries in all new coal mines
Coal India Ltd has decided to set up coal washeries in all new mines that would be opened up from now on to improve the availability of coal with higher heat value in next 2 years to 4 years. This step is being taken to improve the quality of both coking and thermal coal so as to suit the requirement of steel makers and other coal using segments.
Dr Dasari Narayana Rao minister of state for coal informed the upper house of parliament that Coal India Limited has issued guidelines that in future a provision of coal washery with state of art technology so as to yield rejects containing more than 65% ash must be incorporated while formulating a project report for an opencast mine with a capacity of 2.5 million tonnes per annum or more, not linked to a pit head power house.
CIL would be setting up these washeries with its own investment but their management would be given to private operators and regular inspection would be carried out by CIL's quality control department.
Mr PS Bhattacharya CMD of CIL told Business Line that "Washing the coal is the only way to increase the heat value. For this, the model that the company plans to follow is to engage private companies to build and operate the washeries while ownership would remain with Coal India."
As of now, CIL subsidiaries run some washeries and a number of private washeries are also given the job. However, there have been several complaints on the functioning of these private washeries as the waste recovered often contains substantial heat value and this is eventually sold in the market, in violation of washing norms. Proper coal washing requires that the waste should contain 65% or more ash.
Land trouble for TATA Steel in Chhattisgarh
It is reported that farmers of 10 villages in Lohandiguda block of Chattisgarh have refused to hand over their land for TATA Steels proposed 5 million tonnes per annum steel plant until their 13 point demands are addressed by the administration.
Incidentally, members of the ruling party have come out in open to protest against the move of land acquisition by the state government causing major embarrassment to Dr Raman Singh Chief Minister of Chattisgarh. The legislators accused the government of forcibly acquiring the land from farmers. They also alleged that the farmers were not told about the compensation and the relocation scheme that Tata group is offering.
The protesting members said that acres of barren and unused land are available which could be used for setting up the steel plant. They demanded that the people from the affected ten villages had given a 13 point demand against acquiring of their land and the government should consider that.
Mr Lachchoo Kashyap MLA hailing from Bastar region said that "We are not opposing development and Tata is also welcome. We are stressing from the very beginning that the administration should acquire barren and unused land for the Tata unit and not the farmers' land. This way no one will protest and it will also lead to the development of the villagers."
The BJP members also wanted the state government to convene a Gram Sabha, under the Panchayat Raj system, to decide whether the villagers are interested to hand over their land or not. They also demanded protection from the state government saying, without consent of the local villagers a single inch of their land should not be acquired for TATA Steel.
GAIL & RIL sign MoU for cooperation in gas business
Gail India Ltd has signing a MoU with Reliance Industries Ltd for cooperation in gas sector. The areas of joint cooperation identified are Natural Gas Pipeline Transmission & Marketing, CBM Gas Opportunities, City & Local Gas Distribution, Operations & Maintenance services, Exploration & Production and Technology & Knowledge Sharing.
Under the MoU, GAIL and RIL will discuss co operation in the development of a gas grid and examine opportunities that may be available for optimal utilization, sharing and inter-connectivity of their respective, existing and planned transmission and distribution networks.
The MoU also provides for cooperation between the GAIL and RIL in the purchase, sale, swap and marketing of gas and import of gas through transnational pipelines. Further, the two Companies shall share pipeline capacity in Andhra Pradesh, Maharashtra and Gujarat on mutually agreed terms.
Both the companies will now work out the modalities for transportation of natural gas from the various gas sources of RIL in Krishna Godavari and Mahanadi basins on the east coast through pipeline and long term arrangements with regard to gas supply and distribution under the MoU.
Dr UD Choubey CMD of the GAIL said that "This is a turning point for both the Companies. It is also a reinforcement of the concept of working together in the natural gas sector. This MoU is the beginning of cooperation in the areas of pipeline and evacuation of natural gas from various fields."
CEPL to increase thermal coal imports for coastal plants
It is reported that Coastal Energy Private Limited has signed several MoUs with TATA Power, Maharashtra State Electricity Board and other state electricity boards for supply of thermal coal along the Indian coastline and is likely to imports to 16 million tonnes of coal annually from the current levels of 6 million tonnes per annum.
Mr Ahmed Buhari president and CEO of COG said that the Coal and Oil Group was planning to acquire mines and mining assets in Indonesia. Mr Buhari added that With power companies increasing dependence on coal, fuel security has assumed paramount importance. The need, therefore, arises for importers like us to hedge through equity mining and long term agreement supplies. In some cases we pre finance mines in return for coal.
