JSW Steel Q2 crude steel production up by 21% YoY

JSW Steel Limited has announced that it continues to post increase in volume of production following the commissioning of capacity enhancement to 3.8 million tonnes per annum in November 2006.

In million tonnes
Change is with respect to July to September 2006 quarter

JSW’s hot strip mill has produced 1.36 million tons in January to June 2007, showing a capacity utilization of 109%.

TATA Steel opens "steeljunction" in Siliguri

TATA Steel has opened its second retail outlet of “steeljunction” at Siliguri. The outlet at the Sunflower Mall in Siliguri was inaugurated by Mr Anand Sen VP for flat products of TATA Steel.

The “steeljunction” store is spread over an area of 3500 square feet and houses products made out of steel. Product categories like furniture, utensils, life style products, modular kitchen, home appliances, hardware items and others are also on display.

Apart from the categories mentioned, all TATA Steel sub brands like TATA SHAKTEE, TATA TISCON, TATA PIPES and TATA AGRICO would also be sold through this outlet.

The main objective of TATA Steel behind venturing into organized retail is to change the perception of people towards steel and to showcase steel as providing useful products that touch the lives of ordinary people.

TATA Steel is planning to open six more such stores by March 2008.

Indian infrastructure registers 9% growth in August 2007

It is reported that the buoyant performance by the cement, coal and electricity sectors has pushed up the growth of the six core infrastructure industries of India to 9% in August 2007 as against 6.6% in August 2006.

Though the August 2007 numbers showed an improvement over the last year, there was a decline in the growth of the six sectors during the April to August 2007 period. The growth of the six sectors declined to 6.6% from 8.3% in the corresponding period last year. The decline in the growth was because of all the sectors except electricity.

The six core sector industries have a combined weight of 26.7% in the index of industrial production.

Jai Balaji to invest INR 16,000 at Purulia in WB

Jai Balaji Industries Limited announced that it would sign a Memorandum of Agreement with the Government of West Bengal, West Bengal Industrial Development Corporation Ltd and West Bengal Mineral Development Corporation Ltd (WBMDCL) on October 4th 2007 for setting up

A. 5 million tonne steel plant
B. 3 million tonne cement plant
C. 1215 MW captive power plant

The projects would be set up over next 10 years at an investment of INR 16,000 crores in the district of Purulia of West Bengal.

Facor Steels plans major expansions after BIFR discharge

Nagpur based Facor Steels Limited has informed Bthat it has been discharged by the Board of Industrial and Financial Reconstruction from the purview of sick industrial companies and is no more a sick company having a positive net worth of INR 21.56 crores as of March 31st 2007.

Facor release said that “Facor Group of Companies are now moving ahead with the envisaged expansion plans involving investment of INR 2500 crores for setting up a coal based 250 MW independent power plant and 0.5 million tonnes per annum stainless steel plant.”

As part of its forward integration Facor Steels Ltd is also setting up a 2000 tonnes hydraulic forge press for production of forge round bars at its existing steel plant with a installed capacity of 12000 tonnes per annum. The total cost of the project is estimated at INR 25 crores and the project is expected to be commissioned by April 2008.

Presently Facor Steel has a facility of making 60000 tonnes per annum of alloy steel & stainless steel with 2 rolling mills having capacity to roll 72000 tonnes per annum and bright bar facility having capacity of 10000 tonnes per annum. The turnover and net profit of the company for the year 2006-07 was INR 419.77 crores and INR 5.39 crores respectively. With the commencement of commercial production of forged round bars it is expected that the turnover of the company would exceed INR 500 crores and profitability would also improve substantially.

Shyam Group unveils plans for investment in Orissa

BS reported that Kolkata based Shyam Group of Industries has lined up an investment of INR 6,000 crore in Orissa for a number of projects in the cement, steel, power, ferroalloys and port sectors.

As per reports, the proposed projects include the following
1. Expansion of steel capacity to 0.77 million tonnes and power capacity to 60 MW at an investment of INR 400 crore
2. Setting up a 1000 MW independent power project at Jharsuguda at an estimated investment of INR 3,500 crore
3. Increasing the capacity of ferroalloys production at its Sambalpur facility. It intends to set up a 300 MVA furnace to produce 450,000 tonnes of ferrochrome, ferromanganese, ferrosilicon and silicomanganese per annum.

Mr Milan Agarwal senior executive project coordinator of Shyam Group said that “This expansion is expected to go on stream in the next 24 months, which will catapult us to the position of the second largest manufacturer of ferroalloys in the country after Indian Metals and Ferro Alloys.”

Shyam Group currently operates a 0.27 million tonnes steel plant equipped with a 25 MW captive power generation facility at Sambalpur in Orissa.

Shyam Group also has its manufacturing facilities in Durgapur, Raniganj, Burdwan and Meghalaya. The group’s turnover stood at INR 3,000 crore in 2006-07.

RBI to circulate INR 5 coins of ferritic SS

The Reserve Bank of India has announced that it would shortly put into circulation new ferritic stainless steel coins of INR 5 denomination.

There will be 2 types of coins with the themes, connectivity and information technology and unity in diversity.

The coins will have security edges on its peripherals and the existing INR 5 coins in circulation shall also continue to be legal tender.

Mr VK Jain takes additional charge as CMD of NMDC

BL reported that Mr VK Jain director production of National Mineral Development Corporation Ltd has assumed additional charge of CMD of NMDC with effect from October 1st 2007, consequent to the superannuation of Mr B Ramesh Kumar.

A graduate in mining engineering from the Indian School of Mines Dhanbad, Mr Jain joined NMDC as an executive trainee and grew with the company. He has held several important positions in his career, including that as MD of the wholly owned subsidiary of NMDC for exploration of gold in Madagascar and East African countries.

