SAIL to reach 25 million tonnes by 2010

Steel Authority of India Limited will increase its installed capacity to 24.98 million tones by 2010 from the current level of 13 million tones. Initially the expansion plan of SAIL was to raise its capacity to 22.5 million tones by 2010 with an investment of INR.37,000 crore. The revised estimate for the higher installed capacity along with the ongoing program has been now pegged at INR.43,000 crore.

Mr SK Roongta chairman of SAIL made a presentation recently on the progress of the expansion program to a high powered panel comprising of Mr Ram Vilas Paswan union minister of steel, Mr RS Pandey secretary steel, Mr AK Rath special secretary and other senior officials and outlined the difficulties being faced in the process.

Mr Paswan union minister of steel urged the SAIL management to implement the program on time. He said that economic progress has thrown up a great opportunity to create a solid base for the steel sector and we will loose the opportunity unless we take timely action. He asked SAIL to avoid delay in the execution of the program which costs the exchequer substantially.

Mr Paswan has asked SAIL to come up with a revised schedule for implementing the expansion plan and has asked steel secretary to review the progress in the first week of each month followed by further reviews for important milestones in a six monthly appraisal.

Indian iron ore export prices remain flat last week

China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week.

The change is with respect to prices posted on May 21st 2007

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 and 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.

JSLs 2006-07 net up by 121% YoY

Jindal Stainless Limited has announced the following results for the quarter & year ended March 31st 2007

The Unaudited results for the Quarter ended March 31, 2007
JSL has posted a profit after tax of INR 921.2 million for the quarter ended March 31st 2007 up by 181% YoY as compared to INR 326.9 million for the quarter ended March 31st 2006. Its total income net of excise has increased from INR 8343.20 million for the quarter ended March 31st 2006 to INR 14351.80 million for the quarter ended March 31st 2007.

The Audited results for the Year ended March 31st 2007
JSL has posted a profit after tax of INR 3530.1 million for the year ended March 31, 2007 up by 121% YoY as compared to INR 1597.3 million for the year ended March 31st 2006. Its total income net of excise has increased from INR 32026.1 million for the year ended March 31st 2006 to INR 48964.3 million for the year ended March 31st 2007.

The Audited consolidated results for the Year ended March 31st 2007
The Group has posted a net profit after minority interest of INR 3371.1 million for the year ended March 31st 2007 as compared to INR 1618.7 million for the year ended March 31st 2006. Total income net of excise has increased from INR 32681.8 million for the year ended March 31st 2006 to INR 49964.5 million for the year ended March 31st 2007.

Mr Ratan Jindal vice CMD of JSL said that "The growth in the turnover was mainly influenced by export sales which grew by 93% YoY. The exports touched INR 2,314.6 crore as compared with INR 1,197.32 crore the year before.

Baosteel may invest in ferrochrome unit in Orissa - Report

CNBC-TV18 reported that Chinese steel major Baosteel is considering an investment in a ferrochrome unit at Kalinganagar in Orissa and may finalize a JV soon.

The report mentions that the likely capacity of the unit is expected to be 100,000 tonnes per annum and will cost between INR 150 crore to INR 200 crore. As per report Baosteel is likely to own 35% in the new unit and Visa Steel may own the balance 65%.

The report cites Mr Vishambhar Saran chairman of Visa Steel as saying that “Discussions have been going on from time to time on various possibilities. I don't want to speak about something for which we do not have a definitive agreement."

The report also cites Mr Qian Weifeng representative of Baosteel in India as saying that “We at Baosteel do not comment on anything for which we do not have an agreement."

Visa Steel's 50,000 tonnes per annum ferrochrome unit in Kalinganagar is to be commissioned in June 2007. Visa Steel has 525 acres in Kalinganagar and has applied to the Orissa government for an additional 675 acres.

SAIL to give final approval for SSP expansion soon

FE recently reported that final approval for the proposed INR 1,553 crore modernizations and expansion project of Steel Authority of India Limiteds Salem Steel Plant is expected to come soon. The project is expected to be commissioned 27 months after this approval. SAIL board gave its preliminary nod in June 2006 and this stage of approval involves the final approval for all major components like suppliers, expenditure etc.

The backward integration had become essential for SSP to operate profitably as slabs for the production of stainless and carbon steel is outsourced.

The backward integration and expansion of SSP envisages installation of 0.18 million tonnes steel making facilities including a continuous slab caster and expansion of the plant's cold rolling capacity from 0.070 million tonnes to 0.146 million tonnes. The capacity of its HSM will be raised to 0.370 million tonnes by 2010.

SAIL's Alloy Steel Plant at Durgapur will increase its capacity to supply 0.19 million tonnes of steel slabs to SSP and these two together would ensure availability of 0.37 million tonnes of steel slabs to SSP.

