Outotec to deliver sintering technology for TATA Steel Kalinga Nagar project

Outotec has been awarded a contract by TATA Steel for the design and basic engineering of an iron ore sinter plant, supply of proprietary equipment and provision of supervisory services for TATA Steel's new Kalinga Nagar steel plant project in India. The contract value is around EUR 35 million. Outotec's delivery is part of the first phase of the project and it will be the largest iron ore sinter plant in India to date.

The local portion of the sinter plant project would be executed by Larsen & Toubro Ltd, whose scope of work covers detail engineering, local supplies, erection and commissioning along with the site services comprising of civil and structural works.

Mr Tapani Järvinen president & CEO of Outotec said "This contract reinforces the long-standing partnership between TATA Steel and Outotec, based on the earlier four sinter plants that we have supplied for Tata Steel's Jamshedpur works. The order for the Kalinganagar sinter plant also strengthens Outotec's position as the leading supplier of agglomeration technologies for the iron and steel industry, especially in the highly competitive Indian market."

TATA Steel is planning to build an integrated steel plant with an annual capacity of 6 million tonnes of steel at Kalinganagar Industrial Complex of Duburi in the Jajpur district of Orissa.

Orissa may ask POSCO to shift to Mahakalapada

It is reported that Orissa government has recently surveyed a large stretch of 5,000 acres of government land in the seaside areas of Mahakalapada block and may ask POSCO to shift its proposed steel plant from Kujang area of Jagatsinghpur district to Mahakalapada block in view of strong opposition in present location.

Mr Kashinath Sahoo collector of Kendrapara said that “The survey was done on the direction of the state government. The surveyed areas are sparsely populated for which the government will not face any major impediment to build any industry.” He added that the survey report has been sent to the government and a high level official team is expected to visit the area shortly.

Mr Saroj Raj Singh president of the Kendrapara Citizen’s Forum said that “Hukitola Island under Batighar gram panchayat was used as a minor port during the British rule. POSCO can easily convert Hukitola as a port. These 3 gram panchayats are sparsely populated and the government will not face any difficulty in acquiring lands.”

Many anti POSCO leaders have been urging Orissa government to shift the plant as well as the port sites. There have been demands to shift it from the 3 gram panchayats of Dhinkia, Gadakujang and Nuagaon under Kujang block of Jagatsinghpur district to the nearby 3 seaside gram panchayats of Batighar, Kharinashi and Ramnagar of Mahakalapada block.

SAIL ISP expansion plan to cost more than estimates

FE reported that investment in the proposed expansion of Steel Authority of India Limited’s IISCO Steel Plant is likely to increase to around INR 14,000 crore against the estimated INR 9,600 crore as some of the lowest bidders for supplying plant packages have quoted more than the cost estimated.

Mr SK Mukherjee executive director of IISCO Steel Plant told FE that some of the lowest bidders have quoted a price for certain package, which is more than earlier estimates. Mr Mukherjee said that "The IISCO Steel Plant board can ask for re bidding if it is not satisfied with the quoted price." Mr Mukherjee said that the cost escalation is more than 50% of the estimated cost and it needs 23 contractors for supplying various packages, of which 22 bids have been opened.

As per report, Otto Tech Machine Co Inc has emerged as the lowest bidder for supplying package to the central plant, POSCO and Mac Nally Bharat have come out as lowest bidders for supplying blast furnace and raw material handling respectively.

Sunil Hi-Tech bags order for structural work at JSW Jaigarh power plant

It is reported that Sunil Hi-Tech Engineers Limited has bagged INR 111.7 crore orders from JSW Ltd., for 4x300MW thermal power Plant located at Jaigarh in Ratnagiri district of Maharashtra. The order involves structural fabrication and erection works including supply of steel within a period of 22 months.

Mr Sunil Gutte executive director of Sunil Hi-Tech Engineers Limited said "The company is confident of its steady growth and our progress till date only strengthens our resolve to be the most innovative and efficient contributor to the Indian power industry."

Sunil Hi-Tech Engineers Limited has recently posted 35% YoY jump in its net profit for April to June 2007 quarter while its net sales surged by 51.21% YoY to INR 45.36 crore. Its list of clients includes NTPC, BHEL, Sterlite, Jindal Steel & Power, Reliance Energy, State Electricity Board of Tamil Nadu among others.

Indian steel workers to get 8 Prime Minister Shram awards

The Government of India announced the Prime Minister’s Shram Awards for the year 2005. Sixty five workers employed in the public and private sectors share the 33 awards in recognition of their distinguished performances, innovative abilities, outstanding contribution in the field of productivity and exhibition of exceptional courage and presence of mind. They include 46 workers from the public sector and 19 workers from the private sector. Among them are 6 women workers.

The details of awards related to steel industry are as under
1. Mr Mihir Roy Chowdhury from TATA Steel would get Shram Bhushan Award comprising if INR 100,000 and a Sanad
2. A team comprising of Mr Shrivas Chandra Saha, Mr Syed Mushir Ahmad, Mr Dinesh Akotkar, Mr R Prem Nath and Mr Fanish Dhar Dwivedi from Steel Authority of India Limited’s Bhilai Steel Plant would get Shram Vir Award comprising of INR 60,000 and a Sanad
3. A team comprising Mr Sudhir Ranjan Sarkar, Mr Mukul Chandra Paul, Mr Ashok Kumar Laha, Mr Vinod Kumar Kale, Mr JR Dewangan from Steel Authority of India Limited’s Bhilai Steel Plant would get Shram Vir Award comprising of INR 60,000 and a Sanad
5.Mr Sheo Shankar Tiwari from TATA Steel would get Shram Vir Award comprising of INR 60,000 and a Sanad
6. Mr Bibhuti Bhushan Mohapatra from TATA Steel would get Shram Vir Award comprising of INR 60,000 and a Sanad
7. Mr Om Prakash Singh from TATA Steel would get Shram Shree Award comprising of INR 40,000 and a Sanad
8. Mrs Jasumati from TATA Steel would get Shram Devi Award comprising of INR 40,000 and a Sanad

The total awards announced are as under
1. Shram Bhushan - 5
2. Shram Vir or Shram Veerangana – 12
3. Shram Shree or Shram Devi – 16

JSW Steel to set up a bio fuel extraction unit around Vijaynagar

PTI reported that Jindal Group’s subsidiary JSW Steel is planning to set up a bio fuel extraction unit at Jatropha plantation around its Vijaynagar plant aiming to blend the bio fuel with diesel for captive use. It had already started Jatropha plantation on 120 acres of barren land from 2005-06 with 50 acres.

