SAIL, NMDC and RINL ink MoU for Chattisgarh steel plant

Steel Authority of India Limited, National Mineral Development Corporation and Rashtriya Ispat Nigam Limited have signed a MoU here for jointly setting up a 4 million tonne per annum capacity integrated steel plant in Chhattisgarh. The MoU was signed by Mr G Ojha director personnel of SAIL, Mr PS Upadhyaya director technical of NMDC and Mr MVR Sarma executive director corporate affairs & strategy of RINL.

It has been decided that the three companies will have equal equity participation in the proposed steel plant, which will be set up on a suitable site selected on the basis of a pre feasibility report to be prepared by a consultant.

SAIL, which has expertise in steel, has taken the lead for having the pre feasibility and feasibility reports prepared for the proposed joint venture and have nominated MECON for the purpose.

NMDC, with expertise in mining, will take the lead for obtaining land, mining leases and statutory clearances etc required for a Greenfield project of this size.

SAIL, NMDC and RINL had decided to enter into a strategic business relationship by forming a JV for setting up of the plant four months ago.

Steel Technology Center to come up at IIT Kharagpur

The empowered committee of the ministry of steel, under the chairmanship of Mr RS Pandey secretary steel, has cleared a proposal from the Indian Institute of Technology Kharagpur to set up a Steel Technology Center at a cost of INR 20 crore approximately.

The proposed Steel Technology Center would be run according to the rules and regulations applicable to such Centers already existing at IIT Kharagpur. IIT Kharagpur will provide facilities like manpower, administrative and infrastructure support and available equipment and laboratory. The center will encourage faculty members to offer more courses on iron and steel, take up research projects relevant to steel industry in India and to encourage students to take up projects relevant to steel sector for dissertation. It will also carry out laboratory trials of technology developed jointly by the faculty of IIT Kharagpur, scientists from National Metallurgical Lab and scientists and engineers from steel industries in which pilot plant trials can be taken up by NML Jamshedpur and shop floor trials by the concerned industry.

The estimated expenditure of INR 20 crore for setting up the center includes, among others, installation of laboratory facilities to address problems in iron and steel making and related areas. The Department of Science and Technology will bear 20% of the cost including the expenditure on the Chair professor and five research fellows. After five years, the recurring expenditure will be taken care of by the income generating activities of the center.

The empowered committee has also approved a proposal for conducting a study for assessing the manpower requirement for the growing steel industry in the country. The study to be undertaken by the Indian Institute of Metals Kolkata will project the manpower requirement of different skills from technicians to Engineers over the next decade. The report will be submitted by the end of December this year.

Mr J Mehra appointed as CEO of Essar Steel Holdings Limited

It is reported that Mr J Mehra has been appointed as CEO of Essar Steel Holdings Limited. Mr Mehra till now was resident director of the group’s corporate affairs.

An Essar release said that “Mr Mehra will be responsible for all operations and projects of the steel business of Essar Steel Holdings, including the mines in India and internationally.”

Mr Mehra joined the Essar group in 1997 and among his various stints within the organization, worked as the managing director for Essar Steel. Mr Mehra was earlier CMD of Rashtriya Ispat Nigam Limited. Mr Mehra has experience in managing various functions such as marketing, operations, technical services and corporate relations.

NTPC to invest in coalmines in Indonesia & Australia

Reuters recently reported that National Thermal Power Corporation Limited is looking to invest in either Indonesian or Australian coalmines in early 2008 as part of efforts to secure long term supplies. NTPC currently buys most of its coal from Indonesia in addition to domestic supplies

Mr N Shekhar senior manager in fuel management department of NTPC said that "We have plans to acquire equity stakes in coal mines in Indonesia or Australia in the next 1 or 2 years. This is part of a long term measure to ensure fuel security for our coal based stations."

NTPC, which produces 27% of India's total electricity generation, plans to almost double its generating capacity to 50,000MW by 2012 from the current 27,400MW. NTPC's coal consumption is expected to surge to between 185 million tonnes to 200 million tonnes a year by 2017 up from about 112 million tonnes.

NTPC's plans come after a USD 1.3 billion deal in April 2007 by India's TATA Power Company to buy stakes in 2 Indonesian mines highlighting growing concerns among Asian utilities over the security of long term coal supplies.

STC ties up with NTPC, BEML and MSTC

BL reported that State Trading Corporation has tied up with a number of public sector undertakings to leverage each other’s strengths and synergies in a bid to increase its turnover and also improve its profitability. Dr Arvind Pandalai CMD of State Trading Corporation told BL that it has signed MoUs with leading public sector undertakings like National Thermal Power Corporation, Bharat Earth Movers Limited and Metal Scrap Trading Corporation for this purpose.

Under the MoU with NTPC, it will supply 5 million tonnes of steam coal for its power plants and till end March 2007 out of which 1.6 million tonnes of coal worth INR 643 crore has been delivered to various plants of NTPC.

The MoU singed with BEML is for pooling of resources for trading of coal and iron ore.