Stage-I of SSP was commissioned in September 13th 1981 with a capacity to produce 0.195 million tonnes of steel. In 1991 a second Sendzimer mill was commissioned to raise SSP's cold rolling capacity to 0.070 million tonne. A 3600 tonne capacity coin blanking line was commissioned in 1993. And in 1995 the phase II expansion of Stage I saw the commissioning of the INR 423 crore plant for the hot rolling of stainless steel slabs for producing over 0.186 million tonnes of HR stainless steel coils.

Indian coal companies plan an outlay of INR 35,000 crore in 11th Plan

PTI reported that public sector coal companies have proposed a capital outlay of more than INR 35,000 crore to meet their production target of 680 million tonnes for catering to the need of the core sectors during the 11th plan.

The report cites an official of coal ministry as saying that "The state run coal units have proposed a capital outlay of INR 35,774.37 crore during the 11th Plan for producing 680 million tonnes of coal to meet the growing requirements of the core sectors comprising power, steel and cement companies." The official said that of the total sum, CIL has proposed an outlay of INR 17,390.07 crore, SCCL 3,340.30 crore and Neyveli Lignite Corporation INR 15,044.00 crore.

He said that the Working Group on Coal and Lignite constituted by the government has projected the country's coal demand in the terminal year of the 11th Plan to be 731.10 million tonnes. The official added that "The annualized growth rate of coal demand is expected to be 9% over the 10th Plan demand of 474.18 million tonnes and has pegged countrywide coal demand for the current fiscal at 492.50 million tonnes.

Coal India Ltd and Singareni Collieries Company Ltd are expected to supply 520.50 million tonnes and 40.80 million tonnes of coal respectively during the plan period."

Steel ministry achievements in last 3 years

Indias steel ministry has recently reviewed the performance of units under its fold and the highlights are as under

1. Mergers and acquisitions
Following mergers and acquisitions are in progress and are expected to be completed during 2007-08.
A) Merger of BRL and MEL with SAIL
B) Acquisition of NINL by SAIL
C) Merger of SIIL with NMDC
D) Merger of KISCO with KIOCL

2. Revival and re structuring
A) INR 30.46 crores as non plan assistance for clearing outstanding wages & salaries and statutory dues to BRL and INR 21.44 crores to HSCL released by the ministry in December 2006. The government of India released a grant of INR 164.27 crores to HSCL for liquidation of income tax liability and is also working on a revised restructuring package for HSCL.
B) A committee had been constituted under the chairmanship of Dr JK Bagachi for restructuring & reorganization of Bird Group of Companies.

3. Embracing e commerce and promoting transparency
A) PSUs in the ministry have increasingly gone over to the e commerce mode. All steel PSUs are also now putting up complete tendering details on their respective websites for ensuring transparency and normative ness.
B) Major PSUs like SAIL, RINL, NMDC, KIOCL, MECON and MOIL have obtained ISO 9001- 2000 certification for their vigilance department during 2006.
C) RINL has become the 2nd Indian PSU to fully implement the Integrity Pact an international best practice propounded by Transparency International.

4. Rural distribution network of steel
A) Decision was taken to have at least one dealer in each district in order to make available steel items to common man. SAIL and RINL are expanding their distribution networks at a fast pace. At present SAIL has 653 dealers covering 527 districts. Percentage of SC, ST and OBC in these appointments was 24%, 10% and 11% respectively. RINL has appointed 99 dealers during 2006-07 of which 21 belong to SC & ST and 15 to OBC category.
B) To safeguard the interests of the common man in accordance with the UPAs common minimum program, the main steel producers resolved to make available items of common steel consumption in the rural areas through their dealer network at the same price as applicable in Metros providing relief of about INR 600 to INR 1000 per tonne to the individual customer in the rural areas.

5. Corporate Social Responsibility
The PSUs under the Ministry of Steel to enhance the CSR budget allocation to 2% of the distributable surplus. CSR activities are underway in the major PSUs such as SAIL, RINL, NMDC, KIOCL, MSTC, FSNL and MOIL. Steel plants to adopt villages around their plant and as part of CSR help develop these villages as model steel villages. SAIL has selected 16 villages as Steel Villages in the vicinity of the steel plants, RINL has adopted one village as a model steel village.

6. Promoting steel usage
A National Steel Promotion Campaign has been launched by steel minister on March 20th 2007 supported by SAIL, RINL, TATA Steel, JSW Ltd., Jindal Steel, Essar Steel and Ispat Limited.

7. Ensuring Raw material security
The ministry of steel has proposed for a special purpose vehicle that would be promoted jointly by several public sector companies to acquire coal mines and assets abroad. The SPV would involve the participation of SAIL, RINL, NMDC, NTPC and Coal India Ltd.

7 more companies recommended for Navratna status

It is reported that an apex committee of Indian government has recommended granting of Navratna status to 7 more central public sector undertakings. If approved, the number of Navratna would increase from 9 to 16.

