August, 03 2007
Opposition over Khandadhar lease to POSCO intensifies
Kalinga Times reported that hundreds of people of Bonai area in Sundargarh have started opposing the Orissa government's recommendation for leasing the Khandadhar iron ore mines to the POSCO.
As per report, thousands of local people of who joined a public meeting against the Orissa government's decision at Bonai have submitted a memorandum addressed to the Orissa Governor urging him to invoke his constitutional powers and recommend to the government not to grant any mining lease to POSCO in respect of Khandadhar mines.
In the memorandum submitted to the Governor, the Samiti has said that Khandadhar waterfall is a tourist place and in the event leasing out the Khandadhar hills to POSCO the waterfall will extinguish from the tourist map. They said "The ever flowing water of Khandadhar River helps the farmers of the region to earn their livelihood by means of farming through out the year, and the hills of Khandadhar act as a natural barrier to south-west monsoon which is the source of rainfall in the region. Any distortion of Khandadhar hills will stop inflow of water into Khandadhar River and create a drought like situation in the region.”
The meeting was organized by the Khandadhar Surakshya Samiti, a mass organization formed to oppose handing over of Khandadhar mines to POSCO.
Chhattisgarh invites NTPC for a power plant JV
IANS reported that Chhattisgarh State Electricity Board has made a written offer to the National Thermal Power Corporation to set up three mega power projects in the state in a JV.
Mr Vijay Mishra spokesman of CSEB told IANS that “The CSEB had already made an initial offer earlier and we are just pursuing it further. We want to set up two power projects each of 4,000 MW and another 2,000 MW plant with NTPC.”
Mr Mishra added that the CSEB is expecting a reply from NTPC by August 15th 2007 and if the offer is accepted, the plants will come up at Aklatra, Lara and Godna in Raigarh district.
NTPC and the CSEB will have equity ratio of 74% and 26% while the production share will be in ratio of 51% and 49%.
Jindal Saw Q1 net profit up by 98% YoY
Jindal Saw Limited has announced the following unaudited results for the April to June 2007 quarter:
Jindal Saw Limited has posted a net profit of INR 820.5 million for the April to June 2007 quarter up by 98.71% YoY as compared to INR 412.9 million for the April to June 2006 quarter. Jindal saw Limited has posted total income of INR 12869.9 million for the April to June 2007 quarter up by 33.7% YoY as against INR 9620.7 million for April to June 2006 quarter.
Indian Railway plans to attract more traffic
Mr Lalu Prasad Yadav union minister of Indian Railways has said that zonal railways have to make urgent efforts to bring traffic from road to rail in important commodities and that there is a need to formulate different policies for carrying the raw material traffic and finished goods so that more traffic could be diverted from road to rail.
Mr Yadav while addressing the meeting of GMs of all zonal railways and production units said that GM have been empowered to take all possible steps to popularize attractive schemes and incentives to get more and more traffic from road to rail. He urged them to continue vigorous efforts to meet the loading target of the current year especially in the field of cement and steel. He added that he has given directions to the board to take urgent policy decision regarding commercial, operating and pricing matters so as to attract more and more traffic towards railway.
Mr R Velu union minister of state for Indian Railways while speaking on the occasion, said that all the zonal railways should make all out efforts to achieve the internal loading target of 800 million tonnes of freight loading in 2007-08. He said that railway board has notified some attractive freight incentive schemes and GMs should review the progress made in this regard. He also pointed out some areas of concern, which require early action like cleanliness of trains & platforms, better passenger amenities and utilization of special railway safety fund.
Steel Exchange India to buy rolling mill from Taiwan
Steel Exchange India Limited announced that its board of directors at its meeting held on July 31st 2007 has approved the following
1. Steel Exchange India Limited has contracted for acquisition of state of art high capacity rolling mill of 250,000 tonnes per annum with Alltech Consulting Enterprises at Kaoshiung in Taiwan. The entire mill will be shipped and erected after refurbishing at its manufacturing unit at Kothapeta in Andhra Pradesh.
2. Steel Exchange India Limited has initiated steps to convert the existing manufacturing unit of ignots to high quality 100mm to 125 mm billets and will set up continuous casting machinery for this purpose.
