India to set up Steel Development Research Mission

It is reported that a National Steel Development Research Mission is going to be set up soon jointly by public and private sector steel majors for research and development in steel keeping in view the huge expansion plans of the domestic steel sector. . It will have a corpus of INR 60 crore to INR 65 crore that would be contributed by the steel companies.

Mr RS Pandey secretary steel on the sidelines of Confederation of Indian Industry (Eastern Region) organized National Seminar on Opportunities in the Steel Industry in Kolkata said that the facilities at existing institutions would be leveraged to promote R&D in the steel sector. Mr Pandey said that there is little indigenous research activity in the country, which has resulted in high costs. He said “In global comparison, the Indian steel industry will become uncompetitive if research is not undertaken to develop low cost, environment-friendly technology. The mission will be in virtual mode and won’t set up any new institutes. The government’s role will only be that of a facilitator.”

Mr Pandey said that “In the first quarter of the current fiscal, domestic steel production had grown by 12%. The domestic steel production target had been pegged at 80 million tonnes during the 11th Plan. This was expected to go up to 120 million tonnes by 2015-16, and 200 million tonnes by 2019-2020. Over the next 15 years, an investment of INR 600,000 crore is expected to be made in the domestic steel sector. This would necessitate adequate focus on infrastructure that would be required by a growing steel industry.”

Mr SK Roongta chairman of Steel Authority of India Limited said that it would be imperative to ensure that the growth of the steel sector should take place in a cost effective manner. He said “The steel industry is faced with a shortage of the right kind of manpower. It would be important to address this issue in view of the fact that, by 2015, India would become the second-largest producer of steel in the world, from 5th largest at present.”

BHEL to supply 1500MW power units for Jhajjar plant

Bharat Heavy Electricals Limited announced that under international competitive bidding, it has won orders for the supply and installation of the main plant package at the upcoming Jhajjar Super Thermal Power Project in Haryana, involving three units of 500 MW each. Valued at over INR 29,000 million, the orders have been placed on BHEL by Aravali Power Company Private Limited, which is a JV of National Thermal Power Corporation, Indraprastha Power Generation Co Ltd and Haryana Power Generation Co Ltd.

The Jhajjar plant involves 3 units of 500MW each and would add 36 million units of power every day to Delhi and Haryana Grids after the commissioning. The power from the first unit will also be used for the Commonwealth Games to be held in Delhi in 2010.

This is the highest value boiler and turbine generator package contract for a single project ever received by BHEL. BHEL said that it has so far won orders for 58 thermal sets of 500MW capacity out of which 31 have been commissioned. It has fully established state of the art technology for manufacture of thermal sets up to 500MW rating and has the capability to manufacture sets up to 1,000MW rating.

IPC 144 imposed at Jagatsinghpur to deter anti POSCO faction

IANS reported that local administration has imposed prohibitory orders in a village in Orissa's Jagatsinghpur district where both the supporters and protestors of the proposed steel project by POSCO were to hold rallies.

Mr YK Jethwa superintendent of police of Jagatsinghpur district said that to avoid any untoward incident in the area, the district administration clamped prohibitory orders under section 144 of Indian penal code and prohibited any public meeting within 2 kilometer of the bazaar. He added that "We have also deployed two platoons of police force to avoid any untoward incident."

POSCO Pratirodah Sangram Samiti, which is opposing the project has observed August 9th 2007 as kranti divas and had decided to organize a public meeting at Balitutha bazaar. They had decided to conduct a mass rally in which people from several areas including the other affected villages such as Nuagaon, Dhinikia and Gadakujnag panchayat were scheduled to congregate. The anti POSCO activists had also planned to involve school children and village women to make the meeting a success. More than 3,000 people were expected to attend the meeting at Balithutha, some 30 kilometer from the port town of Paradeep.

On the other hand, supporters of the POSCO plant under the banner of Purbanchala Bikash Parishad and POSCO Jansampark Bikash Parishad were also scheduled to organize a public meeting at the same village on August 9th 2007. They had announced this meeting to protest the activities of the anti POSCO group. They alleged that the anti POSCO activists were terrorizing the local people who were supporting the project.

NTPC announced an INR 13,792 crore CAPEX

It is reported that National Thermal Power Corporation Limited has lined up an INR 13,792 crore CAPEX plan for 2007-08 in order to increase its generation capacity to over 75,000MW by 2017 from the present level of 27,904MW.

NTPC would increase its generation capacity with investments in Greenfield projects, Brownfield expansions, JVs and acquisitions. It would also consolidate its position in the hydro sector, coal mining and power trading besides diversifying into oil or gas exploration, liquefied natural gas value chain, renewable and non conventional power projects and add at least 2,000MW of nuclear capacity by 2017.

Mr T Sankaralingam CMD of NTPC said that it would go for 22,100MW capacity addition during the 11th Plan period of 2007-12 and out of this, projects with capacity of 13,360MW have been under construction and 8,740MW of projects are under tendering stage.

BALCO to set up a new aluminum smelter in Chhattisgarh

It is reported that UK based Vedanta Resources plc’s subsidiary Bharat Aluminium Corporation has signed a MoU with Chhattisgarh government for setting up a new 650,000 tonnes per annum aluminium smelter. The new unit will be setting up in Chhattisgarh’s Korba town with an investment of INR 81 billion (USD 2 billion).

Bharat Aluminum, in a statement said that "On completion, this will become the largest single location aluminum plant in India with a combined capacity of 1 million tonnes per annum."