The list of companies recommended for awarding Navratna status include
1. Hindustan Aeronautical Limited
2. National Aluminum Company Limited
3. Power Finance Corporation
4. Bharat Electronics Limited
5. National Mineral Development Corporation
6. Power Grid Corporation of India Limited
7. Rural Electrification Corporation Limited.

Mr Santosh Mohan Dev union minister for heavy industries while addressing a meeting at the Bengal National Chamber of Commerce & Industry said that they would be granted the status as soon as they induct independent directors on their board.

The existing Navratna companies include
1. Oil and Natural Gas Corporation
2. National Thermal Power Corporation Limited
3. Bharat Heavy Electrical Limited
4. Indian Oil Corporation
5. Steel Authority of India Limited
6. Bharat Petroleum Corporation Limited
7. Gas Authority of India Limited
8. Mahanagar Telephone Nigam Limited
9. Hindustan Petroleum Corporation Limited

TATA Motors may set up auto plant in Kutch

Exim News Service reported that TATA Motors is looking at a location near Mundra port to set up an automobile manufacturing unit and has held preliminary discussions in this regard with the Adani Group. As per report, Mr Ravi Kant MD of TATA Motors, accompanied by senior officials, inspected the facilities available at Mundra for the automobile project.

The location of the car project is expected to be close to the site where TATA Power would be setting up a 4,000 MW ultra mega power project. But it is not clear yet if Gujarat will become another base apart from Singur in West Bengal for TATAs small car project or a 2nd manufacturing base for the TATAs automobile unit near Pune.

TATA motors officials are believed to have discussed with the Adani Group the possibility of roll on roll off ships calling at the Port. Roll on roll off ships are designed to carry wheeled cargo such as automobiles, trailers or railway carriages. These vessels have built in ramps, which allow the cargo to be efficiently rolled on and rolled off the vessel when in port.

Orissa CM sees POSCO steel project on track

Mr Navin Patnaik chief minister of Orissa has retreated that POSCOs plans to build a USD 12 billion steel complex in Orissa are on track. Mr Patnaik told reporter that "The POSCO project is absolutely on track. There are only teething problems, we expect everything to fall in place as soon as possible."

Mr Lee Dong hee CFO of POSCO in Seoul last week had said that the company would start building the steel complex project in October, as scheduled, despite local opposition.

POSCO, which signed a MoU for setting up mega steel plant in Orissa has not been able to make any progress in last 2 years due to stiff opposition form villagers and tribals. Earlier this month, 2 executives from POSCO were detained by villagers protesting against the project, and were released after POSCO gave an assurance its staff would not visit the area again.

CIL and Indian Railways plan for better wagon availability

It is reported that Coal India Ltd and Indian Railways had a Rail Coal Interface meeting on last weekend to analyze the gap between CILs requirement of wagons and their availability during the peak and sluggish production periods, so as to avoid accumulation of coal stocks at the mine pit heads. The meeting ended with a commitment that both CIL and the Indian Railways will act jointly to overcome the present impasse.

Generally there is a sluggish trend in coal production during monsoon. The mismatch between requirement of wagons and their availability in peak production months is a major concern for CIL and results in accumulation of coal stock at pithead. CIL began 2007-08 with an accretion of 42.8 million tonnes of coal at its pithead. A CIL source said that having earmarked 2007-08 as Year of Offtake and CIL seeks to evolve a system with the Railways to spread the availability of wagons matching with the seasonal fluctuations in production.

Mr K Ranganathan marketing director of CIL said that CIL expects to produce 520.5 million tonnes by 2011-12 an increase of 157 million tonnes as compared with 2006-07. He said that CIL is also expected to load 24,392 four wheeler wagons per day during 2007-08 to transport coal to consumers' destination up by 11% YoY as against 21927 four wheeler wagons per day in 2006-07. Wagon requirement by 2012 is expected to be around 32,500 four wheeler wagons per day which means the annualized demand growth for wagons will be around 7%.

Major incremental loading during the 11th Plan period is expected from Talcher, Korba, IB Valley and Karanpura fields.

CIL accounted for 63.4% of the total coal traffic of 314 million tonnes carried by the Indian Railways in 2006-07 which was more than the combined freight generated by the oil sector, steel plants and cement industry. Coal freight accounted for 37.9% of the total revenue earning of Indian Railways in 2006-07.

States asked to formulate plans for development of state highways

Mr Thiru TR Baalu union minister of shipping, road transport & highways while addressing at the conference on Public Private Partnership in State Highways has asked the states to formulate the plans for developing and strengthening the State Highways on the lines of National Highways Development Program which is under implementation for the National Highways.

Mr Baalu said that the planning commission has already written to the chief ministers suggesting the formation of a State Highway Development Program. He said that states like Andhra Pradesh, Chhattisgarh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, and Tamil Nadu have adopted PPP approach for development of roads in their states. Mr Baalu said that We look forward to a substantial step up in this participation.

He said that the centre has laid down comprehensive policy guidelines for private sector participation in highways sector and has also announced several incentives such as tax exemptions and duty free import of road building equipment and machinery and model concession agreements have also been finalized for major road projects.

