Indian iron ore spot prices touch USD 175 CIF China

The CCCMC has announced that the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week.

The change is with respect to prices posted on October 8th 2007.

CCCMC reference prices movement during January to October is as under

In USD
Change is MoM

Considering, the average prices, the derived sea freight and MoM change is indicated below

In USD

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters are the largest trading association in China.

SAIL RSP registers day’s record production in BF shops

It is reported that Steel Authority of India Limited’s Rourkela Steel Plant has registered a record production of 7,282 tonnes of hot metal in its blast furnace on October 11th 2007. The blast furnace unit also achieved the best shift record since inception in 'c' shift breaking the previous record of 2,479 tonnes, the highest for any furnace on March 28th 2006.

RSP’s BF 4 has registered a record production of 2,637 tonnes, the highest for any furnace on a single day since its inception surpassing the figure of 2,611 tonnes which it had notched up on October 3rd 2007. As per report BF 3 produced 1,639 tonnes which was its highest production since its inception.

Mr BN Singh MD of RSP said "The unit would achieve the challenging targets it has set for itself."

SAIL has approved expansion and modernization of the Rourkela facility, which when completed would take the plant's crude metal capacity to 4.2 million tons per annum from the present 2.9 million tonnes per annum.

MECON suggests Torpa for ArcelorMittal steel plant in Jharkhand

It is reported that the Torpa Kamdara zone, 65 kilometer from here, has been recommended for ArcelorMittal’s INR 40,000 crore steel projects in Jharkhand. As per reports, out of the two shortlisted sites, Torpa Kamdara appears to be the more favourable site for the project.

As per report, MECON Limited has found Torpa Kamdara location as conducive for the company to set up its 12 million tonnes steel plant. The report prepared by MECON has been submitted to the company. While 50% of the land for the project falls under Torpa area of the newly created Khunti district, the rest lies in Kamdara area in Gumla district.

MECON has said there is enough land in Torpa Kamdara area to meet the requirement of the company. Similarly, the availability of water would not be a problem for the steel major. It is about 124 kilometers from either coal or iron ore source and has the advantage of being located close to railway tracks.

As per report, out of the 18,000 acres the company has identified in the area, it would actually require around 12,000 to 13,000 acres, said another source and most of the land is owned by individuals and the population in the area was very thin. Also, there was not much agricultural activity taking place nor was any portion of it forest land, the sources said. A portion of it is also government land, which is the easiest to transfer.

Hatch Associates, whom ArcelorMittal had appointed to do a detailed study of all the short listed sites, has already sent its reports to the company.

BOC India to set up ASUs at SAIL RSP and ISP

It is reported that producer of industrial gases BOC India Ltd project engineering division has won two contracts worth INR 318 crore from Steel Authority of India Limited for setting up of two air separation units at SAIL’s Rourkela Steel Plant and IISCO Steel Plant. It said these contracts are to be executed over a period of 2 to 3 years.

BOC India has two divisions namely the gases division and the project engineering division. The gases division contributes about 90% of its turnover. The gases & related products comprise two main lines of businesses process gas solutions and industrial & special products.

BOC Group is one of the largest producers of industrial gases in the world and one of the most successful and leading multinational companies of the UK. It has presence in over 50 countries employing over 46000 people.

Orissa CM warns that POSCO opposition to slow growth

PTI citing Mr Naveen Patnaik CM of Orissa as saying that cautioning anti POSCO activists against taking law into their hands, such opposition to the project could cause serious damage to the state's growth. He added that "No one including anti project activists should take law into their hands. It will affect the state's interests."

Mr Patnaik's said villagers in the proposed plant site near Paradip did not have any reason to complain because the state government had prepared one of the country's 'best' resettlement and rehabilitation schemes for the affected people. He said the people who would lose their land and house for any project would be adequately rehabilitated and resettled besides providing them employment in the project.

Mr Patnaik's remarks came in the wake of Saturday's hostage episode involving four executives of South Korean steel major POSCO which proposed to set up a 12 million tonnes per annum steel plant near Paradip in Jagatsinghpur district.

TATA Tiscon creating a knowledge base for architects

ET reported that TATA Steel has decided to create a knowledge sharing platform among architects and designers. The countrywide initiative is being taken up through one of its flagship brands TATA Tiscon.

Mr Neeraj Kant head of retail marketing of long products of TATA Steel told ET that “Our objective is primarily aimed at raising the collective competence of the architect and designer fraternity. We hope to do so by organizing a series of seminars and workshops in a bid to expose them to global best practices in the field.”