Mr Anil Agarwal chairman of Vedanta said that "We aim to become the lowest cost producer of aluminum in the whole world."

Bharat Aluminum Corporation has already run 2 smelters in Korba, which have an aluminum production capacity of 345,000 tonnes per annum.

Mr Baijal appointed as chairman of TATA Sponge

TATA Sponge Iron Limited’s board of directors has announced the following changes

1. At the annual general meeting held on June 25th 2007, Mr Prakash Chandra Parakh, Mr Suresh Thawani and Mr Sudhir Deoras have been appointed directors by board members from their earlier post of additional directors.

2. Mr B Muthuraman chairman of TATA Sponge has stepped down from the board as a director as well as the chairman with effect from July 23rd 2007.

3. At the meeting of board of directors held on July 23rd 2007, Mr AD Baijal, an existing non executive and non independent director, has been appointed as its chairman with effect from July 23rd 2007.

Usha Martin shuts down BF at its Jamshedpur plant

Usha Martin Limited announced that it has taken shut down of its mini blast furnace at its steel plant in Jamshedpur but is expected to start in next 7 to 10 days.

The other sections of the steel plant continue to function in normal course.

JSPL may enter into aviation business

BL reported that Jindal Steel & Power Limited is preparing to enter aviation sector as its board of directors has decided to alter the other object clause of its memorandum of association by inserting a paragraph related to the running of the aviation business.

India’s private airlines are trying to en cash growing potential in air travel. According to Airports Authority of India, during April to May 2006-07, Indian airports saw 19.3 million domestic and international passengers up by 27.2% YoY over the April to May 2005-06 period with 15.17 million passengers. Domestic passenger growth during the period is higher at over 30% YoY, while international passenger growth is 17% YoY.

Regulatory authority for road development called for

It is reported that the Federation of Indian Chambers of Commerce and Industry has suggested setting up of an independent regulatory authority, which will have an efficient arbitration mechanism to ensure the speedy development of road and highway network.

Federation of Indian Chambers of Commerce and Industry feels that an independent regulator will help cut down time and cost over runs and other delays due to land acquisition, law and order issues obtaining clearances and removing encroachments.

The Federation, in a statement said that "The power to take decisions on other matters should be delegated at project superintendent level for speedy implementation of projects."

It wanted project awarding authorities to stick to the original design and refrain from altering the design of projects, unlike the Delhi to Gurgaon expressway project that got delayed because of change in design.

TATA Steel provides health care infrastructure in rural Orissa

It is reported that TATA Steel has dedicated 6 air conditioned cabins to the community health centre in Koira in Orissa to provide better health care for the people. The community health centre Koira is the only health centre catering to a population of around 35000 spread over 10 panchayats having 180 villages. Prior to the newly constructed AC cabins the health centre did not have a single cabin for the pregnant women seeking treatment in the centre. This service by TATA Steel would enable the patients of this region to have easy access to health care facilities.

The newly constructed cabins were inaugurated by Mr John Deep sub collector of Bonai and Dr VP Sinha GM operations FA&M division of TATA Steel Limited.

In addition to AC cabins, TATA Steel has also provided all the required logistics like patient bed with mattress, bed side locker, adjustable over bed table, attendant bed with mattress, AC, geyser, water cooler, refrigerator and telephone. The total project cost is INR 1.7 million.

TATA Steel has been upgrading health care facilities in the rural parts of Orissa in general and its operational locations including construction of an intensive care unit in Bolangir and organizing a mega health camp in the remote areas of Malda in the Koira block, where more than 1500 patients were treated.

Gujarat NRE update on expansion plans

DNA reported that Gujarat NRE Coke Limited is increasing production of low ash metallurgical coke from 1 million tonne per annum to 1.25 million tonne per annum with an investment USD 20 million by 2009. India imports around 22 million tonnes of coking coal per annum and is expected to rise to 64 million tonnes by 2011-12.

As per report, Gujarat NRE will also increase production of coking coal from its NRE No 1 colliery from 1 million tonne per annum to 4 million tonne per annum by 2012, even as its NRE Avondale colliery is expected to commence production in 2010 adding 2 million tonne per annum to the total.

It is also acquiring 4 new bulk carriers on long term time charters with an option to buy, which would be put into service progressively from 2010.

Gujarat NRE has also chalked out a strategy to reduce operational costs and take its business at the next level by setting up a waste heat recovery power plant of 30MW capacity based on coke batteries. The plant would be operational by the end of 2009 with an investment of USD 45 million.

Mr Arun Kumar Jagatramka VCMD of Gujarat NRE Coke said that “It is setting up captive jetty at Bellikeri in Karnataka and railway siding at Dharwad, which would improve logistics and reduce cost.”

It expects to touch the INR 1,000 crore turnover mark by the fiscal end as coking coal prices have increased 30% since January 2007.

Suzlon commissions 6 wind turbines in Portugal

It is reported that Suzlon Energy has completed the commissioning of 6 turbines and the mechanical erection of an additional of 9 turbines as installed at its Penamacor projects in Portugal. This is Suzlon’s first installation and commissioning of wind power projects in Europe.

The projects cover 39.9MW of wind turbine capacity with TECNEIRA Technologies Energeticas for 2 wind farm projects in the Penamacor region of Portugal. The orders are supplied with Suzlon’s largest product the S88-2.1MW wind turbine.

