SAIL plans 35 million tonne capacity in Jharkhand and Burnpur

The Telegraph reported that Steel Authority of India Limited is planning to setup 35 million tonnes of steel making capacity in Jharkhand and Burnpur as Jharkhand government has told SAIL that it is willing to give access the iron ore mines at Chiria if it is for capacity expansion only within Jharkhand and at Burnpur in West Bengal.

Mr SK Roongta chairman of SAIL told The Telegraph Jharkhand government has told us that they are willing to allocate iron ore from the Chiria leases for any capacity expansion in Jharkhand and Burnpur.

Mr Roongta said that We are now not only talking of ramping up Bokaro to 17 million tonnes from the current plans of 7.5 million tonnes but also starting a Greenfield steel plant at Manoharpur which will initially have a capacity of 6 million tonnes but with a possible second phase of another 6 million tonnes. He said that the new proposals were likely to be included in the companys corporate plan till 2020.

Mr Roongta said that The projected 35 million tonnes addition will create a demand for ore of about 60 million tonnes a year. Chiria which has 2 billion tonnes of reserves can supply this ore uninterruptedly for 30 years.

In the original plan, SAIL wanted to raise the capacity of the Burnpur plant to 3.2 million tonnes and Bokaro Steel Plant to 7.5 million tonnes thus totaling 10.7 million tonnes but now SAIL plans to raise the capacity of the Burnpur plant to 6 million tonnes by 2020. For Bokaro, the plan is to raise the capacity to 17 million tonnes against 7.5 million tonnes earlier. SAIL is also keen on a Greenfield plant at Manoharpur, near the Gua mines of IISCO. This is likely to be a 12 million tonnes plant and it may come up in two phases.

SAIL is pulling out all the stops to prevent Jharkhand from giving a part of Chiria to another steel maker. SAIL got the mining rights for Chiria after it acquired IISCO which was the original leaseholder. However, Jharkhand had said it would renew the leases only to the extent of ore required by IISCO and the projects of SAIL in the state and the matter is under litigation.

POSCO may look at other options due to land acquisition hurdles

It is reported that after facing stiff resistance from people who are likely to get displaced by its steel project near Paradip, POSCO has finally started looking at other options.

Mr Soung-Sik Cho CMD of POSCO India after a brief meeting Mr Naveen Patnaik chief minister of Orissa, in response to POSCOs strategy if they failed to get the land, said that "There are other options. He did not elaborated on options POSCO is looking at.

Mr Soung-Sik Cho informed that POSCO has already started a dialogue with people of the area for acquisition of land and there are positive signs.

But he added that POSCO would never favor any move to acquire land by force, he added. He said "We don't want use of force by the state government for land.

New coal distribution policy likely to come out soon

Union coal ministry announced that a new transparent coal distribution policy would soon replace the present system of acquiring coal from the subsidiaries of Coal India Limited.

Mr Rajiv Sharma additional secretary to union coal ministry on a visit to Dhanbad for performance review of CILs subsidiary Bharat Coking Coal Limited last week said that "Keeping in mind the constant problems faced by the non core sector in acquiring coal, the authority is busy framing a hassle free distribution policy to cover and meet the demands of each and every quarter and the new policy is likely to be introduced in the next 15 days."

TATA Steel considering titanium plant in Tamil Nadu

FE reported that TATA Steel is awaiting clearance from the Tamil Nadu government for around 1,000 acres it requires for setting up a titanium dioxide plant. After completion of prospecting and feasibility study on its titanium project, TATA Steel has also applied for the mining lease for a 55 square kilometer area.

Dr S Asokan chief of Titanium business of TATA Steel said that "The Company will have to decide, there is nothing sacrosanct. The moment the Tamil Nadu government agrees to it, we will start the land acquisition process, and will start commercial production within 2 years. The company does not envisage any major problem in acquiring land as it is located in a backward area."

TATA's titanium project to be carried out in two stages initially needs an investment of around INR 2,000 to INR 2,500 crore including erection of a desalination plant as the source of water for the project.

During the first phase, the company plans to extract ilmenite while titanium dioxide will be derived in the second phase.