These workshops will be held across 70 locations. Mr Kant added that the first of these workshops titled D.E.S.I.G.N was kicked off in Delhi recently. Recently the second such event in the series was held in Kolkata with renowned architect, Mr Hafeeez Contractor, who addressed a gathering of architects and designers with the basic objective to share the newest of ideas and concepts on how to use space effectively and meet the increasing need of consumers.

TATA Tiscon is the flagship brand of TMT bars in construction grade steel.

WB CM lays foundation stone for Jai Balaji steel plant in Purulia

BS reported that Mr Buddhadev Bhattacharjee CM of West Bengal, recently laid the foundation stone of the 5 million tonne integrated steel plant of Jai Balaji Industries in Purulia district.

Jai Balaji Group, a leading producer of steel in West Bengal will be investing INR 16,000 crore to build the steel plant a captive power complex of 1,215 MW and a 3 million tonne cement plant.

Bombardier to supply signaling to DMRC

It is reported that Bombardier Transportation has received an order worth INR 170 crore contracts from the Delhi Metro Rail Corporation for rail signaling equipment for Delhi Metro Rail Project.

As per report the contract involves the designing, manufacturing, supplying, installation, testing and commissioning of 'Bombardier CITYFLO 350' train control and signaling systems for two new sections of lines aggregating to 37 kilometer in length for the project.

10 qualify for Dhopave power project

It is reported that 10 bidders have qualified for Maharashtra State Power Generation's 1,600 MW coal based power project at Dhopave near Guhagar Dabhol in Rantnagiri district of Maharashtra.

As per report, the list of qualified bidders include
1. Torrent Power
2. TATA Power
3. Essar Power
4. GMR-ITD consortium
5. China Light & Power
6. AES
7. GSPC
8. JSW Energy
9. Reliance Energy
10. Lanco Kaniksha Steel consortium

The letter of intent is likely to be awarded by April 2008. It is learnt that the process of land acquisition of 500 ha has already begun and the application has been made to the Ministry of Environment & Forests for according environment clearance for the project.

PGCIL plans INR 16,500 crore investments

It is reported that Power Grid Corporation of India Limited is planning equity investments to the tune of INR 16,500 crore over the next 5 years to fund a slew of transmission projects.

A government official said that “During the 11th plan, the government is aiming to achieve a national power grid with inter regional power transfer capacity of over 37,000 MW, which would include PGCIL’s transmission system and a handful of projects involving private players.”

PGCIL’s recently concluded public float mobilized around INR 3,000 crore. It would invest about INR 55,000 crore on transmission infrastructure during the 5 year period, including in 45 projects that it is currently implementing. Of the total investments, around 30% of the proposed capital expenditure would be funded by equity, while the remaining 70% by debt financing.

PGCIL currently manages the national grid with inter regional capacity of 14,100 MW, which is proposed to be enhanced to over 37,000 MW by the year 2012. It owns and operates 61,875 circuit kilometers of electrical transmission lines and 106 electrical substations. During 2006-07, the utility transmitted approximately 298 billion units of electricity, representing approximately 45% of all the power generated in India.

PGCIL, besides eyeing the domestic market opportunities, has bid to build and maintain transmission lines in the Philippines. It is also eyeing bidding opportunities in Afghanistan and other countries.

Vizag Seaport makes history at Vizag Port

It is reported that Vizag Seaports Pvt Ltd operated bulk terminal at the inner harbor of Visakhapatnam Port created history last week by simultaneously berthing two Panamax vessels.

The vessels, MV Trans Atlantic and MV Cemtex Orient were berthed at EQ 8 and EQ 9 respectively.

As per report this is the first time in its 74 year history that the Vizag Port’s inner harbor could achieve such a feat.

Lanco Hydro plans 76 MW hydel power project in Uttarakhand

It is reported that Lanco Hydro Energy is setting up a 76 MW hydel based power project on the banks of the river Mandakini in Rudraprayag district of Uttarakhand with an investment of INR.484 crore.

The detailed project report of the proposed project has already been submitted to the government and the company is awaiting clearance from the Union Ministry of Environment & Forests.

For the construction of the project, a 9.4 Kilometer tunnel is also being built as its power house will be underground. The project which is a run of the river is likely to be completed by 2011.

JSPL appoints Mr RV Shahi as additional director

Jindal Steel & Power Limited has informed BSE that its board of directors has appointed Mr Ram Vinay Shahi as additional director (independent) and member of the audit committee of directors with effect from October 15th 2007.

