October, 07 2007
Indian panel to review progress of steel projects
It is reported that India would review the progress of planned steel projects, including that of POSCO and ArcelorMittal.
Mr RS Pandey union steel secretary on the sidelines of an iron ore conference in New Delhi recently said that a panel of ministers would meet officials from mineral rich states like Orissa and Jharkhand, where firms are looking to set up new units. He added that "We will meet all the major states where investments are likely."
India has iron ore reserves of 23 billion tonnes and rapid economic growth and the subsequent need for big infrastructure improvements have attracted steel companies. But they have faced bureaucratic hurdles in tying down mining leases and opposition over land acquisition from farmers.
India aims to raise annual steel production to 150 million tonnes to 180 million tonnes by 2020, from about 49 million tonnes in 2006-07.
Global Steel to set up integrated steel plant in Philippines
Ms Gloria Macapagal Arroyo president of Philippines recently said that India’s Global Steel Holdings will set up an integrated steel project in Philippines at a cost of USD 1.6 billion (INR 6,400 crore). She added that the plant would come up in Southern Philippines.
Sources said that top Global Steel Holdings officials met Ms Arroyo in Mumbai on October 4th 2007 and expressed their resolve to set up an integrated steel plant in that country where it already owns a rolling mill.
Ashapura inks JV for mining in Oman
It is reported that Ashapura Minechem, through its 100% subsidiary Ashapura Minechem UAE, has established a 60:40 JV company in Oman with Alawi Enterprises LLC, for mining, processing and value addition of minerals. The JV will undertake mining and processing of industrial minerals like ground calcium carbonate, gypsum and others.
The first phase of the project will be mining and processing of ground calcium carbonate and gypsum, which are multi application minerals popularly used in industries like paper, plastics, paint, cement and others. In the second phase, the focus will be on value added products like clinker, white cement and gypsum board. The first phase is scheduled for completion by mid 2008 and the second phase by 2010.
Reliance Power to raise INR 25,000 crore for 6 power projects
It is reported that Reliance Power will raise over INR 25,000 crore for financing 6 power projects. This is in addition to the company's mega public issue, for which it has submitted the draft red herring prospectus with the market regulator.
As per reports, Reliance Power has mandated ABN Amro Bank NV, Deutsche Bank AG and a local unit of Macquarie Bank for raising syndicated loan of around INR 24,000 crore. This fund, along with the proceeds of the public issue, will be utilized in the 6 projects as detailed under
1. 600 MW Rosa phase I project
2. 600 MW Rosa phase II project
3. 300 MW Butibori project
4. 3,960 MW Sasan project
5. 1,200 MW Shahapur project
6. 400 MW Urthing Sobla project
The cost of the 6 projects is estimated to be INR 31,789 crore and Reliance Power will finance 80% of the amount through debt and the remaining 20% through equity.
Retirement age for port and dock workers raised to 60 years
It is reported that about 66,000 port and dock employees will now enjoy a retirement age of 60 years with effect from September 30th 2007.
As per report Mr TR Baalu Union Minister of Shipping, Road Transport & Highways has approved the proposal for enhancing the retirement age of employees of the Major Port Trusts and Dock Labor Boards from 58 to 60 years with effect from September 30th 2007 benefiting 66,000 dock and port workers.
It said this is following discussions with the representatives of five Major Federations of Port & Dock Workers on September 12th following which the federations agreed to withdraw the two references pending before the Chief Labor Commissioner Central.
The Chief Labor Commissioner Central has confirmed to the Ministry of Shipping, Road Transport and Highways that the Federations have agreed to withdraw unilaterally the strike notice and the relevant dispute pending with the CLC during the conciliation proceedings initiated by it.
Bharat Forge plans facility in SE Asia
BS reported that auto component major Bharat Forge is planning to expand its footprint in Southeast Asia. The probable destinations in the region could include Thailand and Indonesia. Mr Amit B Kalyani executive director of Bharat Forge said that the plans to this effect were at the drawing board.