Mr Baalu said that under the NHDP the NHAI has awarded 78 contracts aggregating to a length of around 4,550 kilometers at a cost of INR 300.50 billion and so far 15 projects aggregating to a length of 896 kilometers at a cost of INR 46 billion have been completed. During the financial year 2007-08, a length of 2,995 kilometers at an estimated cost of INR 196.50 billion are to awarded on PPP basis under NHDP Phase V for 6 laning of identified National Highways. Similarly, 3,278 kilometers of national highways have been identified for development to 4 lanes to 6 lanes at an estimated cost of INR 213 billion on the PPP mode under the NHDP Phase III. Giving details of the new 5 phases of NHDP, he said that it includes 4 laning of 12,109 kilometers of national highways under the NHDP Phase III, 2 laning with paved shoulders of 20,000 kilometers of national highways under the NHDP Phase IV, 6 laning of 6,500 kilometers of stretches of Golden Quadrilateral and other high density stretches under the NHDP Phase V, construction of 1,000 kilometers of expressways under the NHDP Phase VI and construction of flyovers, ring roads, interchanges and bypasses under the NHDP Phase VII.

He said that these phases are slated for completion by 2015 at an estimated cost of INR 235,430 crores and the government expects active participation by private sector from India and abroad in this program and said that it would be encouraging to note that a total of 86 contracting and consulting firms from 27 countries are already participating in various projects of the NHDP.

CISA to support steel futures at Shanghai Exchange

China Iron and Steel Association announced that now it supports the idea of steel futures trading on the Shanghai Futures Exchange, an about face from its previous position. CISA said that setting up steel futures is possible now because conditions for the business were matured.

Mr Qi Xiangdong deputy secretary of CISA announced at the 4th Shanghai Derivatives Market Forum held in Shanghai that steel product futures will be launched on the Shanghai Futures Exchange in the near future. He said "Steel product futures will help stabilize China's domestic steel product market and aid China's transformation into a more powerful player in the global iron and steel market.

The CISA official said the SHFE has much experience in metal product trading, including copper, aluminum and zinc and has already conducted thorough research into a steel product futures market. He added that China could learn much from the steel product futures system currently trading in India. Mr Qi suggested that China should first launch rebar and wire futures, as the two products are relatively simple to introduce into futures contracts and then later expand into futures trading on other steel products.

CISA was opposed to steel product futures in the past, claiming that China's steel industry and market were not sufficiently mature and raising concerns that futures trade would cause excessive market speculation.

The Shanghai Futures Exchange now trades copper, aluminum, zinc, fuel oil and natural rubber and is studying other commodities, including steel rod, nickel and fuel ethanol. As per reports, SHFE has already completed a system for 6.5 millimeter high speed wire and rebar futures trading and is set to launch trade this June at the earliest.

SAs SS consumption in 2006 up by 29% YoY

The Southern Africa Stainless Steel Development Association announced that consumption of stainless steel in South Africa grew up by 29% YoY to 192,647 tonnes in 2006, driven primarily by the many capital projects in progress in Southern Africa and as increased demand was experienced from the transport, capital equipment and general engineering, architecture, building and construction industries.

SASSDA added that during 2006, 42% of domestic apparent consumption was consumed by the transport sector followed by engineering & capital equipment with 18%, metal goods with 17%, tube and piping with 8% and direct building and construction with 4%.

Mr Michael Campbell MD of Southern Africa Stainless Steel Development Association while speaking at its AGM last week said that local demand continued to be the primary growth driver for the stainless steel market. He said the growth outlook for the local market remained positive, driven by strong demand and project activity within South Africa and the region.

He added that We maintain, and closely monitor, a pipeline of Southern Africa mega projects with a current aggregate value over the next decade or so of USD 55 billion, which principally includes Gautrain, Airports Company South Africa, the 2010 World Cup, petrochemicals and power generation projects. We continue to promote the use and development of stainless steel in all of these projects, and many more.

Mr Campbell said that, globally, the stainless steel market in 2006 was characterized by rampant demand, tight supply and rising raw material costs. Mr Campbell said that Since 2002 the price of nickel has increased from USD 4200 to around USD 53000 a ton. There have also been dramatic increases in other raw material prices which have lead to a sharp increase in the price of stainless steel. As a result while there have been experiments into substituting stainless steel, there had been no marked movement away from stainless steel.

The International Stainless Steel Forum has estimated that the global stainless crude steel production for 2007 would reach 29.8 million tonnes after it increased by 16.7% YoY to 28.4 million tons in 2006.

SAs NUM members strike at BHPBs Samancor mine

Reuters reported that South Africa's National Union of Mineworkers said that on Monday over 500 miners had downed tools at BHP Billiton's Samancor mine in the Northern Cape Province over discrimination. The union said the miners were on strike because black workers had to walk two kilometers to their nearest bus stop, while employees of other races got their transport in front of their home gates.