The report cited a JSW Steel official as saying that "We are currently motivating local farmers to start Jatropha cultivation on waste land with an assured buyback guarantee. This will not only help them to earn extra money out of their barren land but also help us to extract bio fuel to mix with diesel for captive use. We need a lot of diesel, particularly when our plant capacity would go up to 10 million tonnes a year from 3.8 million tonnes now."

He said that JSW Steel has plans to plant Jatropha over 1,500 acres of land over a period of time in association with the farmers in the neighborhood and through NGOs. He added that JSW Steel is also in talks with different government departments including the forest department to allow it uncultivable land close to the Vijaynagar unit for plantation.

Hindustan Construction secures tunnel contract in Mumbai

Hindustan Construction Company Limited announced that it has received a letter of acceptance from the chief engineer of Municipal Corporation of Brihanmumbai water supply projects for construction of tunnel from Maroshi to Ruparel College at Mumbai.

The value of the contract is INR 415 crore and is expected to be completed in 56 calendar months from the date of commencement of the work.

Karnataka asked to take more steps to curb illegal mining

It is reported that central government has directed Karnataka governments to frame rules, constitute task forces at state and district level for preventing of illegal mining and furnish quarterly return on illegal mining for review by the ministry of mines.

Dr T Subbarami Reddy union minister of state for mines said that state governments have been empowered under mines and mineral development & regulation Act, 1957 to curb illegal mining, transportation & storage etc.

Dr Reddy informed that Karnataka government has detected 3027 cases of illegal mining which involves seizure of 0.3 million tonnes of ore or minerals and 3378 vehicles seized, lodging 427 FIRs, filing of 277 court cases and realizing INR 71.976 million as fine during the year 2006.

Dr Reddy added that Karnataka government has constituted state level and district level task force committee to curb the instances of illegal mining.

Port projects likely to get delayed in absence of policy

BL reported that as Indian government is yet to firm up the new model concession agreement, a standard document that defines the duties and responsibilities of the government and the private partner for ports, new port development projects are getting delayed as most of them will be taken up on a public private partnership basis. As a result, bids for even those projects, which have received the in principle approval from the public private partnership appraisal committee, cannot be invited as the approvals have been given subject to the new model concession agreement getting finalized.

The model concession agreement, which is being reworked by an inter ministerial group comprising the shipping ministry and planning commission, has not yet been firmed due to differences on certain issues. The shipping ministry maintains that it has sent its inputs to the inter ministerial group. The report cited a shipping ministry source as saying that “However, the observations made by public private partnership appraisal committee in those clearances relate to issues that will be sorted out only after the new model concession agreement is firmed up. We have submitted our inputs. Now, it is for the group to take a final view.”

Non firming up of the model concession agreement would also delay majority of projects that the shipping ministry aims to move ahead on this fiscal since bids cannot be invited for these projects. The projects that the shipping ministry aims to take up this financial year include
1. Deep draft iron ore berth with an estimated cost of INR 504 crore and deep draught coal berth with INR 388 crore at Paradip port
2. 255 meter WQ6 berth worth INR 47 crore and EQ10 jetty at inner harbor worth INR 23 crore in Visakhapatnam
3. Container terminal in Ennore with INR 1300 crore
4. Second container terminal by converting a berth worth INR 150 crore and development of outer harbor berths worth INR 4350 crore in Tuticorin.
5. International cruise terminal with an investment of INR 303 crore
6. LNG degasification terminal with INR 2200 crore and international bunkering terminal with INR 95 crore in Cochin
7. Mechanized iron ore berth worth INR 103 crore and dedicated berth for Suzlon with INR 142 crore at New Mangalore.
8. Development of berth number 7 for bulk cargo handling in Goa with INR 200 crore
9. Extension of existing container berth by 330 meters in Jawaharlal Nehru port with INR 600 crore
10. Four multipurpose cargo berths with INR 440 crore
11. Berthing and allied facilities at Tekra Tuna with INR 587 crore
12. Bunkering terminal with INR 40 crore at Kandla.

Coal block allocation to decide fates of power plants in Jharkhand

ET reported that the fate of many mega power projects in the state of Jharkhand, which hinges on coal block allocations, is facing hurdles as the central authorities are following norms, under which all projects may not get coal linkages.

The report cited a power ministry official as saying that “The ministry has short listed certain applicants for allocation of coal blocks and the Jharkhand government is not agreeable with this list. The power ministry has prepared the list based on certain criteria and wants particular blocks allocated for specific projects to which the states are not agreeable. This has led to some confusion and delay in allocation of blocks. The ministry’s decision is based on net worth of promoters’ status of land acquisition and tie ups for water with the state government.”

However, Mr HC Gupta union coal secretary said that “Currently we are in the process of verifying details furnished by applicants. The screening committee will meet over the next two weeks and decisions with regard to projects will be taken. It will be on the screening committee and will make a final decision on allocation of coal blocks earmarked for power and steel sector.”

Jharkhand government has so far signed MoU with 24 private players for generating 31,040MW. DVC and NTPC together propose to add 5,000MW of fresh capacity. Maithon Power a JV between TATA and DVC plans to build a 1,000MW thermal power plant at Maithon. This apart, Jindal South West Energy and Aditya Birla Power Company propose to add 3,000MW and 3,200MW of thermal power generation capacity in the state.

India plans to add 16,553 MW hydro power in 11th Plan

Mr Sushilkumar Shinde union power minister said that India’s hydro capacity addition to the tune of 16,553MW is proposed to be added during 11th Plan.

The augmentation of generation capacity is proposed in the following states during 11th Plan.

Proposed installed capacity plan in MW

Mr Shinde added that in order to expedite the environment and forest clearance of hydroelectric projects, the ministry of power has regular co ordination meetings with ministry of environment & forests to discuss the pending issues.

Indian port capacity expansion a vital issue

Mr AK Mohapatra union shipping secretary while giving an interview with Business Line revealed various issues facing by India’s port sector and said that for an economy growing at 9% and sea cargo accounting for 95% of the foreign trade, the present port capacity is clearly inadequate and it needs expansion.

He said that “The objective of port expansion is to double the capacity to 1.5 billion tonnes by the end of the 11th Plan. For an economy that is growing at 9% per annum with sea borne trade accounting for 95% of India’s foreign trade, the present port capacity is clearly inadequate. Look at China, where the port capacity is around 3 billion tonnes, we have a long way to go.”

