March, 25 2007
Long queue for 38 coal blocks allocation
FE reported that Indian coal ministry has received as many as 748 applications from the power sector, 142 from the steel sector and 531 from various other sectors in response to its advertisement for the allocation of 38 blocks with total reserves of 6,113.711 million tonne.
Coal ministry, out of the 38 blocks, has earmarked 15 blocks for the power sector and the remaining 23 for the steel and other sectors. The blocks are situated in Chhattisgarh, Jharkhand, West Bengal, Maharashtra and Madhya Pradesh.
Coal ministry sources said priority would be accorded to projects with a capacity of 500 MW or more in the power sector. Similarly in case of the steel sector priority would be given to plants with a capacity of 1 million tonne per annum or more.
Power companies that have applied for the blocks include TATA Steel, Reliance Energy, GMR, AES, Jindal Steel & Power, IFFCO, Bharat Aluminium, Ispat Industries, Hindusthan Zinc, Hindalco, Bhushan Power & Steel, Lanco Group, Torrent Power, Chhattisgarh State Electricity Board and West Bengal Generation Company.
In the steel sector, the applicants include Essar Steel, Mukand Ltd, Sterlite Iron & Steel, Uttam Galva, Kalyani Steel, Ramswarup Loha Udyog, Adhunik Alloys, Lloyd Steel and TATA Metaliks Ltd. Of the remaining 531, large firms lining up for coal blocks include ACC, Lafarge India and Gujarat Ambuja.
Rail cum sea freight link between Indian & Russia envisaged
BL reported that the Russian Railways is in discussions with the Indian Railways for forming a consortium to offer container transportation service between Russia, Iran and India through a rail cum sea link. The proposal envisages sea connectivity between Indian ports and Bandar Abbas in Iran and subsequent rail link to Russia.
Mr Vladimir Yakunin the Railways President of Russian while speaking to Business Line on the sidelines of International Union of Railways conference said that "We have suggested that an operator be formed led by India, Russia and Iran. We are in talks with the Indian Government officials on the issue."
Russian Railways has already signed a MoU with the Iranian Railways to set up an international consortium to build Qazvin-Rasht-Astara railway track and jointly operate the line.
Delhi to set up 700MW gas based power plant at Dwarka
Delhi government is planning to set up a 700 MW gas based power plant near Bamnauli in Dwarka at an investment of INR 2,300 crore. The new project will help Delhi to meet its future demand, which is expected to reach 6,000 MW by 2010.
Delhi government is waiting for the necessary clearances, including environmental clearance for setting up the project. Land for the project is yet to be acquired.
Apart from the 995 MW generated by the two power plants owned by Delhi government Indraprastha Power Generation Co and Pragati Power Corporation, Delhi also sources the entire power generated by NTPC's 630 MW Badarpur plant in Haryana.
Tehri Hydro synchronizes 4th 250MW unit
The final phase of the Tehri Hydro Development Corporation has recently started operating to full capacity with synchronization of its 4th and last 250 MW units. THDC in a statement said that "The Tehri Hydro Development Corporation has achieved the historic milestone of successfully synchronizing its 4th and last unit of 250 MW.''
The first phase of the project was commissioned in October 2005 and three units have been in operation generating 750 MW of electricity so far
THDC plans to contribute 1,844 MW capacity additions in hydel power during the 11th Five Year Plan period of 2007-2012 by commissioning 400 MW Koteshwar, 1000 MW Tehri pumping storage plant and 444 MW Vishnugad Pipalkoti projects.
Anand Engineering to set up steel fabrication unit at Nagpur
PTI reported that power plant equipment manufacturer Anand Engineering Products Private Limited plans to set up an INR 100 crore steel fabrication unit at Nagpur in Maharashtra.
Mr K Premanathan MD of AEPPL said that "The Company is investing INR 100 crore to create steel fabrication facility, combined with heavy machining capability. The requisite civil works would begin by April May this year." He added that the unit would cater to the fabrication and engineering needs of the energy sector and the total installed capacity would be 50,000 tonnes per annum.