Under the MoU with MSTC, State Trading Corporation can avail itself of services for procurement and disposal of commodities including sharing their e commerce facilities. STC and MSTC would follow a consortium approach when dealing with big customers, thereby sharing risks besides partaking of market information pertaining to common areas of trade with each other.”

Dr Pandalai said that State Trading Corporation’s turnover during April to June 2007 stood at INR 2770 crore and would easily surpass the MoU target for the current fiscal as it has lined up a string of new initiatives including the MoUs it has signed with public sector undertakings.

Dr Pandalai said that “After expanding its overseas steel operations to Bulgaria and registering higher volumes from extant operations in Philippines, STC now proposes to execute similar works in Nigeria to give an impetus to its metals and mineral business.”

Dr Pandalai also said that State Trading Corporation has entered into MoU for promotion of sale of Jatropha plantation, bio fertilizers and bio pesticides within India and abroad. This also covers sale of plant and machinery and technology required for conversion of Jatropha seeds into bio fuels and proposals have already been forwarded to Surinam, Myanmar and Philippines.

State Trading Corporation has recorded an all time high turnover of INR 14355 crore and has surpassed the full year target committed in the MoU with the government by 43%. State Trading Corporation’s export turnover in 2007-07 has grew up by 167% YoY as against INR 2900 crore in 2005-06 and import turnover grew up by 95% YoY to reach the highest level of about INR 10,700 crore.

Ferratic SS to be used in minting INR 5 coins

Express News Service reported that Reserve Bank of India, which has already started using ferratic stainless steel for minting coins of INR 1 and INR 2 denomination, will soon start minting INR 5 coins with the same material.

The material that used earlier was cupro nickel, which is more valuable than ferratic stainless steel. Reserve Bank of India had stopped minting INR 1 and INR 2 coins in cupro nickel from January 2007.

Following complaints from across India regarding the shortage of small change, recent media reports suggested that coins were being smuggled from India to Bangladesh where, they were being molten and the metal was being used for other purposes. Mr B Mahapatra regional director of RBI West Bengal and Sikkim said that “We had handed over the matter to the detective department of Kolkata police and it is investigation. Members of the public, shops, and commercial establishments can meet their coin requirements from its regional offices or from designated branches of commercial banks.” He assured that the shortage of coins in the operating circle of RBI Kolkata in West Bengal, Sikkim, Andaman & Nicobar Islands is over.

It is believed that a INR 1 coin made out of cupro nickel is worth 85 paise in the market, while the same coin in ferratic stainless steel will be worth 70 paise.

Indian Railways to produce more locomotives and coaches

Mr R Velu union minister of state for railways announced that to meet the enhanced requirements of rolling stock and components, works have been approved to increase production capacities in locomotives and coach building production units at Diesel Locomotive Works, Chittaranjan Locomotive Works, Integral Coach Factory and Railway Coach Factory. In addition, the ministry of railways is setting up a rail coach factory, a diesel locomotive factory, an electric locomotive factory and a wheel manufacturing plant.

The details of production of rolling stock for year 2006-07 from Indian Railways’ production units are as under

To meet anticipated increase in demand of traffic, all organizational and functional structures and avenues for manufacture of locomotives and coaches are being explored.

Meanwhile, Rail Wheel Factory is poised to increase its capacity to meet the growing demand from both the Indian Railways and public sector. It is expecting funds soon from Indian Railways board for ramping up its capacity to 0.2million wheels by 2008. The year 2006-07 has been the best year in the history of Rail Wheel Factory, with the facility surpassing its past records of wheel production to achieve 0.126 million wheels up by 7.5% YoY as against 2005-06.

Mr BB Modgil GM of Rail Wheel Factory said that Indian Railway board’s targets of axles and wheel sets have also been surpassed this year with 58,259 axles and 40,500 wheel sets. Its turnover has jumped from INR 478 crore to INR 501.40 crore 2006-07.

5 sites located for nuclear based power plants in India

BL quoted Dr SK Jain CMD of Nuclear Power Corporation of India Limited as saying that the department of atomic energy is planning to add 30,000MW of power based on imported nuclear fuel in the near future and has already identified 5 coastal sites namely Gujarat, Andhra Pradesh, Orissa and West Bengal for setting up the nuclear power plants.

Each plant would have a capacity of 6,000 MW to 8,000MW and would require 6 large reactors, each having 1,000MW to 1,650MW configuration.

Dr Jain, while signing the nuclear agreement with the US, said that the Indian nuclear industry has waited for the last 2 years for the agreement to be concluded. He said “Now that an important milestone has been crossed, prospects of a major thrust to nuclear power generation capacity look bright.”

The agreement facilitates the process of discussions with the international atomic energy agency and the nuclear suppliers group and will give global access to Indian nuclear industry and help the indigenous industry in becoming a global player.

He said that Nuclear Power Corporation of India Limited is also considering exporting small and medium reactors with 220 MW to 700 MW to countries in the Asian region and has all the necessary infrastructure and designs for servicing this segment of the market. Therefore, NPCIL and DAE are considering of having stakes in uranium mines overseas either through JV or independent investment. Dr Jain said that “New and emerging uranium mines in Nigeria, Mozambique, Mongolia and Kazakhstan could be considered for this venture. Thailand and Cambodia have held preliminary talks with NPCIL for reactors as they are satisfied with safety and operational capabilities.”

