Indian steel makers roll back price hike to check inflation

Indian domestic steel majors Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, TATA Steel, Essar Steel, Ispat Industries Limited and JSW Steel Limited, after meetings with Mr RS Pandey secretary government of India, have agreed to roll back the increase in prices of various steel products announced on the March 1st 2007. The increase in prices of TMT bars and galvanized steel would be rolled back entirely and in case of HRC by about 50%.

Mr RS Pandey said that the producers agreed to roll back the increase following an appeal from Mr Ram Vilas Paswan union minister for steel, chemicals & fertilizers. Mr Pandey added that the price hike has been a matter of concern and the government thought there was a need to talk to the industry.

Mr SK Roongta chairman of Steel Authority of India Limited said that the move will not have any major impact on profitability.

All the steel producers had increased the prices of TMT bars by about INR 300 to INR 700 per tonne, that of galvanized corrugated products by INR 300 to INR 500 per tonne and that of HR Coils by INR 1000 to INR 1200 per tonne from March 1st 2007.

SAIL pays INR 567.17 crore interim dividend for 2006-07

Steel Authority of India Limited has paid an interim dividend of INR 567.15 crore to the Indian government for the financial year 2006-07.

Mr SK Roongta chairman of SAIL has handed over the dividend cheque to Mr Ram Vilas Paswan union steel minister.

Mr Paswan appreciated the functioning of SAIL saying capacity utilization during the current year has gone up to 112% and assured all support to SAIL.

SAIL has earned the highest net profit of INR 4,300 crore for the nine month period ending 31st December 2006. This years interim dividend is 16% as compared to 12.5% paid last year.

JSW Steels February crude steel production up by 30% YoY

JSW Steel Ltd has announced that it has registered a growth of 30% in crude steel production in February 2007 despite a shutdown of one of the furnaces due to accidental fire on February 15th 2007.

The volume growth is achieved across all products excepting galvanizing products. The break up of product wise production during February 2007 is as below

Volume in million tonnes
Change is with respect to February 2006

JSW added that the work for repair is in full swing on re commissioning the furnace shut down in February 2007 and is expected to be on stream in April 2007. It added that the 1.3 million tonnes per annum expansion project commissioned in November 2006 is operating above 80% capacity.

CCCMCs reference prices for Indian iron ore March 5th

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released on March 5th 2007, the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week:

The change is with respect to the prices posted on February 12th 2007.
The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

Situation likely to ease in Kalinga Nagar

KalingaTimes reported that the agitating tribal of Kalinga Nagar in Jajpur district of Orissa have agreed to lift their one year old road blockade agitation from the Daitari to Paradip national highway after a long awaited reconciliatory meeting between the district administration and representatives of the Visthapan Virodhi Janmanch.

The report mentions that the tribal agreed to lift the blockade after the district administration assured to fulfill some of their demands such as returning of the chopped off palms of some of the firing victims, review of cases registered against them and payment of ex gratia to the families of the firing victims.

The Janamanch leaders however said the opposition to the TATA Steel project would continue in Kalinga Nagar even if the road blockade were to be lifted. They also stated that the government should prevent the company representatives from entering the proposed project site till the crisis was fully resolved.

The tribal have been blocking the highway passing through Kalinga Nagar since 13 tribal were killed in police firing on January 2nd 2006 while they were opposing construction of the boundary wall for TATA Steel's six million tonne steel plant project in the locality. Visthapan Virodhi Janmanch has been spearheading the anti displacement agitation at the Kalinga Nagar Industrial Complex sine last year.

The State government had been trying to persuade the leaders of the Janmanch for lifting their road blockade agitation for quite some time as the High Court had directed it to clear the blockade without delay. The Court had fixed March 9th as the next deadline for lifting of the blockade even by use of force.

Bangladesh floats tender to import Indian coal

Bangladeshi media reported that Bangladesh Power Development Board has floated a tender to import about 50,000 tonnes of Indian coal in the second phase, as the coal extraction from Barapukuria mine has remained suspended since September 2006.

A board official told media that "We are running one unit of the power plant with the imported coal and another unit is producing power with the reserve coal, but very soon the reserve will dry out."

Since its inception in September 2005, the 250 MW Barapukuria coal fired power plant could hardly go into full production mainly due to inadequate coal supply from the adjacent coal mine. The authorities have been running 1 unit of Barapukuria power plant with imported coal and another one with the reserved coal extracted from the mine.

