SAIL RSP post record Q1 performance

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant has commenced its second quarter of fiscal 2007-08 registering an all time best performance for any month of July since inception of the plant.

During April to June 2007 quarter, the Rourkela Steel Plant’s hot metal production from blast furnace has reached 0.19 million tonnes up by 8.6% YoY, crude steel output stood at 0.17 million tonnes up by 6.4% YoY and total saleable steel output touched 0.18 million tonnes up by 20% YoY as against April to June 2006 quarter.

At the same time these units has achieved exceptional capacity utilization of 113% in hot metal, 109% in crude steel and an impressive 129% in saleable steel. Dispatch of steel also was the highest when compared to any month of July recording 0.18 million tonnes up by 19% YoY as compared to July 2006.It is noteworthy that the achievement in steel production and dispatch of steel was 102% and 103% respectively of the annual performance plan for July 2006.

Monnet Ispat Q1 net profit up by 82% YoY

Monnet Ispat & Energy Limited posted a net profit of INR 48.55 crore in April to June 2007 quarter up by 82% as against INR 26.64 crores during April to June 2006 quarter. It has also posted total turnover of INR 234.53 crores in April to June 2007 quarter up by 71% YoY as compared to INR 137.12 crores during April to June 2006 quarter.

Mr Sandeep Jajodia MD of Monnet Ispat & Energy Limited said that "In the coming years, Monnet will be focused more on the energy business rather than steel. Within a year, 55% of the revenues will come from the energy business and the rest from steel."

Monnet has completed the expansions in the capacity of sponge iron by 0.5 million tonnes per annum at Raigarh in Chhattisgarh taking up its total capacity to 0.8 million tonnes per annum. With the completion of sponge iron capacity at Raigarh, Monnet has become the 2nd largest coal based sponge iron producer in India. Monnet is also at the advanced stage of implementing a power plant of 90MW at Raigarh, which will then take its total power generation capacity for captive use to 150MW.

Emphasizing its shift to energy from steel making, Monnet has signed a MoU with the Orissa government for setting up a 1,000MW power plant at an estimated cost of INR 4200 crores. The pithead power plant will come up in the Angul district of Orissa in 2 phases of 600MW and 400MW. The 1st phase will be set up at an estimated cost of INR 2850 crores and the 2nd phase at a cost of INR 1350 crores.

TAPI gas pipeline meeting to be held in Islamabad

PTI reported that after more than a year’s wait, the USD 3.5 billion Turkmenistan Afghanistan Pakistan India gas pipeline, which rivals a similar line from Iran, is likely to move ahead in September 2007 with officials of the 4 nations meeting in Islamabad to seal a draft pact.

The meeting of steering committee of the Asian Development Bank backed Turkmenistan Afghanistan Pakistan India gas pipeline project will be held in Islamabad on August 22nd 2007 to August 23r 2007. The meeting in Islamabad will discuss draft gas pipeline framework agreement and also the gas that Turkmenistan can export to the 3 nations.

Officials said that doubts had been expressed on the gas reserves in the central Asian nation and India had asked for a third party certification to back the export pipeline. After Turkmenistan presents reserve estimates, India and Pakistan would indicate the quantity of gas they wish to import.

Turkmenistan Afghanistan Pakistan India gas pipeline is expected to transport 100 million standard cubic meters per day of gas of which India's share at best is likely to be 60 million standard cubic meters per day.

POSCO Orissa a dream or a nightmare

POSCO’s USD 12 billion steel project in Paradip area of Orissa was aimed at surviving the fiercer competition of the globalize era, by securing a beachhead in emerging India. POSCO used to be optimistic about its Orissa project.

Nonetheless, the project has now turned into a cause of great trouble. In 2 years POSCO hasn't even been able to secure the land to build the plant, since about 12,000 local residents have opposed the project out of fear that their homelands will disappear.

Recently POSCO's Korean employees have been leaving India one after another. Its staff of about 30 Korean workers has dwindled to 17, with 6 more planning to return home soon.

It's still unknown when the Orissa government will realize its promise to grant POSCO mining rights to a nearby iron ore mine and weather POSCO will be bale to secure land and keep its already delayed startup of the project.

SAIL DSP Q1 net profit up by 70% YoY

Steel Authority of India Limited’s Durgapur Steel Plant has posted a net profit of INR 220 crore during the April to June 2007 quarter up by 70% YoY. While turnover during April to June 2007 quarter stood at INR 1,009 crore up by 29% YoY.

