TATA Steel orders for Gimbal Top charging system for BF No C

TATA Steel, as a part of the project to rebuild BF No C at its Jamshedpur works in Jharkhand has ordered Siemens Group Industrial Solutions and Services Metals Technologies for supply of a new top charging system called Gimbal Top. The Gimbal technology proven in the arduous environment of Corex, Finex and direct reduction plants, is now to be installed in a blast furnace for the first time in the world.

The new Gimbal Top charging system utilizes a conical distribution chute which is supported by rings in a gimbal arrangement. This tilting chute is driven by hydraulic cylinders, operating through shafts, connecting rods and universal joints in order to drive the gimbal rings. Independent or combined operation of the cylinders enables the chute axis to be directed to any angle and along any desired path. This allows a precise material distribution to be achieved with the potential for an infinite number of charging patterns at varying speeds. Control of the distribution chute is by means of a proprietary control and feedback system which is fully integrated in the overall blast furnace charging software.

The scope of the contract also includes material hopper, valves and the associated Level 1 automation control for the furnace top.

Mr Geoff Wingrove director for Iron & Steel at Siemens said We are delighted that TATA Steel has become the first steel producer in the world to invest in the very latest furnace charging technology. The award of this contract marks a significant milestone in the development of our blast furnace technology portfolio.

Indias Steel Industry: Critical Details, Evolving Structure and Strategic Options

So much is talked about Indian economic growth and steel but what is the ground reality? Is India the Next China?

What is the real size of the Indian steel market? What are the forecasts of steel demand in India say, till about 2015?

What is building Indias steel dream and what has come on its way? What is happening to the steel projects?

How competitive is Indian steel? Will they remain where they are today globally, or will their relative position change? Where are the real advantages for Indian steel makers?

What is the big iron ore story? What can happen to iron ore policy?

What are the forecasts of demand and supply of iron ore and coal for the steel industry?

From a strategic point of view, where do the major steel producers lie today? What are the strategic options for them?

These issues, which have drawn attention of the industry, are addressed in a recently released study Indias Steel Industry: Critical Details, Evolving Structure and Strategic Options. The detailed study is a product of extensive and in depth analysis with incredible amount of time spent to put the numbers in perspective by a well known Indian steel expert.

The study critically looks at the current situation in the industry, potential of the steel market growth in the medium term, growth plans of the individual major companies, demand and supply issues related to raw materials like coal and iron ore, competitive positioning of steel production in the country, socio economic and political factors which may have direct and indirect impact on the growth dreams of the Indian steel makers etc. among a large number of other relevant issues of strategic importance.

This study is for those who are looking for business opportunities in the Indian steel landscape from the point of view of investment in capacity building, funding new projects, trading , investment in related logistics and infrastructure, global procurement and supply of raw materials.

If you are interested to know more about it please visit www.steelguru.com/Indian_Steel/Indian_Steel.php or send a mail to editor@steelguru.com

Merger of MMTC, STC and PEC being examined

It is reported that a consultant firm was engaged to carry out a study to assess the role of MMTC Ltd, STC Ltd and PEC Ltd in the liberalized Indian economy and to recommend the business model and the processes these organizations should adopt and the structural changes, if any, required to adopt the recommended business model and processes for their long term sustainability and growth.

The consultant firm has, among others measures, recommended the merger of these organizations.

Mr Jairam Ramesh minister of state for commerce informed the Lok Sabha There is no decision of the Government as yet on the issue of merger of these organizations. But MMTC, STC and PEC have been asked by the government to consult the employees for their feedback on the recommendations of the consultant firm.

Dr BN Singh to quit as JMD & CEO of JSW Steel

JSW Steel Ltd announced that Dr B N Singh joint MD & CEO of JSW Steel will be prematurely superannuating as a director and whole time director with effect from June 1st 2007 and thereafter he will be acting as advisor for the company operating from the company's Delhi office.

Orissa gets coal linkage for 10,200MW power plants

It is reported that union ministry of coal has sanctioned coal linkages and allotted coal blocks to support generation of additional 10,200 MW power in Orissa in view of its growing needs of power required for rapid industrialization and economic growth.

Dr Dasari Narayana Rao minister of state for coal told Mr Navin Patnaik CM of Orissa that his Ministry has sanctioned long term linkages for new capacity of 3000 MW. He assured all assistance to the State for augmenting coal supply for meeting their growing requirements for industrialization and economic development.