In addition, it is also reported to be interested in setting up a new facility in West Bengal. He said that “West Bengal and the other eastern states such as Orissa, Jharkhand and Chhattisgarh have potential for manufacturing industries. We are keen to do something in West Bengal.”
Bharat Forge has been implementing an expansion plan to scale up capacity to 100,000 tonnes by next year
In a parallel attempt, Bharat Forge has taken a decision to de risk its business by earning more from the non-auto component sectors such as infrastructure, power, ports, aero planes and rail. It has set a target of generating 40% of its revenues from the non auto component business in four years compared with its current contribution of 17%. It is investing INR 350 crore in non auto component capacity in Pune. Once implemented, the capacity expansion is expected to generate a business of at least INR 700 crore.
Bharat Forge has manufacturing operations across 10 locations and 6 countries, 3 in India, 3 in Germany and 1 each in Sweden, the UK, the US and China.
Everest Kanto to raise USD 35 million through FCCB
Everest Kanto Cylinder, a leading player in high pressure gas cylinders, has announced the launch of its Foreign Currency Convertible Bonds issue to raise USD 35 million. The bonds will be convertible into the company ordinary shares later on.
The proceeds of the issue will be used by the company for import of plant and machinery for its operations in India, investments in its subsidiaries and proposed JV outside India.
The bonds are expected to be zero coupon and will carry a yield to maturity of 7.25% per annum. The conversion price is expected to be set at a premium of 30% over the closing share price of INR 233 of the company on the BSE on October 1st 2007.
The initial conversion price is fixed at INR 303.36 per share in accordance with the relevant pricing norms prescribed by the Centre. The bonds have been priced today and closing is expected on or about October 10th 2007.
The Singapore Stock Exchange has given in principle approval for the listing of the bonds. Citigroup Global Markets is the Sole Lead Manager for the offering.
TATA Steel to pay INR 15.50 per share dividend
TATA Steel Ltd has informed the BSE that its members at the 100th AGM on August 29th 2007 have approved declaration of dividend of INR 15.50 per share, including special dividend of INR 2.50 per share on account of the centenary year on 608,972,856 ordinary shares of INR 10 each for the year ended March 2007.
The members also approved re appointment of Mr Nusli N Wadia, Dr T Mukherjee and Mr AN Singh as directors of the company.
Besides, the members also approved increase in the authorized share capital of the company from INR 2,000 crore divided into 175 crore ordinary shares of INR 10 each and 2.5 crore cumulative redeemable preference shares of INR 100 each to INR 8000 crore divided into 175 crore ordinary shares of INR 10 each.
Mr Hajara appointed as new INSA president
Exim News Service reported that Indian National Shipowners’ Association, at its 27th annual general meeting, has elected Mr S Hajara CMD of Shipping Corporation of India as its new president and Mr Atul Agarwal JMD of Mercator Lines Ltd was elected as new VP.
Mr YD Khatau MD of Varun Shipping has stepped down as president of INSA after completing 2 year tenure but continues as one of the directors on the INSA board.
The two new faces inducted in the INSA board were Captain Mr SS Tripathi CMD of Dredging Corporation of India Ltd and Mr Arun Sharma executive president & CEO of India Steamship.
The other directors re elected for 2007-08 are
Mr Anil Devli executive director of Shreyas Shipping Ltd
Mr RL Pai group senior VP of Reliance Industries Ltd
Mr AR Ramakrishnan CEO of Essar Shipping Ltd
Mr KM Sheth executive chairman of Great Eastern Shipping Co Ltd
Mr SK Shahi CMD of SKS Ship Ltd
Mr R Srinivasan executive director of West Asia Maritime Ltd
Suryachakra Power’s MSM Energy registers under CDM
Suryachakra Power Corporation Limited, with reference to the earlier announcement dated September 11th 2007 has announced that its 100% subsidiary company MSM Energy Limited has been registered for availing carbon credits under clean development mechanism for the periods mentioned below which contributes enhancement of revenues to the company.
Period of credit is during January 1st 2008 to December 31st 2017 and number of CER's per annum 42,524. MSM Energy Limited will get revenues at the rate of EUR 10.5 per each CER from the years 2008-09 onwards
MSM Energy Limited 10 MW bio mass based renewable energy plant in Parbhani district of Maharashtra.
