TATA Steel turns 100 years today

A vision envisaged by the Founder, executed by his successors, developed & evolved by future generations to become today, a global enterprise! This is the story of TATA Steel which completes 100 glorious years of existence today on August 26th 2007 following the ideals and philosophy laid down by its founder, Mr Jamsetji Nusserwanji Tata way back in 1907. It started with a production capacity of 100,000 tonnes but has now transformed into a global giant with a production capacity of almost 26 million tonnes.

Mr B Muthuraman MD of TATA Steel said "More than a chronology of events, the Centenary of our Company is a celebration of enduring values, exemplary corporate governance and unique achievements in creating customer delight. The Centenary story of TATA Steel is also linked intrinsically to the genesis and growth of an Industrial India, as envisioned by our Founder Jamsetji Nusserwanji Tata. It is a story that we will continue to celebrate in multiple ways over the next one year. We look forward to another hundred years and more of creating wealth and well-being for all the communities we serve."

To commemorate the completion of 100 years of successful operations, a milestone achieved by few, there is a host of events and activities lined up for the citizens of Jamshedpur.
1. A cake cutting ceremony by Mr B Muthuraman at TATA Steel Archives at 12.30PM
2. Inauguration of the re designed Founder's Gallery at TATA Steel Archives by the MD
3. Launch TATA Steel's Centenary Micro-site www.tatasteel100.com.
4. Launch of long awaited Air Deccan commercial flight connecting Jamshedpur and Kolkata
5. Evening function at TATA Steel Works
6. Release of the book by Mr RM Lala titled "Romance of Tata Steel".
7. A film on the Centenary of TATA Steel named "The Spirit of Steel" directed by Zafar Hai will be screened showcasing the legacy of the Company.
8. A special anthem that has been penned down to mark the hundredth year of TATA Steel will also be launched.

In addition to these functions on August 26th 2007, there will be a series of events planned throughout the year so as to touch all our stakeholders who have been our partners in this 100 year journey.

Indian Q1 iron ore export down by 9% YoY - Report

BS reported that India’s iron ore exporters, who bank on Chinese buying mainly through spot sales, have started feeling the heat of exports duty levy. In the April to June 2007 quarter, traders saw the full fledged impact of the export duty, which was levied by Indian government in this year’s budget.

As per some reports, India’s iron ore export has declined by 9.09% YoY to 22.03 million tonnes in the April to June 2007 quarter as against 24.23 million tonnes in the April to June 2006 quarter. During 2006-07, India’s total iron ore export has grew up by 6.4% YoY to 93.12 million tonnes from 87.51 million tonnes in 2005-06.

Mr RK Sharma secretary general of Federation of Indian Mineral Industries said that “No foreign buyers wish to engage Indian iron ore exporters in long term contracts because of anticipated harmful impact of steel lobby. The steel lobby in short is damaging the iron ore exports severely. Domestic steel producers neither want to use low grade iron ore fines nor do they want us to exports heavily.”

After levying INR 300 a tonne export duty on iron ore, Indian government cut the duty to INR 50 a tonne on low grade, while the same was retained for high grade. Industry sources said that the duty cut would partly offset traders’ worry as the low grade iron ore forms only 25% of the total exports.

Coal &Oil inks a 50 million tonne coal MoU with Samtan Kideco

Coal & Oil announced that they have signed a MoU with Samtan Kideco Company for supplying 50 million tonnes of coal to the Indian coal industry over a period of 10 years.

This MOU between Coal & Oil and Samtan Kideco Company will account for 10 % of the total projected imports of coal into India in the next 5 years. These imports translate into generation of about 1500 MW of power per annum.

Mr. Ahmed Buhari founder, president & CEO of Coal & Oil Group said that “We are delighted to partner with Samtan Kideco Company. This agreement will significantly help our country’s energy supply in the coming years. Samtan Kideco Company has been operating in India over the last 10 years and understand the market well, this contract reinstates their commitment in India."

Samtan Kideco Company is the third largest supplier of coal in Indonesia. C&O and Samtan Kideco Company already have 10 years of joint working experience in the Indian market by supplying coal to some of the biggest power companies in India including Tata Power Company Ltd, Reliance Energy Ltd, Calcutta Electricity Supply Corporation etc.

SAIL RSP dispatches TH charging boxes to ISP

PTI reported that Steel Authority of India Limited’s Rourkela Steel Plant has dispatched the first consignment of charging boxes to its sister concern IISCO Steel Plant at Burnpur.

RSP had taken up the order for developing and supplying 50 charging boxes for the twin health furnaces of IISCO, The first consignment comprised of four boxes from the RSP’s foundries department.

