JSW Steel targeting 10 million tonnes per year exports in future

BS reported that JSW Steel is planning to export 10 million tonnes of steel in the next 10 years under its plans to scale up its steel making capacity to 30 million tonnes in the next 10 years. JSW Steel plans to export 5 million tonnes as value added steel products and 5 million tonnes of semi finished steel.

The report cited Mr Sajjan Jindal vice CMD of JSW Steel as saying that “In the next 10 years, I want JSW Steel to be a 30 million tonne integrated steel maker in India. To spread my risks, I would like to sell 20 million tonnes in India and export 10 million tonnes.”

Mr Jindal added that “We will build or acquire facilities abroad to market this 10 million tonnes. The US acquisition is in line with this strategy. We will bring in the semis, roll it and make pipes. These pipes sell for USD 1,650 a tonne. I do not know of any steel product, which can be sold at that price.”

Vedanta gets SEBI nod for Sesa Goa

It is reported that market regulator SEBI has given its approval to Vedanta Resources for buying additional stake from public shareholders of the iron ore company Sesa Goa. Vedanta’s stake in Sesa Goa will go up to 71% after the offer.

Vedanta made an open offer to buy additional 20% stake in Sesa Goa soon after it acquired 51% stake in the company in April 2007 from Japanese Mitsui Corporation for USD 981 million. The offer was made at INR 2,036 per share, same price Vedanta paid to Mitsui. However, the offer was delayed since SEBI approval did not come through due to some legal issues.

Now that SEBI has given the approval for open offer, Vedanta is all set to revive the offer plan. According to company sources, it will make the public announcement soon and is expecting good response for public shareholders, as the offer price is much above the current market price.

Sesa Goa produces nearly 10 million tonnes of iron ore a year and has estimated reserves of 207 million tonnes. Sesa Goa posted an operating profit of INR 860 crore on sales of INR 1,870 crore in 2006.

Origo Sino to invest USD 10 million in Fomento International

Thomson Financial reported that Private equity adviser Origo Sino India PLC said that it would invest USD 10 million in Indian iron ore mining company Fomento International Ltd, subscribing for about 3%.

Origo Sino said that Fomento International Ltd intends to expand significantly in African and Far Eastern markets with Origa as a strategic and financial partner.

Mr Chris Rynning CEO of Origo said “Origo's subscription in Fomento International Ltd further strengthens our position in the rapidly growing natural resources supply market comprising China and India.”

Orissa government seals 2 Kalinga Nagar steel plants for pollution

SNS reported that district administration of Jajpur has sealed 2 steel plants Rohit Ferrotech and Dinabandhu Power & Steels Limited in Kalinga Nagar for violating pollution control norms and depleting the ground water resources.

Mr Susanta Kumar Mohanty sub collector of Jajpur said that ‘‘Despite repeated reminders to take steps in order to check pollution and stop using ground water resources by the district administration, the 2 plants did not pay any heed.’’ He added that the decision to seal both the plants was taken at the review meeting held on August 25th 2007.

Earlier, Mr Arabinda Padhee former Jajpur collector had directed the executive engineer of water resources Jaraka division, to file an FIR against Visa steels for depleting ground water resources in Kalinga Nagar. Few days back, thousands of residents of Jakhapura village staged a dharna in front of the Visa Steels office in Kalinga Nagar demanding provision of safe drinking water and pollution free environment in the affected villages.

Essar to set up 1200 MW plant in Jamnagar

The Essar group announced plans to set up a 1,200 MW power plant in Gujarat for INR 4,800 crore as a part of it’s INR 20,000 crore plan to scale up its generation capacity to 6,500 MW in next five years. Essar has so far announced details of projects with a combined capacity of 3,600 MW. Mr AK Srivastava MD of Essar Power said that “The details of the remaining projects including their location and investments would be announced in next six months.”

The project, for which the company will import coal from Indonesia, would be implemented in two phases. The first project of 600 MW is expected to go on stream by February 2011 while the balance 600 MW will start commercial operations by August 2011. It has identified around 700 acres of land near Khambalia in Jamnagar district for the project. EPGL will create its own captive infrastructure to receive imported coal by setting up a port and other related facilities. Essar Power (Gujarat) Limited is in the talks with a Chinese company and BHEL for procuring equipment for the project. It is expected to place orders for equipment by next two months.

Essar Power (Gujarat) Limited plans to finance the project through a mix of debt and equity. While INR 1200 crore is likely to be the company’s equity contribution, the balance INR 3600 crore will be mobilized through debt. The financial closure is expected to be achieved before the end of 2007.

Essar Power (Gujarat) Limited signed an agreement to supply 1,000 MW of power to Gujarat government for next 25 years at INR 2.40 per unit. Essar Power (Gujarat) Limited is free to sell the balance power at its will.

Essar Power (Gujarat) Limited is a subsidiary of Essar Power Holdings Limited, the group’s investment vehicle in the power sector. The group has so far completed five power projects with a capacity of over 1200 MW.

Union mining ministry may get more powers for allocation

PTI reported that the India’s union mining ministry has sought the union cabinet's approval for empowering it to revise inconsistent orders passed by the state governments on mining issues.

The report cited an official as saying that the approval has been sought based on the recommendations of a high level committee, which reviewed the National Mineral Policy.

The Parliamentary Standing Committee on Coal and Steel in its latest report had observed that under the Mines and Mineral Act, the union government has no power to revise any order passed by a state government and had demanded the Centre be adequately empowered to revise inconsistent orders passed by state governments.

Indian Railway withdraws 10% surcharges on commodities

Mr R Velu minister of state for railways has recently informed Indian parliament that Indian ministry of railways has withdrawn 10% supplementary surcharge on commodities having classification above Class 130 when transported in mini rakes and 2 point rakes effective from May 20th 2007.

Ministry of Railways has announced 30% freight discount on incremental earning in traditional empty flow directions under the Incentive Scheme for Traditional Empty Flow Direction.

The above two measures were undertaken to attract more traffic and optimum utilization of railway wagons in traditional empty flow direction. Accordingly, Railways do not anticipate any loss due to these measures.

L&T to take strategic stake JV with Dubai Aluminum

It is reported that Larsen & Toubro will invest around INR 400 crore in its proposed 3 million tonne alumina refinery JV with Dubai Aluminum Company in Orissa. The first phase of the plant at Rayagada with 1.5 million tons capacity is scheduled to be operational by 2010.

Mr AM Naik chairman of L&T said that "We will be investing around INR 400 crore in the venture in which we will have 26% equity stake. The rest will be with Dubal."

