SAIL to increase import of coking coal in 2007-08

BL reported that Steel Authority of India Limited is planning to increase import of coking coal during 2007-08 by 30% YOY as compared to 2006-07. As per estimates, million tonnes of coal will be imported in 2007-08 up by 3 million tonnes as compared to about 10 million tonnes in 2006-07.

The entire volume of the projected import will be routed through the three east coast ports of Haldia, Paradip and Visakhapatnam at 6 million tonnes, 2 million tonnes and 5 million tonnes respectively.

Haldia will cater to Durgapur Steel Plant, Bokaro Steel Plant, IISCO Steel Plant and Durgapur Projects Limited. Paradip will cater to Durgapur Steel Plant, Rourkela Steel Plant, Bokaro Steel Plant and IISCO Steel Plant and Visakhapatnam will cater to Bhilai Steel Plant and Rourkela Steel Plant.

Indian Ports called to meet challenge ahead

Mr Thiru TR Baalu union minister of shipping, road transport & highways has called upon the major ports to brace themselves for the challenges ahead and strive hard for developing the Indian ports to meet the growing demands of countrys burgeoning export import needs in the coming years although the performance of both major and non major ports at 464 million tonnes in 2006-07 and 151 million tonnes in 2005-06 respectively has surpassed the projections made at the commencement of the Tenth Five Year Plan in 2002.

Mr Balu, while inaugurating a Indian Ports Associations seminar Consolidated Port Development Plan last week said that The Indian economy is now irreversibly on a path of growth leading to its integration with the global economy and in the process, we have to develop our infrastructure that meets international standards, especially the ports and roads to provide the environment for facilitating this growth. We need the Port Business Plans to look beyond our immediate commitments, to lay down a structured road map to guide us in the long term, not only for fulfilling the emerging demands but also for proactive engagement in tapping the potential for a share in the maritime activities, with particular focus on and around our neighborhood.

Mr Baalu had earlier directed that each of the twelve Major Ports should develop a Business Plan which should include a long term vision for the port that builds on its core strengths and should establish the goals to be achieved over the next seven years to match the vision. Besides identifying the sources of financing for all proposed investments, the business plan should also describe the strategy to achieve these goals and provide a detailed plan of action to implement the strategy. The Consolidated Port Development Plan is being prepared by the Port of Rotterdam Authority, which has coordinated the preparation of Business Plans for Major Ports.

Mr Baalu however cautioned that the good performance should not make the Port Authorities complacent as they have greater challenges to meet ahead. He said that based on a study, the Department of Shipping has projected a capacity requirement of 1.5 billion tones in the Indian Ports by 2011-12 and two billion tones by 2016-17.

CILs WCL records highest ever production in 2006-07

Coal India Limiteds Western Coalfields Limited has recorded the highest ever coal production to the tune of 43.212 million tonnes during 2006-07. WCL also achieved its underground annual target. WCLs estimated turnover in 2006-07 is INR 4,947 crore as against budgeted INR 4,736 crore and the net profit is estimated at INR 900 crore as against INR 620 crore budgeted.

Mr GS Chugh CMD of WCL told reporters that "It has not only achieved its annual target of 42 million tonnes during the fiscal year 2006-07 but also exceeded it by 1.212 million tonnes.

Mr Chugh said that WCL has limited potential in terms of coal reserves as it has only 4.6% of total national coal reserves and that too deep-seated and in small patches, giving little scope for development of large capacity mines.

Paradip Port outlines mega expansion plans

It is reported that Paradip Port Trust has chalked out a plan to expand its cargo handling capacity from 51 million tonne now to 106 million tonne per annum by 2011-12. The port intends to implement 30 projects at an estimated cost of INR 3,500 crore, out of which 3 projects have been completed and the rest will be completed during the 11th plan period by 2011-12

Mr K Raghuramaiah chairman of Paradip Port Trust told media that under the National Maritime Development Programme, 30 projects had been taken up at an estimated cost of INR 3,500 crore during the 11th Plan. He said that "The port development and capacity expansion work have been undertaken keeping in view the future requirement of the industries likely to come up in Orissa. We have initiated steps to achieve 106.40 million tonne capacity by 2011-12."