Mr Mohapatra added that “By the end of the 11th Plan, it was initially thought, the major ports would end up with a total capacity of 1 billion tonnes up from around 500 million tonnes at present and the non major ports the balance 500 million tonnes up from around 250 million tonnes. However, the maritime states have indicated that the non major ports could step up the capacity up to 830 million tonnes by the end of the 11th Plan. We are very bullish about the future performance non major ports, which currently handle nearly 25% of India’s total sea borne traffic.”

On asking how much of the proposed additional capacity will be created through private participation, he said that “Frankly, the picture is not clear yet. One reason for this is that it is an ongoing exercise. In the original National Maritime Development Program the outlay for the port sector was set at INR 55,000 crore, including private sector participation of INR 40,000 crore. The figures are being revised. It is now estimated that the port sector might need an investment of about INR 90,000 crore and 70% of that should come from the private sector.”

About public private partnership, he said that it is working quite well. Private sector investment in the port sector so far has been to the extent of INR 7,000 crore and the figure in the next 5 years is likely to be around INR 40,000 crore. The ports have been told to modernize their operations through the acquisition of modern equipment and the state of the art technology and private firms are being encouraged to play an active role in this regard. Gujarat is in the forefront but a number of port projects, particularly those being developed by the private sector are in various stages of implementation in other states such as Maharashtra, Tamil Nadu, Andhra Pradesh and Orissa.

Indian government to support funds mobilization for power sector plans

Mr Sushilkumar Shinde union power minister recently said that the working group on power for the 11th Plan based on certain assumptions, has estimated a total fund requirement of about INR 1,031,600 crores for the power sector as a whole and for creation of projected capacity addition fund requirement has been assessed at about INR 410,900 crores by the working group.

He said that with the projected capacity in place and through energy conservation measures, the gap between demand and supply of electricity is likely to be bridged gradually during the course of the 11th Plan.

Mr Shinde said “Power Finance Corporation and rural electrification corporation have geared up to mobilize funds to ensure that viable projects do not suffer for want of funds. Further, to facilitate financial closure in respect of private sector projects, an inter institutional group, comprising of leading financial institutions and banks is functional. However, for equity contribution in respect of private sector projects, the developers have to make arrangements from their internal resources, while for meeting the equity requirements in respect of central and state sector projects, public sector undertaking or utilities have to make arrangements from their internal resources and or budgetary support.”

Out of the now proposed capacity addition of about 78500MW, 1870MW has already been commissioned and another 50,975MW is under construction.

Mahindra & Mahindra to set up auto assembly plant in Brazil

BS reported that Mahindra & Mahindra would set up a utility assembly plant at Manuas in North Brazil with local partner Bramont. The plant is expected to be commissioned by early November 2007.

Mahindra & Mahindra will assemble 5,000 completely knocked down kits of Scorpio and pick up trucks in this plant per annum and would eventually be scaled up to its full capacity of 10,000 units a year.

Mr Pravin Shah executive VP international business of Mahindra & Mahindra said that “The investment will be made by our Brazilian partner Bramont which will be USD 10 million in the first phase, while we will provide the necessary technical support. Brazil is a vital market for M&M. Out of the current 4 wheeler market of 2 million units in the country, 12% belongs to sports utility vehicles. Unlike the European or the US markets, where the vehicle market is saturated, in Brazil and other Latin American countries, it is growing in double digits.” He added that Bramont would appoint 30 dealers in the first year of its operations.

In 2006, the Latin American 4 wheeler market was estimated to be at 3.3 million units, growing by 20% annually.

Hindalco unveils INR 30,000 crore CAPEX plans

It is reported that Hindalco Industries is planning CAPEX of around INR 30,000 crore over a period of 5 years towards its Brownfield and Greenfield expansion, which will be part financed through internal accruals.

The CAPEX will be used for following projects
1. Capacity expansion at its Muri Alumina refinery from 0.11 million tonnes per annum to 0.45 million tonnes per annum, which is slated to be commissioned in the December 2007
2. Utkal Alumina's 1.5 million tonnes per annum alumina refinery plant, which is expected to commission by March 2010
3. Aditya Aluminium from 0.26 million tonnes per annum to 0.325 million tonnes per annum, which is expected to be commissioned by March 2011.
4. Mahan Aluminium project with a smelter capacity of 325 kilo tonnes per annum and captive power plant of 750MW, which is expected to be commissioned by October 2011
5. Latehar project with a smelter capacity of 325 kilo tonnes per annum and captive power plant of 750MW, which is expected to commission by March 2012.

Latest forecast on steel consumption in China by 2010 from CISA

A panel organized by China Iron & Steel Association observed and revised 2006 forecast on China's steel market consumption by 2010. CISA has issued an amended forecast, which says in 2007, China will consume 425 million tonnes to 450 million tonnes of crude steel and 400 million tonnes to 420 million tonnes finished products excluding double counted steel products. CISA forecast added that by 2010, 510 million tonnes 550 million tonnes crude steel consumption and 480 million tonnes to 520 million tonnes finished products consumption excluding double count.

Yet the panel pointed out if China's economy keeps 11% growth in later four years 2007-2010, with fixed asset investment, foreign trade and consumption giving an unchanged push to the economy, the nation's steel product consumption may exceed highest forecast and go above 520 million tonnes by the end of 11th five-year plan period.

The three research institutes participated in revision forecasting have their results respectively.

1. Forecasting by China Metallurgical Industry Planning & Research Institute, by adopting mathematical model method and consumption flexibility etc

In million tonnes

2.Forecasting by Metallurgical Economic Research & Development Center under the Ministry of Metallurgical Industry, by mainly studying crude steel consumption and then calculating that of finished products according to finished product ratio and double count ratio

In million tonnes
Finished steel 1 – excludes double counted products
Finished steel 2 – includes double counted products

3. Forecasting by China Metallurgical Information & Standardization Research Institute, which is based on micro analysis of capacity and import/export changes and various predictions by overseas authoritative institutions

In million tonnes
Finished steel 1 – excludes double counted products
Finished steel 2 – includes double counted products

(Sourced from MySteel.net)

Severstal buys 22% stake in Celtic Resources

ZAO Severstal Resurs, which manages the mining assets of OAO Severstal, announced that Severstal’s subsidiary Bluecone Limited has agreed to acquire for cash approximately 12.3 million common shares of Celtic Resources Holdings Plc from Aton International Ltd. The purchase represents approximately 22% of the issued shares of Celtic.