The list includes
1. 2000 MW for power plant to be set up by NLC
2. 500 MW for power plant of Navbharat Power Pvt Ltd
3. 250 MW for power plant of KVK Nilachal Power Pvt Ltd
4. 250 MW for power plant of Jindal Photo Ltd
5. 3200 MW for Darlipalli thermal plant of NTPC
6. 4000 MW for ultra mega power project (Meenakshi, Dipside of Meenakshi and Meenakshi-B coal blocks)

Dr Rao added that his ministry is already supplying coal or has decided to make coal available to support about 15,000 MW power generations in Orissa. He said that 22 million tonnes of coal is being supplied to power utilities of OPGENCO & NTPC in the State to support generation of about 5,000 MW of power. Of this, 18 million metric tonnes coal is being supplied for two thermal power plants of NTPC at Talcher and about 3 million tonnes to OPGENCO.

Indian imports of thermal coal from South Africa to increase

Reuter reported that India is expecting to double its South African coal imports during 2007 to at least 6 million tonne from 3 million in 2006 due to higher demand and a halt in exports of coal from China.

The report cites some Indian coal traders and South African suppliers as saying that they expected shipments to continue to increase for at least the next few years, driven by demand from cement and sponge iron makers, who previously used Chinese coal.

Some of the impact of high Indian demand should be offset by reduced consumption by European utilities in the third and fourth quarters of this year as many of them are struggling to use up high stocks left over from an unusually mild winter.

Although nearly all of South Africa's exports of 67 million tonnes goes to the European market through long term contracts, Indian demand is a crucial source of spot demand. And off late it has kept FOB Richards Bay prices supported at USD 48 to USD50 a tonne.

Chinese suppliers halted exports to India in January because they achieved higher prices domestically.

TATA Power may buy coal assets in Australia Report

HT recently reported that Indian private major TATA Power is in talks with Australian firms to acquire coal mines in Queensland and New South Wales in Australia. The report cited sources close to the development as saying that TATA Power is talking to Rio Tinto and some other coal mining firms for buying a majority stake in some of the coal blocks and could spend USD 500 million to USD 600 million for the assets.

TATA Power is looking at acquisitions which will meet its captive coal requirements as it is planning to increase its capacity by 5 times from the present 2,400 MW.

TATA Power has signed definitive agreements to purchase 30% equity stakes in two major Indonesian thermal coal producers PT Kaltim Prima Coal and PT Arutmin Indonesia and a related trading company owned by PT Bumi Resources Tbkin March end. As part of the purchase, TPCL has signed an off take agreement with KPC which entitles it to purchase about 10 million tonnes of coal per annum.

BHEL to increase its capacity to 15,000MW

It is reported that Bharat Heavy Electricals Ltd has recently announced that it will spend INR 3,200 crore in the 11th Five Year Plan period to increase manufacturing capacity from the current 6,000 MW to 15,000 MW per annum. It would be spending INR 1,200 crore to augment its capacity to 10,000 MW by end of 2007.

BHEL in a statement said that it would be fully able to meet its investment requirements and meet funding requirements through internal accruals and resources raised from the market.

BHEL said that the enhanced capacity together with super critical technology and skilled workforce would further strengthen the company's position in the domestic market. BHEL is also focusing on addition of facilities for various products in manufacturing units and for construction of tools and equipments for erection and commissioning services at project sites.

Elecon to supply wagon tipplers to ACC & GACL

It is reported that Indias largest industrial gears and transmission products manufacturer Elecon Engineering Company Limited has signed a contract with ACC and Gujarat Ambuja Cement Limited under which Elecon Engineering will supply 5 sets of broad gauge and meter gauge wagon tipplers along with side arm charger and apron feeder worth INR 24.40 crores to ACC and Ambuja Cement.

The wagon tipplers are designed for unloading broad gauge open rail wagons while the side arm Charger will be used for hauling rake of wagons, placement of wagons on tippler table and evacuation of empty wagons from tippler table. The apron feeder is rugged and dependable and is designed to receive and control the flow of material from bins and hoppers.

Mr Prayasvin Patel CMD of Elecon Engineering said that We are pleased to have procured a prestigious order worth INR 24.40 crores from ACC, India's foremost manufacturer of cement and concrete and Gujarat Ambuja Cement Limited

Recently, Elecon Engineering bagged an INR 237 crore order from NTPC Limited for supply and installation of Coal Handling Plant Package complete on turnkey basis for their NCTPP, Dadri Stage-II Thermal Power Project and the Indian Navy to supply the main propulsion gearboxes for India's first indigenous aircraft carrier.

Mormugao Port sets new iron ore loading record

It is reported that Mormugao Port has established a new record in handling iron ore fines on May 6th 2007 when a quantity of 21,125 tonnes was loaded on to the vessel MV Talisman under the new scheme promoted by the port for loading at the outer anchorage. The vessel sailed off on May 9th 2007 at 15.55 hrs with a total quantity of 54,050 tonnes of iron ore fines.

