CCCMC restarts publishing reference prices for Indian iron ore

After a 2 month break, the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has resumed posting of 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 March 5th 2007 as CCCMC stopped publishing prices after iron ore market became uncertain when Indian government announced INR 300 per tonne export tax.

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.

From these prices, it is evident that Chinese steelmakers accepted the increase of almost 85% of the export tax levied and that the freight rates have increased by USD 4 per tonne during this period. The claim by Indian iron ore miners that the export tax would hit their bottom line seems to have been taken care by the increased prices.

Steel secretary calls for a competitive sponge iron industry

PTI report that union government has asked sponge iron manufacturers to be more competitive and contribute to the growth of the steel sector by enhancing their production quality to face stiff competition from primary steel producers.

Mr RS Pandey union steel secretary while addressing the annual general meeting of the Sponge Iron Manufacturers Association said that "The sponge iron industry has to be competitive and ensure optimum utilization of its capacity. We are concerned about their competitiveness as they would have to compete with the primary steel producers."

Mr Pandey suggested that the sponge iron industry should resort to efficient use of energy to lower their cost of production and argued that in today's fiercely competitive world unless the industry ensured its competitiveness it would become difficult to promote them.

Mr Pandey said that the government would do the needful to enable Indian sponge iron sector to grow and has taken the issue of ensuring supply of P and C grade coal for the sponge iron makers with the coal ministry.

AP to ink MoU with iron ore miners for steel plant in Kadapa district

It is reported that the Andhra Pradesh government is likely to sign a MoU with a group of investors for setting up a 4 million tonnes steel plant near Ambavarm village in Kadapa district of AP. The promoters propose to set up a steel plant with an initial capacity of 2 million tonnes which will be later scaled up to 10 million tonnes capacity. The initial investment for the proposed project is estimated to be INR 4,000 crore.

The state government has already identified 8,000 acres of land near Ambavaram village and is finalizing other details, which will be part of the MoU.

As per report, the promoters zeroed in on Kadapa district after considering locations in other Rayalaseema districts, mostly in Anantapur, which is bordering Karnataka and also a spillover region of iron ore reserves, in a bid to find water for their plant. Water is said to be the main reason that forced them to think beyond the Bellary region and Karnataka. The proximity to Krishnapatnam Obulavaripalem railway line, which is being actively used by iron ore exporters is another reason for choosing Kadapa district.

The promoters include iron ore miners and exporter Mr Janardan Reddy. Mr Reddys firm currently supplies iron ore to JSW steel in Karnataka besides exporting the raw material to China. It has over 100 million tonne reserves in mines in the Bellary region and a few mines in the Anantapur area.

Indian major ports 2006-07 traffic up by 9.51% YoY

Indian government announced that traffic in 12 Indian major ports has registered a growth of 9.51% during the year 2006-07 as compared to the traffic handled in the year 2005-06.

Following table shows the port wise cargo traffic handled as against the target fixed during 2006-07

In million Tones

Mr TR Baalu minister of shipping, road transport and highways in a informed the Lok Sabha said that improvement of the working of major ports in terms of handling of traffic in India is an ongoing process and several steps have been taken under National Maritime Development Programs like
1. Development & construction of berth
2. Deepening of channels
3. Equipments up gradation
4. Improvement in rail and road connectivity etc with a view to enabling the ports to achieve the projected targets.

Details of NTPC & CILs MoU for coal mining JV

A MoU has been signed between Coal India Limited and National Thermal Power Corporation on 15th March 2007 for jointly undertaking the development, operation and maintenance of coal blocks and integrated coal based power plants.

Dr Dasari Narayana Rao minister of state for coal informed followings highlights of the MoU to the Rajya Sabha.

1. Joint Business Development Group consisting of four members each from CIL and NTPC will identify suitable projects and submit feasibility report to the Steering Committee consisting of 2 functional directors from each of CIL and NTPC. This Committee will send the feasibility report to the Apex committee which comprises of CEOs of CIL and NTPC. Apex committee will consider and approve the report.

2. For implementation of the project, a JV agreement will be prepared and a project specific JV company will be formed after approval for investment and pattern of funding in the venture by the board of directors of CIL and NTPC.