As per report, the entire pattern making, moulding and finishing was done in house at RSP and the job was methodically executed despite it being highly intricate.

KSFC to develop Steel Park at Koppal in Karnataka

UNI reported that State owned Karnataka State Financial Corporation is actively considering to set up a steel park at Koppal in Karnataka. The park would come up in 190 acres land and steps are already initiated to acquire the land required for the purpose.

Mr BS Yediyurappa deputy chief minister of Karnataka while speaking to newsmen said that a detailed project report is being prepared to set up the park aimed at adding value to the iron ore available abundantly in the area, so that the finished product got more value in the international market. He said that the report is expected to reach KSFC in three months.

Mammut Group and RIL form a PEB JV in Gujarat

It is reported that Dubai based Mammut Group and Reliance Industries have signed a JV agreement to set up a Dh403 million (USD 110 million) pre engineered building facility in Gujarat. Commercial production is expected to begin by 2008.


The facility will have a production capacity of 120,000 tonnes per annum of pre engineered steel building and will be integrated with a 1.8 million square meter pre cast concrete building facility.

Chennai Port cargo handling up

BS reported that Chennai Port handled 18.84 million tonne of cargo in the first four months of 2007-08, as against the ministry's target of 18.68 million tonne. This amounted to an 18.3% increase in tonnage from 15.93 million tonne achieved during the same period in 2006-07.

During 2006-07, the port handled an all-time high of 53.41 million tonne of cargo, registering a growth of 13.04% over previous year’s 47.25 million tonne, surpassing the ministry’s target of 52.27 million tonne for the period.

The port in a statement said that the port has proposed to construct a multi level car parking yard and a RoRo car parking wharf at a cost of INR 24.90 crore and INR 36.10 crore respectively inside the port complex to facilitate transportation of wheeled vehicles which can be driven in and out of the ship.

The 125 year-old Chennai port is an important car exports port of the country. It exported 114,756 cars in 2006-07 as compared with 102,692 cars in the previous year. As part of expansion, the port is also planning to augment power capacity at an investment of INR 39 crore. It has floated tenders for building a 7.5MW wind power station.

Coalmine accident victims crosse 95 till July 2007

Dr T Subbarami Reddy union minister of state for mines informed the parliament the details of state wise laborers who lost their lives in mine accidents for the last 3 years and till July 31st 2007 as under

No of Persons killed

* Figures are provisional
$ Figures are upto July 31st 2007

As per information collected from coal companies, amount of compensation paid to the families of the laborers killed in accidents in coalmines during the last 3 years is as follows:

Amount in INR

SAIL SSP provides water facility to villagers

It is reported that Steel Authority of India Limited’s Salem Steel Plant has constructed a water tank, sunk a bore well and installed a motor pump set to provide water to the Keerapapampadi village in Tamil Nadu.

Mr PM Balasubramanian executive director of Salem Steel Plant has inaugurated the supply of water from the tank recently. He said that Salem Plant would carry out more welfare activities in its surrounding villages and thanked the panchayat and the public works department for their cooperation.

Indian per capita power consumption reaches 631KWH

Mr Sushilkumar Shinde union power minister informed the parliament that India’s electricity policy envisages that the per capita availability of electricity will be increased to over 1000 units by 2012.

The per capita consumption of power in India in 2005-06 as calculated by the Central Electricity Authority has been about 631 KWH as against 17179 KWH in Canada

The region wise gross annual per capita consumption of electricity during 2005-06 is as under

Per capita consumption in Kilowatt Hours
Source: Central Electricity Authority

State wise gross annual per capita consumption of electricity during 2005-06 is as under

Per capita consumption in Kilowatt Hours
Source: Central Electricity Authority

The per capita consumption of electricity in some developed countries as calculated by the international energy agency for the year 2004 is as given below:

Per capita consumption in Kilowatt Hours
Source: International Energy Agency

6 shipyards in fray for SCI anchor tug supply vessel tender

It is reported that around 6 firms including Bharati Shipyard, Hindustan Shipyard and other international firms like Colombo Shipyard and 1 shipyard each from China, Korea and Bangkok have queued up for Shipping Corporation of India’s plan to acquire 4 anchor handling tug supply vessels with 80 tonne pull capacity.

The anchor handling tug supply vessels, to be used in unrestricted water, would be utilized for anchor handling, towing, transporting pipes, fresh water, diesel oil, bulk cement, stores materials, equipment, external fire fighting, emergency response and rescue, standby duty and anti pollution control and move men and materials between platforms. The vessel would also be used to supply supports to the offshore oil and gas field on a 24 hour per day duty.