The vessel was loaded at the anchorage by Mormugao Port Trusts crane and stevedored by Agencia Commercial Maritima while Pangea Shipping of Mumbai and Elesbao Pereira & Sons were the agents. Bandodkar Group of Companiess Orient (Goa) Pvt Ltd was the shipper for this vessel.

GMDC to foray into thermal power sector

BL reported that Gujarat Mineral Development Corporation, which has mainly been into coal mining so far and now eyeing sapphire mining at Doda in Jammu and Kashmir, is all set to enter thermal power generation sector in JV mode. GMDC will invest around INR 25,000 core to become a 5,000 MW capacity generator in association with both private players and state public sector units.

Mr CJ Jose CMD of GMDC told Business Line that it is also looking at various coalfields outside Gujarat either for coal mining alone or with coal based power plants.

Mr Jose said that GMDC had also applied to the centre for 10 other blocks with coal based thermal power generation plans and another 15 blocks for coal mining rights only in Orissa, Chhattisgarh and Jharkhand, besides other states. He added that for some of these power generation projects, it has signed MoUs with major players such as Torrent, KSK Energy Ventures and others.

GMDC had recently got a coal block at Jaynagar in Jharkhand but had requested that state government to give another as there was some dispute due to the place being used for dumping fly ash by the state electricity board and the presence of brick manufacturing units nearby.

GMDC expects its turnover to increase from INR 600 crore in 2006-07 to INR 1,000 crore in 2007-08, with the additional revenues of more than INR 300 crore from its 250 MW plant at Akrimota.

Finance Minister P Chidambaram visits TATA installations

Mr P Chidambaram union finance minister visited to the steel city Jamshedpur to participate in a TATA Steel sponsored program on last Saturday.

Mr Chidambaram was accompanied by Mr B Muthuraman MD of TATA Steel and other TATA Steel officials from Mumbai. He made a whirlwind tour of several vital installations and places of interests including the centre for excellence, the tribal culture centre and TATA Steel works.

PGCIL and NHPC to have independent directors before IPO

Times News Network reported that Power Grid Corp and National Hydroelectric Power Corps IPO offerings may face hiccups following objections by Securities and Exchange Board of India over non compliance of clause 49 of listing norms under which companies are required to appoint independent directors on their boards.

The report cites some sources as saying that SEBI is unlikely to clear their IPO applications unless the companies comply with the requirements. Government sources said that SEBI has already indicated that it was not in favor of clearing the IPOs without the companies appointing independent directors.

As per report the names recommended for appointment as independent directors by the department of public sector enterprises had been approved by the power minister and sent to the appointments committee of cabinet 2 months ago but are yet to be cleared. As per report, the appointments are likely to be cleared anytime and the companies are scheduled to have a preliminary meeting with SEBI early next week.

Both NHPC and PGCIL, which have submitted their draft red herring prospectuses, are planning to come out with IPOs by June 2007.

Power Grid proposes to issue 10% fresh equity and the government will piggyback to offload 5% stake. It has a paid up capital of INR 3,800 crore and the public offer of 15% would raise at least INR 570 crore. NHPC is planning a public issue of 1,676,049,945 equity shares of INR 10 each for cash at a price to be decided through 100% book building process, which will constitute nearly 13.64% of the fully diluted post issue capital of NHPC.

Arcelor Mittal reports Q107 results

Mittal Steel Company NV announced results for the three months ended March 31st 2007 on the basis of IFRS. As per release, the quarterly highlights include
1. Strong results above guidance
2. Q107 EBITDA of USD 4.3 billion, higher than guidance due to accelerated synergy generation
3. USD 2.7 billion cash provided by operating activities in Q107 and strong net debt reduction in Q107 of USD 1.7 billion over Q406
4. Integration going well, on track to deliver synergies as planned. Synergies of USD 573 million captured

Shipments in million tonnes
Others in million USD

Some inter company shipments are not eliminated.

Mr LN Mittal president & CEO of Arcelor Mittal said Arcelor Mittal has delivered a strong set of numbers for the first quarter with EBITDA of USD4.3 billion, higher than guidance. These results reflect the strength of Arcelor Mittals global business model and the continuing strong demand for steel generally. The benefits of combining Arcelor and Mittal Steel continue to outperform our expectations and we are on track to deliver synergies as planned.

Mr Mittal added that Looking forward, we expect EBITDA in the second quarter to be higher than in the first, largely due to improved performance in Flat Carbon Americas, Long Carbon and AACIS. Our unique geographic and product diversification ideally positions us to continue to deliver consistent results against the current positive underlying dynamics.

Sandvik sells 11.6% stake in OSTP to Outokumpu Oyj

It is reported that Sandvik AB has reached an agreement to sell its minority 11.6% stake in Outokumpu Stainless Tubular Products AB to Finland's Outokumpu Oyj for EUR 21.5 million. The divestment is expected to be completed during the second quarter of 2007.