Production of hot metal in the April to June 2007 quarter went up by 21% YoY, crude steel went up by 13% YoY and saleable steel went up by 6% YoY. The rise in net profit has been attributed to internal efficiencies, increased blast furnace productivity, emphasis on production of special steel and optimization of the product mix.

The figures represent all time best first quarter results in the history of Durgapur Steel Plant. In 2006-07, Durgapur Steel Plant’s net profit had stood at INR 623.74 crore.

Lanco to forget Sasan and focus on other power projects

Lanco Consortium, which had won the bid for Sasan ultra mega power project through a competitive bidding process in December 2006 but after deliberations for 7 months, government of India has taken a decision to cancel the award, believes that it has made a fair bid for the project and therefore does not agree with the government's view.

However a company release said that “In this regard, however, taking into consideration the larger interests of the public, Lanco humbly respects the decision of the governments. It has now updated the bid for the project.”

The release added that “Lanco has played a leadership role in setting a competitive tariff benchmark for the sector. Lanco's INR 1.196 per unit tariff benchmark bid for the 4,000MW Sasan ultra mega power project and the tariff benchmark bid for the 1000MW Anpara 'C' project in Uttar Pradesh would usher in competitive tariffs into the power sector in future, benefiting the consumers and the nation.”

Lanco added that “India government has targeted to add about 75,000MW in the 11th Plan period and Lanco believes that there is a huge opportunity in the power sector and it is well positioned to successfully participate in this opportunity. Lanco is committed to support the initiatives of the government for increasing the power generation capacity in India at competitive tariffs."

Sunflag Q2 net sales up by 15%YoY

It is reported that Sunflag Iron & Steel Company posted a marginal rise of 4.35% YoY for the April to June quarter 2007 to INR 67.1 million as compared with INR 64.3 million in April to June quarter 2006.

(In million)

Net sales for April to June 2007 quarter rose by 15.07% YoY to INR 2,212 million from INR 1,922.3 million in April to June 2006 quarter. Total income of the company increased by 14.71% YoY to INR 2,212.3 million during April to June 2007 quarter from INR 1,928.6 million in the corresponding period of April to June 2006 quarter.

Sunflag Iron & Steel Company was promoted in the year 1984 by Sunflag, a Channel Islands based company, manufacturing mild and alloy steel rolled products. The company is part of the Sunflag group, which has interests in artificial leather, synthetic fibers, spinning, weaving, garments, agriculture and agro based industries.

Hunger strike against Sikkim hydel projects continues

It is reported that the indefinite hunger strike by the Affected Citizens of Teesta in protest against mega hydel projects planned in Sikkim has crossed 40 days last week.

As per report, 2 members of Affected Citizens of Teesta were force fed by the administration but other members are continuing with their relay hunger strike.

It is also reported that Lepchas from different parts of the Darjeeling hills had participated in the rally, which marched to the District Magistrate’s office to express solidarity with ACT on their satyagraha and indefinite hunger strike. Later, the rally submitted a memorandum to the Additional District Magistrate. They have demanded that the West Bengal Government put pressure on the Sikkim Government to scrap all hydel projects proposed in Dzongu.

Pratibha Constructions bags civil work contract for Paras power plant

It is reported that Maharashtra State Power Generation Corporation has awarded a contract to Pratibha Constructions for executing civil works of foundation and superstructure of main plant building, bunker bay along with foundations in boiler area, ESP area with ESP control room etc for Paras thermal power station expansion unit 2 (1x250MW) in Akola district of Maharashtra. Bids were invited during February 2007.

This project is part of 4 power projects in Maharashtra approved by the state cabinet in May 2006, which is targeting for progressive commissioning between November 2008 and February 2010.

BILT Power to set up 1,200MW power plant in Orissa

BS reported that Ballarpur Industries Limited’s outfit BILT Power is planning to set up a 1,200MW independent power plant at Choudwar in Orissa on 950 acres of land at an investment of around INR 6,000 crore.

The detailed project report and feasibility study reports have already been submitted to Orissa government and is awaiting the government nod. Funds for the project will be sourced through loans from banks and financial institutions, of which 70% will be debt and 30% will come in as promoters' equity.

Currently, BILT Power aggregates 100MW of captive power plant capacity at Sewa Yamunanagar in Haryana and 2 plants each at Pune with 25MW and Ballarshah with 30MW in Maharashtra. Bilt Power has applied for allotment of coal blocks at Mandakini in the Talcher Coalfields of Orissa.