GMDC Q1 net profit up by 380% YoY
Gujarat Mineral Development Corporation Limited has announced the following unaudited results for the April to June 2007 quarter:
Gujarat Mineral Development Corporation Limited has posted a net profit after tax of INR 652.364 million for the April to June 2007 quarter up by 380% YoY as compared to INR 135.908 million for the April to June 2006 quarter. While it has posted total income of INR 2299.655 million for the April to June 2007 quarter up by 48.1% YoY as against INR 1552.110 million for the April to June 2006 quarter.
Ranhill bags EPC contracts for 2 power plants
Projects Today reported that Ranhill Group’s subsidiary Ranhill Engineers and Constructors Sdn Bhd has bagged engineering, procurement and construction contracts involving power plants in Chhattisgarh and Orissa.
Ranhill Engineers and Constructors Sdn Bhd has bagged USD 590.5 million engineering, procurement and construction contracts from Dheeru Powergen for 2x350 MW coal based power unit at Dhanras village in Korba district of Chhattisgarh. The contract is for the planned power plant, comprising USD 172.5 million for onshore costs and USD 418 million for offshore costs. Ranhill Engineers' scope of works include design, engineering, material selection, supply to site, construction and commissioning for the complete plant and equipment.
Ranhill Engineers & Ranhill India has also accepted USD 242.3 million engineering, procurement and construction contracts for a 300MW coal fired power plant in Orissa that will be developed by KVK Nilachal Power. Raw water for this plant will be drawn from the Mahanadi River, located about 7 kilometer from the project site, while coal linkage will be obtained from Talcher of Mahandi coalfields. The works for this project are expected to commence by December 2007, with completion scheduled within 33 months from notice to proceed.
Mining ministry calls for utilization of GSI and IBM reports
BL reported that union mine ministry has recently expressed concern over the lack of utilization of information provided by the Geological Survey of India and the Indian Bureau of Mines to various states and the lack of co ordination between the three parties is resulting in large mineral wealth remaining untapped.
Dr T Subbarami Reddy union minister of state for mines told BL that “During a meeting with the officials of Geological Survey of India and Indian Bureau of Mines, it was brought to the notice of the ministry that states were not utilizing the information provided by the two organizations on the availability of mineral wealth in their respective states. So it was decided that every quarter the Indian Bureau of Mines would monitor the progress on the discoveries made by the Geological Survey of India.”
Dr Reddy added that “The ministry would also be monitoring the progress made by private companies with regard to the leases given for mining gold and diamonds. If we feel no substantial progress has been made, the leases would be recommended for cancellation.”
As per report, the mine ministry has also decided that in the future Geological Survey of India should focus on finding gold and diamond reserves. Dr Reddy said “The Ministry has identified 7 to 8 states where we think there are gold and diamond reserves and have instructed the Geological Survey of India to give top priority to find where the reserves are located in each of the states.” India imports about 800 tonnes of gold worth INR 55,000 crore every year, only because the reserves have not adequately been explored. According to estimates, India’s gold reserves are worth INR 6,00,000 crore and diamonds to the tune of 475 million carats.
DVC awards INR 379 crore order to Elecon
Civil engineering firm Elecon Engineering Corporation Limited recently announced that it has received an order worth INR 379 crore from Damodar Valley Corporation for design and construction work at its thermal power station.
Chambal Fertilizer to set up a 2000MW power plant in Orissa
BS reported that INR 5000 crore KK Birla group’s Chambal Fertilizer & Chemicals Limited has proposed to set up a 2000MW power plant in Mandakini Coal Block of Talcher Coalfields of Orissa at an investment of INR 10,000 crore.
Mr Surya Narayan Patro energy minister of Orissa said that "The proposal has been received by the government and we have decided to place it before our high powered committee on power to look into. The INR 10,000 crore investment in the power plant would be the maiden venture of the Birlas in Orissa in the power sector."
Orissa government will sign a MoU with Chambal Fertilizer & Chemicals Limited as a step towards setting up the plant and the detailed project report and feasibility study has also been placed before the state government.
BEML Q1 net profit up by 57% YoY
Bharat Earth Movers Limited has announced the following unaudited results for the April to June 2007 quarter:
Bharat Earth Movers Limited has posted a net profit of INR 235.9 million for the April to June 2007 quarter up by 57.1% YoY as compared to INR 150.1 million for the April to June 2006 quarter. While it has posted total income of INR 4069.6 million for the April to June 2007 quarter up by 18.3% YoY as against INR 3437.6 million for the April to June 2006 quarter.