Full ownership in OSTP enables Outokumpu to develop the business further in line with its strategy to increase the share of the more value added special products. The EUR 21.5 million purchase price will be on top of the Group's targeted EUR 175 million CAPEX frame for 2007.

Outokumpus OSTP business unit is one of the worlds largest producers of welded stainless steel tubular products, with operations in Sweden, Finland, Estonia, Belgium, France, Canada and the US. The annual production capacity is some 1 million tonnes. OSTP has 1,300 employees and had sales of some EUR 480 million in 2006.

Sandvik said that the divestment was in line with its strategy to focus on its core business areas. Mr Peter Gossas president of Sandvik Materials Technology said that The divestment of Sandviks share in OSTP is in line with our strategy to develop and focus on the defined core business for Sandvik Materials Technology.

Outokumpu is an international stainless steel company that operates in some 30 countries and employs 8,000 people. In 2006 the Groups sales were some EUR 6 billion, of which 95% was generated outside of Finland. The Groups headquarter is located at Espoo in Finland. The parent company, Outokumpu Oyj, has been listed on the Helsinki stock exchange since 1988.

Xstrata raises offer for LionOre to outbid Norilsk

Xstrata plc and LionOre Mining International Ltd announced that they have amended the terms of their previously announced support agreement in accordance with which Xstrata made an all cash offer to acquire all of the issued and outstanding shares of LionOre by increasing the consideration payable under the Offer from CAD 18.5 to CAD 25 in cash per LionOre share. The expiry time for the increased Xstrata Offer is midnight of Vancouver time on Friday May 25th 2007.

Xstrata's increased offer price represents an increase of approximately 35.1% over its original offer price and a premium of 16.3% over the CAD 21.5 price per share offered by OJSC MMC Norilsk Nickel in its unsolicited competing bid for LionOre. The increased Xstrata Offer values the total share capital of LionOre at approximately CAD 6.2 billion (USD 5.6 billion) and provides CAD 872 million more cash to the LionOre shareholders than the Norilsk offer. Xstrata expects to mail a formal notice of variation to all LionOre shareholders today.

Under the terms of the amending agreement, LionOre has agreed to pay a termination payment in the amount of CAD 305 million, payable to Xstrata if a competing offer is recommended by LionOre and in certain other events.

The Board of Directors of LionOre, after consultation with its financial and legal advisors, has unanimously approved entering into the amending agreement and recommends that LionOre shareholders tender to the increased Offer. JPMorgan, acting as financial advisor to the LionOre Board of Directors, has provided an opinion that the increased Offer is fair, from a financial point of view, to LionOre shareholders. The Board of Directors of LionOre has also determined that the Norilsk offer is no longer a superior proposal for purposes of the support agreement between Xstrata and LionOre and accordingly recommends that LionOre shareholders reject the Norilsk offer.

Anglo American inks contract for 49% stake in MMX Minas-Rio iron ore project

Anglo American plc announced that it has signed a contract with MMX Minerao e Metalicos SA, as announced on April 23rd 2007, under which Anglo American will acquire a 49% interest in MMX Minas Rio for an economic value and effective price of USD 1.15 billion.

Ms Cynthia Carroll CEO of Anglo American plc said that I am delighted that MMX and Anglo American will be driving forward this exciting iron ore project. We have great confidence in Eike Batista and his management team and look forward to a long and rewarding partnership. Iron ore is core to Anglo American's future growth strategy and MMX Minas Rio, together with the planned Kumba expansions, will add significantly to the Group's iron ore production, resulting in consolidated iron ore production in excess of 100 million tonnes per annum in the next five years.

Ms Cynthia Carroll added that Anglo American has been operating in Brazil for many years and these major new investments indicate our firm commitment to remaining a responsible and successful operator in the country for many years to come.

This acquisition is Anglo American's 2nd major investment in Brazil in the last 6 months after it successfully acquired Barro Alto nickel project in December 2006 at an estimated cost of USD 1.2 billion. Barro Alto will produce an average of 36,000 tonnes of nickel per year over a minimum 26 year mine life and will contribute significantly to a potential doubling of the Group's nickel production to around 90,000 tonnes per annum by 2011.

Salzgitters Q1 net profit surges

Salzgitter AG announced that pretax profit of EUR 325.4 million for January to March 2007 up by 63.5% YoY as compared to EUR 198.9 million in Q1 of 2006. Its Q1 sales reached EUR 2.381 billion up by 20% YoY as compared to EUR 1.983 billion in Q1 of 2006 and net profit climbed to EUR 196.6 million up by 450% YoY as compared to EUR 35.7 million in Q1 of 2006. ROCE stood at 30.8 % as against 8.8% in Q1 of 2006.