Celtic Resources Holdings Plc operates the Suzdal and Zherek gold mines in Eastern Kazakhstan and produces gold using bio leaching BIOX® technology. The Company also has 50% stake in the Shorskoye operating molybdenum mine in Kazakhstan as well as a 74.5% stake in the Tominskoye copper & gold project in the Chelyabinsk region in Russia. It produced about 2 tonnes of gold in 2006. Shares in Celtic have been listed on the AIM market in London since October 2002. It is incorporated and registered in Ireland.

Mr Roman Deniskin CEO of Severstal Resurs said “Severstal Resurs believes the purchase of a 22% stake in Celtic, with its attractive mining assets in Russia and Kazakhstan, to be an excellent investment. We think particularly highly of Celtic’s management. This share acquisition is wholly consistent with SeverStal Resurs’ strategy to diversify within mining in alliances with internationally reputable partners”.

Severstal Resurs manages all of Severstal's mining operations. Severstal Resurs consists of four mining complexes in northwest Russia and in Western Siberia producing iron ore and coking coal and is the second largest producer of pellets and coking coal in Russia. In 2006 Severstal's Mining division produced 5.4 million tonnes of coal concentrate, 2.2 million tonnes of coking coal, 2.1 million tonnes of steam coal, 9.5 million tonnes of iron ore pellets and 4.5 million tonnes of iron ore concentrate. The reserves and resources of the company were estimated by IMC Limited to be 1.8 billion tonnes of iron ore as on January 1st 2006 and 0.7 billion tonnes of coal as on April 1st 2006.

The scrap business of Severstal Resurs consists of number of scrap metal yards in the Northwestern, central and Southern parts of Russia. The total processing capacity is 1.3 million tonnes of scrap per year. Scrap is delivered to Europe and Middle East through the ports of St Petersburg, Murmansk, Arkhangelsk, Rostov and Taganrog.

Vietnam begins probe into steel price hike

It is reported that a Vietnamese government team comprising of inspectors drawn from the Vietnam’s ministries of finance and trade & industry has begun a week long inspection of 5 major steel firms as part of a probe into the recent steel price hike criticized as unjustified by authorities.

The team would appraise production costs at the Thai Nguyen Iron & Steel Company, Vinausteel Company, Dinh Vu Steel Company, Southern Steel Company and Vinakyoei.

The government decided earlier this month to carry out the study saying the steel price hike had hurt economic growth. It had said that it is a burden on consumers and set back the progress of major construction projects, it said.

The finance ministry’s price management department had demanded detailed reports from steel manufacturers about their production costs and import prices. The manufacturers, however, refused citing competition.

Nippon Steel planning to use only low quality iron ore - Report

The Yomiuri Shimbun reported that Nippon Steel Corp's Yahata steel works at Kitakyushu will use only low quality iron ore from around 2010 as it now has the technology to use the low quality ore to cut costs. The report added that Nippon Steel also plans to increase the proportion of low quality iron core used at other plants to increase competitiveness.

For the process of solidifying iron ore before it is placed in a blast furnace, Nippon Steel has developed a new ingredient to replace calcium oxide to prevent low quality iron core from breaking up, allowing the firm to cut costs by about 40%.

As from October 2004, Nippon Steel used the iron ore at the Yahata factory and has raised the proportion used to 50%. After ensuring the low quality material is not affecting the quality of the final steel products, Nippon Steel will increase the ratio of low quality iron core used at Yahata to 100% by around 2010.

Low quality iron ore is difficult to use as a material, and steel makers have found it a challenge to find good uses for the ore, which accounts for 80% of iron ore reserves and only about 20% of iron ore reserves are high quality.


With demand for steel growing due to the economic growth in rapidly developing countries including China, prices for a ton of high quality Australian iron core have surged in last 5 years.

Mechel Services opens 5 new warehouses in Russia

Mechel OAO announced that its trading company, Mechel Service OOO, opened new warehouses in July 2007 and plans to further expand its distribution network. Mechel Services opened a total of 5 new units in several cities in addition to those it had had in most of these cities,
1. Moscow
2. Yekaterinburg
3. Sochi
4. St Petersburg
5. Voronezh
In total, the new warehouses can handle approximately 15,000 tonnes to 20,000 tonnes of metal products every month.

Mechel Service opened its new units to meet high demand for construction rolled products. The new facilities will be utilized for the storage and transshipment of a broad range of metal products. The new warehouses are situated in proximity to transportation routes and large customers and staffed with regular personnel. With the new warehouse facilities, Mechel Service can reduce its costs of freight transportation and expand into new markets.

Mr Andrey Ponomaryov CEO of Mechel Services said "Today Mechel-Service is expanding due to a growth of sales volumes at existing units; an active expansion of sales geography; and the opening of new warehouses to increase sales. We also rely on the expansion of our services, including the creation of efficient logistic delivery patterns, the acquisition of our own truck fleet, the provision of metal working services and the production of structural shapes made to order to suit buyers' needs to further drive our growth. With a developed unit network and good inventory, Mechel Service is well positioned to meet the needs of end users for metal products without any intermediaries.”

Mechel Service has warehouse capacities in two dozen of Russia's most developed cities including Moscow, St Petersburg, Ufa, Chelyabinsk, Yekaterinburg, Novosibirsk, Rostov, Samara and Nizhni Novgorod. In August and September Mechel Service plans to open a number of remote warehouses and units in the following cities
1. Cheboksary
2. Ryazan
3. Barnaul
4. Krasnoyarsk
5. Kemerovo
6. Tomsk
7. Irkutsk
8. Volgograd
9. Astrakhan
10. Orenburg
11. Surgut.

US auto suppliers call for end to tariffs on steel imports

US base Motor & Equipment Manufacturers Association, representing US’s motor vehicle suppliers, in the beginning of August 2007 urged the federal government to abolish duties on imported steel, citing the continued hardship the tariffs place on the US automotive industry.

Ms Ann Wilson vice president of government affairs of MEMA said “Tariffs on imported steel have already cost this industry tens of thousands of jobs. The tariffs drive up costs and reduce the availability of steel used by the industry. The steel industry has moved to great profitability and it is time for these tariffs to be lifted.”

A study released by MEMA earlier this year showed that auto suppliers make up the nation’s largest manufacturing sector and are the top employer in seven states. She said “The US automotive industry is already dealing with major challenges. Unfortunately, effect of the steel tariffs reaches into American communities large and small and makes doing business that much more difficult.”

Ms Wilson said suppliers were joining the US auto companies in a unified appeal to abolish the tariffs during the hearings at US International Trade Commission’s 5 year sunset reviews of tariffs on hot-rolled carbon steel flat products. The ITC is expected to render a decision on the duties in October 2007.