Close to 15,000 MW of power is expected to be generated by the power plants located in coastal areas resulting in a demand of around 45 million tonnes of thermal coal per year over the next three to five years.
Coastal Energy Private Limited is part of the Dubai based Coal and Oil Group.
Power transmission project from North East India planned
Mr Sushilkumar Shinde union power minister informed the upper house of Indian parliament that Central Electricity Authority and Power Grid Corporation of India Ltd have planned a scheme for evacuation and transmission of power to be generated in the new power projects in the North East Region, Sikkim and Bhutan to the states in the Northern and Western regions of India.
The scheme envisages a + 800 kV HVDC bipole of 6000 MW capacity.
The states of Northern and Western Regions would be the beneficiaries of this transmission project.
CST reduction bill to 3% passed by parliament
The lower house of Indian Parliament has passed the Taxation Laws (Amendment) Bill 2007, paving the way for reduction in the Central Sales Tax rate from 4% to 3% with effect from April 1st 2007. The Bill has to now be passed by the upper house.
The Bill basically amends the CST Act of 1956 to enable a phased abolition of the levy by April 1st 2010, which will also be the date for introduction of a nationwide Goods and Service Tax.
Mr P Chidambaram finance minister of India said that the Bill provides for lowering the CST rate to three per cent from April 1st 2007 besides conferring the Centre enabling powers to carry out further reductions through notification in the gazette.
The CST is an origin based tax on inter state sale of goods and is not provided refund credit by the consuming State, it militates against the principle of value added tax where set offs are given against taxes paid on inputs and other previous purchases.
NTPC to expand Simhadri Thermal Power Plant capacity
Mr Sushilkumar Shinde union power minister informed the lower house of parliament that NTPC has proposed to expand the capacity of its existing Simhadri Thermal Power Project by adding 1000 MW capacity in Stage-II. Mr Shinde said that subject to timely clearances and approvals, both 500 MW units of the project are envisaged for commissioning in 11th Plan period.
Mr Shinde informed that the feasibility report for Simhadri TPP Stage-II has been finalized with an estimated cost of the project as INR 4844.40 crores and various input tie ups and clearances including environment clearance from Ministry of Environment & Forests are being processed.
He added that additional average daily power generation from Simhadri Stage-II after commercial operation date would be 19.2 Mega Units at 80 % Plant Load Factor and 21.6 MUs at 90% PLF.
Madhucon Projects enters into power sector
It is reported that Hyderabad based infrastructure company Madhucon Projects Limited has picked up 48% equity Malaxmi Groups special purpose vehicle Simhapuri Energy Pvt Ltd to enter power sector.
The 540 MW project located at Krishnapatnam port in Nellore district of Andhra Pradesh will be developed in 2 phases of 270 MW each and would be based primarily on imported coal.
Madhucon Projects Limited has also incorporated a wholly owned Indonesian company called PT Madhucon Indonesia for sourcing of thermal coal from Indonesia for this power plant.
MMK and ENRC ink 10 year SSGPO iron ore agreement
Magnitogorsk Iron & Steel Works and Eurasian Natural Resources Corporation sales arm ENRC Marketing & Sales have announced signing a 10 year iron ore supply contract.
ENRC Marketing & Sales will supply iron ore from SSGPO a unit of ENRC and will supply iron ore concentrate, fluxed pellets and other iron ore materials to MMK for next ten years in the volumes agreed by the parties. Pricing is based on international prices and allows price indexation for every contractual year.
Mr Victor F Rashnikov chairman of the board of directors of MMK said that "We are pleased to have reached this agreement with ENRC, cementing our important partnership for the foreseeable future. It brings our cooperation to a new level ensuring the long term, stable provision of key raw materials to MMK and helped to guarantee our competitiveness well into the future.
Dr Johannes Sittard CEO of ENRC said "The conclusion and signing of this long term supply agreement reflect the long standing ties between our two companies. The confidence and trust in our business partner MMK since the formation of SSGPO allows us to commit and guarantee a large portion of our production. This agreement gives SSGPO the basis to continue to invest in the upgrading and enlarging of its operations.
MMK and SSGPO have enjoyed a close partnership since the establishment of SSGPO within the Soviet Union in the mid 1950s.
Baosteel & CSSC form a shipbuilding JV
Baosteel Group Corp and China State Shipbuilding Corp have signed an agreement for forming a 65:35 JV to invest more than CNY 10 billion (USD 1.25 billion) in a civilian shipbuilding venture.
