May, 27 2007
BEMLs mining JV launched
BL reported that Bharat Earth Movers Ltd, Midwest Granite Pvt Ltd and Sumber Mitra Jaya of Indonesia have formed a JV company. While BEML, Bangalore, will hold an equity of 45%, the Hyderabad based Midwest Granites and SMJ together will share the balance 55% with the former having higher equity. The board of the new JV will comprise of three directors from BEML and four from Midwest and SMJ of Indonesia.
According to Mr VRS Natarajan Chairman of BEML Midwest, it will have equity of INR 100 crore and will target development of opencast mines in the range of 10 million tonnes and explore opportunities both in India and abroad. Mr Natarajan said that the business from contract mining is expected to be about INR 500 crore in the next 4 to 5 years.
Mr Natarajan told newspersons that the JV is also looking for allocation of coal blocks with tie ups for coal supply to power plants. Mr Natarajan explained that in the overseas market, the JV will look for coal blocks in Indonesia, Australia and South Africa.
For BEML, the JV will ensure orders for its equipment and spares without going for tender process, which is expected to add to the bottom line. Midwest Granites, the responsibility would be for exploration, planning, development and production of coal mines. Its marketing and distribution network will bring strength to the operations. Whereas Indonesian Group Mitra Jaya will bring its wide expertise in contract coal mining and production, to bid for projects in India as well as globally.
NML to focus on low cost technology for titanium extraction
Keeping in mind the huge unexploited titanium reserves in the country the National Metallurgical Laboratory has planned to do extensive research during the 11th Plan to discover less expensive technology for the extraction of titanium from ilmenite. NML also plans to focus on beneficiation of low grade minerals as also on extraction of light metal magnesium which too finds wide industrial use.
Mr SP Mehrotra director of NML recently said "We have not been able to exploit one of the largest titanium deposits in the world because the technology for extraction even today is very expensive"
According to Dr Swantantra Prakash deputy director & head business development & monitoring division of NML, it has already submitted a detailed plan of action for the five year period to the Planning Commission as well as to the Council of Scientific & Industrial Research because these are mega projects they have to be linked with so many labs and industries that development of cheaper technology for titanium extraction was the need of the country.
Titanium which is ten times stronger but six times lighter than steel, finds varied applications including in aerospace satellites defence hardware etc. The only hurdle in titanium's way to becoming as commonplace as steel is its almost prohibitive price, which is mainly because of the existing energy intensive extraction processes. Experts say that if titanium's cost can be cut down to about one third of its present cost, many steel producers may not be comfortable as titanium would replace steel in many of its applications because of its superior properties.
Coal production at MCLs 3 mine hit due to protests by displaced
Statesman News Service reported that coal production and dispatch in Coal India Limiteds Mahanadi Coalfield Limiteds three mega mines in Orissa came to a grinding halt following the indefinite agitation by some land oustees of Danara village which is affected by MCLs Balaram mine.
The report said that at least 30 agitating people of the village blocked the coal output and transportation of Balaram, Bharatapur and Hingula mines since last Thursday morning demanding job in MCL in lieu of their land acquired for first two mines in 1990. They have demanded for at least 26 jobs before they withdraw their stir.
Coal transportation in and outside the mines were also paralyzed due to the stir. Local administrative and police officers have rushed to the spot to persuade the striking villagers to call off their agitation.
The three mines together produce about 80000 tons per day.
Gopalpur Ports rail linkage to be constructed by RVNL
Exim News Service reported that the Rail Vikas Nigam Ltd will construct a new 70 kilometer rail line to facilitate cargo movement to Orissas Gopalpur port. The INR 400 crore project is supported by Gopalpur Port Ltd and Dubai Aluminium Ltd.
Mr Churchit Mishra Director of OSL Group who operates the Gopalpur port on build, operate and transfer basis, told Exim News Service that the handling capacity of ports in Orissa would increase to nearly 150 million tonnes in 2 to 3 years as a number of industries were being established in the state. And GPL was quite assured of cargo, given its location proximity to cargo generating units.