Essar Steel set to delist from stock exchanges

Edelweiss Capital Ltd, manager to the delisting offer, has issued a public announcement on behalf of Essar Steel Holdings Limited, to the Shareholders Essar Steel Limited for the proposed acquisition & delisting of the fully paid up equity shares of Essar Steel Limited pursuant to and in compliance with the Securities & Exchange Board of India Guidelines 2003

It made a public announcement on September 8th 2007, seeking to acquire all outstanding equity shares of the Essar Steel Limited, currently not held by the promoter group, being 147,240,721 fully paid up equity shares of INR 10 each of Essar Steel Limited shares representing 12.92% of the issued and paid up equity share capital through a book building process stipulated under the Delisting Guidelines, for the purpose of delisting the equity shares of the Essar Steel Limited from Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd.

Subsequently, bidding by equity shareholders on the online electronic system with the BSE closed on October 3rd 2007. Equity price discovered as per the Delisting Guidelines is INR 48 per equity share at Essar Steel Limited, at which the maximum number of Equity Shares have been tendered under the book building process.

It accepts the discovered price of INR 48 per equity share and has decided to offer the discovered price as the price for acquisition of the equity shares and shall accept all the bids at or below this price and the Shareholders who have tendered their equity shares at or below the exit price will be paid the consideration at the exit price of INR 48 per equity share.

It would accept equity shares from the shareholders holding shares in physical form at the exit price of INR 48 per equity share till October 23rd 2007. Further, it undertakes to accept the shares held by the remaining shareholders at the exit price of INR 48 per equity share for a period of 6 months from the date of delisting.

It would soon initiate necessary steps to delist the equity shares of the Essar Steel Limited from the BSE, and NSE.

CIL’s Central Coalfields Limited gets Mini Ratna status

It is reported that Coal India Limited’s Jharkhand based subsidiary Central Coalfields Limited has been recently notified as a Mini Ratna status by the union government. With this, 5 subsidiaries of CIL have become Mini Ratna companies.

Mr RP Ritolia CMD of CCL said "CCL is now a Mini Ratna category 1 company. The landmark achievement of CCL could be assessed from the fact that it was placed in the 7th position among profit making companies of India last year.”

He said that the new status would enable it to have more working autonomy and CCL management will get additional powers to approve capital expenditure to expand business. He added that "This will also have positive impact on the performance of the company, enabling it to take faster decisions in the ever changing business environment."

The CCL board would now be empowered to sanction up to INR 300 crore for the purpose of capital expenditure in new projects, modernization of projects and purchase of equipment as against current limit of INR 100 crores.

Currently CCL produces 41.32 million tonnes coal per year. CCL has set a production target of 78 million tonne in the eleventh five year plan and 115 million tonne in the twelfth five year plan. In 2006-2007 CCL registered a profit of INR 10.2 billion.

Bharati Shipyard inks JV with Apeejay for a shipyard at Dhamra

It is reported that Bharati Shipyard Ltd, in JV with Apeejay Surendra Group, will set up a state of the art shipbuilding yard and ship repair yard at Dhamra in Orissa. JV will sign a MoU with the Orissa government sometime in October 2007.

The INR 2,200 crore project will come up in 3 phases. The project will require 75,000 million tonnes per annum of steel in phase I, up to 2,30,000 million tonnes per annum in phase II and up to 4,50,000 million tonnes per annum in phase III. Phase I is expected to complete early 2009 and commercial production is set for.

The promoters have identified and surveyed 1,500 acres near Dhamra Port and provisionally selected 1,050 acres for the shipyard. Once the MoU is signed other activities like land acquisition will be taken up as soon as the R&R package is ready and the master plan by early 2008. Work will begin by mid 2008.

Caparo aiming for USD 1 billion turnover from India

It is reported that Caparo Engineering India Private Limited is looking at a turnover of INR 4,000 crore from its Indian operations by 2011 as against INR 220 crore in 2006.

Mr M Karunanidhi chief minister of Tamil Nadu has commissioned the first phase of Caparo Group's INR 600 crore auto metal sheet manufacturing facilities at Sriperumbudur in Chennai. The facilities commissioned included a stamping unit, R&D center, tool room, aluminum foundry and a forging unit and has been built on 120 acre of land with an initial investment of INR 400 crore.

Mr Angad Paul CEO of Caparo Plc and chairman of Caparo India said that "We expect revenue of at least INR 1,000 crore from the facility by 2010. We have got customers in aerospace sector and the automotive sector. As the aerospace sector grows, they are recognizing the need for having quality suppliers." He added that Caparo is also keen to service the maritime sector.

Caparo is also setting up another manufacturing facility at Oragadam in Tamil Nadu with an investment of INR 300 crore. The unit will house manufacturing facilities for tubular parts for automotive, aerospace, automotive braking systems, fasteners, composite materials and testing. The facility will be set up next to the automotive park being set up by Nissan, Renault and Mahindra and Mahindra.

Tuticorin Port handles 10 million tonnes freights in 6 months

Tuticorin Port Trust has handled 10.032 million tonnes freight during April to September 2007 period up by 17.98% YoY as compared to April to September 2006 period. This has been achieved through handling more thermal coal, containerized cargo, finished fertilizers, timber logs and copper concentrates, excepting petroleum products.

It said that “Proactive measures have been taken such as issue of trade notice for handling cargo at anchorage, concessions offered through MoUs entered into with major users, improved mechanized handling of timber logs and trade promotion meetings.”

Mr A Subbiah deputy chairman of Tuticorin Port Trust said that it proposes to hold more trade promotion meetings and road shows to attract more cargo.

STC 2006-07 turnover up by 101% YoY

State Trading Corporation has posted a turnover of INR 15,000 crore during the year 2006-07 up by 101% YoY. It has also achieved a net profit of INR 100 crore during the year 2006-07.

