SAILs DSP posts record output during 2007-06

It is reported that Steel Authority of India Limiteds Durgapur Steel Plant has recorded an all time high production of 1.7 million tonne of saleable steel in 2006-07 translating into a capacity utilization of 107%, the best ever since inception. DSPs hot metal production stood at 2.06 million tonnes and the crude steel production stood at 1.87 million tonnes.

All time best performance was recorded in DSPs CCP, skelp mill, finished steel and special steels production during 2006-07. DSPs supply of forged wheels to Indian Railways stood at an all time best at 66,532 nos. During the year DSP also produced S-Profile wheels specially designed for high speed locos.

According to the release, DSP hopes to achieve a 15% growth in production of hot metal, 15% in crude steel and 18% in saleable steel during 2007-08.

Orissa to appoint consultant for iron ore mining leases

FE has reported that the to skirt the controversial issue of grant of iron ore mines, Orissa government has decided to appoint a consultant to advise it on recommending and granting of iron ore mining leases to companies that have signed agreements for setting up steel projects in the state. As per report, Orissa government has invited bids from MECON, MN Dastur & Co and Engineers India Ltd.

Orissa has so far signed 45 MoUs for a total capacity of 75 million tonne at an investment of approximately 200,000 crores. According to MoU conditions, the state government will recommend a company to the central government for a mining lease if it has invested at least 25% of the capital cost of the steel project and the mines will be granted only after investment of 50% of the capital cost. The company is also required to achieve financial closure, complete land acquisition and construction of a rehabilitation colony.

Orissa government has no fool proof mechanism to quantify this condition but has granted an iron ore mining lease to Neepaz Metaliks and recommended mines for Sree Metaliks, SMC Power, and Deepak Steel & Power and is now facing criticism.

11 more companies including Visa Steel, Arati Steels, Scaw Industries, OCL India, Maheswari Ispat, SPS Sponge Iron, Jindal Stainless Ltd, Bhusan Steel, Action Ispat & Power, Eastern Steel & Power, and Patnaik Steel & Alloys have applied to the state government for iron ore mines, claiming that they have fulfilled MoU conditions.

Jharkhand seeks higher royalty for coal & iron ore mining

IANS reported that government of Jharkhand is seeking for a 20% share in the central governments profits from coal and iron ore mining.

Mr AK Chug chief secretary of Jharkhand during a 2 day meeting of the Inter State Council of Mineral Resources at the Indian Institute of Coal Management in Ranchi demanded a 20% royalty on profits made from coal and iron ore mined from the state.

Jharkhand officials believe that if this demand is accepted by the central government, Jharkhand will earn an additional INR 35 billion per annum as royalty as against present levels of INR 11 billion.

The meeting is attended by the chief secretaries of 14 states, which include Jharkhand, Chhattisgarh, Andhra Pradesh, Rajasthan, West Bengal, Tamil Nadu, Gujarat, Goa, Nagaland and Orissa.

TATA Steel considering taking over Incab Industries

It is reported that TATA Steel has agreed to take over Incab Industries at the request of several trade unions of the sick company. Mr Rakeshwar Pandey president of Incab Industries Employees Association led a delegation of 27 office bearers of the cable company's several trade unions to meet Mr B Muthuraman MD of TATA Steel said the steel major has agreed to take over Incab Industries on a few conditions.

As per reports, the conditions put forward by TATA Steel to the trade union leaders include that all the sick cable company's trade unions, including all its workers, would, extend full support to the TATA Steel in the process ahead and that it was not necessary that TATA Steel would continue producing cables at Incab.

TATA Steel will seek legal opinion to go ahead with the takeover, considering that RR Kabel & Pegasus Asset Reconstruction Pvt Ltd and Silver Jubilee Pvt Ltd are engaged in a legal battle after SBI tried to find a suitable promoter to replace the existing Malaysia based Leader Universal Holdings Berhad which had conveyed its unwillingness to continue as Incab's promoter.

