TATA Steel to acquire 35% stake in Riverseale coal project in Mozambique

PTI reported that TATA Steel signed an accord with Riverseale Mining Limited to acquire 35% stake in its Mozambique coal project for AUD 100 million.

The report cited a TATA Steel spokesman as saying that "TATA Steel and Riverseale Mining Ltd, listed on Australian Stock Exchange, have entered into an MoU for strategic investment in Riverseale's Mozambique coal project by acquiring 35% stake in it for a sum of AUD 100 million.”

JSW Steel posts 18% growth in crude steel production in July 2007

JSW Steel Limited announced that it has registered a growth of 18% in crude steel production in July 2007.

The update is as under

Production is in million tonnes
Change is with respect to July 2006

JSW release added that its crude steel production is higher by 18% YoY despite of shutdown of one of the hot metal furnaces for around 23 days in July 2007.

Indian Railway plans major expansions in 11th Plan

BL reported that Mr VN Mathur, who took over as member traffic of the Indian Railway Board in April 2007, during his interview with Business Line highlighted that the biggest challenge being faced by the Indian Railways right now is to plan for the future and work out the modalities as to how to implement it within the stipulated time in the most cost efficient manner.

Mr Mathur outlined the plans as “Indian Railways would like to achieve a freight traffic of 1150 million tonnes by the end of the 11th Plan up from 725 million tonnes handled in 2006-07 and a passenger traffic of an estimated 880 billion passenger kilometers by the end of the 11th Plan up from 660 billion passenger kilometers. We have submitted to the Planning Commission an INR 251,000 crore proposal for implementation by the end of the 11th Plan. We have indicated mobilization of INR 90,000 crore from within and 29% of the projected estimate by way of market borrowing. For the balance, we may have to approach the government for support. But then nothing has yet been finalized.”

He added that the freight traffic target for the current fiscal has been set at 785 million tonnes roughly 60 million tonnes more than that handled in 2006-07. He said “In other words, the Indian Railways is required to handle an additional 5 million tonnes of traffic every month on an average. In the first quarter we are supposed to handle an additional 15 million tonnes but we handled 10 million tonnes. Loading of coal, iron ore and cement has been lower than estimated for a variety of reasons. There were problems at collieries affecting loading, coal accounts for the bulk of the Railway’s freight traffic. Iron ore loading too was unsatisfactory because of the poor demand from steel plants, both in the private and public sector, due to their own problems.”

JSL plans steel plant in Russia – Report

ET reported that Indian SS major Jindal Stainless Limited is planning a foray into the Russian market by setting up a Greenfield facility in the Leningrad region of Russia. It quoted a source as saying that JSL may invest up to USD 60 million in an integrated stainless steel facility in Leningrad with a capacity to make 0.4 million tonnes of stainless steel per year in the first phase.

The paper cited reports from Russia as saying that the region's economic development commission is in talks with the company and is ready with potential sites for the proposed plant. The commission wants construction of the plant to begin in 2008-09.

However, the report also mentioned that Mr VS Jain CEO of JSL denied having struck a deal in Russia. It quoted him as saying that “The company is constantly looking at attractive investment opportunities in the overseas markets including Russia that gives us control over inputs like manganese ore and ferrochrome. However, things are still at a preliminary stage.”

JSL has planned to set up a 1.6 million tonne integrated stainless steel plant in Orissa state in phases. It is also increasing its capacity of its Hisar plant to 0.9 million tonnes from 0.6 million tonnes.

Mines ministry opposing coal blocks auction process

ET reported that in sharp contrast to union coal ministry's views to auction coal blocks to various sectors, union mines ministry has strongly opposed the move on grounds this will lead to power utilities losing their priority status and increase electricity tariffs.

Union mines ministry, in a draft note prepared for the Prime Minister's Office on the national mineral policy said that "While steel and cement sectors produce products whose prices are market driven, power sector operates in a regulated environment and increase in cost of coal may get passed on to the consumers in the form of higher price of electricity. Under the proposed auction through competitive bidding procedure, the power sector and the public sector units will lose their priority status."

The draft note also said that since power companies cannot pay higher price which steel and cement sectors can, they might not be able to compete with the later. This would not be desirable considering the higher priority of power companies compared to other sectors.

Power utilities have also opposed the competitive bidding process, approved by a Group of Ministers headed by Mr Shivraj Patil union home minister, arguing that the current priority accorded to the power sector especially state run utilities would cease to exist in the new regime.

The Coal Ministry will, however, soon start allocating coal blocks through competitive bidding instead of getting an inter ministerial screening committee to earmark them and to make the process more transparent. A top coal ministry official said that "After the Group of Ministers cleared the proposal for competitive bidding based allocation of coal blocks we will begin allocation of such blocks soon."