The highlights of STC's performance during the year are as under:

1) All time high net profit of INR 88 crore up by 127% YoY as against INR 39 crore achieved during 2005-06

2) All time high dividends of 40% over and above an interim dividend of 20% already paid to the shareholders, taking the total to an all time high dividend payment of 60%

3) All time high total turnover of INR 14335 crore up by 101%YoY

4) Highest ever exports of INR 2927 crore up by 167% YoY as against INR 1095 crore during 2005-06

5) Highest ever imports of INR 10692 crore by up 95% YoY as against INR 5493 crore during 2005-06

6) Highest ever domestic sales of INR 716 crore up by 33% YoY as against INR 537 crore during 2005-06

Chinese Sany and Liugong to set up construction equipment units in India

It is reported that 2 prominent Chinese construction equipment companies Sany and Liugong, plan to set up facilities in India. Both Sany and Liugong are setting up business in India through their manufacturing units for manufacturing and distributing construction equipment which is used in road building, mining and earth moving.

The USD 1 billion Sany group will invest USD 70 million for its manufacturing facility in Pune, which will have a capacity of 15,000 units per annum.

Liugong will set up a facility in New Delhi for wheel loaders, rollers, and such equipment and will also carry out research and development activities.

It is estimated that the construction equipment market in India will be in the region of USD 4 billion by 2010, more than double the current USD 1.95 billion. Incidentally India’s largest construction equipment maker Joseph Cyril Bamford, which has a market share of about 55%, is investing INR 300 crore to double its capacity at its Ballabgarh plant. It will also localize its products like excavators, road rollers and wheel loaders at its newly commissioned plant in Pune.

Mechel buys Yakutia coal assets for USD 2.3 billion

It is reported that Mechel has bought coal assets in the northeastern Republic of Yakutia for RUB 58.19 billion (USD 2.3 billion). The lot's starting price was RUB 47.4 billion with a bid increment of RUB 100 million.

The tender offered 68.86% of shares in the coal company Elgaugol, 75% minus one share in Yakutugol and an unfinished 320 kilometer section of the Ulak to Elga railway. The prospective buyer undertakes to put the railway into operation no later than September 30th 2010.

Mechel estimates investment in the development of the Yakutian coal assets acquired at a tender Friday at USD 3 billion over 7 years to 10 years. Mr Alexei Ivanushkin of Mechel said "Investment will depend on the cost of the railway and the market situation.”

As per reports, Mechel has arranged a USD 2 billion, 5 year pre export syndicated loan to fund its acquisition of coal assets in Yakutia. A banking source told Reuters that Mechel had mandated ABN AMRO and BNP Paribas to arrange the loan.

The tender commission denied the company Kolorprofil, which represents the interests of ArcelorMittal, admittance to the tender, saying it would give the reasons for the refusal later.

Coking coal outlook improves as demand grows

It is reported that after two years of lower contract prices, the spot price for metallurgical coal is beginning to climb steadily higher. With steady global growth and demand from Japan and China, the price for the hard black resource is firming up and headed north.

Ms Patricia Mohr Scotiabank's economics and commodity market specialist said "My guess would be that contract prices will tend to go up in the next contract year unless you find that global economic activity really slows quite markedly because of the difficulties in the United States. She said “We are not expecting that although we only have global growth going modestly as a result of the subprime difficulties in the US so as long as that stays the way we have it, I would expect contract prices for metallurgical coal to go up."

Ms Mohr said "In the next contract year the benchmark prices will be up marginally for thermal. It's been trending up in the first eight months of this year, the spot prices for thermal. It's been kind of picking up. I would guess it would not go down any more. It might actually move up because the spot price has actually moved up quite well this year."

US steel imports permit application in September decline by 10% MoM

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of September 2007 totaled 2,329,000 net tons. This was a 10% decrease from the 2,584,000 permit tons recorded in August 2007, a 9% decrease from the August preliminary imports total of 2,558,000 net tons and 13% lower than the 2005 monthly average.

Import permit tonnage for finished steel in September 2007 was 1,934,000 net tons, 5% below the preliminary imports of 2,034,000 net tons in August. YTD finished steel imports in 2007 remain 10% higher than the same period in 2005.

For September 2007, the largest volumes of steel import permit applications for countries outside of North America were China 356,000 net tons, Ukraine 188,000 net tons and Korea 155,000 net tons. Finished steel import permit applications for Chinese steel 356,000 net tons were down 1% in September compared to the preliminary imports total for August. This tonnage for China, while still below the 2006 record tonnage amounts that occurred in the second half of last year was 85% higher than the 2005 monthly average of 192,000 net tons for China.

Mr Andrew G Sharkey III president & CEO of AISI said that in analyzing the SIMA data for the month of September 2007 “Notwithstanding the monthly decline, the yearly total remains at an elevated level, and there are ongoing concerns about China and trade distorting practices.”

Mechel buys Ductil Buzau for EUR 90 million

Romanian Business Standard daily reported that Mechel has bought the majority share package of Ductil Buzau, a major Romanian producer of wire and wire products, in a deal worth some EUR 90 million, to consolidate its position on the Romanian market.

Former owners FRO SpA gave up its entire 71.85% share package, while Broadhurst Investment, which had a 10.88% equity interest and other shareholders, sold portions of their participation, according to sources close to the transaction. Ductil’s market value reached EUR 94 million.

Ductil posted EUR 21 million revenue in the first half of 2007 and a profit worth EUR 3.7 million. The value of product stocks amounted to EUR 5.7 million by June 30th 2007, and receivables totaled EUR 9.5 million. Ductil’s debts increased to EUR 4.5 million by the end of the first six months.

Mechel already owns the former Combinat de Oteluri Speciale Targoviste, which it took over in 2002, and Industria Sarmei Campia Turzii, bought from the Authority for State Assets Recovery in Romania.

NLMK upgrades reheating furnace at Lipetsk

NLMK has commissioned reheating furnace No 4 following its reconstruction for heating slabs before hot rolling. Reheating furnace No 4 is the second furnace at the production site in Lipetsk as reconstructed furnace No 5 was commissioned in 2004.