Defense sector PSU Mishra Dhatu Nigam Ltd which produces around 300 tonnes of titanium annually is the only commercial producer of the titanium in India.

Bailadila iron ore deposits estimated at 1.135 billion tonnes

Mr Sis Ram Ola union minister of mines in a written reply in the Lok Sabha informed that the total resources of iron ore in Bailadila deposits have been placed at 1135.31 million tonnes and National Mineral Development Corporation holds 6 mining leases for iron ore in Bailadila mines over a total lease area of 5861.76 hectares

Mr Ola further informed that following approvals have been conveyed to the state government
1. Prior approval for grant of mining lease for iron ore over an area of 413.74 hectares in Bailadila RF No 13 in favor of NMDC
2. Prior approval for grant of prospecting license in favor of Essar Steel Ltd over an area of 2285 hectares in Bailadila RF No 3
3. Prior approval for grant of prospecting license in favor of TATA Steel over an area of 2500 hectares in Bailadila RF No 1

He also noted that the total production of iron ore in Bailadila area during 2006-07 was of 20.45 million tonnes and the quantity exported was 2.05 million tonnes.

CILs CCL to expand capacity

It is reported Coal India Limiteds subsidiary Ranchi based Central Coalfields Limited is planning up to double its production capacity and also increase the capacity of coal washeries in the next few years to meet increased demand of its main consumer power sector.

CCL has decided to open up new projects which includes Magadh project with 20 million tonnes per annum, Amrapali with 12 million tonnes per annum, North Urimari with 3.5 million tonnes per annum, Konar and Karo with 3 million tonnes per annum each and 2 of the existing large mines namely Piparwar and Asoka which were designed for 6.5 million tonnes per annum will be upgraded to10 million tonnes per annum each.

CCL is now trying to increase the share underground production. The board of CCL has thus approved the introduction of continuous mine in Chiru UG at a cost of about INR 145 crore to raise this mine's production from 2 million tonnes per annum to 8 million tonnes per annum. It is also pointed out that most of CCL's production came from opencast mines and only 2 million tonnes per annum from underground mines.

Mittal Investments stake in Bhatinda refinery cleared

Indian government has cleared the proposal of Punjab government for enhancing the foreign direct investment limit in public sector oil refining companies from 26% to 49%. This clears way for Luxembourg based Mittal Investments agreement with HPCL in 2006 to acquire 49% equity in INR 16,000 crore Hindustan Petroleum Corporation Ltd's refinery at Bathinda by investing INR 3,300 crore.

Mr Ramesh Inder Singh chief secretary of Punjab told Hindustan Times that the union government formally approved Mittals participation in the refinery a few days ago by raising the FDI ceiling.

According to the report, PCL will hold the remaining 49% equity in the 9 million tonne refinery and financial institutions will have a 2% stake in the special purpose vehicle set up for building the plant and laying a 1,100 kilometer pipeline for bringing crude oil from Mundra port to the refinery.

The new refinery project, which was earlier scheduled to be commissioned in 2003, will be completed by September 2010 and has resulted in a cost over run of INR 6,000 crore from the originally estimated INR 11,500 crore.

HPCL had failed on 2 occasions to forge alliances with BP in Saudi Aramco and Oil India before entering into the JV with Mittal.

NDPL plans 1000MW power plant at Khanjawala

PTI reported that North Delhi Power Limited has shown interest in setting up a 1,000 MW power plant in New Delhi and asked for land at Khanjawala after losing out on the Bawana project. Construction at the Bawana site may commence either this year or the next and the project is likely to be commissioned by 2009-10.

Mr Anil Saldana ED of TATA Power Corporation said that "We have asked for land at Khanjawala as we want to help out with Delhi's precarious power situation by building a power plant. NDPL has already applied for land site and is interested in the 1,000 MW project at Khanjawala.

NDPL had earlier expressed interest in the Bawana project but lost out on it. The report cites Mr Rakesh Mehta power secretary of Delhi as saying that the government had never considered giving over the Bawana project to any private company and was fully capable of completing it on its own.