Gopalpur Port, situated between Visakhapatnam and Paradip Ports on the east coast, is being jointly developed by a consortium comprising OSL Group, Sara International and the Hong Kong based Noble industries. It has already commenced cargo handling through barges at the existing minor port at Gopalpur. It is constructing a new port at a cost of around INR 2,000 crore which is projected to handle 11 million tonnes of cargo by 2009-10. According to the report, two berths would be established initially having a draught of 16 meters.
Adani Group orders Hanjin Heavy for 2 Capesize bulk carriers
Livemint.com reported that Adani Enterprises Ltd, the flagship company of the Ahmedabad based Adani Group, has placed orders for two new Capesize bulk carriers with South Koreas Hanjin Heavy Industries and Construction Co for about INR 650 crore. The order will be funded partly from USD 250 million (INR 1,025 crore) foreign currency convertible bonds raised by the company in December 2006.
An Adani Group official said that We have ordered two Capesize ships at Hanjin yard and these will be delivered in the last quarter of 2010. He said that the ships are being acquired through Adani Shipping Pte Ltd, a wholly owned subsidiary of Adani Enterprises, and will fly the Singapore flag.
The ships will be used by Adani to transport coal from its mines in Indonesia to the proposed 2,000 MW coal based power plant coming up at Mundra. On the return leg, the ships will carry iron ore to China from the companys mines at Belekeri in north Karnataka. The two ships will make 12 trips in a year, carrying 2.2 million tonnes of cargo.
Capesize vessels are the largest ships capable of carrying dry bulk commodities and typically can carry as much as 175,000 deadweight tonnes of coal, steel or iron ore. The average daily hire rate for a Capesize ship is currently about USD 110,000 per day.
NTPC and CSEB sign PPA for Barh STPP
PTI reported that State run power generation company NTPC Ltd signed an agreement with Chhattisgarh State Electricity Board to sell electricity from its Barh Super Thermal Power Station stage II. The power purchase agreement was signed by Mr IJ Kapoor ED of NTPC and Mr VK Jain Secretary of CSEB.
The Barh Super Thermal Power Station stage II of the power plant comprises of two 660 MW units and would benefit the states in northern western and eastern region.
Kotli-Bahal power project in Himachal gets environmental clearance
Projects Today reported that the ministry of environment and forests has accorded environment clearance to Kotli Bahal Hydel Power Stage I-A 195 MW of NHPC.
As per report the project will come up in Muneth village in Tehri Garhwal district of Uttarakhand at an estimated cost of INR 1,138.02 crore.
IISI sees next wave of steel consolidation in Asia
According to International Iron and Steel Institute, the next big wave in steel sector consolidation is set to sweep China, forging global powerhouses that will pose serious threats to high cost Western producers.
Mr Ian Christmas secretary general of IISI during Global Mining and Steel Summit in London told the Reuters that steelmakers of the Chinese juggernauts set to emerge and warned that western firms will need to remain fit and have a clear strategy to meet the threat. Mr Christmas said "They'll have to run very hard. There aren't so many players left that don't have complications attached to them which is probably why we see a slowing of mergers and acquisitions There are some niches out there but I think the main area for the next wave of consolidation is going to be Asia."
Mr Christmas said that China seems overdue for a merger wave because it remains fragmented noting the top five producers have even less domestic market share than they did five years ago.
Mr Christmas said "It's a frustration for the companies like Arcelor Mittal that want to be truly global players that they seem to be for the moment at least locked out of the biggest market of all and the one that still must have the greatest potential. The leaders like Baosteel are spending as high a percentage of their turnover on R&D as Nippon Steel or the other leaders in the industry.
He said in a few years time the Chinese will own most of the intellectual property in the steel industry other potential consolidators include iron ore companies and mining groups flush with cash from the commodities price boom.