The furnace, which has a capacity of 320 tonnes of steel per hour, will allow a 50% reduction in energy consumption and decrease environmental impacts by almost 30%.

The design features provide high quality slab heating and flats production by using state of the art resource saving and environmentally friendly technologies. The unique performance capability of the furnace of low steel losses and high uniformity of reheating allows it to process products for both carbon and grain-oriented steel production.

This project, implemented within the framework of the NLMK’s Second Phase of Technical Upgrading Program, is worth over RUB 1.5 billion.

NLMK plans to increase the output of finished products from 5 million tonnes to 9.5 million tonnes per year by 2011 through the upgrade of NLMK’s existing rolling facilities, construction of new process lines and the acquisition of new rolling facilities. Total investments into the 2nd Phase of the Technical Upgrading Program will amount to over USD 4 billion.

Evraz H1 profit doubles on strong Russian steel market

Evraz Group announced its un audited interim results for January to June 2007 period with both revenues and sales volumes displaying solidly positive performance. Net profit in the H1 of 2007 went up by 98% YoY to USD 1.1 billion, while revenue grew by 57% YoY to USD 6 billion. Adjusted EBITDA grew by 87% YoY to USD 2 billion.

H1 2007 Highlights:

(In USD million)

Evraz group's crude steel production increased by 5.3% YoY to 8.4 million tonnes while steel sales volumes rose by 1.5% YoY to 8.5 million tonnes. In the mining business, iron ore production grew by 10.2% YoY to 9.3 million tonnes.

Steel
1. Crude steel production grew by 5.3% YoY to 8.4 million tonnes.
2. Total steel sales volumes increased by 1.5% to 8.5 million tonnes.
3. Revenues from vanadium sales rose by 190.4% as a result of the Stratcor and Highveld acquisitions.

Mining
1. Iron ore production grew by 10.2% to 9.3 million tonnes with iron ore self-coverage reaching 84%.
2. The acquisition of 50% of Yuzhkuzbassugol in June brought the total shareholding in the coal company to 100%.

Acquisitions
1. Successful tender offer for 100% of US’s Oregon Steel Mills for USD 2.3 billion completed in January
2. Acquisition of 93.35% of ZapsibTETs for USD 232 million in May
3. Acquisition of control over Highveld Steel and Vanadium Corporation in April
4. Acquisition of outstanding 50% in Yuzhkuzbassugol for USD 871 million in June

Mr Alexander Frolov chairman & CEO of Evraz Group said that “The continued growth of the Russian construction market and benefits from newly bought assets in the US and South Africa will boost the group's consolidated revenues for the full year by 45 to 55% and EBITDA by 55% to 60%. In Russia, where continued economic growth is boosting construction activity and new infrastructure projects, the company enjoyed its competitive advantage as a leading producer of construction and railway products.”

Mr Frolov added that “In the second half, Evraz said it aims to produce 7.6 million tonnes to 7.8 million tonnes of crude steel and 7.4 million tonnes to 7.6 million tonnes of rolled products, including 1 million tonnes in the US and 370,000 tonnes in South Africa.”

Interseroh takes majority stake in two recycling firms

Interseroh has announced that it has taken a majority stake in two companies, both that target the nonferrous market. The addition of the two companies will boost the amount of nonferrous handled by Interseroh Hansa Recycling by around 120,000 tonnes. Both deals are subject to the approval of the anti trust authorities.

In the first deal, Interseroh Hansa Recycling acquired Europe Metals bv, which is headquartered in the Netherlands. The Dutch company was established in 1990. Along with its headquarters, the company has three transshipment locations: one each in Germany, the Netherlands and Belgium.

Interseroh Hansa Recycling also taken a majority position with Europe Metals Asia Ltd., based in Hong Kong.

Mr Christian Rubach director of Interseroh said "The two Europe Metals companies will distinctly strengthen the Interseroh position in the international non-ferrous metal scrap trade. By taking over the majority shareholdings we close the added value chain through a direct access to the end consumers right into the market of eastern Asia. The aim of the new holdings was to further increase the quantity of internationally marketed non-ferrous metals through access to the existing Interseroh trading platform.”

Interseroh operates around 50 processing and trading locations for steel and metal recycling segment of the Group. Previous to the acquisition of these two companies Interseroh’s recycling division was processing around 3.3 million tonnes of steel and metal scrap in 2006, making it one of the top three German steel scrap recycling enterprises.

Siemens and Mr Mordashov agree on strategic partnership for Power Machines

Siemens and Mr Alexey Mordashov have concluded an agreement on long term strategic partnership for the modernization and further development of Power Machines. Both partners have also agreed on the principles relating to the management of Power Machines.

It was agreed, that Siemens as a company with major technological experience will be in charge of the appointment of Chief Operating Officer and Mr Mordashov as a major shareholder will be responsible for the appointment of Chief Executive Officer.

Mr Rudi Lamprecht member of the Corporate Executive Committee of Siemens AG said “Through this strategic partnership Siemens and Mr. Mordashov will make an important contribution toward the expansion of Russian German cooperation in the high tech sector. Implementation of the agreements reached will be a vital contribution toward targeted further development of Power Machines as a leading company in the construction of power machinery equipment in Russia.”

Mr Mordashov, through Highstat Limited, has acquired roughly a 30% stake in Power Machines, which was previously in the possession of Interros. In addition to RAO UES and Siemens, each holding a stake of 25% plus one share in Power Machines, Mr Mordashov thus becomes a further strategic investor in Power Machines. Together Siemens and Mr Mordashov’s company control nearly 55% of Power Machine’s shares.

Gerdau Ameristeel and USW reach labor agreements

Gerdau Ameristeel Corporation announced today that it has reached agreements with the United Steel Workers at Gerdau Ameristeel's Sand Springs in Oklahoma and Calvert City in Kentucky steel mills.