He said that some of the projects included deepening of the channel at a cost of INR 505 crore to handle 125,000 DWT vessels. INR 254 crore contracts have been awarded to Dredging Corporation of India and the work will start after necessary approval of the Union cabinet. The deepening of the approach channel of port from 12.8 meter to 18.7 meter depth is expected to be completed within a year's time. Currently, the port is able to handle ships of 75,000 DWT only.

Along with the deepening of the channel, the draught at the existing dock system will be enhanced to 14 meter to cater to Panamax vessels. The completion of the INR 40 crore projects will increase the capacity of the port by 5 million tonne per annum.

Among the other projects, the Port proposes to construct one berth for exclusive handling of iron ore berth at an estimated cost of INR 505 crore on BOT basis. A separate berth will be set up for handling of coal products at a cost of INR 384 crore and it will be completed within three years.

A new dock system, with six berths, is to be developed to handle fertilizers, food grains, containers and other cargoes. A feasibility study for the dock system has been conducted.

CIL to recruit 3,000 officers Report

Local media has reported that that Coal India Limited will be recruiting about 3000 officers to full the vacuum in CIL and that around 60 officers have already joined the company as management trainees.

As per report, Mr PS Bhattacharya chairman of CIL while addressing media accepted that there is a vacuum of middle order level officers in the CIL. He informed that CIL has already taken steps to give promotions to the executives and that a fast track promotion system would be implemented in the current year to reward the sincere executives of the company.

Cochin Port posts 10.2% YoY increase in throughput for 2006-7

The Cochin Port Trust handled an all time high throughput of 15.31 million tonnes of cargo in 2006-07 up by 10.28% YoY as compared with the 13.88 million tonnes in 2005-06. The container traffic has also registered a YoY growth of 11.82% during 2006-07 by handling 226,808 TEU as compared with the 203,112 TEU in 2005-06.

Cochin port also registered better productivity, with average output per ship berth day improving from 7,767 million tonnes during 2005-06 year to 8,096 million tonnes in 2006-07.

Mr N Ramachandran chairman of Cochin Port told reporters that the measures initiated to reduce handling costs had started showing results, which was evident from the increase in cargo arrivals. He added that Besides liquid cargo, cargoes such as wheat, zinc concentrate, iron ore pellets, timber logs and coal contributed to the growth.

For the year 2007-08, Cochin port expects traffic to increase by a modest 11%.

BEML to set up a 5MW wind power plant to feed its units

BS reported that Bharat Earth Movers Limited is setting up a 5 MW wind farm at a cost of INR 25 crore at Chitradurga in Karnataka to feed its manufacturing facilities at Bangalore and Mysore.

Mr VRS Natarajan CMD of BEML told reporters that BEML has entered into a 30 year lease with Suzlon for setting up the wind farm on a turnkey contract basis and that the electricity generated at the wind mill will be supplied to the Karnataka state power grid and BEML will draw the power at Bangalore and Mysore to meet its needs and save INR 7 crore on its electricity bill.

BHEL Bhopal to make high capacity transformers

It is reported that Bharat Heavy Electricals Limiteds Bhopal unit plans to develop higher capacity 765 KV substations for the first time in India by using sulphur hexafluoride SF6 gas insulation. It also plans to enhance its capacity to manufacture 30,000 MVA transformers from the existing 15,000 MVA. BHEL Bhopal has earmarked an amount of INR 160 crore for investment for increasing the capacity.

Mr RK Singh ED of BHEL Bhopal said A live model of 765 KV substations is ready and we are also working on 1200 KV transformers. We will be able to start production of 765 KV substations soon.

Higher capacity transformers will reduce the transmission cost in various sectors as currently Indian power sector uses 220 KV substations in absence of availability of high voltage transmission cables.

Conventional high voltage transformers use atmospheric air as the main dielectric that cannot satisfy various requirements like reduced maintenance, effective protection against atmospheric pollution, noiseless operation, minimum radio interference and non flammability etc.

CILs SECL to launch Chinese equipments for mechanized mining

FE has reported that Coal India Limiteds South Eastern Coalfields Ltd has received the first batch of Chinese equipment for short wall mining and it will begin functioning next month at the Balrampur mine.