NUM said Billiton had unilaterally interfered with the workers' conditions of service by discontinuing with the initial transport arrangements. Mr Regionald Segeri branch secretary of NUM in a statement said that "The strike is set to go on until management of the mine comes back to its senses.

NuM added that "Having realized that, workers approached the Commission for Conciliation, Mediation and Arbitration for intervention. The CCMA has since awarded them a certificate, a green light for strike action.

China becomes net coal importer in January to March quarter

According to a report issued by the Chinas economic planner China became a net coal importer as imports exceeded exports by 2.89 million tonnes in the first quarter. The report said "Last year saw a continuous sharp decline in coal exports, which became less than imports for the first time this year.

During January to March 2007, coal exports decreased by 32% YoY to 11.4 million tonnes while imports surged by 61% YoY to 14.3 million tonne. China had exported more coal than it imported by 7.89 million tonnes in January to March 2006 resulting in a total swing of 10.78 million tonnes.

Mr Wu Chenghou executive director of the Coal Sale and Transportation Association said that "The change in tax policy last year played an important role.

In 2006, the government abolished export tax rebates on coal and imposed export tariffs, while cutting import duties in an effort to curb pollution and its fast growing trade surplus.

China's exports of coal have risen since the 1990s, with net exports up from 270 million tons in 1995 to 829 million tons in 2003.

Canadian steel makers welcome joining talks on China's export subsidies

It is reported that the Canadian Steel Producers Association welcomed the news that Canada has joined the request initiated by the US at the World Trade Organization for consultations with China on prohibited industrial subsidies.

Mr Ron Watkins president of CSPA said that this is a positive first step by Canada within the formal processes of the WTO to engage China in a constructive manner regarding its trading practices.

He said We continue to be concerned that China has not fulfilled its WTO obligations in particular with respect to the array of illegal subsidies provided to many sectors including steel. The subsidies in question distort markets threatening the competitive environment for manufacturing enterprises and the significant jobs they sustain.

The impact of subsidies is particularly pronounced in the steel sector both directly in steel products and indirectly through imports of steel-intensive goods.

Ma'anshan and US Union Electric to setup a JV for roll making

Ma'anshan Steel will set up a joint mill rolls venture with US Union Electric Steel Corp. The two have signed the contracts in Ma'anshan on March 23rd 2007.

The JV will focus on the development processing production and sales of large forged steel shore mill rolls. With operation slated for 2009, the venture will produce some 10,000 tons of shore mill rolls every year to feed Ma'anshan Steel as well as steelmakers nearby.

China's booming steel industry demands more and more mill rolls and Ma'anshan Steel is in similar situation. The two parties finally signed the contract after a two year investigation and consultation.

(Sourced from MySteel.net)

Rio Tinto may bid for Alcan - Report

Sydney Morning Herald newspaper reported that Rio Tinto Ltd Plc has hired Deutsche Bank to advise it on a possible bid for Canadian aluminum producer Alcan Inc.

Separately, Canada's Globe and Mail newspaper, citing a banker close to Alcan, said that Norway's Norsk Hydro was also gearing up for a run at Alcan.

A Canadian press report last week said Alcan was in talks with BHP as it considered alternatives to the Alcoa bid. However, the Sydney Morning Herald said on Monday, citing an unnamed source that BHP had progressed no further than other companies that had made a preliminary expression of interest.

Many miners and aluminum majors are reported to be sizing Alcan for takeover after Alcan rejected a USD 28.4 billion bid by Alcoa. BHP Billiton, Companhia Vale do Rio Doce, United Company Rusal, Anglo American and Xstrata Plc is also seen as potential bidders.

Alcan, better known for mining and producing millions of tonnes annually of bauxite, alumina and aluminum, also is a substantial provider of engineered and packaging materials. Alcan makes packaging for everything from 180 manufacturing facilities in 26 countries. It also rolls, extrudes and flattens much of the aluminum it smelts for use by engine makers, oil drillers and airplane manufacturers. Rio is unlikely to retain Alcan's downstream aluminum rolling and packaging arms, which it could sell for more than USD 8 billion and take some of the sting out of having to fork out possibly over USD 30 billion for Alcan.

Czech to challenge EUs cap on CO2 emissions in court

It is reported that the Czech government has decided to launch a legal challenge against the European Commission's March decision to slash its 2008-12 carbon dioxide emissions quota. by 14.8% to an annual 86.8 million tonnes between 2008 and 2012.

Mr Martin Riman industry minister of Czech Republic in a statement said that I am convinced that the European Commission, due to its complicated calculation model and bad data, has damaged the Czech Republic through its share out of the emissions allocation. I am glad that the coalition government has accepted my decision to launch a lawsuit.

Ms Barbara Helfferich a spokeswoman for European Commission environment commissioner termed this step as unfortunate. She said that We are confident that the decision by the Commission stands up in the court. It is unfortunate that the government decided to go to court. The commission decision is a final one and cannot be negotiated.