The total project cost would be INR 15,000 crore and L&T would do the engineering, procurement and construction job for the project, which would cost around INR 5,000 crore. The proposed JV, Raykal Aluminum Company, has bauxite mines located at Kutrumali and Sijimali hills, which are within 10 kilometers of the proposed plant site.

Mr Naik also made it clear that L&T has no intention to be a long term partner in the proposed refinery and it will get out of the project at an appropriate time with better returns, just as in the case of cement. He said that "Cement was never our core business. We are not keen on running alumina business as well. We will sell our stake in the venture at the right time, at right price. We will sell the remaining stake at an appropriate time so that it can fetch best value for the shareholders. The share price of the company went up to INR 1,100 crore sometime ago. Now it is being traded at around INR 850 per share. Why should we sell now?”

Mr Naik clearly said that “Our focus has always been on our core businesses. The proposed investment in the alumina business is a strategic investment and it is good in the long term."

Renewable energy likely to get preferential tariff

BL reported that a preferential tariff scheme for renewable energy power producers is likely to be announced by Indian government soon. The report cited Mr V Subramanian secretary in ministry of new & renewable energy as saying that “Introduction of preferential tariff for producers of renewable energy is under consideration by government.”

Mr Subramanian added that “We are talking to different state governments on the issue. Preferential tariff is the most efficacious way of increasing contribution of renewable energy to the grid. Some counties like Germany have been successful in encouraging renewable energy through preferential tariff.”

Mr Subramanian said that efforts are on to fine tune modalities such as convincing the distribution companies to purchase Renewable Energy at a higher price. He said that “For this, we need to talk to electricity regulatory commissions in states. At least 12 such commissions appear willing for preferential tariff.”

Mr Subramanian further added that “There is much scope to grow in the sector as we are only utilizing 7% of installed capacity which accounts for about 2% of national grid. The target for 10th Plan was to add 14,000MW, but 6,000 MW was added with over INR 30,000 crore investment. The investment from private sector is expected to grow significantly. It could be over INR 60,000 crore in next 5 years.”

As compared to 3,700MW of nuclear power in the country, renewable energy production now stands at 10,500MW.Out of total renewable energy capacity, about 7,000MW comes from wind energy, 2,000MW through small hydel projects and 1,800MW from cogeneration plants.

All UMPP to commission one unit in 11th Plan - Report

ET recently reported that in order to catch up with the delays, Indian government is considering a mechanism to make it mandatory for companies executing ultra mega power projects to commission a minimum one unit of about 660MW in the 11th Plan for all nine UMPPs. The move is aimed at augmenting government efforts to achieve the targeted addition of 78,577MW of additional capacity during the 11th Plan and UMPPs are now being considered for providing additional generation capacity of at least 6,000 MW during the 11th Plan.

The report cited an official in power ministry as saying that “UMPPs should start giving tangible results soon. We are planning to ask bidders of all UMPPs if they could advance the implementation schedule of their projects and commission at least one unit by 2012. However, this would depend on the completion of bidding process for all the proposed nine UMPPs by early next year.”

For the two projects, Mundra and Sasan, where bidding process has already been completed, the successful bidders have been asked to complete one unit of 660MW by 2012. TATA Power, that has won the bid for Mundra project has agreed to add two units by the end of the Plan period. Indian government is also planning to ask Reliance Power to commission at least one unit at Sasan by that time although in the letter of intent, Reliance Power has agreed to commission the first unit in 69 months from the date of signing the power purchase agreement.

The condition may also be imposed for two other projects, Krishnapatnam and Tilaiya where the bidding process has started. Other projects, including in Gujarat, Maharashtra, Orissa and Tamil Nadu may also be asked for earlier completion schedule.

WB steps up land acquisition process for 4 steel projects

It was recently reported that West Bengal cabinet has set in motion the process to acquire 11,300 acres for 4 identified steel projects in the districts of Bardhaman and Purulia.

The land in Bardhaman was to be acquired for the proposed steel plants of the Abhijit and Bhushan Steel groups, which will need around 2,500 acres each. Around 6,000 acres in Purulia will be acquired for 2 steel plants to be set up by the Jai Balaji Group at around 3,800 acres and Adhunik Group at around 2,500 acres.

According to project proposals submitted to the government, the 4 steel plants will bring in investment of around INR 33,000 crore to West Bengal.

Center approves setting up of new uranium plant in AP

It is reported that union government has approved setting up of a new uranium mine and processing plant at the cost of INR 1,106.29 crore at Tummalapalle in Cuddapah district of Andhra Pradesh. The plant will be set up by Uranium Corporation of India Limited.

Mr P Chidambaram union finance minister, while briefing newspersons after the Cabinet Committee on Economic Affairs meeting, said that the setting up of the mine would meet the uranium fuel requirements of the nuclear power program. The mine is likely to be commissioned within 30 months and the processing plant in 36 months.

Department of Atomic Energy is also planning open mining operations in Meghalaya and explorations in Karnataka, Rajasthan and Madhya Pradesh. By 2030, DAE has targeted to generate 40,000 MW of energy through its latest uranium development program.

Indian power sector undertakings to get tough targets in 11th Plan

PTI recently reported that India power majors National Thermal Power Corporation, Power Grid Corporation and National Hydro Power Corporation will have to work overtime in the 11th Five Year Plan as the Planning Commission has proposed to increase the internal and extra budgetary resource funds they must generate on their own by almost four times to INR 278,800 crore from INR 73,630 crore in the 10th Plan.

As per proposal the targets are
1. NTPC - INR 160,000 crore
2. PGCIL - INR 55,000 crore
3. NHPC – INR 23,955 crore

Power utilities will have to raise substantial resources from tariffs, bonds and capital markets in the coming years and development of generation capacity as well as better transmission and distribution network.

Approach paper to the 11th plan, which was approved by the National Development Council earlier this year, said that GDP growth of 9% was not possible without a commensurate increase in supply of energy, electricity, coal, oil and gas and other fuels. Planning Commission is likely to finalize the 11th Plan documents before the end of this fiscal. The total internal and extra budgetary resource proposed for the 11th Plan is likely to be around INR 1,190 million crore as against INR 482.9 million crore during the 10th Plan.

NTPC plans to enhance Ennore project capacity by 500 MW

BL reported that, even as preparations for the foundation stone ceremony for the National Thermal Power Corporation’s 1,000 MW Ennore project on September 5th 2007 are under way, it is planning to enhance the capacity of the project by another 500 MW.

Mr T Sankaralingam CMD of NTPC said that the addition of a third unit of 500MW capacity would help bring down the overheads of the project.

The Ennore project, a JV with the Tamil Nadu Electricity Board, will be put up with an investment of INR 5,200 crore. The project will include a 200 million liters a day desalination plant, in which BHEL will supply the equipment.