Global CO2 output to increase by 59% by 2030
US government forecast that the global emissions of the main gas linked to global warming will rise by 59% during 2004 to 2030 with much of the increase coming from coal burning in developing countries like China.
US Energy Information Administration said in its annual International Energy Outlook said that global carbon dioxide emissions will hit 42.88 billion tonnes in 2030, up from 26.9 billion tonnes in 2004 and 21.2 billion in 1990. However, the forecast was down slightly from last year's prediction of 43.7 billion tonnes by 2030 on signs that concerns about global warming have begun to change the world's fuel mix.
The EIA said by 2010 CO2 output in rapidly growing China, which is rapidly building coal plants and highways will edge out emissions from the United States by 6.49 billion tonnes to 6.21 billion tonnes That confirmed a report this spring from the Paris-based International Energy Agency that said China would overtake the United States as the world's biggest CO2 emitter either this year or next.
The US government forecast that Greenhouse emission forecasts will be watched widely in coming months ahead of a UN conference in Indonesia late 2007 in which world governments will discuss whether the Kyoto Protocol on global warming can be extended.
The United States the world's top carbon dioxide emitter in 2001 pulled out of the pact that requires developing countries to cut emissions by an average of 5% below 1990 levels by 2012. China the world's second largest emitter was not required as a developing country to limit emissions in the first round of the international agreement.
Argentina to seek sanctions at WTO against US on AD cases
AP reported that Argentina is planning seek imposition of annual sanctions worth USD 44 million against the United States because of its failure to comply with a ruling over the duties it applies on steel tubes, drill pipes, castings and other goods used in the oil and gas industry.
Argentina said the USD 44 million represent the amount of lost trade resulting from the US measure and it aims to retaliate by placing additional duties on American goods entering Argentina.
The report cites an internal WTO communiqumentioning that the request will be formally presented at a June 4th 2007 meeting of the World Trade Organization's dispute settlement body.
Washington is expected to challenge Argentina's claim at the meeting next month, meaning an arbitration panel will likely have to decide on the level of retaliation.
WTO ruled in December 2004, that US anti dumping duties on Argentinean oil industry goods violated global trade rules and subsequent decisions confirmed US noncompliance.
Japans steel export in April up by 9.9% YoY
It is reported that export of Japanese steel increased by 9.9% to 2.816 million tonnes in April from a year earlier. Finance ministry of Japan said that the export value increased by 25.7% to JPY 310.524 billion.
On the other hand, Japans import increased by 30.6% to 823,315 tonnes and by 50.4% in value to JPY 93.588 billion.
POSCO sees increased global competition in SS
POSCO forecast that stainless steel prices may fall due to increased global market competition between Chinese and European producers.
Mr Lee Youn president of POSCO in an interview recently at Kyoto said that This year will be a turning point for the stainless steel industry. Inventories in Europe are slightly high and if that continues to grow, European steelmakers will increase exports to Asia, while China is exporting to Europe. Mr Lee however added that Stainless steel prices may collapse, but that will not be enough to make nickel collapse,
European SS maker Outokumpu Oyj is cutting output this quarter by 10% as consumers use inventories instead of placing orders. Arcelor Mittal also recently said that demand of Stainless steel this quarter would be below that of the first three months of this year as customers seek cheaper alternatives to nickel.
According to the International Stainless Steel Forum China boosted output by 68% to 5.3 million tonnes last year while global production rose by 17%.
Khumani Iron Ore raises output target
It is reported that the capital cost of Assmang's developing Khumani iron ore mine in Northern Cape had been revised to ZAR 4 billion from the original ZAR 3.2 billion as a result of scope changes and a revision in planned production to 10 million tons a year from the originally envisaged 8.4 million tons.
Work on the site started last June and was expected that 1.4 million tons would have been produced with 1.2 million tons shipped on the export rail line. By the year to June 2009 it was envisaged that 7.2 million tons would have been exported from Khumani with 10 million tons exported by the 2010 financial year.