Jindal Drilling bags INR 660 crore contract from ONGC

It is reported that Jindal Drilling & Industries Limited has received a contract valued at INR 660 crore from ONGC for charter hire of newly built jackup rig. The contract is at operating day rate of USD 159,660 per day for 3 years on firm basis.

The said rig is under construction at Keppel Fels Shipyard at Singapore and is expected to be delivered in September 2008. It will be deployed for operation immediately under this contract.

The order book of Jindal Drilling stands at INR 2,500 crore.

Gail India wins Infraline Jury Award 2007

GAIL India Limited announced it has won Energy Excellence Awards for the year 2007. It has received the Infraline Jury Award for the development of natural gas sector in India.

Dr UD Choubey CMD of GAIL received the award from Mr Sushil Kumar Shinde union minister of power in New Delhi on October 12th 2007. GAIL India has also received the Methane Pioneer Award in natural gas sector.

The eminent jury selecting the winners of these awards consisted of Mr BK Chaturvedi member of Planning Commission and former cabinet secretary, Dr Bakul Dholakia former director of IIM Ahmedabad, Mr Deepak Parekh chairman of HDFC and IDFC, Mr RV Shahi former secretary, Mr Suresh Mathur former CMD of Petronet LNG Ltd, Mr TL Shankar advisor of energy, administrative staff college and Mr Vineet Nayyar vice CMD of Mahindra Infotech.

Infraline Energy Excellence Awards have been initiated in recognition of excellence in promoting capital efficiencies, executing large size projects, leadership, innovation, skill development, regulation and contribution to the society in oil and gas, power, coal and renewable energy sectors. These awards are given both at corporate and individual levels.

Iron ore benchmark price hike inevitable – Mr Agnelli

Bloomberg quoted Mr Roger Agnelli CEO of Cia Vale do Rio Doce's as saying that Iron ore prices charged to steelmakers will have to rise in response to surging demand in the spot market. Mr Agnelli said “There are a lot of distortions in the market. The only way to resolve this is a rise in price.''

Mr Agnelli said Vale may sell more iron ore in the spot market if it doesn't get a big enough price increase. Mr Agnelli said “We do not want to increase our spot market sales. It is in everyone's interest to set a benchmark contract price.''

Mr Jose Carlos Martins head of iron ore mining of CVRD said that CVRD, BHP Billiton Ltd and Rio Tinto Group, the three biggest iron ore suppliers, expect to begin talks with Chinese steelmakers next month to set world contract prices for 2008. Mr Martins said Chinese steelmakers and Vale are far apart on how much contract prices will have to rise.

China's spot market prices are more than double Vale's contract prices of about USD 45 a tonnes. China pays spot prices on imports of about 300 million tonnes a year, an unsustainable amount.

CVRD to build Coal as a new business

Companhia Vale do Rio Doce recently announced that its board of directors has approved an investment budget of USD 11 billion for 2008, out of which 3.5% or USD 0.390 billion is for coal business.

CVRD said that it would continue its efforts in 2008 to grow its coal business organically as well as in the minority holdings it already owns in Chinese coal producers.

The details of various projects in this area is as under

Moatize
2008 – USD 97 million
Total – USD 1.398 million
This project is in Mozambique and will have a production capacity of 11 million tonnes, of which 8.5 million tonnes of metallurgic coal and 2.5 million tonnes of thermal coal. CVRD has already obtained all the licenses it needs from the Mozambique government for the construction of the Moatize mine. Expected to be completed in 1Q11, but still subject to approval by the Board of Directors.

Coal Carborough Downs
2008 – USD 96 million
Total – USD 303 million
Development of the Carborough Downs coal mine, in Queensland, Australia. At present the mine is in the ramp up process, working up production until reaching a capacity of 4 million tonnes per year. Operation at full capacity is scheduled for the second quarter of 2009.

CVRD acquired the assets of AMCI Holdings Australia Pty in Australia, with nominal production capacity of 11 million tonnes per annum in 2007.

Panamax chartering rates reach record levels

It is reported that iron ore and coal freight rates may extend gains led by demand for Panamax ships.

According to the London based Baltic Exchange the Baltic Panamax Index, a measure of rates on four routes rose by 3.2% to 10,913 on October 12th 2007, which translates the cost of chartering a Panamax to an all time high of USD 88,379 on average.

According to the Baltic Exchange the Baltic Dry Index, an overall measure of commodity shipping costs on different routes and ship sizes jumped 1.7% to 10,695 on October 12th 2007 a fifth day of record. The measure broke the 10,000 mark for the first time on October 10th 2007.

