Villagers refuse to offer land for Sterlite steel plant

Statesman News Service reported that in the first meeting organized at Gopinathpur, one of the nine villages going to loose land if the plant by Sterlite Iron and Steel Company Limited is set up, only 15 villagers of Gopinathpur placed their opinion about the consequential results once the company comes into existence. While 13 people spoke against the company, only two spoke neutrally.

Mr Nilambara Naik of Gopinathpur said he would not give even a needlepoint of land to any company at any price.

Mr Anirudha Satapathy observed that the land does not belong to him. He said “It descends to me from my forefathers. Logically I am not the owner of the land; I am only the caretaker of it. How can I hand over the land to the company? Even if the company pays through the nose, the money would not last for the generations to come as I at present own the land of my fore fathers.”

Mr Banchanidhi Mahapatra was of the opinion that the mines and plants at Joda and Barbil have already damaged the roads and the environment. He said “Tourists have stopped coming to this district. The school children cannot reach their school or house in time. The patients die while being taken to medical. And if we allow this company, it would put the last straw. In Keonjhar the numbers of patients suffering from respiratory related diseases will soon increase.”

Mr Purusottam Sarangi alleged that first they lost 173 acres for firm, then 45 acres for aerodrome field and for the telephone exchange also they lost their land. He said “But we are not benefited that much as promised. Now the administration is trying to take away the land, but we are determined not to budge even an inch of land.’

The other villagers shared the same opinion that the villagers are farmers and farm laborers who own nothing but their land that produce various kinds of crops and vegetables. The land that has been source of livelihood of their forefathers for years and to nurture the generations to come are not to be parted with at any cost.

Sterlite Iron and Steel Company Limited is to set up an Integrated Steel Plant in Keonjhar with a capacity of about 5.1 million tones per annum. Out of total 8339.77 acres of 9 villages like Tikarpada, Mahadeijoda, Silisuan, Gopinathpur, Raisuan, Dhatika, Danardanpur, Kadagarh and Narsinghpur, the company requires 3378.01 acres.

Goa and Mumbai join the list of ports facing strike

It is reported that labor unions at Mumbai and Goa Ports have also issued the notice for indefinite strike.

The affiliated unions of the five federations have by now served notice of strike to the 11 Major Ports.
1. Kandla
2. Mangalore
3. Chennai
4. Vizag
5. Haldia
6. Kolkata
7. Paradip
8. Kochi
9. Tuticorin
10. Mumbai
11. Goa

All India Port & Dock Workers’ Federation has listed the following demands of the port and dockworkers
1. Restoration of retirement age to 60 years
2. Merger of 50% dearness allowance with pay with effect from April 1st 2005
3. Interim relief at INR 1,000 per month to the workers including pensioners with retrospective effect from January 1st 2007
4. Filling up of vacancies including promotional vacancies
5. Regular or perennial jobs should not be contracted out or outsourced
6. Major Ports should not be turned into corporates
7. Reject the retrograde recommendations of the respective consultants monitored by the port of Rotterdam experts

TATA Steel appoints Mr Nerurkar as COO Steel

TATA Steel announced the appointment of Mr HM Nerurkar as Chief Operating Officer (Steel) of the company with effect from September 1st 2007. In his new role, Mr Nerurkar will report to Dr T Mukerjee deputy MD steel of TATA Steel.

Mr Nerurkar is a graduate from the College of Engineering of Pune University and has completed his Business Management from CEDEP in France.

He joined Tata Steel in 1972 in the R&D Division and has worked in various areas of steel making rising to the position of DGM Steel & Primary Mills. He then moved to the marketing function in 1997 as Director of Marketing before being appointed as General Manager Marketing. Mr. Nerurkar was appointed as Vice President Flat Products in 2002 after which he moved on to be Vice President Kalinganagar Project & Technology in 2006, a position that he currently holds.

Additionally, Mr Nerurkar is also on the Board of TM International Logistics Ltd, TATA Bluescope Company Ltd and TATA Ryerson Ltd as Director.

In his illustrious career of over 35 years, Mr Nerurkar has won many awards including the TATA Gold Medal in 2004, SAIL Gold Medal in 1989 and the Visvesaraiya Award in 1988.

Kirby to set up its 3rd PEB facility in India

Kirby Building Systems (India) has announced that it is planning to set up another steel fabrication plant in India at an estimated investment of INR 100 crore. This would be Kirby’s third facility in India besides plants in Hardwar and Hyderabad with a cumulative fabrication capacity of 0.2 million tonnes a year.

Mr PK Tandon MD of Kirby Building Systems (India) said that "We are mulling a third plant in India and this time it will come up somewhere in the western part of the country. We propose to put up the plant in 2 phases. We are, however, yet to finalize on the location "

He added that the plant would have an annual steel fabrication capacity of 0.125 million tonnes and would require over INR 100 crore investment. He added that setting up the new plant would take around six months.

Mr Tandon claimed that Kirby Building Systems (India) holds around 50% of India's total pre engineered buildings capacity and the demand for such structures are growing by over 20% annually. Kirby hopes to generate USD 500 million turn over in 2008 up from USD 300 million in 2006, with half of the projected turnover would come from India.

Kirby Building Systems’ parent company Kuwait based Kirby Building Systems has 2 plants in Kuwait and UAE with a total capacity of 0.15 million tonnes. It is also putting up a Greenfield plant in Vietnam with a capacity of 50,000 tonnes.

TATA Steel and Essar among 7 bidders for steel project in Egypt - Report

ET reported that TATA Steel and the Essar Steel Holdings have been short listed by the Egyptian government to build a proposed USD 3 billion steel plant project in Egypt.

As per report, 7 firms have made it to the final list from the initial 24 bidders and short listed bidders include Egyptian steel makers Ezz Steel, Suez Group and Egyptian Iron & Steel Company. As per report, the winner of the bid will be announced by October 2007.