The JV will set up 2 shipyards at the Jiangnan Changxing Shipbuilding Base at the mouth of the Yangtze River. Each yard will have 2 docks with a total of 4.5 million deadweight tonnes of shipbuilding capacity per year.
As per reports the construction of the lines had begun and the yards will begin production in May and that the venture is fully booked through 2011 with more than 7 million tons of orders.
CSSC is the parent company of 60 subsidiaries covering ship building, ship repair, research and development and offshore engineering. CCSC has finished manufacturing 103 new ships for civil use, about 6.02 million dead weight tons in total, last year accounting for 43% of China's total output and 8.2% of the world's total. CSSC became the world's third largest shipbuilding conglomerate last year behind the South Korean Hyundai Heavy Industries and Japan's Imabari Shipbuilding Company.
Shadeed to increase capacity to 3.5 million tonnes
It is reported that Oman based Shadeed Iron & Steel plans to expand the capacity of its Sohar complex to 3.5 million tonnes per year by 2010-2011.
Mr Ali Hamil al Ghaith GM of the UAE based Al Ghaith Holding PJSC while addressing the Arab Steel Summit 2007 informed that the increase is proposed to be achieved through capacity expansion and product diversification.
He said We have already set our sights towards our future plans and we look forward to developing a fully integrated state of the art steel complex at our site, so as to achieve the vital edge in terms of product diversification and also to maximize the production capacity to 3.5 million tonnes per year by 2010-2011.
Shadeed is currently building the Omans first steel making unit comprising of a 1.5 million tonnes per year direct reduction iron based plant with a 1 million tonnes per year steel melt shop at a site within the industrial Port of Sohar at an investment of USD700 million. It is also planning to build a seamless tube mill in partnership with Arcelor Mittal.
CVC in talks with Boehler-Uddeholm for taking a major stake
An international private equity firm CVC Capital Partners is in talks with Austrian leading special steel producer Boehler-Uddeholm AG valued at around EUR 4 billion about a takeover offer. CVC said any offer would be conditional on getting the support of Boehler's executive board.
Mr Christian Wildmoser MD of CVC in a statement said that his company was weighing whether to make a formal bid for the steel maker and had contacted both Boehler Uddeholm and its largest shareholder, Austria's BU Industrieholding whose majority stockholder is Mr Rudolf Fries.
Boehler Uddeholm confirmed that a financial investor has expressed an interest in purchasing stake in the company. It said in a statement that it had been contacted by the investor last week but was obliged by the Austrian laws on takeovers not to disclose the talks.
Austrian Press Agency cited Mr Claus Raidl the head of Boehler-Uddeholm as saying that "CVC is going to make an offer for the Fries group that's one thing. CVC also asked us if we would welcome a takeover bid that's the second thing. We are still examining the situation and have to consider if a takeover is in the interest of the company.
Vienna based Boehler, a former state owned company, made its debut on the stock market in 1995 and was fully privatized in 2003. APA said BU Industrieholding holds 20.95% of Boehler-Uddeholm. Its customers include Boeing Co and Airbus SAS. Boehler has invested in Brazil, Germany and Sweden in the past three years in response to growing demand from energy, aviation and car companies. Last month, the company said profit rose to a record EUR 245.7 million in 2006 on sales of EUR 3 billion.
CVC is Europe's No 2 buyout firm, after London based Permira Advisers LLP.
Esmark & Wheeling-Pitt sign merger agreement
It is reported that Wheeling-Pittsburgh Corps board of directors and Esmark Inc have entered into an agreement to combine the two companies and the transaction is expected to be complete by this summer.
The combined company will use the Esmark Inc name. Mr James Bouchard will be the chairman of the board & CEO and Mr Craig Bouchard will be vice chairman and president.
Mr James Bouchard said "Today marks an important milestone in our vision to build the most efficient downstream steel production and distribution company in the US.
He said By blending the mini mill, service center converter and finishing assets of the two companies, we expect to be able offer our customers across the Midwest a low-cost production and just in time delivery method unrivaled in the domestic steel industry."
Chains commerce ministry drafting new export tax rebate policy
Mr Bo Xilai minister of Chinas commerce department during the closing ceremony of the 10th NPC 5th session said that adjustment of tax rebate policy will be a dynamic process and is subject to redress according to the overall export situation and won't stay invariable.