Mr BK Sinha CMD of SECL told FE in an exclusive interview. That the short wall project would be the country's first one. He said that "Chinese experts are likely to arrive any day and our people have already come back after taking the training.

Mr Sinha said long wall mining would add 1.5 million tonnes and shortwall mining 1 million tonnes this year to its total production. Both are the most mechanized forms of underground mining.

Klockners Namasco to acquire Primary Steel LLC in US

Klockner & Co AG announced that its US based subsidiary Namasco Corporation has signed a contract for acquisition of the distribution company Primary Steel LLC. The takeover is subject to approval by the US Antitrust Division.

Primary Steel LLC, whose headquarters are at Middletown in Connecticut, is a steel distribution company with seven branches in North America. The enterprise is specialized in the distribution and pre-processing of flat steel products, particularly plates. Primary Steel LLC has around 412 employees and achieved sales of USD 467 million in 2006. The main customers of the distribution company are smaller distributors and sectors including manufacturers of heavy duty construction machinery, the energy industry, structural steel engineering, railway car production and shipbuilding etc.

Dr Thomas Ludwig chairman of the board of management of Klkner & Co AG said "We are extremely pleased about the addition of Primary Steel. The acquisition of this company will result in an increase in sales of the Klkner & Co Group in the USA of over 60%. The addition of Primary Steel to the existing operations of Klkner & Co expands the companys geographic market area throughout the US. The acquisition represents consistent continuation of Klkner & Cos growth strategy through the acquisition of large companies.

Klockner & Co is the largest producer independent steel and metal distributor in the European and North American markets combined. Its Namasco Corporation, with headquarters at Atlanta in Georgia, has over 17 branches in the USA. Through Primary Steels activities Namasco Corporation gains a strong position on the US market for plates.

China estimates proven iron ore reserves at 59 billion tonnes

Chinas ministry of land and resources has estimated Chinas proven iron ore reserves at 59.39 billion tonnes. As per a ministrys web site posting, the Fe content of the reserves is 30% to 35% on an average and out of total reserves 41.5 billion tonnes is magnetite.

The ministry has also estimated proven copper reserves at 85.31 million tonnes, located mainly in Tibet, the middle and lower reaches of Yangtze River, the southeast coastal areas and the eastern part of China's Northeast.

The proven reserves of bauxite, the raw material to make aluminum, stand at 2.66 billion tonnes with more than 90% located in Shanxi, Guangxi, Henan and Guizhou.

Evrazs Q1 crude steel output up by 11.6% YoY

Russia's 2nd largest steel maker E Evraz Group SA announced that it increased its steel production in the Q1 of 2007 by 11.6% YoY to 4.287 million tonnes.

Steel Division - Evraz operates Nizhny Tagil NTMK in the Urals region and West Siberian Zapsib and Novokuznetsk NKMK in Siberia, as well as Palini e Bertoli in Italy, Vitkovice Steel in the Czech Republic and Evraz Oregon Steel Mills headquartered in the USA.

In 000 tonnes
Operational results of Evraz Oregon Steel Mills are consolidated into the Group since 12 January 2007.

Mining Division

In 000 tonnes

In 000 tonnes

Evraz Group holds 40% beneficial interest in OAO Raspadskaya and 50% interest in Yuzhkuzbassugol

Vanadium Division - Evraz vanadium operations comprise Strategic Minerals Corporation in USA and a 24.9% equity interest in Highveld Steel and Vanadium Corporation in South Africa.

In 000 tonnes

The results are calculated in pure vanadium equivalent. Including operational results of Strategic Minerals Corporation consolidated into the Group since September 2006.

Evraz is 41% owned by Millhouse, the investment vehicle of Russia's richest man Mr Roman Abramovich. Evraz produced 16.1 million tonnes of crude steel in 2006 accounting for 22.8% of Russian output. Evraz Group also owns and operates the Nakhodka commercial sea port in the Far East of Russia.

Rio Tinto on track to reach 220 million tonne iron ore by 2009

Iron ore mining major Rio Tinto PLC announced that it is planning to increase iron ore production beyond the 220 million tonnes by ramping up it is operations in Western Australia.