The board had imported 25,000 tonnes of coal to run 1 unit of the plant that had remained inoperative for about 2 months due to scarcity of coal. Two units of the power plant require 2,500 tonnes of coal a day to produce electricity.

Indian government clears Konkan Railway revamp proposal

Mr Lalu Prasad Yadav union railway minister of India has approved a proposal to convert the Indian Railways' loan of INR 2,627 crore extended to Konkan Railway Corporation Ltd into preferential equity. With this, the debt equity ratio of Konkan Railway Corporation would change to 0.76:1 from 6.5:1.

Due to an improved debt equity ratio, Konkan Railway can raise funds at relatively cheaper levels and access the external market for cheaper funds. The avenues from where the company can raise funds would also expand.

Several revenue streams would open up for Konkan Railway after this restructuring expertise. A positive net worth would enable the company to participate in several international tenders, given its expertise in tunneling and bridge building at high altitudes, amongst others. Konkan Railway is unable to utilize this expertise internationally despite its technical expertise in the arena.

Konkan Railway has equity of INR 803 crore and a total debt of INR 5,253 crore. The 51 % equity of Konkan Railway is held by the Indian Railways and the remaining 49 % is jointly held by 4 state governments of Maharashtra, Goa, Karnataka and Kerala. Konkan Railway has been posting better operating results every year to reduce accumulated looses.

NTPC to enter into nuclear power generation

National Thermal Power Corporation Ltd announced that its board of directors has approved a proposal to enable the company to foray into the nuclear power generation business. A company release said that The board has given its clearance to the amendment of the object clause of the memorandum of association. The company's shareholders would consider the proposal at a later date.

NTPC has also appointed Mr S Rajgopal former Atomic Energy Commission secretary and Mr VK Kaushik former executive director of NPCIL as consultants to prepare a strategy for its proposed foray.

NTPC envisages generating 2,000 MW from atomic power by the end of 2017. At present, state owned Nuclear Power Corporation of India Ltd is the only company in the nuclear power sector. India has an installed nuclear power capacity of about 3,200 MW, less than 3% of the total generation capacity. The Government plans to add fresh capacity of 3,100 MW of nuclear energy by the end of the 11th plan (2011-12) which will be further increased during the 12th plan.

RWE to set up 150MW wind energy farm at Sangli

Reliance Energy Limiteds subsidiary Reliance Wind Energy announced that it has signed an agreement with Suzlon Energy for setting up a 150 MW wind power project in Sangli district of Maharashtra and that the project is expected to be rolled out by March 2008.

RWE in a release said that the project will be completed in two phases and would generate 380 million units per annum after completion, which would be purchased by Reliance Energy Limited for its Mumbai distribution business.

RWE added that it has plans to set up 500 MW of wind power in various states over the next 2 years to 3 years. It said "Wind Energy has got a huge potential in the country and its clean and easy to set up. We are looking at all the opportunities to augment our generation capacity."

GRIDCO to settle power bond issue with NTPC

Orissa government has allowed the Grid Corporation of Orissa Ltd to negotiate with National Thermal Power Corporation for settling the outstanding amount of the power bond issued by three private power distribution companies under one time settlement package. Mr Ajit Kumar Tripathy chief secretary of Orissa informed that a meeting of the state cabinet, under the chairmanship of Mr Naveen Patnaik chief minister, has approved this.

Mr Kumar said Concessions like reduced rate of interest from 12.5 % to 8.5 %, cash incentive of 19 % of bond value and waiver of interest due to delayed payment and waiver of 60 % of the delayed payment surcharge would be negotiated by GRIDCO under the OTS.

Southern Electricity Supply Company Ltd, Western Electricity Supply Company Ltd and Northern Electricity Supply Company Ltd had issued bonds worth INR 400 crore in 2000 to the GRIDCO as they had not paid the dues toward purchase of power from NTPC. The bond amount had now reached INR 638 crore excluding INR 110 crore paid by them toward interest.

NTPC had been pressing GRIDCO for redemption of the defaulted bond amount as a fall back arrangement as per the terms and conditions of the bond.

ABARE forecasts record Australian exports in 2007-08

Australian government's commodity forecaster announced that continued strong demand for Australian minerals and energy resources will lift commodity export earnings to a record high in 2007-08.