Mr Bo admitted a relatively big active trade balance in February 2007 and said that the ministry of commerce is studying the reasons one of which is expectation driven export expansion by the exporters. He said high trade surplus is not a problem of the trade policy itself but concerns the overall economic situation will need comprehensive measures and a process to solve.
Mr Bo further explained a variety of factors should be considered as to China-US trade situation such as US export to China, US investment in China, buy-back of products to US and the US service trade to China etc
Previous reports said the Chinese government is to expand the list of exports for which it will reduce or remove tax rebates in order to curb the surging export and big trade surplus export rebate might be removed for such products as some steel varieties, copper, nickel and certain base metals, and cut lower for fertilizer, ceramic, technical articles and textiles etc.
Mr Luo Bingsheng CISA deputy director also disclosed during the NPC and CPPCC, that China may soon reveal the new tax rebate policy, which may involve a cut to 5% for a part of steel varieties and cancellation for wire rod and flat-dominated products
(Sourced from MySteel.net)
Methane gas blast kills 75 coal miners in Kuzbass
It is reported that a methane gas explosion killed at least 75 miners at Ulyanovskaya underground coal mine in the coal rich Kuzbass basin in Kemerovo region of Russia's worst mining disaster in a decade. As many as 200 workers were in the mine at the time of the blast which occurred yesterday morning at a depth of around 885 feet.
Mr Sergei Cheremnov a spokesman for the regional government in Kemerovo told the Associated Press that at least 75 miners were killed, with an unknown number of bodies brought to the surface. He said 75 people had been rescued and 50 others were still missing. The rescuers were checking a large section of the mine for survivors but their work is complicated by a great number of obstructions.
It is reported that some company officials were in the mine examining a British made safety system along with a British representative of the company that made the system. The British man and his interpreter are now reported to be missing.
The Ulyanovskaya mine is located in the city of Novokuznetsk about 1,850 miles east of Moscow and is operated by Yuzhkuzbassugol. Yuzhkuzbassugol is Russia's leading producer of coking coal, comprising of 24 enterprises, including nine coal mines, two enriching plants and other operations supplying coking coal to steel and byproduct plants. Yuzhkuzbassugol's total production in 2005 was 13 million tons of coking coal and 4 million tons of steam coal. Evraz Group SA acquired a 50% stake in the company in 2005.
Norilsk Nickel elects Mr Morozov as new GD
Norilsk Nickel's official Web site reported that its board of directors at a meeting on March 16th has elected Mr Denis Morozov as Director General to consolidate the group's energy assets for further transfer of the assets to a separate company and distribution of shares among MMC stockholders on a pro rata basis.
Mr Mikhail Prokhorov decided to resign as GD of Norilsk Nickel from April 2nd 2007 which is accepted by Norilsk Nickel board of directors and voted unanimously for the appointment of Mr Denis Morozov new DG since April 3rd 2007.
Mr Andrey Klishas chairman of MMC Norilsk Nickel board of directors stated that "Mikhail Prokhorov has done a lot for Norilsk Nickel and a whole epoch of major reforms in the company is closely related to his name. We are thankful to Mr. Prokhorov for the years of selfless work, which resulted in almost 10 times growth of Norilsk Nickel market capitalization. The company has become a global leader in the metals and mining sector. Under his governance an effective management system was introduced and high social and corporate responsibility standards were reached.
Mr Klishas added that In our turn, we'd like to congratulate Denis Morozov, the new Director General, on such a high position, and to wish him success in his further work. The team of Norilsk Nickel with Mr. Morozov in charge will have to launch a lot of new projects and continue those, which have already been started including the consolidation of the energy assets. The Board of Directors will render maximum assistance to the new General Director to accomplish the tasks of the Company."
Kumba halts drilling at Faleme iron ore deposit in Senegal
It is reported that South African miner Kumba Iron Ore has stopped drilling at the Faleme deposit in Senegal where a rights dispute has arisen with the Senegalese government after an agreement with Arcelor Mittal was concluded recently.
Mr Vincent Uren COO of Kumba Iron Ore confirmed that the company had received a letter from the Senegalese government and that management was trying to understand what it means.
He said that the company has recently ceased drilling at the iron ore deposit and that it was still reviewing all alternatives to preserve its rights over the disputed deposit.
Arcelor Mittal plans to spend USD 2.2 billion to develop the Faleme deposit following the conclusion of a binding agreement with the Senegalse government recently. On the other hand, Kumba Iron Ore says that it had exercised an option to buy a controlling stake in the project some time ago although the State had put this interest in dispute in 2005.