As per report, the project includes 2 steel plants each with a capacity of 2 million tonnes and 2 billet plants with a capacity of 1 million tonne each.

CIL Q1 coal production misses target by 6 million tonnes

Dr Dasari Narayana Rao union minister of state for coal has provided information to the parliament regarding provisional coal production of Coal India Limited’s subsidiary during April to June 2007 quarter.

The details are as under

In million tones

Dr Rao said that production shortfall during April to June quarter of 2007-08 was reviewed subsidiary wise and it was decided to mobilize all resources so that the shortfall is made good during second and third quarter of current financial year.

He pointed out that the reasons for shortfall in coal production include unprecedented heavy rainfall in ECL, CCL and WCL, breakdown of machineries in BCCL and MCL, major maintenance & overhauling of HEMM at CCL, power failure in ECL, BCCL and CCL, transportation & economic blockage at CCL, frequent disturbances by villagers in MCL and less exposure of coal due non finalization of over burden removal contract in SECL.

DP Jindal and Chokhani spiral pipe JV asked to acquire land on its own in MP

BS reported that Madhya Pradesh government has turned down the request of JCO Gas Pipes Limited, a JV of the DP Jindal group and Chokhani group, for a private land area of 50 acres for its proposed spiral submerged arc welded pipe plant in tribal dominated Chhindwara district of Madhya Pradesh.

As per report, A state level committee empowered with cabinet powers has asked JCO Gas Pipes Limited to acquire the land for the project on its own. The report cited a government official as saying that “JCO Gas Pipes Limited requires 100 acres and had asked the state government to acquire 50 acres of private land. The apex empowerment committee on investment has not accepted the request and has asked it to go ahead on its own. It has acquired 15 acres.”

JCO Gas Pipes Limited is planning to invest INR 53.18 crore. The plant will have an installed capacity of 5,000 tonnes per month. Two units of the proposed plant will consume 1,500 KVA to 2,000 KVA of power and 400,000 gallons of water a day.

The project, however, has been awarded mega status and sops and concessions in accordance with industrial promotion policy. Earlier this year, JCO Gas Pipes Limited had submitted an application asking for 50% concession on power tariff, purchase preference for at least 50% of requirements in all state government purchases and the waiver of stamp duty and land registration fees.

Tariff and concession agreements for major port expected soon

It is reported that Indian government, in order to lure the private parties to develop the port sector, is finalizing fresh models for tariff and concession agreements for major ports and that it may be in place by October 2007. As per report, the Planning Commission and the department of shipping are finalizing the details of the tariff model as well as the concession agreement.

The new model proposes to fix the tariffs well in advance of the bidding process for projects. The tariff plan for ports would be reportedly on the pattern of the toll rates for national highway projects. The present cost plus model is likely to be retained, though with a financial ceiling. This will be the maximum tariff and the port developer can decide to charge less as well.

Tariff Authority for Major Ports would fix the tariff and would also spell out the projected increase in rates for the entire concession period. The exact method of calculating the tariff is still being worked out.

This system is expected to give a complete picture of the project to the bidder, who could then calculate the possible returns from the project before signing the agreement.

Indian government expects to get about 64% of the USD 13.5 billion corpus required for the development of the ports through the public private partnership route.

Maharashtra UMPP likely to be set up at Dighi

It is reported that Power Finance Corporation, NTPC and union power ministry are considering Dighi in Raigarh district for the 4,000MW ultra mega power project in Maharashtra.

Earlier, the project was to come up at Girye in Sindhudurg district, but due to opposition for the proposed plant from the locals there, the power ministry is scouting for another site on the Konkan coast for imported coal based power project.

L&T to raise USD 700 million

Larsen & Toubro announced that it would raise INR 2,800 crore (USD 700 million) through a global depository issue, most of which will be used to build a new shipyard. The proposed equity sale would take place at Luxembourg Stock Exchange.

The fund will be used to part finance L&T’s capital expenditure of INR 4,500 crore this year. Of this, about INR 2,000 crore will be utilized for setting up the shipyard on 500 acres.

Mr AM Naik chairman of L&T told shareholders at the company’s 62nd annual general meeting that “We have short listed two sites, one in Gujarat and another in Tamil Nadu, for the shipyard. We will announce the exact location next month.”

L&T is one among four companies that is keen to build two mega shipyards of international standard. The other companies are Korean STX, Shapoorji Pallonji and Bharti Shipyard. A report earlier this month quoted a government official as saying that the shipping ministry had identified Kakinada, Ennore and Tuticorin on the east coast and Mundra and Pipavav on the west coast.

Usha Martin mini BF to restart by first week of September

Usha Martin, with reference to the earlier announcement dated August 9th 2007 regarding the shut down of its mini blast furnace at it's steel plant in Jamshedpur, informed BSE that the mini blast furnace is expected to be operational by the first week of September 2007.

Essar to set up a 1200 MW power plant in Jharkhand

It is reported that Essar group is planning to invest over INR 5,000 crore to set up a 1200MW power plant in Jharkhand in two phases and has set up a special purpose vehicle called Essar Power Jharkhand Limited to set up the plant.

Mr Arun Srivastava MD of Essar Power said that “We are planning to have a 6,000MW power generation capacity over the next 5 years. In Jharkhand, we have been allocated a coalmine in Chakala. Right now, we are working on the financial closure, which will be finalized by the end of this fiscal.”

He added that the coal mine would provide captive coal over the next 10 years. Essar has started acquiring 1,500 acres of land for the power project, which has been named as Tory Power Project. Mr Srivastava said that “From Jharkhand, we will supply electricity to the grid.” He added that Essar would supply power from Jharkhand at INR 2.10 per unit electricity.