The Australian Bureau of Agricultural and Resource Economics in its March quarter commodities report said that commodity export earnings are forecast to increase by 7% to a record AUD 148 billion in the next financial year. Over the medium term, the value of Australian commodity exports is projected to rise in real terms in 2008-09, before gradually easing toward the end of 2011-12.

Mr Phillip Goyle ED of ABARE said The growth in export earnings forecast for 2007-08 mainly reflects increased shipments of iron ore, coal, LNG copper, grains and oilseeds in response to strong demand in overseas market.

The total value of minerals and energy exports is forecast to increase by 8% to AUD 116 billion in 2007-08, following a forecast rise of 17% to AUD 108 billion in 2006-07.

Iron ore production is projected to rise by 177 million tonnes or 9% a year, to 441 million tonnes in 2011-12. Gold mine production is forecast to rise to 289 tonnes in 2007-08 from the 255 tonnes expected this financial year. Over the medium term, copper mine production is projected to increase at an average annual rate of 7% to reach 1.35 million tonnes in 2011-12. Metallurgical coal production is projected to rise from 133.2 million tonnes in 2005-06 to 159 million tonnes in 2011-12 with exports rising from 121 million tonnes to 154 million tonnes.

China to close 35 million tonne crude steel capacity in 2007

Reuters has reported that China's is looking at closing small steel and thermal power plants this year as part of an escalated drive to crack down on pollution and energy intensive industry. China will close its dirtiest steel mills as it steps up efforts to rein in surging energy use and clean up environmental damage caused by its economic boom.

Mr Wen Jiabao premier of China in a speech at the opening of the annual session of China's legislature said "We will take strong measures to save energy, lower energy consumption, protect the environment" and use limited farmland more effectively, The government also will try to clean up polluted rivers and develop more energy efficient technology.

As per report, the closure targets for 2007 would include 30 million tonnes of outdated pig iron capacity and 35 million tonnes of crude steel capacity. The steel closure targets are part of a plan to reduce pig iron capacity at outdated facilities by 100 million tonnes and outdated steel capacity by 55 million tonnes in the five years from 2006 through 2010.

Chinese leaders blame heavy industry for China's failure to meet energy efficiency and emission reduction goals in 2006.

CMC to buy Nicholas J Bouras joist & deck making assets

Irving based Commercial Metals Co. has entered into a definitive agreement to purchase substantially all the operating assets of Nicholas J Bouras Inc including United Steel Deck Inc, The New Columbia Joist Co and ABA Trucking Corp for about USD 63 million. In addition to the purchase price, CMC also said that it would pay for the inventory on hand at the time the deal closes, which is expected to occur within 40 days following regulatory approval.

United Steel Deck manufactures steel deck at facilities at South Plainfield in New Jersey, Peru in Illinois and Rock Hill in South Carolina. New Columbia Joist manufactures steel joists at New Columbia in Pennsylvania. ABA Trucking provides delivery services for United Steel Deck and New Columbia Joist.

The addition will give CMC Joist an additional 45,000 tons of joist manufacturing capacity in a new geographic market, as well as 160,000 tons per year of deck manufacturing capacity.

The purchase does not include Nicholas J Bouras wholly owned subsidiary Prior Coated Metals and its affiliate Bouras Properties LLC.

Mr Murray McClean president and CEO of CMC said "This acquisition is in line with our growth initiative and strategy of expanding downstream steel fabrication operations. In addition, the highly complementary fit of the Bouras facilities will strengthen our position as a significant supplier of steel joists throughout the United States by expanding our manufacturing capability to better serve the Northeast and Midwest markets."

JFE raises full year forecast for 2006-07

Japanese steel major JFE Holdings Inc announced that it has raised its consolidated full year forecast of revenue from JPY 3,240 billion to JPY 3,270 billion, ordinary profit from JPY 490 billion to JPY 500 billion and net profit from JPY 290 billion to JPY 295 billion, while reaffirming operating profit forecast at JPY 495 billion for the fiscal year ending March 31st 2007.

JFE Holdings said that the upward revisions are mainly due to the cost reduction, the better than expected exchange rate and the increased sales in the metropolitan development business.