With the above registration, 3 out of the 4 units of Suryachakra Power's 100% 3 subsidiary companies have been registered for availing carbon credits under clean development mechanism.
SC stays HC order on JSEB unbundling
It is reported that Supreme Court has stayed the Jharkhand High Court directive of unbundling of the Jharkhand State Electricity Board by September 30th 2007.
Hearing upon the writ petition filed by the JSEB engineers, officers and employment coordination committee the division bench of Justice Mr HK Sema and Justice Mr Lokeshwar Singh impugned the High Court order asking the state government to complete the unbundling of the board by September 30th 2007.
Supreme Court, however, allowed the state government to prepare and publish the transfer scheme of the Board employees as per section 131 of the Electricity Act, 2003. Unbundling of the state electricity boards is required as per the Electricity Act.
REC forms subsidiary for foray into power distribution
It is reported that public sector Rural Electrification Corporation Limited has formed a subsidiary company to foray into the power distribution business.
REC’s subsidiary Power Distribution Company Ltd was created to leverage the company’s distribution experience and the subsidiary would operate and provide consultancy in power distribution to intending private sector entities. The subsidiary has already secured consultancy orders from the Rajasthan Government valued at INR 1,500 crore.
The report cited some REC officials as saying that the subsidiary is looking for orders from other States as they carry out their reforms in the distribution sector. They said that the Rural Electrification Corporation Ltd subsidiary is not averse to participating in the equity of the state distribution companies. For the purpose, it is scouting for JV partners in the private sector. They also said that it was willing to pitch for any of the DisComs through the JV route.
Rural Electrification Corporation Ltd has traditionally been a lender to state government owned utilities for power transmission and distribution. Recently, though it has also begun funding private sector utilities and power generation business. Rural Electrification Corporation Ltd already has a power transmission specific subsidiary Rural Electrification Corporation Ltd Transmission Project Company Ltd. This was for implementing transmission projects on a build operate transfer basis.
Indian Railway may extend freight rate discount on empty flow direction
Exim News reported that the Indian Railways is expected to extend the 30% discount on empty flow direction for freight carriage till December 007 although the scheme was valid till September 2007. In addition, the mini rake scheme will also continue.
Railway Ministry official said the Railways are enthused by the remarkable freight growth rate of 14% during July to September 2007-08, which prompted the extension. The idea is to attract maximum traffic from our only competition, which is road. The truck rate is significantly higher for the return trip, whereas the Railways charge the same rate in both directions.
The official explained "It was noted that up to 40% of trains returned empty. As the marginal expenditure incurred in loading freight in the empty flow direction was low, heavy discounts of up to 30% were announced on the reverse flow direction to ensure high utilization of assets through the year."
The scheme does not include transportation of coal and iron ore. Under the scheme of mini rakes, extra wagons are made available without any additional charge in the non peak season and at a freight rate higher than block rake trains by 5% in the peak season. The Railways’ peak season is from September to February.
Kochi LNG terminal construction to begin by February 2008
It is reported that Japanese company Ishikawajima Harima Heavy, the lowest bidder for the engineering, procurement and construction contract for Petronet's LNG terminal at Kochi in Ernakulam district of Kerala, is expected to begin piling work for the construction of tanks by February 2008.
The contract to be awarded to Ishikawajima Harima has been delayed because of the requirement of raising the ground level at the terminal site in the Puthuvypeen island in Kochi by 3 meters, which is an additional cost necessitating further negotiations with the contractor. Besides, the boundary wall has collapsed in sea erosion requiring reconstruction by 15metre piling and raising columns.
The project is expected to be commissioned by June to September 2011.
JSPL organizes free health camp in Orissa
SNS reported that Jindal Steel and Power Limited has organized a free health and awareness camp at Lunagathani of Chamakpur in Joda block in Orissa recently. Around 700 patients of the entire Chamakpur were thoroughly diagnosed by the company doctors and provided medicines free of cost.
The people of this locality face malnutrition and JSPL immediately responded and organized the health camp.