Ankit Metal installs a new ferroalloy furnace

Ankit Metal & Power Limited announced that it has installed a 5.5 MVA furnace to produce manganese based ferroalloys with specialty grade at its existing plant facilities with a total capital outlay of INR 8.7 crores, to be funded through bank loan and internal accrual in a debt equity ratio of 1.5:1.

Eagle Bulk to acquire 26 Supramax vessels from

Eagle Bulk Shipping Inc announced that it has agreed to acquire a fleet of 26 Supramax vessels for USD 1.1 billion from the parent of Greek shipping company Anemi Maritime Services. The transaction is subject to completion of customary documentation and closing conditions.

The 26 Supramax vessels are expected to be delivered between 2008 and 2012. 21 of the 26 vessels are secured by long term charters up to 2018, with average charter duration in excess of 10 years. The minimum contracted revenue on the chartered vessels is approximately USD 1 billion.

The acquisition will more than double Eagle’s fleet size from 23 vessels to 49 vessels, expand tonnage by 124% and reduce the average age of the fleet to 2 years. Upon completion of this acquisition, the Eagle fleet will consist of 46 Supramax vessels and 3 Handymax vessels.

US steel buyer inventories decline but demand remains weak

Platts reported that according to respondents to the monthly survey conducted by the National Steel Buyers Forum of the Institute for Supply Management steel end user inventories in the US continued to outpace demand in July but stocks are dwindling. The data suggest steel end users may again be in the market to buy after the summer, while filling certain holes at the present time.

The report quotes following results
1. 55% of respondents in July described inventory levels as too high compared to demand down slightly from the 60% in June who gave the same description.
2. About 40% of steel buyers surveyed in July said inventory levels were just right compared with demand, the same percentage as June.
3. Perhaps most indicative of an inventory drawdown, 5% of respondents said July inventories were too low compared to none who thought so in June.

The report added that
1. 50% of steel buyers surveyed in July said they had enough tonnage on hand to cover current shipping levels for only one to two months, up from 40% in June.
2. 20% of respondents reported they had enough steel on hand in July to cover shipments for two to three months down from 30% of respondents in June.
3. About 15% of July respondents said their shipping levels could cover zero to one month, the same response rate as June.
4. Some 15% of buyers surveyed said tons on hand would cover shipments for an extended period of time between three to five months

The July responses mostly point to declining inventory levels compared with June, but buyers appeared to be feeling uninspired about the business outlook. While responding to “The trend of sales and production in my industry for the next six months is expected to be"
1. About 25% of respondents in July said up, a decrease from June's 35%.
2. Another 40% of respondents in July said the trend would be about the same up from 35% in June
3. 35% thought it would be down.

The National Steel Buyers Forum of the Institute for Supply Management is an influential group whose members supervises, buys, or manages the procurement of steel.

SS pricing mechanism effected due to nickel slide

MEPS reported that Western stainless steel producers of strip mill products have temporarily abandoned their traditional basis plus surcharge mechanism for selling their material. MEPS said that most EU and US mills are now quoting only transaction figures principally to disguise the discounts necessary to obtain orders after the fall in the price of nickel since early June.

MEPS said that “Technically, surcharges in July for grade 304 increased by around 5% and 3% in the EU and US, respectively. With the prospect of them falling over the next two months by almost EUR 750 and USD1400 per tonne it is not surprising that customers are refusing to pay the current inflated figures. The alloy surcharge is almost meaningless in negotiations at this time.”

MEPS added that mill orders have dried up and many producers have plans to cut output in the short term but are pushing material into stock and selling at substantially discounted levels to generate the limited business available.

However MEPS said that “Western stainless steel makers are reluctant to give up the alloy surcharge mechanism which has served them well over the last decade. They continue to publish official figures for July and August deliveries, despite the fact that they will not be used for most deals. As a result, we will be publishing the quoted surcharge values in our tables.”

Magang’s No 1 HDG line launches commercial operation

It is reported that No 1 hot galvanizing line of Ma’gang’s 2130 cold rolling project launched commercial operation on July 26th 2007, following pickling and rolling line and continuous annealing line in Magang New Area.

Its No 1 hot galvanizing line began ground construction on 20th May 2006 and began the equipment installation on 11th Sep 2006. On 20th Jan 2007 the line began part testing and began cold commissioning on 26th April 2007 then finally launched commercial production on 26th July 2006, 14 months and 6 days after launching construction.

The 2130 cold rolling project is contracted with China MCC20 Construction Company Limited.