3. Once JV Company is formed, the terms of this MOU will cease to apply to that specific JV Company.

4. The MOU also covers the points of incorporation and registration of JVs, its financing, the board & management of JVs, incurrence of expenditure by the parties, confidentiality clause, purchase of excess coal & power limitation of liability, effective date and validity, settlement of disputes and arbitration, entire understanding, governing laws and jurisdiction, assignment of rights and obligations and notice clause.

CIL & DVC equipment JV for MAMC revival seeks BEML as partner

It is reported that Coal India Ltd is trying to rope in Bharat Earth Movers Ltd in a proposed JV to develop an underground mining and material handling equipment and machinery manufacturing facility in and around Durgapur for revival of Durgapur based Mining and Allied Machinery Corporation.

Mr NC Jha director technical of CIL said that "CIL is trying to involve BEML which has manufacturing ability. It has also initiated talks with the company regarding its participation in the JV to revive MAMC. That company has shown interest." Mr Jha said BEML would require technology if it joined the JV and in that case it would have to tie-up with a foreign company or a technology provider.

Earlier, CIL and Damodar Valley Corporation had jointly proposed to acquire and revive MAMC and approached the West Bengal government with a revival proposal for the closed unit. CIL would discuss the draft MoU about participation in the JV with DVC at the company's board meeting scheduled to be held on May 11th 2007. The proposal of revival of MAMC is in conceptual stages and detailed action plan will be drawn after MOU with DVC and other interested parties is signed.

CIL is pursuing the revival of MAMC to get equipment required for underground mining which is declared as a thrust area in the 11th plan.

Equipments manufactured by MAMC earlier are still in use in some mines of CIL subsidiaries.

He also added that Damodar Valley Corporation has submitted a draft MoU proposal for joint development of an underground mining and material handling equipment and machinery manufacturing facility in and around Durgapur with CIL for revival of M/s MAMC. The proposal of revival of M/s MAMC is in conceptual stages. Detailed action plan will be drawn after MOU with M/s. DVC and other interested parties is signed.

GAIL commissions stage 1 of Dahej-Uran-Panvel-Dabhol pipeline

It is reported that GAIL has recently commissioned the phase I of 100 kilometer long Dahej Panvel Dabhol pipeline from Dahej to Surat of the DUPL gas pipeline project.

Work on the remaining pipeline which is approximately 15 kilometer to 20 kilometer stretch is expected to be commissioned by June end 2007.

DUPL line, with 30 inches diameter size and 576 kilometer length has an estimated investment of INR 3,200 crore. The pipeline has a designed capacity of 12 million cubic meters per day and will carry R-LNG from Petronet LNG's LNG terminal at Dahej to Dabhol power plant of Ratnagiri Gas & Power.

Electrosteels 2006-07 PAT up by 38.86% YoY

Electrosteel Castings Ltd has recorded a profit after tax at INR 106.15 crore for 2006-07 up by 38.86% YoY as against INR 76.44 crore during 2005-06 although its January to March 2007 profit after tax has recorded a drop at INR 28.21 crore from INR 30.44 crore for Q4 of 2006.

Electrosteel Castings gross earnings in 2006-07 have been recorded at INR 1,184.34 crore up by 18.23% YoY as against INR 1,001.69 crore in 2005-06.

According to an official release by ECL, the EBIDTA for 2006-07 has been recorded at INR 212.67 crore up by 31% YoY as against INR 162.11 crore in 2005-06 while its profit before tax for the period under review was INR 158.42 crore in 2006-07 up by 47% YoY as against INR 107.87 crore in 2005-06.

Electrosteel Castings Ltd has also recorded a 34% increase in exports of DI pipes and fittings by ECL during 2006-07 from INR 334.56 crore 2005-06 to INR 447.05 crore.

Coal ministry to change supply source for DVCs Kodarma plant

FE recently reported that Indias union coal ministry has ruled out possibilities for supply of thermal coal to Damodar Valley Corporation for its proposed 1,000 MW project at Koderma in Jharkhand from Coal India Limiteds Central Coalfields Ltds Hazaribagh mines as it expects problems in developing Chattibariatu south block allotted to DVC as it is in a forest area.