Mr Jan Steenkamp CEO of African Rainbow Minerals Ferrous said the increase in project costs compared favorably with other cost escalations in the industry. Increased costs of Khumani at 17.7% were lower than the 20% announced by SA's other major iron ore producer, Kumba Iron Ore and the 60% at BHP Billiton's Ravensthorpe nickel project in Australia. He said Khumani would be a low cost producer of quality iron ore with a 35 year life producing 16 million tons a year.
Mr Steenkamp said that out of the 47 million tons to be carried on the Saldanha line, Kumba would account for 33 million, Assmang 10 million Saldanha Steel 2 million and a potential third producer 2 million.
Assmang is 50% owned by ARM and 50% by Assore.
Mechel increases stake in Kuzbass Power Sales Company
Mechel OAO announced that it has won an auction to acquire 49% shares of Kuzbass Power Sales Company and that together with its 1.2% shares already owned, its stake in Kuzbass Power Sales Company has increased to 50.2%.
Mechel's subsidiary Mechel Energo OOO has acquired from RAO UES of Russia 297,020,200 of ordinary shares of Kuzbass Power Sales Company comprising 49% of its charter capital for approximately USD 44.0 million or RUB 1.14 billion.
Mr Alexey Ivanushkin COO of Mechel's commented that "The acquisition of Kuzbass Power Sales Company enables us to form a vertically integrated power company with its own power generating facilities raw material resources and now a well established client base. Acquiring the Kuzbass Power Sales Company is a very compelling. Opportunity and we intend to develop it as part of our power strategy."
Kuzbass Power Sales Company is the largest power distributing company in Siberia. Its planned distributed power volume for 2007 is 24.8 billion KWH. Based on Russian Accounting Standards the revenues of the company were RUB 8.6 billion in the first half of 2006 and amounted to RUB 6.1 billion in the first quarter this year.
Fitch places Norilsk Nickel on rating watch negative
Fitch Ratings in a recent release said that it has placed Russian OJSC MMC Norilsk Nickel Issuer Default and senior unsecured BBB- ratings and Short term F3 rating on Rating Watch Negative following its increased cash offer of CAD 6.8 billion (USD6.3 billion) for Canada based LionOre Mining International Ltd. A Rating Watch Negative situation encompasses the possibilities that the ratings could ultimately be affirmed or downgraded.
The release add that the Rating Watch Negative reflects the significant CAD 1.5 billion (USD1.4 billion) increase in the level of Norilsk Nickel's revised offer and the potential negative impact on its credit metrics.
Fitch would resolve the Rating Watch Negative on the ultimate success of Norilsk Nickel's offer, and after discussions with the company on a number of issues including financing and future strategy with respect to acquisitions.
Fitch had previously affirmed Norilsk Nickel's ratings on the announcement of its initial CAD 5.3 billion (USD4.8 billion) offer but noted the potential for further round of bids and that a significant increase in its offer could lead to a review of the group's ratings.
Pakistans ministry proposes sops for steel industry
Pakistans Business Recorder reported that Pakistans ministry of industries and production has proposed to the government a new duty and tax regime for steel industry, wherein it has sought a 10 years tax holiday for increasing domestic production.
As per report, the ministry has also demanded a 15% reduction in international trade price value of scrap and billets to catch upward trend in steel prices. It also recommended reduction in withholding tax for commercial importers of steel scrap and billets rates from 6% to 2% as a final liability. The ministry also stressed the need of regulation of import of low quality half moon cut pipe scrap to provide even playing field for ship breaking industry.
Other recommendations included soft term loans for acquiring appropriate machinery & technologies for up gradation, zero rating customs duty and sales tax on import of high capacity electric furnaces and other related machinery, facilitation and priority in 132 KV electricity connections for furnaces and grid synchronization. It also suggested facilitation in setting up of captive power plants for furnace and steel re rolling units. The ministry recommended equal rate of custom duty on import of re rollable scrap and billets.