Shipping Corporation of India had also stipulated that the vessel should meet UK Offshore Operators Association requirements with compliance certificates from classification society for class ‘C’ vessel. The shipyards are required to submit any one of the 6 specified designs including Robert Allan of Canada, Connan Wu of Singapore and Havyard, Vik Sandvik and Moss of Norway.

Incidentally, Shipping Corporation of India had recently cancelled a tender to procure 6 anchor handling tug supply vessels with 60 tonne pull capacity. Around 13 firms including Colombo Dockyard, ABG Shipyard, Bharati Shipyard and Cochin Shipyard had bid for that tender.

GAIL CMD gets distinguished fellowship award from IOD

GAIL India Limited recently announced that Dr UD Choubey CMD of GAIL has received the distinguished fellowship award of Institute of Directors for his contribution in the field of natural gas marketing and market development.

Mr N Gopalaswami chief election commissioner of India had presented the award on August 22nd 2007.

Orbit to sell Kalina commercial space to JSW Group

It was recently reported that real estate developer Orbit Corporation Limited would sell commercial space at Kalina in suburban Mumbai for INR 807 crore to JSW Steel Limited, JSW Power Trading Company Limited and JSW Investments Private Limited. JSW Steel announced that it would be purchasing office premises from Orbit at a cost of INR 336 crore.

Orbit has cancelled an earlier agreement of sale of a property at Lower Parel in Mumbai, measuring 0.205 million square feet of commercial space, to JSW Steel Limited and JSW Power Trading Company Limited.

Orbit will construct about 0.4 million square feet of commercial space for JSW at Kalina.

Pratibha wins Paras power plant contract from MSEB

Pratibha Constructions has bagged an award from Maharashtra State Power Generation Corporation for executing civil works of foundation and superstructure of main plant building, bunker bay along with foundations in boiler area, ESP area with ESP control room etc for Paras thermal power station expansion unit 2 1x250 MW in Akola district.

Bids were invited in February 2007. The project is part of four power projects in Maharashtra approved by the state cabinet in May 2006. The four projects are targeted for progressive commissioning between November 2008 and February 2010.

11 firms short listed for desalination plant in Gujarat

It is reported that Gujarat government has shoplifted 11 companies for setting up a seawater desalination plant in the Kuchchh region on a build operate transfer basis. The short listed firms include Reliance Industries, Adani, Doshion and French firm Swege Degromont.

The INR.600 crore plants will have a capacity to desalinate 150 million liters per day and will have its own lignite based power plant.

The project will be a JV and will be developed on a public private partnership model. A special purpose vehicle will be implemented for setting up the project.

China needs faster consolidation in steel industry

Fitch Ratings recently said that although mergers & acquisitions in China's huge, but highly fragmented steel sector, are increasing this year with big producers taking over the smaller ones, there is a need for much more in order to influence the dynamics of the industry worldwide and capitalize on the current steel price up cycle.

Fitch in a note said that “China's largest steel maker, Baosteel, accounted for only 5.3% of total domestic production in the first half of 2007 as compared with 6.5% in 2005, while many small and medium sized steel producers have continued expanding their production levels in order to avoid becoming acquisition targets. As a result, the output of steel producers with a capacity of less than 2 million tonnes per year increased nearly 30% YoY in 2006. In contrast to the surging output of steel products, which increased by 18.9% YoY to 237.6 million tonnes in the first half of 2007, the market shares of leading Chinese steel companies are shrinking.”

It also said the government's ban on foreign control over major state-owned steel makers provides an umbrella for Chinese steel makers from face to face competition with global giants. Mr Danny Chen associate director of Fitch's corporate team said “The strong administrative influences in the steel sector consolidation process makes it less efficient and predictable. Furthermore, in a relatively benign operating environment, acquisitions become more difficult given the strong resistance from the local governments as small local players remain profitable.”

Mr Cheng Weiqing an analyst with CITIC Securities Co in Beijing said the new pace of restructuring would help increase the steel sector's concentration ratio. He predicted that China's top 10 steel mills would control 36% of total crude steel production in the country this year up from 33% in 2006.

However Mr Zheng Dong from Guosen Securities Co in Beijing said that the current pace of merger & acquisition consolidations mainly pushed by the government is not fast enough for China's steel sector, where there are around 800 odd steel mills with the majority being too small to contest globally. Mr Zheng added that "Massive market driven Merger & Acquisition are expected two to three years later as steel makers will have to consolidate to survive mounting competition and gain more power in talks with raw material providers. Many small steel makers are unwilling to be bought out by big ones as they enjoy bumper profits thanks to strong market demand and prices."