As per reports, Hungary and Poland, whose carbon dioxide allocations were also cut, are also preparing challenges to the European Commission decision. Slovakia already launched proceedings against Brussels in February, arguing that the Commission took a unilateral decision and failed to take into account the country's need to produce more electricity from coal fired power plants after the closure of two nuclear plants.

Atlas Iron will seek partners for Ridley magnetite venture

Australian media reported that Atlas Iron will formally seek international partners to spearhead development of its Ridley magnetite project near Port Hedland from July when it hands down the results of a scoping study into the potential billion tonne resource. As per report, Atlas is considering a range of commercialization options, including a potential spin off and listing of its magnetite assets in Hong Kong.

Mr David Flanagan MD of Atlas while speaking at Pardoo said that Atlas was increasingly excited by the potential of its Ridley magnetite deposit at the same site. Mr Flanagan said Atlas would then present the results to the number of groups that have already expressed serious interest in the project. He said the study should confirm low development and operating costs for Ridley because of its proximity to Port Hedland. Mr Flanagan said recent magnetite deals by Cape Lambert Iron and Clive Palmers Mineralogy group were excellent models.

The USD 8.5 million magnetite venture, 75 kilometer east of Port Hedland, is initially slated to produce 1 million tonnes of direct shipping grade ore annually before ramping up to 3 million tonnes a year by 2010. The ore will be trucked to Port Hedland for export.

Atlas is focused on developing its hematite operations and expects to beat Fortescue Metals Group to be the first new Pilbara iron ore miner in 40 years when it starts production at its boutique Pardoo hematite operation in March.

Berg Pipe closer to building pipe plant at Mobile in Alabama

It is reported that Berg Steel Pipe Corp is planning to sign an agreement with Alabama to move closer to building its USD 75 million facility at the former International Paper site at north Mobile in Alabama. Mr Dave Delie president and CEO of Berg's said that "It's a long process and we're glad it's coming to a conclusion and excited about being in Mobile. It's a good city and will be a good place to live for our employees."

Mr Delie said his company's incentives package includes USD 5 million in tax breaks approved by the Mobile Industrial Development Board late last year as well as hiring and training assistance from the state, infrastructure improvements and other tax abatement.

Mr Delie said Berg has tapped H&M Company Inc in Jackson Tenn as its design build contractor meaning H&M will solicit bids for the various aspects of the project handle engineering and manage it. The facility will consist of an approximately 180,000 square foot pipe fabrication building and a coating building that will be between 60,000 and 70,000 square feet. Mr Delie said the Mobile site beat out competitors in five other states largely because of its proximity to five railroads interstates and a large dock facility.

Mr Delie said that he is aware of ThyssenKrupp's plans to build a USD 3.7 billion steel facility nearby and did not rule out forging a relationship with that company. He said "I have not talked to anybody with but if they produce coils that can meet our specifications we would definitely be doing business with them."

NLMK signs equipment contract with Paul Wurth

Interfax reported that Novolipetsk Steel has signed an equipment supply contract with Paul Wurth during Mr Vladimir Putin's recent visit to Luxembourg. The contract calls for Paul Wurth to supply NLMK with equipment for a steel smelting complex.

Paul Wurth has worked with Russia's Magnitogorsk Iron & Steel Works and Nizhny Tagil Iron & Steel Plant.

NLMK also recently signed an agreement with Austria's Andritz AG for the delivery of about EUR 90 million worth of production equipment.

Kobe Steel begins construction of UBC pilot plant in Indonesia

Kobe Steel Ltd has announced the start of construction of a large scale 600 ton per day demonstration plant at the Satui coal mine in southeastern Kalimantan in Indonesian to upgrade brown coal into higher quality coal for use in power generation. Although Indonesia has an abundance of brown coal the high moisture content makes utilization of this natural resource difficult. The demonstration project aims to upgrade the brown coal into high rank coal so that it can be used for power generation.

The UBC Process raises the heat value of brown coal 1.5 times, to the same level as high rank bituminous coal and has only one third the ash. At the same time, it solves the problem of shipping and storage limitations, making possible the utilization of upgraded coal as a substitute for high rank coal. The UBC process is as under
1. Low rank coal is pulverized.
2. The pulverized coal is mixed with recycled oil (normally petroleum light oil) and heavy oil to make slurry.
3. The slurry is then heated in an evaporator and the moisture is evaporated.
4. The oil is recovered from the dewatered slurry using a decanter. At this stage, the upgraded coal is still in a powdery state.
5. The upgraded coal is briquetted for easy transportation.

Plans call for the plant to begin trial operation in October 2008. Total investments in the project are forecast to reach about JPY 8 billion. The demonstration plant is scheduled for completion in June 2008, after which brown coal will be introduced in actual trial operation. Demonstrative operation will subsequently begin in October 2008 and continue for the next year and a half to the first quarter of 2010. Bulk samples of upgraded brown coal will be supplied for trial use to a number of power companies, including Japanese power companies. Following successful demonstration, Kobe Steel aims to begin commercial marketing of the UBC Process from the second quarter of 2010.