Mr Paul Skinner chairman of Rio Tinto while addressing the Annual General Meeting reiterated that it is on track to produce 220 million tonnes by early 2009. He said We have the resources to enable this and have teams evaluating the infrastructure requirements to achieve it.

Mr Skinner added that the company remains on the lookout for further acquisition targets while its existing portfolio, especially the early stage copper projects bought last year in Peru, Mongolia and Alaska, have the potential to generate continuing growth in future.

TMK shares admitted to trading on MICEX

One of the worlds largest oil and gas pipe producers and Russian pipe industry market leader OAO TMK has announced the admission of its ordinary shares to trading on the Moscow Interbank Currency Exchange MICEX under the ticker symbol TRMK.

Mr Konstantin Semerikov CEO of TMK said that TMK has had a positive experience with the MICEX when issuing bonds and we hope that including our shares in the leading Russian stock market will make them more accessible to a wider range of Russian investors.

TMK GDRs are currently traded on the London Stock Exchange and ordinary shares trade on the Russian Trading System.

Carnavale makes 3rd Brazilian iron ore acquisition

Australia based resources company Carnavale Resources Limited has signed an agreement with Brasgeo Geologia e Mineracao Ltda for the assignment of 100% of the Mineral Rights in the Tr Cores Iron Ore Project, in the State of Mato Grosso in Brazil for around USD 1.2 million over five years. Additionally, Carnavale shall pay Brasgeo a royalty of 1% net smelter return.

The Tres Cores Iron Ore project has a total combined area of 30,000 hectares, all of which are under application. The project is located approximately 500 kilometer from the major Caraj Iron Province. The Tr Cores Iron Ore project was identified based on an airborne magnetic survey carried out by a major company in 2000.

Carnavale proposes to undertake a detailed mapping and rock-chip sampling program and to conduct a preliminary ground magnetic survey in order to model the top and the geometry of the target unit. Depending on results achieved, a follow up trenching and or drilling program will be undertaken.

This will make the Tr Cores Iron Ore Project Carnavale's third iron ore project in Brazil, pending the successful completion of technical and legal due diligence for the Parmegiana and Ilha Redonda iron ore projects announced by the company earlier this week.

Kazakhstans Q1 steel output up by 14% YoY

Kazakhstans National Statistics Agency told Interfax Kazakhstan that Kazakhstan has increased its crude steel output during January to March 2007to 1.106 million tonnes up by 13.9% YoY.

Kazakhstans output of flat steel products increased by 24.9% YoY to 811,300 tonnes, which includes 46,354 tonnes of tin line products up by 71.7% YoY and 143,916 tonnes of galvanized steel up by 7% YoY.

Kazakhstans ferroalloy production also increased by 2.6% YoY to 421,815 tonnes but its coal production reduced by 6.4% YoY to 23.387 million tonnes during this period.

Hoa Sen to sets up a new CR mill in Vietnam

Thanhnien News has reported that a private Vietnamese steel firm Hoa Sen Corp has invested about USD 30 million to build a 180,000 tonnes per annum cold rolled steel mill in southern Vietnam and that the new plant has put into production.

The mill will produce CR products for roofing, construction, and mechanical engineering. As per reports, it is likely to cater to 18% of the domestic demand and generate annual turnover of around USD 94 million.

As per report, this is the 2nd largest CR mill in Vietnam after Phu My Steel.

Scrap demand increasing in Germany

It is reported that the demand of scrap in Germany is increasing, after Salzgitter announced to raise EAF capacity at Peine by 1 million tons per year, which means extra 1.1 million tons scrap requirement per year.

Meanwhile, ThyssenKrupp is also increasing their scrap demand. ThyssenKrupp has been increasing their scrap demand from 20,000 tons to 80,000 tons per month during the past half year.

Germany's scrap supply is totaled between 20 million to 22 million tons per year.

Sally Malay upgrades nickel reserves

The Australian daily reported that the Sally Malay Mining has increased nickel reserves at its Winner deposit ahead of first production expected in August amid soaring metal prices.