ISMT chairman resigns from the board
Pune based India Seamless Metal Tubes Limited has announced that Mr K Rustumji director & chairman of the board has resigned from the company.
ArcelorMittal to sell Sparrows Point mill to Esmark JV
ArcelorMittal announced that ArcelorMittal USA has entered into an agreement to sell its Sparrows Point facility and related railroad, intellectual property and other assets for an undisclosed purchase price to a JV entity sponsored by Esmark Incorporated and Wheeling-Pittsburgh Corporation with participation by industry and institutional investors.
Following the bid of Mittal Steel Company NV for Arcelor SA, Mittal Steel had agreed with the United States Department of Justice to divest the Sparrows Point Business. The sale of the Sparrows Point Business remains subject to DOJ approval and customary closing conditions. The sale is expected to close in the fall of this year. Once the transaction is approved, ArcelorMittal would disclose all outstanding details related to it.
Located near Baltimore, Sparrows Point is a former Bethlehem Steel plant that is a fully integrated steel making facility capable of producing 3.9 million tonnes of raw steel annually. Products made at Sparrows Point include hot rolled sheets, cold rolled sheet, galvanized sheet, Galvalumeu, tin mill products and semi finished steel. Markets served include construction, steel service centers, automotive, container and appliance.
Mr Aditya Mittal ArcelorMittal's CFO and head of Flat Carbon Americas, commented "We have been working closely with the Department of Justice for several months to satisfy the terms of the consent decree and are pleased that this process has reached its conclusion."
Mr Michael G. Rippey president & CEO of ArcelorMittal USA said "Sparrows Point has been an important part of ArcelorMittal USA and I know the facility will continue to thrive under new ownership. We greatly respect the uncertainty that the more than 3,000 employees at Sparrows Point have had to live with during this difficult period and we thank them for their service to our company, while wishing them the best of luck in the future."
Rio Tinto approves iron ore project expansion in Western Australia
It is reported that Rio Tinto and its JV partner Hancock Prospecting Pty Ltd, will spend USD 350 million on a fast tracked expansion of their new Hope Downs iron ore project in the Pilbara region of the state of Western Australia.
Rio Tinto said that it expects the expansion to be completed by early 2009, when the mine would have the capacity to produce of 30 million tonnes of iron ore per annum. Work on the USD 1 billion projects began in April 2006 and it is expected to begin production by early 2008. It was initially intended to have a capacity of 22 million tonnes per annum.
Mr Sam Walsh CEO of Rio Tinto said that the rapid expansion of Hope Downs was an integral part of plans to lift annual iron ore production in the Pilbara region to 220 million tonnes by early 2009. He said “Thanks to continued strong market conditions we have been able to bring this highly value accretive expansion forward by one year. We are currently investigating other opportunities to increase our Australian iron ore business to about 320 million tonnes in the future.’
Hope Downs is a high grade Marra Mamba iron ore deposit. Rio Tinto said it would contribute to the Pilbara Blend, a new product first shipped in July, which comprises Brockman and Marra Mamba ore extracted from nine of Rio Tinto Iron Ore's 11 mines in the Pilbara region.
CCCMC issues report rebutting US accusation on steel imports
In order to enforce communication with American steel industry and in response to US accusation of Chinese subsidy, China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters further issued a report centered on China steel industry and trade by explaining the main points the US partners concern.
The statement includes following points
1. China's manufacturing of steel products is based on meeting domestic market and its export is to fill in the supply gap on global market, but would never threaten the global equation.
2. China's export to US is due to insufficiency of supply in its own market. US crude steel output has basically stayed below 100 million tons and the local steel enterprises yet lack competitive edge for missing two industrial technological renovations.
3. Despite historical high of US import from China in 2006, the steel prices in its domestic market had kept high and its enterprises harvested best ever profits over scores of years. The US steel enterprises earned net profit of USD 1.3 billion up by 50%.
4. China's soaring export to US is temporary. This year, the government has issued four forceful policies to restrict steel export, with their effects to be seen in second half year. In First half, China's steel export to US posted 2.34 million tonnes in 2006 up merely by 1% YoY.
