Decision on import duty on steel deferred for few days

Zee News reported that although the move of abolishing import duty on steel was differed during the high powered meeting chaired by Dr Manmohan Singh, steel makers have been urged to restrain from increasing prices

Mr Chidambaram finance minister said that though a decision on the rising price of steel and iron has been temporarily deferred, as the steel minister was out of the country, the government is extremely concerned at the rising prices.

He said that he has heard reports that steel manufacturers were considering a price rise and warned that “On behalf of the government I would advice them to observe restraint,”

The meeting was convened to discuss measures to combat inflation, to rein in which the government’s Left allies today gave the administration two weeks.

As per reports, decisions on steel and iron ore exports will be taken after Mr Ram Vilas Paswan union steel minister returns to New Delhi. The commerce ministry is likely to broker a meeting between steel makers and iron ore miners to sort out differences between the two sides over an export duty on ore and its supply to domestic steel makers at a lower rate.

FIMI asks to bring steel producers under tax net

BL reported that with the Indian steel industry’s campaign on curbing iron ore exports, Indian iron ore miners retreated that India has a surplus of 112 million tones of iron ore and asked the government to determine actual production by steel utilities to bring them under the tax net for augmenting state revenue.

Mr RK Sharma secretary general of the Federation of Indian Mineral Industries said "Ministry of Finance will have to find out real position and take corrective measures. Bringing them into tax net will bring enormous revenue to the government, both state and center.”

He pointed out that, if despite a surplus of iron ore, steel makers were claiming that there is shortage of the mineral and then it is imperative to find out where this quantity of ore, capable of producing 15 million tonnes of crude steel, was going.

Mr Sharma argued that there are two possibilities; either the steel or sponge iron utilities were under reporting their production or there was massive illegal production of the alloy. He said “"If any of these two or both the scenarios are true, there is massive evasion of excise duty, sales tax, VAT, corporate tax etc.”

Mr Sharma pointed out that, while the mining industry is bound to correctly disclose the quantity of iron ore produced by them to the Indian Bureau of Mines, FIMI was unaware of any such statutory provision in case of steel or sponge iron makers. He told PTI that "If not, it is worth consideration of the government whether should not such a statutory stipulation be made to avoid such mud slinging and defaming the iron ore mining industry from time to time?"

NMDC mines hit by Naxal protest

BS reported the strike called by the Naxalites in Dandakaranya zone in protest against the killing of 17 rebels in an encounter near Pamed in Bijapur district recently crippled the transportation of iron ore from country’s largest iron ore producer and exporter, the National Mineral Development Corporation on March 31st 2008.

Sources said even the mining works in the NMDC was affected as workers did not turn up for work fearing violence.

As per report, railway also suffered loss as no trains plied on the Visakhapatnam to Kirandul section today as precautionary measure to deal with the bandh. About two dozens rakes daily ply on this section transporting iron ore from NMDC’s Dantewada facility to Visakhapatnam from where it is shipped to Japan and other countries. This is the second time in a week when transportation of iron ore was disrupted. Earlier, the rebels had called for bandh on March 26th 2008 on the same issue.

Iron ore transportation by road was also crippled as transporters preferred to keep the vehicles off the road.

BSL to set up auto steel unit in Chennai

Bhushan Steel Limited has announced that it will invest INR 5 billion in a new unit in Chennai. The unit, with a capacity of 0.5 million tonnes per annum, will be operational by 2010.

Mr Nittin Johari CFO of Bhusan Steel said that "We are setting it up basically for the automobile industry and this will take 2 to 2 and half years from now."

He said that “We are planning to manufacture value added products such as cold rolling, coated tubes, galvanized steel products catering to the automotive sector in the southern region.”

He added that “We are in talks with State Industrial Promotion Corporation of Tamil Nadu authorities to identify 60 acres to 100 acres of land for the same on the Bangalore Highway beyond Sriperumbudur and are waiting for the SIPCOT response.”

The new unit will be funded through a mix of internal accruals and debt.

Huge iron ore, coal and bauxite reserves found in Chhattisgarh

IANS reported that mining officials have found massive fresh stocks of iron ore, coal and bauxite in Chhattisgarh. A survey conducted by the directorate of geology and mining found an estimated 40 million tonne coal reserves in Raigarh district and about 20 million iron ore reserves of the finest quality in Chhattisgarh’s southern hilly region of Dantewada and Kanker districts.

The coal has been found in Gare Pelma stretch in Raigarh district while iron ore stocks are located in Kamalur, Gondapal, Pendawar and Masodi villages in Dantewada district close to Bailadila hills known for India’s finest quality iron ore stocks.

Huge iron ore reserves have also been located in Kanker district's Taroki, Tumapal and Hurtarai villages. Directorate officials confirm that huge stocks of bauxite have been found at Mainpat in Surguja district.

Mainpat, known as Chhattisgarh's hill station, is already feeding bauxite to Sterlite group controlled Bharat Aluminium Company and findings of new stocks is likely to encourage metal and mining firms to bring in more investment to the state.