He said the company has invested more than INR 60 crore in the last 3 years towards modernization and enhancing installed capacity of the four facilities at Thuvakadi which is expected to produce 33,000 tonnes this year. Mr Premanathan said that construction of windmill towers had touched 400 in 2005-06 from just 20 in 2000-01 and this year, the company has already supplied 320 windmill towers. It would soon embark on large scale exports.
SEBI puts Mundra Port & SEZ IPO on hold
BS reported that the Securities & Exchange Board of India has put in abeyance for 90 days the draft prospectus of Mundra Port and SEZ promoted by the Adani group, as the promoters face prosecution in a Mumbai court over allegations of share price rigging in the 2002 stock scam involving Mr Ketan Parekh.
SEBI said that The draft offer document of the company has been filed on March 6th and the period of 90 days expires on June 4th till which time the SEBI is obligated to keep in abeyance issuance of observations on the offer document.
SEBI added that Hence, in terms of the general order passed under Section 11A of the SEBI Act, 1992, an interim or final order on the SCNs issued has to be passed within 90 days from the date of the general order or filing of the draft offer document, whichever is later.
Mr Ameet Desai executive director of SEZ Ltd and Mundra Port said the draft prospectus was filed in line with the SEBIs December 2006 circular that said a company that had received SEBIs show cause notice could file the draft prospectus.
Chinese SS makers discuss effect of rising cost of nickel
On the China Foshan 1st International Metals Industry Exposition ending Mar 18, leading stainless makers like Baosteel, Taiyuan Steel and a lot of small local small & medium mills initiated a heated discussion about raw material costs. It was widely agreed by the attendees that the raw material costs are unlikely to fall given wide supply gap and quick price increases in the rare metals of nickel, copper and aluminum etc. The large stainless makers seemed to be well prepared.
Mr Zhang Dongming marketing manager of Taigang Stainless Co disclosed that the nickel price has grew 30% within recent three months and may have potential to grow another 30% as some other industry insider predicted. However a Taigang spokesman offered three countermeasures to the volatile nickel price. Sign strategic cooperative pact with foreign nickel producers to hedge the risk mutually, tie up with Jinchuan Group and make more 400 series stainless to avoid nickel price rise lending an impact.
For Baosteel, new production development is most important. Baosteel has only two years of stainless making experience. A spokesman said "We'd rather cut the output, but the sales price must be ensured." Baosteel is sophisticated in 400 series stainless making.
Shaoguan Steel has improved producing technology to offset the rising cost. It warned that domestic stainless steel makers should ink flexible supply contracts and increase value added of the finished products so as to weaken the role of raw material cost. It also said that domestic mills should not build metals stocks blindly to avoid push up further the prices already posted high due to speculation.
(Sourced from MySteel.net)
Ryerson to sell Buffalo service center and shift to Lancaster
It is reported that Ryerson Inc has put its Buffalo steel processing and distribution center up for sale and will move workers to its Lancaster site by the end of the year. Ms Evelyn Kupec spokeswoman of Ryerson confirmed plans to close and sell its complex.
She said "Ryerson purchased Lancaster Steel Co. last October 2006 and decided to consolidate our Buffalo area operations into one facility. The Lancaster Steel facility is newer it's bigger and we feel we can better serve our customer with a single location instead of two.
Ryerson acquired Lancaster Steel, a metals distribution and processing company in October 2006 for USD 5.5 million. Lancaster was founded in 1963.
Legal battle on for Shovelanna iron ore deposit
It is reported that the legal battle for disputed Shovelanna iron ore tenement in the Pilbara region of Western Australia between the WA state on behalf of Rio Tinto and Cazaly Resources is proceeding in the Supreme Court.
During the hearing, lawyers acting for the WA government said that penalizing Rio Tinto after a courier failed to deliver critical renewal documents would have a detrimental affect on investment in the West Australian mining industry and WA would be the ultimate loser.
Mr Rob Mitchell state's barrister told the court that If Rio was to lose hundreds of million's of dollars worth of resources because of a slip by a courier, it would be detrimental to investment in the state. Mr Mitchell argued that companies wouldn't invest in hundreds of millions of dollars worth of infrastructure if resources could be lost on a whim.