Essar Power is in also the process of completing a detailed project report for tying up the finance. The project will have a debt equity ratio of 3:1 and is scheduled to be completed in 4 years.

At present, Essar has 5 operational power plants at Hazira, Vadinar and Vishakhapatnam with a total generation capacity of 1200MW. The gas based plant at Hazira has a generation capacity of 515MW, out of which 315MW goes to the Gujarat Electricity Board, while 200 MW is used by Essar Steel for captive consumption. It has another 500MW plant in Hazira, which currently generates 315MW for Essar Steel. Besides, it has a 120MW co generation plant in Vadinar for the captive power purpose of the refinery and another 35MW coal based power plant in Vizag for the steel plant. Essar has also decided to invest another INR 5,000 crore for a 1.200MW power plant in Mahan in Madhya Pradesh.

L&T bags USD 70 million repeat order for 2 ships from Rolldock

Larsen & Toubro Limited announced that it has won a repeat order valued at over USD 70 million for construction of two 8,250 DWT RO-RO/LO-LO ships for RollDock BV of Netherlands. The vessels will be built at L&T’s existing shipyard at Hazira in Surat and will be delivered by May 2010.

In technical terminology RO-RO/LO-LO are semi-submersible, heavy lift container cargo ships. These highly specialized vessels are among the only ones of their kind to be built in India. The vessels have a deadweight capacity of over 8250 tonnes, cargo volume of 17000 cubic meters and can carry 830 TEU of containers.

Rotterdam based shipping company RollDock caters to special purpose cargo movements. Its management has expressed their desire to continue its association with L&T for its future vessel acquisition program. They have also signed an agreement that includes options for more vessels of the same series to be built later this year.

ITD Cementation JV bags INR 893 contract from DMRC

It is reported that ITD Cementation India in a JV with Italian Thai Development Public Corporation is awarded letter of acceptance from Delhi Metro Rail Corporation for underground metro construction, covering a distance of over 5 kilometer including Khan Market, Jawaharlal Nehru station, Jangpura stations to be carried out with advanced tunnel boring machines and ancillary works on the Central Secretariat to Badarpur corridor.

The contract is valued at INR 893 crore and is scheduled for completion within a period of 35.5 months.

This is the second contract warded to the ITD-ITDCem JV by DMRC after executing an INR 188 crore contract for the elevated corridor on the Qutub Minar to Gurgaon corridor including viaduct and structural work of 5 elevated stations for the Delhi Metro Rail Corporation.

PGCIL files prospectus with market regulator for IPO

Moneycontrol.com reported that power transmission major Power Grid Corporation of India Limited has filed its red herring prospectus with market regulator SEBI for an IPO. PGCIL is likely to hit the market with the IPO in the second week of September 2007.

The offer would constitute 10% of fresh equity comprising 38.26 crore shares and sale of 5% stake by the Government amounting to 19.13 crore shares. Of the total issue size to 57.39 crore, about 1.39 crore shares have been reserved for employees.

PGCIL will issue shares at a price to be decided through the book building process and the shares will be listed on Bombay Stock Exchange and National Stock Exchange.

Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India and Enam Financial Consultants are the lead managers to the issue.

Venezuela and Ternium Sidor sign cooperation agreement

It is reported that Venezuela's basic industries and mining ministry Mibam and local steel maker Ternium Sidor have signed a 3 year cooperation agreement. The document was signed by several representatives including Mr José Khan chief of Mibam, Mr Daniel Novegil CEO of Ternium, Mr Julián Eguren executive president of Ternium Sidor and Mr Javier Martínez president of Tavsa.

Under the agreement

1. Ternium Sidor agreed to maintain the domestic prices of its products below the average price on international markets.

2. Trenium also confirmed its interest in cementing investments of roughly USD 500 million in its production facilities in 2007-2012, which include nearly USD 70 million for environmental issues that will generate around 2,000 direct and indirect jobs.

3. The agreement also establishes that Sidor will prioritize supply to the local market, including seamless tubes made by Tenaris Tavsa, Venezuela's only seamless steel tube producer and supplier and provides services to the domestic oil and gas industry. It will also prioritize investments necessary for increasing production capacity and assisting the growth of the country's oil industry.

4. Ternium Sidor will also grant a special 2% discount to cooperatives and the so called social production companies and a 4% discount to foster social and economic development programs.

5. Ternium also agreed to facilitate the transfer to the Venezuelan government of the operation of the Sidor port on the Orinoco River, as provided by Venezuelan law, with due assurances to the continuity of Sidor s operations.

6. Form a technical commission with CVG Ferrominera Orinoco CA, the state owned company responsible for mining and commercializing Venezuela s iron ore, to analyze the quantity, quality and price of iron ore to be supplied by Ferrominera to Sidor

Sidor was privatized in 1997 and is Venezuela's largest steel maker with average liquid steel production of 4.2 million tonnes per year. Ternium holds a 59.7% share in Sidor, the Venezuelan state controls 20.4% through state heavy industry holding company CVG and employees own the remaining 19.9%. Ternium and Tenaris are both part of Italian Argentine group Techint.

Mr Hugo Chávez president of Venezuela had announced in May 2007 that he would nationalize Ternium Sidor if it continued what he called its industrial policy of monopolizing steel production and this agreement is to mitigate the threat. Since winning re election by a landslide in December, Mr Chavez has carried out forced buyouts of the country's main telecommunications company and its most important power generator, both controlled by US companies. He also forced a half dozen of the world's oil majors to give up control of billion dollar heavy oil projects.

LME confirms specifications for steel billet futures contracts

The London Metal Exchange has confirmed the contract specifications for the two regional steel billet contracts it will launch in April 2008. The contracts cover two regions Mediterranean and Far East and are physically deliverable; the initial delivery point for the Mediterranean will be Turkey and the Far East delivery point will be South Korea.