An official said that "The directorate carried out a survey of about 1,212 square kilometer areas of state's various districts during first 10 months of the fiscal 2007-08 and it has ended up with a huge positive outcome in findings of coal in the state's northern region and iron ore in the southern forested belt."

Officials said that it will take another 3 to 4 years to start mining from newfound locations.

Fresh measures proposed to rein in steel prices

ET reported that Indian steel ministry has proposed a series of fresh initiatives to control upsurge in domestic steel prices, in addition to likely reduction in steel import duty from 5% to 0% soon.

The measures are reported to include
1. Cutting duties in inputs like refractories, zinc and met coke
2. Lowering of excise duty on the product from present 14% to 8%
3. Curbing iron ore exports through higher export duty
4. Introducing duty on steel exports
5. Reducing rail transportation charges

The report cited an official as saying that “Rising steel prices is high on government agenda of measures to contain inflation. While some movement has been made by cutting down export incentives for steel, other fiscal measures would be considered to bring down prices in the short term.”

Mr Mukherjee inaugurates SAIL's tube well project in Bengal

Mr Pranab Mukherjee union external affairs minister has inaugurated Steel Authority of India Limited's tube well project at Mondalsar village in Khargram block of Murshidabad, envisaging an erection of 80 hand pumps at Khargram and another 20 at Jangipur block.

The total cost of the two projects undertaken by SAIL is about INR 6 million. The project will help in alleviating the problem of non-availability of potable water being faced by the villagers in these areas. Of the 25 blocks of this district, 19 are hard pressed for safe potable water.

Mr Mukherjee commended SAIL's prompt action in solving the problem. "It must be remembered that every major event has a humble beginning. Though this might seem a small step when viewed in the context of the human development index of the country, it is significant since it reflects the will to fulfill one's social obligations.”

The minister also dedicated hospital equipment and a mobile medical unit donated by SAIL as part of its efforts to improve the living conditions in mofussil areas, to the people of Jangipur.

Mr V Shyamsunder MD of SAIL's Durgapur steel plant expressed satisfaction at being able to extend a helping hand to the people of Murshidabad.

Boiler explosion in steel mill kills 3 in Bangladesh

AHN reported that at least 3 workers were killed and 15 others were wounded when a steel mill factory boiler exploded on Monday morning in at Kanchpur in Narayanganj district of Bangladesh.

The incident happened Sunday evening when three explosions were heard inside the factory followed by the sudden switching off of all lighting. Three bodies were recovered by the Fire Service rescuers and 15 others injured were sent to different hospitals in the area.

According to local television news agency in Bangladesh, rescue operation has been discontinued because it is too dark in the area and death toll might increase.

The factory was reopened two months ago after it was closed for a long time and he explosion might have caused due to the worn out boiler machine.

The factory was badly damaged as it caught fire due to the explosion. Several houses near the factory were also damaged. Fire fighters rushed to the spot and brought the fire under control after a two hour long effort.

Auto component industry reeling under high steel prices

BL reported that the recent price increase in steel has sent shivers down the spine of the steel consuming industry as it witnessed a price hike of 25% during the last 3 months.

There are 3 categories of steel used by the automotive industry, flat, long and pig iron. While the flat and long products witnessed an increase of 25%, prices of pig iron have gone up by as much as 40%. Worse, industry fears another round of prices hikes about 7% to 10% in the beginning of next financial year.

Mr Srivats Ram chairman of the Southern Region of Automotive Components Manufacturers’ Associations said that around 70% of the cost for the automotive industry goes for bought out items. Steel accounts for most of it.

Mr Ram said that "There has been a reduction in profitability of companies for successive quarters, to the tune of 3% to 4% due to rupee appreciation, even prior to the steel increase price. The steel increase is on top of this, which will severely affect the fourth quarter of this fiscal and first quarter of next fiscal."

Mr Ram said “There are a few thousand small and medium manufacturing units consuming steel and to them the steep price increase is unbearable. Soon, it would pose a threat to the very existence of the businesses, as the industry has already been reeling under pressure due to the higher cost of finance and diminishing volumes.”

ACMA has close to 600 members.

Mining has displaced 2.6 million people in India – Study

According to a book titled "Rich Land, Poor People - Is sustainable Mining Possible?" by Centre for Science and Environment, nearly 2.6 million people have been displaced between 1950 and 1991 in India due to mining.

According to excerpts from the book, the mining projects gave employment to only 560,000 people but displaced 2.6 million. Only 25% of the total displaced people have been rehabilitated and 52% of the displaced population belonged to tribal communities.

The Book said "For every 1% that mining contributes to India’s GDP, it displaces three to four times more people than all development projects put together. An estimated 164,000 hectares of forestland has been diverted for mining in India. Iron ore mining used 77 million tonnes of water in 2005-06, enough to meet the daily water needs of more than three million people. The mining of major minerals generated about 1.84 billion tonnes of waste in 2006, most of which has not been disposed off properly. Every tonne of coal extracted generates three to four tonnes of waste."

The book added that extensive mining operations were carried out in 50 districts of India and 30 of them were most backward. The contribution of mining to the national GDP was 2.2% to 2.5%.