Further steel export rebate cut by China to reduce trade frictions
Mr Zhang Guobao deputy director of Chinas National Development & Reform Commission at China Development Forum said that China is considering removing the export rebates on some steel products to curb exceeding exports of high energy consuming products as well as ease pressures on steel exports from international market with an export rebates cut on some steel products from 11% to 8% in 2006.
Mr Zhang adds the reduction of exports and trade frictions and the maintenance of world trade order are among the main purposes of the policy adjustments. He also noted that in China, a country with few energy resources per capita high energy consuming industries development regardless of environment and energy consumption is extraordinary dangerous.
Chinese government has restricted the exports of high energy consuming and resource intensive products for many times, including canceling export rebates on products such as electrolytic aluminum, coke, ferroalloy and billet & slab and cutting export rebates on over 140 varieties of steel products.
In the first two months of 2007 China's exports and active trade balance maintained swift growth hit USD 23.7 billion the 2nd highest in the history.
(Sourced from MySteel.net)
USs January shipments down by 3.5% YOY
The American Iron and Steel Institute reported that for the month of January 2007, US steel mills shipped 8.614 million net tonnes of steel down by 3.5% YoY from the 8.918 million net tonnes shipped in January 2006 and up by 13.2% MoM from the 7.609 million net tons shipped in the December 2006.
A YoY comparison of year to date shipments shows the following changes within major market classifications:
1. Service centers and distributors down by 8.9%
2 Automotive down by 4.2%
3. Construction and contractors products up by 5.1%
4. Oil and gas down by 4.0%
5. Machinery, industrial equipment and tools down by 5.1%
6. Appliances, utensils and cutlery down by 9.9%
7. Containers, packaging and shipping materials down by 9.3%
8. Electrical equipment down by 11.9%.
AISI is comprised of 32 member companies, including integrated and electric furnace steelmakers, and 125 associate and affiliate members who are suppliers to or customers of the steel industry. AISI's member companies represent more than 75% of both US and North American steel capacity.
Bekaert to buy Uralcord in Magnitogorsk
It is reported that world's 2nd biggest steel wire producer Belgium based Bekaert Group has reached a preliminary understanding on the purchase of the Uralcord plant from Magnitogorsk administration.
A spokesman for the Magnitogorsk administration told Interfax that the understanding was reached last week during a meeting between city officials and a delegation from the Belgian company. He said "The foreign investors intend to expand production and create new jobs."
The administration's website said that Bekaert had received the city's official stamp of approval for its plans to become Uralcord's strategic investor.
NAS orders for SS annealing & pickling line
North America's largest integrated stainless steel producer, North American Stainless, an affiliate of the Acerinox Group, placed an order on Andritz Group for supply of one of the worlds largest annealing and pickling lines for hot rolled stainless steel. Production is scheduled to start by the end of 2008.
With a capacity of approximately 1.2 million tons per year, the plant will process strip in the thickness range from 1.5 to 14 mm and up to 1,600 mm wide.
In addition to the mechanical equipment, Andritz will supply the annealing furnace and the complete pickling section with all ancillary equipment.
Mr Kiernan appointed as Territory Iron chairman
It is reported that West Perth-based iron ore explorer Territory Iron Ltd has appointed Mr Michael Kiernan as chairman to help prepare the company for its move to production. Mr David Macoboy has stepped down as chairman but will remain a director of the company.
Mr Michael Kiernan has more than 30 years experience in transport, mining, contracting and resources industries, including the development and operation of mining projects in manganese, iron ore, nickel, tin and gold.
Territory has also appointed its general manager of operations Mr Bruce McFadzean to its board where he will join the company's current chairman Mr David Macoboy as a director.
Territory raised USD 30 million through a share placement with Crawley Resources Ltd jointly owned by Mr Kiernan and Noble Group in February 2007 to fully fund the remaining costs of its Frances Creek Iron Ore project in the Northern Territory which the company aims to start mining in May.
Safika buys stake in SA's coal transporter Oosthuizens Ltd
South African Black Empowerment group Safika Holdings announced that it has bought a 36% stake in Oosthuizens Ltd South Africa's largest independent coal transporter under a new legal entity called Oosthuizens Transport SA Ltd.
The deal sees Safika Holdings, in which Standard Bank and Liberty have a combined 20% stake acquires 36% ownership of Oosthuizens and the rest of the shares will be retained in equal amounts by current owners Oosthuizen brothers who will continue as directors and be involved in the day to day running of the company. Safika executives Mr Vuli Cuba and Mr Nchaupe Khaole will serve on the board.