SCI to enter into shipbuilding business

It is reported that Shipping Corporation of India is planning to diversify into shipbuilding in collaboration with existing players and is planning to either tie up with an international firm or pick up stake in domestic or international that have shown interest in setting up a new mega shipyard project under the proposed public private partnership scheme.

A SCI official said that “We have not yet decided the exact mode of participation. But we are keen to foray into the shipbuilding sector. We are keen to have a minimum 26% stake in the proposed shipyard venture, which will give us a board presence. Moreover, we may not require a cabinet approval in the project if our investment is below INR 500 crore.” He added that the shipping ministry had also written to SCI in late 2006 giving its nod to diversify beyond its existing activities.

With cash reserves of over INR 4,800 crore, SCI is looking into new projects such as building of ships and dredging beyond offering bulk and liner shipping services. SCI is also looking at forming a large dredging company along with other cash rich major ports. A consultant is being appointed to prepare a detailed project report for the foray.

Incidentally, Shipping Corporation of India had not submitted an expression of interest to the shipping ministry, which had sought expression of interest from firms to set up international size shipyards in the Western and Eastern coasts of India. Those who put in their applications include Bharati Shipyard, Larsen & Toubro, and South Korea’s STX Shipbuilding. However, those firms that have not submitted the expression of interest are also allowed to bid for the project as and when the tenders are floated.

KSEB to add 2,000 MW power capacity in next 10 years

It is reported that Kerala State Electricity Board is targeting to add 2,000MW of electricity to its installed capacity over the next 10 years.

Mr AK Balan electricity minister of Kerala said that “Out of 2000MW, 250 MW is planned to be generated from wind power and 750 MW from hydro electric sources. The balance 1,000MW is sought to be generated from thermal sources and KSEB is pinning its hopes on the proposed pit head thermal plant at Baitharani coalfields in Orissa.”

Mr Balan said that KSEB was facing financial difficulties and one of the major reasons was huge arrears due from both private and public sector consumers, mounted to the tune of INR 1,600 crore. He added that “KSEB would take tough measures to collect the arrears and the private sector units would be asked to clear the backlog at the earliest. In the case of private sector consumers, a major chunk of the arrears could not be collected due to litigations. He added that the board was taking steps to recover the amount through effective handling of the court cases as also through other means.”

Mr Balan said that KSEB financial woes also stemmed from additional liabilities of around INR 220 crore it had to bear in the wake of revision of the salary structure of its employees as also increased pension pay out. Overall, the operating expenses of KSEB had gone up and there had not been any tariff revision to offset it.

Indian ship owners seek government support for growth

Mr S Hajara chairman and MD of Shipping Corporation of India on sought fiscal incentives from the Central Government pointing out that the Indian ship owning firms require USD 20 billion investments over the next five years to add 16 million gross tonnages. Mr Hajara told BL that the shipping companies need to own 20 million gross tonnages over the next five years. He added that Indian firms have 8.8 million gross tonnages now and would scrap about 4r million gross tonnages over the period. Thus we have to add about 16 million gross tonnages.

Mr Hajara said there are two ways for Government to promote Indian ship owners.
1. Government can extend fiscal incentives that bring us on par with the regime in countries like Dubai and Singapore.
2. Additionally, vessels with Indian flags must be given preferred access to handling Indian cargo.

He added that the Indian National Ship owners Association has taken up this issue with the Government.

Mr Hajara said “Even though foreign direct investment is permitted in the sector, we are unable get any FDI.”

For the past few years, the domestic shipping sector has been seeking reprieve from the multiple taxation regime such as minimum alternate tax, corporate income tax, withholding tax, and income tax for seafarers. These taxes are putting extra burden on Indian ship owners whereas their foreign counterparts do not have pay such taxes.

In 2006 the department of shipping had sought that ship owners in the tonnage tax regime should be exempted from the minimum alternate tax on profit of sale of vessels. It had also sought removal of corporate Income Tax on other income. The department of shipping had sought exemption from withholding tax liability on charter hire payments to foreign ship owners, exemption from withholding tax on interest paid to foreign lenders exemption from custom and central excise duty of capital investments on shipbuilding and exemption of service tax on shipping and ship repair services. However, these issues were not addressed in the Union Budget 2007.

Texmaco to merge its subsidiaries

BS reported that the Mr KK Birla promoted Texmaco has decided to merge 2 subsidiaries and a 50:50 JV with Neora Hydro. The merger ratio for the JV is approved at 1 equity share of Texmaco for every 65 shares of Neora Hydro.

The Texmaco board approved the merger ratio for 50% shares of Neora Hydro while the balance 50% shares would be cancelled. Shree Exports, a wholly owned subsidiary dealing in investments, would also be merged with Texmaco.

Neora Hydro has a 3MW mini hydel project on river Neora in Darjeeling, which was commissioned in June 2006 but the project is facing problems on account of inadequate water during the lean season besides problems in the smooth evacuation of power.