S&P puts TATA Power corporate credit rating on watch

TATA Power Company Ltd recently informed BSE that Standard & Poor's Ratings Services had placed it's corporate credit rating on Credit Watch with negative implications in May 2007, post acquisition of Coastal Gujarat Power Ltd an SPV formed to execute the 4,000 MW Mundra project.

S&Ps has now revised its rating from 'BB' to 'BB-', the outlook being Stable. At the same time, the rating on the Company's Senior Unsecured Bonds has also been revised from 'BB+' to 'BB-.'

As per release, S&P's considers that TATA Power's expansion plans will substantially increase its consolidated debt and will result in a change in its credit parameters. At the same time, they believe that the it's liquidity position is adequate. The stable outlook factors in the relative predictability in its operating cash flows stemming from its licensed businesses stable operations and adequate liquidity. TATA Power is also expected to benefit from good access to financial resources and a well staggered debt maturity profile.

FMG and Baosteel subsidiary form JV for Pilbara iron ore project

Fortescue Metals Group Ltd has finalized a JV agreement with a wholly owned subsidiary of Chinese Shanghai Baosteel Group Corporation to explore and potentially develop a targeted 1 billion tonne prospective magnetite deposit within Fortescue's tenement areas in the Pilbara region of Western Australia. The JV follows the signing in March 2007 of a MoU between the two companies outlining the development.

The JV agreement relates to specific land tenement areas, which are close to the Fortescue rail corridor between FMG's Cloud Break mine site and Port Hedland. Baosteel will fund the exploration of the prospective areas and, if approved by a joint operating committee of the JV, will then fund the pre feasibility and definitive feasibility studies.

Under the terms of the JV the parties have agreed to explore and develop an area to target at least 1 billion tonnes of magnetite resource noting that a JORC resource estimate has not been determined to date as insufficient exploration has been undertaken and it is uncertain if further exploration will result in an estimate being determined. The area's mineralization is described as predominately Banded Iron Ore Formation magnetite.

The agreement provides for the phased development of the project as follows
1. Exploration and resource definition - target delineation of at least 1 billion tonnes
2. Feasibility studies
3. Agreement to proceed to mine.
After the JV successfully completes stages 1 and 2, as funded by Baosteel and reaches agreement to proceed to stage 3, the equity share will be 50:50.

Fortescue's responsibilities include the holding charges and provision of the exploration areas, the delivery of requisite consents, approvals and JV access at market competitive rates to Fortescue's transport infrastructure. It is intended that all initial costs of Stages 1 and 2 will be reimbursed to the parties from any future JV proceeds. In the event the JV makes the decision to proceed to mining in stage 3, the terms of the JV will be further negotiated to reflect an operating business. The basic terms and conditions embodied within the JV will remain consistent across any new agreement.
Mr Russell Scrimshaw ED commercial of FMG at the signing ceremony in Shanghai said the JV further secures the strong relationship between the two companies. He said "While Fortescue is very much focused on developing its direct ship marra mamba operations, the fact that Baosteel is also interested in magnetite development opportunities and is prepared to use its financial strength and technical expertise to facilitate such development, creates a classic win win for both groups."

At the signing ceremony of the MOU in March, Fortescue and Baosteel also executed a separate and unrelated long term iron ore off-take agreement for up to 20 million tonnes per annum.

Mittal Steel shareholders approve 1st step merger into ArcelorMittal

Extraordinary General Meeting of shareholders of Mittal Steel Company NV has approved the merger of Mittal Steel into ArcelorMittal, a wholly owned subsidiary of Mittal Steel. 945,207,771 shares or 66.6% of Mittal Steel’s outstanding share capital were present or represented at the EGM. 98.8% of the votes casts at the EGM were in favor of the proposed merger. The merger is expected to be effective on September 3rd 2007. The merger is the first step in the two step merger process between Mittal Steel and Arcelor SA.

Upon effectiveness of the merger, holders of Mittal Steel shares will automatically receive one newly issued ArcelorMittal share for every one Mittal Steel share on the basis of their respective holdings as entered in the relevant Mittal Steel shareholder registry or their respective securities accounts:

Upon the day of effectiveness of the merger, the ArcelorMittal shares will be listed and traded on Euronext Amsterdam by NYSE Euronext, Euronext Brussels by NYSE Euronext, Euronext Paris by NYSE Euronext and the stock exchanges of Barcelona, Bilbao, Madrid and Valencia, listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange. The ArcelorMittal shares will be listed and traded on the New York Stock Exchange as of September 4th 2007 because September 3rd 2007 is a public holiday in the United States due to Labor Day.

The Mittal Steel class A common shares, which along with the Mittal Steel class B common shares, will automatically disappear in the merger, will no longer be listed and traded on Euronext Amsterdam by NYSE Euronext, Euronext Brussels by NYSE Euronext, Euronext Paris by NYSE Euronext, the stock exchanges of Barcelona, Bilbao, Madrid and Valencia, the New York Stock Exchange and listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange as of the day of effectiveness of the merger. The last day of listing and trading of the Mittal Steel class A common shares on these exchanges is expected to be August 31st 2007.

ArcelorMittal and Arcelor currently expect to publish details concerning their merger (the second step in the two-step merger process between Mittal Steel and Arcelor) before the end of September 2007.

Cazaly loses appeal for Shovelanna iron ore deposit

It is reported that Australian iron ore junior Cazaly Resource’s bid to secure the lucrative Shovelanna iron ore deposit in the Pilbara has been thrown out of court in Perth.

Mr Nathan McMahon MD of Cazaly Resourced told ABC radio in Perth that he is appalled by the decision. He said that "What really upsets me, being a long term industry player, is that we've done everything right, we followed the rules is this decision. Does it validate the view that because you're bigger you have more rights? I don't think so."

Mr Sam Walsh CEO of Rio Tinto has welcomed the court's decision and said that he hopes the matter is now closed. He added that the ruling supports the company's strategy of substantial, long term investment in the state.

As per report Cazaly pegged the deposit in 2005 after long term owner Rio Tinto inadvertently allowed its lease to expire. Last year, Mr John Bowler resources minister of Western Australian handed back the tenement to Rio Tinto. Cazaly appealed against the minister's decision, saying Mr Bowler relied on information about the state's iron ore policy, which had been misquoted.

Rio Tinto argued that returning the tenement to the iron ore giant is in the public interest. It said that if companies believed they could lose a tenement despite taking reasonable steps to retain it, there could be a big impact on investment in Western Australian.