Coal mine gas leak kills 4 in Shanxi

Xinhua reported that 4 miners were killed and another 4 were still trapped in a coalmine gas leak last weakened at Hancheng City in northwest China's Shaanxi Province.

Local government sources said that the gas leak took place at Panlong Coal Mine at 5 PM when 15 miners were toiling in the shaft. Seven of them managed to escape.

Panlong Coal Mine is a newly built coal mining entity with required documents and licenses. It reportedly has not begun production.

After the accident at the coalmine, authorities in Hancheng City ordered all local coalmines to suspend production to root out hidden safety loopholes.

Mechel to reconstruct rolling mill at its Izhstal facility

Russian mining and metals company Mechel OAO announced the commencement of reconstruction of its Light Section Wire Mill 250, located at its Izhstal facility. After the reconstruction, the mill will be able to expand its metal product mix with regard to product grades and sections, improve quality and reduce consumption ratios and production costs.

The work to design, manufacture and deliver equipment for the mill reconstruction is carried out by Siemens VAI Metals Technologies SRL of Germany. The project duration is expected to be approximately 18 months and cost approximately USD 45.0 million.

The reconstruction will include building a new heating furnace, replacement and installation of stands, replacement of the mill drivers and electric equipment, implementation of the automated control system, installation of the rolled product fast cooling unit and new cooling bank and installation of the new facilities for cutting, packing, and weighing finished products.

The reconstruction is expected to result in significant reduction of the steel consumption ratio in rolled product manufacturing, consumption of natural gas, electric power, and metal for subsequent processing, improvement of product quality and ensuring product compliance with the current international standards. After reaching its planned capacity the mill is expected to produce 300,000 tonnes of products annually, a two-fold increase of its current capacity.

The mill will produce a variety of long products of carbon, alloyed, high speed and stainless steel including thermo strengthened rebars. These products will be used in construction and engineering industries as well as in hardware production at the Izhstal facility itself.

Mr Vladimir Polin CEO of Mechel Management OOO said "The reconstruction of Mill 250 begins the large scale technical re equipment project at Izhstal. As the result of the modernization, the plant will be able to shut down obsolete open hearth production, reduce rolled product cost and achieve state of the art steel and rolled stock production levels ensuring output of international quality standard products. Installation of a continuous casting billet line is planned with direct billet delivery to the mills avoiding additional processing. Increase of the total electric arc furnace steel output to 500,000 tonnes annually is planned. Total investments in the modernization of Izhstal will amount to USD 140.0 million during 2007-2011."

Cleveland Cliff may make more acquisitions in Asia Pacific

Bloomberg last week reported that North America’s largest producer of iron ore pellets Cleveland Cliffs Inc might make more acquisitions in the Asia Pacific region as part of a plan to become a global mining company.

Mr Richard Mehan president of Cleveland Cliffs during an interview said that Cleveland is studying the purchase of producers of steel making ingredients in countries such as Australia and India. He added that “We are very keen to increase our exposure to iron ore, metallurgical and thermal coal and we want to spread our wings beyond that. We are trying to be a global mining house.”

Cleveland bought control of iron ore exporter Portman Ltd in 2005. It also agreed to buy US coal producer PinnOak Resources LLC for USD 450 million in June 2007. Cleveland Cliffs bought a USD 109 million stake in the Sonoma coal project at Queensland in Australia this year, which could produce between 3 million tonnes and 4 million tonnes of coal starting in 2008.

BlueScope Steel appoints Mr O’Malley as MD and CEO

The board of BlueScope Steel announced that Mr Paul O'Malley CFO would succeed Mr Kirby Adams as MD & CEO effective from November 1st 2007. As part of the transition to his new role Mr O'Malley will join the board of BlueScope Steel.

Born at Dubbo in NSW, Mr O'Malley, 43 years old, holds a Bachelor of Commerce and Master of Applied Finance. Mr O'Malley joined BlueScope Steel as CFO in December 2005 and in that role was responsible for leading the company's finance and IT functions including; mergers and acquisitions, treasury, tax, audit, and investor relations. Mr O'Malley was formerly the CEO of TXU Energy, a subsidiary of TXU Corp based at Dallas in Texas. Prior to this he worked in investment banking and consulting.