China National Machinery to build Chhattisgarh power project

It is reported that China National Machinery and Equipment Import & Export Co has bagged the contract from Chhattisgarh State Electricity Board to develop 2x300 MW Korba West Hasdeo Power Project Stage III. NTPC, which was appointed as consultant, recommended to award contract to this company.

It is learnt that the letter of intent has also been issued to the CMEC with a proposal to design the two units with a capacity of 300 MW each instead of 250 MW as proposed earlier.

The company has, however, underlined a few points in the LoI that were not acceptable to it and had urged the state power board to change a few conditions and clauses. After examining, the board officials have agreed to make the required change in the LoI.

Gujarat to set up 5 logistics parks along freight corridor

Exim News Service reported that Gujarat Infrastructure Development Board is planning to set up 5 logistics parks along the Delhi to Mumbai Industrial Corridor.

The exact locations would be decided on the basis of a study and the state government plans to hand over the projects to private players. But the likely location might be in following stretches
1. Palanpur to Mehsana
2. Ahmedabad to Surendranagar
3. Gandhidham to Samakhiyali
4. Dahej to Bharuch
5. Hazira to Surat.

A large scale multi user warehousing facilities, which can handle a variety of commodities, in these logistics parks will facilitate cargo transportation to all ports of Gujarat. Apart from the dedicated freight corridor, the parks will come up at other important rail and road links like national highways and business centers in the state.

Suzlon to reach 5,000 MW capacity by March 2008

Project Today reported that Suzlon Energy is targeting 5,000 MW capacity installations from the current 2,700 MW by March 2008. As part of this, Suzlon is in the process of investing about INR 3,310 crore at its Indian and overseas facilities.

Sizlon’s recently acquired Belgian gearbox maker Hansen Transmissions is expanding its manufacturing capacity from about 3,600 MW to 5,800 MW with an investment of about INR 800 crore. In India, the capacity is added from 3,500 MW to 9,300 MW with an investment of Rs.980 crore.

In the case of wind turbines, Suzlon has1,500 MW capacity in India and 600 MW each capacity in China and US. An additional 1,500 MW capacity is being added at Udupi in Karnataka with an investment of INR 750 crore.

Mr K Suresh to manage Tuticorin port & Sethusamudram Project also

BL reported that Mr K Suresh chairman of Chennai Port Trust has been given additional charge to manage the Tuticorin Port Trust and the Sethusamudram Ship Canal Project as Mr NK Raghupathy chairman of Tuticorin Port Trust and CMD of Sethusamudram Ship Canal Project was granted leave by the shipping ministry.

Mr Raghupathy deputy mayor of Coimbatore said that “I had a press meet on 28th of July 2007. After that I was asked to hand over both the posts to Mr K Suresh. I cannot tell anything beyond this.”

Gujarat NRE complete equity placement of AUD 10.5 million

Gujarat NRE Coke Ltd has recently announced that its Australian Subsidiary Gujarat NRE Resources NL has recently successfully completed equity private placement of AUD 10.5 million.

Ernst & Young Transaction Advisor Services Ltd. acted as Financial Adviser. Steinepreis Paganin acted as Legal Advisers. BBY Ltd managed the Placement.

Mr Arun Kumar Jagatramka chairman of Gujarat NRE Resources NL said that "We are delighted that the company has attracted the support of such reputed international institutions. The funds raised will be directed towards the acquisition of BHP Billiton's Elouera Colliery and will provide additional working capital. The Elouera acquisition is progressing well and is expected to be completed during the next quarter."

In a related development India's largest commercial bank the State Bank of India has sanctioned debt facilities in excess of AUD 100 million to part finance the aforesaid acquisition and to meet the development costs & working capital requirements.

SCI Q1 net profit after tax up by 13% YoY

Shipping Corporation of India Limited has announced the following unaudited results for the April to June 2007 quarter:

Shipping Corporation of India Limited has posted a net profit after tax of INR 2061.2 million for the April to June 2007 quarter up by 13.2% YoY as compared to INR 1820.1 million for the April to June 2006 quarter. It has also posted total income of INR 9580.9 million for the April to June 2007 quarter up by 12.6% YoY as against INR 8506.8 million for the April to June 2006 quarter.

Godawari Power & Ispat reports Q1 results

Godawari Power & Ispat has announced the impressive first quarter results for April to June 2007 quarter.

Godawari Power & Ispat has posted 61.5% YoY growth in top line and 72.9% YoY growth in bottom line, driven primarily by higher volume and realizations. The operating margin has also improved by 350 basis points to 20%.