It said a level playing will encourage fresh investments in steel industry to have maximum steel production. It also suggested maintaining of existing cascading duty structure for steel sector.
ISSF releases 3 new publications
The International Stainless Steel Forum during its 11th Annual Conference at Kyoto in Japan has announced that it published three new brochures. The brochures includes
1. Book of New Applications 2007
ISSF has published its second reference to new stainless steel applications. The Book of New Applications contains more than 60 applications from around the world. Sectors such as building and construction, industrial machinery and transport are covered.
2. The Ferritic Solution: The essential guide to ferritic stainless steels
Ferritic stainless steels share most of the mechanical and corrosion resistance properties of their more expensive cousins, austenitic stainless steels. However, unlike the austenitics, ferritic stainless steels contain no nickel. This makes them a cost effective alternative in many applications. The Ferritic Solution provides an overview of the properties of ferritic stainless steels, the advantages of using them and the applications where they can be used. The Ferritic Solution is a crucial reference document for stainless steel users, specifiers and producers.
3. Annual Review 2007
ISSFs Annual Review contains an overview of the work of the Forum in the past year.
All of the publications listed above can be ordered through ISSFs website http://www.worldstainless.org
Zambia to sell stake in Maamba coal mine after debt clearance
It is reported that Zambia would not sell a stake in Maamba collieries until the countrys largest coal producer repays USD 20 million of debt.
Mr Kalombo Mwansa mines ministers in an interview in Lusaka said that "We want to settle the debt before we invite an equity partner that a number of foreign and local companies are interested in buying a stake.
As per report, production at Maamba controlled by state owned Zambia Consolidate Copper Mines Investment Holdings dropped to 8,000 tonnes last year from 60,000 tonnes in 2000. On January 1st the mine announced plans to invest USD 15 million to replace old equipment and boost production.
OMKs Vyska becomes certified pipe supplier of PDO
It is reported that Petroleum Development of Oman a subsidiary of Shell which accounts for more than 90% of the Oman's crude oil production and nearly 100% of the Oman's natural gas supply has included OMKs Vyksa Steel Works in its list of certified suppliers of main pipes.
Mr Vladimir Markin president of OMK said that "???, having become one of the world's leading manufacturers of pipes for oil and gas pipelines, intends to increase its exports. We are interested in the Middle East markets and in the years coming our Company plans to become a supplier of oil and gas pipes for this region, the world's leader for discovered and proved reserves of carbohydrates."
Vyksa Steel Works earlier in 2006 was included in the list of pipe suppliers that fully comply with Shell's Design and Engineering Practices criteria.
??? is carrying out integrated work toward mastering new types of pipes for the world's leading energy companies. In April, VSW produced a trial batch of large diameter pipes with the working pressure of 220 atm designed for subsea pipelines according to the standards of Norway based Det Norske Veritas and the Nord Stream project specification. According to the test results, OMK's production technology was certified as complying with DNV-OS-F101.
China imposes 10% export tax on tin scrap from June 1st 2007
China Ministry of Finance in a statement on its official website said that China will impose an export tax of 10% for tin scrap with effect from June 1st 2007. The statement said the move was aimed to further tighten control on exports of energy intensive and high pollution industries and to protect the 4 country's available reserves.
An analyst from Beijing Antaike said that "There will be very limited impact if there is any on China's export of tin scrap that has not been exporting tin scrap or tin ore as its domestic demand has remained extremely strong. In fact China has to rely on import of feed stock for tin production."
The official said there have been talks of a possible export tax of 5% on refined tin and tin products since early 2007. He added that "So far we don't see it on this ministry of finance statement. Nothing is confirmed yet. We will have to wait and see."
According to latest figures from China general administration of customs exports of unwrought tin and its alloys from China also jumped 66% to 8,105 million tonnes during the first three months of 2007 with their value also rising 186.5% to about USD 99.26 million.