Mr Graham Kraehe chairman of BlueScope Steel said "Paul O'Malley is an experienced global executive who has demonstrated a strong track record of delivering results in both operating and finance roles. He will refine the strategies necessary to continue the Company's impressive business growth. He will further develop our markets and customer relationships while maintaining the world class manufacturing and safety performance that is a hallmark of BlueScope Steel. He is well qualified to lead BlueScope Steel to its next phase of growth and has already shown strong leadership since joining the company as CFO. Paul will maintain BlueScope Steel's focus on long term shareholder returns. The Company engaged in a rigorous succession planning process in which internal candidates were assessed and benchmarked externally against international executives. The Board is very pleased with the outcome we are announcing today."

Mr O'Malley said "I am delighted to be offered the chance to lead BlueScope Steel as it enters a new phase of growth. The Company has a world class reputation in safety, operational performance, and financial achievement. This is driven by the dedication and capability of its people. "It is an exciting time to be part of this terrific organization and I am looking forward to working with BlueScope Steel's 18,000 employees across the globe who make it all happen. I see BlueScope Steel as an Australian and global success story with the benefit of great diversity in its products, markets, geography and people.

Samuel Manu sells Energy Steel Products

Samuel Manu Tech Inc last week announced the sale of all of the assets and operations of its subsidiary, Energy Steel Products Inc for USD 25 million, subject to certain adjustments for working capital.

The acquirer, ESP Acquisition LLC, is owned by ESP management and Lone Star New Markets LP. The proceeds were received in cash on closing. They will be used to reduce bank indebtedness, further strengthening the company's financial position and increasing our available financing for further acquisitions.

Mr Mark C Samuel chairman & CEO of Samuel said that "While the Energy Steel Products business in the US has been generating a positive return to the company, its contribution to our long term strategic goals has become less certain. Energy Steel Products will benefit from the focus and opportunities provided by its new owner and we wish them much growth and success."

Mr Arthur Hollingsworth managing partner of ESP aid that "Lone Star is excited to welcome Energy Steel Products to its portfolio. The quality of ESP's experienced management team, the long tenure and excellent performance of the work force, and the positive profit history made ESP very attractive."

Samuel Manu Tech Inc is a leading North American industrial products and technology company producing a wide range of steel, plastic and related industrial products and services from locations in Canada, the United States and Mexico.

Sumitomo Q1 profit fall by 3.2% YoY

Japan’s Sumitomo Corporation announced that its April to June 2007 quarter profit fell by 3.2% YoY partly because of losses from metals transactions. Sumitomo said in a statement that it’s April to June 2007, net income declined to JPY 51.4 billion (USD 434 million) from JPY 53.1 billion April to June 2006. Sales rose by 11% to JPY 2.75 trillion.

Mr Noriaki Shimazaki executive VP of Sumitomo said that Sumitomo recorded a JPY 14 billion appraisal losses from trading silver, zinc and lead derivatives as it sought to hedge risks from an investment in a mining project in Bolivia.

In 2006, Sumitomo acquired a 35% stake in the San Cristobal mine from Apex Silver Mines Ltd for USD 224 million in cash and a portion of future metal production. Mr Shimazaki at a media briefing in Tokyo said that production from the project is set to begin in the third quarter starting from October 2007. San Cristobal has about 470 million ounces of silver, 8 billion pounds of zinc and 3 billion pounds of lead contained in 231 million tons of reserves, Apex Silver has estimated.

Nippon Steel and Sumkin to pay more for ferrochrome

It is reported that Nippon Steel & Sumikin Stainless Steel have agreed to a 20% price increase for ferrochrome shipments for July to September 2007 quarter by South Africa's Samancor Chrome, setting the benchmark price for east Asia.

Mr Manabu Tani a spokesperson for Japan's largest stainless steel producer said that the company agreed to pay a record USD 1.08 a pound for shipments in July to September 2007 quarter up from USD 0.90 a pound in April to June 2007 quarter.

Mr Hiroyuki Suzuki an analyst at Mizuho Investors Securities said that “While global stainless steel demand is growing there is lingering concern about oversupply so higher ferrochrome prices may decrease stainless steel demand.''

The price sets a benchmark for shipments of the alloy to East Asia from South Africa, which makes 40% of the world's ferrochrome. The increase follows an 8% gain in the January to March 2007 quarter as price rises for ferrochrome, used in stainless steel, are fuelled by demand from China and India's decision to tax chrome exports.

NUM agrees Chamber of Mines pay deal

Reuters last week reported that South Africa’s biggest coal miners union, the National Union of Mineworkers will recommend its members accept a revised pay offer, while two smaller unions declared a deadlock in the wage talks.