Incab, a leading cable producer of past is located on around 176 acres of sub leased land adjacent to TATA Steel in Jamshedpur and is currently under the Board for Industrial & Financial Reconstruction. It was earlier owned by the Tapuriah group, it went through troubled times in the early 1990s. Incab had around 1,400 personnel on its rolls in April 2000 when it stopped production here, while its second small manufacturing unit in Pune, which is said to be operational even today, employs around 500. Its head office in Kolkata had another 200 odd staff. Incab owes TATA Steel around INR 500 million, over and above the penal interest, as the steel company provided power and other civic amenities to both its plant and the small township around it for a number of years.

UGSL listed on Singapore Exchange

The Singapore Exchange Ltd has announced the listing of its first global depository receipts by Uttam Galva Steels Limited and that its shares shall begin trading next week. Mr R Miglani CMD of UGSL said "We are proud to be the first GDR to be listed in Singapore, which is fast emerging as a destination of choice for access to a global pool of funds.

Mr Lawrence Wong executive VP and head of Listings at SGX said "SGX provides companies an alternative avenue to access the Singapore capital market for global funds and broaden their investor base.

UGSL is also listed on the Bombay Stock Exchange, National Stock Exchange, the Delhi Stock Exchange and the Calcutta Stock Exchange.

Bangladesh likely to decide on TATAs investment proposal soon

It is reported that finally Bangladesh government has swung into action on TATA Groups USD 3 billion mega investment proposals and it is expected that military backed government is expected to decide within a month.

Mr Nazrul Islam head of Bangladeshs Board of Investment said I have talked to all cabinet members including the head of the government about the proposal and everyone agreed a decision on Tata should be made quickly. We will send all reports on the projects to the head of the government within a few days and expect a decision on the proposal within the next month.

Mr Islam admitted that Its the biggest investment proposal we have and it has been with us for about two years. So we must make a decision on its fate very quickly. Mr Islam added that Bangladesh can not move ahead economically without deciding the fate of the Tata proposal. He said Everywhere we go for investment promotion people now refer to TATAs projects. There are some other big investment proposals. But we cant go ahead without deciding on TATA first.

The previous Bangladesh Nationalist Party government had promised a decision on the Tata project by June 2006 but halted the decision saying political sensitivities just ahead of the polls would make it difficult for the government to make a decision. It said the new government would decide on the matter after the next parliamentary elections.

TATA Steel last month warned that due to inordinate delays, it may shelve its investment plans in Bangladesh. TATA Steel has proposed to setup a 2.4 million tonne steel plant, two power plants, a coal mine and a fertilizer plant.

Aryan Coal Beneficiations coal movement on forest road stopped

HT has reported that the transportation of coal from the Dipika coal mines of Coal India Limiteds South Eastern Coalfields Limited to one of the washeries of Aryan Coal Beneficiation Private Limited through the forest road has been pronounced illegal and the forest department has initiated action to stop further misuse of the forest land by erecting barricades at the both ends of the road which falls within the revenue forest area to prevent any traffic.

Mr DV Negi chief conservator forest central in letter to the principal secretary forest of Chhattisgarh had requested that unauthorized use of the forest land for non forestry purpose be stopped. He has also asked to produce a detailed report of violation along with names and designation and their present address of officials responsible for the breach in the forest conservation Act of 1980.

As per reports, a representation from the villagers of Nagin Jhorkhi and Dipika against Aryan Coal regarding alleged misuse of road inside forestland was made to the Central Empowered Committee constituted by the Supreme Court, which referred the case to the ministry of Environment and forest for investigation.

The use of forest road comparatively reduced the distance of the Dipika coalmines and the coal washery of Aryan Coal Beneficiation located at Chakabuda village in the Korba district by some 18 kilometers.

NTPC to set up more coastal projects in South India

It is reported that NTPC Ltd is exploring the possibility of setting up more coastal projects in South India particularly in Tamil Nadu as a part of its ongoing efforts to expand and set up projects across India.