Gazprom to buy pipes for RUB 45 billion in 2007
Rusmet.ru recently reported that Russian energy giant, Gazprom will allocate about RUB 45 billion for purchase pf pipe products. The report cites Mr Igor Fedorov GD of Gazproms unit Gazkomplektimpeks as saying that in 2007 Gazprom will allocate about RUB 45 billion for purchase of pipe products.
Mr Fedorov e noted that during last years estimating perspectives of pipe deliveries by Russian companies with a number of mills started new manufacture including pipes which earlier were not produced in Russia. Mr Fedorov emphasized that these investments were made by pipe producers on the basis of only verbal consultations with Gazprom minimizing risk of investments. He said "We help as much as we can, but pipe producers had a lot of problems. Gazprom is in such a situation, that it can pay for purchased products not in advance, but only by fact. Pipe producers are not always satisfied by it."
According to Mr Fedorov peak consumption of pipes will take place in 2009-2010 and it will be connected with projects in Yamal. He said "During this period all necessary volume of products can not be delivered by Russian pipe producers. They admit these themselves. That is why Gazprom has already started to allocate means for needs of 2009-2010."
Gazkomplektimpeks is responsible for material and technical provisions for Gazprom
Russian Coal to hire consultant for consolidating assets
Interfax reported that Russian Coal plans to consolidate its assets and would hire an international consultant to help devise the best way of doing so. Mr Vladimir Pozhidayev GD of Russian coal said that it wills chose between KPMG, Ernst & Young, Deloitte and PricewaterhouseCoopers.
Mr Pozhidayev said that Russian Coal is not planning an IPO yet that could take at least five years to prepare for an IPO and about two years to consolidate assets. He said that "There would have to be three years between consolidation and an IPO, but shareholders have not yet decided whether to float, although we plan to go public and be transparent for investors."
Russian Coal's coal assets include Gukovugol and Gukovugol Management in the Rostov region, the Yevtinsky, Zadubrovsky and Belorussky open pit mines and Leninskoye mine administration in the Kemerovo region, the Stepnoi pit in Khakasia, and Amur Coal in the Amur region.
GCC posts wider net loss for Q4
Grande Cache Coal Corp reported a net loss for the fourth quarter of CAD 4.7 million as compared to a net loss of CAD 2.6 million in the same quarter prior year. Its quarterly revenue declined to CAD 13.8 million from CAD 27.0 million in the previous year quarter and cost of sales for the quarter were CAD 15.3 million as compared to CAD 26.7 million in the same period last year.
Mr Robert Stan president & CEO said "During the fourth quarter, our rail service provider experienced a combination of severe winter weather conditions and labor unrest that led to dramatically reduced rail service. We were very disappointed by these developments as were other shippers of bulk commodities. Not being able to rail our product to the loading terminal resulted in unexpectedly low customer shipments and rapid inventory build-up at the mine. This forced the temporary suspension of mining and processing activities which led to increased unit costs during the quarter.
Mr Stan added that Since the beginning of April we have seen improved rail service. Further improvement is anticipated and will be required for us to meet all of our customers' shipping requirements and load the vessels that are currently scheduled. We are working closely with the railway to maximize our rail shipments to the load port."
For fiscal 2007, the company posted a net loss of CAD 7 million as against a net loss of CAD 32.1 million in previous year. Revenue for the fiscal year rose to CAD 101.3 million from CAD 90.1 million in prior year.
Looking ahead, for the fiscal 2008, the company said expects coal sales volumes to be in the range of 1.4 million tonnes to 1.6 million tonnes, dependent upon adequate rail service and a timely startup of the surface mine.
BlueScope to buy more CRC from PT Krakatau for new facility
YIEH reported that BlueScope Steel recently announced that they will source more cold rolled coils from Indonesian state owned PT Krakatau Steel to double the production for its new USD 101 million plant located at Cilegon in Indonesia.
BlueScopes said that it has been purchasing around 90% to 95% of its total CRC demand from Krakatau Steel.