The effective date of the Sand Springs contract is September 28th 2007 and it runs through March 2nd 2011 and the effective date of the Calvert City agreement is October 1st 2007 and it runs through April 22nd 2011.

Mr Terry Danahy VP and chief HR of Gerdau Ameristeel said “Gerdau Ameristeel is very pleased that we were able to complete these last two contracts with the USW. We have settled eight contracts this year and now all USW union locations in North America have agreements in effect.”

Mr Pinchuk consolidates assets under UK based EastOne

Kiev Post reported that Interpipe group, the industrial and media holding owned by Mr Viktor Pinchuk has shifted its prime assets to a new London registered investment fund in line with plans to go public on a major Western market.

As per report, EastOne LLC’s portfolio includes more than 20 businesses including the Interpipe steel pipe and railway wheel manufacturing factories, interests in three national television channels, the Fakty daily newspaper and the Zaporizhya based specialized steel producer Dniprospetsstal. EastOne is currently involved in various investment projects in the US’ Silicon Valley, Central Europe, the CIS and Ukraine. The projects include IT, real estate, retail trade, logistics, and financial services. Interpipe officials estimated that all of the assets to be managed by EastOne would amount to about USD 10 billion.

Mr Gennadiy Gazin was appointed CEO of the newly created London company. Mr Gazin has headed the Interpipe group for the last six months. He told the Post that establishing EastOne is in line with the group’s mission to better manage investment flows and value of portfolio in such a way in order to provide maximum income from portfolio investments and to create a platform for long-term growth.

He said the company will seek to diversify its portfolio and complete large acquisitions outside Ukraine: M&A deals conducted by EastOne LLC this year alone will amount to about USD 3 billion. He added that “We must become a truly international company adding that the group has sufficient resources, reputation and competence to become a good partner in global investments.”

Kiev Post’s sister publication, Korrespondent, estimated that Mr Pinchuk, son in law Mr Leonid Kuchma former president of Ukraine is worth USD 7 billion and is the second wealthiest person in Ukraine.

Grange buys Rio's magnetite project

Iron ore explorer Grange Resources Ltd has acquired an exploration license for the eastern extension of its flagship Southdown magnetite deposit from Rio Tinto Exploration Pty Ltd. The project is near Albany in Western Australia.

As consideration for the acquisition, Grange shareholders last week approved the issue of 9 million shares and 17.5 million options to Rio's nominee Hamersley Holdings Ltd, plus USD 1 million cash. The shares and options represent 19.9% of Grange's issued share capital.

Mr Geoff Wedlock MD of Grange said the acquisition increased substantially the Southdown magnetite resource available for development, potentially extending the mine life to more than 35 years.

Grange Resources Ltd is targeting more than 1 billion tonnes of mineralisation within the whole Southdown deposit with about half of that expected to come from the 6 kilometer eastern extension. It added that the quality of the magnetite in the new license was similar to that within the western portion of the deposit.

Grange proposes open pit mining, and plans to ultimately produce magnetite concentrate at a rate of 6.6 million tonnes a year. Subject to financial closure being received in 2008, the commencement of mining is expected in 2010, with full production following the year after.

Wheeling-Pitt plans to shift mills to save on freight

AP reported that Wheeling Pittsburgh Steel is negotiating with the United Steelworkers to move its cold mill at Allenport in Panama to a new site at Steubenville in Ohio over the next 12 months to 18 months. The move must be approved by the union and the board of directors as it would affect nearly 270 union workers.

Mr James Bouchard chairman & CEO of Wheeling Pittsburgh Corp said that each year, Wheeling Pitt ships more than 1 million tonnes of hot rolled steel about 57 miles from Steubenville in Ohio for processing at a cold mill in Allenport then back to Steubenville. Freight costs alone top USD 20 million a year. He said that "It hurts our delivery performance for the customers and the transportation costs are killing us."

Mr Bouchard said that his plan calls for relocating all of the workers and their equipment and putting both in a new USD 125 million facility. He further added that “No one is losing their jobs. Workers can relocate to Steubenville and run the same equipment. But they may have to move or make a 90 minute commute.”

Mr Bouchard says he is working with the USW to craft what he hopes will be an attractive package for the employees.

Wheeling Pitt late last month it planned to invest USD 125 million in a new cold mill and galvanizing complex on the site of an old blast furnace in Steubenville.

Siemens Metals Technologies fully acquires Shape Technology

Siemens Metals Technologies, a division of the Siemens Group Industrial Solutions and Services is merging its components business in the metallurgical plant building industry and has taken over the remaining 50% of the supplier, Shape Technology Ltd of UK.

Shape Technology was founded in 2001 and was most recently a 50:50 affiliated company of Siemens VAI Metals Technologies with Foray 1315 Limited of UK, a purely holding company.

In addition to the headquarters in UK, Shape Technology also has a 100% subsidiary company in the USA. It employs approximately 60 employees and recently achieved sales in the amount of 20 million euros with their measuring, filter and pickling tank systems.

Shape Technology offers a series of measurement systems for the metals industry which are required in the individual process steps in metals rolling and processing. These are mainly mechatronic instruments for the geometric quality control information, which measure and record the shape and profile conditions of the metal. Additionally, Shape Technology also sells coolant filtration as well as pickling tank systems for cooling and pickling agents that are used continuously during the process.

Shape Technology will introduce its products in plant building as a separate subdivision within the global organization of Siemens Metals Technologies, and also continue to sell its products to third parties.

4 hurt in blast at Corus Scunthrope works

It is reported that four contractors were injured in an explosion on the Scunthorpe Corus steelworks.

Three fire engines were called to the coke ovens in Dawes Lane at 11.35am yesterday after a flare stack was ruptured, causing a loud bang. The firefighters stood by as Corus employees isolated the supply to the damaged stack. Four contractors were treated at an on site medical centre but were later allowed to return back to work.

Corus has launched a full investigation into the incident and the Health and Safety Executive and Environment Agency has been notified.