America Iron & Steel Institute, Steel Manufacturers Association and Specialty Steel Industry of North America trade association recently delivered comments on the white book about China's steel industry operation released by CCCMC in May.
(Sourced from MySteel.net)
NDRC does not see China as global steel making hub
According to report, which reviewed the performance of the iron and steel sector during the first six months of 2007, released by China's National Development and Reform Commission, despite rapid growth in steel product exports China will not become the major base for global iron and steel production any time in the near future.
NDRC pointed out in the report that there are two major problems facing the iron and steel industry.
1. Excessive production growth has put pressure on domestic market prices
2. Excessive steel product exports are not in line with China's plan to conserve natural resources and protect the environment.
The efficacy of this year's policy to further restrict iron and steel product exports will be revealed in the second half of this year, as domestic supplies increase and force down steel product prices. A combination of growing domestic demand, reduced stockpiles and increasing iron ore prices, kept steel product prices on the rise during the first half of this year.
China produced 237.58 million tonnes of steel in the first half of 2007 up by 18.9% YoY and pig iron production rose by 16.8% YoY to 226.82 million tonnes. Steel product output increased by 23.9% YoY to 270.25 million tonnes, among which, steel sheet production increased by 34.3% YoY to 117.81 million tonnes and long product output increased 16.5% YoY to 126.96 million tonnes.
According to the report, steel product exports in the first half surged 97.7% YoY to 33.79 million tonnes and steel billet exports jumped by 41% YoY to 4.37 million tonnes, while steel products imports fell by 7.7% YoY to 8.69 million tonnes and steel billet imports slumped by 33.3% YoY 140,000 tonnes. Overall, China's net export of crude steel surged by 179.7% YoY to 30.93 million tonnes in the first half of this year. Iron ore imports also hiked by 16.4% to 187.91 million tonnes in the first half of 2007.
For the second half of this year, the NDRC has re emphasized the importance of outdated capacity elimination, rapid export growth limitation, further coordination in the market, as well as energy conservation and environmental protection in the iron and steel sector.
(Sourced from MySteel.net)
Shanxi coke output in H1 up by 21% YoY
Xinhua reported that coke industry in China’s Shanxi Province has witnessed booming demand, surging output and jumping profit in the January to June 2007 period.
During January to June 2007 period, Shanxi Province’s coke output amounted to 47.33 million tonnes up by 21.2% YoY from January to June 2007 period including 46.13 million tonnes of machine coke up by 20.7% YoY, 106,900 tonnes of crude benzol up by 69.5% YoY and 19,400 tonnes of pure benzol up by 39.9% YoY.
In the January to June 2007 period, Chinese coke industry realized main business income of CNY 43.117 billion up by 51.4% YoY’ pretax profit of CNY 5.948 billion up by 1.63 times, amount of loss reported by loss incurring enterprises of CNY 297 million down by 70% YoY and profit of CNY 1.725 billion 1.12 times of that made in whole 2006.
In the meanwhile fresh profit has registered CNY 1.988 billion representing 25.77% of total fresh profit, second only to steel industry. 3 enterprises earned profit of over CNY 100 million each and 15 enterprises reported profit of over CNY 30 million. Main business income of the 15 enterprises has totaled CNY 13.073 billion, accounting for 30.25% of the total in the industry and profit of CNY 1.221 billion accounting for 70.78%.
Despite brisk transactions and soaring profit, coke producers should seize the opportunities, pay attention to energy saving and environment protection and develop recycling economy rather than blindly boost investment and raise capacity.
(Sourced from MySteel.net)
CISA terms 25% iron ore price forecast as merely a conjecture
International investment bank UBS has said in its report that the world will still see tight iron ore supply in 2008 and iron ore benchmark price may rise 25% but Mr Luo Bingsheng deputy secretary of China Iron & Steel Association said that some investment institutions said this to bring strong influences for the interest groups they represent.
Mr Luo added that as negotiation for 2008 iron ore benchmark price approaches, Chinese steelmakers are preparing for the negotiation under the lead of CISA. He also urged mergers and acquisitions in China's steel sector to raise industry concentration, in a bid to weigh heavier in benchmark price negotiation.