The largest contributions were made by the Trading and Steel divisions. Profit before tax of EUR 325.4 million, generated exclusively by operations, substantially exceeded the former record figure for a quarter, without taking account of special effects, which was generated in the final quarter of the financial year 2006 when a pre tax profit of EUR 286.3 million was recorded.

A high shipment volume and price increases, both in annual contracts and in the spot market business, served to substantially raise the total and external sales of the Steel Division 21 % to EUR 1.01 billion as against EUR 0.84 billion in Q1 of 2006. External sales, which rose by 19 %, experienced similar dynamics with EUR 723 million in Q1 of 2007 as against EUR 607 million in Q1 of 2006. Boosted by the stronger sections business and the highly gratifying profit generated by flat steel and plate activities, pre tax profit reached a new record high of EUR 181.5 million as against EUR 104.4 million in Q1 of 2006.

The favorable business environment for tubes products also held steady in the reporting period. A marginal increase in shipping volumes, in conjunction with a firmer selling price trend, delivered very presentable results. The external sales of the Tubes Division climbed by 8% YoY to EUR 428 million as against EUR 398 million in Q1 of 2006. Owing to the substantial improvement in the results of all product segments, profit before tax, which came to EUR 65.5 million, very clearly exceeded the previous years comparable result of EUR 31.2 million.

Driven by the booming demand for steel, the first quarter of 2007 ran a decidedly successful course for the Trading Division. Shipments and sales remained at the excellent level of the third and fourth quarter in 2006. Domestic steel stockholders in particular benefited from the high demand for steel and a firm price trend. As against the first quarter of 2006 EUR 0.87 billion, the external sales of the Trading Division advanced 24% YoY to EUR 1.07 billion in the first quarter of 2007. Pre tax profit of EUR 64.8 million doubled as against EUR 30.1 million in Q1 of 2006.

Salzgitter said that it expects full year pretax profit to reach about EUR 1 billion down from 2006's EUR 1.85 billion due to the lack of comparable one time gains.

South Korea starts its first molybdenum smelter

The Korea Herald has reported that South Korea has opened its first molybdenum smelter to cut costs and make export to Japan and Taiwan amid surging prices of molybdenum.

Korea Resources Corp said that the smelter located in Yeosu, 455 kilometers south of Seoul, will have initial production capacity of 6,000 tonnes a year, making it the world's 7th largest and may double its capacity starting next year. The smelter plans to post sales of KRW 200 billion in 2008 and double that figure to KRW 400 billion by 2010.

The smelter a JV between Korea Resources and KTC Korea Co a metals trader will initially receive 670 tons of molybdenum ore a year from a mine in Uljin 330 kilometers southeast of Seoul Korea

The smelter will help South Korea reduce dependence on refined imports from China and Chile and tap rising demand from steel mills. It will supply about half its output to POSCO.

Molybdenum accounts for 1% of the volume of the raw materials used to make stainless steel and 20% of the value because of its price. Global molybdenum prices have increased 25% in the past year.

China, home to the world's biggest molybdenum deposits, will soon issue licenses and impose quotas on exports of the commodity. It imposed a 10% export tax on ferromolybdenum from November 2006, after canceling an export tax rebate from January 2005. It also set thresholds for molybdenum plant expansions in January.

ThyssenKrupp sees lower order intake for SS

German steel giant ThyssenKrupp announced that order flow for its stainless products is reducing, which together with, still rising alloy input costs nickel in particular is putting downward pressure on base prices of stainless steel.

Although end user demand for stainless products remained strong during the Q1 of 2007 order intake at the start of January was significantly lower than the super high prior year levels due to increased inventory levels at distributors and service centers. Meanwhile the European market continued to see strong imports from Asian producers while in the North American market demand for stainless cold-rolled weakened slightly. The result in both cases was a fall in the base price for stainless in the middle of the quarter and although prices recovered a little bit towards the end of the period prices was still at an unsatisfactory level.

ThyssenKrupp stainless division shipped 650,700 tonnes of stainless products in Q1 of 2007 down by 7% YoY. It gave no indication of likely production levels in the coming period but its comments echo very closely those of its Finnish counterpart Outokumpu which said it was taking a 10% cut in production of standard grade forms of stainless in the Q2.

ThyssenKrupp said it expected demand from European end users to remain strong through 2007 but to decline slightly in the US. It said that in China growth in capacities will continue to outstrip demand resulting in import pressure in other parts of the world. It said This import pressure and the already high inventory levels at distributors and service centers will further impact orders at producers. Lower order intake and high alloy surcharges are depressing base prices for stainless steel in Europe and the North America.