North Delhi Power Limited, the power distribution arm of Tata Power serves a populace of 5 million inhabiting North and North West Delhi. It is a JV between TATA Power Company and the Government of NCT of Delhi with the majority stake being held by the TATA Group. The company started operations on July 1st 2002 post the unbundling of erstwhile Delhi Vidyut Board.

Baosteel and Handan JV to set up 5 million tonne plant

China Business News reported that Baosteel Group and Hebei Handan Iron & Steel Group Co Ltd are planning forming a 50:50 JV for setting up a 5 million tonne steel plant in the west wing of Handan Steel Group's headquarter in the city of Handan in southwestern China's Hebei Province. Projects in the new area will be operated by Handan Steel Group.

The total investment of Handan Steel Group's new area project, one of a few large scale steel projects getting approvals from China National Development and Reform Commission since Chinese government's macro control, is estimated at some CNY 19.368 billion.

Projects in the new area will be completed by 2010. The first stage of project, including iron making system, coke oven, sintering mill and hot tandem mill, will be finished in 2008. And the tandem cold strip mill will be set up in second stage project. The new area is closed to Handan Steel Group's 1765mm tandem cold strip mill with annual capacity of 1.3 million tons.

Handan Steel Group's new area will be mainly applied to production of some high added value steel products, like pipeline steel, automobile sheet and appliance sheet that seriously fall short in domestic market. At the same time, HR sheet, CRC, galvanized sheet and color coated sheet will be also manufactured there.

Rio Tinto declines BHP Bid rumors

Rio Tinto has quashed market speculation it had received a takeover offer from its larger rival BHP Billiton after its share price surged to a record amid market rumors of an approach. Rio Tinto shares closed at AUD 5.8 higher or 6.5% to AUD 95.5, after hitting a record AUD 99.69 in afternoon trade on Wednesday.

Rio Tinto in response to a price query from the Australian Stock Exchange after the close of trade said "Rio Tinto is not aware of a takeover approach from BHP Billiton.

BHP declined to comment.

Talk swept Australian markets that BHP was readying a hostile bid for Rio after it had rebuffed a friendly offer of AUD 100 to AUD 110 per share, a premium of up to 23% from Tuesday's close.

Ternium Sidor adequately supplies to Venezuelan market AIMM

BNamericas reported that according to Venezuela's mining and metallurgical industry association AIMM, steelmaker Ternium Sidor is supplying the local Venezuelan market satisfactorily and efficiently.

Mr Eduardo Garmendia president of AIMM in a statement said that In 2006, domestic shipments of products manufactured by Ternium Sidor came to 2.3 million tonnes of steel in various forms, representing nearly 65% of its installed capacity. The percentage rose to 100% in the case of long products.

Mr Garmendia said that Ternium Sidor does not manufacture seamless tubes for the oil industry and explained that Venezuela's basic industries and mining ministry Mibam has plans to create social production companies EPSs to meet demand for products not manufactured in the country. Mibam plans to build a seamless tube plant, a plant to produce rails and beams and a steel plant to manufacture thick plates.

AIMM's statement was prompted by President Mr Hugo Chez's threat to nationalize the steelmaker unless it agrees to supply the domestic market instead of selling all of its output overseas. The steel would be used to manufacture tubes for Venezuela's large oil and gas industry.

The Venezuelan state owns nearly 20% of Sidor through its heavy industry holding company CVG, while 20% is property of its employees. The other 60% is in the hands of Ternium, Techint's Latin American steel holding which also has Siderar in Argentina and Hylsa in Mexico.

Anglo American to double iron ore output in 5 years

Bloomberg reported that Anglo American plc plans to double its iron ore production in 5 years to capitalize on increasing demand for the steel making raw material.

Ms Cynthia Carroll CEO of Anglo American plc while addressing a mining conference in Dublin said that "Anglo wants output from its MMX Minas Rio project in Brazil to meet demand in China, which is expected to remain robust. Anglo will become one of the lowest cost producers."

Mr Carroll is narrowing Anglos focus from forestry and gold mining to the metals China needs to fuel its economic boom as development in China has spurred 5 consecutive years of gains in contract iron ore prices, encouraging companies such as Cia Vale do Rio Doce, Rio Tinto Group and BHP Billiton Ltd to boost production.