Mr Lou said that "Prices for both homemade and imported iron ore keep jumping and stay on a high track in the first 6 months. Purchase cost averaged CNY 648.82 per tonne for imported iron ore during the January to June 2007 period up by 14% YoY during the January to June 2006 period. So far the two parties of the negotiation have not expressed any opinions. As per the rule, we can not talk about iron ore benchmark price." He added that the forecasts of some investment institutions, which expected a price hike of 5% or 10% and then 20% or 25%. Obviously this is merely a conjecture, not the final conclusion.
He forecasted an oversupply might emerge in the latter half of 2007, given a balanced supply and demand relationship in the past 6 months.
Earlier CISA expected an iron ore import volume of 355 million tonnes in whole 2007. However, statistics show that China imported 188 million tonnes of iron ore in the January to June 2007 period up by 16% YoY from the January to June 2006 period.
(Sourced from MySteel.net)
CITAC calls on US ITC to end duties on HR imports
It is reported that the Consuming Industries Trade Action Coalition called on the US International Trade Commission to revoke the current antidumping and countervailing duties on hot rolled steel imports from 11 countries at the conclusion of its sunset review investigation now underway. CITAC said the duties are no longer needed to protect the US steel industry and are creating supply problems for US steel using manufacturers.
Mr Steve Alexander ED of CITAC said “The US needs both a strong steel industry and a strong steel consuming industry. With consolidation record profits and unprecedented pricing power the domestic steel industry is healthy and no longer needs protection. However, middle market steel consuming manufacturers such as the 1,200 member companies of PMA are currently hurt by steel supply problems and steel prices. These companies need reliable access to steel supplies at globally competitive prices. The current AD/CVD duties on hot rolled steel are no longer necessary and are making it difficult for US manufacturers to compete with their global competitors.”
Mr Alexander also added that the Precision Metalforming Association members are only able to testify at the ITC hearing because they were granted time by respondents from the countries subject to the duties. Under US trade law industrial users including steel consuming manufacturers are left out of these ITC cases, even though a decision to place duties on their raw materials and other production inputs affects their global competitiveness.
Mr Alexander said “The fact that US industrial users need to borrow time from foreign countries is stark evidence that current US trade remedy laws do not take into consideration the needs of US steel consuming companies which employ more than 9 million Americans. This is why CITAC has made passage of the American Manufacturing Competitiveness Act a legislative priority this year.”
Three company representatives from the Precision Metalforming Association will testify this week at an ITC sunset review hearing on AD and CVD duties on hot rolled steel imports from Argentina, China, India, Indonesia, Kazakhstan, the Netherlands, Romania, South Africa, Taiwan, Thailand and Ukraine. The duties have been in place since 2001.
CITAC is a coalition of companies and organizations committed to ensuring that consuming industries and manufacturers in America have access to reliable supplies of globally priced materials necessary for those industries to produce their products.
Mycron to supply CR to BlueScope Steel in Malaysia
It is reported that Mycron Steel CRC Sdn Bhd has signed a deal to supply high quality Cold Rolled Coil feedstock worth more than MYR 100 million to BlueScope Steel Sdn Bhd. Under the agreement, Mycron will purchase HR coil from BlueScope Steel’s Australian steelworks at Port Kembla in New South Wales and process this feed into CRC destined for BlueScope Steel.
Mr Azlan Abdullah CEO of Mycron’s said with the arrangement BlueScope Steel will now be sourcing CRC locally from Mycron. He added that “With Mycron as its domestic supplier, the arrangement would deliver benefits to the company and its customers by ensuring shorter lead times apart from dealing in the same currency, laws, language and culture.”
Mr Azlan said after signing of the agreement in Kuala Lumpur that this not only represents savings for the country in terms of foreign exchange but also reflects the ability of a local company to provide the materials.
BlueScope Steel Sdn Bhd is a 60% to 40%JV between BlueScope Steel Ltd and PNB Equity Resource Corporation Sdn Bhd, which is a wholly owned subsidiary of Permodalan Nasional Bhd.
Khuzestan up for privatization – Report
IRNA reported that 25% of Iranian steel maker Khuzestan Steel Company shares will be given to the public in the form of justice shares and 50% will be transferred to the private sector in the year to March 2008.
Mr Gholamreza Foroughinia director for stock affairs of Khuzestan Steel told IRNA that the firm would no longer be a state run entity once its shares are ceded. He added that the shares would be offered in the stock exchange in several phases.