The Texmaco board has also decided to merge Evershine Merchants, which has a property in Gurgaon spread over 66,500 square feet. The merger ratio was approved at 1 equity share of Texmaco for every 28 shares of Evershine Merchants.

Japan prefers to work on Kolkata Metro

PTI reported that after its successful tryst with Delhi Metro, Japan is preparing to partner a similar project in Kolkata but wants to phase out from Delhi’s mass rapid transport system. The Japan Bank for International Cooperation has plans for several projects to modernize and expand the metro rail system in Kolkata.

Mr Yasukuni Enoki Japan’s ambassador to India said that “The Kolkata Metro project is on the table. We have not discussed the amount yet but we are giving it a favorable consideration.” He added that he has appreciated Delhi Metro officials for commissioning a very high quality project ahead of schedule and expressed willingness to work on similar projects in other Indian cities. Japan Bank for International Cooperation has already signed a MoU for the Bangalore Metro project to which it has assured to grant a 10 year loan.

However, Japan appeared keen to exit the Delhi Metro project, which is spreading across the national capital region. Mr Yasukuni said that “You have it going till Manesar. It may further go to Rajasthan, adding that Japan has to take a decision on the duration of its association with the project.” He added that the entire ownership of the Delhi Metro project eventually has to be in the hands of India.

Cement shipment from Pakistan to arrive by August end

It is reported that the first consignment of cement from Pakistan is expected to land on Indian shores by August 2007 end. Mr Syed Asif Shah commerce secretary of Pakistan at a recent Federation of Indian Chambers of Commerce and Industry meet said that Pakistan cement companies had assured him that they would start exports by August 2007 end.

Bureau of Indian Standard is reported to have certified 7 cement companies in Pakistan including Lucky Cement, Maple Leaf, Pakistan Cement, Attock Cement, Bestway Cement, DG Khan Cement and Zeal Pak Cement.

According to estimates, Pakistan has a capacity to produce about 34 million tonnes per annum and is set to increase it to 40 million tonnes per annum by April 2007. Pakistan’s domestic demand is about 22 million tonnes, thereby generating a surplus of 10 million tonnes to 12 million tonnes. Pakistan cement industries are equipped to ship 8,000 tonnes 10,000 tonnes a day to India.

India has an installed capacity of 165 million tonnes and faces a shortfall of around 10 million tonnes. Longkous Fanlin Cement from China with a 2 million tonnes per annum capacity, Yingde Dragon Mountain Cement from Hong Kong with 3.25 million tonnes per annum capacity and Holcim Bangladesh with 1.3 million tonnes per annum capacity are waiting in the wings to send their produce to India.

However industry sources said that the initial imports may not have a major impact on domestic prices and a clear picture will emerge mid September when large quantities are imported and when issues such as transportation and user acceptance come into focus.

Klöckner & Co acquires majority in Bulgarian Metalsnab Holding

Klöckner & Co Aktiengesellschaft has acquired the majority in the distribution company Metalsnab Holding AD based at Sofia in Bulgaria, thus obtaining a major market position in the area of steel and metal distribution in Bulgaria.

Klöckner & Co AG signed an agreement to buy 70% of the shares in Metalsnab Holding AD, Bulgaria. Klöckner & Co AG already holds a further 7.3% stake. Thus Klöckner & Co will hold 77.3% of the shares in the distribution company Metalsnab Holding. The remaining shares stay with the original shareholders. The acquisition is subject to approval from the Bulgarian anti trust authorities.

In 2006, the steel and metal distributor, Metalsnab Holding, generated sales of EUR 36 million with some 250 employees. Important product groups of the distribution company are long products, flat steel and tubes. The company is headquartered in Sofia, with seven operative warehouses across Bulgaria covering the important industrial locations of the country. The company's main customers are the construction industry, machinery and mechanical engineering.

Dr Thomas Ludwig CEO of Klöckner & Co AG said "Bulgaria is a growing, very interesting market in Eastern Europe. The acquisition of the majority holding in Metalsnab Holding is thus an important step in advancing our activities in Eastern Europe.”

US Steel announces new OCTG distributors in US

United States Steel Corporation announced its new distribution network for Oil Country Tubular Goods sales in the United States resulting from its acquisition of Lone Star Technologies Inc and its related companies on June 14th 2007.

The following companies have been named to the list of authorized OCTG distributors
1. Cinco Pipe & Supply Company
2. Energy Tubulars Incorporated
3. JD Rush Company / JD Rush Corporation
4. Pipeco Services
5. Premier Pipe LP
6. Red Man Pipe & Supply Company
7. Republic Supply International / Alexander Steel Sales Inc
8. Sooner Pipe LLC
9. Toolpushers Supply Company

Mr Joe Alvarado VP Tubular of US Steel said "US Steel is now the largest supplier of OCTG in the United States and we are committed to marketing our products in North America through a selective, authorized distribution network."

These distributors will also be responsible for selling both Seamless and Electric Resistance Welded tubular goods into OCTG markets.

Rescuers suspend rescue operation at Utah mine after 3 killed

It is reported that after 10 days of rescue effort and a second mine collapse that killed three workers, authorities have conceded defeat and suspended the rescue operations for 6 miners.