Stemcor sells 90% stake of Australian Bulk Minerals to Shagang Mining

World’s largest independent steel trader Stemcor announced that it has completed the sale of a majority stake in its Tasmanian iron ore mine and pellet plant Australian Bulk Minerals to Jiangsu Shagang Group Corporation Limited’s Australian subsidiary Shagang Mining Private Limited. Shagang has now acquired 90% of Australian Bulk Minerals, the holding company for the 2.5 million tonne per year Savage River iron ore pellet operations, which Stemcor purchased from Canadian company Ivanhoe Mines in February 2005.

The sale follows the outcome of a feasibility study to determine the possibility of extending operations at Savage River beyond 2009. The study concluded that it is technically, environmentally and financially feasible to extend the life of the mine until 2023, producing an additional 30 million tonnes of pellet. Stemcor had been seeking a JV with a major end user willing to share the capital costs associated with the mine life extension project and for whom a long term secure supply of high quality pellet would represent a real and substantial strategic benefit.

Australian Bulk Minerals’ management team will remain with the business and Mr Paul Whitehead will continue as a board director. A Shagang Group representative will take over as chairman of Australian Bulk Minerals.

Mr Paul Whitehead MD of Stemcor Australia and chairman of Australian Bulk Minerals said that “Thanks to the management and employees of Australian Bulk Minerals, Savage River has proved a great success over the past 2 and half years. With Shagang as the new majority owner, I have every confidence that it has an even brighter future and am delighted that Stemcor will continue to participate in this thriving business with a 10% share.”

ThyssenKrupp Q3 pretax earnings up by 51% YoY

ThyssenKrupp has posted earning before tax of EUR 1,219 million in April to June 2007 quarter up by 51.2% YoY a against EUR 806 million in the April to June 2006 quarter, representing another quarterly earnings record.

The highlights for the April to June 2007 quarter and the first 9 months of 2006-2007 are
1. Order intake recoded at EUR 15.6 billion in April to June 2007 quarter up by 25% YoY, while order intake in the first 9 months of 2006-07 is EUR 42.8 billion as against EUR 36.8 billion in the first 9 months of 2005-06
2. Sales rose by 11% YoY to EUR 13.4 billion in April to June 2007 quarter and in the first 9 months the first 9 months of 2006-07 to EUR 38.9 billion as against EUR 34.9 billion in the first 9 months of 2005-06
3. EBITDA improved from EUR 1,290 million in April to June 2006 quarter to EUR 1,728 million in April to June 2007 quarter and in the first 9 months of 2006-07 EBITDA increased from EUR 3.5 billion to EUR 4.3 billion.

In the first 9 months of the current fiscal year, ThyssenKrupp has thus achieved earnings before taxes of EUR 2,853 million up by 42.3% YoY as against EUR 2,004 million in the same period last year.

Dr Ekkehard Schulz executive board chairman of ThyssenKrupp AG said that “We expect the overall positive performance to continue in the further course of the year. For fiscal year 2006-2007 we anticipate an increase in sales to over EUR 50 billion. Based on our better than expected earnings performance in the first 3 quarters of fiscal 2006-2007, we currently forecast full year earnings before taxes and major nonrecurring items of around EUR 3.6 billion including nonrecurring items EUR 3.2 billion.”

Dr Schulz added that “By 2010 the aim is to achieve sustainable earnings before taxes and major nonrecurring items of EUR 4 billion on sales of around EUR 60 billion. In the longer term, particularly after the completion of our major investment projects in North America, we expect sales in the region of EUR 65 billion and earnings before taxes and major nonrecurring items of EUR 4.5 billion to 5 billion.”

ThyssenKrupp is one of the world's major technology groups with sales of EUR 47.1 billion and 188,000 employees in over 70 countries. The three main business areas of steel, capital goods and services, organized in 5 segments namely steel, stainless, technologies, elevator and services.

US ITC votes to continue case on light walled rectangular tubes

The United States International Trade Commission determined that there is a reasonable indication that a US industry is materially injured or threatened with material injury by reason of imports of light walled rectangular pipe and tube from China that are allegedly subsidized and imports of that product from China, Korea, Mexico and Turkey that are allegedly sold in the United States at less than fair value.

As a result of the ITC's affirmative determinations, the US Department of Commerce will continue to conduct its investigations of imports of light walled rectangular pipe and tube from China, Korea, Mexico, and Turkey, with its preliminary countervailing duty determination due on or about September 20th 2007 and its preliminary antidumping determinations due on or about December 4th 2007.

The imported product subject to these investigations is certain welded carbon quality light walled steel pipe and tube, of rectangular including square cross section, having a wall thickness of less than 4 mm.

The petitioners include Allied Tube and Conduit of Harvey in Illinois, Atlas Tube of Plymouth in Michigan, Bull Moose Tube Inc of Concord at Ontario in Canada, California Steel and Tube at City of Industry in California; EXLTUBE at Kansas City in Missouri, Hannibal Industries at Los Angeles in California, Leavitt Tube Co at Chicago in Illinois, Maruichi American Corp at Santa Fe Springs in California, Searing Industries at Rancho Cucamonga in California, Southland Tube at Birmingham in Alabama, Vest Inc at Los Angeles in California, Welded Tube of Concord at Ontario in Canada and Western Tube and Conduit at Long Beach in California.

Preliminary investigations were instituted by the US ITC on June 27th 2007.

MMK acquires 37.5% of Intercos-IV

Magnitogorsk Iron & Steel Works announced that it acquired 37.5% of St Petersburg's CJSC Intercos IV, a large manufacturer of large sized tooling for the automotive industry.