CCTDA forecasts coal price hike in Chine in 2008

China Coal Trade & Development Association forecast that coal price may experience a new round of hikes next year as the supply and demand relationship will change and coal undersupply may emerge during the eleventh Five Year Plan. China will be short of some 100 million tonnes of coal in late 2010.

According to China Coal Trade & Development Association, as Chinese government's macro control on coal industry gradually takes effects, coal supply is to some extent curbed. Coal industry is listed among overcapacity industries and new projects are strictly controlled, thus investment growth in fixed assets in the industry drops markedly.

It added that besides, the ministry of land and resources announced this February to suspend exploration right application of new coalmines, in a bid to prevent overheated investment and overcapacity. Ongoing shut down of small coal mines, plus nice economic environment at home and abroad, blesses coal industry with a bloomy development in 2008.

Coal price may climb along with the rise of country's consumption level. Though many ongoing coalmines will be put into operation next year and coal demand may shrink owing to tight control on the industry, government's policies, such as resources tax imposition that in under way, will inevitably drive up coal price.

(Sourced from MySteel.net)

US steel imports in July 2nd highest in 2007

Based on preliminary Census Bureau data, the American Iron and Steel Institute has announced that the US imported a total of 3.22 million tons of steel in July 2007 including 2.45 million tons of finished steel up by 6%MoM and 2%MoM respectively as against June 2007. Total imports in July were the second highest monthly total for the year.

While overall imports YTD 2007 have declined against the all time record year of 2006, total and finished steel imports through the first seven months of 2007 on an annualized basis remain up 12% and 15% respectively as against 2005 which itself saw significant import levels. In addition the 3 month rolling average of finished imports is up by 12%.

Large increases in July 2007 against June 2007 include sheets and strip all other metallic coated up by 45%, plates cut length up by 42%, reinforcing bars up by 23%, line pipe up by 22% and semi finished steel used in substantial quantities by converters and processors up by 21%.

The imports from various countries is as under

In ‘000 net tons

Mr Ward J Timken Jr chairman of the board of directors of The Timken Company and chairman of AISI said that, “Despite high inventories and slowing demand in some segments, the US market remains very attractive to foreign producers, including those in non market economies with a history of shipping dumped and subsidized product to the United States. When Congress returns from August recess, we will continue to work with lawmakers and other industries in support of a legislative agenda that includes strengthening our trade laws at the core.”

Mechel acquires 100% stake in Bratsk Ferroalloy Plant

Russian mining major Mechel announced that it has acquired 100% stake in the charter capital of Bratsk Ferroalloy Plant OOO.

A Mechel release said that “The acquisition is in line with Mechel’s strategy aimed at developing its steel segment, improving its operational efficiency, reducing production costs and leveraging synergies within its business. Bratsk Ferroalloy Plant’s operating within Mechel group of companies will enable the plant to significantly reduce its production costs and improve its performance by utilizing the synergies between Mechel’s raw material, steel and power business segments.”

Bratsk Ferroalloy Plant is one of the largest enterprises in Eastern Siberia producing high grade ferrosilicon. The plant’s ferrosilicon output totals 84,000 tonnes annually and comprises a 13% market share of Russia’s total output. Bratsk Ferroalloy Plant’s revenues for 2006 on a Russian Accounting Standards basis amounted to RUB 1.3 billion (USD 51 million) and net profit was approximately RUB 151 million (USD 6 million). Its net assets on a Russian Accounting Standards basis amounted to about RUB 4.2 billion (USD 165 million) as of the end of 2006.

Mr Vladimir Polin CEO of Mechel Management OOO said that “We continue to implement our strategy to improve the efficiency of our steel segment. The acquisition of Bratsk Ferroalloy Plant enables Mechel to increase its competitiveness by entering new markets and operating within the steady business of ferroalloy production. Developing the ferroalloy business, in which energy costs are dominant, will enable us to gain synergetic effect both due to the plant’s consumption of Mechel’s own coal and its supplies of ferroalloys to our steel subsidiaries for subsequent processing into high margin marketable products.”

WISCO buy of stake in Pilbara project from CITIC in troubled waters

Interfax reported that Wuhan Iron & Steel Corporation has run into negotiation difficulties with CITIC Pacific over its intended stake acquisition of iron ore projects in Western Australia's Pilbara region. The report cited a WISCO official as saying that "Although we have come up against various difficulties in finalizing a deal with CITIC Pacific, this is a long awaited project and we do not intend to abandon it easily."

Mr Chen another WISCO official from the development planning office said that "The problem has nothing to do with price, but concerns how the project will be managed. We still intend to acquire 50% of CITIC Pacific's stake in the projects, which will leave us with approximately 40% interests in the projects. Moreover, in May 2007, CITIC Pacific agreed to sell WISCO 50% of its stake in the magnetite mine, which contains 1 billion tonnes of proven iron ore reserves." He added that whatever the outcome, a decision would be reached in the very near future.

According to a report published by Hong Kong based newspaper Wenweipo, WISCO is currently negotiating to acquire a 20% stake in various CITIC Pacific magnetite projects in Western Australia's Pilbara region. The China Metallurgical Group Corporation signed a purchase agreement with CITIC Pacific on August 20th 2007 for a 20% stake in the projects and CITIC Pacific intends to retain control of the projects with the remaining 60% stake.

The report also revealed that both Tangshan Iron & Steel Group and Handan Iron & Steel Group previously negotiated for stake in the projects with CITIC Pacific but were unable to reach an agreement. CITIC Pacific owns the Sino Iron Project and Balmoral Iron Ore Project in Western Australia and has been searching for equity partners to help develop the projects. CITIC Pacific intends to commence initial production from the iron ore projects in 2009 and will supply both the company's own steel mills, as well as other steel mills in China.

EU drafts AD legislation for Chinese ferrosilicon

China Business News reported that an authorized EU institute has drafted antidumping legislation procedures against FeSi imports from China and Russia, with formal enactment to come out in a few days. As per report, the authorized EU institute finished draft legislation of antidumping against FeSi import from China, Egypt, Kazakhstan, Macedonia and Russia, under heavy pressure from Eu ferroalloy industry participants.

EU initialed AD investigation into China's FeSi in October 2007 and released preliminary findings in July 2007, claiming to impose 9.7% and 33.7% AD duty on Inner Mongolia Erdos Xijin Mining and Lanzhou Good Land Ferroalloy respectively and 36.1% for all un answered enterprises.

Customs data shows that China exported 974,000 tonnes of FeSi during January to July 2007 up by 36.86% YoY. Exports to Belgium, France and Italy posted 53,000 tonnes, 23,000 tonnes and 35,000 tonnes up by 97% YoY, 239% YoY and 9.4% YoY respectively.