Mr Richard Stickler chief of federal Mine Safety and Health Administration announced that officials had suspended the rescue operation indefinitely. He said "Is there any possible way we can continue this underground operation and provide safety for the rescue workers? At this point we do not have an answer.”

The collapse Thursday night killed three rescue workers and injured six others who were trying to tunnel through rubble to reach six men trapped since August 6th 2007. The latest cave in is referred to as a mountain bump, an eruption of rock and coal under increased pressure from overhead rock as drilling removes surrounding rock and material shifts in an area of the mine.

172 missing after surface water floods coal mine in

Xinhua reported that a coalmine in east China's Shandong Province was flooded by surface water on Friday afternoon, leaving 172 people missing by 3 AM on Saturday. The flooding occurred at about 2:30 PM on Friday in the Zhangzhuang mine run by Huayuan Co Ltd, which is located in Xintai City in the central part of the province.

Mr Zhang Dekuan deputy secretary general of the provincial government said "There were 756 miners working under the ground when the accident occurred. By 8:55 PM Friday, 584 miners have been rescued."

The provincial government has established a rescue headquarter at the site headed by Jiang Daming. The rescuers have been divided into nine groups responsible for ventilation, water drainage and other tasks.

The cause of the accident is still under investigation.

Chinese coke industry profits in H1 surge by 8 folds

Shanghai Securities News reported that China Coking Industry Association unveiled first half statistics of China's coking and chemical industry August 7th 2007.

In the first half this year, coking enterprises in scale meaning all the State owned coking enterprises and the non State enterprises with annual sales income of over CNY 5 million reported a total coke production of 156.8 million tonnes up by 21% in 2006. Meanwhile, the apparent consumption of coke totaled 148.8 million tonnes increase of 21.54%YoY. The apparent consumption is calculated by China's total coke production to imports then subtracting exports.

Also, coking enterprises in scale realized profits of a total more than CNY 4 billion rising 8.53 times compared with the same period of 2006 mainly lifted by the surging demands in steel, chemical, non ferrous metal and machinery industries. Mr Huang Jingan director of the coking association said the whole coking and chemical industry had suffered a slump in the second half of 2005. Currently, the average profit margin in the coking industry is only CNY 25.72 per tonnes coke and 32.68% of the enterprises are still in loss.

China exported about 14.5 million tonnes of coke in 2006 less than 5% of the total domestic production but almost half of the trading volume in the entire international market.

Australian Tube Mills to complete restructuring this FY

OneSteel Limited and Smorgon JV Australian Tube Mills announced that it is restructuring its pipe and tube operations. Australian Tube Mill will become a wholly owned subsidiary of OneSteel from August 20th 2007 as part of the completion of the OneSteel and Smorgon merger. The restructuring is being undertaken to build a long term sustainable pipe and tube business. The new business will provide improved customer service and a much more competitive cost position. The restructuring will be completed in the 2007-08 financial year.

The restructuring follows a review of its operations, which commenced in March 2007 and OneSteel expects that it will provide AUD 10 million to AUD 20 million per annum of net synergy benefits. The benefits form part of the forecast AUD 70 million of net synergies as identified by OneSteel as part of the OneSteel and Smorgon merger. The cost of the ATM restructure falls within the AUD 35 million forecast for the first year of restructuring associated with the merger.

There is significant overcapacity at Australian Tube Mills which when combined with increasing levels of imports of pipe and tube related products into Australia require a refocusing of the operations to reduce costs. The reconfiguration of the mills provides the lowest cost option while still servicing customer requirements. As part of the restructuring, two of the three mills and the hot dipped galvanizing facility at the Newcastle Australian Tube Mills site will discontinue production. The tonnes will be transferred to the Australian Tube Mills Acacia Ridge facility in Brisbane and the Australian Tube Mills Somerton facility in Melbourne.

In total, there will be a net reduction of approximately 180 positions across the business with reductions in employees in Newcastle and increases at Acacia Ridge and Somerton. A comprehensive program encompassing redundancy and outplacement support services, providing job search assistance, placement services and financial advice is in place.

UK Competition Commission clears Greif buy of Blagden

The UK's Competition Commission announced that it has formally cleared the completed acquisition by various subsidiaries of Greif Inc of the new large steel drum and closures manufacturing business of Blagden Packaging Group.

The commission said that it has concluded that the merger would not lead to a substantial lessening of competition in the market for large steel drums in Great Britain.

Shortly before the CC published its provisional findings report in June, it found evidence of possible additional new large steel drum production in Belgium and the Netherlands, which might provide capacity for increased imports of drums into the UK.

Prior to the merger, Greif was the largest manufacturer of new large steel drums in Great Britain, while Blagden was the second largest.

Exxaro H1 headline EPS reaches 246 cents per share

South African BEE miner Exxaro Rersources announced that its first half headline earnings per share was 246 cents per share while net operating profit rose by ZAR 266 million (USD 35.92 million) to ZAR 891 million.