Hindalco Industries Q1 net profit remains flat

Hindalco Industries Limited has announced the following unaudited results for the April to June 2007 quarter:

Hindalco Industries Limited has posted a net profit of INR 6029 million for the April to June 2007 quarter up by 0.2% YoY as compared to INR 6015 million for the April to June 2006 quarter. It has also posted total income of INR 48025 million for the April to June 2007 quarter up by 10.3% YoY as against INR 43513 million for the April to June 2006 quarter.

Orissa looking for Punjab and Haryana investors

It is reported that a 30 member delegation of Orissa comprising senior government officials, representatives of industry associations and promoters of small and medium enterprises has visited Ludhiana on July 26th 2007 to broaden their perspective in the domain of ancillary and downstream industries in the booming metal sector.

The Orissa officials met Mr OP Munjal co chairman of Hero Group and invited him to consider Orissa for investments. The team also met Mr Rajinder Gupta of Trident group of industries and invited him to visit Orissa for investments in the textile and food processing sector.

The program was configured with the support of Aarti Steels in Ludhiana, which has an upcoming mother steel plant in Orissa. The team’s visits to GNA, a leading auto component manufacturer in the medium scale and Hero cycles factory were very useful and showed keen interest to visit Orissa.

CVRD is a part of JV acquiring Sparrows Point from ArcelorMittal

Companhia Vale do Rio Doce announced that it is a partner in a JV that has entered into an agreement to acquire substantially all assets of the ArcelorMittal USA wholly owned Sparrows Point steel mill. The transaction is subject to the customary precedent conditions, including the approval by the United States Department of Justice.

CVRD is committed to invest up to USD 270 million to take a minority stake in the joint venture whether and when the transaction is approved.

CVRD partners in the JV are Ukrainian Industrial Union of Donbass, a US based steel services company Esmark Inc, Wheeling-Pittsburgh Corporation and some US based institutional investors.

CVRD release said that “The acquisition of Sparrows Point is consistent with our strategy of investing in minority stakes in steel assets to foster iron ore sales growth.”

Rio Tinto H1 net income dips by 14% YoY

It is reported that global mining major Rio Tinto Group said that its net income during January to June 2007 period Net income dropped to USD 3.25 billion from USD 3.8 billion in January to June 2006 period. Its sales during this period increased by 15% YoY to USD 13.9 billion. The drop in first-half profit was the first in four years for Rio.

Higher production costs cut earnings by USD 503 million while exchange rate fluctuations lost a further USD 118 million, the company said. A one off tax gain of more than USD 250 million in the same half last year wasn't repeated.

Mr Tom Albanese CEO of Rio Tinto said “The cost increases have put pressure on our operations, particularly in Australia. We should not assume that we should just accept them or become complacent and we are taking steps to reduce them.''

Mr Albanese however added that “Higher costs were partly offset by rising demand from China for metals such as copper, aluminum and iron ore. The Chinese economy is motoring ahead. Showing no signs of slowing' and surpassing the company's expectations in the first half.”

Nucor to Acquire LMP Steel & Wire

Nucor Corporation announced that it has entered into an agreement to acquire substantially all of the assets of LMP Steel & Wire Company for a cash purchase price of approximately USD 28 million. Finalization of the acquisition will occur after satisfactory resolution of any regulatory approvals, transfer of appropriate permits and other contracts, and other closing conditions. The transaction is expected to close during the third quarter of 2007.

Located at Maryville in Missouri, LMP is a producer of cold finished bar and operates related businesses servicing the construction and OEM markets in North America. With approximately 100,000 tons of capacity and 155 employees, LMP is a significant player in the cold finish industry.

Mr Dan DiMicco chairman, president & CEO of Nucor said "The acquisition of LMP is a solid growth opportunity for one of our core downstream businesses. LMP's highly complementary product offering and operations will be a good fit with our existing cold finish business. We look forward to welcoming the LMP employees to the Nucor team."

Hyundai Steel's Q2 earnings up by 23% YoY

South Korean steel major Hyundai Steel Co announced that its April to June 2007 quarter earnings increased by 23% due to increased demand for steel products.

Its net profit reached KWR 191 billion (USD 207 million) in the April to June 2007 period as compared with KWR 156 billion in April to June 2006 quarter.

WV senator urges US ITC to keep AD and CVD on HR

It is reported that Mr John D Rockefeller IV senator of West Virginia has urged the US International Trade Commission to preserve the existing antidumping and countervailing duty orders on hot rolled carbon steel flat products citing that many West Virginia steel jobs depend on the preservation of these orders.

Mr Rockefeller testified at ITC hearing on the review of these orders. He said “West Virginia workers can compete with anyone in the world when it is a fair fight. I refuse to stand back and watch our steel companies again become victims of unfair trade practices.”