Mr Gholamreza said some 5% of its stocks, worth over IRR 109 million will be floated in the stock exchange to evaluate the price, adding that in the next step, another 5% of its shares will preferentially be sold to company’s workers.
As per report, transfer of shares of KSC is in line with Article 44 of the Iranian Constitution, which seeks large scale privatization in economic areas, which were off the limit of private enterprises for almost three decades.
Chelyabinsk Zinc Q1 net profit soars 77% YoY
Interfax reported that Chelyabinsk Zinc Plant net profit to International Financial Reporting Standards soared 77% YoY to USD 21 million in January to March quarter of 2007 as against in January to March quarter 2006.
POSCO breaks ground for CR complex in Vietnam
It is reported that POSCO has began building a USD 361 million CR complex at the Phu My industrial complex near the southern Vietnamese city of Ho Chi Minh. The facility is slated for completion by 2009 will produce 0.7 million tonnes of cold rolled steel a year.
POSCO is also building a USD 13.8 million steel processing facility in nearby Dong Nai province. To come up in Nhon Trach 5 Industrial Park, it will produce 100,000 tonnes per year once it goes on stream in June 2008. Its feedstock will come partly from the Ba Ria-Vung Tau complex.
POSCO will also start construction of a hot-rolled steel facility in the complex in 2010. Estimated to cost USD 767 million, it will be designed to produce 3 million tonnes annually.
Coal and Allied announces H1 results
Rio Tinto’s 75.7% owned subsidiary, Coal & Allied Industries Limited, issued announced the following results for H1 of 2007
1. Revenue was AUD 656.8 million as compared with AUD 732.6 million for the same period last year.
2. Net profit after tax was AUD 70 million compared with AUD148.6 million for the same period last year. This net profit benefited from a one off income tax adjustment of AUD 46.1 million.
3. Coal & Allied’s share of production was down by 21.8% YoY to 8.6 million tonnes from 11 million tonnes in 2006).
Mr Doug Ritchie MD of Coal & Allied said “Coal & Allied’s net profit after tax of Aud 70 million was helped by a one off income tax adjustment of AUD 46 million. The underlying result of AUD 24 million reflects the difficulties arising from the poor performance of the Hunter Valley coal chain and the impact of floods on our operations in June.”
Mr Ritchi added that “Coal & Allied’s share of production in the first half of 2007 was down nearly 22%YoY as compared with 2006, despite record prices for thermal coal. Sharp increases in demurrage costs resulting from the ship queues off Newcastle and the strengthening of the Australian dollar also adversely impacted the company’s result.”
He said “Infrastructure issues continued to impact Coal & Allied’s financial performance and until a satisfactory long term commercial framework is put in place there is unlikely to be any significant improvement in this performance.”
Its capital expenditure for the half year was AUD 59.4 million as compared with AUD 40.4 million for the same period last year. The main expenditure for the first half of 2007 was for replacement of heavy mobile equipment.
SK Group buys Chinese coking coal mine
YIEH reported that SK Group has decided to invest KRW 40.7 billion to acquire a one third stake in Shanxi Huineng Mining Co's Pingding coal mine in China Shanxi province.
As per report the mine output of 450,000 tonnes per year of coking coal is expected to increase to 1.8 million tonnes per year by 2009 from this capital increase.
PT Bumi H1 net profit zooms up by 698% YoY
Indonesia's largest coal miner PT Bumi Resources Tbk has posted a net profit of IDR 721.9 billion in the January to June 2007 period up by 698.5 % YoY as against from IDR 90.4 billion during the January to June 2006 period, lifted by a gain from the sale of stakes in 2 coal mines to India's TATA Power Co.
PT Bumi had agreed in March 2007 to sell stakes in 2 of its biggest mines PT Kaltim Prima Coal and PT Arutmin Indonesia to Indian private firm TATA Power Co for USD 1.3 billion. PT Bumi, which has a market capitalization of USD 5.7 billion, booked a gain of IDR 547.2 billion from the sale to TATA and its net profit has increased by 93.2%.
PT Bumi has said that it sold 28.4 million tonnes of coal in the January to June 2007 period compared with 23.1 million tonnes in the January to June 2006 period and was on track to meet this year's sales target of 58 million tonnes. The strong first half coal sales resulted in a 33% increase in its revenue to IDR 1.15 trillion while its operating income has climbed by 36% to IDR 212.8 billion.