This is the second time EU takes protection measure against Chinese FeSi. The first AD case was from 1992-2002. Once enacted, the AD duty will last at least for 5 years.

A Ningxia based metallurgy enterprise told the newspaper that this would hurt Chinese exporters severely and Chinese FeSi exporters may lose EU market.

China steel export to different countries in 7 months

According to the latest custom statistics release, China's exports of finished steel products hit 5.937 million tonnes in July 2007 and 39.699 million tonnes during January to July 2007.

During January to July 2007, China export steel products to 204 countries but top 23 destinations accounted for more than 82% of the total export volumes. South Korea remained the largest importer with 17.7 share.

In million tonnes
(Sourced from MySteel.net)

Usiminas develops rotary lance for hot metal desulphurizing

It is reported that Latin America’s biggest flat steel group Usiminas supported the development of innovative technique to speed up the process and lower the cost of reducing hot metal sulphur content. The report added that Usiminas is the first Brazilian company to use in industrial scale the rotary lance system for hot metal desulphurizing, an essential step of steel production.

The development of this rotary lance started in 2004 with a pilot project at Usiminas’ Steel Shop no 1. The new technology is under evaluation at Cosipa in São Paulo, Huachipato Steel Mill in Chile and Siderar in Argentina. It is estimated that the rotary lance’s payback period is less than two years.

The new equipment speeds up the process, enhances its efficiency and reduces consumable costs by 20%. In the conventional hot metal sulphur reduction method, a static lance injects magnesium and nitrogen into the hot metal in order to cause a reaction that reduces the sulphur content. The new technique enables powder and gas to be injected into molten metals using a rotating lance.

Mr José Flávio Viana converter manager of Usiminas’ Steel Shop no 2 explained that “The rotary lance works like an electric mixer. It provides improved metal homogenization and saves desulphurizing agent, besides accelerating the sulphur reduction reaction, which means less operating time.”

Developed by the supplier Insider in a joint work with Usiminas, the rotary lance may be used in a variety of industrial processes. Usiminas Research Center worked out a result forecast model that allows to analyze the equipment’s economic feasibility in order to universalize its application.

US weekly steel production up by 1.3% YoY

American Iron & Steel Industries reported that in the week ending August 25th 2007, US’s raw steel production was 2.114 million net tons while the capability utilization rate was 89.3 %. Production was 2.086 million net tons in the week ending August 25th 2006 while the capability utilization then was 88.7%. The current week production represents 1.3% YoY increase from the same period in 2006.

Production for the week ending August 25th 2007 is up by 1.7% from the previous week ending August 18th 2007 when production was 2.078 million net tons and the rate of capability utilization was 87.8%.

Adjusted YTD production through August 25th 2007 was 68.926 million net tons at a capability utilization rate of 85.2%. That is a 5.3% YoY decrease from the 72.803 million net tons during the same period 2006 when the capability utilization rate was 90%.

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Harsco acquires Alexander Mill Services

Harsco Corp announced that it has expanded its service business within Eastern European steel industry with the acquisition of Alexander Mill Services International.

The Alexander Mill is privately held and provides mill services to steel producers in Poland, Romania and to a lesser degree, Greece and Portugal.

Alexander will join Harsco's MultiServ mill services division, which operates at more than 160 mills worldwide as the world's largest on site service partner to the steel and metals industries. The acquisition increases MultiServ's global operations from 32 countries to 35 countries. Its position in Poland and Romania gives Harsco an immediate platform to expand into the region's steel industry revitalization, as new multi national owners implement significant steel plant modernization and operational expansion programs to support the region's burgeoning infrastructure growth.

Mr Salvatore D Fazzolari president, CEO & treasure of Harsco said commenting on the acquisition, said that “Alexander is uniquely positioned to expand its services at existing customer sites as well as new locations in Eastern Europe. We plan to leverage this very solid foundation by progressively introducing the broader range of value adding services available from our industry-leading MultiServ service portfolio. As the re energized steel industry within Eastern Europe continues to steadily grow, we intend to grow with it.”

Harsco Corporation is one of the world’s leading diversified industrial services companies, serving major customers in the non residential construction, steel and metals, energy and railway industries.

Rio Tinto offer for Alcan gets nod from US antitrust authorities

It is reported that Rio Tinto has received US anti trust clearance for the proposed acquisition of Alcan by a subsidiary of Rio Tinto.

Receipt of this and other regulatory clearances is a condition to Rio Tinto's offer to acquire the outstanding shares in Alcan.

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London listed company and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Pallinghurst increase CosMin offer by 9%

Mining Journal reported that investment firm Pallinghurst Resources has raised its takeover offer for Consolidated Minerals Ltd by 9% to up to AUD 822 million (USD 680 million).

Pallinghurst, which earlier said it has a potential 10% stake in ConsMin, said that it would place an order at AUD 3.6 per share, 30 cents higher than its current off market cash offer as it acquired any ConsMin shares at the higher price then in accordance with corporation laws its off market cash offer would rise to AUD 3.60. Pallinghurst told the Australian Securities Exchange that "This would represent a 30 cent increase to the offer price under the current Pallinghurst cash offer."

Pallinghurst holds 5.4% of ConsMin’s shares as well as convertible notes for another 13.7 million shares giving it a total potential holding of up to 10%. It added that "Pallinghurst confirms that it has no current intention to support any existing rival takeover proposals for ConsMin with its shareholding."

Territory said earlier this month it may improve its hostile cash and scrip offer. It has bid AUD 2 and one and a half of its own shares for each ConsMin share.

ConsMin supplies about 10% of the world’s high grade sea borne manganese ore, the price of which is surging because of its use as a toughening alloy in steel making.

Severfield-Rowen to acquire Fisher Engineering Limited

Yorkshire based structural steel group Severfield-Rowen Plc announced that it has agreed to acquire Action Merchants Limited, the holding company of Fisher Engineering Limited, a constructional steel fabricator. In addition, Severfield-Rowen has agreed to acquire Dalton Airfield Estate Limited, which owns the long leasehold title to the Group's headquarters and the freehold title to a little over half of Severfield-Reeve Structures Limited's fabrication facility, both at Dalton Airfield Industrial Estate together, the Dalton Facility. Both the Fisher Acquisition and the Property Acquisition are subject to Shareholder approval with the acquisitions expected to be completed in early Autumn.