He said “As I am one of the first witnesses to testify, I want to take a step back from the detailed facts you are going to hear over the next two days and urge you in broad terms to keep in mind that what all of us will be saying each from the perspective of our own state, or district, or company is fundamentally the same thing.”

He said “Since this ITC decision in 2001, West Virginia steelworkers have fought to recover from years of illegal steel dumping on our markets. There is no question that these orders have encouraged a level playing field and helped the steel industry recover from the unfair trade that occurred before they were in place. Lifting the orders will have enormous consequences on the steel industry reversing the effects and creating a climate where foreign producers will most certainly seize advantage and dump again.”

Earlier this year, Mr Rockefeller introduced comprehensive new trade legislation to help level the playing field for American manufacturers and to crack down on unfair foreign trade practices. Specifically, Rockefeller’s Strengthening America’s Trade Laws Act of 2007 will tighten the rules in anti dumping and countervailing duty cases.

MEPS forecasts for SS and nickel

MEPS reported that EU Average Stainless Steel transaction prices have now entered the path to the abyss. It said that basis figures have been sacrificed in the month of July, which has seen most deals concluded using only the effective price and this could continue in the short term as alloy surcharges remain at the mercy of nickel price fluctuations.

MEPS said that HR coil figures are expected to suffer more than plate because this market is weaker and under more pressure from imports and higher inventory levels. It said “Hot rolled plate prices are, however, now beginning to show signs of softness. Falling alloy surcharges from August onwards should result in transaction values for both products recording significant drops into the fourth quarter of this year. The decline in nickel prices is forecast to ease after the summer, which should help to stabilise the stainless market by early 2008.”

Meps added that “Nickel prices moved lower in July as they fell further into their deep descent. The July monthly average is set to be around USD 8,500 per tonne lower than June's figure. Values are now forecast to go below the psychological USD 30,000 per tonne in August as stocks on the LME continue to rise. There is still the possibility for another severe drop in the cost of nickel. Stability should return to the market later this year as production cuts from stainless steel producers over the summer months come to an end. New nickel capacity, due on stream later this year and in 2008, is expected to prevent values rising dramatically before the end of the forecast period.”

CVRD eying higher iron ore prices in 2008

It is reported that Brazilian mining giant Companhia Vale do Rio Doce expects a tight iron ore market to continue in the near future, likely meaning higher prices in 2008 price contract talks. Mr Roger Agnelli CEO of CVRD during a press conference told reporters that "We're going to sit down at the negotiating table. I think there is space, yes, for a price increase without a doubt.”

Mr Jose Carlos Martins head of iron ore mining of CVRD during a conference call with analysts to discuss CVRD's second-quarter earnings told reporters that "The landscape for the iron ore market is really brilliant. Producers are not able to increase capacity as fast as demand. All of the basis in the market indicates that there is a lack of iron ore in the market.”

Mr Fabio Barbosa CFO of CVRD told analysts that continued disparity in spot market iron ore prices in China and India shows that the market remains tight. He said "It's a clear indication that the market is imbalanced.” Mr Barbosa also noted that India, a key supplier of iron ore to Asia, is reining in exports as it attempts to meet growing domestic demand. He said "We should expect changes in the Indian exports on the supply side.”

Mr Agnelli said that the next round of price talks also needs to take into account the current strength of global currencies against the dollar. Mr Agnelli noted that the dollar has receded against the euro and Asian currencies. In addition, the Brazilian real has dramatically appreciated against the dollar in recent years. So far in 2007, the real is up 11.4% versus the dollar, after gains of 8.8% in 2006 and 14.2% in 2005. The real's appreciation especially pinches the bottom line at CVRD, which generates revenue in dollars but has costs fixed in reals. CVRD sees an opportunity to rectify those rocketing costs, primarily related to the company's huge development pipeline, in the 2008 talks. He said "We can offset the appreciation of the real in the next price negotiations.”

Mittal Steel SA H1 headline earnings up by 63% YoY

It is reported that ArcelorMittal’s South African unit Mittal Steel South Africa has increased headline earnings for January to June 2007 period by 63%YoY to ZAR 3.11 billion. The figure also represents a 14% increase on the July to December 2006 period.

Mittal Steel SA said that the increase in earnings was mainly driven by higher international steel prices, higher domestic sales volumes, an improved sales mix and higher income from the company’s Coke and Chemicals business but was partially offset by lower export volumes an increase in costs and lower gains on foreign exchange and financial instruments.

Mittal Steel said in a note to the JSE that revenue for January to June 2007 increased by 22%YoY compared with the corresponding period of 2006. Its liquid steel production fell by 13% YoY to 3.067 million tonnes, curbed by a rebuild of one of the blast furnaces at its main Vanderbijlpark Works plant.