Mr Rob Simpson spokesman of Corus's Scunthorpe said the incident happened during routine maintenance work on a flare stack in Dawes Lane. He explained the stack was used to burn off surplus, clean coke oven gases. Mr Simpson said: "Initial investigations suggest a small pocket of coke oven gases was ignited as contractors carried out some welding work at the base of the flare stack. The ignition caused a rupture of the stack high above where anyone was working."

Mr Simpson said there was no fire and production had been unaffected. He added: "Four men working in the vicinity went to the on site medical centre for a check-up as a precaution and are now back at work."

A flare stack is an elevated vertical stack or chimney used for burning off unusable waste gas or flammable gas and liquids released by pressure relief valves during unplanned over-pressuring of plant equipment. Whenever plant equipment items are over pressured, the pressure relief valves on the equipment automatically releases gases, which are routed through large piping runs called flare headers to the flare stacks. The released gases and or liquids are burned as they exit the flare stacks. The size and brightness of the resulting flame depends upon how much flammable material was released.

BHPB may appeal in High Court in rail dispute

The Australian Business reported that BHP Billiton is likely to take the battle over its WA rail lines to the High Court after a Federal Court appeal was dismissed, which paves the way for the rail lines to be declared open to third party access under the Trade Practices Act.

Mr Peter Monkhouse vice president of business strategy for BHP Billiton's carbon steel materials division said that the company would assess its next steps after the ruling. He added that “The next step, if we choose to, is to seek leave to the High Court.”

BHP had appealed a December 2006 Federal Court ruling that declared the company's railway lines in the Pilbara were not part of the production process. In a split decision, the Full Bench of the Federal Court dismissed BHP Billiton's appeal.

The Federal Court action was brought by the National Competition Council and emerging iron ore producer Fortescue Metals Group Ltd. Fortescue is seeking access to BHP Billiton's 426 kilometer Mt Newman line to allow the development of the Mindy Mindy iron ore deposit.

The Australian Competition Tribunal will determine the broader question of whether the rail lines should be declared open to third party access under the Trade Practices Act.

The Mt Newman and Goldsworthy rail lines transport about 100 million tonnes of iron ore each year to Port Hedland for blending, processing and shipping.

Rautaruukki to expand into Bulgarian market

Rautaruukki announced to strengthen sales of construction products and services in Bulgaria by establishing a sales office in the capital of Sofia. Ruukki aims to become the country's leading supplier of frame, wall and roofing structures for commercial and industrial construction. Later on, Ruukki plans to expand its own sales network in Bulgaria in line with its business growth there.

Ruukki will also serve residential construction customers in Bulgaria by supplying roofing systems through a network to be formed with local distributors.

Mr Jukka Hirviniemi SVP, Central Eastern Europe of Ruukki Construction said that "Demand within commercial and industrial construction is growing rapidly in Bulgaria, as in other countries in Central Eastern Europe. Our plant currently being built in Romania will make the entire range of construction products from frames, to wall panels and roofing components. Our knowledge of the local construction market and deliveries from a plant in the region will ensure prompt, quality service in both the Romanian and Bulgarian markets.”

Rautaruukki supplies metal based components, systems and integrated systems to the construction and mechanical engineering industries. The company has a wide selection of metal products and services. Rautaruukki has operations in 23 countries and employs 14,500 people.

Malaysian developers seek temporary ban on steel exports

Business Times reported that Malaysia’s Real Estate and Housing Developers Association wants an immediate temporary ban on the export of cement and steel until the shortage of the materials in the local market is overcome.

The report added that Malaysia ministry of domestic trade and consumer affairs to conduct an immediate investigation into the causes of the material shortages and to impose the temporary ban.

Mr Ng Seing Liong president of Real Estate and Housing Developers Association said that “The ministry should ensure that supply for the local market is adequate so that the price stability of the materials can be sustained. This is particularly crucial as an excessive increase in pricing will inevitably lead to late delivery of buildings or houses.’

Mr Liong was responding to the concerns of industry counterparts Building Materials Distributors Association and Master Builders Association that the cement and steel shortages have worsened and that developers are facing problems obtaining adequate supply of the materials.

BMZ starts exporting seamless pipes to Poland

The Belarusian Steel Works has supplied its first ever shipment of hot rolled seamless pipes to Poland.

BMZ added that more shipments are to be supplied to Poland in the near future and an Italian engineering company also has contracted to buy hot rolled seamless pipes from the BMZ. Talks are underway with potential customers in other countries.

The works has manufactured hot rolled seamless pipes since this past summer. It plans to export 85% of the output. The BMZ made 600 tons of such pipes in September and is expected to raise the production to 2,000 tonnes this month.

BMZ plans to increase its overall output by 8.5% and exports by 8% in 2007. To achieve this goal, BMZ plans to improve the structure of its range of products and modernize steel and wire production and thus increase the sale of more expensive types of products.

Evraz to establish vanadium division by 2007 end

RIA Novosti reported that Evraz Group SA intends to establish a vanadium division by the end of 2007. The report cited Mr Alexander Frolov president of Evraz Group SA as saying that the new division, to be established with the company's own assets, would help the company optimize its vanadium business.

Evraz is the sole producer of vanadium rich ore in Russia and one of the largest producers of vanadium slag globally. Vanadium is widely used in the production of high strength steels, titanium and also chemicals and petrochemicals.

Sidenor to invest EUR 40 million for rolling mill

Greek metals company Sidenor said that it will be investing about EUR 40 million to acquire and install a new state of the art rolling micro mill for long products from Italy's Danieli.

According to the company, the new micro mill will be installed at its Sovel plant in Volos and allow annual production to increase to 1.2 million tonnes from 0.9 million tonnes.

Sumitomo Metals starts coke oven building at Wakayama Steel Works

Sumitomo Metal Industries, Ltd has announced that it held an oven building ceremony for its New No1 Coke Oven at Wakayama Steel Works. A Koteire Ceremony is a Shinto ceremony to commemorate the beginning of the brickwork oven building where prayers are offered for safe construction and good performance of the furnace: smooth stand up, longevity and stable operation.