Mr Malcolm McCusker barrister for Cazaly argued that it contravened the Mining Act's aim of encouraging a use it or lose it policy, which requires tenement holders to develop resources in a timely manner.
Junior explorer Cazaly Resources secured rights for Shovelanna in 2005 after Rio Tinto allowed its license to expire but the tenement was handed back to Rio Tinto after Mr John Bowler resources minister used his discretion under the state's Mining Act. Cazaly Resources has filed an appeal against the decision.
Nucor in USs top performing company list of Business Week
Charlotte Business Journal reported that Nucor Corp has earned the No 4 ranking on BusinessWeek magazine's list of the 50 top performing companies in the United States.
In its March 26 issue, Business Week says that Charlotte based Nucor is known for its enlightened work force relations and commitment to new technologies. The steel manufacturer pays line workers according to their productivity and implements their ideas to make the process better. It adds that Nucors performance also has been aided by several acquisitions in 2006
Nucor and its affiliates operate facilities in 19 states producing carbon and alloy steel in bars, beams, sheet and plate, as well as metal building systems and light gauge steel framing. The company's net income in 2006 was up by 34% YoY to USD 1.76 billion and revenue jumped by16% YoY to USD 14.75 billion.
China global leader in nonferrous output
Xinhua citing China Nonferrous Metals Industry Association reported that China has led the world in nonferrous metals output, as its output of nine nonferrous metals excluding nickel topped the world.
China produced 3 million tonnes of copper, 9.35 million tonnes of electrolytic aluminum, 2.74 million tonnes of lead and 3.15 million tonnes of zinc in 2006. China's output of 10 main nonferrous metals including copper, aluminum, nickel, lead, zinc and magnesium, surged 17.48% YoY to 19.17 million tonnes in 2006.
Profits of the country's main nonferrous metals companies soared 99.5% to CNY 110 billion (USD 14.1 billion) in 2006.
Mr Kang Yi the chairman of CNMIA said that the Chinas nonferrous metals output will increase rapidly with prices remaining at a high level due to rising demand in 2007.
FMG facing constraints in construction
Fortescue Metals Group said that it was facing constraints at its mine and railway construction sites well before a cyclone damaged its operations. FMG in its February construction report said that the lack of accommodation at the mine construction site was providing a constraint and railway progress was disappointing.
The report said that "Accommodation at the mine Cloud Break remains a constraint to mine progress. At the rail, progress was disappointing during the period with productivity issues affecting the earthworks contractors progress. Drill, blast and fill operations are behind schedule and discussions are currently underway to accelerate these activities with the establishment of a new work front and expanded working hours."
In a project update, FMG said construction works would not return to full capacity within the next 2 weeks to 3 weeks at Cloud Break until two accommodation camps had been cleared from a safety prospective.
FMG said that "Work on the rail line has not recommenced to date as the respective contractors have not yet been able to return to their accommodation and the timing of remobilization has not yet been confirmed, however it is expected that workers will move back into rail camp 2 by the end of March."
Kennametal to acquire Purity Metal
YIEH reported that US based Kennametal Inc will acquire Purity Metal Holdings Inc and its subsidiary International Specialty Alloys Inc.
According to Kennametal, this acquisition will be helpful to its growth and investment strategies because ISA will represent half of Kennametal's Advanced Meterials Solutions Group.
ISA will bring more products to AMSG with its production of refining chromium and titanium.
Kennametal Inc makes metal cutting tools and other manufacturing equipment.
Gladstone to raise funds to complete feasibility study
Australian Gladstone Pacific Nickel announced that it will raise USD 40 million through the sale of special warrants, convertible into the companys shares, subject to the company achieving a share listing in Toronto within 180 days of the transaction completing.
The proceeds will be used first and foremost to fund the definitive feasibility study on its Gladstone nickel project which is to be completed in the third quarter of 2007 and towards ore purchase agreements, front-end engineering design and on long-lead items for the project.
Gladstone is working on long life nickel cobalt refinery to be located at Gladstone in Queensland. It would treat a combination of nickel laterite ore from New Caledonia as well as beneficiated ores from Gladstones own Marlborough property. The study envisages a plant with annual capacity of 60,000 tonnes per year nickel and 4,800 tonnes per year cobalt.