Domestic sales during January to June 2007 increased by 8%YoY compared with the corresponding period of 2006 driven by strong demand from the building and construction as well as packaging sectors. It added that “The demand from the automotive sector slowed down due to the effect of higher interest rates and the introduction of the National Credit Act while high inventory levels at merchants temporarily suppressed demand from this sector.”

ThyssenKrupp Alabama plant to reach full capacity by 2011

Thomson Financial reported that ThyssenKrupp AG aims to reach full capacity at its future steel plant in Alabama earlier than previously scheduled.

Financial Times Deutschland cited Mr Bob Soulliere CEO of ThyssenKrupp Steel USA as saying that the plant, which is scheduled to open in 2010 aims to reach full capacity by mid 2011.

ThyssenKrupp is investing EUR 2.7 billion in the plant, which will have an annual capacity of 4 million tonnes of flat steel and 1 million of stainless steel. Some 40% of its production will be geared towards the automotive industry.

CVRD foresees 2008 iron ore output at 330 million tonnes

Brazilian mining and metals group CVRD expects iron ore production of some 330 million tonnes in 2008 as against a forecast to churn out 300 million tonnes in 2007 and 264 million tonnes in 2006.

Mr Roger Agnelli CEO of CVRD during a webcast to discuss CVRD's second quarter and first half of 2007 financial results told reporters that "Markets are expected to remain firm in 2008.”

Mr Angelli also said that “CVRD is wrapping up studies to build a new iron ore project in Brazil, called Serra Sul, without citing a possible output capacity. He said "Studies will be ready soon. We would like to conclude construction in 2009 or 2010.”

Chinese government to support Shougang relocation plans

It is reported that China's top economic planner National Development and Reform Commission said that Chinese government has earmarked CNY 300 million from its fiscal budget for Shougang Group's steel plant relocation.

The Caofeidian operations involve a total investment of CNY 67.7 billion in which Shougang Group holds a 51% stake with Tangshan Iron & Steel holding the rest.

The NDRC said earlier that the Caofeidian center is designed to have the capacity to produce 8.98 million tonnes of iron, 9.7 million tonnes steel and 9.13 million tonnes of steel products per year.

Shougang Group will relocate its Beijing operations to Caofeidian in northern Hebei province to help improve the capital city's air quality for the Olympic Games in 2008. Construction of the Shougang's new steel plant in Caofeidian began in March 2007.

Japanese steel output in July to September to increase by 3.5% YoY

It is reported that Japan’s raw steel output during July to September 2007, will increase by 3.5% YoY to 30.094 million tonnes as compared to July to September 2006 which represents second high after July to September 1st 1973.

Japan ministry of economy trade and industry said that the output would reach record 59.98 million tonnes in the H1 of 2007 to September topping former record of 59.87 million tonnes in April to September 1973.

Nippon Steel & Sumikin Stainless Steel cuts SS wire rod output

According to the Japan Stainless Steel Coil Association, Nippon Steel & Sumikin Stainless Steel Corp will cut output of wire rods in August and September 2007 by up to 50% as orders from distributors decline. Production of the stainless steel rods would be cut by at least 40%.

Nippon Steel & Sumikin Stainless Steel Corp said Stainless steel sheet and coil inventories rose by 3.2% YoY to 122,136 tonnes at the end of June 2007.

Minteq increases prices of monolithic refractory products

Minteq International Inc a wholly owned subsidiary of Minerals Technologies Inc has announced that effective with shipments on or after September 1st 2007 prices for its monolithic refractory products will increase by 7% to 15% depending on grade. This price increase applies to all regions of the world where Minteq does business. Minteq's monolithic refractory products are used primarily in the steel industry for the repair and maintenance of steel making furnaces.

The release added that “Minteq International Inc ongoing productivity initiatives have been successful in partially offsetting manufacturing cost increases associated primarily with raw material costs and rising ocean freight and domestic transportation costs. However, in 2007, prices for certain raw materials such as magnesia and alumina based raw materials have increased to unprecedented levels. These raw material cost increases are primarily the result of recent changes in China's export policy, including elimination of tax rebates and subsidies, imposition of new taxes on exports and a reduction in the number of export licenses. Minteq will be monitoring the Chinese magnesia supply situation closely and may need to apply further price increases if magnesia prices continue to rise over the next several months.”

Minteq, the premier supplier of engineered refractory lining systems, manufactures monolithic refractories for the iron, steel, non ferrous metals, minerals processing and glass markets and metallurgical wire for the steel market. Combined with its application systems and measurement technology, Minteq products and systems help manufacturers increase productivity and lower overall costs.