Mr Vuli Cuba CEO of Safika Holdings said the Oosthuizens business was a particularly attractive deal because of its unique method of operation and sound business reputation. He said Our investment decision was further enhanced by two strategic considerations one being the fact that Global economic growth has led to an increase in export demand for South African coal and the need for increasing electricity generation also presented a growth opportunity for the company.
Established in 1995 by Mr Moss Ngoasheng and Mr Vuli Cuba, Safika has been at the forefront of South Africa's economic evolution through a number of strategic alliances and partnerships. The company has been expanding its interests in the logistics sector. The Oosthuizen acquisition follows in the footsteps of the acquisition of an interest in Fidelity Cash Management Services.
Arcelor Mittal to exchange RAG stake for EUR 1 Report
Handelsblatt citing sources within the Arcelor Mittal's supervisory board reported that Arcelor Mittal has agreed to exchange its 6.5% RAG stake for the symbolic price of EUR 1. The report cites the sources as saying that Arcelor Mittal will sign an agreement on the matter this week.
Arcelor Mittal's move would clear an important hurdle for the RAG initial public offering tentatively scheduled for the end of this year or early next year. Earlier press reports indicated that RAG's other major shareholders have already agreed to exchange their holdings in exchange for debt relief related to its domestic activities.
German coal mining conglomerate RAG is owned 39.2% by E.ON AG, 30.2% by RWE AG, 20.6% by ThyssenKrupp AG and the balance by holding company Verwaltungsgesellschaft RAG Beteiligung GmbH.
Corus Ijmuiden orders for annealing furnace
French Stein Heurtey was awarded an order from Corus to supply a digiflex vertical annealing furnace and the after pot cooling section of the new automotive hot dip galvanizing line DVL3 for the Anglo Dutch steel makers IJmuiden works in the Netherlands. It is scheduled to start production in mid 2008.
The digiflex furnace features the latest technologies dedicated to the production of high quality full finished automotive products, and includes a direct fired heating furnace, a pulse fired radiant tube furnace, an ultra rapid cooling section and an induction booster.
The galvanizing line will have a capacity of 500,000 tonnes per year and will be used to increase IJmuidens automotive sales from j 1 million tonnes per year to roughly 1.4 million tonnes per year. The majority of the additional products will be advanced high strength steel grades targeted at Corus traditional markets in Europe as well as new EU member countries.
Stein Heurtey will carry out this project in cooperation with Siemens VAI as the leader of the consortium and Siemens Belgium as the electrical partner.
BMZs steel production up by 2.9% YoY in 2 months
It is reported that Belarusian Metallurgical Plant increased steel production by 2.9% YoY to 353,800 tons during January to February 2007. Its production of saleable materials in these 2 months increased by 7.8% to BYR 535.2 billion.
BMZ, during January to February 2007, produced 13,800 tons of metal cord which is 2.5% more than in January to February 2006.The output of bead wire grew by 62% up to 6,070 tons, of other wire by 27.7% to 17,700 tons, rolled metal products slightly decreased by 1.3% and made up 283,800 tons.
In January to February 2007 BMZ exported USD 230 million worth of products at increase of 71% as against same time in 2006.
BMZ, founded in 1984, now is an export oriented manufacture trading with more than 50 countries worldwide, exports exceed 85% of the total output specializes in production of cast section, section shaped and sorted stock, reinforcing bars and metal cord etc.
Comprehensive report on Indian steel sector
The Indian steel industry is poised for massive expansion. Dramatic consumption growth over the last few years has stimulated enormous expansion plan, facilitated by unexploited iron ore raw material base. India is now being hailed as the new China, where crude steel production soared from less than 100 million tones in 1995 to over 400 million tones in 2006.
Indian crude steel output at just 38million tonnes in 2005 is starting from a much lower base, and the economic steel- consuming structure of China is substantially different from India. Nevertheless, India has recently established a long-term goal of raising crude steel production to 100 million tonnes per annum by 2020.
UK based GFMS Metals Consulting in an innovative way and value for money report on Indian steel industry includes complete statistical coverage of the industry, an unbiased and frank assessment of growth expectations, a base case outlook for each steel product & the industry as a whole with a clear view of potential risks, an assessment of raw material availability and trends and production, trade and consumption forecasts out to 2011.
The report coverage includes historic production, trade & apparent consumption of carbon steel both long and flat products, raw materials, producers, economic environment, political and other risk factors.
If you are interested to know more about it please visit
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