Mr Ajit Singh Nandrey senior VP of JSPL reminded that the ideology of the company is to put social and rural development in high esteem. Joda block development officer praised JSPL for responding to a noble cause and also asked the people to become health conscious and refrain from drinking impure water.
Norilsk H1 profit surges by 60% YoY
Norilsk Nickel announced that it’s January to June 2007 period net profits went up by 60% YoY to USD 3.79 billion amid record high prices for nickel. Its revenue from metal sales rose to USD 7.65 million up by 82% YoY as compared January to June 2006 period.
Norilsk said that increased earnings have helped Norilsk expand abroad. It agreed in May to buy Toronto based LionOre Mining International Ltd. for CAD 6.8 billion, giving the company mines in Australia, South Africa and Botswana. Norilsk in 2003 acquired a controlling stake in Stillwater Mining Co to add mines in the US and expand beyond Siberia.
Noble International to expand production at Butler
Noble International Ltd in Butler announced that it is adding an automobile bumper production line and a side impact protection system line to its existing facility at Butler in Indiana stet of US. Noble will invest USD 2.5 million in equipment for the new production lines and add 30 new jobs through 2009. The DeKalb County Economic Development Partnership is working with all involved parties to help facilitate this expansion project.
Mr Rick Nafziger plant manager of Noble International said that “Contract work has been transferred to the Butler facility because we have the internal space to expand. Also, our reputation for quality production is outstanding.”
Mr Butch Coburn mayor of the City of Butler said that “We are very pleased that Noble International selected the Butler plant for the expansion. Good paying, skilled jobs are always welcome in our community. The City of Butler will consider tax abatement for the additional investment in the local facility.”
Noble International, based at Warren in Michigan, is one of the world’s largest laser welder player, providing laser welded blanks and tubes, as well as advanced roll formed products to the automotive industry globally. Noble International provides automakers with higher technology, high value products that offer numerous advantages over traditional methods of automotive body construction.
Carrington Wire to close Cardiff facility
It is reported that UK based wire products manufacturer Carrington Wire Limited based at East Moors in Cardiff for the last 20 years is consolidating its UK operations and is concentrating on its factory in Leeds, while closing in Cardiff in December. It has blamed competition from abroad for this action.
A spokeswoman said the company is working with unions, the Welsh Assembly Government and a training company to assist workers. The spokeswoman added that a 90 days consultation on the future of the plant began in June, but the final decision was announced.
Carrington Wire Limited became part of Severstal Metiz a member of Severstal Group. Carrington accounts for 30% of the UK's wire and wire products market, with customers in more than 50 countries in the construction and automotive industries.
Sideruna halts pig iron sale negotiations due to infrastructure hurdles
Mr Reinaldo Torres president of Sideruna said that Brazilian pig iron producer Sideruna has halted talks to sell pig iron production from its Mato Grosso do Sul state plant due to infrastructure hurdles.
Mr Torres told BNamericas that "There is a lack of logistics, it is a complicated situation adding existing highways and rail lines are inadequate for shipping the pig iron to port. We suspended negotiations, not cancelled them. We will wait until December to see if things improve on the logistics side. The pig iron market is very good."
Mr Torres said that negotiations would restart next year. Sideruna has a deal with São Paulo state based steel maker Cosipa to sell 10,000 tonnes per month through 2011.
According to early report, the facility located in Campo Grande city, kicked off operations in June and is currently able to produce 10,000 tonnes per month. Plans include an expansion to 40,000 tonnes per month once Sideruna secures a long term supply deal, which could occur with more than one client.
Sideruna decided earlier this year to shut down its operations in the southeastern state of Minas Gerais and will only produce pig iron from its Mato Grosso do Sul plant.
China eying higher coal prices from South Korean utilities
Bloomberg reported that Chinese coal producers have raised prices for South Korean utilities by 7.5% above contracts concluded in May 2007 with Japanese utilities as the supplies have become tighter. Talks between China and Korea are deadlocked after both sides met at least three times this year to try to agree on the price for 2008 supplies.