Mediterranean: Steel Billet Contract
1. SPECIFICATION
a) Quality
Billet supplied according to Chinese Grade HRB500 20MnSi
C: 0.17 – 0.25 %
Mn: 1.2 – 1.6 %
P: 0.045 % max
S: 0.045 % max
Si: 0.40 – 0.80 %
Cr: 0.30 % max
Ni: 0.30 % max
Cu: 0.30 % max
OR
Supplied according to Russian GOST 380- 94 5sp/ps
C: 0.28 – 0.37 %
Mn: 0.50 – 0.80 %
P: 0.040 % max
S: 0.050 % max
Si: 0.05 – 0.30 %
b) Shapes and Weights
125mm x 125mm x 6,000mm or 12,000 mm
130mm x 130mm x 6,000mm or 12,000 mm
150mm x 150mm x 6,000mm or 12,000 mm
c) Brands
All Steel Billets delivered must be from the production of those Brands named in the LME approved list.
2. LOT SIZE
Warrant lot sizes: 65 metric tonnes (+/- 2%)
3. DELIVERY
In Free Trade Zone compounds, by LME approved warehouse companies. Initial delivery location: Istanbul, Turkey.

Far East: Steel Billet Contract
1. SPECIFICATION
a) Quality
Billet Supplied according to the Russian Grade: GOST 380-94 5sp/ps
C: 0.28 – 0.37 %
Mn: 0.50 – 0.80 %
P: 0.040 % max
S: 0.050 % max
Si: 0.05 – 0.30 %
OR
Billet supplied according to Chinese Grade To HRB500 20MnSi
C: 0.17 – 0.25 %
Mn: 1.2 – 1.6 %
P: 0.045 % max
S: 0.045 % max
Si: 0.40 – 0.80 %
Cr: 0.30 % max
Ni: 0.30 % max
Cu: 0.30 % max
Rebar grade Billet
b) Shapes and Weights
120mm x 120 mm x 6,000 mm or 12,000 mm
130mm x 130 mm x 6,000 mm or 12,000 mm
150mm x 150 mm x 6,000 mm or 12,000 mm
c) Brands
All Steel Billets delivered must be from the production of those Brands named in the LME approved list.
2. LOT SIZE
Warrant lot sizes: 65 metric tonnes (+/- 2%)
3. DELIVERY
In Free Trade Zone compounds, by LME approved warehouse companies. Initial delivery location: South Korea

As per release, further details of the contracts and the LME’s approach to risk management tools for steel will be outlined in a presentation by Mr Martin Abbott CEO of LME at the 8th Conference on Status and Outlook of the Malaysian Steel Industry: ASEAN Steel Industry Conference at Kuala Lumpur in Malaysia on August 27th to August 28th 2007.

Commenting on this announcement, Liz Milan, LME steel business manager said “I am pleased to confirm details of these first two LME futures contracts for steel. We have arrived at the specifications following extensive consultation with our members and with the physical industry, where real appetite exists for reliable price risk management tools for steel. A constant process of two way communication with industry, through events such as the ASEAN conference and through LME educational workshops, is essential in ensuring that these contracts are a success.”

CVRD ferromanganese operations in France hit by slag leak

Rio Doce Manganese Europe informed that on August 23rd 2007 there was an accident at its electrical furnace caused by a slag leakage.

A CVRD release said that no personnel injuries were registered and preliminary analysis indicates a 60 days furnace shutdown for repairing services, resulting on a loss of production of 20,000 tonnes of Ferro Manganese High Carbon.

CVRD release added that all necessary actions were immediately taken and further investigations are being carried out in order to identify the real extension of the damage to the installations.

CVRD said that Rio Doce Manganese Europe is reverting its best efforts to use CVRD Group production capacity to minimize the impact on deliveries to customers.

Rio Doce Manganese Europe is located at Dunkerque in France and is controlled and owned by Cia Vale do Rio.

Cumnoc shareholders becomes subsidiary of Xstrata Coal

Xstrata Coal announced that the shareholders of Cumnock Coal Limited at a general meeting approved a proposal to reduce Cumnock’s share capital whereby it will become a wholly owned subsidiary of Helios Australia Pty Limited, a related body corporate of Xstrata Coal Pty Limited.

Mr Peter Coates CEO of Xstrata Coal said "We are pleased with today’s result and believe it mutually beneficial to all Cumnock shareholders. Besides rewarding Cumnock’s shareholders, today’s vote will enable Xstrata Coal to continue to consolidate its operations in the Hunter Valley while removing the administrative costs associated with managing a small publicly listed entity.”

Court delays ArcelorMittal Steel ruling

Dow Jones reported that a French court postponed a ruling on an injunction to prevent a USD 40.8 billion takeover of Arcelor SA by Mittal Steel Co and is rescheduled for Monday afternoon, two hours after a Dutch court is set to rule on a similar request for an injunction against the buyout.

The report cited Mr Bruno de Kerviler a minority shareholder of Arcelor, who filed for the French injunction earlier this month, as saying that “I am surprised. I suppose they are waiting to coordinate with the Dutch courts. We will pass a tense weekend and we will see."

The filing in the Tribunal de Grande Instance in Paris suggests that if the injunction is granted, Mittal Steel will be forced to postpone a meeting next Tuesday where shareholders will vote on incorporating Mittal into ArcelorMittal SA, a holding company. Mittal Steel would also have to raise the value of its buyout offer for the minority shares to the level of its original offer. As a result, the injunction applied for in a Dutch court by three hedge funds that are Arcelor minority shareholders would have the same effect.

The dispute centers on Mittal Steel's lowered buyout offer for Arcelor's 6% remaining free float. In August 2006, investors were offered 11 ArcelorMittal shares in exchange for 7 Arcelor shares. However, the offer was lowered in May 2007 to 8 ArcelorMittal shares for 7 Arcelor shares.