Eldorado Gold to develop Vila Nova iron ore deposit in Brazil

Eldorado Gold Corporation recently announced the results of the updated pre feasibility study and the economic analysis of the Vila Nova Iron Ore Project at Amapa State in Brazil.

Mr Paul N Wright president & CEO of Eldorado Gold said that the initial capital required to construct the project is USD 32.7 million including working capital. He said that “The board has approved the construction of the project, which is scheduled to commence during third quarter of 2007. Construction time is estimated at 12 months. The Company has retained an engineering company to complete the detailed engineering for the project.”

Mr Wright informed that the licensing of the project is at an advanced stage with one license pending prior to the start of construction. He said “This is a clearing permit, which the Company expects to receive from SEMA during third quarter of 2007.”

Eldorado has renegotiated the terms of its 50% to 50% JV agreement with DSI Consult a Brazilian private company that controls the mineral rights of Vila Nova. As a result Eldorado now owns 75% of the project with the balance of 25% owned by DSI. In exchange for its increase in the ownership of the project Eldorado has agreed to pay USD 2.8 million to DSI and finance up to USD 30 million of the preproduction CAPEX of the project. Above the USD 30 million thresholds the parties will finance their respective shares of the projects on a 75% to 25% basis.

The Study is based on owner operated mining rather than contract mining, which was used in the 2006 study. Furthermore, the Study calls for truck haul of the ore to the port facilities however Eldorado is currently in negotiations for railroad access as a possible alternative. The ROM ore will be processed at the mine by crushing and screening and minor gravity separation for a total weight recovery of 88 percent. The finished product is sold as lump ore and sinter fines.

Sibirskaya GOK launches briquette plant

FIS reported that the Sibirskaya GOK unit's projected capacity is 180,000 tonnes of briquettes per annum and that it took seven months to construct the unit. The primary equipment was supplied by Spain's Prensoland.

Iron briquettes are made from the ore enrichment wastes of the former Temirsky mine from scale of metallurgical production and iron bearing wastes of the Kemerovo based Spektr Plant.

TKC Steel to make public offer to fund expansion plans

Inquirer reported that publicly listed Philippine based TKC Steel Corporation, of the Tiu family, hopes to raise up to PHP 2.4 billion from an additional offering of shares in the fourth quarter to finance its expansion. The report cited a company official as saying that the estimated proceeds from the offering would range from PHP 1.8 billion to PHP 2.4 billion, although the number of shares and the price had yet to be fixed. TKC Steel has appointed First Metro Investment Corporation as its financial adviser for the exercise.

Mr Anthony Dizon president of TKC Steel said “One of the opportunities we see is the great disparity in the supply and demand for construction materials. The country is still dependent on imports. There is an opportunity for us to grow because we want to supplant imports.”

TKC Steel has controlling interests in Treasure Steelworks and China based ZZ Stronghold Steelworks. Treasure Steelworks has the biggest billet manufacturing facility in the Philippines with a capacity of 300,000 tonnes a year. It was organized in 2005 to operate the former National Steel Corp.’s billet making plant in Iligan City.

CVRD rules out Maranhão for Baosteel JV

BNAmericas reported that CVRD and Baosteel have given up plans to install a steel mill in Brazil's Maranhão state. Mr Roger Agnelli CEO of CVRD told reporters "Maranhão has been ruled out.”

Both companies had been in talks with Maranhão's government to install a mill in capital São Luís, but the state wanted the steel project installed 50 kilometer away at Bacabeira.

CVRD and Baosteel signed a letter of intent last month to build a 5 million tonnes per year steel mill in southeastern Brazil's Espírito Santo state, while studies are underway for a possible expansion to 10 million tonnes per year.

Gazprom and SUEK deal likely to be delayed

Kommersant reported that Russian gas giant Gazprom and diversified energy group SUEK have postponed merging their coal and power assets due to valuation differences. Kommersant r quoted industry sources as saying SUEK had asked auditor Deloitte & Touche to value its assets by the end of September after Gazprom said it considered the previous valuation too high.

Gazprom is seeking to acquire 50% plus one share in the joint venture, while SUEK would get the rest. But government officials remain divided over the planned merger as some say it could be damaging for competition and derail the power sector reform.

Gazprom's assets are worth around USD 4.8 billion, while SUEK's assets are currently estimated at USD 6.3 billion as it plans to contribute coal assets to the new firm alongside its power stakes.

Sherritt posts record Q2 profit on strong sales

Candian Sherritt International Corporation posted a record profit of CAD 132.4 million in the second quarter, more than doubling its CAD 57.2 million year earlier earnings on strong sales and robust metal prices. Its revenue in April to June 2007 rose to CAD 405.4 million from CAD 291.5 million in Aprilto June 2006.