Two South Korean utility officials said that sellers, including China National Coal Group, demanded USD 73 per tonne from buyers led by Korea Southern Power Co, up from USD 52.1 per tonne in the year ended June. A Korean offer to match the USD 67.9 per tonne agreed on by Japanese utilities in May 2007 was earlier rejected.
Mr Wu Yuxiang director of Yanzhou Coal Mining Co a unit of China's fourth largest coal producer said that they would not sell the fuel at prices less than USD 80 a tonne.
Mr Fang Xiu'an manager at the international division of China Coal Transport & Distribution Network, an association charged with marketing on behalf of producers said that “The delay is mainly due to the price disagreement. The Koreans would not agree on the higher prices that China wants.''
China is increasing prices after the benchmark at Australia's Newcastle port reached a record USD 72.37 in August 2007 and Indonesian mines missed contracted shipments. Prices have doubled this year as China became a net importer for the first time in January. Buyers Japan and South Korea prefer Chinese coal, because shorter distances make it cheaper to ship than exports from Australia or Indonesia.
South Korean utilities bought 6 million tonnes of coal from China in the year ended June 30. In 2006, South Korea raised imports from all sources by 4% to 80 million tonnes.
Brazilian iron ore exports in September up by 11% YoY
According to Brazil’s trade ministry, Brazil exported 22.79 million tonnes of iron ore in September 2007 up nearly by 11% YoY from 20.55 million tonnes in the same month of 2006.
September 007 iron ore exports were worth USD 891 million in trade revenue for Brazil, compared with USD 787 million in September 2006 and USD 995 million in August 2007.
Brazil had exported 24.99 million tonnes of iron ore in August 2007.
Companhia Vale do Rio Doce accounts for the bulk of Brazil's ore exports.
Gazmetal may go got London listings soon - Report
Times Online reported that Mr Alisher Usmanov, is considering plans to float his Gazmetal mining operation in London next spring. It is thought to be worth about GBP 10 billion.
Mr Usmanov’s plans to float Gazmetal are understood to be at initial stage and he is yet to appoint financial advisers. But he has told colleagues that he would like to list the company on the London market next year.
Gazmetal, which is controlled by Mr Usmanov, reportedly accounts for about 40% of all Russia’s iron ore output.
MMK files paperwork with EPA for steel mill in Columbus
It is reported that Russian steel major MMK, which plans building a USD 1 billion steel mill in southern Ohio, has asked for a permit from the state's environmental agency.
As per report, an air emissions permit application filed with the Ohio Environmental Protection Agency by a consulting firm on behalf of MMK, for a site in Haverhill, about 100 miles south of Columbus.
EPA said that “The details of the application are not released because the company asked it be kept private because it was a trade secret.”
However, the application does not necessarily mean MMK has settled on southern Ohio as the location for the plant.
Coalmine blast kills 7 in Yunnan Province of China
Xinhua reported that a gas blast in a private coalmine has killed at least 7 miners and injured 5 in southwest China's Yunnan Province.
The blast occurred around 6 AM on Saturday in the Shunxing Coal Mine in Fuyuan Township of Qujing City in eastern Yunnan. 27 miners were working underground and 14 people managed to escape. More than 400 rescuers struggled to pull out 7 bodies and 5 miners alive but 1 miner remains missing.
The coalmine, which was built in 1984 with a designed production capacity of 90,000 tonnes, had been ordered to suspend operation and go through renovation after county coalmine administration staffs inspected the mine on Friday, but coalmine managers secretly organized the miners to work in the night.
Local officials are investigating into the cause of the accident.
Godo Steel to control Niigata based rebar maker Mitsuboshi Metal
Nippon Steel group's major electric furnace steel maker Godo Steel announced that it would acquire Niigata based steel bar maker Mitsuboshi Metal Industry by end of November.
Godo Steel subscribed 417,000 share of Mitsuboshi Metal for JPY 4.295 billion through third party allocation controlling 51% of Mitsuboshi Metal.
Godo Steel tries to expand the concrete reinforcing steel bar business while the consolidation could stabilize the market in eastern Japan.