Pallinghurst extends ConsMin offer till September 8th

Bloomberg reported that Pallinghurst Resources Australia Ltd, in a battle to buy Consolidated Minerals Ltd, has extended its offer for by a week.

Pallinghurst said that its AUD 752 million cash offer will now close at 7 PM Sydney time on September 8th 2007 as it awaits approval from Australia’s Foreign Investment Review Board.

Territory Resources Ltd, an Australian iron ore producer headed by former ConsMin managing director Mr Michael Kiernan, is also seeking to gain control of the company.

8 coal miners trapped in flooded mine in China

West China Metropolitan Daily reported that 8 miners are missing after another coal shaft was flooded in southwest China. It said that 8 miners are missing in the southwest province of Sichuan after water rushed into a shaft on Thursday.

As per report, by late on Thursday, over 200 rescuers had gathered to try to dig out the men, the paper said. The report said "The fate of the eight remains unclear and the precise causes of the accident are being investigated."

This incident has come after a week when another coalmine was flood in eastern province of Shandong trapping 181 miners. They were trapped when a river dyke burst during torrential rain, sending water surging into mine shafts. Although emergency crews continue to try to reach the trapped miners there is no hope of survivors.

More than 2,000 people have been killed in China's coalmines in the first seven months of this year alone, despite repeated government campaigns to clean up an industry that has long been the world's deadliest.

Consortium secures USD 2 billion finance for nickel project in Madagascar

It is reported that a multinational consortium of Sheritt International, Sumitomo Corp, Korea Resources and SNC Lavalin have signed a financing deal of USD 2.1 billion with banks for a nickel project in Madagascar. The consortium was formed in 2006. Sheritt has 40%, Sumitomo Corp 27.5%, Kores 27.5% and SNC 5% stake in the project.

Banks financing the project include Japan Bank for International Cooperation, Japan's Mitsui Sumitomo Bank, Japan's Mitsubishi Tokyo UFJ Bank, the Export Import Bank of Korea, the Export Development Canada and the European Investment Bank and the African Development Bank.

The consortium plans one of world's largest nickel projects in the Ambatovy area in the east central region of Madagascar. The project involves mining nickel laterite deposited in the Ambatovy ore body, and refining of the mined ore into nickel and cobalt metals. The consortium will invest USD 3.3 billion to develop mines and to construct refining and transport facilities. The infrastructure construction is expected to take around three years. By late 2010, plants with capacities to produce 60,000 tonnes per year of nickel metal and 5,600 tonnes per year of cobalt metal are expected to be operational. The plants are expected to reach full production in 2013.

Brazilian steel makers enjoying strong domestic demand

According to the latest data from the Brazilian Steel Institute IBS Brazilian crude steel production rose by 5.3% YoY in July as steelmakers stoked blast furnaces to meet strong domestic demand from the automotive and civil construction sectors. Brazilian steel makers produced 2.869 million tonnes of crude steel in July as compared with 2.724 million tonnes in July 2006.

Production of rolled steel products climbed by 3.6% YoY to 2.178 million tonnes in July 2007 as compared to 2.102 million tonnes in July 2006. According to the IBS output of both flat and long steel products continued the upward trend seen throughout 2007. Production of flat steel products climbed by 3.5% YoY in July 2007 to 1.336 million tonnes while output of long steel products advanced by 3.9% YoY to 842,000 tonnes.

Domestic steel sales in July 2007 increased by 15.5% YoY to 1.760 million tonnes as high value rolled products, especially flat steel used in automotive and domestic goods production, continued to dominate domestic sales. Domestic sales of rolled steel products also jumped by 15.3% YoY to 1.696 million tonnes. In addition, sales of semi finished products such as slabs, blooms and billets surged by 21.4% to 64,000 tonnes.

Export sale was flat YoY in July, advancing by only 0.3% YoY to 653,100 tonnes. Brazilian steel makers have diverted production to the domestic market at the expense of exports because of the strong demand and the appreciation of the Brazilian real and the US dollar.

IBS said that Brazilian crude steel output during January to July 2007 is up by 11.6% YoY to 19.196 million tonnes as compared to 17.203 million tonnes in January to July 2006.

Brazilian steel makers have steadily boosted production throughout 2007 because of strong demand related to January's announcement of President Luiz Inacio Lula da Silva's Accelerated Growth Program, or PAC, and an improved economic climate. In addition, a steady decline in local interest rates has expanded access to credit for such steel-intensive goods as housing and autos. The Brazilian Central Bank has reduced the Selic base interest rate, which currently stands at 11.5%, at the last 17 consecutive meetings.

Rio Tinto USD 40 billion loan for Alcan purchase oversubscribed

Bloomberg reported that Rio Tinto Group is closing the USD 40 billion loan offer to finance its purchase of Canada’s Alcan Inc after banks pledged to underwrite 30% more of the debt than they were offered.

Mr Nick Cobban a spokesman of Rio’s London based said that “It has been oversubscribed. We were very confident the offer would go well and it has.”

As per report, Deutsche Bank AG, Royal Bank of Scotland Group plc, Credit Suisse Group and Societe Generale SA agreed to underwrite the loan August 2nd 2007.

Rio Tinto marketed Europe’s third largest loan amid a slump in credit markets that has forced more than 50 companies worldwide to abandon or rework debt sales in the past two months.

Rio Tinto is buying Montreal based Alcan to increase its aluminium production fourfold to meet forecast demand for the lightweight metal. The deal will propel Rio past Russia’s United Co Rusal as the world’s biggest aluminium producer.

MMX plans iron ore expansion at AVG Mineracao

BNamericas reported that Brazilian mining and metals company MMX plans to increase production at its recently acquired iron ore miner AVG Mineração.