Mr Xu Zhongbo CEO of Beijing Metal Consulting Company agrees "Who wants to be at the mercy of others if it's doing fine by itself? This is the biggest obstacle to M&A in this sector."

Dofasco to install PCI injection in its 2 BFs at Hamilton

ArcelorMittal’s Canadian unit Dofasco Inc announced that it would begin building a CAD 60 million pulverized coal injection system at its two blast furnaces in Hamilton for reducing fuel costs. The project is scheduled to be completed in January 2009.

The investment decision was bolstered by an agreement with the Government of Ontario to provide a CAD 6.05 million 5 year loan under the Advanced Manufacturing Investment Strategy program introduced by the Government of Ontario.

Ms Joan Weppler VP of Dofasco said “This announcement is of special importance, as it demonstrates ArcelorMittal’s commitment to ensuring Dofasco has the necessary resources to compete in an increasingly global market place. Dofasco appreciates the support that the Province of Ontario is providing to companies that invest in innovation. She continued in a global steel industry Dofasco has to compete with other plants worldwide for capital investment. Programs like AMIS help ensure that Dofasco Hamilton remains competitive into the future.”

Mr Dalton McGuinty Ontario Premier announced the AMIS funding at Dofasco’s Head Office in Hamilton. He said "Hamilton steelworkers are among the best in the world and we're proud to partner with them by investing in innovative new technologies. At Dofasco your quality and your products are making Ontario strong.”

In 2006, Dofasco was acquired by Arcelor SA and in 2007 Dofasco became a part of ArcelorMittal after Mittal Steel bought Arcelor. Its product lines include hot rolled, cold rolled, galvanized, Extragal Galvalume and tinplate flat rolled steels as well as tubular products.

Angang to reduce steel export in H2 of 2007

Shihua Financial Information citing an overseas reported that Angang Steel Company Limited forecast it would export less steel products in H2 2007 than of the same period of last to keep export some 20% of its output while the annualized exports could go slightly up YoY.

Mr Tang Fuping VC of Angang noted that in addition cutback on export rebates imposed by the National Development & Reform Commission gave relatively big impact on wire rod and HRC and raised the steel maker’s taxation.

Angang Steel exported 1.82 million tonnes steel products in H1 2007; and the export price averaged CNY 4395 per tonnes a CNY 425 per tonnes increase than in 2006.

In H1 2007, Angang sold steel products at an average of CNY 4200 per tonnes higher than CNY 3580 per tonnes posted in the same period in 2006.

CSC maintains steel prices for Q4 of 2007 despite pressures

Reuters reported that Taiwan's largest steel maker China Steel Corporation will keep most domestic steel prices unchanged in the fourth quarter, despite recent downward pressure in some markets, concerns about increased output and recently announced price cut by China's Baoshan Iron and Steel Co.

As per report, China Steel will keep most of its prices flat and actually raise prices for two products, steel plate by TWD 630 per ton and electric sheet by TWD 300 amounting to an average rise of 0.48% over all of its products.

Mr LM Chung executive VP told Reuters that "We considered the competitiveness of the domestic industry, but steel plate is in a serious deficit so we hoped to reflect this situation with a small increase.”

CSC had increased third quarter domestic steel prices by an average of 2.4% from the previous quarter.

2 trapped coalminers in Beijing survive after rescuers give up

Xinhua reported that 2 miners who had been trapped in a suburban coalmine in Beijing for more than five days managed to survive after rescue work ended. As per report, they were trapped after a cave in accident occurred last Saturday in an illegal private mine at the Jinjitai village in Fangshan district of southwestern Beijing.

As per report, 20 rescuers tried to free the miners but the rescue headquarters decided to give up rescue work on Monday as they failed to locate the miners and could not go down the shafts because the underground situation was chaotic and another cave in was likely to happen.

Four days after rescue work ended, the miners managed to break through the debris and climb out of the shaft on Friday morning.

The Beijing Times quoted an official from the district's work safety bureau as saying that their survival was a miracle. He said that the rescue was stopped on scientific grounds not disregarding the miners' lives.

Steel, scrap, manganese ore, grain keep Panamax rates firm

Platts reported that steel exports from France to South Korea, ferrous scrap out of the US and northern Europe to the eastern Mediterranean and manganese ore and grain cargoes from South America are helping to keep Panamax freight rates in the Atlantic very firm.

According to shipbrokers, South Korean charterer Panocean reportedly fixed the 2003 built Red Iris on a trip charter basis to load steel products in Montoir on the west coast of France for South Korea at USD 69,000 per day, which equates to a rate of USD 57.32 per tonne. Brokers said this compares favorably from a charterer's perspective with recent Handymax steel cargoes from the Mediterranean to the Middle East where rates of USD 65 million tonnes or above have been seen.