Pan Cheng Gang hot commissions seamless tube mill
Chengdu Iron & Steel Co, under Chinese Panzhihua Iron & Steel Group, reported sound performance. Its hot commission of 159 continuous rolling tube units was successful as it rolled out the first seamless pipe.
The unit, designed with annual capacity of 350,000 tonnes is able to produce seamless tubes I n diameters of 48.3mm to 177.8mm.
(Sourced from Mysteel.net)
Severstal orders for second polymer coating line
FIS reported that Cherepovets based Severstal has signed a contract with Germany’s SMS Demag for supply of the second polymer coating line costing over RUB 1 billion.
The line's capacity is 200,000 tonnes of polymer coated roll per annum.
Auto Mercury Recovery Program in US completes 1 year
It is reported that, under a voluntary national program to remove mercury containing switches from vehicles headed for scrap, in the first year more than 635,000 switches have already been removed from end of life vehicles. Collectively, those switches represent 1,400 pounds of mercury more than the average coal fired power plant emits in a year. The program's primary first year goal enlisting all states to take part has been achieved.
In August 2006, EPA and eight organizations representing states, nongovernmental organizations, steel makers, vehicle manufacturers, automobile recyclers, and scrap metal recyclers launched a program to recover mercury containing light switches from end of life vehicles manufactured prior to 2002 before they are dismantled, crushed, shredded and melted to make new steel. Working with existing state switch-recovery efforts, the National Vehicle Mercury Switch Removal Program has the potential to recover 80% to 90% of available mercury switches, leading to commensurate reductions in air emissions.
A second goal for the first year developing a way to measure overall progress in the program in future years has also been achieved. Progress will be measured by determining the percentage of switches that are recovered each year compared to the number of available end-of-life autos from which switches can be recovered.
Approximately 5,900 automobile recyclers have already agreed to remove and recover the switches before sending vehicles to scrap recyclers, who in turn send the clean cars to steel mills. The mills can then use the cars to make recycled steel without worrying about releasing toxic mercury emissions.
Tenaris opens office at Perth in Australia
It is reported that by creating a commercial presence in Perth, Tenaris looks to better serve its customers and foster the use of its products and services in Oceania. Tenaris has recently established a commercial presence in Perth.
With close proximity to their operations, Tenaris will provide a variety of on site and technical services to facilitate material selection and the introduction of its premium threads. Also, field developments in New Zealand, Australia and Papua New Guinea present significant operational complexity. Numerous offshore projects, plenty of natural gas production and sour service environments determine the high level of performance required from tubular products providers.
Mr Luis Acevedo manager of Tenaris's branch in Perth said that “Our service profile covers production planning for long term agreements and pipe management services for special needs. We also provide technical support in material selection and design, as well as running services associated with the increasing acceptance and use of our Premium Connections in the region.”
Australia has evolved into a natural gas powerhouse. The combination of vast reserves nearly 92 trillion cubic feet, high regional energy demand from nearby developed and growing economies, strong market conditions and institutional stability have resulted in increased investment in exploration and production activities in the country. Western Australia is an ideal location to serve Tenaris customers: the area holds the majority of oil and gas reserves in the region and is home to most Oil and Gas companies.
Tenaris offers its customers a wide range of materials, connections and services. Additionally, Tenaris has initiated a joint development program for specific products and applications pushing existing boundaries in product engineering. In this sense, the company is offering corrosion resistant alloys, TenarisBlue® Dopeless™ technology and special design solutions for geothermal applications.
Palfinger acquires PiR metal in Croatia
Austrian producer of hydraulic systems and cranes Palfinger acquired for an undisclosed amount Croatia's PiR metal, in which it already holds a 20% stake since the year 2001.
PiR metal which employs 95 people and with annual turnover of EUR 5 million, specialize in processing and welding, while further plans include expansion investments. It would be integrated into the Palfinger group.
SeAh Steel to set up bar mill at Nantong with POSCO
YIEH reported that South Korean steel mill SeAh Steel has planned to cooperate with POSCO China to set up a steel round bar mill at Nantong in Jiangsu Province. The new mill is expected to put into production in the next half year of 2008, but the actual date is unknown.