Mr AN Dave regional ED (South) of NTPC told media that the 1950 MW Kayamkulam project, which was estimated to cost about INR 7,613 crore in 2002, would be taken up and necessary clearances are being sought for the project and fuel supply options are now being evaluated.
Mr Dave also told that NTPC has signed up for power supply agreements with Andhra Pradesh, Tamil Nadu and Karnataka and would shortly enter into an agreement with Kerala for power supply from the INR 4,4444 1,000-MW (2x500) Simhadri plant expansion. The Simhadri expansion, which would be backed by fuel supply from Talcher with imported coal as an option, is expected to be completed by 2010-2011.

He added that NTPC is considering Cheyyur and Ramanathapuram as sites for new projects but no decision has been taken as yet. He added that NTPC may also consider setting up nuclear plants in South.

NTPCs southern region has installed capacity of 3,960 MW at Ramagundam, Simhadri and Kayamkulam, and also manages the supply of about 2,000 MW of power from NTPC Talcher project and supplies to South. During the year 2006-07, NTPC southern region achieved a total generation of 29,453 million units.

Chinese steel pipe escapes from rebate cut again

During the period since 2005, when a majority of the steel varieties were reduced or removed of rebates for export by a steam of cutting measures, steel pipe still enjoys 13% refund, the rate kept from whole line scissor in 2004. It's explained that steel pipe belongs in end steel products and is included in metalwork for customs statistics. The huge export is generated due mainly to robust demand from abroad and further, as high value added products steel pipe is supportive for export according to China's policy.

Despite all these, there are risks too to keep the rebates as seamless pipe import and export during 2003-2006

Seen from this table, pipe export boomed from 2005, driven by strong international demand and high profits thanks to high refund rates. Of the moment, seamless pipe export price still stands at least CNY 1000 per tonne higher than domestic sales price, some source reports; if the domestic price posts CNY 4000 per tonne, domestic sellers may get some CNY 650 per tonne back for exports.

In short term, unchanged rebates offer a stable market environment. But growth in export proves unable to dissolve the pressure cast by rapidly expanding output. Blind and disordered export may further stimulate the investment zest and add pressure on the fragile exporting condition threatened by trade frictions.

It's thus concluded the existing rebates on pipe export may also be short lived. Longtime preservation of the refund will only be explained by overheated investment and resultant big surplus that needs export to ease. Trade disputes are hidden, especially for welded pipe, analyst believes.

(Sourced from MySteel.net)

Anhui Province to merge 3 coal mining companies

Interfax reported that Chinas Anhui Province plans to merge 3 local mining companies Huaibei Coalfield, Huainan Mining Industry and Wangbei Coal-Electricity into one large coal group as a part of a government plan to optimize the allocation of assets and lift the operational efficiency of the three companies.

By the end of 2005, Huaibei Coalfield held CNY 18.9 billion (USD 2.45 billion) in total assets. Huainan Mining Industry CNY held 19.9 billion (USD 2.57 billion) and Wangbei Coal-Electricity CNY 10.9 billion (USD 1.41 billion).

However the report cites an official from Wangbei Coal-Electricity as saying that some problems have surfaced in the process and that it was difficult to see the successful integration of the three companies occurring in the short term. He said "The smooth fusion of the three large companies is by no means an easy job. The merger process will take time. The official added that "When the merger is completed though it will certainly benefit the local coal industry.

The move is in line with China's 2006-2010 coal industry development plans which promote the integration of coal resources. State policy encourages the establishment of coal production bases with an annual production capacity of over 100 million tons.

Steel Technologies gets clearance for Mitsui merger

Steel Technologies announced last week that the US Federal Trade Commission has granted early termination of the Hart-Scott-Rodino antitrust waiting period for the company's pending merger with Mitsui & Co. It added that the transaction remains subject to shareholder approval and clearance by governmental authorities under the antitrust laws of Mexico.

Steel Technologies also has scheduled a special meeting of shareholders on May 30 to vote on the merger agreement. Under the definitive merger agreement with Mitsui & Co (USA), Steel Technologies' shareholders will receive USD 30 per share in this all cash transaction.