This new plant project was postponed last year and now will be started again. It will has an annual capacity of 170,000 tonnes on coated steel products and then can increase the production volume to 305,000 tonnes in total, up by double growth at the end of 2009.
Guangzhou Lianzhong starts making 400 series SS
It is reported that Guangzhou Lianzhong Stainless Steel Corp has recently started to melt ferritic 400 series stainless steel at its newly commissioned 800,000 tonnes year melt shop.
Lisco said that the new meltshop started production earlier this year and produces around 20,000 to 30,000 tonnes per month of stainless, including 300 and 200 series as well as ferritics.
Trial production of 430 series stainless has begun, and the company may develop other ferritic products depending on market demand.
Herald Resources Dairi zinc project in Indonesia advancing slowly
Metals Insider reported that the Dairi zinc lead mine project in Indonesia has made another small step in its progress through the permitting stage.
According to 80% owner Herald Resources, the mine capable of producing up to 125,000 tonnes per year of zinc and 80,000 tonnes per year of lead over an 8 year initial life has been badly held up at the forestry permit stage. It was originally expected to come on stream towards the end of this year a time table that looks increasingly unlikely.
According to Herald, the minister of forestry had previously asked a parliamentary commission to comment on the granting of a forestry permit. That commission has just recommended such a permit be granted and will be given to the Minister at a meeting in June at which time the Minister shall give his response.
Puda Coals Q1revenue up by 80% YoY
Puda Coal Inc a leading supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing announced its financial results for the first quarter ended on March2007.
First Quarter 2007 result highlights
1. First quarter revenue reached a record USD 37.4 million up by 80% as compared with the first quarter of 2006
2. Operating income totaled USD 6.3 million up by 66% as compared with the first quarter of 2006.
3. Net income rose to USD 3.8 million compared to a net loss of USD 6.4 million in the first quarter of 2006
4. Adjusted net income totaled USD 4 million, up by 79% from adjusted net income of USD 2.2 million in the first quarter of 2006.
5. Sales of cleaned coal totaled 467,000 tonnes up by 75% from the first quarter of 2006
6. Average selling price of cleaned coal was USD 80 per tonne slightly down from USD 81 per ton in the comparable period of 2006
7. Renewed sales contract with the largest two clients Baotou Steel Group and Xuanhua Steel Group.
Mr Zhao Ming chairman & CEO of Puda Coal Inc said that ''While the first quarter is one of our seasonally slowest quarters, our results reflected favorable cleaned coal market conditions and the positive impact of renewed contracts with several of our customers. Our margins were impacted by slightly higher prices of raw coal, but the average selling prices of our cleaned coal product were relatively stable. During the quarter, we increased our inventory of raw coal in order to mitigate the impact of higher raw coal price.''
Puda Coal supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently possesses 2.7 million tons of annual coking coal cleaning capacity.
Zambia to sell stake in Maamba coal mine after debt clearance
Exim News Service reported that the Rail Vikas Nigam Ltd will construct a new 70 kilometer rail line to facilitate cargo movement to Orissas Gopalpur port. The INR 400 crore project is supported by Gopalpur Port Ltd and Dubai Aluminium Ltd.
Mr Churchit Mishra Director of OSL Group who operates the Gopalpur port on build, operate and transfer basis, told Exim News Service that the handling capacity of ports in Orissa would increase to nearly 150 million tonnes in 2 to 3 years as a number of industries were being established in the state. And GPL was quite assured of cargo, given its location proximity to cargo generating units.
Gopalpur Port, situated between Visakhapatnam and Paradip Ports on the east coast, is being jointly developed by a consortium comprising OSL Group, Sara International and the Hong Kong based Noble industries. It has already commenced cargo handling through barges at the existing minor port at Gopalpur. It is constructing a new port at a cost of around INR 2,000 crore which is projected to handle 11 million tonnes of cargo by 2009-10. According to the report, two berths would be established initially having a draught of 16 meters.