Wuhan Steel announce hike in Q2 steel prices

Wuhan Steel has raised Ex factory prices for April 2007 productions on top of prices for March 2007. The newly announced prices for April 2007 will be taken as base prices for the entire Q2 2007 to be followed by two monthly revisions for May and June productions respectively.

The following is the price change details exclusive of 17% VAT effective as of March 5th 2007

1. HRC up by RMB 100 per ton

2. Shipbuilding plates up RMB 200 per ton

3. Steel plate up by RMB 100 per ton

4. CRNGO up by RMB 300 to RMB 500 per ton

5. CRC up by RMB 300 per ton

6. Sections unchanged

7. Galvanized Steel up by RMB 100 per ton

8. Color coated steel up by RMB 200 per ton

9. Other Steel Products in line with March 2007 level.

(Sourced from Mysteel.net)

NDRC may approve BaoSteel & Wuhans steel projects

It is reported that China International Engineering Consulting Corporation has recently concluded formal appraisal of the 10 million tonnes per year steel projects planned by Baosteel and Wuhan Steel respectively.

Hong Kong daily Wenweibo has reported that issues such as its location in southern China, design capacity, investment, environmental impact, product structure and potential market have been examined and the conclusions have already been submitted to National Development & Reform Committee for the final approval.

Both have tied up with a local partner to increase the winning odds. Baosteel joined hands with Shaoguan Steel for setting up a steel complex in Zhanjiang port, Guangdong; while Wuhan Steel took control of Liuzhou Steel to boost its chances of pushing thorough the Fangchengggang project.

The officials said both projects are in line with Beijing's request that new steel plants are built in port cities, which have a cost advantage for importing iron ore over inland cities. Moreover, the steel project is critical for boosting the local economy in Guangdong and Guangxi and feeding robust demand in local markets.

(Sourced from Mysteel.net)

POSCO's 2006 electrical steel export up by 25.7% YoY

POSCOs sales of electrical steel products in overseas markets increase sharply in 2006 due to strong global demand. POSCO exported a total of 354,300 tons of electrical steel products in 2006 up by 25.7% YoY.

POSCO had also announced a plan in December 2006 to spend USD 14.5 million to build a processing center for electrical steel in India which has the capacity to process 130,000 tons of electrical steel annually.

CCCMC calls emergency meet on India's export tax on iron ore

China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters is to hold an emergency meeting today in Beijing on how to deal with India's newly added export tariff on iron ore. Topics in the meeting also include how to improve the credit system of iron ore suppliers.

Indian government has imposed a 300 rupee per tonne (USD 7 per tonne) export tariff on iron ore from March 1st 2007.

(Sourced from MySteel.net)

Ukrainian court starts review of Illyich privatization

Ukrainian Journal has reported that Ukraines Constitutional Court has started to review an appeal from a group of lawmakers seeking to cancel the sell off of the countrys second largest steel mill Illyich iron & Steel Works.

The court started deliberations after the group of 47 opposition lawmakers had questioned the privatization of Illyich back in 2000 when the company had been purchased by top managers.

China's investment in steel sector slowing down

Xinhua has reported that China's steel and iron investment frenzy showed signs of abating in 2006 as macro regulation began to tame five straight years of steep 20 % growth as the latest figures released by Chinas National Bureau of Statistics showed that total investment in the sector amounted to CNY 224.65 billion down 2.5 %YoY.

The steel and iron industry was the only sector that posted negative investment growth as others continued to climb in particular the real estate sector which rocketed by 21.8 % .

Insiders pointed out that more moderate investment was the result of the cancellation of some new projects and the shutting down of operations that violated regulations.

Mittal Steel Ostrava transfers pipe assets into new company

Arcelor Mittals Czech unit Mittal Steel Ostrava has put pipes and tubes production into a subsidiary which it fully owns after the relevant draft contract was approved at a general meeting recently. The pipes producing unit will be added to the share capital of the new joint stock company named MSO Pipes & Tubes. The Rourovny plant, which produces the tubes and pipes with its over 1,100 employees, will be transferred to the new company.

According to the draft contract made available to the shareholders, Price Water house Coopers expert put the price of the tubes and pipes plant at some CZK 7.5 billion. Mittal Steel Ostrava as the sole shareholder will own 937 bearer shares, each worth a nominal CZK 8 million.