Anglo owns 65% of Africas largest iron ore producer Kumba Iron Ore Ltd. Anglo also paid USD 1.15 billion for 49% of the MMX Minas Rio iron ore project from MMX Mineracao e Metalicos SA.

LME nickel hits new high

Nickel hit a new high on the London Metal Exchange on Wednesday. Nickel for delivery in three months has risen by some 53% this year to touch a new all time high of USD 51,800 per tonne but by mid session it fell back under USD 51,000 against the close of USD 51,200 on Tuesday.

LME nickel stocks fell by 174 tonnes to 4,458 tonnes, with only 3,270 tonnes available to the market which is less than a day of global consumption.

China's trade surplus in 2007 estimated at USD 254 billions

China daily has reported that China's trade surplus will hit USD 254 billion in 2007 a 42.8% YoY increase but the rate of growth will begin to slow.

According to a study by the Center for Forecasting Science of the Chinese Academy of Sciences the gap between imports and exports should narrow in 2007 where export volume is expected to reach USD 1.2 trillion up by 23.7% from 2006 while imports rise to USD 945.6 billion an increase of 19.5 %.

As per report the trade surplus between China and the United States will surge 23.5% total exports to the US will reach USD 263.6 billion a 29.8% increase. China will import USD 71 billion from the US up by 18.9% from 2006 and the trade surplus between China and EU will increase nearly 45 % to a total volume of USD 128.7 billion and exports to the European market will increase 33.1% to USD 239.3 billion while imports to China rise 22 % to USD 110.6 billion.

The research center made the forecast based on analysis of world and domestic economies, as well as custom data released at the end of March.

Xstrata mulls launching counter bid for Lionore

AFX reported that Xstrata Plc is mulling whether to launch a counter bid for Lionore Mining International after its earlier USD 4 billion takeover offer was outbid by Russia's Norilsk Nickel.

Mr Mick Davis CEO of Xstrata in an interview with Swiss bi weekly Finanz und Wirtschaft said that 'We may either withdraw or launch a counter bid. Currently we are assessing our position.

Asked about possible alternatives should the Lionore takeover fail, Mr Davis said that Xstrata is permanently assessing potential additions but said that growth does not depend on acquisitions.

Mr Davis said that he expects the consolidation in the raw materials sector to continue and that further transactions of the size of Alcoa Inc's USD 33 billion bids for Alcan Inc are bound to happen.

He also said that the mining sector is facing rising costs such as raw material prices, the costs of machinery and an increasing shortage of skilled labor.

Algoma Steel pre pones shareholder meeting for Essars offer approval

It is reported that Algoma Steel Inc has advanced the date of next month's annual and special meeting of shareholders by nearly two weeks. Algoma announced that the meeting, where shareholders will be asked to approve the USD 1.85 billion cash offer by a subsidiary of India's Essar Steel Holdings Ltd has been moved to June 11th 2007 from June 21st 2007.

Shareholders will be asked to give two thirds approval to the offer, already being recommended by Algoma's board of directors, at the meeting.

ASI said in the release. "As a result, advancing the date of the meeting provides the potential, if the arrangement is approved by shareholders, for a closing and payment to Algoma shareholders earlier than was previously contemplated. Depending on various factors, the closing could occur as early as June 15th 2007.

Algoma also said in a release that the Competition Bureau of Canada issued an advance ruling certificate Tuesday in respect of the cash offer.

Essar is offering to purchase all of Algoma's outstanding common shares for CAD 56 per share, a 48% premium on average share price.

Chinas non ferrous metals production in Q1 surges

The production of primary aluminum in China during January to March 2007 quarter increased by 37% YoY and a considerable increase in production was also registered for nickel up by 26% YoY, zinc up by 23% YoY and tin up by 21% YoY.

China non ferrous metals production in Q1 of 2007 is as under

In thousand tonnes

Consumption of nickel in China is actively growing on account of producers of nickel pig iron. Import of nickel increased 46.7% YoY to 29,600 tonnes and the export increased by 42.5% YoY to 6,600 tonnes. The export from China will subside due to increase of the duty for export of nickel products from 2% to 15%. Thus, Chinas largest producer of this metal Jinchuan Group has halved the planned export figure in 2007, decreasing it to 3 million tonnes.