Mr Asim Barman chairman of DVC told FE that The Coal Ministry had committed us the linkage and they have to give it. We are already in talks with the Ministry to sort out the problem.

Coal Ministry now wants DVC to link up with Mahanadi Coalfields Ltd in Orissa, but DVC is not very keen about MCL as the long distance would inflate transport cost. The CCL block allotted is already connected via the Tori Shivpur Hazaribagh Koderma railway line.

Adhunik Metaliks commissions 17MW power plant

Adhunik Metaliks Ltd last week announced that it has commissioned its 17MW power plant which will be generated by utilizing the waste heat of its sponge iron plant.

MEPS estimates 5.5% increase in 2007 steel output

MEPS have forecast that global steel output in 2007 would be 1314 million tonnes in 2007 up by 5.5% YoY. MEPS said that approximately 60 million tonnes of the 70 million tonnes increase in crude steel output this year will come from the Asian producers. Steelmakers in the former USSR and South America will also make significant contributions. NAFTA is the only major region expected to show a decrease in steel manufacturing in 2007.

MEPS estimates 2007 global crude steel production as under

In million tonnes
Source MEPS - World Steel Outlook

MEPS also forecasts blast furnace to reach 931 million tonnes in 2007 up by 6.5% YoY. This higher BF figure is the result of the integrated BF BOF steel making route being the preferred process for many of the new installations. Direct reduced iron making is also expected to increase at a similar rate to blast furnace iron production from new capacity built in the Middle East and Asia. Scrap based electric melting is likely to be the loser due to reduced availability of the raw material.

Sidor workers now demand nationalization

It is reported that workers held protests outside the Sidor steel plant in Puerto Ordaz demanding that the government nationalize the company. The protestors blocked traffic of a nearby road and did not allow entry to the plant starting in the early morning hours. A spokesperson for the union stated that the workers are in favor of the president's intention to nationalize the company.

Mr JosMeldez member of the union organization Alianza Sindical de Sidor said that We are supporting the president's announcement about the possibility to liberate the company which has been subjected to slavery of neo liberal capitalism for the last 8 years. When the plant was privatized there were 11,600 employees and that now there are only 5,700 workers who are exploited and without any kind of benefits."

Unions also demanded that the government take the nationalization even further and give the majority of the company shares to the workers of the plant. One of them said "We are not divided and we completely agree that the president should acquire the control of this company so that it can eventually be passed on to the control of the workers.

Mr Hugo Chavez president of Venezuela had warned on last Thursday that he would nationalize the Argentinian owned company if they didn't meet the needs of domestic industry instead of exporting to foreign customers. It appears, however, that the government has reached an agreement with the company allowing it to remain in private hands. According to initial reports, the company may have agreed to the conditions demanded by the Venezuelan government. Those conditions could include
1. Lowering the prices for the domestic market between 15% to 20%
2. Switching production more toward the domestic market in order to substitute imports
3. Paying a higher price for the iron used in the steel plant than it receives from the state owned company Ferrominera.

SIDOR is the largest steel plant in the Andean region with a capacity of 4.2 million tons annually. SIDOR produces wire and pipes, including the kind of pipe that the Venezuelan national industry needs, and according to company reports, 63% of the production is directed to the Venezuelan market and 37% to exports. It was state property since its formation in 1962 until 1998 when it was privatized. 60% of the shares were acquired by a consortium named Amazonia, made up by the Argentinean firm Techint as a majority partner, as well as the Mexican Hylsamex, the Brazilian Uniminas and the Venezuelan company Sivensa as minority partners. The Venezuelan government retained 20% of the shares and the remaining 20% were given to the workers of the plant.

Baosteel sets SS output target for 2007 at 1.35 million tonnes

XFN-ASIA has reported that Baoshan Iron & Steel Co Ltd has set a stainless steel output target in 2007 at 1.35 million tons.

Mr Liu An president of Baosteel's stainless steel branch at an industry exhibition told reporters that the target output is almost the same as the level from 2006.