Pipes production was generating 17 % of Mittal Steel Ostrava's sales but its mangers said that the separation of this production will be more advantageous and bring higher profits. The management said the new tubes and pipes production and sales strategy is to help use synergic effects in the Arcelor Mittal group that corresponds to the current trend in the world steel industry.

After the transfer of Rourovny's employees, Mittal Steel Ostrava will have around 7,000 employees in the remaining eight plants.

China to close 4,000 coal mines in 2007

Chinas State Administration of Work Safety announced that China plans to shut down 4,000 inefficient and dangerous coal mines this year with combined annual capacity of about 100 million tonnes.

Mr Li Yizhong head of State Administration of Work Safety while speaking to reporters on the sidelines of China's national parliament meeting said that half of this year's closure goal or 2,000 mines with minimum capacity of about 30,000 tonnes per year have already been closed. He said "We will shut more dangerous and polluting coal mines this year according to government regulations. Mr Li said From 2005 to the end of 2007, China will have closed a total of 10,000 small coal mines.

Mr Premier Wen Jiabao said China in 2006 had targeted surplus production capacity in some industries for closure. He said "We closed down backward coal production facilities totaling 110 million tonnes in capacity.

China's mining industry, the world's most deadly, has drawn global attention as fatal accidents occur almost daily. Officials acknowledge that safety regulations are often ignored by mine owners and production is pushed beyond safe limits in the rush for profits.

Fire damages equipments at OneSteel Whyalla plant

Australian media reported that a fire has damaged machinery at the OneSteel manufacturing plant at Whyalla in South Australia.

A mechanical fault is being blamed with the damage bill has been put at USD 50,000.

Russian Railway resumes coal transport for exports

It is reported that Russian Railways RZD has recently lifted a series of temporary bans on the rail transport of coal to Baltic and Russian ports as the severe congestion of rail cars on lines leading to the ports has now eased. The temporary bans were imposed from the first week of February at some ports and extended several days at a time until this week.

RZD halted the rail transport of coal to the ports because coal cargoes had been arriving frozen in wagons, making them difficult to discharge until they were thawed. Fewer rail cargoes are arriving frozen now because temperatures have risen a bit.

Russian coal exporters said that almost 1 million tonne of coal export has been lost as a result of this and that it will not be impossible to make up with this loss during the balance of the year because shipping schedules are extremely tight.

UK Coal sells Maltby mine to Hargreaves

UK Coal Plc announced last week that it had sold its Maltby mine in south Yorkshire to Hargreaves Services in a GBP 21.5 million deal. The deal will be funded equally between bank debt and by the placing of 2.3 million new shares at a placing price of 469 pence each to raise 11.1 million pounds.

The Maltby mine which opened in 1908 and is due to close in 2015 for redevelopment, produced about 750,000 tonnes of coal in 2006 and had an operating loss of GBP 18.2 million on turnover of GBP 32.7 million.

Mr Gerry Spindler CEO of UK Coal said that "Hargreaves is a major player in the solid fuel market and Maltby will fit comfortably with its business of producing quality smokeless fuels and in fuel distribution. It will promote the production lifetime and the security of employment at Maltby."

Hargreaves is Britain's largest independent coal importer and its subsidiary Monckton Coke & Chemical currently consumes about 25% of Maltby's production of coking coal. The company said it had also signed a new 3 years supply contract with Drax Power, which is estimated to account for 60% of Maltby's 2007 production.

CVRD considering improvements at Goro Nickel project

It is reported that CVRD is considering making environmental and other improvements at its Goro nickel mining project in the French overseas territory of New Caledonia, which is facing vehement opposition from a local activist group, cost over-runs and delays.

Mr Steve Mitchell a spokesman of CVRD said that "We're pleased with the progress that we've made in our discussions with the authorities and local community leaders during this visit. While the project is still under review, we are considering a number of improvements in environmental performance and other key areas to ensure a cost efficient and sustainable project. We have been discussing these improvements with our stakeholders in New Caledonia."

In November, CVRD pushed the cost estimate for Goro 40% higher to USD 3 billion and said production would start in late 2008. Goro, which is forecast to produce 60,000 tonnes of nickel a year at full capacity, is one of the world's largest nickel mines currently under development. It is considered a key project to help ease extremely tight nickel supplies.