Consumption of zinc in this year demonstrates a 10% growth. According to analysts, this year it will reach 3.7 million tonnes. The increase in production of the metal is expected at the level of 15%, till the end of year reaching 3.6 million tonnes. In Q1 the zinc output increased 23% export by 4.99 times to 152,900 tonnes, the import by 2.48 times, to 364,300 tonnes.

The increase in tin production in China is connected with the cut of global reserves, which is, in turn, connected with stop of the illegal extraction in Indonesia and closure of some projects on the environmental reasons. China is currently exporting this product in Q1.

Al Tuwairqi plans a rebar mill Lebanon

Saudi Arabian Al Tuwairqi Group announced that it is planning to build a USD 300 million factory in Beirut for producing steel reinforcing bars. As per report Al Tuwairqi wants to build the plant primarily to sell rebar to the Lebanese building market, which currently imports all of its reinforcing bars, because the last domestic factory ceased operations a few years ago and moved to Jordan.

Mr Jassima al-Abbas business development general manager at Al-Tuwairqi said that the proposed facility would employ around 350 people and produce about 500,000 tons a year of the rebars. Mr Abbas said that the project is in early stages, as Al-Tuwairqi is still negotiating to buy the land and investigating infrastructure requirements.

Al-Tuwairqi said that it will reveal specifics for the project including the identity of the Lebanese partner who has signed a memorandum of understanding with Al-Tuwairqi.

BHP could also become a takeover target Mr Lynch

BHP Billiton could be at risk from a private equity predator, according to the president of the group's carbon steel materials unit Mr Chris Lynch who was responding to questions about the rise of private equity buyouts in the Australian market following a talk in Melbourne.

Mr Lynch after the Australian Shareholders Association and Australian Securities Exchange sponsored investor talk said "One of the cheapest resources to access today is money. There's a lot of money looking for a home. It would be dangerous to assume that it couldn't happen to you. I think you've go to be alert."

Mr Lynch added that "There may be people working on it right now, I don't know.

POSCO considering SS plant in Vietnam

South Korean steel maker POSCO Co Ltd has announced that it is considering building a stainless steel plant in Vietnam but no details have been decided.

A POSCO official said that "We've just started a feasibility study to build a cold-rolled stainless steel plant in Vietnam. This is a very early stage and we have not decided any details such as volume of the plant."

POSCO has been looking for an opportunity to enter Vietnam as a gateway to the Southeast Asian market. It has already committed to invest a total of USD 1.13 billion in Vietnam for hot rolled and cold rolled steel plants by 2012.

Alter acquires scrap recycler Ben Shemper and Sons in Mississippi

Recyling.net reported that St Louis based Alter Trading has acquired the assets of Ben Shemper and Sons at Hattiesburg in Mississippi scrap metal recycler with effect from May 1st 2007. The acquisition will allow Alter to expand its business operations in the southern United States.

The newly acquired company will be called Ben Shemper and Sons a Division of Alter Metal Recycling and will retain the approximately 60 employees who currently work there.

Mr Keith Rhodes CFO of Alter said that "We bring a lot of resources as far as our ability to make capital improvements and the various markets we have access to. We have access to additional technologies that are more difficult for the small operator to acquire or implement."

Mr David facility manager of Ben Shemper and Sons said that "Our industry is changing at warp speed and the Alter Company has built a system where they are evolving and trying to anticipate those changes. We have been approached by several companies in recent years, but we were never as comfortable and excited about a potential suitor as Alter to take care of our employees and customers who have built this business."

Over the past several years Alter has been making a number of strategic acquisitions, most of which have been in the Midwest. At the present time Alter has more than 2 dozen processing facilities, 5 US trading offices and a trading office in China.

US Steel to expand in energy services segment

US Steel Corp plans to boost investment in producing metal for the oil and gas industry after it completes the USD 2.1 billion acquisition of Lone Star Technologies Inc.

Mr John Surma CEO of US Steel in an interview at an industry conference in Las Vegas said that US Steel sees lots of opportunities in the energy services market. He said US Steel will focus on expanding in so called tubular steel for the energy industry and flat rolled steel products.