Klkner & Cos Q1 sales turnover up by 17.1% YoY

The multi metal distribution company Klkner & Co AG has concludes the January to March period of 2007 on the growth track of the previous year. During this period its earnings were further improved YoY.

In January to March period 2007, Klkner & Co with sales volume exceeding 1.6 million tonnes achieved a figure 1.8% YoY higher than the good result of the previous year despite the closure of 3 locations in northern Germany last year. The Europe segment posted a volume increase of 5.9%, while in North America the volume declined by 9.0%, primarily due to the poor situation in the Canadian automotive industry.

In the first quarter, supported by a higher price level, Group sales moved up to over EUR1.5 billion up by 17.1% YoY. In the first quarter, 86.4% of Group sales were generated in the Europe segment, 13.6% in North America.

Klkner & Co Groups EBITDA at the March end has totaled EUR 92.1 million up YoY by approximately EUR 12.8 million. Europe generated an EBITDA of EUR 85.3 million, with EUR 14.0 million being generated in the North America segment. In the first quarter of 2007, EBIT totaled EUR 78.5 million up by 21.5% as against EUR 64.6 million in the first quarter of 2006. Earnings after tax were increased by approximately 35% to EUR 68.1 million.

Dr Thomas Ludwig chairman of the Klkner & Co AG Board of Management said that "We started into the new year in an extraordinarily positive way in all respects, thus continuing down the success track of 2006. The good earnings situation in the first quarter of 2007 reinforces us in a vigorous continuation of implementing our strategy ongoing optimization of the existing business, organic growth and acquisitions. With the acquisition of six companies with total sales exceeding EUR 400 million in the first five months of the year, we are confident that we will achieve our objective of buying up 10 to 12 small to medium sized distributors during 2007."

Founded by Mr Peter Klkner more than 100 years ago, Klkner & Co is the largest producer independent steel and metal distributor in the European and North American markets combined. The core business of the Klkner & Co group is the storage and distribution of steel and non ferrous metals. About 200,000 active customers are supplied through approximately 240 distribution locations in 14 countries in Europe and North America.

China remains as net coal importer in April 2007

According to data released by the General Administration of Customs that China's coal imports went up by 27.1% YoY to 4.92 million tonnes in April 2007, where coal exports in April fell by 18.5% YoY to 4.46 million tonnes.

China's coal exports for January to April 2007 totaled 15.97 million tons down by 28.6% YoY where as imports went up by 50.5% YoY to 19.22 millions.

China the world's top coal producer became a neat coal importer the first time in January 2007. Between January and April, it was a net exporter only in February. April was the fifth straight month in which China's exports had fallen from a year ago. If the trend holds, China may become a net coal importer for the full year.

Evraz Group announces Q1 results for Russian units as per RAS

Evraz Group SA announced that its major Russian operating subsidiaries have filed financial results with the Federal Financial Markets Service of the Russian Federation for the January to March 2007 in accordance with Russian accounting standards. Following is the RAS financial results for major Subsidiaries in January to March 2007

OAO Nizhny Tagil Iron and Steel Plant (NTMK)

In million RUB

OAO West Siberian Iron and Steel Plant (Zapsib)

In million RUB

OAO Kachkanarsky Mining and Processing Integrated Works (KGOK)

In million RUB

OAO Vysokogorsky Mining and Processing Integrated Works (VGOK)

In million RUB

Evraz Group SA is one of Russias largest vertically integrated steel and mining businesses. Evraz Group produced 16.1 million tonnes of crude steel in 2006. Evraz Groups principal assets include 3 of the leading steel plants in Russia namely Nizhny Tagil in the Urals region and West Siberian and Novokuznetsk in Siberia as well as Palini Bertoli in Italy, Vitkovice Steel in the Czech Republic, and Evraz Oregon Steel Mills headquartered in the USA.

Ukraine to get higher steel export quota to EU

Ukrainian Journal reported that Ukraine and the European Union will probably sign a new steel agreement next month allowing Ukrainian companies to increase exports of steel to the EU in 2007.

According to the report, the agreement will increase quota for Ukrainian steel exports to the EU to 1.32 million tonnes in 2007 from 1.005 million tonnes in 2006.

Norilsks Q1 revenue up by 59% YoY

Russian Norilsk Nickel announced that according to Russian Accounting Standards its revenue is up by 59% YoY to 69.6 billion (USD 2.7 billion) in Q1 of 2007. Norlisk said that among other things, a sales rise and ruble dollar fluctuations pushed the figure up.

Norilsk Nickel earlier said that its RAS net profit in the Q1 of 2007 amounted to RUB 34.7 billion (USD 1.3 billion) as compared to a loss of RUB 22.6 billion (USD 875.63 million) in Q1 of 2006.