Perth based Sally Malay while giving a statement to the Australian Securities Exchange said that the Winner deposit is now estimated to contain 6136 tonnes of nickel metal at an increase of 712 tonnes. The mine would produce at a rate of 340 tonnes to 420 tonnes each month for 16 months.

Steelscape starts HDG, Galvalume & PPGI lines in Shreveport

Metal Producing & Processing reported that Steelscape Inc has started galvanizing and coil painting at its Shreveport, LA plant, a new location for the Grupo Imsa subsidiary and its first galvanizing capacity east of the Mississippi River. The painting line was relocated from a now idle plant in Richmond CA, while the hot dip galvanizing line is a new installation.

As per report both lines process material up to 54 inch wide. The process technology for the galvanizing line was supplied by Siemens VAI's Voest Alpine Industries division, with coating and drying systems for zinc and Galvalume coatings provided by Inductotherm Inc.

The galvanizing line's capacity is 260,000 tons per year, at up to 600 feet per minute, and it began commercial processing of strip in January.

The painting line has been in operation since April 2006, and is capable of producing 200,000 tons per year of material in various coatings, including organic coated and Bonderized (zinc phosphate) material.

The Shreveport plant also features a slitting & embossing line.

When Steelscape announced plans to relocate the painting line in 2005, it estimated the cost of the project at USD 70 million. It also outlined a second stage for the plant, which calls for a new cold mill, a pickling line, and a second coating line, which would raise the investment to USD 200 million. Steelscape also had plans to update its West Coast coating capacity at Port Kalama, WA, and Rancho Cucamonga, CA.

Environmentalists call for rejection of coal mine proposals in NSW

It is reported that the New South Wales Greens have called on the State Government to reject proposals for new coal mines in the wake of the release of a major climate change report.

Greens MP John Kaye has called on the State Government to take a firm stand on coal mining. He said "We need to do something urgently to reduce our greenhouse gas emissions. The pressure is on the Iemma Government to say no to the new coal mining proposals and no to the new coal fired power stations.

Mr Kaye added that "Otherwise it's going to turn New South Wales into an international pariah and the finger will point at us when the Great Barrier Reef dies, when the cyclones hit, the finger will point very firmly at New South Wales as the bad boys of climate."

The United Nations Intergovernmental Panel on Climate Change has issued its second report on global warming from Brussels. It warns Australia of worsening drought conditions, drastic water shortages and the disappearance of the Great Barrier Reef over the next two decades.

Pakistan Steel Mill posts 60% YoY increase in 9 months sale

Pakistans Daily Times reported that Pakistan Steel Millss sale during the month of March 2007 has crossed the PKR 3.3 billion marks.

A company release added that the sale figures for the third quarter of fiscal year from January to March 2007 stood at PKR 8614.88 million which is the highest ever sale figure achieved during any third quarter of previous financial years. The previous highest for January to March quarter was PKR 7762.68 million.

PSMs total sale during July 2006 to March 2007 stood at PKR 21035 million whereas the sale of corresponding period of the previous fiscal year was PKR 13113 million. The sale of for the current year is higher by more than 60% as compared to corresponding period of last year.

Xstrata Nickel shares 2006 profit at Raglan nickel mine with Inuit communities

Xstrata Nickel recently announced that it has presented a cheque in the amount of CAD 16.7 million to the Makivik Corporation representing its share of the profits generated in 2006 by the Raglan nickel mine operation located in the Nunavik Territory of Northern Quebec.

This yearly profit sharing is part of a comprehensive agreement signed on February 28th 1995 with Makivik and local Inuit communities. The agreement is designed to harmonize relations and foster opportunities between Xstrata Nickel and local populations and their representatives in areas such as training, hiring of local businesses and environmental management.

Mr Pita Aatami president of Makivik Corporation said that This years profit sharing will be again put to good use in developing economic and training opportunities, which will contribute to the well-being of Inuit communities.

Mr Ian Pearce CEO of Xstrata Nickel said that The Raglan Agreement has set solid foundations for developing mining activities in Nunavik, while contributing to the populations quality of life and protection of the environment. Xstrata Nickel is very proud of this agreement, which has been instrumental in building and strengthening relationships with our partners in Nunavik.