As per report, in the South Atlantic grain and manganese ore cargoes from Argentina and Brazil, respectively have been helping to keep rates firm with levels of USD 53,000 per day being paid for transatlantic voyages and around USD 65,000 per day for grain to Southeast Asia.

According to one broker scrap cargoes from northern Europe and the US are being fixed as Turkish steel mills continue to put new freight orders for ferrous scrap freight on the market elderly Handymaxes, capable of lifting 34,000 tonnes to 42,000 tonnes cargoes are finding favor in these trades. Brokers said that the 1984 built Halis Kalkavan were reportedly fixed on a trip charter with intention of loading scrap in Antwerp, bound for Turkish Black Sea at USD 45,000 per day. Scrap cargoes from the US east coast to both the Turkish Black Sea and Egyptian Mediterranean have been heard fixed at the USD 65 per tonnes level basis for 35,000 tonnes cargoes.

Ship brokers said that some ships that had fixtures cancelled, as a result of missing loading dates in the Caribbean and Mexican Gulf as they diverted to avoid Hurricane Dean, may find the flow of scrap cargoes useful alternatives. It said that around 12 Handysize ships due to load various cargoes including petcoke, grain, cement and alumina in the Caribbean/Mexican Gulf region this week and next had fixtures cancelled with their owners showing prompt availability.

PSC Metal to acquire Wooster Iron & Metal

It is reported that Ohio based scrap recycler PSC Metal will acquire Wooster Iron & Metal Co and that it will complete the acquisition by the end of September 2007.

The acquisition of this Ohio scrap metals processor will include its eight yards in total. Some important management team members from WIMCO will still be recruited as members of PSC's new management.

PSC Metal expects that this move will reinforce its ferrous and non ferrous business and to better serve its existing customers.

South Korean SS mills continue to cut output

It is reported that after POSCO decreased the output of 300 series stainless steel in August 2007, the company is expected to maintain the production cut in September 2007 also. As per report in August 2007, POSCO has halted the production at the third mill. It will now implement it again during September 1st to 15th 2007.

Meanwhile, BNG Steel and Hyundai Steel also keep the low level in production in August 2007. BNG Steel has ceased the production in order to maintain the equipment with the same reason in the Hyundai Steel.

Demands for stainless steel has weakened due to price slip in nickel, said a cold rolling mill.

MMX to reach 140,000 tonnes Corumbá output in 2007

Mr Paulo Gouvêa director of MMX legal affairs, while speaking at the presentation in São Paulo promoted by finance industry trade group Apimec, said that that Brazilian mining and metals company MMX expects output of 120,000 tonnes to 140,000 tonnes in 2007 at its Corumbá pig iron plant, a part of an iron and steel complex in Mato Grosso do Sul state. He added that "Next year we'll reach production of 400,000 tonnes per year.”

He Estimated CAPEX for the entire Corumbá project amounts to USD 234 million. The Mato Grosso do Sul complex also includes an operating iron ore mine expected to produce 2.2 million tonnes in 2007 as compared to 700,000 tonnes in 2006, in addition to a 500,000 tonnes per year semi finished plant due to start production in 2009.

MMX executive said that the second blast furnace is expected to start operations in two months adding that his company expects to sell a minority stake in the Corumbá complex to a partner this year.

MMX signed a long term deal to supply pig iron from Corumbá to US agribusiness company Cargill.

MMX is developing two other complexes. US iron ore and pellet producer Cleveland Cliffs has a 30% stake in its Amapá complex while London based mining giant Anglo American has a 49% share of Minas-Rio in Rio de Janeiro and Minas Gerais states.

Rio Tinto announces AGM for approval of Alcan buy

Rio Tinto has announced that extraordinary general meetings of Rio Tinto plc and Rio Tinto Limited are being convened for the purpose of approving the offer by a subsidiary of Rio Tinto plc for Alcan.

The Extraordinary General Meeting of Rio Tinto plc will be held at 2.00 PM on September 14th 2007 at London in UK and the meeting of Rio Tinto Limited will be held at 12.00 PM on September 28th 2007 at Melbourne in Australia.

Approval of the offer by the Rio Tinto shareholders will be sought by means of an ordinary resolution to be voted on under the joint electorate procedure. The board of Rio Tinto has approved the transaction.