London based Galbraith's Ltd said in its October 12th 2007 report “We seem to have just burst through the ceiling as the rates continue to break records on a daily basis. Panamax ships are being taken on long and short periods and re-let almost immediately, at much higher levels in most cases.

Mr Ryu Je Hyun a Hong Kong based analyst at Mirae Asset Securities Co said that “The market sentiment is very high. The Baltic Dry Index may go beyond 12,000 by the first quarter of 2008.'' He added that the move by China to slow down the world's fastest-growing major economy won't have an immediate impact on freight rates and may be countered by India's rising demand for coal and raw materials.

Demand for iron ore, the single biggest commodity moved by sea, has been rising ahead of an expected price increase next year. Contract Talks mining companies including BHP Billiton Ltd begin annual contract talks with customers this month on the price of ore shipments starting April 2007. Cia Vale do Rio Doce, Rio Tinto Group and BHP Billiton may raise prices by 30% next year.

ArcelorMittal seals deal for further 25% stake in Polish mills

Polish Press Agency reported that ArcelorMittal sealed a deal to buy an additional 25% in its four Polish steel mills from the treasury ministry, valuing the stake at PLN 436.4 million.

ArcelorMittal's local unit Mittal Steel Poland bought a 70% stake in four mills in the south of Poland in 2004 and agreed additional terms with the treasury for the additional 25% stake earlier this year.

Palmary waives all conditions for ConsMin offer

Bloomberg reported that Palmary Enterprises Ltd controlled by Ukrainian billionaire Mr Gennadiy Bogolyubov waived all conditions for its AUD 1.03 billion bid for Australia's Consolidated Minerals Limited.

Palmary said in a statement to the Australian Stock Exchange that the bidder's statement will be available soon. The statement said “Palmary's AUD 4.50 cash offer has been recommended by the consolidated board of directors in the absence of a superior offer.''

Palmary recently asked the Australian Takeovers Panel to declare Pallinghurst's bid unacceptable and labeled it as unfair and anti competitive. Pallinghurst has matched Palmary's offer and said it can match any new cash offer made by Palmary until January.

Palmary Enterprises Ltd said that “Pallinghurst considers that this challenge is without merit and it intends to vigorously defend it. Shareholders are encouraged to accept the Pallinghurst offer as soon as possible to maximize pressure on Palmary to lift its bid.''

Palmary Enterprises is battling Pallinghurst Resources Australia Ltd chaired by Mr Brian Gilbertson for control of 10% of the world's high grade manganese, used to make steel. The contest has doubled Consolidated's market value since the first bid on February 23rd 2007.

US steel demand and prices to further weaken in 2008

According to speakers at an industry meeting this past weekend who don't see an increase in purchasing said the US steel industry is going to encounter another year of tough sledding for producers and distributors.

According to Ms Deborah Allen Hewitt president of Rutledge Research economic research firm in Williamsburg, while speaking at Association of Steel Distributors’ 2007 Fall Meeting in Baltimore recently, said that “It is likely that 2008 will show slower real economic growth than 2007.”

She said that with low growth forecasts for the US economy in 2008, consumer spending in 2008 is likely to be the lowest since 1981, causing a weakening of such key industrial steel using markets as automotive, housing and appliances. She projected that the motor vehicle sales of below 16 million units will keep regional assembly around 15 million cars and light trucks.

Mr Tom Stundza, executive editor of Purchasing agreed in his presentation that “US and Canadian steel demand will vary by product in the coming months, but generally will be lower again in 2008.”

Mr Stundza projected that 2008 will be the second year in a row with a 6% decline in major appliance shipments and no growth in machinery manufacture.

Mr Stundza said steelmakers may face a heavy increase in steelmaking costs next year from expected increases in scrap and iron ore costs, which will force them to seek higher steel prices to customers in 2008. He added that this is a market action that buyers won’t be inclined to just roll over and accept

An associate professor of economics at the Mason School of Business at the College of William & Mary also said that foreign made steel will be cheaper next year because of excessive production despite moderating demand. She said “Global steel prices will come off their cyclical highs in 2008 and that will have a price depressing impact in the US market.”

ThyssenKrupp orders HSM and CR complex equipments for Alabama plant

ThyssenKrupp Steel AG has awarded SMS Demag AG the order for a hot strip mill and a cold rolling complex for its proposed steel plant at Alabama in US. The two parties agreed on confidentiality regarding the value of the order. Erection of the plants in Alabama will start in early 2008 and completion is scheduled for March 2010.

The hot strip mill covers the entire production range for all grades from carbon to stainless steel and is designed for an annual production of 5.4 million tonnes.