Kobe Steel has been involved in coal utilization research for many years. Kobe Steel began development of the UBC Process in 1993, applying slurry dewatering technology used in coal liquefaction to upgrade low rank coal. Using a 100 kg per day bench scale unit built at Kakogawa Works, Kobe Steel began working on the practical application of the process in the mid 1990s. In 2001, Japan and Indonesia adopted the UBC Process as a national project. In the ensuing years to 2004, a 3 ton per day pilot plant was constructed and operated in Indonesia.

China's steel industry investment in 4 months up by 6.2% YoY

Interfax citing Chinas National Development and Reform Commission reported that fixed asset investment in the iron and steel industry grew by 6.2% during January to April 2007 as compared to the same period last year while investment in the aluminum smelting and processing industry shot up 48.2%.

The NDRC said that the stable rise of the national economy and the high growth rate of fixed asset investment in downstream industries such as real estate pushed up investment growth in both industries. NDRC added that another factor contributing to the investment leap was the expanding capacities of enterprises driven by rising steel product and aluminum prices since the second half of last year.

NDRC noted that China's steel product exports climbed noticeably, becoming a major force for alleviating domestic oversupply and boosting domestic steel mill profits as well as their enthusiasm to build more capacity. With upstream coal, power and transportation supplies easing in the first four months, new projects and capacity expansion projects were more easily commissioned.

Due to sizzling investment and oversupply, the Chinese government has implemented macro controls over the steel and aluminum industries since the second half of 2003

Shandong to eliminate 6.19 million steel capacity in 2007

Interfax China cited a Shandong Economy and Trade Commission official as saying that the northeastern Chinese province of Shandong has pledged to eliminate 6.19 million tonnes of outdated iron and steel smelting capacity by the end of this year.

Rostekhnadzor to inspect all coal mines in Kemerovo

Itar-Tass reported that the department of the Rostekhnadzor Federal Service for Supervision of Environment, Technology and Nuclear Management in the Kemerovo region has ordered the directors of all coalmines to suspend the first and second working until a special commission has inspected them.

Rostekhnadzor said that during the inspections specialists will pay attention to sufficient volume of air in the mines, and check methane concentration meters and all controlling instruments. Special attention will also be paid to decontamination projects, and the condition of escape ways and electric equipment.

The probes will be conducted in the course of three days at all Kuzbass mines. The reports on the results will be forwarded to Rosetkhnadzor's department in the Kemerovo region and the mining works will be suspended if any violations are detected.

Gerdau Ameristeel and USW reach agreement at Manitoba mill

Gerdau Ameristeel Corporation announced that it has reached an agreement with the United Steelworkers Union at its steel mill at Manitoba in Canada. The new contract is effective May 24th 2007, and expires on May 23rd 2012.

Mr Terry Danahy VP & chief HR of Gerdau Ameristeel said that "The company is pleased that another contract has been completed with the United Steelworkers. While there are three remaining negotiations at Calvert City in Kentucky, Joliet in Illinois and Sand Springs in Oklahoma, the company continues to work to find common ground to settle remaining agreements at these facilities."

Gerdau Ameristeel is the 2nd largest minimill steel producer in North America with annual manufacturing capacity of over 9 million tons of mill finished steel products. Through its vertically integrated network of 17 minimills including one 50% owned JV minimill, 17 scrap recycling facilities and 51 downstream operations including JV fabrication facilities, Gerdau Ameristeel serves customers throughout North America.

Mechel may take part in Tuvas coal deposits

FIS reported that possible participation of Mechel in the construction of the combine on concentration and processing of Tuva coal was discussed in Moscow at the meeting of the company's management with Chairman of Tuva's government.

Tuva's reserves of coal are estimated at up to 20 billion tonnes. The project to construct a railway branch Kyzyl-Kuragino in connection with the development of the mineral resource base of the republic has drawn the interest of investors to the development of Tuva's coal deposits.

Romania to invest over EUR 2 billion in mining by 2020

According to economy & finance ministry of Romanias Energy Strategy for 2007-2020 Project, the Romanian mining sector needs an investment of over EUR 2 billion over 2006-2020.

According to Romania's Energy Strategy project for 2007-2020, Romania's coal output will stand at 39.4 million tonnes in 2010, of which 35 million tons of lignite and 3.2 million tonnes of pitcoal. The coal production in 2007 is estimated at 41 million tons, the lignite one at 32.6 million tonnes and the pitcoal production at 3 million tonnes. The coal output will drop in 2008 to 35.2 million tonnes, then go up again in 2009 to 38.2 million tonnes and to 39.4 million tonnes in 2020. The coal production is estimated at 37.1 million tonnes in 2015.