Bumi Resources is aiming to boost production by more than half over the next 4 years, reaching 100 million tonnes by the end of the decade.
Indonesia, which has surpassed Australia as the world's biggest exporter of thermal coal, has produced 193.5 million tonnes of coal in 2006 and output is expected to rise by 10% to around 214 million tonnes in 2007. Rising exports from Indonesia are expected to help keep a lid on regional coal prices, which have nearly doubled in the past 3 years due to limited Australian export growth plus rapidly rising demand from China and India.
Spanish scrap imports hit 7.23 million tons in 2006
It is reported that Spanish imports of scrap in 2006 reached a record levels at 7.23 million tonnes increasing by 7.1% YoY. In the same time the total output of crude steel hit 18.40 million tonnes ranking the 14th biggest producer in the world.
UK ranks the first exporter with total volume of 1.855 million tonnes accounting for 25.6% but down by 3.8% YoY. France exported some 1.686 million tonnes of scrap accounting for 23.3% and Russia ranked the third with 1.437 million tonnes accounting for 19.9% increasing by 0.6% in 2006.
Kumba H1 revenue up by 35% YoY
In January to June 2007, Kumba iron Ore grew its revenue by 35% YoY to ZAR 5.4 billion compared with a proforma ZAR 4 billion in January to June 2006. The reason for pro forma figures is Kumba group was created only late last year from the unbundling of Kumba Resources into iron ore company Kumba Iron Ore and coal and base metals company Exxaro Resources.
Kumba’s operating profit rose by 52% YoY to ZAR 2.9 billion and the operating margin rose by 54% YoY from 48%.
The figures were boosted by a reduction in unit costs at Sishen Mine to ZAR 78,39 a ton from ZAR 87,21 a ton in H2 of 2006. Mr Henk Groenewald an analyst at Coronation Fund said that the group’s costs in this period looked reasonably well controlled but it was difficult to forecast how management would handle cost pressures in future. He added that the whole industry was experiencing cost pressures and Kumba was facing the possibility of an 8% wage hike in current negotiations. Its future performance would depend on its ability to grow production.
Australians take 30% of Pike River Coal offering
It is reported that Australian investors took nearly 30% of Pike River Coal's AUD 85 million capitals raised during a share market float.
Mr John Dow chairman of Pike River Coal's said since the oversubscribed initial public offer of shares, Pike River Coal shares have retreated, but the value loss is no reflection of the company's long term value and business plans. Mr John added that Pike River Coal's June 2007 quarterly shares had fallen partly because of weakness in world share markets and closed down 5c or 5.5% at 85c on the New Zealand Exchange and traded as low as 84c. The shares debuted on July 20th and traded up to 108c.
Mr John Dow said "Firstly it's a long term business that we're in. We had a few people that were short term speculators, which you always get in initial public offerings. The other thing is we've seen serious sell-offs in major markets in the last two or three days, and I think the New Zealand and Australian markets have been affected by the same selling pressures as overseas."
PRC had recently signed a shipbuilding contract with a Chinese shipyard for the first of two self propelled coastal vessels for transport between Port Westland and Port Taranaki.
Baku Steel to resume operation soon
APA Economics reported that Baku Steel Company, which was shut down earlier would restart operations soon.
Mr Namig Ahmadov secretary of Baku Steel told APA Economics that raw material collected is enough for restart of operation now. He added that “The plant will start with 1,000 tons of raw material daily and the amount will increase later. We ourselves collected 95% of the raw material. The executive bodies also offered their metallic wastes. Besides, metallic waste of an old enterprise located at Heydar Aliyev Avenue will be given to us.”
It is the second time that Baku Steal Company shut down. Baku’s annual capacity is 350,000 tonnes and it needs about 1,000 tonnes to 1,500 tonnes of metallic material daily to operate at full capacity.
Mittal Steel Ostrava becomes ArcelorMittal Ostrava
The largest Czech steelworks and subsidiary of the ArcelorMittal group Mittal Steel Ostrava announced that it has changed its name to ArcelorMittal Ostrava.
Ms Jana Dronska a spokeswoman said that ArcelorMittal Ostrava is also changing its logo and introducing ArcelorMittal as its new trademark.