Norilsk Nickel is one of the world's top producers of precious and non-ferrous metals. It accounts for over 20% of the global nickel output, more than 10% of cobalt and 3% of copper.

Rio declines to comment on report of hiring Morgan Stanley

Bloomberg has reported that Rio Tinto Group declined to confirm a report it may have hired Morgan Stanley to help defend against possible unsolicited takeover bids.

Rio Tinto said it did not receive an approach from Melbourne-based BHP Billiton or other companies.

Mr Ian Head Melbourne based spokesman for Rio Tinto said we do not comment on rumors or speculation and declined to comment on a report in the same newspaper that Rio Tinto may be considering a bid for aluminum producer Alcan Inc which is subject of a USD 26.9 billion takeover offer from rival Alcan Inc.

Merrill Lynch & Co said that BHP Billiton may be an attractive takeover target for private equity companies and Citigroup Inc said on May 4th 2007 that BHP Billiton could afford a bid for Rio Tinto.

Russian iron ore production in 4 months up by 2.8% YoY

Rusmet.ru reported that Russian iron ore production increased by 2.8% YoY and reached 33.9 million tonnes in the first four months of 2007.

Driving power of such a growth, almost 1 million tonnes, is constantly increasing export volumes of iron ore as domestic supply volumes are at the same levels as it were in the previous year.

The report added that that the structure of supplies has changed as Russian mining companies have increased iron ore deliveries in the form of steel pellets.

Mincor to acquire Otter Juan nickel mine from GMM

It is reported that Mincor Resources NL is poised to secure its 5th operating mine in the Kambalda region of Western Australia through the acquisition of a private company for USD 68.5 million. Mincor will acquire private outfit Goldfields Mine Managemen Pty Ltd which holds the operating Otter Juan nickel mine and the historic Durkin and McMahon mines in the Kambalda region near Kalgoorlie. The transaction is expected to be completed by July 2007.

Mincor said the close proximity of the Otter Juan McMahon and Durkin mines would allow the three projects to run as a single operation and the acquisition would confirm its position as the largest nickel producer in the Kambalda region and the third largest nickel sulfide producer in Australia.

Mr David Moore Mincor MD of Mincor said that the transaction would consolidate the company's position on the northern Kambalda Dome and provide immediate financial returns. He said "We see the Otter Juan, McMahon and Durkin projects as forming a major new production and exploration centre for Mincor putting within reach our target of 20,000 tonnes per annum of sustainable nickel metal production.

Mr Moore added that "Not only does it provide strong and early financial returns, but it consolidates our hold on the northern Kambalda Dome and will generate strong synergies with our proposed mine developments in that area."

Mincor operates four nickel mines in the Kambalda region and produces about 15,000 tonnes of nickel annually.

Dongkuk to modernize its plate mill

South Korean Dongkuk Steel Mill Co Ltd announced that it has awarded a contract to SMS Demag to modernize the mill train of the No 2 heavy plate mill. The new equipment units will go into operation in early 2009.

Under the contract SMS Demag will equip an existing heavy plate mill stand with the CVC plus technology. By installing the CVC plus technology package in the finishing stand, Dongkuk Steel will enhance the product quality and increase the production capacity.

The scope of supply includes the installation of more powerful hydraulic roll gap adjusting systems in the finishing stand and of a new Level 2 automation system as well as technological control systems including pass schedule calculation for the entire mill line. For work roll shifting, new spade end spindles with integrated length compensation will be fitted. A rolling force increase from 80 MN to 90 MN is achieved by installing more powerful hydraulic roll gap adjusting systems.

The combination of CVC plus with a higher rolling force allows greater pass reductions, which is why fewer passes are required and productivity rises. In addition, CVC plus makes flexible production possible due to the free organization of a rolling campaign.

The 2 stand heavy plate mill of Dongkuk Steel was started up in 1997. SMS Demag supplied the descaler, hot plate leveler, two cooling beds and five shears.

INSG forecasts 70,000 tonnes nickel surplus in 2007

The International Nickel Study Group has forecast the refined nickel market to record a production consumption surplus of up to 70,000 tonnes in 2007 and the primary metal production to grow to 1.48 million tonnes this year from 1.36 million in 2006. Consumption is seen rising to 1.41 million tonnes in 2007 from 1.39 million tonnes in 2006.

According to one analysts estimates its projection on production does not make any allowance for unforeseen production losses, which have been significant in the last couple of years amounting to 40,000 tonnes 50,000 tonnes per year.

MMX Minas Rio gets construction license for A Port in Brazil

MMX Minerao e Meticos SA announced that its subsidiary Minerao Pesquisa Comcio Ltd has received Construction License number FE012725 from FEEMA for the development of multi purpose private port terminal A Port to be located in the municipality of S Jo da Barra in the Rio de Janeiro State of Brazil.