The offer to purchase all of the issued and outstanding common shares of Alcan for USD 101 per common share in a recommended all cash transaction is being made by Rio Tinto Canada Holding Inc an indirect wholly owned subsidiary of Rio Tinto. The Offer represents a total consideration for Alcan common shares of approximately USD 38.1 billion. The Offer is open for acceptance until 6 PM Canadian Eastern Time on September 24th 2007 unless extended. The Offer is subject to a number of conditions including valid acceptances by holders of not less than 66.33%of Alcan shares on a fully diluted basis and the receipt of various governmental and regulatory approvals, certain of which the Offeror does not expect to receive prior to September 24th 2007. Accordingly, the Offeror currently intends to extend the Offer beyond September 24th 2007. The Offer is expected to close in the fourth quarter of 2007.

Coalmine blast in Inner Mongolia kills 7

It is reported that a gas explosion in an illegally operated Chinese mine in the northern Inner Mongolia region has claimed the lives of 7 people. The explosion occurred in the early hours of Saturday morning, when 23 people were working underground in the Liyuan mine and only 16 managed to escape.

Inspectors investigating the origins of the blast stated that the mine was under repair and should not have been producing coal.

The blast comes amid government made promises to improve mine safety after at least 181 miners were trapped and presumed dead following a flood last week.

Chinese output of major steel products in January to July 2007

China's iron & steel production kept steady growth in July 2007. It produced 41.25 million tonnes of crude steel up by 14.5% YoY. In July 2007, steel product outputs surged to hit some 47.73 million tonnes of steel products up by 23.9% YoY. Chinese steel makers' crude steel outputs amounted to some 279 million tonnes during January to July 2007 up by 18.5% YoY. Steel product outputs during January to July 2007 reached some 319 million tones up by 24.3% YoY.

In million tonnes

China major steel product output in January to July 2007 is as under

Long products

In million tonnes

Flat Products

In million tonnes

Tubes and others

In million tonnes

(Sourced from MySteel.net)

Atlas Iron announces new iron ore discovery at Abydos Project

Atlas Iron Limited recently announced that it has discovered a new iron ore mine at its Abydos Project located 100 kilometers south of Port Hedland in the Pilbara of Western Australia.

Atlas said that results have been received from the first three holes drilled at the S4 target on the Lalla Rookh Trend. The results support company's stated objective of targeting 15 million tonnes to 20 million tonnes of resources at Abydos to underpin 3 million tonnes per annum. These first three holes are part of RC program of 60 holes for 4,500 meters across 6 new prospects along areas the company previously identified as the Pincunah and Lalla Rookh trends. These trends cover Banded Iron Formation dominant units of the Paddy Market and Pincunah Hill Formations respectively which host the adjacent deposits of BHP Billiton and are highly prospective for direct shipping grade iron ore.

Mr David Flanagan MD of Atlas said that "These results are fantastic, they are best first pass drilling results achieved date and definitely warrant the aggressive drilling campaign planned for the remainder of the year. We are looking forward to more good drilling results, resource estimates and the results of the current scoping study over the next 6 months."

Atlas Iron Limited is working to complete environmental approvals and commence shipping of direct shipping grade iron ore from its Pardoo Project by October 2008. It T is targeting export of 1 million tonnes of DSO iron ore during the first 12 months of operations with production growing to 3 million tonnes per annum by 2010. Together with the development of the Abydos project the company is targeting an ultimate production of 6 million tones per annum of DSO before 2012.

As per Atlas release, the project includes
1. Excellent grade low impurity iron ore
2. Close to public access port, 100 kilometer to Port Hedland
3. Deposit exposed to surface
4. Along strike from BHPB iron ore deposits
5. Scoping study commenced

Russian demand for rails in H1 exceeds 1 million tonnes

Rusmet recently reported that demand for rails in Russian domestic market has exceeded 1 million tonnes in the January to July 2007 period, which is up by 14% YoY in comparison with the January to July 2006 period.

As per report, the largest consumers of rails remain railway enterprises and its share in the January to July 2007 period has exceeded 91% and delivery volumes has exceeded 0.96 million tonnes. Rail supplies through trade organizations also increased to 4200 tonnes per month and the growth of consumption from industry enterprises is up only by 5%.

With growth of internal consumption, export volumes of rails continue falling. After considerable rise in 2006, the decline of import volumes accounted almost 30% because of low supplies levels in the beginning of 2007.

West Elk coal mine gets permit to expand mining operations

It is reported that the West Elk coal mine recently received approval from the US Forest Service that will allow mining to start in new areas, probably in early 2009. Ms Kim Link spokeswoman for Arch Coal Inc said that current mining in the B coal seam will play out in late 2008 but the Forest Service’s approval to build a ventilation shaft and an escape shaft will assure that work in the untapped E seam can begin shortly afterward.