The fisher acquisition
1. Severfield-Rowen has agreed to buy Action Merchants Limited, the holding company of Fisher Engineering, for a total consideration of approximately GBP 90 million, of which GBP 36.6 million will be satisfied by the issue of 1,750,000 new Shares at approximately 2,089 pence each with the balance in cash.
2. Fisher Engineering is a leading construction steel fabricator based near Enniskillen in Northern Ireland with a strong client base and focus on delivering high value projects, which will be an excellent fit with Severfield-Rowen.
3. The Fisher Acquisition will extend Severfield-Rowen’s leading market position in the UK and give Severfield-Rowen a stronger presence in the growing Irish steel fabrication market.
4. The increased scale created by the Fisher Acquisition should allow for economies of scale.
5. Fisher Engineering has a robust order book of good quality business which, together with Severfield-Rowen, gives a current forward order book in excess of GBP 300 million for the Enlarged Group.
6. Fisher Engineering’s experienced management team will further strengthen the Severfield-Rowen executive management team.
7. The Directors expect that the Fisher Acquisition will be significantly earnings enhancing before amortisation of intangibles in the first full year post acquisition and the return on investment is expected to exceed Severfield-Rowen’s current cost of capital.

The Property Acquisition
1. The Company is proposing to acquire DAEL, which owns the long leasehold title to the Group's headquarters and the freehold title to a little over half of Severfield-Reeve Structures Limited's fabrication facility, both at Dalton Airfield Industrial Estate, for a total cost to the Company of GBP 23.5 million, comprising cash consideration of approximately GBP 14.9 million and the assumption by the Company of a term loan of approximately GBP 8.6 million.
2. The Property Acquisition is a related party transaction as a result of the DAEL Sellers’ connection with the Company. Five of the DAEL Sellers are Directors of the Company, one of them is a former Director and one of them is a director of a subsidiary of the Company.
3. The DAEL Sellers wish to dispose of their interest in the Dalton Facility and the Independent Directors feel that it is in the best interests of Shareholders for the Company to regain control of this facility.
4. The Company is, as a result of its development in recent years, now in a financial position to be able to repurchase this key asset.
5. The Property Acquisition will enable Severfield-Rowen to re-acquire ownership of the land thereby ensuring full flexibility for the use of the site in the future.
6. The Property Acquisition is expected to be broadly earnings neutral.

Mr Peter Levine, commented chairman of Severfield-Rowen said "We are delighted to announce the acquisition of Fisher Engineering, a quality business which we respect. With its strong client base, robust order book and focus on good quality business, Fisher Engineering is an excellent fit with Severfield-Rowen. The combination of Severfield-Rowen and Fisher Engineering will increase our scale and further strengthen our offering to clients at a time when we are seeing significant demand for the Group’s structural steelwork projects. The Fisher Acquisition marks the next step in the Group’s growth strategy and reflects our confidence in the future underpinned by a combined order book in excess of GBP 300 million."

Mr Ian Cochrane and Mr Ernie Fisher joint MD of Fisher Engineering said "We are looking forward to joining the Severfield-Rowen group and enjoying the benefits of greater economies of scale and investment. We have known Severfield-Rowen for many years as a respected competitor and now look forward to working with them going forward."

Rescue operation continues for 181 trapped coalminers in China

Xinhua reported that rescue workers continue their operations to reach 181 miners trapped inside two coal mine Huayuan and Minggong mines shafts since 11 days ago, while efforts are made to comfort relatives of the victims.

Floodwater swept through a 65 meters wide breach in the Wenhe River levee on August 17th inundating the two mines leaving 181 people trapped underground. Chinese water resources specialists have blamed the disaster largely on heavy rain and inadequate flood prevention facilities. Nine pumps are busy working near the mines, piping out 4,700 cubic meters of water per hour.

According to Mr Yang Xingkui a senior official with Shandong Provincial Coal Industry Bureau water level in the shaft of Huayuan coal mine dropped to 59.92 meters, 32.68 meters down from the highest level. But rescuers have to lower the water level by another 89.92 meters to reach the 172 trapped miners. And in the nearby Minggong coal mine, water level lowered to 60.14 meters.

The official who is put in charge of the on site water pumping efforts said that "It is hard to predict how many days it will take to reach the trapped miners."

Apart from the rescue work, consolation work has been underway for the families and relatives of the trapped workers. A total of 122 medical and social workers have been organized to receive training courses on skills to address psychological crises such as loss of the beloved ones. Mr Hu Lei an associate medical doctor with Shandong Provincial Psychological Counseling Center said that "As time goes by, the hope of those trapped miners to return alive becomes dim. We hope that our efforts could reduce psychological harm done on relatives of the trapped miners and prevent mental breakdowns."

TATA Steel Thailand to increase rebar export volume

YIEH reported that the management of TATA Steel Thailand said that because of the weaken economic condition and the unstable political situation in Thailand domestic market the rebar demand in the domestic market has also decreased. Therefore, TATA Steel Thailand will increase total export quantity to be 10% from it was 2% to 3% in 2006.

As strong rebar demand has keep increased in the globe, TATA Steel Thailand has also planned to increase its export percentage to become 15% next year. The major export market will be Middle East countries and the United State.

7 workers injured in hot metal spill at BOF of Mittal Steel Burn Harbor

CBS reported that 7 people were reportedly burned in an accident early Tuesday at Mittal Steel USA’s plant at Burns Harbor in Northwest Indiana. The cause of the accident and the condition of the workers were not immediately known.

The report cited a union official as saying that molten steel being poured from a furnace erupted in a ball of flame, which burned the workers. Mr Paul Gipson president of United Steelworkers Local 6787 said that the workers were standing next to the plant's No 1 oxygen furnace when a backlash of extreme heat, slag and molten steel hit them. Mr Gipson said that all seven workers were wearing flame retardant protective clothing when the accident happened.

Mr David Allen spokesman of Mittal Steel said the incident was contained to a small section of the operation and an investigation of the cause began immediately.

Tangshan to build 300,000 tonne vessels for iron ore transportation

It is reported that Tangshan Steel is planning to build two or three 300,000 tonne vessels for transporting Brazilian iron ore in scheduled routes to lower its iron ore costs.

Ocean freight rate for iron ore transportation are surging as freight rate for Brazil to China was USD 18 per tonnes to USD 42 per tonnes in 2005, USD 20 per tonnes to USD 37 per tonnes in 2006 and USD 33 per tonnes to USD 57 per tonnes in January to June 2007. Surging freight rate are effecting production costs and accordingly, Tangshan Steel following Nippon Steel, POSCO, Arcelor and Baosteel decided to build large iron ore transportation vessels to ease costs pressure brought by rocketing freight rates.

To further cut freight rate, Tangshan has also inked contracts with shipping companies such as Norway's BW and South Korea's Sinokor Merchant Marine Company Ltd. Currently Tangshan Steel's imported iron ore cost is among the best level in North China.