He said the company has increased its output of stainless steel products which do not contain nickel to 47% in April due to the rising cost of nickel with the non nickel products share for the year targeted at 45% to 50%.

Baosteel said in its annual report that output of stainless steel in 2006 exceeded 1 million tons without providing exact figures.

Dongbu Steel to build new furnace in Dangjin

Yonhap reported that South Korean Dongbu Steel Co will build a new furnace at Dangjin in South Chungcheong Province to boost its production of hot rolled steel sheets. The project will be completed by 2009.

As per report Dongbu Steel plans to spend about KRW 620 billion (USD 670 million) for the electric furnace with the production capacity of 2.5 million tons of hot rolled steel sheets a year.

Dongbu Steel currently buys hot rolled steel products from South Korea's POSCO and foreign steel producers. This year it plans to buy 2.7 million tonnes of hot rolled steel sheets this year, about 30% of which are to come from local steelmakers.

Alabama signs additional bill to lure ThyssenKrupp

Mr Bob Riley Governor of Alabama signed a bill offering a package of tax breaks that he hopes will be the final step needed to lure a USD 2.9 billion steel plant to Alabama. The plant is expected to begin operation in 2010.

The tax breaks approved by the Legislature come on top of a USD 400 million incentives package designed to attract the steel mill and other major industries to the state and the tax break bill which passed the House and Senate without a dissenting vote would give the German company a 10 year tax break on paying utility taxes an enhanced 20 year break on property taxes that don't go to education and an income tax credit for 30 years.

Ms Kathleen Blanco governor Louisiana of approved a USD 300 million fund late in 2006 for site improvements and construction to help lure the steel plant and is working on legislation to add another USD 100 million to that fund.

The supervisory board of the German steelmaker ThyssenKrupp AG will meet today to consider whether to locate the plant which will employ 2,700 people in Alabama or Louisiana and is deciding between a location in St. James Parish along the Mississippi River between Baton Rouge and New Orleans and a site near Mobile.

Mittal Steel SAs price talks with government unresolved

Reuters reported that South African Department for Trade and Industry has still not come to an agreement with Arcelor Mittal as to its pricing models.

Mr Mandisi Mpahlwa Trade and Industry Minister of South Africa during a media briefing said that "It's not been an easy negotiation with Mittal Steel. We have not reached a point where we have come to some agreement."

As per earlier reports Mittal Steel SA, which is 52% owned by Arcelor Mittal, has been accused by its customers of charging overly high prices because of its dominant market position. South Africa's Competition Tribunal in March ruled that Mittal SA contravened a section of the Competition Act by charging an excessive price for its flat steel products to the detriment of consumers. Mittal SA is appealing against the ruling.

South Africa Department of Trade and Industry has been involved in long running and so far fruitless talks with Mittal Steel SA following a 2004 agreement under which Mittal Steel agreed to come up with a different domestic pricing structure. The talks were launched over concerns that Mittal Steel SA uses an import parity pricing model. Mittal Steel SA has said that it has since then discarded the import parity pricing model.

ICG supports MSHA findings in Sago disaster

International Coal Group Inc has supported a report issued by the federal Mine Safety and Health Administration on the Sago mine accident that occurred on January 2nd 2006 killing 12 miners.

Mr Ben Hatfield president & CEO of International Coal Group said that "The MSHA report seems to be consistent with the findings of 3 earlier investigations of the Sago accident in concluding that the explosion was most likely caused by a lightning strike rather than human error. In 3 separate investigations, a diverse group of mining, electrical, combustion, and structural experts has now reached many of the same technical conclusions about the cause of the accident. We hope this report provides some of the answers that the families of the accident victims need and deserve."

According to International Coal Group, the report includes the following key findings by MSHA investigators
1. The explosion forces at Sago significantly exceeded the 20 pounds per square inch seal design strength required by MSHA at that time.
2. MSHA is reported to have confirmed that the explosion pressures exceeded 93 pounds per square inch.
3. A scrap segment of de energized pump cable was the likely conduit for electrical current from the lightning. For clarification, the company noted that the pump cable segment was located entirely within the sealed area and was apparently left behind when mining was completed.
4. The Self Contained Self Rescuers carried by the Sago miners had been activated and were producing oxygen.
5. Various regulatory violations cited over the course of the investigation had no connection with the accident and were not contributory in any fashion.
6. The company will continue to cooperate with any further investigation or testing requested by state or federal regulators.