Its revenue rose by 23% YoY to ZAR 4.852 billion. Exxaro said that it is well positioned to benefit from strong commodity prices but depressed mineral sands prices and currency fluctuations in the rand and Australian dollar may affect operating results.

The coal, base metals, industrial mineral and iron ore producer, said results for the six months to end June were not comparable to the previous year because it only listed in November.

Exxaro was spun off from Kumba Resources and merged with unlisted Eyesizwe Coal to form the country's biggest diversified black-owned mining firm.

All 14 trapped miners in east China rescued

It is reported that all 14 miners were rescued Friday after being trapped for one day in a flooded colliery in east China. Rescuers who entered the shaft Friday morning have lifted the 14 to the ground by noontime, said He Aiming, an official with the Jiangxi Provincial Administration of Mining Safety.

They were trapped underground after floodwater inundated the Zhayi colliery in Fengcheng County at 4:50 AM on Thursday when 15 people were working. One had managed to escape.

The provincial work safety and mining authorities have ordered all coal mines in the region to halt operation and carry out safety examinations. The emergency circular, issued on Thursday following three deadly mine accidents that left eight dead over the past four days, said mining operation could not be resumed until safety problems are eliminated.

The township level mine has an annual output of 30,000 tonnes.

Iron ore freight train derails in Australia

It is reported that freight trains are banking up across the Nullarbor in Australia after a derailment near Kalgoorlie closed the interstate railway line. A massive train was carting iron ore from Portman's Koolyanobbing mine to Kalgoorlie early on Friday when 35 of its 126 wagons derailed.

Mr Duncan Price COO of Portman Ltd' said "The first and most important thing is nobody was injured. I believe early this morning about four o'clock is when the derailment took place. We understand that some of the rail was damaged."

WestNetRail said the track will be closed at least until Monday for repairs. It said "The interstate mainline between Kalgoorlie and Perth is expected to be closed for a minimum of three days whilst repairs to the track are effected.” WestNetRail said the cause of the derailment was being investigated.

CSC and WISCO enter into long term transport contract

China Changjiang National Shipping Group Corporation signed a 15 year contract on August 9th2007. Phoenix Co Ltd and Heavy Industry, two subsidiaries of the group will jointly build four 92,500 tonnes bulk carriers for WISCO mainly to carry iron ore.

It will also construct four 92,500 tonnes bulk carriers for Wuhan Iron & Steel Group to carry iron ore.

Changjiang National Shipping Group has been devoting to shift bulk transport from inland to ocean. In 2006, the Corp's bulk ocean shipping volume, mileage and income took 43%, 56% and 54% respectively of the total figures.

(Sourced from MySteel.net)

Urals Steel H1 net profit up by 210% YoY

Gazmetall group’s subsidiary Urals Steel has posted net profit of RUB 3.115 billion in the January to June 2007 period up by 210% YoY. While revenue has recorded at RUB 22.637 billion up by 25.6% YoY, its cost has increased by 18.3% YoY to RUB 17.238 billion.

Urals Steel's gross profit has gone up by 56.6% YoY to RUB 5.399 billion in the January to June 2007 period while, operating profit has doubled to RUB 4.126 billion and pretax profit has tripled to RUB 4.153 billion.

Baosteel to bid for steel mill in Nantong

Reuter reported that China's Baoshan Iron and Steel Co Ltd is likely to bid for a majority stake in a steel mill that Baoshan's state owned parent aims to sell for CNY 601 million (USD 79 million).

The report citing an official of Baoshan Iron and Steel as saying that the parent Shanghai Baosteel Group was auctioning its 92.5% stake in a steel mill based in the eastern Chinese city of Nantong near Shanghai but subsidiaries of the Baosteel Group will be given priority in purchasing the stake.

The official said that “It is likely that we will bid for the steel mill as a way to consolidate steel assets.” He said that Baosteel Group's has chosen to sell the stake through a public auction rather than transfer it internally because it is not a 100% owner of the mill. He added that the remaining 7.5% stake is held by a local asset management company in Nantong. Most of Baosteel Group's steel assets are under the direct ownership of Baoshan Iron and Steel, its flagship listed unit.

A notice on the auction is posted on the Web site of Shanghai United Assets and Equity Exchange and the initial price tag on the stake is set at CNY 601.27 million. The mill has annual production capacity of 1 million tones.

Kransy Oktyabr steel production in H1 down by 1% YoY

Interfax reported that Kransy Oktyabr or Red October metallurgical plant at Volgograd in Russia during January to June 2007 produces about 346,612 tonnes of steel in down by 1% YoY.

Kransy Oktyabr said that its production of finished roll up by 5% YoY to 256,924 tonnes and production of roll grew by 50% in value to RUB 6.418 billion. Sales rose by 8% YoY to 258,703 tonnes.

Kransy Oktyabr produces more than 650 types of high alloy, heat resistant, stainless, ball bearing, instrument making and other steels.

Thailand's G Steel rating outlook cut to negative - Moody's

Thomson Financial reported that Moody's Investors Service has cut the outlook on G Steel Public Company Ltd Thailand's second-largest hot rolled coil steel maker, 'B2' corporate family rating and 'B2' senior unsecured bond rating to negative from stable.