The New No1 Coke Oven is an important part of the production infrastructure at Wakayama Steel Works and designed to reduce the environmental burden on the surrounding areas. Commencement of operation is scheduled for May 2009.

Summary of Construction
(1) Construction cost: JPY 29 billion
(2) Construction schedule: November 2006 to May 2009
(3) Capacity: 2,800 tons per day
(4) Overall width: 284 meter
(5) Number of installed ovens: 130 ovens
(6) Oven dimension: Height 6 meter, Width 0.45 meter, Length 15.98 meter
(7) Total number of bricks used: Approx. 6.6 million.

Features
(1) First newly-built coke oven in forty years
This will be the first newly built coke oven at Wakayama Steel Works since the No.6 Coke Oven commenced operation in 1969. On a company wide basis, it will be the first in 28 years, since the No 2 Coke Oven commenced operation at Kashima Steel Works in 1981.
(2) Reduction of environmental burden
Site location is distant from neighboring residential area. The new No 1 A) Coke Oven is being constructed in the central part of Wakayama Steel Works, approximately 600 meter from the closest residential area, while the operations of the No 6 Coke Oven that are located closest to the nearby residential area will be stopped
B) Installation of Coke Dry Quenching. The New No 1 Coke Oven will have a Coke Dry Quenching unit installed. The CDQ unit of the No 6 Coke Oven will be used for the No 4 and No 5 Coke Ovens after the termination of the No 6 Coke Oven scheduled for May 2009. This will enable all the coke produced by Sumitomo Metals including Kashima Steel Works to be processed using CDQ. As a result, environmental performance will be improved. The examples include prevention of flying dust and energy efficiency.
3. Future Developments of Wakayama Steel Works

At Wakayama Steel Works, we are upgrading upstream processes and reinforcing environmental protection facilities. The investment includes construction of a New No 1 coke oven, a New No 1 blast furnace and a sintering plant. Total capital expenditures are JPY 160 billion. We are investing heavily on seamless pipe manufacturing facilities as well. Approximately JPY 35 billion is being invested to accelerate the shift of a product mix to super high end. These investments enable us to have a capacity of 4.5 million metric tons of crude steel and prosper in the community of Wakayama.

Maragusa strikes 1st pig iron deal

BNamericas cited Mr Zeferino Abreu Neto administrative director of Maragusa as saying that Brazilian pig iron producer Maragusa has concluded the first sale from its new pig iron plant in northern Brazil's Pará state.

The executive said "We've sold 20,000 tonnes of pig iron and are already seeking other negotiations. The unit kicked off production in July and is currently operating at 12,000 tonnes per month.

Mr Zeferino Abreu Neto said in other projects, Maragusa plans to build a 500,000 tonnes per year steel plant also in Pará state with construction expected to begin in early 2008. We will have all the studies for the project delivered to us by the end of the month.

Maragusa aims to plant 2,500 hectare of eucalyptus this year, which would be used to produce charcoal for its pig iron operation.

Mindy Mindy claim against Consmin dismissed by court

Consolidated Minerals Limited advised that the Supreme Court of Western Australia has recently handed down the reserved decision in the action commenced by Mr Derek Ammon against the Company and Pilbara Iron Ore Pty Ltd. It said that the court has dismissed the claims made by Mr Ammon in their entirety.

As a consequence, the existing joint venture arrangement under which PIOPL has the right to earn an 80% interest in tenement E47/1140 remains in place. Under the earn in provisions of the joint venture, PIOPL has incurred the required expenditure and is currently undertaking the required feasibility study, which is expected to be completed by the end of this year.

Consolidated Minerals’ iron ore interests in the Mindy Mindy Project are held through its 50% owned subsidiary, Pilbara Iron Ore Pty Ltd. In 2003, Fortescue Metals Group Limited acquired its 50% interest in PIOPL. It is intended that PIOPL will evaluate and develop the Mindy Mindy project which hosts the eastern extension of the Yandicoogina Marillana iron ore system, currently being mined by Rio Tinto and BHP Billiton.

The action was in respect of the Mindy Mindy iron ore tenements held by PIOPL and the parties’ rights under a joint venture agreement relating to exploration license 47/1140. Mindy Mindy provides a potential longer term iron ore development option for the Company, subject to the outcome of feasibility studies currently under way.

4 lignite sites to be auctioned in Krasnoyarsk Krai

FIS reported that four lignite site to be auction at Krasnoyarsk krai in Russia. The four sites are
1. Severniy site in the Balakhtinskiy district with reserves of 95 million tons at a starting price of RUB 30 million.
2. Mikhailovskiy and Kanagulskiy ingresses in the Irbeiskiy district, probable reserves up to 10 million tons with a starting price of RUB 7 million
3. Novonikolaevskiy in the Nazarovskiy district with reserves up to 70 million tons at a starting price of RUB 45 million.
4. Klyuchinskiy in the Sharypovskiy district with reserves of 10 million tons at a starting price RUB 10 million.

Regrouping of steel makers in Henan Province of China

Rumor goes that Anyang Steel Group is going to join in Baosteel in the wake of news of Shagang' acquisition of Yonggang. Anyang Steel volunteer to join Baosteel, but there's been no progress yet disclosed Baosteel management. This would be quite important to Chinese industry if that were the case.

Mr Zhao Xiang E steel industry analyst with Everbright Securities Commented that however some steel experts hold the opposite opinion. There is little likelihood that Anyang Steel enters Baosteel on its own initiative since it is not willing to be acquired by others, nay eager to buy out other steel makers. For example, it failed to merger Wuyang Steel which finally was acquired by Handan Steel."

Anyang Steel also denied the news when asked comment on the rumor of its merger with Baosteel.