Mr Hatfield added that "Over a year ago, we pledged to the Sago families and employees that we would learn lessons from this tragedy that will make all coal mines safer in years to come. Since that time, we have made good progress on this front, including actively participating in testing new wireless communication systems, implementing mine evacuation plans when approaching lightning could pose an ignition risk and leading industry efforts by being the first U.S. coal company to order emergency rescue shelters for its underground mines nationwide. We will continue to support safety innovations and cutting-edge technological advances that enhance coal mine safety and help to protect future generations of coal miners."

ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The Company has 11 active mining complexes, of which 10 are located in Northern and Central Appalachia, and one in Central Illinois.

European steel users call for continued imports from China & Asia

It is reported that European steel users have called on Brussels not to hit imports from China and other Asian countries with punitive duties.

Mr Adrian Harris Secretary General of Orgalime told Reuters that "We are not keen to see trade restrictions brought in at this time. We feel it is unjustified. If there was more steel available in Europe at competitive prices, the problem of Chinese imports would not be the same." Mr Harris said Orgalime was seeking to counter the push for more protection by steel companies, whose interests are often close to the hearts of European governments.

European steelmakers have said they are increasingly concerned about a surge of steel imports from China and may ask the European Commission to take measures to slow them. EU also warned China last month it will face a growing threat of trade penalties unless it curbs capacity expansion in steel and shipbuilding, according to EU diplomats.

Orgalime is European Engineering Industries Association representing the interests of the Mechanical, Electrical, Electronic, Metalworking & Metal Articles Industries, whose members include big engineering groups such as Siemens, ABB and Alcatel Lucent and a host of small metal working, machinery and electronics firms.

Nippon Steel to form new tie-up with Arcelor Mittal report

Nikkei without citing sources reported that Nippon Steel Corp is mulling a new tie up with Arcelor Mittal as early as possible. The report added that the agreement will be based on Nippon Steel's alliance with former Arcelor SA, under which Nippon provided auto steel sheet manufacturing technology to its European partner.

Japanese broadcaster NHK aired a program earlier this week saying that Nippon Steel and Arcelor Mittal are negotiating conditions for using the technology, one of Nippons strongest competitive points. NHK said that Arcelor Mittal, which is pushing into the high end, automotive sheet steel market in Brazil, wants to use the technology globally, while Nippon Steel wants to impose regional restrictions.

Nippon Steel and Arcelor Mittal have been exploring a new tie up following the acquisition of Arcelor by Mittal Steel Co last June. A Nippon Steel spokesman said We have been in talks with Arcelor Mittal on how to cooperate, including what to do with our joint ventures in China and in the US since last July.

Arcelor Mittal had earlier requested the use of Nippon Steel's automotive steel sheet production technology at its worldwide manufacturing bases, but Nippon Steel turned it down. As a result, the two are working toward a technology transfer agreement that limits the regions and the customers. The report adds that they are also studying an agreement to refrain from launching tender offers for the other while they remain partners.

Ford to close down Cleveland Casting by 2009

Ford Motor Co has announced that it will be closing down its foundry in Brook Park Ohio by 2009 and stop casting production at Ford facilities at Windsor & Ontario in Canada and Leamington in UK.

Cleveland Casting opened in 1952 and employs 1,100 hourly and 118 salaried workers. Most recently it produced cast iron components for engines for Ford F-Series Super Duty trucks, Ford E-Series vans and Ford Expedition and Lincoln Navigator SUVs.

Fords intention to idle Cleveland Casting is consistent with its move away from in house casting operations.

Corinths Q1 turnover up by 12% YoY

It is reported that Greece based Corinth Pipeworks Groups turnover reached EUR 95.6 million in Q1 of 2007 up by 12% YoY as compared to Q1 of 2006. Its EBITDA reached EUR 16.3 million as compared to EUR 8.9 million in 2006 Q1 which makes for 17.1% EBITDA margin. Earnings before tax amounted EUR 10.97 million up by 226% over 2006 while earnings after tax and minorities are reported at EUR 10.35 million as compared to EUR 2.34 million in Q1 of 2006.