SeAh Steel will hold a 75% stake and remaining 25% will be held by POSCO China.
POSCO China said that this mill will have a capacity of 50,000 tonnes per year and the product will supply to China’s auto parts industry. POSCO China will be the major supplier for the raw material.
Churchill Mining to sell 80% stake in South Woodie to Spitfire
Thomson Financial reported that Churchill Mining PLC would sell its 80% stake in the South Woodie Woodie Manganese project to Australian company Spitfire Resources Ltd to focus on its Sendawar and East Kutai coal projects in Indonesia.
Churchill Mining PLC said that Spitfire will issue 25 million shares after its AUD 4 million initial public offering on the Australian Stock Exchange, for the deal following which Churchill will hold a 49% stake in Spitfire.
Churchill said Spitfire would list on the ASX in the fourth quarter. It will also be entitled to retain a manganese production royalty should a mine be developed.
Evraz may issue Eurobonds to refund USD 1.8 billion loan
RIA Novosti quoted a spokesman for the Evraz Group SA as saying that Evraz Group SA is considering the issue of Eurobonds to refund a USD 1.8 billion loan obtained for the purchase of Oregon Steel Mills.
Mr Pavel Tatyanin president of Evraz said that "We are considering different opportunities to refinance the loan, including through a Eurobond issue. The deadline for refunding the debt is mid May 2008, but we want to do it by the turn of this year."
He added that Evraz’s debt was USD 5 billion as of June 30, of which 60% was long term liabilities.
Evraz completed a deal to buy a 91.5% stake in Oregon Steel Mills, one of the most diversified steel manufacturers in North America, for USD 2.3 billion in January. The company produces a wide range of specialty steel products and is also one of two armor plate suppliers in the United States for Humvee Army jeeps ordered by the US Defense. Evraz had signed an agreement to secure the syndicated loan with Credit Suisse and UBS last December.
Lara and Teck Cominco reach agreement on Araguaia Ni project
BNamericas reported that Vancouver based Lara Exploration has reached an option and JV agreement on its Araguaia nickel project in Brazil's Pará state with Teck Cominco.
Lara in a statement said that under the terms of the agreement, Teck Cominco's Brazilian subsidiary has the option to earn a 60% interest in Araguaia by funding USD 4 million in exploration over three years. Teck Cominco will also pay USD 100,000 upon the signing of the agreement and USD 500,000 upon completion of exploration expenditures.
Upon earning the 60% interest, the company will have a one time option to increase its interest to 75% by funding the next USD 4 million exploration program over a maximum of two years.
Mr Miles Thompson president of Lara said that "Our Araguaia nickel project is adjacent to areas being explored by Teck Cominco, so combining the properties adds significantly to the chances of finding an economic nickel deposit."
Indonesian VS Industry wins coal supply order from TNB Fuel
Thomson Financial reported that VS Industry Bhd’s Indonesian associate company PT VS Mining Resources has won a contract from TNB Fuel Services Sdn Bhd to supply 65,000 tonnes of steam coal to a power plant in Manjung in the northern Malaysian state of Perak. But did not disclose the amount of the contract.
VS Industry in a statement to Bursa Malaysia said that "This is the first contract awarded by a Malaysian based company and marks TNB's confidence in the quality of coal supplied by PTVS Mining. VS Industry is optimistic that there is a large growth potential for the coal mining sector.”
It added that "The success of PTVS Mining in securing significant contracts in Indonesia and Malaysia so far not only justifies VSI's investment in PTVS Mining but will eventually contribute positively to the growth of VSI Group."
VS Mining via its unit PT Berkat Banua has five coal extraction licenses in Indonesia.
US Steel appoint Mr Thompson as GM commercial for Tubular products
United States Steel Corporation announced the appointment of Mr George H Thompson Jr as GM commercial in US Steel's tubular products organization. Mr Thompson will replace Mr W Steven Fowler, who has elected to retire. He will report to Mr Joseph Alvarado VP tubular. Mr Thompson in his new role will oversee tubular product sales. The appointment is effective from October 1st 2007.