MMK sets GDR price at USD 12.25 to USD 15.5 for IPO

Magnitogorsk Iron and Steel Works last week announced the indicative price range of USD 12.25 to USD 15.50 per global depositary receipt for its initial public offering on the London Stock Exchange. Announcement of the final offer price and commencement of conditional dealings is expected to take place in late April. MMK intends to float up to 10% of its capital on the LSE.

MMK said in a statement that the preliminary prospectus in relation to the offering, which will comprise an offering of ordinary shares and GDRs to international institutional investors outside Russia, will be made available to institutional investors. The offering includes an over allotment option, granted by the selling shareholder to the managers of the offering, to be valid for a period of up to 30 days from the announcement of the offer price, to purchase GDRs representing up to 15% of the number of GDRs offered.

MMK has applied for admission of the GDRs to the Official List of the UK Financial Services Authority and to trading on the London Stock Exchange's main market for listed securities. Admission of the GDRs to listing on the Official List of the Financial Services Authority and commencement of unconditional dealings on the main market for listed securities of the London Stock Exchange is expected to take place three business days after pricing.

Mr Viktor Rashnikov chairman of MMK's board of directors said "MMK is taking the next step towards its IPO and is starting the road show. We consider the IPO process to be an important new chapter in the history of Magnitogorsk Iron & Steel Works, which will allow us to strengthen our position in the world steel market.

ABN AMRO Rothschild, Morgan Stanley and Renaissance Capital are acting as joint global coordinators and book runners for the offering. Gazprombank is acting as a co-lead manager for the offering.

MMK produced 12.5 million tonnes of crude steel and shipped 11.4 million tonnes of commercial steel products in 2006. MMK recorded net revenues of USD 6.4 billion and net income of USD 1.4 billion in 2006 under US GAAP standards.

CAP focusing on iron ore mining an upgrades its reserves in Chile

BNamericas reported that CAP owned Chilean iron ore miner Compaa Minera del Pacico has increased its reserves to some 1.6 billion tonnes to 1.8 billion tonnes from 250 million tonnes in 2000.

Mr Roberto de Andraca president of CAP told BNamericas "Before, the market saw CAP as a steel company with some iron ore mines, but now we are seen as a natural resource producer with a portion of steel." Mr Andraca said that rising demand and prices for iron ore have spurred a shift in CAP's strategy to focus on its mining endeavors much more than it did in the past. Mr Andraca added that today CAP's mining output accounts for roughly 25% of its total revenues.

Mr Andraca also said that higher iron ore prices have also motivated CAP to take advantage of lower grades thus rapidly boosting reserves. He said In 2002 when CAP sold its iron at about USD 10 per tonne, its mines would only consider using ore grading at least 50%. Now that the company sells at some USD 45 per tonne it has dropped the cutoff to 28%.

CAP produces 8.5 million tonnes of iron ore per year and aims to increase that to some 11.5 million tonnes in 2008 and to 15.5 million tonnes by 2010 if its Cerro Norte development project in region III advances according to plan. CAP produces about 1.1 million tonnes of steel per year at its Huachipato complex in Chile's region VIII.

UMW & Foundation Coal reach agreement to end strike

It is reported that Foundation Coal Holdings has reached an agreement with the striking miners at its three mines in Pennsylvania and Illinois to end 8 day strike by about 1,200 miners.

A spokesman for Foundation Coal said that separate agreements will put nearly 1,000 United Mine Workers back to work soon at the Cumberland and Emerald mines near Waynesburg in Pennsylvania. Foundation says the Pennsylvania miners can return to work after mine managers and union representatives have completed safety inspections.

An agreement covering the Wabash mine near Keensburg in southeastern Illinois covers the effects of the mine closure, which Foundation announced when the strike began on April Fourth. The Wabash mine employed about 230 workers.

Schnitzer Steel Q2 profit up by 35% YoY

Schnitzer Steel Industries Inc has posted a 35% increase in second quarter ending February 28th profit as its sales jumped by half on stronger volumes in its metals recycling segment. Its net income rose to USD 28.4 million from USD 21.1 million in previous years quarter and revenue grew to USD 604.4 million up by 50% YOY.