According to Groups Management, the growth in terms of turnover and profitability is mainly attributed to the increased price levels of the projects in process as a result of the increased demand in the international energy markets for high quality steel pipes and the improvement of productivity and operating cost as a result of the systematic efforts of the three years restructuring plan aiming at rationalizing the company's production and commercial activities.

Chinese ferroalloy export prices

According to Chinas General Administration of Customs, the Floor Export Price practice on Chinese ferroalloy exports has been in force as of April 1st 2007.

Under this procedure, Chinese exporters are required to clear customs with export prices higher than the disincarnated floor prices and any acts or attempts to lower or hide customs clearance prices shall be prohibited. The move is intended to restrict exports of energy intensive and highly polluting products and contain China's swelling trade surplus.

The prices listed in the following table are provided by China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters and are subject to revision once a month.

Prices in USD per tonne unless mentioned

(Sourced from MySteel.net)

Outokumpu keen on stake in Talvivaara nickel mine

Reuters reported that Outokumpu is seriously considering using its option to buy a minority stake in nickel miner Talvivaara Project, the operational arm of Talvivaara Mining.

Mr Esa Lager CFO of Outokumpu said that "We are seriously considering using our option." But he declined to comment on the size of the possible stake.

Talvivaara Mining, a holding company for the mine, announced earlier on Thursday it plans to list its shares on the London Stock Exchange. Mr Pekka Pera CEO of Tavivaara said that the option is for clearly less than half of the unit.

Outokumpu sold the nickel deposit near Sotkamo, eastern Finland to Talvivaara Project in 2004. The mine's annual nickel production is forecast to be about 34,000 tonnes more than 2% of world supply.

Mr Kiernan to become chairman of Territory Resources Ltd

West Perth based iron ore explorer Territory Iron Ltds chairman Mr Michael Kiernan will commence work at the company in an executive capacity after Mr Doug Stewart MD advised he would retire from the company in late July 2007.

Mr Kiernan joined the company board in February following Crawley's initial investment of AUD 30 million, that Territory said at the time would fully fund the remaining costs of its Frances Creek Iron Ore project in the Northern Territory. He also currently serves as chairman of India Resources, Monarch Gold, Uran, PMA, Croesus Mining and Peel Exploration, as well as being a director of Matilda Minerals.

Territory Iron Ltd also announced plans to change its name, to Territory Resources Ltd, which it said would reflect the Company's future direction as a diverse carbon steel commodity supplier.

Crawley Resources Ltd, a JV between Mr Kiernan and Hong Kong's Noble Group Ltd, will become the company's major shareholder if it wins approval for a placement to the company at a meeting scheduled for May 30th 2007.

Rusina & European Nickel to fund feasibility study on Acoje nickel deposit in the Philippines

Australias Rusina Mining Ltd announced that it has signed an agreement with European Nickel plc to fund a feasibility study on Rusinas Acoje nickel deposit in the Philippines. European Nickel will pay EUR 1 million for 5,882,352 Rusina shares at AUD 0.40 each with an attached option at a strike price of AUD 0.50.

Rusina said the study was likely to take between two and three years and will include a trial heap leaching operation to determine whether tropical laterite ores from Acoje can be successfully processed to extract metal. The flexibility study is expected to take 2 year to 3 years to proceed.

Rusina said in a separate agreement Philippine civil contracting group DMCI Holdings Inc has agreed to become a partner in the project, which includes investment in a ferronickel plant on Semirara Island and subject to approval by its shareholders.

Chinese currency breaks 7.70 barrier

According to the Chinese Foreign Exchange Trading System China's currency yuan broke the 7.70 barrier for the first time on last Tuesday on the first trading day after the week long May Day holidays.

On Tuesday the CNY gained ground against the Japanese yen reaching CNY 6.4080 to JPY 100 up by 361 basis points from the last trading day's level.