The cold rolling complex consists of a coupled pickling and tandem mill capable of producing 2.5 million tonnes of cold strip per year plus a continuous pickling line and a skin passing mill.

STAL to construct SS strip processing plant in Hebei

YIEH reported that Shanghai STAL Precision Stainless Steel Co has announced to start a new precision stainless processing and sales center in Langfang of north Hebei province.

The current STAL’s annual capacity of stainless precision strip production is about 20,000 tonnes. Langfang STAL Precision Stainless Steel Co will be expected to process about 4,000 tons of stainless steel made from those plants.

STAL will spend CNY 20 million to establish this new facility and expects to commission in October 2007. It is believed to help STAL’s emergence of presence in the North China market.

Shanghai STAL is a JV of US based Allegheny Ludlum Co and Baoshan Iron & Steel Co.

Canada finds Chinese origin OCTG harming domestic market

The Canadian International Trade Tribunal determined on October 12th 2007 that there is evidence that discloses a reasonable indication that alleged dumping and subsidizing of seamless carbon or alloy steel oil and gas well casing, originating in or exported from China have caused injury to Canadian industry.

This preliminary injury inquiry is pursuant to the notification, on August 13, 2007, that the Canada Border Services Agency had initiated an investigation into the alleged injurious dumping and subsidizing of the above-mentioned goods.

Products involved are under HS Codes of 7304290011, 7304290019, 7304290021 and 7304290029.

(Sourced from MySteel.net)

Bekaert ends takeover talks with ZAO Uralkord

After months of negotiation, Bekaert announced that it has withdrawn from talks with ZAO Uralkord on a possible takeover.

The release said that “In the course of the difficult and protracted negotiations, it became clear that no agreement could be reached with the current shareholders of ZAO Uralkord that would meet Bekaert’s criteria for pursuing its strategy of sustainable profitable growth in Russia.”

The release added that “Determined to advance its existing position in Russia, Bekaert now considers further options to achieve this goal. The company has already built up a customer base in Russia for steel cord products for tire reinforcement, steel fibers for concrete reinforcement and other specialized wire products, which are currently supplied to Russia from Bekaert plants in Central Europe.”

ZAO Uralkord, located in Magnitogorsk produces steel cord products for tire reinforcement for the Russian market.

Bekaert headquartered in Belgium has two core competences advanced metal transformation and advanced materials and coatings.

IISI auto group launches new website WorldAutoSteel

WorldAutoSteel, the automotive group of the International Iron and Steel Institute, announced the launch of its new website. The new www.worldautosteel.org is more user friendly than its predecessors and has a topic driven format.

The new website will be the key resource point for communications about greenhouse gas emissions, life cycle assessment and innovations in advanced high strength steel usage in automobiles. Updates and findings of WorldAutoSteel’s global research will also be published on the new site.

Ms Kathleen Hickey said that "WorldAutoSteel engages some of the best resources in the world to conduct important research to help automakers use steel more efficiently for improved safety, affordability and fuel efficiency. Our new website gives us the ability to rapidly communicate this research to those who need it, as well as provides a way for readers to receive regular notice of changes to our ever growing database of knowledge."

The site also features the new brand and name adopted by WorldAutoSteel in 2006. The group was previously known as IISI AutoCo.

US weekly crude steel production up by 3.3% YoY

American Iron & Steel Industries reported that in the week ending October 13th 2007 US’s raw steel production was 2,133,000 net tons while the capability utilization rate was 89.4 %. Production was 2,063,000 net tons in the week ending October 13th 2006 while the capability utilization then was 86.2 %. The current week production represents 3.3% YoY increase from the same period in 2006.

Production for the week ending October 13th 2007 is down by 0.1% from the previous week ending October 6th 2007 when production was 2,137,000 net tons and the rate of capability utilization was 90.1 %.

Adjusted YTD production through October 13th 2007 was 83,664,000 million net tons at a capability utilization rate of 85.8%. That is a 4.5% YoY decrease from the 87,682,000 million net tons during the same period 2006 when the capability utilization rate was 89.8%

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

Votorantim to pump USD 6.2 billion into metals business

BNamericas reported that Brazilian industrial conglomerate Grupo Votorantim plans to invest BRR 11.1 billion (USD 6.2 billion) in metals projects in the 2008 to 2012 period.

The report added that in total, the group expects to invest BRR 25.7 billion in its industrial operations between next year and 2012, which also includes disbursements in its energy, orange juice, cement and paper and pulp operations.

Investments in the metals area include a 1 million tonnes per year long steel plant in Rio de Janeiro state, a ferronickel and a nickel unit in Goiás state, a polymetallic project in Minas Gerais state in addition to a furnace at CBA's plant in São Paulo state's Alumínio city.