Claymont Steels 2006 sales up by 20% YoY

Claymont Steel Holdings announced results for 2006. Record shipments of 407,182 tons including 12,158 of toll processed tons generated record net sales of USD 333.4 million a 20% increase over 2005. Gross profit was USD 100.2 million and net income for the year was USD 32.0 million. Adjusted EBITDA in 2006 was USD 84.4 million, which was fully burdened by a number of non recurring charges totaling approximately USD 6.7 million.

Its direct shipment selling values, excluding toll processing tons shipped in 2006, topped USD 836 per ton compared to USD 827 per ton in 2005.

The Company paid HIG Capital a total of USD 4.2 million under its management agreement, including a USD 3 million fee to terminate its obligation to pay HIG USD 675,000 per annum through 2011 and a USD2 million charge relating to a litigation settlement with former owner CITIC. The management agreement was in effect until December 18th 2006.

Mr Jeff Bradley chairman & CEO said "I am very pleased with the strong results in 2006. It was a transformational year. We became a public company and we changed our name to reflect our longstanding legacy in Claymont. I'm most pleased with the performance of our people and the platform we put in place to insure strong future performance for our Company. We had record capital spending, we broke numerous longstanding production records and we restructured and significantly increased our sales organization. As we enter 2007 we are a much stronger Company than we were going into 2006."

Claymont Steel manufactures and sells custom discrete steel plate in North America. Claymont Steel's headquarters and manufacturing facilities are located at Claymont in Delaware.

Cleveland-Cliffs completes stake acquisition in Brazilian Amapa

Cleveland-Cliffs Inc announced that it has completed the previously announced transaction to acquire a 30% interest in a Brazilian iron ore Amapa Mines. Cleveland-Cliffs purchased 100% of the shares of Brazilian MMX Mineracao e Metalicos SAs affiliate Centennial Asset Mining Fund LLC thus acquiring 30% of the Amapa Project. Cliffs purchased the shares of Centennial Amapa for USD 133 million. The all cash transaction was financed with cash on hand.

It is currently estimated that USD 350 million of additional capital will be required for the project to become fully operational, which will include approximately USD 250 million of project-level debt financing. Cliffs will be responsible for its 30% pro rata share of equity capital. These funds will be used to procure mining equipment, construct an ore beneficiation plant and update rail and port infrastructure to support the project.

Mr Joseph A Carrabba president & CEO of Cleveland-Cliffs said, "We are pleased to close this transaction, which marks Cliffs' initial Latin American endeavor and look forward to contributing to its long term success. The project will employ its own management team, with Cliffs providing technical and administrative services, pursuant to a technical services agreement. Oversight of Cliffs' interest in this project, as well as other potential opportunities in the region, will be coordinated from Cliffs' newly opened office in Rio de Janeiro, Brazil.

The Amapa Project includes a significant iron ore deposit and a 192 kilometer railway connecting the mine location to an existing port facility and 71 hectares of real estate on the banks of the Amazon River, reserved for a loading terminal. Annual production capacity is anticipated to be approximately 6.5 million tonnes of iron ore concentrate. Iron ore concentrate is expected to be sold, pursuant to a long-term supply agreement, to Gulf Industrial Investment Co., owner-operator of an iron oxide palletizing plant in the Kingdom of Bahrain. Production is expected to begin in late 2007.

12 coal miners injured in gas blast in Bulgaria

It is reported that 12 miners were injured in an explosion in a privately held Oranovo coal mine near the southwestern town of Simitli of Bulgaria. As per reports 4 miners are in critical condition.

Initial reports indicated it was a pit-gas explosion, but the cause of the blast was not immediately clear. The gas explosion shattered the mine half an hour after midday, just an hour before the first batch of miners was to leave the site. 33 miners were underground at the time of explosion managed to leave the mine.

The Oranovo mine was privatized in 2004 and was sold for BGN 950,000. The buyer is Balkan MK Company.

IUD & Illyich deny talks with Mittal Steel Kryviy Rih for iron ore JV

Ukrainian Journal has reported that Industrial Union of Donbas and Illyich Iron & Steel Works denied reports that they had been holding talks with Mittal Steel Kryviy Rih to create a joint venture to commission a huge ore producer.

However, both IUD and Ilylich confirmed that Mittal Steel Kryviy Rih had submitted a proposal for the joint venture.

Mr Volodymyr Boyko chairman of Illyich told Interfax that "I did not have talks with Mittal Steel, although we received proposals to complete the building of the Kryvy Rih ore processor.