The central parity rate of the CNY, stood at 7.6951 CNY to one US dollar on Tuesday gaining 104 basis points from the last trading day's reference rate of 7.7055 to the hard currency which is the 27th time since the beginning of the year that the yuan has set a new record climbing 1,136 basis points from CNY 7.8087 to one US dollar posted on the last business day of 2006.

Midwest Corp to raise USD 66.9 million for iron ore project development

West Perth based Midwest Corporation Ltd has recently announced plans to raise AUD 66.9 million through a placement to fund development of its iron ore projects. Midwest in a statement said that initially it will place 20 million shares at AUD 1.46 per share to raise AUD 29.2 million, to be followed by a one for seven non renounce able rights issue to all shareholders. The issue, of around 25.8 million shares at AUD 1.46 each raising around AUD 37.7 million.

Mr Bryan Oliver CEO of Midwest Corporation said that "This capital raising is another positive step in the implementation of our strategy to become a world class exporter of iron ore in order to achieve sustainable corporate growth and maximize long term shareholder wealth."

The funds from both the share placement and the rights issue will be used on the following projects:

1. Weld Range and Koolanooka Magnetite Studies Project
The Scoping Study for the 50:50 studies project with Sinosteel Corporation for the Weld Range Haematite and Koolanooka Magnetite projects was recently approved by the Midwest board. This project is now progressing with a pre feasibility study. The forecast expenditure for Midwest in relation to this JV over the next two years, which takes Midwest to the end of the project definitive feasibility study, has increased marginally to AUD 18 million. Midwest's contribution to the Weld Range Haematite project study is expected to be AUD 12.3 million. A decision will then be made by Midwest on whether to move the Weld Range Haematite project into an operational phase. Further drilling and feasibility studies will be required for the Koolanooka Magnetite project which have not yet been estimated and therefore not covered by the current capital raising.

2. Jack Hills Exploration and Studies Project
Midwest is planning to significantly increase the exploration activities at Jack Hills which is then expected to lead into a studies project to determine the viability of the Jack Hills project. An initial resource statement for Jack Hills is expected to be released during the second half of 2007 as a result of this exploration activity. Updates to the initial resource statement will be made as drill and assay results are incorporated into the geological models. The forecast expenditure on the Jack Hills exploration and studies project is AUD 14 million and the forecast time period for this project is beyond a two year horizon.

3. Hampton Hill / Midwest Exploration and Studies Project
Midwest has a JV with Hampton Hill Mining NL, whereby Midwest undertakes a drilling program and pre feasibility study in relation to tenements owned by Hampton Hill Mining NL in the Weld Range area in return for a 60% ownership stake in all iron ore in these tenements. Midwest has already met the minimum drilling requirements under the joint venture. The latest forecast expenditure for Midwest in relation to this joint venture over the next two years is AUD 11 million. A decision with then be made by Midwest on whether to move this project into an operational phase, possibly in conjunction with the Weld Range project.

4. Northern Infrastructure Studies Project
Midwest expects to be a founding developer and user of both the proposed new 600 kilometer railway from the Midwest Weld Range and Jack Hills projects to Oakajee and the proposed new port facility at Oakajee. Both of these infrastructure projects are critical to not only Midwest but also the State of Western Australia. The forecast expenditure for Midwest over the next two years is AUD 16 million in relation to a studies program for this infrastructure together with other important stakeholders in the Mid West region.

5. Koolanooka / Blue Hills Direct Shipping Operations Capital
The Minister for Planning and Infrastructure, the Hon Alannah MacTiernan, has requested that Midwest transfer its Koolanooka / Blue Hills DSO haulage operations from road to rail haulage by the end of September 2007. Midwest has been working towards a transition from road to rail for over 12 months which has included the purchase of 64 rail wagons from China at a cost of AUD 6 million. Midwest also needs to purchase some land to facilitate the building of a rail siding and together with the actual construction cost of this rail siding are forecast to require funds of USD 6 million. The company is also planning to increase this DSO project from the present 1 million tonnes per annum to 2 million tonnes per annum by 2009. This will require an additional 64 rail wagons at a similar cost of AUD 6 million giving a total one off capital requirement of AUD 18 million.