ArcelorMittal Ostrava produced around 3 million tonnes of steel in 2006 and employs about 7,400 staff. Around 70% of the company's shares are in the hands of Mittal Steel Holdings. ArcelorMittal Ostrava made net profit worth CZK 9.6 billion during March 2006 to February 2007 a growth of CZK 5 billion YoY. Its revenues grew to CZK 58.7 billion in 2006 from CZK 57 billion in 2005. ArcelorMittal Ostrava including all its five subsidiaries made net profit of CZK 9.9 billion on revenues of CZK 61.5 billion.
LNM Holdings signed an agreement to buy Nova Hut, the largest steel producer in the Czech Republic, from the government. The acquisition, at an all in cost of USD 905 million, took effect in January 2003 and the company was renamed Ispat Nova Hut and later to Mittal Steel Ostrava.
Chongqing Steel to construct 2 million tonne plate mill
Interfax China reported that Chongqing Iron and Steel Group will soon commence construction on a 2 million tonnes, 3,800 millimeter wide hot rolled steel plate facility at Chongqing Municipality's Changshou district to supply the shipbuilding industry.
Kumba expects double digit price increase for iron ore
According to Mr Ras Myburgh CEO of Kumba Iron Ore spot market for iron ore over contract prices are clearly indicating the possibility of double digit price increases next year.
He however said it was too early to predict the annual contract price that would take effect from April 1st 2008 and that Kumba’s official forecasts are not for double digit increases but it might be necessary to adjust the forecast.
Market watchers have suggested iron ore prices could rise as much as 20% after a 9.5% price increase in 2007 because of continued strong Chinese demand.
Kumba Iron Ore exported 37% of its production to China but expects China to account for 51% of exports by 2011 -12. China would mainly be supplied from increased output from the Sishen Expansion Project.
Mr Myburgh said that this year the project would produce 1.5 million tonnes of iron ore and next year 9 million tonnes. At Sishen South a ZAR 4.5 billion greenfields project to produce 9 million tonnes of export ore. He added that the feasibility study had been completed but finalization had been delayed by negotiations with Transnet.
Feng Hsin to set up new flat bar mill
YIEH reported that Feng Hsin Iron & Steel, one of main long product producer in Taiwan, is going to put a new small flat bar mill into production in August 2007.
The rolling mill has ability to produce around 2,000 tonnes of small size flat bars per month, mainly focusing on 15mm x 3mm to 20mm x 6mm thick bars through using 14mm, 18mm and 20mm coiled round bar.
Vietnam industrial output up 17% YoY in 7 months
According to the Vietnam General Statistics Office, Vietnam’s industrial output during January to July 2007 rose by 17% YoY to VND 325.94 trillion (USD 20.37 billion). The figure is 1.5 times higher than the Government’s 2007 target.
In the non State owned sector, output grew by 20.4% while foreign companies increased by 19% and State owned enterprises expanded 9.7%. The coal industry produced 24.3 million tonnes up nearly by 15% YoY.
An official from the GSO’s Industry Department said that "There is now a significant number of supply contracts for industrial products at home and abroad, and coal to China is an example. The rapid development of housing, urban areas and infrastructure projects has also resulted in greater demand for building materials."
In mid July 2007, Mr Bui Xuan Khu deputy minister of industry said that industrial output must grow by over 17.3% a month for the remainder of the year to achieve the Government’s GDP growth target of 8.5%.
Zaporizhia Ferroalloy H1 production up 10.6% YoY
Journal Staff reported that Zaporizhia Ferroalloy Works has increased production by 10.6% YoY to 227,500 tonnes in H1 of 2007.
A company official told Journal Staff that Zaporizhia increased production of silicon manganese by 1.3% YoY to 183,700 tonnes and output of ferrosilicon by 74.5% YoY to 45,200 tons, while reducing production of ferromanganese by 7.6% YoY to 39,100 tonnes. Production of other ferroalloys jumped to 9,400 tonnes from as compared to 1,500 tonnes in H1 of 2006.
Reopening of Immel zinc mine suspended after fatal accident
Metals Insider reported that the re opening of the Immel zinc mine in Tennessee one of three being reactivated by new owner Glencore has been suspended after a fatal accident over the weekend.
As per report Federal officials are investigating the incident, which saw a worker fall to his death while working on replacing structural steel in a main shaft at the mine.
US’s Mine Safety and Health Administration issued an order to suspend work reactivating the mine pending completion of its investigation.