Moody's said the cut in outlook was prompted by continued weakness in the company's operating performance at a time when its refinancing plans for a USD 120 million bridge loan due on September 13th 2007 are not yet finalized. It said it sees funds coming but will unlikely to be cheap further straining the company's financial profile.

Wesfarmers to keep its coal division

It is reported that Mr Richard Goyder of Wesfarmers Limited has ruled out disposing of the company's struggling coal division as the diversified group concentrates on its retail arm and the Coles takeover.

Mr Goyder was upbeat about the coal division despite lower export prices expected to continue to have a negative impact for the first three quarters of the 2007-08 financial year.

Mr Goyder said “I am a real bull on coal. We think the business through increased production and sales opportunities in all three mines, the work that the industry is doing in terms of clean coal technology and its cash generating capabilities is an important part of the group."

But Mr Goyder was cautious not to rule out entirely the sale of any of the group's assets. He added that a caveat we always put on those things if we think it is in our shareholders interest then we would always look at disposing of an asset in the group."

Ex workers block access to Glencore Colombian coalmines

Bloomberg reported that Glencore International AG said that former workers blocked access to its coal mines in Colombia.

Ms Lotti Grenacher a spokeswoman of Glecore said “Workers previously employed by Operados Mineros de Cesar and another Colombian unit unlawfully blocked the access roads to Glencore's mining operations.”

Glecore company owns La Jagua and Calenturitas coal mines in the South American country.

Russian coal output slips by 0.1% YoY in 7 months

According to Rosstat, Russia coal production during January to July 2007 totaled 176 million tones down by 0.1% YoY.

It added that however production of coal grew by 3.6% YoY in July 2007 as compared to July 2006 and 1.6% MoM from June 2007.

ThyssenKrupp to set up a service center in Nizhniy Novgorod

FIS News reported that Germany’s Thyssenkrupp is planning to develop a metal service center at Nizhniy Novgorod region of Russia in September 2008.

The new service center will have metal precision cutting equipment, band sawing machines, laser cutting equipment, unwinding of rolled sheet and reinforcing bars.

Tangshan inks strategic cooperation agreement with Jingmei

It is reported that Hebei based Tangshan Steel signed a medium and long term strategic cooperation agreement with Beijing Jingmei Group on August 10th 2007. The steelmaker will purchase 700,000 tonnes this year and 900,000 tonnes next year. The figure will reach 950,000 tonnes in 2009 and 2010.

Beijing Jingmei Group is a state owned oversize coal enterprise with total assets of CNY 8.8 billion. Beijing Jingmei Group began cooperation with Tangshan Steel in 1974 and trade volume has climbed to over CNY 100 million from previous several millions.

It realized sales revenue of CNY 5.74 billion in 2006 and ranked among the largest enterprise groups and the best 500 enterprises in the country. Its holding company, Beijing Haohua Energy Resource Company Limited is one of China's biggest production and export bases of anthracite with annual output and sales of 5.4 million tonnes.

(Sourced from MySteel.net)

Altona Resources coalmine in Arckaringa Basin causing concern to locals

It is reported that pastoralists in South Australia's Arckaringa Basin are concerned over a proposed coalmine, which could affect their stock's water supply as Altona Resources is examining the feasibility of mining in the region. As per report, the project would divert 100 mega liters of water a day out of the Great Artesian Basin.

Mr Tony Williams local pastoralist said that diverting the water will put at least 9 of his wells out of action and make others undrinkable for livestock. He added that "Water is quite saline as it is. It is around 4,000 to 5,000 parts per million. Any raise in salt level would nearly make it non palatable for cattle so it would have a drastic effect."

Meanwhile, Altona Resources said that the proposal to divert water is to ensure the surrounding region remains ecologically sustainable and it will consider land holders in the management plan if salinity becomes an issue.

China GengSheng Q1 revenue up by 46.4% YoY

China GengSheng Minerals Inc has announced financial results for the April to June 2007 quarter as well as for the January to June period. It has posted revenues of USD 10 million in April to June 2007 quarter up by 46.4 % YoY as compared to USD 6.8 million for the April to June 2006 quarter. Its gross profit for the April to June 2007 quarter is USD 3.9 million as compared to gross profit of USD 2.7 million for the April to June 2006 quarter. Its net income for the April to June 2007 quarter is USD 1.6 million as compared to USD 1.1 million for the April to June 2006 quarter.

China GengSheng Minerals Inc has also posted revenues of USD 18.5 million for January to June 2007 up by 56.2% as compared to USD 11.9 million reported for the January to June 2006. Its gross profit for January to June 2007 is USD 7.2 million as compared to USD 4.7 million for the January to June 2006. Its net income for the January to June 2007 is USD 2.8 million as compared to USD 1.9 million for the January to June 2006.

China GengSheng Minerals Inc is a mineral based manufacturer whose product includes monolithic refractories, industrial ceramics and fracture proppant. It conducts business through Gengsheng International Corporation and its Chinese subsidiaries like Henan Gengsheng Refractories Co Limited, ZhengZhou Duesail Fracture Proppant Co Limited and Henan Gengsheng High Temperature Materials Co Limited.