Energy Strategy for 2007-2020 outline that the mining field needs some measures to link the output capacities with the demand of coal and uranium for the production of electric and thermal energy. The measures include closing down some unprofitable areas, upgrading and modernizing the equipment in the viable pit coal and lignite mines as well as supporting the pit coal production by granting state financing.

According to a draft Government decision, some 71 mines and quarries should be closed down in the 10th stage of the Program of mine closing down and preservation, with the total expenses for this process amounting to RON 1.455 billion (about EUR 450 million). The estimated lignite production will be reached only by expanding and opening new exploitation areas.

Pike Rivers Greymouth coking coal mine to start in March08

It is reported that Pike River Mining Company is planning to extract USD 2.3 billion worth of coal from Greymouth over the next 20 years. Coal mining is expected to begin in March 2008 and eventually more than a million tons of hard coking coal will be on its way to steel industries across China, Japan and India.

When plans for the mine were announced concerns were raised about how the coal was to be transported to Greymouth for shipping. Locals were worried about the effect of 17 heavy trucks carrying about 100 loads a day. However, a resolution came about when Pike River committed more than AUD 1 million towards upgrading and maintaining the public roads it will be using.

Pike River Mining has recently announced an initial public offering ahead of listing on the stock exchange and is also seeking to raise more than AUD 65 million to finance development of the mine, which is expected to cost AUD 100 million.

Osaka Steel to spend JPY 5 billion in 2007-08

JMB reported that Osaka Steel plans to expend JPY 4.5 billion to JPY 5 billion for the parent company in fiscal 2007 to March 2008.

Osaka plans to add coherent burner to one of its electric furnace Sakai plant, which is one of the 2 furnaces at the plant, for JPY 160 million and renew monitor control system for electric furnace and continuous caster and converts dust collection cooling system for JPY 350 million.

Sherritt upbeat on Dynatec buy

Canadian Press reported that if Toronto based Sherritt International's takeover of Dynatec Corp goes through, its share of annual production from the Moa nickel project in Cuba and the new Ambatovy mine in Madagascar should reach 50,000 tonnes of ore by 2012.

Mr Jowdat Waheed CEO of Sherritt after the mining company's annual meeting last week told shareholders the company is bullish about nickel and using long term price assumptions of CAD 6 a pound, which it believes makes the Ambatovy project a good buy. He said "We clearly have taken a view that long term nickel prices are going to be sufficiently high to support the project.

Mr Ian Delaney executive chairman told shareholders that The Ambatovy project is a good deal for the company as it can apply knowledge gained from extracting nickel from its open pit, lateritic ore body in Cuba to the Madagascar operation. We invented these processes. We licensed these processes. We are absolutely confident. We invented these things and we know how to do it."

For Sherritt, the prize asset in the deal is Dynatec's holdings in the USD 2.5 billion Ambatovy project, which is expected to begin operations by about 2010.It would make the company one of the world's leading producers of lateritic nickel at a time when nickel prices are at an all time high. The company has said the project also positions it as a low cost producer of lateritic nickel.

Pakistans GDP in 2006-07 grew at 7.02%

APP reported that Pakistan's real GDP has grown up by 7.02% YoY in 2006-07 as against 6.61% in 2005-06 This year's growth has been supported by 5% growth in agriculture sector with large scale manufacturing growing by 8.8% and services sector by 8%. The total size of economy in 2006-07 stood at USD 146.3 billion and added per capita income in 2006-07 has reached USD 925 as against USD 833 last year.

Mr Shaukat Aziz Prime Minister of Pakistan termed the 7.02% growth as robust and said that it reflected the government's prudent economic policies and shows that Pakistan is on the right track and is heading in the right direction.

Mr Aziz added that the growth numbers are based on the National Accounts Committee, which met with secretary statistics division in chair and approved the national accounts for the year 2006-07.

Krakatau Steel and Indonesia Power secure syndicated loans

The Jakarta Post reported that Indonesia's PT Krakatau Steel and PT Indonesia Power have successfully secured syndicated loans of USD 50 million and USD 55 million respectively from local and foreign banks.

HSBC Amanah Syariah, HSBC's sharia unit in Indonesia, arranged the USD 50 million international sharia financing syndication for state owned Krakatau Steel. HSBC said the syndication facility was signed in Dubai, United Arab Emirates early last week. Banks participating in the loan syndication included a number of Islamic banks from the Middle East and Asia.

HSBC said its sharia unit again proven its strong distribution channels in the Middle East and its ability to assist Indonesian companies with tapping into global Islamic finance. The bank said the Krakatau syndication which had been oversubscribed represented another important milestone for the Indonesian sharia banking market. It said "It also reflects our strong commitment to sharia business in Indonesia."

PT Indonesia Power a subsidiary of state-owned electricity company PLN secured a standby letter of credit facility worth USD 55 million from Bank Internasional Indonesia, Citi Indonesia and Standard Chartered Bank to purchase gas for its Grati combined cycle power plant in Pasuruan East Java