Tangshan has signed long term supply contracts with major iron ore producers including BHP Billiton, FMG and CVRD. As per the signed contracts it will import over 100 million tons of iron ore during 2008-2012. Long term contract price can be 30% lower than spot price.

(Sourced from MySteel.net)

WISCO and Haier ink a long term strategic cooperation agreement

It is reported that Wugang Group and the Haier Group in Qingdao Haier Group signed a long term strategic cooperation agreement. The agreement was signed between Mr Tang Qi GM of Wugang Lynn and Mr Zhang Ruimin CEO of Haier.

The signing of this strategic cooperation agreement underlines information cooperation, technical cooperation, business cooperation and human resources management and cooperation in many fields reached a high degree of unanimity and include terms of the agreement.

Mr Tang Qi Lin said that “Haier is not only well known enterprises, Haier work hard and strive for excellence, all for the sake of users entrepreneurial spirit we should always learn from and learn from. We must not only studied the development strategy of Haier, Haier, learn teamwork, work style and business concept. He added that with WISCO's strategic development, we advancing at the same time, we must strengthen cooperation with Haier.”

Mr Zhang Ruimin said that “I really look forward to the Haier and WISCO strategic cooperation, Wuhan is not only the founding of new China in the construction of a large steel enterprises, but also create a group should advocate the management experience and the quality of products deserve our praise, Haier's participation in the world's leading localization and the competition Haier WISCO with the strategic cooperation of great strategic significance.”

According to reports, the Haier Group is the world's second largest white goods brand, global 4875 more than 50,000 people, technology, industry, trade, finance, Haier's four pillar industries. In 2006, Haier’s Chinese domestic appliance market share of 25.5% to maintain the first, a turnover of more than CNY 100 billion of multinational business conglomerates. At present, Haier brand value amounted to CNY 74.9 billion and its influence is with the expansion of the global market and is growing rapidly. Haier has in the world more than 30 countries by the localization of design centers, manufacturing base and trading company.

Klein Steel acquires former Gibraltar warehouse in Tonawanda

It is reported that The Rochester based Klein Steel Service has revived a former Gibraltar Industries warehouse in the Town of Tonawanda and plans to add jobs at the steel distribution and processing center. Klein Steel began making the transition to its new location, known as Klein Steel of Western New York, at the end of July.

Mr John Batiste president of Klein Steel’s said that Klein Steel had been leasing 80,000 square feet in Blasdell but the Military Road site offered advantages in location and capacity. He said “We wanted to do a better job serving our customers in the Buffalo Niagara region.”

Mr Batiste said the company employs 37 people at the site and expects to add more jobs this year and next year. The location also has a walk in retail store called Buffalo Steel. He declined to say how much Klein Steel paid for the Tonawanda property and the sale price was not yet available in county records.

Klein Steel was founded in 1971 and carries carbon, stainless steel, aluminum, plastics and other products. Its operations in Rochester and Syracuse employ a combined 130 people.

Moody affirms Baa3 ratings for US Steel post Stelco offer

Associated Press reported that Moody's Investors Service recently affirmed United States Steel Corp's investment grade "Baa3" senior unsecured ratings after the company s plans to buy Canadian steel maker Stelco Inc for about USD 1.1 billion. The acquisition is expected to close in the fourth quarter pending US and Canadian regulatory approvals.

Moody's said about USD 1.1 billion of debt securities has been affirmed. In addition to expanding the company's production capacity to 33 million net tons of raw steel annually. It said the acquisition is expected to create greater operating efficiencies US Steel expects the deal to save it more than USD 100 million by the end of 2008.

US Steel plans to pay for the acquisition and retire the majority of Stelco's existing debt through a combination of cash on hand existing financing facilities and proceeds under two new senior credit facilities, which total USD 900 million.

Despite the strategic benefits to US Steel, Moody's said increased debt levels could compromise its credit profile and expects US Steel to prudently use its free cash generation to reduce debt to levels that provide more flexibility in a volatile, commodity based business.

Under terms of the deal US Steel will pay CAD 38.50 per share for Stelco's 30 million shares outstanding. Including Stelco's debt the deal totals about USD 1.8 billion.

MDM bags feasibility study for Kalagadi manganese project

It is reported that South African project house MDM Engineering has been awarded a contract to undertake the bankable feasibility study for Kalahari Resources’ Kalagadi manganese project, in the Northern Cape.

Once completed, the BFS could lead to a contract for MDM to continue into the plant erection phase, including the construction of a ZAR 2.3 billion manganese mine and a 2.4 million tonne sinter plant on site.

MDM said that bankable feasibility study is scheduled to be completed in January 2008 after which a decision will be taken on how best to implement the project. It said “Should the project be implemented as currently envisaged, construction could begin as early as the first quarter 2008.”

The project area overlies the Kalahari manganese basin, which is estimated to contain 80% of the world's known high grade manganese resources.

Zinifex announces improved utilization of Rosebery mill

Zinifex announced an ore sales agreement with Bass Metals Ltd to purchase ore from the first stage of its Que River Base Metal Project and said that it is set to further improve utilization of its mill and concentrator at Rosebery Mine to over 800,000 a year.

Under the Agreement it is expected that Bass Metals will deliver more than to 115,000 tonnes of Que River ore with an average of 8.3% zinc metal content over a two year period at approximately 7,000 tonnes per month. There is a further option to extend this agreement subject to the approval of both parties. A trial shipment of approximately 1000 tonnes was undertaken in July to test the suitability of the ore. This trial was successfully completed and Bass Metals will now commence delivery of the contracted tonnage as soon as practicable.

Mr Brett Fletcher COO of Zinifex’s said that recent changes to the concentrator have improved its operation and efficiency to the point where its throughput now exceeds the capacity of the mine. With improved operations in the mill we are now in a position to process a greater amount of ore so we approached Bass Metals earlier this year to explore sourcing product from their Que River site some 30km from Rosebery. He added that the agreement enables us to potentially put additional material through the mill and as a result get better asset utilization at the mine.

Ms Fran Burgess GM of Rosebery Mine’s while commenting on the agreement said that the deal was good not only for Zinifex but also for West Coast Tasmania. She added that increased through put is great news for the Mine as it means that we are improving our efficiency and our bottom line. She also added that “But it’s also good news for West Coast Tasmania as the deal underscores the growing contribution the resources sector is making in this part of the State, both in terms of employment opportunities and economic contribution.”