She added that “The ventilation shaft which will be used to vent methane will be 24 feet in diameter. We will build a separate shaft for an escape route that will be somewhere between 6 and 10 feet in diameter.”

Ms Link said the B coal seam has been actively mined for five years, and new mining in the E seam will help assure employment for miners for years to come. She said “The B seam runs out in November or December of 2008 and at that point we will initiate the E seam and plans for that go to 2018 or 2020.

Mr Charlie Richmond Supervisor of Forest Service said construction on the two shafts could begin this fall, depending on what happens in the 45 day appeals process that began with Monday’s approval. He added that “If we don’t get any appeals, they can start five days after that,” he said. “If we get appeals, then we go through a month or a month and a half before the appeals are resolved. I know they want to get started this fall.”

Mr Richmond said future permits for new mining at West Elk include permission to drill about 150 methane drainage wells, and the Forest Service will reach a decision this fall. The mine also must get state approval of its overall mining plan for the E seam.

In addition to the West Elk Mine, its only mine in Colorado, Arch Coal operates nine other mines: two in Wyoming, three in Utah and four in the Appalachia region.

Fitch affirms BB+ ratings with stable outlook for NLMK

Thomson Financial reported that Fitch Ratings has affirmed OJSC Novolipetsk Steel's 'BB+' long-term issuer default rating and national long-term rating at 'AA' with a stable outlook.

The ratings reflect NLMK's strong financial profile, sound credit metrics and geographical diversification of revenues that provides the company with good headroom for its expansion strategy, both through the technical upgrade of existing facilities and the acquisition of new ones

The stable outlooks reflect Fitch's expectations that NLMK's scale, low cost production base and geographical diversification of sales will enable it to maintain its strong financial profile throughout the industry cycle. However, Fitch notes reduced to nil self sufficiency of NLMK in coking coal which could partly be mitigated by already scheduled deliveries for 2007 and established long term relationships with the main Russian coking coal producers.

Fitch also affirmed NLMK'S short term IDR at 'B'.

Minara Resources H1 profit surge due to high nickel prices

It is reported that Australian Minara Resources Ltd more than doubled its January to June 2007 profit on soaring nickel prices but said it saw volatility in prices continuing for some time.

Production at its outback Murrin Murrin project where Minara has a 60% share rose by 6% YoY to 14,889 tonnes of nickel and 1,062 tonnes of cobalt. But revenue doubled to AUD 530 million as the price of nickel used in the making of stainless steel vaulted to record levels. It said net profit for the six months to June 30 was a record AUD 246.5 million as compared with AUD 100.7 million in H1 of 2006.

Minara Resources said "The nickel market has entered a period of increased volatility after a substantial increase in nickel prices in the first half of 2007. Although the fundamentals of the nickel market remain sound volatility in the price will continue for some time.’

Minara last month downgraded its full year production forecast to 31,000 tonnes to 33,000 tonnes from an earlier 32,000 to 35,000 tonnes due to operational problems.

Xstrata to double molybdenum capacity at Chilean smelter

Platts reported that Xstrata Copper is studying plans to double the treatment capacity for molybdenum concentrates at its Altonorte smelter in northern Chile.

The expansion would allow the company, which acquired Altonorte through its takeover last year of Falconbridge, to realize synergies with increased molybdenum output from its mines in the region including Collashuasi, Tintaya in Peru and Argentina's Alumbrera which began producing the minor metal last week.

Mr Jon Evans VP for northern Chile said that the project would involve refurbishing an idled roaster and adding leaching capacity at the complex, which currently has capacity to process around 10 million pounds per year of the minor metal. Mr Evans said the size and timing of the investment is yet to be defined. He said “We are still evaluating the project but we should have a clearer idea in the coming months."

Mr Walters appointed as new public relations director of IISI

The International Iron and Steel Institute announced that it has appointed Mr Nicholas Walters to the new position of Public Relations Director. Mr Walters will be responsible for all external communications including communications strategy issues management and reputation, media, website and publications.

Mr Walters is the former CEO of the London office of Manning Selvage & Lee, a leading international public relations consultancy. Before that, he was Chairman and CEO of GCI Asia based in Hong Kong.

Mr Ian Christmas general secretary of IISI said “We are delighted to welcome Mr Walters on the board. He brings a level of expertise that will be very valuable as the worldwide steel industry tackles the increasingly complex policy and reputation issues of today.”

Mr John Fewtrell formerly General Manager of Communications is now General Manager, Internal Communications. He is responsible for all internal communications and steeluniversity.org.

Nippon Denko to increase low phos FeMn output by 70%

JMB reported that Nippon Denko would expand the output capacity of super low phosphorous ferromanganese by around 70% to around 30,000 tonnes per year at Tokushima plant by end of 2008 for JPY 2 billion for adding new electric furnace for the refining.