Sherritt International in a release said “Sherritt‘s operations across all business units continue to perform at or near capacity as Sherritt remains focused on delivering strong operating results and executing capital projects.”

It added that “Sherritt anticipates that nickel prices will continue to be above historical averages, despite having declined from the record levels experienced in the second quarter.’

Sherritt operates in Canada, Cuba and elsewhere abroad but not in the United States, where the government objects to the Toronto-based company‘s involvement with the Cuban government led by Fidel Castro. It has interests in thermal coal production, a nickel & cobalt metals business oil & gas exploration, development & production and electricity generation.

Tiantie's 1750 HSM commissioned successfully

It is reported that Tiantie's 1750 hot rolled project undertaken by 20MCC commissioned successfully on July 22nd 2007.

The project, which has 1000 meter in length from slab store to recoiler can produce 1.2mm to 16mm thick and 700mm to 1600mm wide materials with annual capacity of 3 million tonnes per year.

The report also added that No 1 dual regenerative walking beam heating furnace China's largest reheating furnace of the similar kind also started operation.

10 year program for Caofeidian industrial zone

It is reported that management committee of Caofeidian Industry Zone at Tangshan City in Hebei Province held a consulting meeting On July 14th 2007 at Beijing to discuss the zone’s development frame in the next 10 years and guiding plan for attracting merchants.

China’s National Development and Reform Commission earlier this year confirmed Caofeidian as an industry convergent city with four functions: international big port handling energy and raw materials in northern China, world level heavy chemical industry base, state commercial energy reserve and distribution center and national demonstration zone of recycling economy. The previous study confirmed four big industries to be developed in Caofeidian port logistics, steel, chemical industry and facility manufacturing.

The finial target is to set up a national harbor side industry recycling demonstration zone serving Beijing, Tianjin, Hebei province and overseas markets. The target is divided into three stages. The first stage during 2005-2010 is to complete infrastructure construction such as water and electricity supply and road and first phase projects of iron ore, coal, crude oil and LNG docks, steel base as well as thermal power complex items, to launch construction of crude oil reserve base and sea side new city with an area of around 88 square meters.

The second stage during 2011-2020 is to reach targeted capacity of the docks, to build large melting and coking integration plant, power station, pre treatment center for shipbuilding steel and shipbuilding facilities, to launch construction expansion project of Caofeidian steel base with an area of some 200 square meters.

By 2030, Caofeidian will almost complete 301 square meters of land refilling and infrastructure construction, which allows the project to become world level heavy chemical industry base. Unit GDP resources consuming and pollution discharging amount will reach international leading level, port handling capacity stands at 500 million tonnes per year and the project will become an international big port handling energy and raw materials such as iron ore, coal, crude oil and LNG

SCM increases size of syndication

Journal Staff reported that Ukraine's major asset management company System Capital Management, has expanded the size of a syndicated loan attracted via BNP Paribas SA from USD 400 million to USD 545 million.

The report added that the loan is being attracted for three and a half years and the syndication of the loan will be completed before August 15th 2007.

Vostochny Port H1 net up by 2.9 folds

Vostochny port OJSC announced that its net profit under RAS went up by 2.9 fold to RUB 116.286 million in January to June 2007 period as compared to January to June 2006.

Vostochny is the largest port of Russian Far East. It specializes on wood, bulk cargoes, large capacity containers, coal, and fertilizer. Its annual discharge capacity exceeds 18 million tonnes. The port includes 19 mooring lines with 4.7 kilometer total length. The port is controlled by Kuzbassrazrezugol. It handled 16 million tonnes in 2006 that is 4%YoY more then in 2005. The main turnover constituent is exporting of coal, which accounted for 95.3% in 2005.

Harsco Multiserv gets 2 new contracts in France and UK

Worldwide industrial services company Harsco Corporation announced that its industry leading MultiServ mill services division has been awarded new multi year contracts in France and the UK that will expand its services to two current customers and generate additional new revenues estimated at more than USD 15 million over their duration.

Under a new 7 year contract, MultiServ will implement a new mechanized FerroCut® scrap oxycutting service at the ASCOMÉTAL Fos sur Mer steel mill in France. The new FerroCut® installation replaces a previous manual operation to provide greater productivity as well as built in environmental systems for on site fume collection and control. MultiServ’s proprietary FerroCut® technology was developed for the needs of higher volume customers and is capable of cutting the full range of scrap materials up to nearly five and half feet thick.

In the UK, MultiServ will expand its steel product transportation services for ASD metal services. The new 4 year contract adds to a decade long relationship with ASD, during which MultiServ’s in country logistics arm has delivered some 55,000 tonnes of steel coil and plate per year to various locations throughout the United Kingdom. The new contract expands MultiServ’s service role to now handle two separate distribution sites as a single source provider, thus displacing an existing contractor. ASD metal service is part of the Klöckner & Co. group, one of the largest independent steel and metal distributors in Europe and North America.