MEMA represents more than 700 motor vehicle product manufacturers with nearly 12,000 US plant locations and 783,000 workers. Together, these companies keep the US automotive and truck industry supplied with the components that enable it to produce some 17 million vehicles annually and keep the 232 million vehicles on the road with replacement products and services. MEMA supports its members through its three market segment associations: Automotive Aftermarket Suppliers Association, Heavy Duty Manufacturers Association and Original Equipment Suppliers Association.

Norilsk Nickel H1 revenue up by 57% YoY

Russian metal giant Norilsk Nickel boosted its sales revenue as per Russian accounting standards by 57% YoY in the first half of 2007 to RUB 151.5 billion on the back of price growth in the world metals markets. It had earlier announced that its net profit during January to June 2007 grew 31 fold to RUB 77.95 billion.

The financial highlights are as under

In RUB billion

These figures are for Norilsk Nickel's Polar Division only and do not include the Kola MMC, Norilsk Nickel's stake in Stillwater, Canada's LionOre or assets in Australia and Finland.

Rio and Grange ink agreement on Southdown iron ore deposits

Perth based iron ore hopeful Grange Resources Limited announced that it has signed an agreement with Rio Tinto Exploration Pty Ltd to acquire a 100% interest in Rio Tinto's Exploration Licence E70/2512 containing the eastern 6 kilometer extension of the Southdown magnetite deposit. The exercise of the options by Rio Tinto would realize approximately AUD 30 million in exercise proceeds and would take Rio Tinto's interest in Grange to 19.9% on a fully diluted basis on completion of this transaction.

The consideration for the acquisition is
1. A cash sum of AUD 1 million plus 9 million ordinary fully paid shares in Grange
2. 9 million unlisted Grange options exercisable at AUD 1.50 and expiring three years after the date of issue
3. 8.5 million unlisted Grange options exercisable at AUD 1.95 per share and expiring one year after the date of issue

The shares and 3 years options are subject to a voluntary 12 month escrow period and the one year options are subject to a voluntary 10 month escrow period. The acquisition will be held by Grange exclusively, and will not form part of its existing joint venture with Japanese trading house Sojitz Corporation, which took a 30% stake in the Southdown project earlier this year. The issue of shares and options to Rio Tinto will be subject to shareholder approval at a shareholders' meeting to be held in late September 2007.

The purchase of the exploration license will substantially increase the total Southdown magnetite resource available for development. Aero magnetic surveys and exploration drilling by Rio Tinto on E70/2512 support Grange's view that the Southdown deposit extends for a total of approximately 12 kilometers. The purchase of E70/2512 will enable the entire deposit to be combined into a single project significantly extending the project life with minimal additional capital expenditure.

Mr Geoff Wedlock MD of Grange said that the agreement with Rio Tinto is an excellent outcome for Grange and its partners. He said "Grange has been interested in acquiring Rio Tinto's tenements for some time and we are delighted to have reached an agreement at a stage which allows Grange to factor the expanded resource into its development plans for the Project".

Mr Sam Walsh CEO of Rio Tinto Iron Ore said "Rio Tinto is pleased to have reached agreement with Grange. Combining our two assets makes sound commercial sense and Rio Tinto is pleased to continue its interest in the resource through a substantial equity position in Grange."

Grange was advised by Azure Capital and Clayton Utz on the transaction.

Asian utilities to buy more coal from South Africa and Canada

An Australia's government forecaster ABARE recently said that Asia is likely to buy more coal from South Africa and Canada to meet its growing needs because China was soaking up supplies across the Pacific region.

Mr Alan Copeland a commodity analyst at the Australian Bureau for Agriculture and Resource Economics on the side of the Coaltrans sector conference in Brisbane said that growing demand should also maintain Asian coal prices at historically high levels. He said “Asian buyers are scrambling to find alternative suppliers to replace China and Australia, whose exports are down, with Korean and Japanese utilities buying several cargoes of South African coal since June 2007.”

Mr Copeland said that "As long as Asian coal prices remain where they are, then South African coal prices will remain competitive and the Japanese and Koreans will buy more from them."

Sources said Korean generators last week purchased six cape cargoes of South African for delivery in Q4 and in 2008 at around USD 61 a tonne FOB Richards Bay from producers and traders. It also said that Korean power generators bought two prompt loading Capesize Canadian spot cargoes.

Chinese iron ore imports in June lowest in last 6 months

According to the China General Administration for Customs China's iron ore imports fell to their lowest level in the last six months in June 2007. The total amount of iron ore imported last month was 26.9 million tonnes down by 6.37% on June 2006 and 2.61% on the previous month.

Mr Luo Bingsheng deputy chief of the China Iron and Steel Association at a recent industry meeting in Beijing said that the total volume of iron ore imported this year would reach 367 million tonnes. This figure still surpasses the earlier forecast of 355 million tonnes by China Iron and Steel Association.

Members present at the Beijing meeting said the hike of the iron ore CIF price was mainly triggered by the rocketing ocean freight rates due to the shortage of international shipping capabilities and that world's three iron ore giants and some financial institutions manipulating the market.

SUEK export deliveries in H1 of 2007 up by 15% YoY

Russian Vladivostok Times reported that Siberian Coal Power Company mined 42.2 million tons of coal and sold 41 million tons between January and July of 2007. The volume of mining and sale decreased 7% YoY and 5% YoY.

SUEK said that the main factor that influenced the decrease of mining and sale volume is drop in demand for fuel from Russian enterprises of power engineering and housing sectors, caused by unusual warm winter and high water level in rivers and lakes that promoted increase of generation of electricity at hydro power stations. It added that volume of coal sales at home market decreased by 12% and totaled 28.8 million tonnes including volume of sales of power enterprises 20.2 million tonnes.

At the same time, volume of SUEK export deliveries in January to June 2007 increased by 15% YoY and amounted to 12.8 million tonnes. The greatest sale volume fell on Great Britain, Japan, Korea, Finland and Denmark.

CSC starts accepting orders for its chrome free steel

Taiwanese China Steel Corp announced that in the first quarter of 2007, it has started to accept orders for its chrome free coated electromagnetic steel. CSC said that “So far some companies have already contacted us about this product. We believe that CSC’s development of chrome free products will greatly improve the quality of the products sold by downstream manufacturers to the EU market and boost their cost competitiveness.”

Presently, CSC has two electromagnetic steel coating lines being able to produce insulating coating electromagnetic steel by coating chrome free coating on ordinary electromagnetic steel. The annual production capacity of chrome free electromagnetic steel is expected to exceed 400,000 tons in the future.