The report cited Mr Paulo Gouvêa legal affairs director of MMX as saying that “Minas Gerais state based AVG has capacity of some 2.5 million tonnes per year and has great potential to expand to some 8 million tonnes per year to 10 million tonnes per year." He added that company is carrying out studies into the proposed expansion.

MMX earlier in July announced an agreement to purchase all AVG shares for USD 224 million.

MMX’s Minas Rio complex, in the states of Minas Gerais and Rio de Janeiro, iron ore production is expected to kick off in 2009 with initial capacity of 26.6 million tonnes per year.

Mr Gouvêa said that "We are in an engineering stage to double the project to 53 million tonnes per year." He added that London based mining giant Anglo American inked a deal earlier this year for 49% of the Minas Rio complex which also includes a 7.0 million tonnes per year pellet plant due to start operations in 2011, in addition to a port and a slurry pipeline. Estimated capex for the whole project is USD 2.7 billion.”

ThyssenKrupp Titanium increases melting capacity at Essen

European producer of titanium and titanium alloy ThyssenKrupp Stainless AG announced that it is investing around EUR 30 million in various measures aimed at expanding production at the Essen in Germany site of ThyssenKrupp Titanium.

ThyssenKrupp said that a further vacuum arc furnace was recently installed to significantly increase melting capacity for titanium ingots. In addition a highly innovative electron beam furnace is currently being installed in a dedicated new on site shop. The two new furnaces will significantly expand melting capacities at the Essen plant. The vacuum arc furnace commenced operation at the end of last year. The electron beam furnace currently under construction, which will offer state of the art titanium melting technology is planned to start production in early 2008.

Mr Jürgen Fechter executive board chairman of ThyssenKrupp Stainless said that “These measures will enable us to participate actively in the growth of the titanium market and will secure us an outstanding position in business with customers from the highly attractive aerospace and plant construction sectors.”

He added that these expansion projects at ThyssenKrupp Titanium a subsidiary of ThyssenKrupp Stainless are intended to meet rising global demand for titanium products and guarantee supplies to its customers. Titanium is mainly used in the aerospace and chemical plant construction sectors, heat exchangers for power plants, seawater desalination plants, shipbuilding, offshore equipment and medical engineering.

ThyssenKrupp Titanium’s Essen plant mainly produces titanium ingots as well as long products and alloyed plate for the aerospace and medical engineering industries.

Vinashin Sonsang JV to produce structurals for ship building

Thanhnien news.com reported that a JV between Vietnam’s Vinashin and South Korea’s Songsan firm would invest USD 41 million in a steel factory in the northern port of Hai Phong. The JV Songsan Vinashin will build the steel mill on a 22.26 ha site in Vinashin Shinec Shipbuilding Industrial Park with the capacity to produce 102,720 tonnes of steel annually. The project is scheduled to begin in October and open in December 2009.

As per report Vinashin will shoulder 51% of the funds and rely on Songsan for the remainder. The mill would produce steel structures for shipbuilding yards including Vinashin’s to replace imported products for use in the domestic industry.

The mill in the port city is the second steel project by the Songsan Vinashin venture, which is building a USD 35 million factory in the neighboring Hai Duong province. The steel mill is set to come on stream in the second quarter of 2008.

The ship maker wants 60% of its steel to be sourced locally by 2010. Currently, only 30 to 40% of the company’s steel is produced locally. Vinashin said it needs VND40 trillion (USD 2.5 billion) to reach 1 billion in ship exports by 2010.

Adriana secures land in Brazil for developing iron ore export port

Adriana Resources Inc announced that it has entered into an Option agreement to acquire three contiguous stretches of shoreline covering 857,575 square meters of land in Brazil for development of an iron ore port facility. The purchase was completed through a newly formed company Brazore Holdings with a wholly owned Brazilian subsidiary Brazore Ltd.

The subject land offers an ideal location for the potential construction of a shallow water transshipment facility capable of handling up to 18 million tonnes of iron ore per year. A series of shallow draught self loading vessels known as Lighters can transport iron ore to a larger transshipment vessel permanently anchored offshore where iron ore can be systematically moved onto ocean going ships used in the iron ore sea borne trade.

Mr Michael J.Beley president & CEO of Adriana said "In 2006, we recognized an infrastructure opportunity in Brazil for an independent iron ore port facility to capitalize on the restricted market of the many small and medium size iron producers located in the State of Minas Gerais. Our goal was to secure a strategic land position on the coast of Brazil where we would have direct access to the extensive railway and transportation network that joins the vast mineral resources of Brazil.”

He said “We have now secured the strategic land position and have established a key relationship with Seabulk Systems who will assist us in port development. This is a milestone for Adriana and a stepping stone to building a Brazilian iron ore producer and mineral transportation company."

Adriana Resources Inc is a mineral exploration and development company with advanced and early staged mineral projects in Canada, Finland and Brazil.

Interpipe to set up regional headquarters in Dubai next month

Khaleej Times reported that Ukraine's Interpipe will formally enter the Middle East market through UAE by setting up a regional headquarters in Dubai's Jebel Ali free zone by next month and a warehouse in the same area by next year.

Mr Oleksandr Kharchenko director for corporate affairs of Interpipe said this developed following the recent inclusion of the company in the list of oil and gas pipes suppliers of Abu Dhabi National Oil Company and Kuwait Oil Company. Mr Kharchenko said that as part of the pre qualification process, which took at least nine months, the ADNOC and KOC representatives did a technical audit of Interpipe's financial standing and looked into its pipe producing technologies and management system.

Mr Kharchenko said his company has been doing business in Dubai for the past seven years through three or four local partners in the industrial sector that sell Interpipe products to other big companies. He added that the first three to four years had been spent only to understanding the market. He said “While 65% of Interpipe's 2006 revenues came from sales to clients in the oil and gas industry, the company also manufactures special pipes for heavy machineries and industrial pipes for the construction sector. Interpipe posted a 48% growth in its Middle East sales for the first half of the year and a 50% rise in regional turnover for the whole 2006. Thus it is a very important and competitive market for us.”