Anyang is the 15th biggest steel mill in China whose steel output, sales income and net profit reach 7.02 million tonnes CNY 23.1 billion and 0.7 billion respectively. Its steel capacity is expected to arrive at 10 million tonnes in 2010.

As a matter of fact, Anyang enjoys a favorable market since there is no pressure of sales in Henan province, whose needs could not be met by its own supply. However, Anyang is under founded in the process of capacity expansion. Though the news is believable in this regard, Henan steel makers are often conservative.

At the same time, Anyang Yongxing Steel, another steel maker in Anyang city has been acquired by Shagang Steel who holds 80% of the new company Shagang Yongxing Steel Co ltd. Anyang Yongxing is a private steel maker who owns a yearly capacity of a million ton semi steels and a million ton pig iron.

(Sourced from MySteel.net)

Mechel views energy as independent business

Interfax citing Mr Igor Zyuzin general director of Mechel main beneficiary as saying during a telephone conference with analysts recently that Mechel Group views the energy segment it is forming as an independent business and intends to develop it.

He said this business unit is not only viewed as a sales division of the company's coal business, but also allows for receiving additional profit as the result of electricity sales. This is a promising area that we are trying to develop.

Ningbo Steel signs 10 year COA with STX Pan Ocean

Ningbo Steel signed 10 year contract of affreightment with STX Pan Ocean Co Ltd on September 20th2007. The contract is inked for route of Brazil to China.

With the contract, Ningbo Steel schemes to import about 6 million tonnes of iron ore in 2008 and some 10 million tonnes by 2010.

(Sourced from Mysteel.net)

Nyrstar appoints UBS, Goldman and Deutsche for IPO

It is reported that Nyrstar has appointed UBS AG, Goldman Sachs Group Inc and Deutsche Bank AG to manage its initial public offering.

Melbourne based Zinifex Ltd said today in a statement to the Australian Stock Exchange said the share sale would take place in the coming weeks subject to market conditions and investor demand and the stock will trade on the Eurolist of the Euronext Brussels stock exchange.

Mr Paul Fowler CEO of London based Nyrstar said in the statement that “Nyrstar has a great vision for the future of the global zinc market and our listing on Euronext Brussels will give us the flexibility to pursue our strategic goals.”

Nyrstar, created last month by the merger of Zinifex’s and Umicore SA’s zinc smelters, leapfrogged Seoul based Korea Zinc Co Ltd to become the world’s largest producer of the metal with annual output estimated at about 9.7% of global production.

UBS said in the report that Zinifex and Brussels-based Umicore both plan to sell their shares in the offering. Zinifex’s stake in Nyrstar is worth as much AUD 3.2 billion. It said Nyrstar intends to pay a minimum of 30% of profit as a dividend starting in 2008.

Mr Meyers appointed as GM of US Steel

United States Steel Corporation has announced the promotion of Mr Michael N Meyers to the position of GM of service centers, electrical, agricultural & industrial equipment in the company's flat roll products commercial organization. Mr Meyers will replace Mr George H Thompson Jr who was appointed GM of commercial in US Steel's tubular products organization and will report to Mr Joseph R Scherrbaum VP of sales. The advancement will be effective October 1st 2007.

Mr Meyers will be responsible for sales and service activities for US. Steel's service center, electrical, agricultural and industrial equipment customers and will be based in the company's Chicago area sales office.

Mr Meyers earned bachelor's degrees in business and economics from Lehigh University in 1974. He began his career with US Steel in 1974 as a commercial trainee in the company's Kansas City sales office. Over the next 19 years, Mr Meyers advanced through increasingly responsible positions in US Steel's sales and marketing organizations.

South Korean firms invited to invest in coal in KwaZulu Natal in SA

It is reported that KwaZulu Natal province of South Africa is on the verge of reviving its coal mining industry. This emerged during Mr S’bu Ndebele’s Premier of KwaZulu Natal trade visit to South Korea recently.

Mr Ndebele was leading a provincial delegation in Korea to concretize trade partnerships between the province and that country. During the visit he urged a leading coalmining conglomerate to invest in coal mining in KwaZulu Natal.

Mr Ndebele met Mr Lee Won-Gul president & CEO of Korea Electric Power Corporation in Seoul. He invited senior Kepco managers to attend the first South African International Trade and Investment Conference and Exhibition to be held in KwaZulu-Natal next month.

He said after the conference we will take you on a tour of our coal mining towns of Dundee, Vryheid and Newcastle. Mr Ndebele said “These towns have coal deposits for at least the next 40 years with a rail link to the Richards Bay Harbor which is the second largest harbor in Africa. Come and invest in our province.”

Northland Stora Sahavaara pellet iron project test successful

Mr Simon Ridgway chairman of Northland Resources has reported the results of initial palletizing trials which began in June 2007, conducted by Corus Group R&D Centre in Ijmiuden in the Netherlands on 2.5 tonnes of iron ore concentrate generated by Northland's Stora Sahavaara bulk sample program. The aim of the tests was to confirm that concentrate from Stora Sahavaara could make a commercial quality pellet with acceptable chemical composition suitable for withstanding handling and transportation without the use of additional additives such as lime, dolomite or bentonite.

He said that the results demonstrate that the pellets made from the Stora Sahavaara concentrate already fulfilled or exceed all of the necessary chemical and physical characteristics of commercial grade iron ore pellets. Sulphur analysis of pellets made from the same concentrate has been completed by COREM in Canada and found to be low at 0.008% S.

1. Green1 ball strength exceed average of 4 drops, with good samples being around 6
2. Green ball compressive strength average around 800g
3. Good green ball porosity at around 37.5%
4. Cold Compression Strength2 of the fired pellets exceeds 250 kilogram
5. Free swelling tests on the two selected pellet tests: -PPI2853 PPI2854
6. /\V 30 min: 5.5 % & 5.9 %
7. /\V 90 min: -6.8 % & -7.2 %.
8. Porosity: 25.1% & 24.5 %