Intercos IV was established in 1992 by a group of individuals that were official suppliers of Ford Europe, Ford Russia and Volkswagen. It is a manufacturer of large size stamping dies weighing up to 70 tonnes and stampings for the automotive and white goods sector. The company supplies its products to many car plants in Russia and the CIS.

Through the acquisition of a controlling interest in MMK will give further impetus to the manufacturing company’s development. It is expected that by 2011 St Petersburg will become home to assembly plants of Ford, Nissan, Toyota and other global auto makers producing up to 1 million cars per year.

MMK said that the acquired interest is also in line with MMK’s strategic plans of becoming a supplier for the automotive industry. The transaction will secure MMK’s presence on the steel markets of Russia’s North West and make it a prominent supplier of dies and stampings for international companies operating in Russia.

Wire Rope Corp to buy CASAR Drahtseilwerk Saar GmbH

Wire Rope Corporation of America Inc has announced that it has entered into a definitive agreement to acquire CASAR Drahtseilwerk Saar GmbH and certain other assets comprising its worldwide business. The transaction is subject to normal closing conditions and is expected to close in approximately 20 business days.

WRCA employs approximately 1,500 people and is headquartered at St Joseph in Missouri, with manufacturing plants, distribution facilities and research and development centers in the US, Canada and Mexico. Wire Rope Corporation of America is the only major wire rope manufacturer in the world to be API certified QPL Qualified and ISO-9001 2000 registered. WRCA’s products are recognized throughout the world and used in a wide range of market applications including oil and gas exploration; surface and deep mining; construction; and specialty lifting and suspension applications.

Mr Ira Glazer CEO of Wire Rope Corporation of America said “During the past three years, our company has followed a growth strategy to expand Wire Rope Corporation of America global manufacturing presence and further diversify our end markets and geographic mix. The CASAR acquisition accomplishes another leg of this strategy by firmly establishing Wire Rope Corporation of America in Europe. CASAR is one of the finest wire rope companies in the world and a leader in quality and technology. We plan to have a seamless transition of CASAR’s customers and employees as we carry forward CASAR’s tradition of engineering excellence. Finally, I would like to thank the Verreet family for their support in completing this transaction.”

The acquisition of CASAR follows the purchases of Aceros Camesa in Mexico and Wireline Works in Canada. In 2006, Wire Rope Corporation of America also formed a joint venture with Wuhan Iron and Steel in China to build the world’s most modern wire rope manufacturing facility, which is scheduled to open in April 2008.

Iron ore prices in China break all records

It is reported that in the last 2 weeks, the import price of iron ore into China increased in a large scale because of the large demand. The report added that the CIF price of 63.5% India ore fines has been up to USD 118 to USD 119 per tonnes from the USD 106 per tonnes of the middle July 2007.

Experts argue that the trading volume is still huge although the iron ore price is the highest of the history as the steel makers do not want wait and watch. The main reasons are

1. In this summer, the steel prices in China kept on rising. In early August, compared with the last month, price of steel billets increased by 5% and deformed bar 5% to 6%. In the last three months, the production of the pig iron increased much, which resulted to the great demand of the iron ore.

2. For June 2007, the import of iron ore kept down and was less than that of May 2007. The import volume of the second quarter was 12.3% QoQ which is a sharp contract to the demand of the iron ore.

The International Iron Ore Price Conference 2008 will be held in the H2 of 2007. Every organization assures that the iron ore will go on rising with the advancing of marine freight and the continuously up rising of the Indian origin. It is said that the three biggest mine companies are planning to decrease the production of the forth quarter, which will make the Chinese steel and iron enterprises rush to purchase import mine.

Interpipe gains approval from oil companies in MEA

Arabianbusiness.com reported that Interpipe has gained pre qualification status from Kuwait Oil Company and the Abu Dhabi National Oil Company. As per report both companies have awarded this status to Interpipe's mills Interpipe Niko Tube and Interpipe NTRP.

As a part of the pre qualification process, representatives of Kuwait Oil Company and Abu Dhabi National Oil Company carried out a technical audit and examined Interpipe's pipe producing technologies and quality management system.

Mr Rostyslav Chudnovsky director of tubular sales for the oil and gas industry of Interpipe said that “The audit process lasted a year. We believe that KOC and Abu Dhabi National Oil Company are the standard bearers in the Middle East market. Being included in their reference lists opens the door for future partnership with other oil producing companies. The pre qualification will give us the opportunity to increase sales of our products to end users in the region."

Interpipe Niko Tube has been approved for inclusion in the Kuwait Oil Company's approved list of manufacturers for oil and gas pipes produced in accordance with API 5CT. Both Interpipe Niko Tube and Interpipe NTRP have also gained the same pre qualification from Abu Dhabi National Oil Company.

Anglo American plans USD 4 billion buyback

Mining and natural resources company Anglo American Plc recently announced a new USD 4 billion share buyback program for the year on the back of continued strong cash flows.

The company said that about 61% of its USD 3 billion share buyback program, announced in February 2007, has been completed, with a repurchase of nearly USD 1.8 billion shares as at August 2nd 2007.

Usiminas Q2 net income up by 14% YoY

Brazilian flat steelmaker Usiminas announced that its April to June 2007 net income was BRL 802 million (USD 420 million) up by 14% YoY as compared to BRL 704 million in April to June 2006 quarter. Its net revenue in April to June 2007 quarter went up by 11% YoY to BRL 3.38 billion due to better realized prices in the period and a better product mix.