Mr Rostyslav Chudnovsky, the company's director of tubular sales for the oil and gas industry expressed delight earlier that the two leading oil producing companies had found Interpipe's products to have the highest quality standards. He said “We are delighted to become an official supplier of KOC and ADNOC. This opportunity allows us to extend our customer base and improve our sales geography in the Middle Eat market.”

Mr Kharchenko said Interpipe has the advantage of having production units at strategic locations to deliver purchase orders within 60 days at the latest because Ukraine has good access to the sea. He said “The delivery will even become faster with the setting up of an Interpipe warehouse next year.

ABB bags automation package for Shagang new plate mill

It is reported that ABB, the leading power and automation technology group, has won a USD 56 million contract to provide automation equipment and electrical systems for a high efficiency steel mill to be built by Zhangjiagang GTA Plate Company in eastern China.

The new Hot Strip Mill in Jiangsu province will have an annual capacity of 3.5 million tons. The 1.45 meter wide mill, set to begin operations in late 2009 will be one of the most advanced and efficient rolling mills in the world.

ABB’s scope of supply covers a broad range of electrical and automation technologies including process modeling, process controls with human interface, drives and motors and Manufacturing Execution Systems to accurately track the processing of steel coils. ABB will also provide startup services and training.

Mr Veli Matti Reinikkala head of ABB’s Process Automation division said “This project reinforces our position as a leading player in the metals market. Our solutions offer customers a powerful blend of productivity, reliability and energy efficiency.”

Zhangjiagang GTA Plate Company is a unit of China’s Shagang Group, for whom ABB has delivered a number of key projects during the past ten years. The current contract was booked in July 2007.

European tin plate producer cutting output – Report

YIEH reported that ArcelorMittal may have production reduction on one of its European tinning lines since demand from the packaging industry fell.

The report further added that Corus Group has also announced to cut its production of tinplate at Trostre branch, Cours Packaging Plus and the company will keep its eyes on future packaging steel market. According to the Corus, its packaging steel business has been affected by higher production cost for raw materials and energy.

The report added that ILVA also decided to postpone the summer closure to the third quarter.

As per report the demand in food packing industry has reduced sharply. Other than this, rising raw materials costs and competition from the aluminum beverage can industry also threaten tinplate producers. According to Iron & Steel Statistic Bureau, European tin plate had over production of 849,000 tonnes in 2006.

Illich increases investment plans in plant and equipments

Journal Staff reported that Mariupol Illich Steel Mill in Donetsk region has increased investment in building, reconstruction, repairs and upgrades, buying new equipment and machinery by 19.6% YoY or by UAH 111 million YoY to UAH 677.5 million during January to June 2007.

Mariupol said that during April to June 2007 quarter it allocates UAH 392 million for these purposes. The work of the mill was focused on carrying out capital repairs. In April through June, work in the blast furnace, converter and limekiln departments was performed, causing a fall in pig iron and steel output at the mill.

American mills start to export square billet

YIEH reported that North America domestic steel market remain soft on continued slow demand, therefore, most of major mills start to export the square billet to Mediterranean and Middle East market in recent times. According to a market participant this unusual situation is factoring in weakening demand.

Market analyst predicted that until now the square billet price from AcelorMittal and Nucor Steel for September and November is at USD 460 to USD 470 per ton FOB.

Besides, Argentina’s Acindar will also start to export the square billet, following after over production of square billet.

Pakistan government to unveil a new steel policy

Pakistani media reported that Pakistan’s government sensing huge domestic demand amid spiraling prices of steel in the international market and has started work on formulation of a new National Steel Policy aimed at tapping 1.42 billion tonnes of proven iron ore reserves in the country.

The report cited a source in the ministry of industries, production and special initiatives said that the preparation of a policy draft is under way and the government would provide special incentives to the foreign and local investors. The source added that under this initiative, the private sector would be encouraged to invest in these areas. They would be provided special incentives like cut in duty or zero duty on imports, provision of land and other infrastructure facilities. Setting up of mills at the specified 10 sites would reduce the cost of production and help in catering to the steel demand of the country.

As per report, initially the government was focusing on 10 sites located in Balochistan, Punjab and North West Frontier Province and planned to establish steel mills in these areas in collaboration with foreign and local investors. The selected areas of Punjab where the government wants to exploit steel are Makerwal-Sho in Mianwali having iron ore reserves of 706 million tonnes, Chichali-Chughlan in Mianwali having 369 million tonnes, DG Khan having 56 million tonnes and Chiniot having 17 million tonnes. In Balochistan, the areas identified are Pachinkoh in Nokundi containing estimated reserves of 45 million tonnes, Chigendik in Nokundi having 5 million tonnes, Chilghazi in Dalbadin having 2.47 million tonnes and Dilband in Mastung, Kalat some 200 million tonnes. In NWFP at Pezu in DI Khan-Bannu having reserves of 13 million tonnes and Damar Nisar in Chitral containing 3 million tonnes of iron ore deposits have been identified.

At present, Pakistan’s annual steel requirement is about 5 million tonnes while it produces 4.4 million tonnes. The gap is met through steel imports.

Russia invites Austria to join South Stream pipe line project

It is reported that Russia has invited Austria to join a planned pipeline below the Black Sea in a move to allay concerns that it is undermining a rival Austrian led project

Mr Martin Bartenstein economy minister of Austria said that the invitation is given by Mr Viktor Khristenko Russian minster of industry & energy shortly after Gazprom signed a deal to launch the gas pipeline with Italy's ENI. He said "It is an invitation to Austria and to an Austrian energy company to participate in the South Stream pipeline project.”