South Africa’s Chamber of Mines said in a statement said that NUM agreed to accept pay increases of between 7.5% and 10% and improved housing allowances. But the Solidarity Union and the United Association of South Africa rejected the offer and will have to give employers 48 hours notice if they intend to strike.

The NUM represents workers at seven coal producers in South Africa, including Xstrata Plc and Anglo American Plc.

CSC production update for June 2007

Taiwanese China Steel Corporation has given a production update for the month of June 2007 and for January to June 2007

Volume in tones

Amount in million TWD
June 2007 income includes long term investment income of TWD 1,437million

Mitsubishi Q1 profit down by 7.3% YoY

Japan’s biggest trading house Mitsubishi Corporation reported a 7.3% YoY fall in quarterly profit hit by lower coking coal prices and kept its forecast for profit to fall for the first time in 5 years.

Mitsubishi said its group net profit came to JPY 115.3 billion (USD 969 million) in the April to June 2007 quarter compared to a JPY 124.43 billion profit in April to June 2006 quarter.

Mitsubishi reiterated its forecast for net profit to fall by 4% to JPY 400 billion in the year to March 2008.

North American Galvanizing & Coatings reports Q2 and H1 results

North American Galvanizing & Coatings Inc has announced record earnings and sales for January to June 2007 and the second quarter of 2007.

North American Galvanizing & Coatings Inc net earnings for January to June 2007 were USD 4.5 million compared with USD 2.4 million in January to June 2006 which represents an 80% increase in earnings per share. Consolidated net earnings for the 2007 second quarter were USD 2.2 million compared with USD 1.4 million in the second quarter of 2006.

Mr Ronald J Evans president & CEO of North American Galvanizing & Coatings Inc commenting on the results of the second quarter 2007 that "The strength of the US economy continues to support hot dip galvanizing demand at above historical levels. Strong capital goods spending, including electrical distribution and highway projects which specify galvanized product has resulted in improved industry utilization rates."

North American Galvanizing is a leading provider of hot dip galvanizing and coatings for corrosion protection of fabricated steel products.

Nippon Metal to cut SS sheet production by 30%

Metals Insider reported that Japan’s Nippon Metal Industry would cut production of stainless steel sheet by 30% from August 2007. The cut will be achieved by reducing operations during daytime to save on power bills.

Nippon Metal has noted a sharp drying up in new orders from distributors as they hold back from committing to the market in expectation of lower nickel prices and therefore lower stainless prices.

Kiu Hung to Buy Coal Mines in China for HKD 630 million

Bloomberg reported that Hong Kong based toy maker Kiu Hung International Holdings Limited plans to pay HKD 630 million (USD 80 million) in cash and new shares for its second acquisition of coalmines in China this year.

Kiu Heng said in a Hong Kong stock exchange filing that it will buy exploration rights for a mine in Inner Mongolia with an estimated of 300 million tons of coal reserves and mining rights for a second facility in the same province.

Mr Feng Zhang analyst for JPMorgan Chase & Co said in a report last month that the toymaker is entering mining as China's economic growth drives demand for coal used to generate about 78% of the nation's electricity. Coal prices for Chinese power stations may climb 6% to CNY 458 (USD 61) in 2008.

Metinvest commissions new BF at Yenakiyevo

Ukranian Journal reported that Ukrainian mining and steel group Metinvest Holding has commissioned a new USD 140 million blast furnace at one of its facilities in Yenakiyevo as a part of a USD 1 billion modernization program.

The new furnace will help the company to reduce consumption of natural gas, underscoring the modernization that has taken place across the industry following the almost tripling of gas prices over the past two years.

Ukraine to boost coal output over the next several months

Ukranian Journal reported that Ukraine would add more coal producing capacity within the next several months to reverse a continued decline in the country’s coal output.

Mr Serhiy Tulub coal industry minister of Ukraine said that the measures include launching 22 new coal mining faces in August to bring a total number of new coal producing faces at the country’s coal mines to 165 in 2007.

An’gang and CMCC to further strengthen ties

It is reported that Mr Xiang Mingwu president and Mr Xiao Bai GM of WISDRI Engineering and Research Company Ltd visited An’gang on July 25th 2007 and had a talk with Mr Zhang Xiaogang GM and Mr Wang Mingren deputy GM of An’gang. Both sides confirmed that they would further strengthen exchange and cooperation, therefore together boost the development of metallurgy industry in China.

Mr Zhang Xiaogang appreciated WISDRI’s cooperation during the past years, and introduced the currant situation and future strategic development plan of An’gang. Recent years, An’gang has had a quick development and constructed a 11 million tonnes per year high grade steel base in the east of the metallurgic plant and a 5 million tonnes high quality sheet and plate base in the west which has a high ratio of domestic manufactured equipments and a high level of technology.