Average steel prices realized by Usiminas and its subsidiary Cosipa were 15% YoY higher compared to 2006. EBITDA increased to 1.23 billion from BRL 1.05 billion in April to June 2006.

Meanwhile, total sales volume fell by 2% YoY to 1.98 million tones in April to June 2007 quarter as compared to 2.03 million tones in April to June 2006 quarter, while overall crude steel production reached 2.19 million tonnes in April to June 2007 quarter.

For January to June 2007 period, Usiminas posted net income of BRL 1.44 billion up by 38%YoY from January ot June 2006, while net revenues in the period rose by 12% YoY to BRL 6.72 billion. EBITDA jumped by 23% YoY to BRL 2.41 billion as compared to BRL 1.95 billion in January to June 2006.

Usiminas said that sales volume through June 2007 slipped by 2%YoY to 3.92 million tones as compared to June 2006 while crude steel output remained steady at 4.3 million tones. Flat steel demand in the domestic market in January to June 2007 grew a significant by 16% YoY compared to January to June 2006. The growth was fueled by the automobile and household appliance sectors, among others.

Usiminas and Cosipa have combined installed capacity of 9.5 million tones per year.

Baosteel doubles ship orders from COSCO

Bloomberg reported that Shanghai Baosteel Group Corp has doubled its orders from China Ocean Shipping Group Co. The report said Baosteel has doubled its orders to four 300,000 tonnes ships from COSCO so as to transport iron ore from Brazil. Under the accord signed August 4th 2007, two ships will be added, each carrying 1.14 million tonnes of ore per year from Brazil for a period of 20 years.

Baosteel said in a statement that the two ships are in addition to the previous two ships agreed on in November 2004. It said it would lease another 70,000 tonnes carrier from COSCO to carry 450,000 tonnes per year of imported coal for three years. It also said the first of the four ships will begin operations in 2008.

This new agreement, which allows Baosteel to lease ships on a longer termed contract, may help the steel maker cut transport costs.

Ukrainian iron ore exports in 7 months down by 4.8% YoY

The association of Ukrainian mining enterprises Ukrrudprom told Intefax that Ukrainian iron ore exports fell by a preliminary 4.8%YoY in January to July 2007 to 11.011 million tones.

The association said iron ore concentrate exports fell 7.5% YoY to 2.047 million tons, while pellet exports grew 0.6% YoY to 5.183 million tonnes. sintering ore exports fell, by 10.1% YoY to 3.781 million tonnes.

Ukraine exported 1.745 million tonnes of iron ore in July 2007 including 327,000 tonnes of concentrate, 595,000 tonnes of sintering ore and 823,000 tonnes of pellets.

SA examining sites for proposed steel plant

South African media reported that possible sites for a new steel plant under investigation by the South African government include Saldanha on the west coast, Coega in the Eastern Cape and Maputo in Mozambique. A feasibility study on the viability of establishing a new steel plant is due to be completed by next March 2008 and a team has been established to assess the viability of different locations and technologies.

The new facility has been mooted as a competitor to ArcelorMittal South Africa, which has locked horns with the government over a developmental model for steel prices. The proposed plant is referred to in the department of trade and industry's industrial policy action plan which forms part of the long awaited national industrial policy framework released last week.

Mr Nimrod Zalk chief director of the department's of competitive strategies was reluctant to disclose the sites being considered, but confirmed that Maputo was one option. A plant there could source iron ore from reserves in Limpopo. He added that the new plant would have to be situated fairly close to iron ore supplies. And, depending on its scale, it should be situated at the coast to export cost effectively and two or three locations were being examined.

Analysts said the only viable South African sites were Coega and Saldanha linked by a dedicated railway line to vast iron ore deposits at Sishen in the Northern Cape. There has been talk of upgrading the general freight railway line between Sishen and Coega to reduce reliance on the single channel to Saldanha.

3 workers plunge to death in US coal mine

It is reported that 3 construction workers plunged to death in an airshaft of a coalmine in Princeton of Gibson County in Indiana State of US.

Authorities said that a huge sinking bucket was carrying the three workers down to the construction site at the bottom of the 183 meter deep airshaft, which is still under construction. Suddenly, the bucket lost control and plunged to the bottom of the vertical shaft, killing the three workers instantly. There were no other casualties and all three bodies have been retrieved.

The workers belonged to a construction company, which is digging a new airshaft for the mine. The airshaft is being built as part of an expansion at the coal mine, which began production in July 2000.

The state government has dispatched labor and mine safety officials to the scene to investigate the incident. A representative of the mine said mine officials checked the bucket every day and are trying to figure out what happened.

The mine, owned by Tulsa Oklahoma based Alliance Resource Partners, is about 30 miles north of Evansville. According to the website of the Alliance Resource Partners, the mine's parent company, the mine began production in November 2000,with a throughput capacity of 700 tonnes of raw coal an hour. In 2006, the company produced more than 3.5 million tonnes of coal, ranking second among the state's coal producers, according to the Indiana Coal Council.

Anglo American’s nickel output dips in H1 2007

Metals Insider reported that Anglo American has a slightly dip in attributable nickel production to 12,900 tonnes in the first half of 2007 from 13,700 tonnes in 2006 period.

Anglo American said production of nickel in ferronickel at the company’s majority owned Loma de Niquel operations in Venezuela slid to 8,200 tonnes in the period from 8,800 tonnes in 2006 period due to a combination of an electric furnace outage, unscheduled maintenance and labor disruption

According to Anglo, at the Codemin ferronickel operations in Brazil slipped to 4,700 tonnes from 4,900 tonnes. It said that it has now invested USD 500 million out of total USD 1.2 billion CAPEX in its Barro Alto project in Brazil. The 36,000 tonnes per year ferronickel project is on target for first production early in 2010.