USs January zinc production up by 2% YoY

The US Geological Survey said that US recoverable zinc mine production in January was 59,300 metric tons up by 25% from 47,400 tons in December from 58,100 tons produced in January 2006.

The USGS said average daily zinc mine production in January was 1,913 tons, 25% higher than in December and 2% higher than January 2006.

Reported refined zinc consumption of 33,100 tons was 2% higher than December but 5% lower than the 34,800 tons in January 2006.

Yunnan Tin to sell CNY 650 million of bonds for funding expansion

It is reported that Kunming in Yunnan province based Yunnan Tin Co will sell CNY 650 million (USD 84 million) of bonds that can be converted into shares to expand mines and processing plants as demand Yunnan Tin Co gains. Yunnan Tin Co said that it will sell the 5 year bonds on May 14th 2007.

It said the funds will be used to develop two mines and three processing plants all in Yunnan and upgrade existing facilities.

Mr Zhang Fang an analyst at China Securities Co said from Beijing sadi that we are bullish on tin prices because of soaring Chinese demand. He said "Tin will be more widely used as a green metal as more countries are implementing stringent standards for environmental protection, and no substitute is found."

Tin demand in China, which accounts for a third of global use, is rising as companies use more metal to solder electronic parts. That demand, coupled with a crackdown on illegal mining in Indonesia has boosted the price 52% over 12 months.

Kachkanar GOK starts modernization of agglomerate complex

FIS reported that preparations for the reconstruction of the agglomerate making complex have started at Kachkanar GOK.

The reconstruction includes the upgrading of units and mechanisms of the agglomeration machine intended for thermal treatment of iron ore concentrate, and auxiliary equipment for raw feeding, mechanical processing and cooling of the finished agglomerate.

Vinashin raises USD 187 million to fund shipbuilding facilities

The Vietnam Shipbuilding Industry Group announced that it has successfully closed the largest ever corporate bonds issue by a Vietnamese company with a landmark 10 year VND 3 trillion (USD 187 million) fundraising to finance its ambitious shipbuilding projects.

Mr Pham Thanh Binh chairman and CEO at Vinashin said that the funds raised are earmarked for building two new shipbuilding facilities in Cam Ranh and Dung Quat expanding its plant in HCM City and developing supporting industries such as the manufacturing of shipbuilding steel and large sized ship engines.

Mr Binh said this bond is the third 10-year Vietnamese corporate bond, after the first issue by Electricity of Vietnam in November 2006.which not only provides Vinashin with an affordable source of funding but also increases its potential investors base.

Michael Luk head of cross-border debt capital markets at Deutsche Bank, said that while the interest in Vietnamese assets remains strong, the combination of Vinashin's credibility and Deutsche Bank's distribution capability has helped generate excess demand for the bond.

Mr Luk said "It clearly demonstrates Vinashin's ability to raise a substantial amount of money in the bond market adding that it is even larger than the average corporate bond issue in the region of around 43 million USD.

Mr Luk said Vinashin has also secured the lowest possible rate available of 9 % per annum-one and a half percentage points lower than Vinashin's last bond issue in January 2007. Vinashin was only company to gain a loan extension of USD 750 million from the Government which were the proceeds of Vietnam's debut sovereign bond issue in 2005.

Report on Chinas Non ferrous Industry

Rapid demand outstrips the supply of non ferrous industry due to which China will turn into a net importer of various non ferrous metals. China being largest producer and consumer of majority of non-ferrous metal remains the growth engine for global non ferrous industry.

RNCOS "China Non Ferrous Industry Analysis" report provides extensive research and objective analysis on Chinese non ferrous Industry. This report helps clients to analyze the opportunities critical to the success of non ferrous industry in China in future. Detailed data and analysis helps the potential investors navigate through the evolving market of non ferrous in China.

The report is based on information sourced from various sources including newspapers, trade journals, industry portals, government agencies, trade associations etc. Methods like Ratio Analysis, Historical Trend Analysis, Judgmental Forecasting and Cause and Effect Analysis have been used for accurate analysis of the given information.

If you are interested to know more about it, please visit www.steelguru.com/CNFIA/CNFIA_index.php or send a mail at research@steelguru.com