Hunan Valin H1 net profit up by 114.26% YoY

Hunan Valin Steel Tube & Wire Co Ltd’s first half net profit surged by 114.26%YoY to CNY 650.06 million under Chinese accounting standards on higher sales of its steel products and improvements to the product lineup. Valin Steel operating revenue rose 25.61%YoY to CNY 20.14 billion in the period while operating costs were up by 22.07% at CNY 17.58 billion.

Valin Steel in its interim financial report filed with the Shenzhen Stock Exchange said that it produced 4.78 million tonnes of hot metal in the first half up by 16% YoY and 5.37 million tons of steel up by14% YoY. Meanwhile, it made 4.99 million tonnes of steel products up by 11% YoY and sold 4.98 million tonnes up by 14% YoY. It exported 1.77 million tonnes of steel products in the period up 500,000 tons.

Hunan Valin aims to produce 9.6 million tonnes of hot metal, 10.8 million tonnes of pig iron and 10.15 million tonnes of steel products this year. It has set a sales target for 2010 of CNY 60 billion and expects EBIDTA of CNY 9 billion to CNY 10 billion.

Hunan Valin’s assets totaled CNY 41.73 billion at the end of June 2007 up from CNY 37.69 billion at the end of last year. Mittal Steel Co NV holds a 29.48% stake in it.

Glencore dewatering Immel zinc mine in Tennessee

According to the Tennessee Department of Environment and Conservation, Glencore International is continuing to dewater and renovate its underground Immel zinc mine in Tennessee.

An industry source said that Glencore's other two Tennessee zinc mines, the Young and Coy mines are already in production and that zinc concentrate is being produced from their ore and shipped to Zinifex's smelter at Clarksville in Tennessee.

Glencore bought bankrupt Asarco's Tennessee Mines Division at a May 19th 2006 auction for USD 63.8 million. Grupo Mexico's Asarco subsidiary filed for Chapter 11 bankruptcy protection on August 9th 2005.

ArcelorMittal announces details of its share buy back programs

On April 2nd 2007, Mittal Steel Company NV announced the start of a share buy back program to repurchase class A common shares representing a maximum aggregate amount of up to USD 590 million. On June 12th 2007, Mittal Steel announced its intention to start a share buy-back program for up to a maximum of 27 million shares, immediately following the completion of its current USD 590 million buy back program. This new share buy back program was aimed at offsetting the issuance of 27 million Mittal Steel shares as partial consideration for the acquisition of the outstanding minority interests in Arcelor Brasil SA.

Mittal Steel now announced that it expects to enter into sale and derivative transactions with a financial institution with respect to class A common shares that are currently held in treasury by Mittal Steel.

Under the contemplated transactions, Mittal Steel would sell in a single block trade up to 13.5 million class A common shares and at the same time would buy a call option which gives it the right to purchase the equivalent number of shares or the shares that will be substituted therefore in the first step merger of Mittal Steel into ArcelorMittal SA and/or the second-step merger of ArcelorMittal SA, into Arcelor SA as the case may be. 13.5 million shares represent 0.95% of the issued share capital of Mittal Steel on the date hereof.

Mittal Steel intends to enter into these transactions before the effectiveness of the first step merger in order to avoid the automatic cancellation of these treasury shares pursuant to Dutch law in the first step merger, so as to enable ArcelorMittal SA to meet its obligations under its employee stock option plan after the completion of the first step merger. As a result of the first step merger, ArcelorMittal SA will also assume the rights and obligations of Mittal Steel under the call option.

It is Mittal Steel and ArcelorMittal SA's intention to use the shares that would be purchased pursuant to the exercise of the call option exclusively for share deliveries under the existing employee stock option plan that will be assumed by ArcelorMittal S.A. in the first-step merger. In accordance with the provisions of Article 5.1 of the EU Regulation 2273/2003 of 22 December 2003, the exercise price of the derivative instruments shall not be above the higher of the price of the last independent trade and the highest current independent bid.

On 12 June 2007, the general meeting of shareholders of Mittal Steel authorized the repurchase of class A common shares for a period of 18 months, ending on 12 December 2008. The sale and derivative transactions were approved on 31 July 2007 by the Board of Directors of Mittal Steel.

Following the effectiveness of the first-step merger, which is expected to occur on Monday, 3 September 2007, ArcelorMittal SA will announce details concerning the continuation of the USD 590 million buy back program and the 27 million share buy back program.

As at 27 August 2007, 15,535,246 class A common shares were held directly or indirectly by Mittal Steel in treasury, representing 1.1% of the issued share capital on the same date (i.e., 1,347,192,499 class A common shares and 72,150,000 class B common shares, which carry identical voting rights).

All these treasury shares have been repurchased in view of current or future employee stock option or other allocation of shares to employees. Treasury shares that will not be sold prior to the effectiveness of the first-step merger will be cancelled in the first-step merger.

The share buy-back program does not constitute an offer to purchase or a solicitation of an offer to purchase any securities, or an invitation by or on behalf of Mittal Steel to purchase any such securities in circumstances or in any jurisdiction in which such an offer or solicitation is unlawful.

Tisco to raise SS prices

YIEH reported that China’s biggest stainless steel manufacturer Taiyuan Iron & Steel Group has announced its list prices for September 2007.

As per report Tisco is adding CNY 800 per tonnes to the prices of its 304 series CRC and plate including SUS304J1, 304/304L, 321 and 301 for September contracts. Price of 430 types will be upped by RMB 600 per tonnes and CNY 300 per tonnes to others 400 series.

According to Tisco, in terms of HRC, the company is raising prices for 304, 304L, 301 and 321 by CNY 800 per tonnes and CNY 300 per tonnes for 400 series.

Stroytransgaz completes gas pipeline contract in Greece

RIA Novosti reported that Russian pipeline building company Stroytransgaz s has finished constructing a short natural gas pipe section in Greece, which extends an existing route from Alexandroupolis to Turkey. The contract to build the new section was signed in December 2005. The project was implemented jointly with Greece's Prometheus Gas SA on an order from the Public Gas Corporation of Greece.

In line with the contract, Stroytransgaz built the pipeline with a diameter of 36 inches and constructed other necessary facilities. Both projects implemented by Stroytransgaz were the result of Russian Greek cooperation fixed in a 1994 intergovernmental agreement on natural gas supplies.

Stroytransgaz said that the new 53.7 kilometers section runs northwest from the city to Komotini. The new addition is a continuation of a pipeline built by Stroytransgaz in 1996-2000 and provides a link between the gas supply networks of Greece and Turkey.

Stroytransgaz was founded in 1990. It specializes in designing and building pipeline systems, oil and gas production facilities and underground gas storage facilities. Stroytransgaz is currently involved in large projects in 15 countries. Russian energy giant Gazprom sold its blocking stake in the company last year.