Xstrata Nickels Raglan mining camp was constructed at a cost of CAD 600 million and began production in 1997 and in 2007 capital investments include CAD 45 million to refurbish existing wharf facilities and CAD 50 million to expand accommodation facilities consists of 3 underground and 1 open pit nickel mines and a concentrator. Approximately 550 employees and 250 sub contractors work at Raglan. Milling capacity is 3,000 tonnes per day. Nickel capacity at the concentrator now stands at 26,000 tonnes of nickel-in-concentrate per year.

Vietnam fearing import of low quality steel

VietNamNet Bridge reported that Vietnamese customs agencies have given warning that low quality steel is being imported in a large quantity into Vietnam and feared that it might be being sold as construction steel which would compromise construction works.

As per report, about 27,000 tonnes of steel with the diameter of 6.5mm to 8mm, which can be used only for soldering sticks and screws, have been imported to Vietnam from China as against the domestic demand from this sector of few thousand tonnes only. This has created a perception that the remaining quantity can be sold as construction steel.

Qatar Steel unveils new corporate identity

Qatar Steel, formerly known as Qasco, recently underwent a comprehensive re branding exercise that included the creation and adoption of a new mission, vision and values and the reflection of these in the new brand identity. As per company release, Qatar Steel's new brand image underscores its plans to increase its presence across the Middle East region as the company continues to develop alongside the rapid growth the Qatar economy is currently experiencing.

Now, Qatar Steel facilities in Qatar and Dubai will both adopt this new image to achieve a streamlined brand identity throughout its operations and Qasco Dubai Steel FZE will be known as Qatar Steel Company FZE.

Sheikh Nasser bin Hamad Al Thani director and GM of Qatar Steel at a press conference said that "Our product already boasts of an excellent track record in terms of performance and reputation but our vision is to scale new heights in an increasingly competitive market environment. Communicating our plans with the help of an exciting new image will help us redefine our culture both internally and to the rest of the world.

USs MSHA fines Massey USD 1.5 million for safety violations

USs federal Mine Safety and Health Administration has levied a USD 1.5 million fine against Massey Energy Co for 25 violations that contributed to the deaths of two West Virginia coal miners in January 2006.

Mr Richard Stickler director of MSHA during a news conference said that "The number and severity of the safety violations that occurred demonstrated a reckless disregard for safety.

The fine is the largest the agency has ever imposed for a coal mining accident, surpassing the old mark of USD 540,000 for a January 1991 methane gas explosion that killed two miners at another West Virginia mine.

ZPSS signs final acceptance certificate for furnace

It is reported that Zhangjiagang Pohang Stainless Steel has signed the final acceptance certificate for the digital furnace on February 2nd 2007 after the performance tests were successfully carried out on January 24th 2007. ZPSS, under its 3rd stage expansion plan, had awarded the contract in 2004 to Itochu consortium including Stein Heurtey and Stein Heurtey Mecc and construction work started in December and hot commissioning began on July 1st 2006.

The 200 tonnes per hour furnace features the latest Digital Furnace technologies such as lateral burners in all zones and on off control of burners and operates on natural gas and is designed to reheat 7 meter to 13 meter long slabs of a maximum weight of 30 tons, in widths ranging from 0.8 to 1.6 m and thicknesses ranging from 170 mm to 200 mm.

Norilsk Nickel to open its own university

It is reported that Norilsk Nickel will open its own university. The staff and the material resources of corporate training center of the staff department of the company's central headquarters of polar division will become a private high school "The Corporate University of Norilsk Nickel".

The new university will function as the head scientific and methodological staff training center that will also study the needs of Norilsk Nickel Group of labor resources.

Mr Veniamin Kaganov president of the Corporate University said that Norilsk Nickel high school has got a wide range of educational licenses and is founded in accordance with the federal law about education. Mr Kaganov said that "A university must offer a higher level of education and traditional training courses. We already have got special educational programs and will be working at more to comply with the university status. In addition, we are going to attract top experts of the company and the best teachers from other universities."

At present there are about 6,000 educational programmes in MMC Norilsk Nickel. Specialists are trained for 300 professions. More than 30,000 workers of Norilsk Nickel took different courses in the corporate training center in 2006.