Buying Lone Star will boost US Steel's North American tubular manufacturing capacity by 56% to 2.8 million tons a year, surpassing Ipsco Inc as North America's largest manufacturer of steel pipe used in oil and gas drilling and transmission.

Zinifex takes control of Wolfden

Bloomberg has reported that Zinifex Ltd won control of Canadas Wolfden Resources Inc with its CAD 361 million (USD 326 million) bid for the exploration company.

Melbourne based Zinifex said in a statement that Zinifex has acquired 86 million Wolfden shares or 95% of the company at CAD 3.81 per share and will compulsorily acquire the remaining stock in Thunder Bay Ontario based Wolfden.

Mr Ewan Downie CEO of Wolfdens said that it has spent about USD 100 million since 2002 exploring in Canadas Arctic for gold, copper, silver and zinc deposits that may be worth about USD 20 billion.

Zinifex is focusing on mining as it plans to combine its smelting assets with Umicore SA and sell shares in the new company.

Germanys April crude steel output up by 0.5% YoY

Germany's Federal Statistics Office reported that production of crude steel in April climbed up by 0.5% YoY to 4.08 million tonnes, while pig iron output was down 0.3% to 2.60 million tonnes.

Federal Statistics Office added that on a MoM basis, crude steel production was down by 2.2% in April, while pig iron production was up by 2.0%. Adjusted for seasonal and calendar effects, crude steel production rose by 0.9% in April from March.

Bekaerts Q1 sales up by 7% YoY

Bekaert SA announced that it posted a YoY rise in Q1 sales in line with market expectations driven by steel cord in China and it remains confident for the first half of 2007.

Some of the highlights of its performance are

1. Its consolidated sales for January to March 2007 were EUR 514.0 million up by 7% YoY as compare to January to March 2006.

2. Advanced wire product sales up by 8% YoY to EUR 437.0 million advanced materials up by 8% YoY to EUR 47 million and advanced coatings up by 1% YoY to EUR 31.0 million. Inter segment sales fell by 1 million.

3. Combined sales went up by 2% YoY to EUR 811.0 million. Combined sales include sales of consolidated companies as well as 100% of joint ventures and associates.

4. In terms of combined sales, China steel cord up by 49% YoY supported by a major investment program.

5. By region, in terms of combined sales, Asia up by 30% YoY Europe increased by 11% YoY, North America fell by 14% YoY and Latin America fell by 3% YoY.

Change of guard at Highveld Steel

Following the acquisition of control of Highveld by Evraz Group SA Mr Andre de Nysschen CEO of Highveld and Evraz have agreed that he will retire as CEO of Highveld once a successor has been identified and there has been an orderly handover.

The release said The Highveld Board extends its appreciation to Andre for his significant contribution to the Corporation since joining in 2003 and wishes him every success in the future.

Highveld Board has also elected Mr Leslie Boyd as independent non executive chairman of the corporation subsequent to the resignation of Mr Godfrey Gomwe, who resigned as director and chairman of the Corporation following the acquisition of control of Highveld by Evraz Group.

Evraz Group SA last week concluded the purchase of Anglo American's 79% stake in Highveld. Last year Highveld agreed purchase by Evraz of Anglo's stake in Highveld for USD 678 million.

Methane blast kills 3 miners in Ukrainian coal mine

It is reported that a methane gas explosion deep underground in an eastern Ukrainian coal mine killed 3 miners and injured 18.

Mr Ihor Krol spokesman for Ukraine's Emergency Situations Ministry said that the methane leak occurred about 3,000 feet beneath the surface of the Krasnolymanska mine in the eastern Donetsk region. He said 28 miners were doing drilling work in the area when the leak occurred, triggering an explosion and fire. 25 miners managed to get to the surface.

Mine officials suspended work at the mine and have evacuated all 452 miners working underground.

Chinas investment growth in coal mines slows down

Mr Pu Hongjiu Party committee secretary of China National Coal Association said that the investment growth in China's coal mines has begun to slow down.