Sales in Schnitzer's metals recycling business climbed up by 65% YoY to USD 486 million, while its auto parts segment saw 20% growth to USD 60 million. The steel manufacturing division posted a 10% sales increase to USD 99 million.

Mr John Carter president & CEO said Our metals recycling business substantially increased sales volumes and margins. Demand for steel in our markets appears to be high.

Usiminas Usiparts inaugurates new stamping line

Brazilian steelmaker Usiminass auto parts and components division Usiparts has officially launched operations at a new line in its stamping shop at Pouso Alegre city in the Minas Gerais state of Brazil.

Mr Rinaldo Campos Soares CEO of Usiminas told reporters "This is an important project and was finished in record time. The project took about eight months to develop and will expand the unit's capacity by 30%.

The project, which includes three equipment presses, required investment of BRL 46 million (USD 23 million) and will expand Usiparts' steel use to 3,300 tonnes per month from 2,500 tonnes per month.

Usiparts was created in 1996 and is one of 16 companies of the Usiminas group. Usiparts posted gross revenues of BRL 236 million in 2006.

Usiminas and subsidiary Cosipa have combined output capacity of 9.5 million tonnes of steel per year.

Sojitz to supply equipments to Acerinox

Antara reported that Japan's Sojitz Corp has received an JPY 11 billion yen (USD 92.5 million) order for machinery from stainless steel producer Acerinox SA of Spain. Sojitz will deliver cold rolling equipment procured from such Japanese companies as Mitsubishi-Hitachi Metals Machinery Inc to Acerinox's South African and US subsidiaries.

The equipment headed for South Africa is slated to be in operation in April 2009, with the equipment headed to the US to be placed into service the following month. Sojitz will also deliver to Acerinox annealing equipment used in cold rolling preproduction, with plans to have that up and running by April 2008.

Russias coal exports in January to February 2007 dip by 7.1% YoY

Russian Federal Customs Service announced that Russia has reduced bituminous coal exports by 7.1% YoY during January to February 2007 to 12.033 million tonnes. Exports in value rose to USD 645.2 million from USD 618.6 million during January to February 2006.

Russias coal exports to non CIS countries fell by 10.3% YoY to 10.288 million tonnes while exports to the CIS countries increased by 17.6% YoY to 1.754 million tonnes. In value terms, exports to the non CIS fell to USD 530.6 million from USD 532.1 billion in January to February 2006 while exports to the CIS grew to USD 114.6 million from USD 86.5 million in January to February 2006.

Russian coal imports fell by 19.6% YoY during January to February 2007 to 3.512 million tonnes. Russia imported 3.504 million tonnes from the CIS. The imports in value grew to USD 62.2 million from USD 56.9 million in January to February 2006.

Baosteel has no current overseas listing plans Report

XFN-ASIA citing a senior company official reported that Baosteel Group has no overseas listing plans at present. The official told reporters on the sidelines of an industry conference in Shanghai that It is not considering a listing for now as it has ample capital and its first priority is to perfect the company structure and management.

The official however noted that the group is still in talks with Handan Iron & Steel and Baotou Iron and Steel Group Co Ltd about possible stake acquisitions. The Baosteel Group, and its two wholly-owned subsidiaries previously bought a combined 5.0002 pct stake in Handan Iron & Steel and there has been speculation they plan to increase their holding.

Baosteel Group is the parent of listed Baoshan Iron & Steel Co Ltd.

Local authorities seek to curb Albidon's Munali nickel mine expansion

It is reported that local authorities in Zambia's Mazabuka district in Central Province are seeking to halt the expansion of the Munali nickel mine to stop it from encroaching on the lands of local people. The an official with the Ministry of Mines and Minerals Development as saying that the central government has already contacted local authorities to find ways of mitigating the stand off to allow the investor continue with the expansion.