SA miners face new exports regulations for EU

South African Chamber of Mines announced that South African mining companies exporting products to the European Union would have to register with Registration, Evaluation and Authorization of Chemicals program if they are to continue exporting to the EU. Affected products will include copper, gold, iron, lead, manganese, nickel platinum and zinc. REACH legislation came into effect on July 1st 2007 and will run for ten years.

Chamber of Mines said "REACH will affect exports to the EU, which has about half a billion people, with an approximate value of USD 12 billion per year from sub Saharan Africa including South Africa"

Mr John Atherton program director of International Council on Mining and Metals said that companies exporting high volume or high concern products would need to register with the REACH program. He said “In brief, no registration means no markets.” Mr Atherton said exports of more than 1 tonne with a chemical composition to European countries are required to register with REACH while those exporting over 100 tonne exports will also need to ensure that their products are evaluated. Those with exports of over 1 000 tons will in addition need to be authorized for exports.

The Chamber of Mines said the implementation of REACH followed the commitment made by South Africa and other United Nations member countries at the 2002 World Summit on Sustainable Development in which all countries committed themselves to responsible management of chemicals including mining products such as ores, ore concentrates, metals, metal compounds and alloys. The aim of REACH is to improve the protection of human health and the environment through the better and earlier identification of the properties of chemical substances. What the regulation does is give greater responsibility to industry to manage the risks from chemicals and to provide safety information on the substances.

Manufacturers and importers will be required to gather information on the properties of their substances, which will help them manage them safely, and to register the information in a central database. Once captured, the information will be stored at the European Chemicals Agency, which is expected to test and review some 30 000 chemicals with the aim of banning those that pose a significant health threat and finding safer substitutes.

The European Commission estimated the new law would save Europe EUR 54 billion over 30 years, as less people would become ill as a result of exposure to dangerous chemicals.

Rescue continues for Utah coal miners

It is reported that the chance of finding 6 trapped coal miners alive is beginning to fade although some at the scene remain adamant that there is no reason to give up hope as yet.

Rescuers drilling a 2 inch diameter hole broke through and tested the air and dropped a microphone hoping to hear even faint noises or signs of life. But roughly 10 hours later hearing nothing, they gave up. Still, the rescue goes on.

While the first air quality tests taken 1800 feet below ground in the Crandall Mine were good, three more tests were not. Dashing hopes that the miners could have survived miraculously caught in an air bubble. Mr Richard Stickler of Mine and Safety Health Administration said "Normal oxygen is 21% roughly. Once you get down to 15% you start having effects and 7.5% would not support life very long.”

Mr Stickler added that "There's no reason to lose hope. There are still certainly possibilities that these miners are still alive because we don't know for sure where this bore hold drilled in.”

Now attention turns to a high resolution camera to be dropped through a new, wider hole after a drill breaks through August 10th 2007, possibly answering the question that is there any chance the six miners survived the August 6th 2007 cave in.

SCM transfers 36% Pivnichny ROK stake to Metinvest

Ukrainian Journal reported that Donetsk based System Capital Management has transferred a 36.33% stake in Northern Mining and Beneficiation Plant or Pivnichny GOK in Kryvy Rih in Dnipropetrovsk region to Metinvest Group, which manages the mining and metallurgic sector of SCM.

A joint statement of SCM and Metinvest said that the stocks were transferred as a part of the business restructuring.

Mount Gibson gets mining approval

Mount Gibson Iron Limited recently announced that the Western Australian minister for the environment has advised that the Mt Gibson Iron Ore and Infrastructure Project can proceed. Official granted approval for the project to proceed from the date and federal governments is expected within 7 weeks.

Mr David Templeman environment minister of WA said "In severing the link between Extension Hill and the classification of the surrounding land, I have effectively given the green light to this important project. Secondly, in placing only a small part of Mt Gibson Range into an A Class Reserve, the majority of this resource rich area is open for business."

Mount Gibson management will seek Board approval to commence Direct Ship Ore operations as soon as practicably possible with the expectation that production will commence late 2008.

Mount Gibson intends to transport Direct Ship Ore by road to Perenjori where it will be loaded onto rail wagons and transported to the Geraldton Port for shipment to Mount Gibson's customers. Mount Gibson will seek approval from the relevant agencies to transport Direct Ship Ore to Perenjori.

Mr Luke Tonkin MD of Mount Gibson welcomed the minister's decision said that "The Minister's decision effectively decouples the Project approval from conservation reserve status and allows the Project to proceed which provides greater certainty to Mount Gibson shareholders, the local community and broader stakeholders."

The Environmental Protection Authority had recommended that mining in the area be restricted because of concerns it could put endangered plant species Darwinia masonii and Lepdosperma sp at risk. In its appeal to the minister, Mount Gibson claimed that the methodology used by the EPA to assess the significance of endangered floral communities in the Mt Gibson area was fundamentally flawed, and threatened to halt future iron ore exploration and mining activities throughout the Mid West region of Western Australia.

Metal One to acquire stakes in Thai Metal Trade Public Company

Thai Metal Trade Public Company Limited has announced that Japanese Metal One Company has acquired 5% stakes in Thai Metal Trade Public Company Limited.