Harsco’s MultiServ mill services division serves the world’s leading steel and metals companies as an integral, on site service partner at more than 160 mills in over 30 countries. The division’s core services include integrated materials handling, semi finished and finished product management and by product recovery and recycling.

Russel Metals Q2 profit dip by 37% YoY

Russel Metals Inc announced its April to June 2007 quarter net earnings of USD 29 million down by 37% YoY compared with net earnings of USD 46 million in the April to June 2006 quarter. Its revenues for the April to June 2007 quarter were USD 653 million down by 4.8% YoY compared to USD 686 million in April to June 2006 quarter and from the USD 684 million reported in the January to March 2007 quarter.

Net earnings for the January to June 2007 were USD 58 million against USD 84 million in January to June 2006. Revenues declined to USD 1.3 billion for the first 6 months of 2007 compared with USD 1.4 billion in the first 6 months of 2006. Operating profits were USD 95 million for the first 6 months of 2007 against USD 131 million in the same period in 2006.

Mr Bud Siegel president & CEO of Russel Metals said that "I am particularly pleased with the sequential improvement in our metals service centers operating profits and margins. Our steel distributors segment operating profits were similar to the first quarter 2007 and operating margins improved compared with the previous quarter. In the second quarter, the seasonal downturn in the Alberta oil patch was more severe than in recent years and in fact, the Alberta drilling rig count declined to their lowest levels in over a decade. Despite this downturn our segment operating profits were the same as the second quarter last year, thanks to strong results at Pioneer Pipe related to line pipe and at Comco Pipe related to the oil sands, which offset weakness in our Alberta down hole drilling related operations."

Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, AJ Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Milspec Industries, Pioneer Pipe, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York Ennis.

Shougang Jingtang project to start as per schedule

It is reported that Mr Zhang Baoguo deputy director of China’s National Development and Reform Commission and the vice leader of coordination group for Shougang’s relocation has directed the related parties that they should secure Shougang Jingtang iron and steel project to be completed and launch operation as schedule and boost Shougang’s relocation moving on smoothly.

On the Coordinating Meeting for Equipment and Raw Materials Supply of Shougang Jingtang Iron and Steel Project held on July 19th 2007, the principal of the project reported the situation of the construction and the orders of equipment and raw materials. The related suppliers reported the situation of the contracts and the problems encountered.

Mr Zhang Baoguo coordinated the problems and the participants committed that they would boost the manufacturing and producing speed, securing the project launch operation as schedule.

The first phase of the project is to launch production in October 2008.

Mr Leslie appointed as GM procurement of US Steel

United States Steel Corporation announced the appointment of Mr Leslie J Broglie as general manager procurement. Mr Broglie will replace Mr Thomas A Coughlin who was recently named general manager materials management and reports to Mr Christopher J Navetta senior vice president procurement, logistics and diversified businesses.

Mr Broglie's responsibilities include overseeing US Steel's global procurement activities for all energy, maintenance, repair and operating supplies, contract services and other commodities that support the company's domestic and European operations.

Mr Broglie holds a bachelor's degree in commerce and engineering from Drexel University in 1974. Following graduation he joined US Steel as a management trainee in the sheet and tin operations at Mon Valley Works' Irvin Plant near Pittsburgh. In 1995, he moved into US Steel's commercial area after being appointed manager of sales and technical services for United States Steel International at Pittsburgh headquarters.

GVM reports full year EBIT of AUD 6.4 million

It is reported that Coal mining and mineral processing company GVM Metals earnings before interest and tax for April to June quarter 2007 were AUD 1.4 million and for the full year AUD 6.4 million.

GVM Metals cash balance at the end of April to June quarter 2007 was AUD 68 million. It said that it had now repaid all borrowings associated with its NiMag acquisition.

Pakistan considering quality checks on rebars

It is reported that Pakistan ministry of industries and production has directed Engineering Development Board to examine the status of steel manufacturing in Pakistan and the board has submitted a number of the proposals for enforcement of quality check throughout the country.

The demand for quality steel in Pakistan is steadily rising due to the recent boom in construction industry, which has taken the per capita consumption to an all time high figure of 38 kilogram. But there is a sharp shift in demand for the more ductile and resilient deformed steel rebars because of higher incidences of natural calamities.

The main cause of concern for the professional bodies is the fact that Pakistan's 50% to 60% area falls under seismic 3, 4 and 5 categories whereas the steel manufactured locally is neither suitable for seismically active regions nor is it suitable for high rise buildings.