Mazabuka is a strong hold of Zambia's second leading opposition party, the United Party for National Development, which resolved to withdraw the offer of 2,100 hectares it had earlier approved for the expansion of the project and give only 1,600 hectares. Mining has dominated last year's general election campaign and the opposition candidates threatened to expel Chinese investors because of the poor working conditions at their mines.

Australia based Albidon Ltd, 100% owners of Munali, recently said the mine is on course to commence output in the first half of 2008. The mine will have the capacity to produce up to 8,500 tonnes of nickel a year in its 10 year life span.

KZFs Q1 output of metallic chrome up by 63% YoY

Russian Special Alloyss Klyuchevsky Ferroalloys Plant has increased production of metallic chrome by 63% YoY in the first quarter of 2007, to 2,282 tonnes.

Its production of chrome powder also increased by 31% YoY to 305 tonnes. Production was also up by 7.65% YoY to 1,127 tonnes of ferrochrome, by 55% YoY to 1,739 tonnes of ferrotitanium, by 60.3% YoY for flux cored wire and by 126% YoY for hardeners.

KZF exported about 70% of its output in the quarter.

El Capitan appoints Mr Pavlich as new president & CEO

El Capitan Precious Metals Inc announced that its board of directors has acted on the recommendation of Mr Chuck Mottley chairman, president & CEO to appoint Mr Kenneth P Pavlich to succeed Mr. Mottley as president & CEO effective April 6th 2007. Mr. Mottley will remain chairman of the board of directors.

As the Principal of Pavlich Associates since 2002, Mr Pavlich has provided consulting services to numerous precious metal, base metal and industrial mineral companies. Before founding Pavlich Associates, Mr Pavlich held senior management positions with industrial minerals producer, Oglebay Norton Company and precious metals producer Santa Fe Pacific Minerals.

Mr. Mottley said I am very pleased that Ken Pavlich has agreed to join ECPN at this critical time in the Companys history. His experience in the management, evaluation, development, and operation of precious metal mines will be critical to the strategic goal of developing the El Capitan resource. In addition to assisting ECPN with the development of the El Capitan deposit since 2005, he has been a valuable member of the Board of Directors of the Company since 2006. I am confident that Ken is the right choice to lead the ECPN team in the effort to fully capture the value of the El Capitan deposit for our shareholders.

El Capitan Precious Metals Inc is an exploration stage company that owns a 40% interest in the El Capitan property located near Capitan in New Mexico as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the COD mine located near Kingman in Arizona. In addition, the Company owns 100% of the Weaver mine located near Phoenix in Arizona.

Aquila gets 7 iron ore prospecting rights in SA

Australian mining group Aquila Resources announced last week that it has been granted a suite of strategic iron ore exploration tenements comprising of Northern Cape and Thabazimbi Projects, adjacent to its existing iron ore mines and associated infrastructure in South Africa.

As per the announcement, a total of 7 prospecting rights, covering some 3400 square kilometers have been granted in the Limpopo and Northern Cape Provinces over highly prospective iron ore settings.

The release added that Aquila and Rakana Consolidated Mining, in which Tawana Resources has a 26% stake, have formed the Thabazimbi Joint Venture to develop iron ore projects in South Africa.

Yuzhny GOK 2006 earnings dip by 78% YoY

Ukrainian iron ore producer Yuzhny GOK closed 2006 with net profit down 78% to UAH 5.564 million while its retained earnings stood at UAH 265.55 million at the end of 2006. The company did not disclose its sales figures for last year.

Yuzhny GOKs current liabilities increased by 36.3% in 2006 to UAH 1.05 billion and long term liabilities grew by 87.6% to UAH 431.21 million although long term financial investments were unchanged at UAH 1 million.

Yuzhny GOK's receivables rose by 66.2% to UAH 1.096 billion. The company's equity edged up 0.5% to UAH 945.67 million, fixed assets slipped 0.1% to UAH 1.031 billion and overall assets grew 25% to UAH 2.432 billion.

Yuzhny GOK shareholders will review last year's results, distribution of profits and plans for 2007 at their annual general meeting on May 30th 2007.