The release further added that "Among the company goals in the metals sector are leadership in the integrated aluminum market in South America and reaching the top position in zinc within the Americas."

Votorantim was founded in 1918 it controls Brazilian metals company Votorantim Metais and aluminum company CBA. Its net revenues in 2006, was BRR 29 billion with EBITDA in the period reaching BRR 8.10 billion.

China to publish energy standard for nonferrous industry

Mr Cao Baokui a senior official of China Nonferrous Metals Industry Association said that China’s National Development & Reform Commission has taken lead in setting down compulsory energy consumption standard of copper, lead, zinc and other 7 nonferrous metals, which will be published later in this year.

Mr Cao said that the standard will strictly control nonferrous metal industry. He said “Any enterprises that are not in line with the standard will be closed down. And these enterprises in line with the standard will be rewarded.”

Mr Cao added that during January to September 2007 output of nonferrous metal industry went up by 24%YoY. The industry's main business revenue and profits rose by 42% and 35% respectively. At the same time, the industry's energy consumption reached some 800 to 900 million standard coals, accounting for some 6% of the nation's total energy consumption.

(Sourced from Mysteel.net)

Shenhua coal output in September up by 18% YoY

It is reported that China's top coal producer, China Shenhua Energy boosted its commercial coal output in September 2007 by 18% YoY as compared to September 2006 monthly average, to 13.5 million tonnes.

Shenhua's coal sales totaled 18.9 million tonnes in September 2007 up by 32% from the 2006 monthly average. Of total sales, 1.9 million tonnes were exports, down by 5% from the 2006 monthly average.

It gave the following details of its September operations.

VSMPO Avisma tube plant boosts output 80% in 9 months

Interfax reported that VSMPO Avisma Tube Plant, a division of Russian titanium giant VSMPO-Avisma, during January to September 2007 period increased production by 80%YoY.

The plant produced 218.8 tonnes of titanium tube products, including 177.7 tonnes of seamless, cold deformed tubes and 41.5 tonnes of seamless, hot deformed tubes.

Lloyd Register certified the company's Grade 2 titanium alloy tubes in the third quarter. In addition, VSMPO Avisma Tube Plant was certified by Achilles as a supplier for offshore oil production.

Ferrowest signs MoU with Geraldton Port Authority

Belmot based Ferrowest Ltd announced that it will work with the Geraldton Port Authority in planning for the receipt, storage, loading and dispatch of merchant pig iron at its planned Yalgoo Iron Project.

Under the terms of the MoU Ferrowest and the GPA have agreed to work together to plan for the receipt, storage, ship loading and dispatch of the merchant pig iron that is proposed to be produced by the Project. The MoU contemplates exporting the high value, low volume MPI in 42,000 tonne ship loads once a month.

Geraldton Port is ideal for the shipment of MPI and is Ferrowest's preferred option regardless of the future development of the proposed Oakajee deep water port.

The GPA and Ferrowest will conduct joint investigations and planning into the proposed range of port services related to shipping of the Ferrowest MPI and the MOU contemplates this leading to the negotiation of a formal contract at some time in the future.

Voestalpine places EUR 1 billion hybrid bonds

Austrian steel conglomerate voestalpine AG announced that it successfully launched its EUR 1 billion hybrid bond issue at an issue price of 99.465%.

voestalpine in a release said that the subordinated hybrid bond bears a coupon of 7.125% for the first seven years upon issuance and 3 month Euribor plus 5.05%, including a step up of 2.50, thereafter.

The quality of the final order book exceeded EUR 3 billion and the book building procedure was terminated early.

POSCO starts work on USD 131 million fuel cell plant

Reuters reported that POSCO has begun construction of a KRW 120 billion (USD 130.9 million) fuel cell plant. The eco friendly energy plant will produce an annual 100MW of power in the southern port city of Pohang by 2010.

POSCO in a statement said that "We expect the fuel cell business will create 400 billion won in revenue a year from 2012."

Fuel cells are electrochemical power generators which produce electricity and heat without combustion and the pollutants associated with burning fuel.

POSCO has been seeking to expand into the lucrative energy sector by acquiring an independent power firm and buying a stake of a US manufacturer of fuel cell plants.

OneSteel worker crushed to death in warehouse

It is reported that a man has been killed in an industrial accident at a OneSteel warehouse in Lavarack Ave at Eagle Farm. He was one of two workers unloading steel beams from a semitrailer when the load fell from the side of the truck, crushing him.