Bangladesh to privatize operations at Chittagong port
It is reported that Bangladeshs interim government is planning to privatize operations at Chittagong port to free it from union control and improve efficiency after a series of crippling strikes. Authorities plan to gradually hand over jetties to private operators, while its biggest container terminal, which has a capacity to handle 500,000 containers, will be privatized in December
Mr Abul Kashem of Port Authority said "We will just keep the role of a landlord while privatizing all our operations and services. It will boost port efficiency. But it is not total privatization. He added there had already been signs of improvement since the privatisation of a container terminal recently.
Chittagong port on the Bay of Bengal is crucial for Bangladeshs booming textiles trade and handles more than 90% cent of the countrys exports and imports worth USD 25 billion. But it has become a battleground for political and worker disputes giving it a reputation for unreliability among shippers.
Pluton Resources considering drilling at Irvine Island
It is reported that Melbourne based resources Pluton Resources is considering plans to drill for iron ore on Irvine Island in the Buccaneer Archipelago in northern Western Australia and its delegation comprising of Mr Neville Wran former premier of New South Wales and Mr Peter Dowding former premier of WA recently met Kimberley Land Council in Broome to reach an agreement with the area's native title claimants.
Mr Tony Schoer MD of Pluton said that research by BHP in the early 1970s identified a significant resource similar to that on neighbouring islands.
He said "The ore on Koolan Island and Cockatoo Island is actually the highest grade iron ore in the world with some of the lowest impurities. It makes it a highly desirable product for the Chinese market. We know it's the same ore body from the data that we have. We would expect that if there were commercial quantities we would develop it and most probably it would be shipped to China."
But there is concern within the region's tourism industry about the prospect of increased mining activity in the Buccaneer Archipelago. Mr Kevin Blatchford of the Kimberley Marine Tourism Association says there is now barely a square metre of the coastal Kimberley that is not subject to an exploration tenement.
Romanias Jiu Valley coal reserves exceeds 300 million tonnes
Romanian Petrosani National Pit Coal Corporation said that even after more than 150 years of exploitation of the Jiu Valley coalfields, its coal reserves still exceeds 300 million tonnes, which may last for at least 80 more years. Among other CNH projects are the promotion of public private partnerships for attracting investment and establishing conditions for getting the corporation integrated with energy complexes.
Mr Daniel Surulescu GD of the CNH said that Abandoning the coal wealth when the energy problem is so acutely felt all over the world would be a big mistake with unforeseeable consequences. The negative impacts on the environment of the coal companies still in operation have been much diminished and in some instances the action of polluting sources on the air, ground and waters has been attenuated.
The corporation aims to further reduce the negative impacts on the environment of coal mining in order to get it in line with the environmental requirements of the European Union as far as the delivery of pit coal for domestic consumption in accordance with Romania's 2007-2009 energy policy is concerned. CHN will also attempt to put to good use the methane gas resulting from pit coal deposits. Mr Surulescu said that technological process upgrading and restructuring of the production facilities will be performed without closing more mines at the same time with concentrating mining in more productive areas.
Mr Surulescu said that some of the short and medium term objectives of the corporation include preparing CNH for operating on a competitive market in line with the provisions of Directive 1407/2002 EC on state aid to the coal industry which specifies the discarding of such aid as from 2011.
Polish coal producers to invest form own funds in 2007
Polish coal mines have to invest PLN 2.28 billion (EUR 588.2 million) this year because the government has not decided to let them raise funds on the stock exchange. Experts believe, this year coal mines will manage to cover investments from their own funds but later on their situation may worsen.
According to the ministry of economy the sector needs to invest PLN 2.28 billion this year from the mines own funds and the rest are credits amounting to PLN 171 million and money from the National Fund of Environment Protection.
Mr Janusz Olszowski CEO of the Mining Chamber said that Thats why privatization plans should not be delayed.