Mr Xiang Ming greeted the progress made by An’gang and acknowledged its support to DISDRI’s development especially on cold rolling technology. He said. And he expects to have more cooperation with An’gang and therefore expedite the development of metallurgic industry in China.

Now the company is boosting the construction of Bayuquan iron and steel project. An’gang intends to boost the strategic distribution construction in domestic and abroad, basing on the Northeast market, and circling on market and resources. Therefore, there is an expanding space for both companies’ cooperation.

SA union Solidarity gets approval for coal strike

Reuters reported that South African union Solidarity has received a certificate of approval for the launch of a coal strike after workers rejected coal producers wage offer of an 8% increase. Solidarity must give employers 48 hours notice before its members can go on strike.

The union said in a statement that it sought approval to strike from labor mediators after judging an 8% wage increase offer by employers in the industry unacceptable.

Soldarity and South Africa's biggest mining union National Union of Mineworkers declared a dispute the first legal step towards going on strike against coal producers last month after wage talks hit deadlock. The move comes amid a wave of strikes in South Africa's oil refining, chemical, timber, metal, engineering and public sectors.

Massey Energy reports surges in Q2 net

US coal major Massey Energy announced that its April to June 2007 quarter net income of USD 34.9 million up by 990% YoY as compared to USD 3.2 million in April to June 2007 quarter. The strong earnings were generated on produced coal revenue of USD 516.2 million which increased 5%YoY compared to the same period of 2006 as a result of higher prices on new supply contracts that took effect in 2007 and improvement in the overall product mix. EBITDA in April to June 2007 quarter increased by 55%YoY to USD 120.3 million compared to USD 77.5 million in April to June 2006 quarter.

Massey's operating cash margin of USD 8.72 per tonnes represented an increase of 36%YoY in April to June 2007 quarter compared to the operating cash margin of USD 6.42 per tonnes reported April to June 2006. The increase was driven largely by improved pricing and product mix.

Sales of metallurgical coal were particularly strong with 11% increase in tonnes sold and a 10% increase in revenue per tonnes compared to the second quarter of 2006. Greater stability in the workforce also contributed to the improved operating cash margin. Voluntary employee turnover rates among Massey members have decreased to 15% in the H1 of 2007 compared to 26% in the H1 of 2006.

Highlight of second quarter 2007

The results for the second quarter of 2007 include:
1. USD 10.3 million pre tax gain on a trade of coal reserves which included a cash receipt of USD 1 million (net after-tax earnings impact of USD 0.08 per share);
2. USD 6.3 million pre tax increases in various litigation reserves (net after-tax earnings impact of (USD 0.07) per share).

Mr Don L Blankenship chairman and CEO of Massey's said "With metallurgical coal accounting for nearly 31% of our revenue, the increasing global demand for high quality metallurgical coal represents a tremendous opportunity for us. Our 2007 operating performance has increased the Company's cash balance by USD 83 million during the H1 of 2007. We believe our strong cash flow will provide us with significant opportunities going forward including acquisitions and additional investments in our current operations investments that will reduce costs and increase production as the market improves."

Inprom plans IPO in October

Reuters reported that Steel stockholder Inprom intends to raise USD 70 million to USD 90 million floating 30% of its shares in Moscow by the end of October 2007 and plans a second listing in London within 2 years.

Mr Igor Konovalov general director of Inprom said that 25% of the shares to be listed on the RTS and MICEX exchanges would be new shares following an additional issue, while 5% would be existing shares. He added that “I will retain a majority stake after the IPO. I do not have any plans to quit the business. He also added that Inprom would begin its IPO road show of several European cities at the end of September or the beginning of October 2007. Investment bank Trust is organizing the float.”

Mr Konovalov said the investment program would be revised in August 2007. He added that Inprom plans to raise metal sales to 900,000 tonnes worth about USD 600 million in 2007, from 706,000 tonnes worth USD 426 million in 2006. Sales could pass 1 million tonnes in 2008. Inprom operates 25 service centers and intends to increase this number to 42 by 2012, spreading into large Siberian cities such as Omsk, Tyumen, Novosibirsk, Krasnoyarsk and Irkutsk.

Mr Konovalov said it cost about USD 10 million to open a new service center. After 2012 we will examine regions in neighboring states Kazakhstan, Belarus and Ukraine.