Mr Bartenstein said he saw the move as a sign Russia was dropping its resistance to the rival Nabucco pipeline, due to bring Caspian gas to Europe without passing through Russia and led by Austrian state-controlled energy group OMV. He said "I think it is a good sign that Russia, on a government level, backs Austria joining the South Stream project. The Russian view of Nabucco used to be a clearly negative one. The Russian side used to always make this clear, both the government and in particular Gazprom. I do not share concerns now that South Stream is meant to divert from Nabucco. For the European Union as a whole and for Austria in particular it is certainly welcome news if Nabucco and South Stream are seen as projects that are complementing each other."

The 3,300 kilometer long EUR 4.6 billion Nabucco pipeline, also backed by energy groups in Turkey, Romania, Bulgaria and Hungary, is a key plank in European Union plans to diversify gas supplies away from Russia.

SIAC buys UK based Graham Woods Structural

BizWorld reported that Irish builders, SIAC has bought structural steel business for an undisclosed sum. SIAC bought Graham Woods Structural in Brighton, which had a turnover last year of just over GBP 17 million and with an operating margin of 5%c to 10%.

Construction News in UK said that it was the 14th largest steel fabrication business in that market last year, up from 21st place in 2005.

Mr Finn Lyden CEO of Siac said "We are delighted because it gives us another opportunity to realize synergies in our group.”

Cam Giang facing iron ore supply ban from other provinces

It is reported that a steel mill in northern Vietnam is facing bankruptcy as a ban on iron ore from neighboring provinces has burdened the company with expensive imports.

Since March 2007 the Cam Giang Company in the mountainous Bac Kan province has been buying iron ore from the adjacent Thai Nguyen and Cao Bang provinces. But early this month, the latter two provincial governments prohibited ore from their territories to be transported outside provincial borders.

Mr Vu Tan Nguyen the mill director said the mill is likely to go bust if it had to continue importing the iron ore from Brazil at hefty prices. He also said that if mill operations were halted even for just for a day, the mill’s VND 30 million (USD 1.8 million) blast furnaces could fail.

Mr Nguyen Van Thanh VC of the Bac Kan People’s Committee said the best way to ward off smuggling was to tighten border controls not ban friendly domestic producers from seeking local trade. He pointed out that the Cam Giang mill processes parts essential to the national machine assemble industry and fearing this ban would impact the entire sector not only the firm in question. He asked authorities in concerned provinces to treat Cam Giang on the same terms as other local companies.

Weba secures order for Khumani iron ore mine

Engineering News reported that South African bulk materials handling equipment supplier Weba Chute Systems has secured a ZAR 1.5 million order for its patented Weba Chute System for Assmang’s Khumani iron ore mine, formerly known as the Bruce King Mokaning project.

Werner Baller MD of Weba Chute Systems said that it is one of Weba Chute Systems’ biggest projects to date. He said “This is a significant milestone in the continued growth of the company.”

Mr Baller informed that the initial designs and layouts for the roughly 106 Weba Chute Systems at Khumani were embarked upon in September, with the first chute entering manufacturing in late November, for delivery at the end of December. The final chute is scheduled for delivery in June next year, with commissioning earmarked for August and September 2007.

Phase one of the Khumani iron ore mine will see it ramp up to a 10 million tonnes a year export operation, with first production expected in early 2008. A second phase expansion to 16 million tonnes a year is already being mooted.

Xining Special Steel and Qinghai Zhengwei form iron ore JV

Interfax China reported that Shanghai listed Xining Special Steel Company Ltd recently entered into an agreement with Qinghai Zhengwei Industry Group Company Ltd to establish a JV specializing in iron ore prospecting and development.

Cape Lambert to get first installment of stake sale by August end

Thomson Financial reported that Cape Lambert Iron Ore Ltd would receive USD 57.75 million on August 31st 2007 as the first installment towards the sale of 70% in its Cape Lambert iron ore project.

Cape Lambert has agreed to sell the 70% in the project located in Western Australia to Chinese investor Ding Liguo for a total of USD 192.5 million.

CEZ to renovate its power plants over six years

It is reported that leading Czech power utility CEZ will invest up to CZK 100 billion in the renovation of its coal units in the next six years to boost its production and reduce carbon dioxide emissions.

CEZ said in January to June 2007 CEZ invested CZK 5.2 billion in the renovation program, which includes the renewal of its current 10 coal units and the construction of three new brown coal fired units.

Mr Jiri Borovec deputy board chairman of CEZ said that “Overall reconstruction of the coal units is a key step to secure the energy self-sufficiency of the Czech Republic as well as to lower emissions.”

Power Machines acquires 99.9% of Power Machines de Mexico

Interfax reported that Russia's Power Machines has become the owner of 99.9% of Power Machines de Mexico.

Power Machines is a dynamic and evolving company producing and supplying complex solutions for effective power production, ranging from the design, manufacture, supply to erection, maintenance and modernization of equipment for steam, nuclear, hydro and gas turbine power plants.

Mechel in race for Doicesti power plant in Romania

Interfax reported that Mechel, Hungary's Magyar Villamos Muvek, Electrabel of Belgium, Enel of Italy, Gas de France of France, AES Corporation of US, Electricite de France International of France and Edison of Italy have submitted bids in a tender to privatize a combined heat and power plant in the Romanian town of Doicesti that was announced by Romanian state run power company Uzina Termoelectrica.

The report said one of the conditions for taking part in the privatization is building a new generation unit at the station.

Uzina Termoelectrica also holding a tender to privatize another power plant in Galatz amid conditions of modernizing power capacity and as per reports, Edison, Enel, CEZ of the Czech Republic, Electrabel, AES Corporation and Gaz de France has submitted bids in this tender.

The report also said "Uzina Termoelectrica is also planning to implement similar projects for other assets in the towns of Borzesti and Braila."