Churchill Minings H1 pretax loss increases
Churchill Mining PLC posted a wider first half pretax loss. Its pretax loss came in at GBP 297,589 as compared with a loss of GBP 237,058 for the corresponding period last year and expenses increased to GBP 398,136 from GBP 249,731.
Churchill Mining however said that it looks forward to drilling the South Woodie manganese project in Western Australia in 2007.
Churchill Mining also said that although it found coal after drilling one target area at its Sendawar Coal project in Kalimantan, Indonesia, so far it has not been in economic quantities. It also said it continues to work closely with its consultants SRK to identify the most promising areas for test drilling.
LME appoints Mr Robert Hall as head of physical operations
The London Metal Exchange has confirmed the appointment of Mr Robert Hall as its new Head of Physical Operations. Mr Robert assumes the role with immediate effect.
Mr Robert has been with the LME for 13 years and most recently served as Warehouse Listings Manager. Prior to working for the LME, he worked for Memaco Service UK Ltd in a number of roles covering the shipment of copper and cobalt.
Mr Martin Abbott CEO of LME said LME is unique in the reach of its international network of warehouses and locations which are deemed as good for delivery. The quality of that network is a vital part of maintaining the globally accepted and trusted service that the LME provides. Mr Roberts role is therefore core to the ongoing success of the Exchange and his experience and qualities will ensure that we continue to manage develop and enhance our capabilities in these areas.
The role of Head of Physical Operations was most recently held by Liz Milan, who now leads the Exchanges ferrous metals developments as Steel Business Manager.
EBRD may help Ukraine in coal mine projects
It is reported that the European Bank for Reconstruction and Development is elaborating a number of joint projects for Ukraine's coal industry.
Mr Serhiy Tulub Ukrainian coal minister has met EBRD Country Director for Ukraine Mr Kamen Zahariev recently to discuss the issue. Mr Tulub said the ministry plans to encourage the effectiveness of the coal mines' work by boosting investments through privatization.
STAKS to increase billet output
Russias MAIR industrial groups Sunlinsky steel plant STAKS plans to increase its billets production to over 220,000 tonnes in 2007 as compared to 108,000 tonnes in 2006.
STAKS also plans to set up a new EAF based mill with annual capacity of 1 million tonnes to increase the output of billets to 600,000 tonnes by the middle of 2008 and to 2 million tonnes by 2010.
Peabody expands China office
Peabody Energy announced that it filled two newly created positions in its Beijing China office. Mr Russell Phillips was named VP of engineering for Peabody China and Mr Pan Wanze has joined Peabody's international sales and trading subsidiary, COAL TRADE's International as commercial operations manager for China. Both Mr Phillips and Mr Wanze will be based in Peabody's Beijing office.
Mr Phillips will report to Mr Mark Schroeder president of Peabody China and will be responsible for engineering related services and will assist in evaluating commercial opportunities. Mr Phillips most recently served as chief representative for Anglo American's Anglo Coal operations in Beijing. He also served as general manager of Anglo Coal's Xiwan Coal project in the Shaanxi province.
Mr Wanze will report to Mr Phil Smith director of trading for China of COAL TRADE's International and will be responsible for coordinating commercial contacts for all marketing, sales and trading opportunities for import and export coal in China. He most recently work for China Coal Group as general manager of the international cooperation department.
St. Louis based Peabody Energy is one of the world's largest coal producers and opened its Beijing office in fall 2005 and began its trading activities in China earlier in 2007.
Khartsyzsk to increase pipe output by 20% in 2007
YIEH reported that Ukraines leading pipe mill Khartsyzsk announced that it is planning to increase pipe output by about 20% to 720,000 tons in 2007.
This will include its 10 inches to 12 inches diameter pipe from the new production line. As per report Khartsyzsk has got more than 700,000 tons order in 2007.
Konecranes modifies name under branding drive
As a part of the global brand strategy that Konecranes has been pursuing since September 2006 with regard to all its group companies and shareholders approval on March 8th 2007, it has changed its name from KCI Konecranes to Konecranes.
Mr Pekka Lundmark president and CEO said By dropping KCI at the beginning of the company name and promoting business consistently under one simplified name, Konecranes aims to systematically increase its brand equity among its customers.