Nippon Denko will increase the supply to group of Nippon Steel, which is the largest shareholder of Nippon Denko when special steel demand increases and electrolytic manganese market keeps high.

Nippon Denko has improved the supply ability of the major items of manganese ferroalloy though a series of efforts including expansion of high carbon ferromanganese pumping up of Chinese silicomanganese plant and cost cutting.

Davy Markham to supply large mine hoist to CVRD Inco

It is reported that Sheffield based heavy engineering specialist Davy Markham has secured a GBP 6.5 million export order from leading Canadian mining and refining company CVRD Inco Limited.

The CVRD Inco order is for the design, manufacture, supply to site and commissioning of the double drum, single clutch hoist, complete with all electrical controls and drives which are being sub contracted by Davy Markham to power and automation group ABB in Montreal.

The contract is for a dual purpose, double drum 16' 6' diameter mine hoist which will be used for skipping and personnel handling duties at the newly reopened Totten number 2 shaft, on the edge of the Sudbury Basin in Northern Ontario, the largest concentration of nickel copper bearing minerals in the world. Capable of handling payloads up to 36,000 pounds at speeds of 2,200 foot per minute and hoisting distances down to 4,140 foot it will be operated initially in single line mode for skip hoisting duties throughout the shaft sinking stage then converted to normal double drum configuration for transporting personnel during production.

Powered by a directly connected 4,000 HP AC motor, it meets the latest Ontario and Canadian Hands standards for mining plant and is designed with replaceable drum shells, plate liners and rope risers, enabling it to be reutilized in a deeper shaft should the future need arise.

CVRD Inco Limited formerly INCO has been operating in Sudbury since 1902 and its mining and refining operations there, consisting of six underground mines a mill, smelter and refinery are now amongst the largest in the world.

Metalrax H1 pretax falls due to costs of Belsize integration

Thomson Financial recently reported that UK based Metalrax Group PLC reported a lower first half underlying pretax, which was hurt by a STG 2.36 million exceptional costs related to the protracted integration of Belsize into Bacol Fine Blanking and a lower than usual demand for certain businesses in the Engineering Support Services division.

It swung to a pretax loss of 770,000 compared with a profit of GBP 3.70 million while underlying pretax profit for the period to end June 2007 came in at GBP 1.59 million as compared to GBP 1.82 million last time. Revenues stood at GBP 59.261 million compared with GBP 57.91 million.

The specialist steel products supplier however said that trading in the second half to date is in line with its revised expectations for the year. It added that it has exchanged contracts for the disposal of two properties generating GBP 3.25 million in cash.

Severočeské doly's H1 profit up 68% YoY

Czech mining company Severoceske doly announced that its January to June 2007 profit netted CZK 1.611 billion up by 68.2% YoY. Its revenues from coal sales rose by 21.8% to CZK 4.85 billion and sold 11.857 million tonnes of brown coal in January to June 2007 a growth of 1.426 million tonnes against January to June 2006.

In CZK million
Amount of coal sold in million tones
(Source Severoceske doly)

Mr Demjanovic CEO of Severočeské doly said that "To be able to compare economic results, we have to wait until the end of the year. We do not know what will be the effect for instance of the modernization of CEZ's power station in Tusimice which was launched in June on coal sales."

The electricity producer CEZ is a 100% shareholder in Severočeské doly after it bought nearly a 56% state held stake in the mining company for CZK 9 billion in 2006.

Completion of OneSteel and Smorgon Steel merger

OneSteel Limited has announced the completion of the OneSteel and Smorgon Steel merger. The new OneSteel shares associated with the Smorgon merger commenced trading on a normal settlement basis on the Australian Stock Exchange on August 21st 2007.

Mr Geoff Plummer MD & CEO of OneSteel Limited said “Today effectively marks the completion of the OneSteel and Smorgon Steel merger process and management can now focus on pursuing the opportunities that the combined businesses present. I look forward to working with my management team on an effective integration that delivers the USD 70 million in net synergy benefits the merger provides and positions the company to optimize the growth opportunities that we are now prioritizing.”

Furthermore, Mr Peter Smedley Chairman of OneSteel’s has announced that Mr Graham Smorgon and Mr Laurence Cox have been invited to join the OneSteel Board from its September meeting.

Pingdingshan Coal and Guodian ink coal MoU

Interfax China reported that Pingdingshan Coal Company Ltd, a large coal company based in the city of Pingdingshan in Henan Province, recently signed a contract with the China Guodian Corp over the mid term to long term development of coalmines and coal based thermal power plants.