He began his career at US Steel in 1987 as a management associate in the tubular products division at the company's headquarters and was promoted to supervisor of business planning at Fairfield Tubular Operations the next year.
Mr Thompson from 1989 through 1999, he progressed through increasingly responsible managerial positions in sales and marketing for tubular and sheet products. In 1999, Thompson was appointed manager-national accounts and was responsible for sales to all of the company's appliance customers. He was named director commercial, tubular products in 2004 before advancing to his most recent position, general manager service centers, electrical, agricultural & industrial equipment in September 2005.
PT Bahtera Alam to invest in coalmining in South Kalimantan
ANTARA News reported that PT Bahtera Alam Tamiang has earmarked USD 11.2 million for investment in a coalmining project and a supporting facilities development program in North Barito district.
Mr Agung Wicaksono manager of Bahtera Alam Tamiang said that the money will not only be used to finance the coalmining project but also a road and special port development program.
He added that the port would be built in Bintang Ninggi village in Central Teweh sub district at a cost of USD 6 million and the road at a cost of USD 5.2 million. Construction of the port in Bintang Niggi village and the proposed 23 kilometers long road would be completed together in February 2008.
Mr Agung said that "The proposed road and port will not only benefit our company but also other firms operating in the area." Therefore, other coal mining companies, namely PT Batara Perkasa, PT Multi Guna and PT Trisula Kencana had signed a MoU on cooperation to use the road to be refurbished by PT BAT.
He further added that the road PT BAT would develop was formerly a project of mining concession holder PT Anugerah Sentosa.
China Resources Power to sell shares to buy coalmines
China Knowledge reported that China Resources Power Holdings Co Ltd plans to sell 200 million shares worth of HKD 5.28 billion at HKD 24.30 each in an indicative range of HKD 23.80 to HKD 24.80 in an attempt to buy coalmines.
Analysts said that the company is seeking to source coal from its own mines to ease the influence of increasing higher coal price.
China Resources Power is a flagship subsidiary of China Resources Co Ltd mainly engages in integration, development as well as China Resources Power Holdings's electric power business. The power provider recently announced that its total net generation in the January to August 2007 jumped by 70% close to 30 million MWH from 17 million MWH in January to August 2006.
Russian Coal refutes selling Stepnoy Pit to Basic Element
FIS reported that Russian Coal officially refuted the information on the sale of the Stepnoi pit in Khakassia to Oleg Deripaska's Basic Element.
The report quoted Ms Zoya Machina head of Russia Coal press service as saying that the companies concluded no agreements on the sale of the assets of the Stepnoi coal pit in Khakassia.
Caledon Resources upgrades Cook coalmine reserves estimates
Thomson Financial reported that Caledon Resources PLC reserves estimates at the Cook coalmine in Australia have been upgraded by 38% to 23.6 million tonnes following further drilling work at the site.
According to the latest figures, which were checked by independent consultants SRK, the mine's estimated resources, based on the measured and indicated categories, were also increased by 39% to 176 million tonnes, tripling the group's overall JORC compliant resources to 416 million tonnes.
Mr Peter Seear COO of Caledon Resources said that “The reserves upgrade added a further four years of mining to our mid term mine plans, with substantial further upgrades to come in future years as drilling continues. Caledon has taken the unusual step of planning its long term mine design and has now developed the mine plan out to 2020 with substantial additional expansion to come.”
Caledon said that sales of coking coal from the Cook mine exceeded 70,000 tonnes in September. The coal was sold at a price in line with industry expectations.
Mr Sukanto loses legal battle over coalmine in South Kalimantan
It is reported that Tycoon Mr Sukanto Tanoto lost his legal battle in the Singapore High Court recently against Mr Edwin Soeryadjaya over control of a coalmine in South Kalimantan.
Mr Kan Ting Chiu justice of Singapore issued his 65 page verdict during a brief court session, handing over copies of the verdict to lawyers representing the two sides.
However, the war between the two business tycoons is probably still far from over. Mr Sukanto can appeal the court decision or pursue another lawsuit in Indonesia.