The released said Thai Metal Trade Public Company Limited had already signed the cooperation agreement with Metal One, which have three objectives
1 Thai Metal Trade Public Company Limited and Metal One will cooperate together in global steel market development.
2. Metal One and its own companies will be responsible to export steel cargo to Thai Metal Trade Public Company Limited.
3. Thai Metal Trade Public Company Limited and Metal One will jointly develop the new steel products and will use its new technology producing high valve added steel products to offer their customers.

Both Thai Metal Trade Public Company Limited and Metal One are steel trading companies and it is expected this integration will bring several benefits to Thai Metal Trade Public Company Limited.

Thep Viet inaugurated new plant in Ba Ria-Vung Tau

It is reported that the Ho Chi Minh City based Thep Viet Joint Stock Company put into action a 500,000 tonne steel ingot plant in the southern province of Ba Ria Vung Tau on August 8th 2007.

The first batch of 60 tonnes of steel ingots was produced under Europe’s advanced Consteel technology lauded as both economical and environmental friendly.

The plant is one of the company’s four investment projects with a combined investment capital of USD 300 million covering a total area of 55 ha in the Phu My 1 Industrial Zone. The three others include an electrode melted steel ingot plant with a capacity of 600,000 tonne per year, a 500,000 tonne plant to produce steel ingots and a 500,000 tonne steel rolling mill.

VDM Wylie & Skene bags BHPB iron ore contract

VDM Group has announced that its subsidiary, Wylie & Skene Pty Ltd has been awarded a building contract at BHP Billiton Iron Ore’s Area C mine site.

The project includes a high quality 1360 mm transportable building complex, car parking, landscaping, refurbishment and relocation works for the west wing extension of the non-process infrastructure works administration complex. The USD 6 million contracts are scheduled to commence immediately and be completed in December 2007.

Mr Mark Nagle MD of Wylie & Skene’s said that “We are delighted to have secured this additional work at Area C for BHP which continues Wylie & Skene’s long running relationship with the project team. We consider that the Area C administration building sets new standards in mine site support facilities and we are honored that BHP has selected Wylie & Skene to carry out the installation works. Wylie & Skene has worked at Area C for several years on project which include the installation of various part of the Packsaddle accommodation village and facilities, the heavy vehicle workshop and associated facilities, the heavy vehicle wash down facility, the ammonium nitrate store and the ore handling plant workshop”

The project extension takes the total value of projects awarded to Wylie & Skene by BHP at Area C to USD 15.4 million.

VDM Group is structured into three operating divisions namely, Consulting, Construction and Resources and Infrastructure.

ThyssenKrupp names Alabama management team

It is reported that ThyssenKrupp Steel USA LLC announced the senior management team to oversee the construction and operation of its stainless steel facility at Calvert in Alabama. The facility is part of a USD 3.7 billion steel and stainless steel processing complex scheduled to begin operations in 2010.

ThyssenKrupp Stainless USA said that the Stainless team will be led by Mr Ulrich Albrecht Frueh, who has served in a variety of leadership positions within ThyssenKrupp Stainless companies including a European key innovation project and the stainless steel melt shop operation at Krefeld in Germany.

In addition Mr Michael Lutter was also named as CFO. Mr Lutter will brings 16 years of experience including seven with ThyssenKrupp AG and ThyssenKrupp Stainless AG in corporate finance, private equity and mergers and acquisitions.

ThyssenKrupp Stainless USA also announced that Mr Russell Wilkie would serve as head of site preparation.

Mr Michael Rademacher VC of the executive board of ThyssenKrupp Stainless said that “Mr Ulrich and Mr Michael have proven to be exceptional leaders during their years of service with ThyssenKrupp.” He added that "The new stainless facility represents a very important component of our company's global growth strategy. We are confident that our new management team will successfully lead the way."

In May 2007, ThyssenKrupp announced that it would build a new state of the art carbon and stainless steel processing facility in Alabama. The facility will process carbon steel and stainless steel for high value applications by manufacturers in the US and throughout North America. The new plant complex, which is expected to begin operations in 2010, is considered to be one of the largest private industrial development projects in the United States over the next decade. During construction, the facility is expected to create up to 29,000 jobs. When fully operational the facility will employ 2,700 people.

Vietnam steel producers lower steel prices

VietNamNet Bridge reported that several Vietnam’s steel producers have lowered their selling prices by VND 100,000 per tonne but they said that it was not because of the tax reduction.

According to the Vietnam Steel Association the prices of Vinausteel rolled steel and VPS bar steel decreased by VND 100,000 per tonne on August 8th 2007, the same day the decision on lowering the import tax rate on ingot steel from 5% to 2% went into effect. The steel producers said that they lowered the selling prices not because of the decreased tax but because of slow sales in the low season.

Vietnam Steel Association in July 2007 said that local steel mills sold 218,000 tonnes only lower than the average sales volume of 250,000 tonnes a month in 2006. Meanwhile, other steel mills said they would keep selling prices intact from now until the end of the year. The producers said that steel mills might increase prices in the time to come, since the ingot steel imported from China.

Mr Le Ngoc Son head of the International Cooperation Division under the Vietnam Italia Steel Corporation said that China sourced ingot steel had been increasing sharply in the last one month. Guang Dung suppliers offer ingot steel at CNY 500 per tonne (VND 1 million) higher. Mr Son added that in early July 2007, the ingot steel price stayed at CNY 3,050 per tonnes and unlike in 2006, when the price always declined in July and August, the price only declined at the end of July before bouncing back in early August.