Mr Mark Gell a spokesman said that the accident had sent shockwaves through the company. He said “We have not had an incident like this since the company's inception. It's the first incident of its type in seven years. It is an extremely unfortunate event and obviously one that we will endeavor to ensure never happens again.”

He added that "The company has a very stringent safety policy, we have very stringent safety practices, we have a very good safety record, so you can imagine having an event like this has sent a shockwave through the organization."

OneSteel is one of the Australia largest manufacturers and distributor of structural, rail, tube and pipeline steel products.

TransCo and Zhejiang ink contract for construction of transmission line

It is reported that as part of its initiatives to further improve power reliability in the Luzon grid, Philippines National Transmission Corporation recently signed a contract with Chinese firm Zhejiang Electric Transmission and Transformation Engineering Corporation for the supply and delivery of transmission line hardware materials and the construction of the Calamba Tower No 50 Biñan 230 kV Transmission Line Project in Laguna.

Zhejiang won the competitive public bidding for the said steel pole, double circuit, 18.2 kilometer long transmission line, the last component of the Batangas Transmission Reinforcement Project which will enable the efficient transmission of bulk power from the more environment friendly geothermal and natural gas plants in Southern Luzon to the rest of the Luzon grid.

The project involves putting up higher capacity lines, building new substations, and boosting the capability of associated substations to handle bigger loads. Aside from the line connecting Tower No 50 to the Biñan Substation, BTRP's other components include the upgrade and expansion of the Batangas and Biñan substations, construction of the new Makban substation and the 230 kV lines connecting the San Lorenzo switchyard to the Batangas substation; the Batangas substation to the Makban A switchyard and the Makban A switchyard to the Calamba Tower No 50.

TransCo has been aggressively pursuing the completion of the entire BTRP project to boost the capacity of Southern Luzon substations and transmission lines that will deliver the steady supply of electricity to end-users in Metro Manila, Batangas, Laguna and Quezon.

Large lignite deposits found in Inner Mongolia

It is reported that a lignite deposit with proven reserve of 1.612 billion tonnes is found in Inner Mongolia.

The report added that among the total, about 725 million tonnes of resources can be controlled, accounting for 40% of the total reserve.

Iron Range Resources to consider change in pact with Minnesota Steel

It is reported that the Iron Range Resources and Rehabilitation Board recently will consider replacing terms of an existing financial agreement with Minnesota Steel Industries LLC.

According to Mr Matt Sjoberg director of Iron Range Resources development strategies the 13 member board is being asked to replace an agreement that calls for Iron Range Resources to receive future royalties from an iron ore deposit near Nashwauk if Minnesota Steel fails to develop the ore body.

Mr Sjoberg said under a new agreement, Iron Range Resources would be guaranteed USD 6 million in a line of credit from the Bank of India, New York branch, should the project not be developed.

Essar Steel plans in coming months to take control of the USD 1.6 billion project from Minnesota Steel. The project would include a new open pit iron ore mine, processing plant, direct reduced iron facility and a steel mill capable of making 2.5 million tonnes of slab steel per year.

Wesfarmers Curragh mine increases coal production

It is reported that Wesfarmers Limited has delivered an increase in coal production at its key Curragh coal project by 7.2% to 2.28 million tonnes as compared with the previous quarter. It said that its full year production expectations of export metallurgical coal at Curragh were in the range of 6.5 million tonnes to 6.9 million tonnes.

In the three months to September 30th 2007 Wesfarmers said it produced 1.56 million tonnes of metallurgical coal from its Curragh mine in Queensland. This was a 2.1% decrease on the corresponding quarter in 2006 but a 0.8% increase on the previous quarter.

Wesfarmers said production from the company’s New South Wales Bengalla mine jumped 30% to 558,000 tons, due to a catch up of lost production. However the Bengalla mine, which Wesfarmers holds a 40% interest in, suffered from severe flooding across the Hunter Valley during the previous quarter making the current figures appear more attractive.

Wesfarmers said output from Wesfarmers' Premier mine in Western Australia increased by 29.3% on the previous quarter to 763,000 tonnes of steaming coal. The previous quarter was again affected by Verve taking fewer products in order to reduce its coal stockpiles, making it an uneven comparison. It said overburden removal from the mine was 33.65 lower than for the previous quarter, as production was interrupted by weather conditions.

Peabody appoints 2 in its international trading subsidiary

Peabody Energy has announced that its global sales and trading subsidiary has added two new positions to its staff Mr David RL Barham has been named Director of Global Freight Trading for Peabody Coal Trade International Limited and Mr Scott Paul Knights has been named GM of Thermal Coal Marketing Japan for Coal Trade International.