Inprom, which operates a network of steel service centers in the European part of Russia, will use the proceeds to invest in new service centers and to purchase and modernize equipment. The company had planned to invest RUB 4.2 billion (USD 165.4 million) from now to 2011.

Lennard Shelf zinc mine reaches commercial production

Metal insider reported that re opened Lennard Shelf zinc lead mine in Western Australia has reached commercial production levels in the second quarter of 2007.

According to Teck Cominco, which owns the mine in a JV with Xstrata, Lennard Shelf zinc leads mine production reached 11,200 tonnes of contained zinc and 3,000 tonnes of contained lead in the second quarter up from 1,700 tonnes and 700 tonnes respectively in the first quarter.

Teck Cominco said mill production is expected to increase to treat stockpiled ore and grades are expected to improve as more working areas are developed in the higher grade areas of the mine. Its guidance for 2007 zinc production is 58,000 tonnes of contained metal in concentrate.

PT Koba Tin to recover mining operations soon

YIEH reported that Indonesian PT Koba Tin will recover mining operation in Bangka Island and it will carry into effect in August 2007.

PT Koba Tin had suspended to buy ore six months ago because they are accused with obtaining illegal concentrates from mines outside.

The tin production capacity of PT Koba Tin is 400 tonnes per month.

Sinosteel starts expansion of Jiguanshan mine in Inner Mongolia

Interfax China reported that Beijing based Sinosteel Group, one of the largest state owned iron ore and steel product traders in China, recently began an expansion project at its newly acquired Jiguanshan molybdenum mine in Inner Mongolia.

MAUSER expands operations in Turkey and Brazil

The MAUSER Group one of the world’s leading companies in industrial packaging has expanded its steel drum and reconditioning business in Brazil and Turkey shortly after the acquisition of the MAUSER Group by Dubai International Capital LLC. MAUSER acquired majority interests in Tamlimp in Brazil and Metplast in Turkey.

Tamlimp a newly founded company which has acquired the business of Tamfust a well established supplier of new and reconditioned steel drums in the Brazilian market is the third move after the purchase of the industrial packaging business of Metalúrgica Barra do Pirai and of a 51% interest in Tankpool do Brasil. MAUSER acquired 75% of the shares in Tamlimp.

In Turkey, the acquisition of 95% in Metplast was completed in July 2007. Metplast offers reconditioning services, mainly for steel drums. With this additional business, we can complement the industrial packaging solutions provided by MEMSAN MAUSER, the long standing new steel drum operation of MAUSER, for our customers in the country.

MAUSER AG is a leading producer of industrial packaging with approx. 3,700 employees and revenues of roughly EUR 1 billion expected for 2007. Its largest business is plastic packaging, followed by metal and IBC packaging, reconditioning services and machinery for packaging production. It currently operates in more than 50 locations in 13 countries across Europe, North America, Latin America and Asia.

Wits Basin completes acquisition of China Global Mining Resources

Wits Basin Precious Minerals Inc has announced that it has completed its acquisition of China Global Mining Resources a British Virgin Islands corporation. China Global Mining Resources owns rights in certain acquisition agreements relating to gold, nickel and iron ore mining properties in the People’s Republic of China.

Wits Basin has loaned a total of approximately USD 8 million to CGMR, which has been used to invest in the above mentioned PRC projects. Currently contemplated project financing consists of a USD 15 million remaining balance on the Company’s discretionary line of credit from China Gold, LLC based in Kansas City. While the Company has received proposals from other sources for additional project financing, nothing has been formally agreed upon and any such financing remains subject to negotiation and execution of definitive documentation and other customary closing conditions.

The producing gold property, known as the Tongguan County Taizhou Gold Mining Company Limited is located in the Shaanxi province. The nickel property is the Xing Wang Nickel Mine located in the Qinghai province. The Lao Wan Iron Deposit is located in the Hubei province. The operating Xiaonanshan iron ore mine is located in Maanshan in the Anhui province. And has been approved by the Anhui government to operate a wholly owned foreign enterprise commonly known as a “WOFE” which is necessary in order to operate in the PRC.

These potential funding sources include several domestic and international hedge funds and banks. The required due diligence is in an advanced stage and the Company believes it will be completed in the near term. The Company continues to pursue several additional avenues of obtaining capital including JV equity financing, direct investment and other partnerships. The Company is optimistic that it will secure adequate funding to complete each of these projects.

Wits Basin Precious Minerals Inc is a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over the Counter Bulletin Board under the symbol.