Changping starts its 2 million tonne project trials

It is reported that Changping Group’s project No 2 for making 2 million tonnes of steel at an investment of CNY 300 million Yuan has begun trial runs as indicated below.
1. Converter No 2 of 60 tonnes was successfully tried on July 5th 2007
2. Continuous caster No 2 produced steel successfully on July 18th 2007
3. Oxygen plant started producing oxygen on July 29th 2007

It is estimated that the designed productivity will be achieve by the end of 2007 after which there will be an annual production of 2 million tons of steel billets.

Its high speed wire rod mill project at an investment of CNY 180 million started on July 27th 2007. Its designed output is 500,000 tonnes per year and would produce various grades of wire rods including mild steel, low alloy, electrode quality, spring steel and CHQ.

Alpha Natural Resources Q2 profit down by 80% YoY

Alpha Natural Resources announced that it’s April to June 2007 quarter profit plunged nearly by 80% to USD 4.7 million due to declining coal prices and sales as well as rising costs. Alpha said it earned USD 4.7 million in April to June 2007 quarter down by 80% YoY as compared to USD 23.1 million earned in April to June 2006 quarter. Its revenue declined to USD 434.2 million in April to June 2007 quarter down by 12.5% YoY compared with USD 496.3 million in April to June 2006 quarter.

Mr Michael J Quillen chairman & CEO of Alpha said that "As expected, comparisons versus last year for most US coal producers have been challenged by a softer environment, particularly for thermal coal. We have taken a number of actions to optimize our sales mix, with the goal of maximizing our cash flow potential this year while setting ourselves up for greater opportunities in 2008."

Mr Kevin Crutchfield president of Alpha said that an upward move in forward pricing expectations enabled Alpha to lock in three million tons of next year's planned thermal coal production at favorable prices during the second quarter, but the company has maintained a large uncommitted position for its metallurgical coals. He added that "We are now 80% contracted on our expected captive steam coal production for next year, at an average price between USD 47 and USD 48 per ton not including sulfur and other premiums, and we'd expect that average to go up when we lock up the remaining tons of high quality thermal coal at an expected realization in the low USD 50s."

Alpha Natural Resources is a leading supplier of high quality Appalachian coal to electric utilities, steel producers and heavy industry. Approximately 91% of the company's reserve base is high Btu coal and 82% is low sulfur, qualities that are in high demand among electric utilities, which use steam coal. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 62 mines feeding 11 coal preparations and blending plants.

Rusina to continue nickel laterite shipping

West Perth based Rusina Mining NL announced that it planning to ship laterite ores this quarter. Rusina said that it will transport higher grade nickel laterite material 1.5% Ni from Acoje to the Port through its partner DMCI Holdings and remains on schedule to make its first shipment this quarter.

There continues to be buyers for more than 1.4% Ni in laterite though grades lower than this are currently difficult to sell as a result of traders accumulating a large stockpile of low grade material in China. There is still a small premium offered for more than 1.7% Ni in laterite. The nickel pig iron market is erratic, with decreased demand from stainless steel producers for lower grade pig iron with 4% to 6% Ni, now that the Nickel price has fallen. There remains a demand for higher grade laterite used for producing higher grade pig iron of more than 7.5% Ni and ferronickel with more than 25%Ni.

Rusina Mining NL is an active mining exploration company that is focused on the emerging Philippine mining sector. The Company has defined a JORC compliant resource estimate for nickel laterite at its Acoje tenement on the island of Luzon and will commence mining operations in the second half of 2007.

Zinifex picks up Diggers award

Zinifex has announced that it has picked up the prestigious “Diggers” award at the 15th Diggers and Dealers Forum being held at Kalgoorlie, in Western Australia.

Mr Brett Fletcher CEO of Zinifex said that this is one of the highest accolades the resources sector can bestow on an organization and so Zinifex was understandably delighted to have received it. He added that “This award is recognition of all the hard work and dedication of everyone at Zinifex and highlights the outstanding performance of the company over the past couple of years.

Mr Brett said when you consider that Zinifex was only formed back in April 2004 out of the ashes of Pasminco it makes the performance all the more amazing. He added that it had been a big year for the company with the de-merging of its smelting and refining businesses now almost complete as well as the addition of significant Canadian resources to the company’s portfolio with the recent acquisition of Wolfden Resources.

Mr Brett said we intend to maintain this momentum over the next twelve months with a more than doubling of next year’s exploration and development budget to nearly AUD 100 million. He added that I’m very proud to accept this award on behalf of everyone at Zinifex and thank the Diggers and Dealers Panel for the recognition of all that we have achieved in the past year.”

Samsung Heavy bags USD 1.35 billion order for container ships

Yonhap reported that Korea’s Samsung Heavy Industries Co has won a KRW 1.25 trillion (USD 1.35 billion) deal to build eight container ships.

Samsung Heavy Industries said that the contract is from an Asian shipping company and it’s expected to complete by May 2012.

Ukraine to discuss Iraq-Ukraine-Turkey oil and gas corridor

Ukraine’s cabinet of ministers has commissioned the fuel and energy ministry together with the foreign ministry to hold international negations with Iraq and Turkey on establishment of an oil and gas corridor.

As per report the fuel and energy ministry, economy ministry and UkrTransNafta have also been commissioned to develop oil transpiration through the Odesa to Brody oil pipe.

The fuel and energy ministry and economy ministry will be obliged to create technical opportunities to establish a legal basement to transport hydrocarbon from the Caspian region across Ukraine.