In the process of the surface coating of electromagnetic steel sheets, special coating is roll painted on the surface of the steel sheets and then heated at a temperature of 300 degree Celsius to produce a 0.6 micron insulating layer. The thin insulating layer is important in that it helps to prevent steel sheets from rusting in the process and prevents powder from coming off in the blanking and lubricating processes. Additionally, it provides electromagnetic motor products with excellent insulation, lubrication, heat resistance, and fire resistance.

CSC has successfully overcome the bottleneck of chrome free coating. Its newly developed chrome free electromagnetic steel sheet coating delivers outstanding performance in terms of adhesion strength, insulation performance, heat resistance and lubrication ability. It added that the newly developed product would prevent the environment and personal hygiene from suffering contamination by the toxic substance as well as improve the surface quality of steel sheets.

As Waste of Electric Electronic Equipment and Restriction of Hazard Substance, directives are imposing stricter restrictions on Hexavalent Chromium it is very likely that Hexavalent Chromium will be completely banned from electromagnetic steel sheets sold to EU counties.

Russian steel makers must adapt to global challenges - Fitch

Thomson Financial reported that Fitch Ratings said that Russian steel producers have to adapt to global developments and challenges in the industry to remain competitive. The rating agency said “Since steel is a commodity business, one of the most important variables is price. Therefore, those steel producers that are most favorably positioned on the cost curve will be competitive in the long run.”

The agency noted that although Russian companies enjoy a high degree of vertical integration, low cost production and geographically diversified revenues they have inherited outdated production technologies and equipment from the Soviet era. In addition, Russian steel exports are subject to export quotas that the companies are striving to bypass through international expansion.

However, the agency expects Russia's steel production will continue growing at 6% to 7% over the next 12 months to 18 months driven by GDP growth and buoyant construction activity and that ongoing demand from the domestic market will continue underpinning the price gap between domestic and export prices in favor of the former.

VSA defends domestic steel makers on pricing issue

Mr Pham Chi Cuong chairman of the Vietnam Steel Association during the interview took place just several days before the Ministry of Finance’s inspection tour of steel mills said that people should not blame steel producers for the price increases.

Vietnam’s ministry of finance recently said that in the first half of 2007, the state had to budget another VND1.8 billion (USD 112.5 million) for state funded construction projects due to steel price increases. Mr Pham Chi Cuong chairman of the Vietnam Steel Association said that “I think when drawing up a project, one always makes a provisional plan. When estimating the expenses of the projects, the investors might have considered the price increases of input materials. Therefore, the increases of input material prices were anticipated and the increases were within estimates. As for me the VND 1.8 billion figure does not make much sense.

He added that “If constructions works’ investors claim to the government that the steel price increases have badly affected the construction projects, then to whom should steel mills complain about the increases of FO, coal and petrol prices?”

He also added that selling prices must be decided by supply and demand. He said “I know some enterprises which imported ingot steel at USD 534 per tonne, but they now have to sell finished products as if the ingot steel price is at USD 530 per tonne. Don’t impute blame to steel producers.”

Vietnam Steel Association has sent a reply to a request from the ministry, about production, output, ingot steel import prices and finished steel selling prices. However, as Vietnam Steel Association does not have the function of controlling the production and business of its members it cannot give detailed information about the production cost as requested by the ministry.

SA Chamber of Mines downplays effect of strike on power supply

It is reported South Africa’s Chamber of Mines has downplayed fears of effect of Solidarity led coal miner strike over electricity generation in the country.

Mr Jabu Maphalala spokesperson for Chamber of Mines said that Anglo Coal’s and Exxaro’s mines were most likely to be affected by the strike and that contingency plans had been put in place. He downplayed suggestions that the industrial action would result in disruptions in the electricity supply system.

Mr Maphalala said another smaller union UASA, which also vowed to issue a strike notice after it rejected the Chamber of Mines’ offer never served the notice on its employers. He added that bilateral talks with Solidarity would continue either formally or informally.

On the other hand, Mr Reint Dykema spokesperson for Solidarity reported that its members at an Exxaro coal mine were standing in front of the mine’s gates and that members at an Anglo Coal mine had completely stayed away. He said some 3 500 workers were expected to take part in the strike and that the Arnold and Matla power stations were likely to experience disruptions first. Mr Dykema noted that it was not Solidarity’s intention to let power stations run out of coal and that it was merely trying to tackle a longer term problem of remuneration for skilled workers.

Ryerson urges shareholders to vote against Harbinger proposal

It is reported that Ryerson Inc has urged shareholders to reject hedge fund Harbinger Capital Partners' proposed slate of directors at Ryerson's upcoming annual meeting and reiterated its support for Platinum Equity's USD 1 billion deal to acquire it. The annual meeting is slated for August 23rd 2007. Ryerson's stockholders would not vote on the proposed buyout by Platinum until later in the year.

Mr Neil Novich CEO of Ryerson in a letter to company investors said that Harbinger is asking Ryerson's stockholders to hand over control of their company without saying whether or not Harbinger's nominees will complete the sale to Platinum and warned that Harbinger has not secured committed financing for about USD 900 million of debt that would become due if there is a change of control of Ryerson's baord.

Mr Novich also took exception to Harbinger's description of the strategic review effort Ryerson undertook, which culminated in the proposed sale to Platinum, as flawed, labeling that characterization by the hedge fund as both inaccurate and hypocritical."

Harbinger Capital Partners, which acquired a 9.6% stake in the Ryerson in 2006 which is seeking to challenge Platinum Equity's offer, said it will continue its fight to elect new directors to Ryerson's board.

Norilsk Nickel’s offer for LionOre expires with 97.7% results

Norilsk Nickel’s offer to LionOre shareholders expired with over 97.7% of shares tendered. The offer expired at 8:00 PM Toronto time on Monday August 13th 2007 and has not been extended by the Company.

A Norilsk release said that “Since the offer was accepted by the holders of more than 90% of the outstanding common shares as of the expiry time, Norilsk Nickel intends to proceed to acquire the remaining common shares of LionOre pursuant to the compulsory acquisition procedures available under Canadian law. The notice of compulsory acquisition will be mailed to shareholders as soon as practicable.”

Korea Resources to launch fund for Madagascar nickel project

Metals Insider reported that South Korea’s government agency Korea Resources Corp said it intends to launch a KRW 260 billion (USD 279 million) fund to raise money for its share of the investment costs in bringing on stream the Ambotovy nickel project in Madagascar.