Investment in fixed assets in China's coal mining and dressing concluded CNY 147 billion in 2006 up by 27.2% YoY 38.8% lower than 2006 that in the first two months of 2007 scored CNY 4 billion up by merely 2.3% YoY.

Mr Pu said that China government has taken many measures including raising industry admittance standards, strengthening readjustments, elevating taxation and so on, to lift investment costs further to prevent some risk capital entering the market and drive down investment growth. However, Mr Pu also warned that rising investment return rate increased profits strengthened investment willingness and abilities and excess liquidity are still adding impetus to bank loans and coal investments.

On account of robust demand the tenth "Five-Year Plan" witnessed the fastest growth of investment in coal industry. From 2001 to November of 2005 investment in fixed assets in China's coal industry broke RMB 225.3 billion almost equaling to that in all the nine previous "Five-Year Plans" besides the investment soared since 2003 and increased by 65.6% in 2005.

Currently there are 1563 mine projects under construction with annual capacity of 653 million tons. Rebuilding and expansion further push the capacity to 830 million tons. Fresh coal capacity in 2006 is estimated at some 220 million tons that in 2007 and 2008 at some 260 million tons.

(Sourced from MySteel.net)

Sago blast likely caused by lightning MSHA

USs federal mine regulators Mine Safety and Health Administration have concluded that as many as three lightning bolts struck at the same time near West Virginias Sago Mine last year, probably generating enough energy to touch off a methane gas explosion that killed 12 miners.

MSHAs report said the electrical charges likely traveled along a pump cable and created an arc in a sealed off area that was full of methane.

The conclusion is questioned by the United Mine Workers union and some relatives of the victims who said that MSHAs report offered no proof of lightning. Mr Cecil Roberts president of UMW said in a statement that the lightning strike is a far fetched theory and is unsupported by physical evidence found and examined in the mine. UMW issued its own report on the Sago blast on March 15th 2007 saying hazardous roof conditions were the likely cause of the accident.

The January 2nd 2006 explosion at Sago, near Buckhannon in West Virginia trapped 13 miners more 250 feet underground for more than 40 hours and all but one died before rescuers reached them.

Philippines nickel laterite exports to China in April triples

It is reported that Shipments of nickel laterite ore from the southern Philippines to China has more than tripled in April 2007 as compared to 2006 as Chinese companies are seeking alternative supplies.

According to Bureau of Customs data, exports rose to 492,002 tonnes from 144,547 tonnes.

China's steel makers have boosted purchases of nickel laterite ore to process it to create nickel for stainless steel for appliances and cutlery. Philippines low grade ore competes with easier to process nickel sulphides and the shift may ease pressure on nickel prices.

Boliden reports higher refined zinc production in Q1

Swedish producer Boliden announced that it produced 89,031 tonnes of mined zinc in the Q1 of 2007 flat against 2006 period of 89,225 tonnes.

Boliden said the increase was largely down to the Kokkola refinery in Finland where production records were broken in two of the quarters three months. Output at Odda in Norway however was affected by production disruptions in the leaching and purification process during the quarter.

Comprehensive report on Indian steel sector

The Indian steel industry is poised for massive expansion. Dramatic consumption growth over the last few years has stimulated enormous expansion plan, facilitated by unexploited iron ore raw material base. India is now being hailed as the new China, where crude steel production soared from less than 100 million tones in 1995 to over 400 million tones in 2006.

Indian crude steel output at just 38million tonnes in 2005 is starting from a much lower base, and the economic steel- consuming structure of China is substantially different from India. Nevertheless, India has recently established a long-term goal of raising crude steel production to 100 million tonnes per annum by 2020.

UK based GFMS Metals Consulting in an innovative way and value for money report on Indian steel industry includes complete statistical coverage of the industry, an unbiased and frank assessment of growth expectations, a base case outlook for each steel product & the industry as a whole with a clear view of potential risks, an assessment of raw material availability and trends and production, trade and consumption forecasts out to 2011.

The report coverage includes historic production, trade & apparent consumption of carbon steel both long and flat products, raw materials, producers, economic environment, political and other risk factors.

If you are interested to know more about it please visit
http://www.steelguru.com/GFMS_MC/indian_steel_report.php
or send a mail at research@steelguru.com