The A Port has been designed for the export of the iron ore produced by the MMX Minas-Rio Integrated System. According to the construction license, MMX Minas-Rio may initiate the construction of the port terminal as per the plans already disclosed to the market.

Tokyo Steel orders a continuous pickling line, laser welder and ARP

Japans Tokyo Steel Mfg Co Ltd announced that it has ordered for a continuous pickling line, a laser welding machine and an acid regeneration plant for its works in Tahara from SMS Demag. Commissioning of all facilities is scheduled for February 2010.

The plant will pickle and oil hot strip with widths of 780mm to 1,630mm and with gages of 1.5 mm to 6 mm. 1.8 million tonnes will be produced each year at a maximum process speed of 280 meter per minute.

SMS Demag is supplying the complete mechanical system including the laser stripwelding machine and the acid regeneration plant. The pickling process is implemented with heat recovery and acid regeneration equipment from a single source, thus achieving maximum efficiency at extremely low consumption values. Tokyo Steel would like SMS Demag to provide a double exit and a cross-cut shear in the exit section. This will allow each coil to be divided without production losses.

The acid regeneration plant will function according to the spray roaster process. The laser welding machine includes a strip butt welding machine, integrated into the design of the entry section, which welds together the strip ends by means of a laser beam. The modern entry design enables rollable weld seams to be produced, in high quality and with minimal non productive times in the entry section.

Port quotas to hit Australian coal exports

Cumnock Coal expects the logistical constraints at Australian ports to restrict coal export growth over the next few years.

At its annual general meeting, Cumnock's management also said the coal producer is progressing plans to extend mining beyond 2009 on the current lease area.

Queuing issues at the ports have resulted in the reintroduction of a capacity balancing system and have led many coal producers to lower sales and production guidance.

Kazakhstans steel output in 4 months up by 13.4% YoY

Kazakhstans national Statistics Agency reported that during January to April 2007 Kazakhstan boosted production of crude steel to 1.508 million tonnes up by 13.4% YoY.

Output of flat steel products rose by 17.5% YoY to 1.093 million tonnes, including 68,681 tonnes of tin plate and tin plated sheet up by 28.8% YoY and 193,069 tonnes of galvanized steel an increase of 0.6% YoY.

Kazakhstans production of ferroalloy also rose by 2.9% YoY to 560,044 tonnes. But its production of coal reduced by 4.7% YoY in the four months to 30.285 million tonnes.

Ukraine asks Russia to build Bohorodchany to Uzhgorod gas pipeline

Journal Staff Reported that Ukrainian government has sent a letter to the Russian prime minister suggesting continuing the joint project to build the Bohorodchany to Uzhgorod gas pipeline.

Mr Yuriy Boyko Fuel and Energy Minister of Ukrain said that "In April the Ukrainian government sent a letter to the Russian premier proposing to implement the agreement of 2002 on the joint construction of a 200 kilometer section of the Bohorodchany to Uzhgorod."

Nippon Steel to invest in Brazil

Nikkei, without citing sources reported that Nippon Steel Corp's Brazilian unit will spend about JPY 300 billion to build a new blast furnace to meet growing demand for automotive steel sheet.

Brazil's largest steelmaker, Usinas Siderurgicas de Minas Gerais SA plans to construct the facility by 2010 at an existing steelworks in the state of Minas Gerais, boosting annual production of crude steel by 25% to 11.1 million tonnes. Usiminas is expected to finance the project on its own.

The report added that Nippon Steel will dispatch engineers in July 2007 to oversee construction and operation of the site, including the furnace and processing facilities. The two firms are also considering a separate furnace capable of turning out 3 million tons a year.

Ternium to meet Venezuelan VP

Reuters reported that Ternium Sidor steelmaker executives will meet on Wednesday with Mr JosVicente vice president of Venezuela at the request of the government.

Mr Luiz Betnaza corporate director of Argentine conglomerate Techint which controls Ternium said in a statement that "The idea is to continue conversations about supplying steel to the local market, in line with the country's growth and the strengthening of its industry."

Venezuela has threatened to take over the Ternium Sidor if it does not sell more steel to the local market.

Russia approves merger of Transneft and Transnefteprodukt.

RIA Novosti reported that Mr Mikhail Fradkov PM of Russia has signed a resolution on merging the state controlled crude pipeline operator Transneft with the state run oil product transit company Transnefteprodukt.

As per report, under the resolution, the Russian government has contributed 100% of Transnefteprodukt's stock to Transneft's charter capital as payment for the pipeline monopoly's newly issued shares.

After the merger, which is expected to take five months, the government will hold at least 75% plus one share in the united company.

Russian analysts believe that the merger is likely to raise the companies efficiency and cut independent producers expenses on oil and petroleum product transportation.