The fund will be managed by UBS Hana Asset Management Company and marketed by Good morning Shinhan Securities, Daishin Securities, Daewoo Securities and Mirae Asset Securities.

Korea Resources holds a 27.5% interest in the mine, which is expected to produce 60,000 tonnes per year of contained nickel once on stream in 2010. The largest shareholder is Canada’s Sherritt with 40%.

Coal mine fatalities in US doubled in 2006

The fate of 6 miners trapped in Utah's Crandall Canyon Mine has again raised the issue of safety in US coal mines. The figures from the US’s Bureau of Labor Statistics indicate that fatal work injuries in coal mining more than doubled in 2006, partially due to the Sago mine disaster, where 12 miners died after being trapped for 2 days due to an explosion on January 2nd 2006.

According to the Bureau of Labor Statistics' 2006 census of fatal occupational injuries, a total of 47 coal miners died on the job in 2006 up from 22 in 2005. The fatality rate for coal mining jumped by 84% in 2006 to 49.5 fatalities per 100,000 workers up from 26.8 in 2005. Of the 47 coal miners killed in 2006 a total of 21 died in 4 multiple fatality incidents.

Reacting to the Sago mine disaster, The Miner Act was passed by Congress and signed by the president of US on June 15th 2006. The Miner Act, the most significant mine safety legislation in 30 years, amends the mine safety and health Act of 1977 and contains a number of provisions to improve safety and health in America's mines. Under the Miner Act, the US mine safety and health administration issued new regulations in December 2006 intended to improve mine safety.

In response to the 2006 census of fatal occupational injuries, the National Mining Association called for swift and complete implementation of the Miner Act. National Mining Association, in a press release said that "It believes that the coal community’s full compliance with the Miner Act will yield not only significant safety improvements but also valuable insights into further steps that can be taken to realize our goal of zero fatalities."

Jiyuan Iron to install a special bar mill

It is reported that China’s Henan Province based Henan Jiyuan Iron & Steel Group Corporation Limited will expand their production facilities with a bar mill for special steel thus increasing their rolled products capacity to more than 3 million tonnes per year.

The core of the completely new special steel mill with a nominal annual production capacity of 600,000 tonnes is a 3 roll reducing & sizing block in heavy duty design. The order for the design, the supply, the installation and commissioning of the 4 stand roll reducing & sizing block 370 including associated equipment was placed with Germany based Friedrich Kocks GmbH & Co KG.

The 3 roll heavy duty roll reducing & sizing block will be installed in the new bar mill as finishing block and will roll finished bars in the range from 14mm to 42mm in coils as well as bars from 20mm to 90mm in straight lengths onto the cooling bed. The start up of the new Kocks 3 roll reducing & sizing Block in heavy duty design is scheduled for the second half of 2008.

Chinese iron ore price may remain calm in H2 of 2007- Shougang

Beijing Business Today quoted Mr Zhu Jimin board chairman of Shougang Group as saying that China’s iron ore price may keep firm in the second half of 2007 with few possibilities of further price surges although ocean freight rate and Indian iron ore spot price are soaring and global institutions are forecasting that iron ore benchmark price for 2008 will rise further.

However, Mr Zhu expressed different opinions and said that balanced supply and demand relationship could bless steel industry with enough iron ore resources. He said “Besides, new capacities will be put into operation in the future. As a result, in the second half of 2007 iron ore price is unlikely to fluctuate notably.

China contributes over 30% of the world's total steel output. However, low concentration and lack of iron ore supply to some extent restrict the development of China's steel industry. Most experts agree that accelerating domestic merger & acquisitions can raise Chinese steelmakers' competitiveness and help them weigh heavier in raw materials negotiations.

China's iron ore import volume in whole 2007 is expected to represent half of the world's total.

(Sourced from MySteel.net)

Siemens receives GOST-R certificate in Russia for steel plant equipments

Siemens VAI Metals Technologies GmbH announced that it has received GOST-R certificate of conformity covering integrated electric steel plants and direct reduction plants. The certificate covers electric arc furnaces, shaft type electric arc furnaces, secondary metallurgical installations, continuous casting equipment as well as diverse rolling mills for long and flat products, including all of the secondary equipment, the necessary accessories and the required spare parts.

The GOST-R certificate confirms that Siemens equipment for complete technological mini mill plants for electrometallurgy with auxiliary equipment, accessories and spare parts conforms to the standard, GOST R 50460 92 of the Federal Agency for Technical Regulation and Metrology.

GOST-R certification is a prerequisite for the export of technical products, systems and plant components to the Russian Federation as well as for their certification for use in new plants. The certificate, issued by the Russian certification body for mechanical engineering production in Moscow is a precondition for exports to the Russian Federation and for the certification of plant components to be used in the construction of steel works.

Mr Horst Blautzik of Siemens Metals Technologies said “We are now looking forward to offering these innovative technologies to our customers in Russia on the basis of certified plants and plant components.”

The certificate of conformity is valid throughout the entire Russian Federation and is also recognized in Georgia, Kazakhstan and Byelorussia.

CSC plans to cut production by 5% in Q4 of 2007

YIEH reported that Taiwan’s China Steel Corp and Chung Hung Corp. have begun to cut the production since the second quarter of 2007 due to week demand in order to stabilize the market price.

As per report, China Steel Corp is going to decrease its production by 10% of hot rolled supply for domestic tube producers due to the furnace maintenance on December 28th 2006. The furnace maintenance will last for half month and the estimated output reduction is nearly 150,000 tonnes.

It added that in order to balance the supply to downstream mills, China Steel Corp plans to divide the 10% production cut into 5% each in the fourth quarter of 2007 and in the first quarter 2008.

Currently, China Steel Corp’s price is still lower than international market price and it is expected that the price for the last quarter of 2008 will be stabilized without change affected by Taiwan’s coming several elections. However, the medium heavy plate price will be still at the high end due to tight material supply in Asia.

View Resources raises funds to re commission nickel mine

Metals Insider reported that Australian junior View Resources said it had raised AUD 30 million though a share placement to help fund the re commissioning of the Carnilya Hill mine in Western Australia.

Carnilya Hill was mined briefly in 2004 and 2005 before being returned to care and maintenance status. It will be re opened with the help of Australia’s Mincor, which has taken a 70% stake in the mine.

Mincor said in its most recent quarterly update that mining at Carnilya Hill would re-start in January 2008 at a rate of around 5,000 tonnes per year of nickel in ore.

COSCO Shipping's H1 profit Surges by 49% YoY

Bloomberg reported that Chinese COSCO Shipping Company’s first half profit jumped by 49% YoY because it charged more to carry coal, steel and other dry bulk cargo.