Chinese MCC starts iron ore mine operation in Argentina

China's leading mine construction company Metallurgical Construction Group Corporation recently announced that it has commenced operation of an iron ore mine in Argentina.

Botswana Railway seeks funding for coal rail link to SA

It is reported that Botswana Railways has approached the government and other stakeholders to fund feasibility studies into the construction of rail lines from Capricorn to Mmamabula and Mmamabula to Ellisrus in South Africa.

Ms Lena Kalake corporate planning manager of Botswana Railways said that "The two 80 kilometer long rail spur from Mmamabula and the 27 kilometer long line would predominately be export routes for coal from Mmamabula to South Africa.”

She added that though the rail lines would be constructed by a foreign company CIC Energy, they would be transferred to BR to operate and eventually own.

Puda Coal Q2 loss widens

It is reported that Puda Coal Inc second quarter net loss widened to USD 0.67 million from USD 0.36 million in the same quarter prior year. On a per share basis loss for the latest quarter was UDS 0.01 compared to breakeven per share in the last year quarter.

Adjusted net income for the June quarter rose 5% to USD 2.60 million from USD 2.50 million in the equivalent quarter preceding year. Quarterly adjusted earnings per share were USD 0.03 flat with prior year quarter.

Operating income for the recent quarter was USD 5.30 million up by 12.4% from USD 4.70 million in the year ago quarter. Quarterly revenues increased 23.1% to USD 38.10 million from USD 30.94 million in the previous year quarter.

Puda Coal Inc still expects fiscal 2007 operating income to be in range of USD 34 million to USD 36 million and continues to anticipate fiscal 2007 revenues between USD 210 and USD 220 million.

Mr Parker appointed as director of Severstal Metiz Europe and CEO of Carrington

Severstal Metiz announced that Mr Andrew Parker, previously sales and marketing director of Bridon International, has joined the Severstal Metiz team as business unit director of Severstal Metiz Europe and CEO of Carrington Wire Limited UK based division of Severstal Metiz from the August 1st 2007.

Mr Andrew will be responsible for CWL operations as well as the European sales, marketing and business development for all Severstal Metiz group products and services. Mr Andrew Parker will be reviewing the Carrington Wire business model to develop the business to offer clients higher value added products and services using the synergies within the group.

His career with Bridon started in 1990 as the Business Manager of Alloy Products and after undertaking several roles within the company Andrew became Sales and Marketing Director of Bridon International. Positions in EU wire industry including chairman of UK Steel Wire Product Group and president of EU Liaison Committee of European Wire Rope Association.

Ms Olga Naumova CEO of Severstal Metiz said that "We are pleased that such a competent manager as Mr Andrew Parker will be joining Severstal Metiz team. We hope that Mr Andrew will bring his wealth of skills and experience to achieve further success. Together we will redesign and increase the efficiency of our European operations to realize the Severstal Metiz strategy of production and supply of high value added products and services."

CSC receives 5 new international certificates

It is reported that Taiwan’s China Steel Corp has made its technology improvement recently as its metallurgical and chemical laboratories have just passed the verification by Taiwan Accreditation Foundation. Most of Taiwan domestic laboratories need to spend six months to get Taiwan Accreditation Foundation certificates but CSC only spent four months to get it. Those certificates mean China Steel Corp two laboratories have already qualified to become international laboratory level and the company will be more competitive in the market.

Not only tensile test, impact test, bending test, hardness tests and metallographic at the company have got the certificate renewal, but also it receives the new certificate on its through thickness contraction test, strain ration on cold roll steel sheet, adhesion and bending test on galvanized steel sheet, the paint bonding test on galvanized steel products and finally the identification of deposits on galvanized steel products.

Steel units asked to pay GST by 28th

It is reported that the Pakistan Federal Board of Revenue has asked all steel melters and steel re rollers to deposit sales tax through electricity bills or sales tax returns by August 28th 2007.

The directive came from the Federal Board of Revenue following reports that the electricity units consumed had not been reflected in the electricity bills issued for the billing month of July 2007 by the electric supply companies in certain cases.

An official announcement issued recently emphasized that all steel melters and steel re rollers were liable to deposit the due amount of sales tax within the scheduled time positively otherwise the defaulters shall be liable to payment of additional tax and penalty.

In all such cases, Federal Board of Revenue had already directed that the concerned steel melters, re rollers individually as well as through the concerned associations were required to deposit the due sales tax payable through sales tax returns on the basis of electricity units consumed for the tax period of July 2007.

China's base metal production in January to July 2007

According to statistics released by China's National Bureau of Statistics China produced 1.86 million tonnes of refined copper in the January to July 2007 up by 13.9% YoY. The released added that production of aluminum surged by 34% YoY to 6.71 million tonnes. Its copper concentrate output reached 423,600 tonnes for the January to July period growing by 5.1% YoY.

In tonnes
Source - The National Bureau of Statistics

China's domestic base metal concentrates output in January to July 2007

In tonnes
Source - The National Bureau of Statistics