Mr Barham will be responsible for global freight trading. He will report to Mr John W Hanekamp and will be based in London. Most recently, Mr Barham was Head of Physical Dry Freight for GFI Brokers pte Limited Singapore. He has 14 years of experience in the coal brokering industry and has served in management positions with Clipper Bulk Shipping UK and Simpson Spence and Young Shipbroker in London and Johannesburg, South Africa. Mr Barham graduated from the University of the West of England in Bristol with a Bachelor of Science in Valuation and Estate Management.

Mr Knights will be responsible for thermal coal marketing and sales into Japan and will be headquartered in Newcastle, Australia. He reports to Mr Scott Twose. Mr Knights brings 17 years of management experience in marketing and business development in the metals and mining industries. Since 2001, he has served with Rio Tinto Marine as Manager of Business Analysis, GM of Business Development and GM of Portfolio Management. He also served as Principal Consultant for the energy and mining practice of Price Waterhouse Coopers and as Manager of Base Metals Marketing for RGC Limited, both in Sydney. Mr Knights holds a Bachelor of Economics degree with honors.

Coal contributes USD 110 million FOREX to Indonesia

Antara News reported that Indonesia’s coal has contributed USD 109.2 million in foreign exchange revenue to the state’s coffers in the January to July 2007 period.

Head of the Industrial and Trade Cooperative Lampung office Suparmo said in Bandarlampung recently that, the coal exported to various countries had a total weight of 2,316,163 tonnes. In 2006 corresponding period, the coal exports reached 1,363,931 tonnes worth USD 135.5 million with the volume increased by 69.82%, but the foreign exchange revenue declined by 19.03%.

Coal which had been exported through the Tarahan coal port was produced by PT Tambang Batu Bara Tarahan operating in Tanjung Enim, South Sumatra, and carried to Lampung by coal train. In the meantime, Lampung has also exported other minerals including zeolite, iron ore, processed coal, and manganese ore.

The coal which had been exported through Lampung was only a small segment of the coal supplied to the coal-fired power plant PLTU Suralaya in Banten and to PLTU Tarahan in South Lampung regency.

The 2006 data also showed that the exported 2,763,842 tonnes of coal earned USD 199.49 million in foreign exchange revenue, the fourth highest after oil palm and derivativces, frozen shrimp and robusta coffee beans.

UK Coal posts good progress in 9 months

UK Coal PLC said that its January to September trading has been in line with expectations, with progress made in all its businesses.

UK coal in a statement said that its four deep mines achieved their highest quarterly output this year of 1.93 million tonnes, totaling 5.25 million tonnes for the nine months. Fourth-quarter output is expected to be about 1.7 million tonnes, allowing Daw Mill and Welbeck collieries to complete face changes, and both Daw Mill and Kellingley to work through geological faults. Kellingley production is anticipated to continue at reduced levels into 2008.

It added that surface mining output in the third quarter reached 0.34 million tonnes despite exceptionally wet weather, taking nine month production to 1.04 million. Three more sites are expected to commence production in the fourth quarter.

On coal prices, the company said futures prices have continued to strengthen and it expects to secure improved prices as it negotiates new contracts.

Laigang realized net profit of CNY 808 million in 9 months

Laiwu Iron and Steel Company Ltd announced the performance results for Jan to Sept 2007. As per report during the period, Laigang realized net profit CNY 808,323,600 up by 37.06% YoY. The results may differ from the final financial results.

Laigang said that during January to September 2007, it takes advantage of strong demand for steel and the prices for steel keeping on rising, it strengthened the operation method of basing on market situation to arrange the production, sale and development and continues to improve the product mix and process and boosts the energy saving and emission decreasing recycling economy. Therefore, the company has had a much higher net profit for Jan to Sept 2007.

Aquila Jonah coal JV appoints Mr Campbell as COO

Australia's Aquila Resources and Jonah Coal, a new coal company formed by the teaming up of Scharrig Mining and Sam Jonah's companies Jonah Limited and Jonah Capital announced that it had appointed Mr Malcolm Campbell as chief operating officer of the energy JV.

Mr Campbell has enjoyed a 20 year career in coal mining, mainly with Anglo American's Coal division, where he gained experience across operational and project development.

The Aquila Jonah Coal joint venture was set up last month to accelerate the development of coal resources in Botswana and progress plans to construct related power generation facilities. The fast tracking of the mine and power station development comes as the growing demand for power, created by significant economic development, has left the Southern African region with a tight power supply.