COSCO Shipping in a statement to Shanghai's stock exchange said that its net income during January to June 2007 climbed to CNY 354.7 million (USD 47 million) from CNY 237.6 million in h1 of 2006 while its sales rose by 35% YoY to CNY 2.45 billion.

FuelCell sells power plant component to POSCON

FuelCell Energy Inc has announced the sale of a 300 KW fuel cell stack module and associated balance of plant components to POSCON, one of the subsidiary companies of POSCO and FuelCell Energy's strategic partner for the South Korean market.

These components enable POSCON, a systems engineering and electronics manufacturing company, to build its first power plant to prepare for its own balance of plant manufacturing in Asia. These components are equivalent to a complete DFC300MA system and are expected to ship this fall.

Under its licensing and distribution agreement with POSCO, FuelCell Energy currently ships complete fuel cell power plants to POSCO. When its own manufacturing facility is ready, POSCO will integrate FuelCell Energy's fuel cell module with POSCO's balance of plant, installing and servicing the units at customer sites.

Mr Ben Toby VP of Global Business Development for FuelCell Energy said that "This arrangement allows us to capitalize on POSCO's manufacturing capabilities and their economies of scale as we work to meet the increasing demand customers in South Korea have for highly efficient ultra clean power generation. He added that over time, as POSCO gains experience with our DFC systems we expect them to emerge as a superior BOP supplier integrator and service provider not just for power plants there, but potentially for other parts of the world, too."

FuelCell Energy is the world leader in the development and production of stationary fuel cells for commercial, industrial, municipal and utility customers. FuelCell Energy's ultra clean and high efficiency DFC fuel cells are generating power at over 60 locations worldwide.

Walter Industries to buy Tuscaloosa Resources coal mine

Walter Industries Inc announced that its unit has agreed to acquire Tuscaloosa Resources Inc, a surface coal producer The total deal value for the transaction is USD 21.7 million, which includes USD 8.4 million in net debt and USD 13.3 million in cash.

Walter said in a statement that Tuscaloosa Resources controls about 8 million tons of coal reserves

Mozambique coal rail link to require ore investments

It is reported that the Sena rail line linking the Moatize coalmines in the central province of Tete in Mozambique to the Port of Beira in the province of Sofala will require an additional investment of about USD 200 to accommodate the traffic of shipment of the coal from Tete.

According to the figures disclosed by Mr Adelino Mesquita ED of Reconstruction Brigade the current rehabilitation works on the Sena railway budgeted at USD 175 million will increase the capacity of the capacity of the line up to 6 million tonnes a year. As for the interventions that will be required on the line, Mr Mesquita mentioned the replacement of traffic signals and reinforcement of the line in certain points, to allow all the cargo to be railed safely and efficiently.

As for the progress of the rehabilitation works currently underway on the Sena line, Mr Mesquita said that there are some problems with the provision of track ballast due to the poor quality of available material to feed the project. He added that this situation could be overcome with the opening of a new quarry in Mutarara, in Tete. Currently the track ballasts are being supplied by other quarries in Manica and Nhamatanda.

The Beira Railways Company that is exploiting the Sena railway since from March 2005 predicts a handling of about 1.5 million tonnes a year, a volume that is expected to increase with the implementation of the new projects panned to that region as a result of the reopening of that line. These predictions do not yet include the volumes of coal that are to be shipped by the collieries that are about to start their operations in that region. Another intervention that is required could happen in the Beira port, where a new coal terminal will have to be built, with a larger capacity, including the dredging of the channel, for the access of large draught vessels, up to 60,000 tonnes.

Once completed the current rehabilitation works of the rail line which is expected to happen by May 2009, the Brazilian Companhia Vale do Rio Doce holder of the Moatize coal mines concession expects to rail between 10 million tonnes to 15 million tonnes of coal a year apart from the volumes that are to be shipped by other companies that are also interested in other coal mines in the region and are currently negotiating with the Mozambican government.

Lincoln Minerals starts drilling program on Eyre Peninsula

It is reported that the first drilling program has commenced on Lincoln Minerals iron ore targets near Port Lincoln on southern Eyre Peninsula in South Australia.

The inaugural drilling program follows the announcement earlier this month of Lincoln Minerals exploration and investment agreement with Indian metals and iron ore mining group, Mineral Enterprises Ltd. Under the Heads of Agreement subject to certain conditions Mineral Enterprises Ltd will contribute up to AUD 2.5 million in exploration expenditure, earning up to 40% of the Gum Flat Iron Ore Project and take up 3,500,000 fully paid ordinary shares in Lincoln Minerals at 30 cents per share, raising AUD 1,050,000.

The drill program involves 10,000 meter of aircore and slim hole reverse circulation drilling of hematite iron ore targets, identified after processing and interpretation of a low level high resolution airborne magnetic survey. The hematite targets are believed to be relatively shallow beneath 20 meter to 30 meter of calcareous sand and sandstone but overlie deeper magnetite rich banded iron formations that are secondary iron ore targets.

Dr John Parke MD of Lincoln Minerals said that “The aim of this first round of drilling is to test and prioritize the hematite targets at the Gum Flat Project. Subject to the success of this drilling, the agreement with Mineral Enterprises will enable Lincoln Minerals to fast track follow up reverse circulation and diamond drilling over the next 12 to 18 months and hence maximize iron ore potential of the Gum Flat Project for its investors.”

Lincoln Minerals is a South Australian based iron ore, uranium and base metal exploration company with extensive tenement holdings on eastern Eyre Peninsula within the southern Gawler Craton. Eyre Peninsula is one of Australia’s oldest iron ore mining districts and hematite iron ore has been mined continuously there for over 100 years. The Lincoln Minerals iron is 100% owned by Gum Flat Project.

Mount Burgess starts drilling at Kihabe zinc project

Mining Weekly reported that Australian explorer Mount Burgess Mining has started drilling at its Kihabe zinc project in Botswana using a multi purpose reverse circulation diamond core rig.

Mount Burgess said that the new drilling program was initiated to twin select previously drilled RC holes with diamond core and to verify the increase in grade obtained from diamond core drilling when compared with RC drill grades. The company used RC drilling in the initial resource calculation. It added that “By using a multipurpose drill rig, RC precollars can be drilled through un mineralized sections, thus saving time and costs for diamond drilling.”

The new program would also expand Mount Burgress’ structural understanding of the resource and would place emphasis on verifying the continuity of higher grade zones within the resource.
Results from this program would be released to the market as they become available.