DEPB withdrawal not to affect Indian cement makers

DNA Money reported that the withdrawal of Duty Entitlement Passbook benefit for exporters, as part of the government's efforts to rein in inflation, may not be enough to bring down cement prices. In fact, if cement dealers and analysts are to be believed, prices might actually be hiked by INR 3 to INR 5 per bag from April 2008.

Given that cement export volumes are rather thin, the drawback amount is not difficult for the manufacturers to absorb. To top it all, domestic demand is quite strong, which means the companies need not reduce prices at all.

Mr HM Bangur president of Cement Manufacturing Association and also MD of Shree Cement said that "There would be no major impact of DEPB on cement industry. The demand for cement has increased almost 9% to 10% compared to last year." Mr Bangur said that it was not the cement companies but market forces who decided cement prices.

Mr AK Saraogi CFO & president of JK Cements said that "DEPB withdrawal has hardly any impact on us as we are not exporting cement. But, there is good demand for cement, which may lead to increase in prices next month."

Industry experts believe a price hike is inevitable in view of the 10% to 15% hike in coal prices in the past few months, which is eating into the margins of cement manufacturers. The cost of coal is around 12% of the total operating cost of cement firms.

TN industrial firm observes fast against steel price hike

UNI reported that Tamil Nadu Grill Industrial Progress General Welfare Association has observed a token fast in protest against the increasing price of iron and steel.

The association, led by its state president Mr K Govindarajan, has demanded that the centre and the Tamil Nadu government should take necessary steps to control the price of iron and steel.

They also sought concessional power tariff and provision of getting government related jobs to save the industry.

JSW Steel not impacted by end of tax refunds

It is reported that one of the biggest Indian steel exporter JSW Steel is not likely to be effected by withdrawal of DEPB

Mr MVS Sheshagiri Rao finance director of JSW Steel Limited said that it does not expect to be hurt by the withdrawal of tax refund schemes for exports as it sees benefits from other schemes making up. Mr Rao said that "Basically, DEPB will affect, but there are other schemes like the Duty Free Import Authorization, which can help."

He said that JSW exports around 600,000 tonnes of steel annually, which accounts for 30% of its total revenue. It was entitled to the DFIA benefit, which will enable it to import raw materials such as zinc without paying duties.

He added that "If you take that into account, it would be equal or more than the DEPB benefit. However, unlike DEPB, which is tradable, DFIA is only for actual buyers. And, for product, which does not have demand in India, we can still continue to export. As on date, I'm not seeing any impact, unless the government takes some more measures."

The tax refund scheme for exporters Duty Entitlement Pass Book was withdrawn last week for a range of products including steel, cement, manganese, ferrochrome and non basmati rice.

MSP Steel gets license for MP limestone mine

MSP Steel & Power announced that it has been granted a prospecting license for a captive mine in the rich limestone belt of Katni in Madhya Pradesh, which is spread over 683.47 hectares.

In October 2007, MSP Steel had signed an agreement with the Madhya Pradesh state government for setting up a 2 million tonne clinker and cement plant.

MSP Steel & Power believes that the area granted contains sufficient deposits to meet its complete requirement of limestone through captive mines for the proposed project.

DEPB scheme extended till further notice

The Duty Entitlement Pass Book Scheme, which was valid for shipments up to March 31st 2008 has been extended till further orders. This will facilitate shipments to be allowed under the scheme by the field formations of customs beyond March 31st 2008.

Directorate General of Foreign Trade vide notice No 134 (RE-2007) /2004-2009 dated March 29th 2008 said that “In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy 2004-2009, the Director General of Foreign Trade hereby makes the following amendments in Handbook of Procedures Vol I.”

It said that “Last sentence of paragraph 1.1 stands amended as follows. These compilations, as amended from time to time, shall remain in force until 31st March, 2009 except DEPB scheme which shall continue to be operative till further orders.”

Incidentally, most of the steel items have been temporarily withdrawn from the scheme last week.

L&T bags INR 576 crore LOBS plant order from HPCL

It is reported that Larsen & Toubro has awarded an INR 576 crore order by Hindustan Petroleum Corporation Limited for a 200,000 tonnes per annum lube oil base stock plant, as a part of their quality up gradation project in Mumbai on lump sum turnkey basis.

The plant will consist of raffinate hydro treating unit, mobil selective dewaxing unit and hydro finishing unit.

The scope of work includes residual process design, detailed engineering, procurement, supply, transportation, storage, fabrication, inspection, construction, installation, testing, mechanical completion, pre-commissioning, commissioning and performance guarantee test runs for the proposed project.

Jacobs Engineering India has been retained by Hindustan Petroleum Corporation to provide services for project management consultancy and ExxonMobil Research & Engineering of USA is the process licensor.

Update on solar power in India

It is reported that a total of 33 grid interactive solar photovoltaic power plants have been installed in India with financial support from the government. These plants, with aggregate capacity of 2.12 MW, are estimated to generate about 2.55 million units of electricity in a year.

In addition, around 1.45 million decentralized off grid solar photovoltaic systems aggregating to about 125 MW capacity have been installed in India, which is capable of generating about 150 million units in a year.

Further, a collector area of about 2.15 million square meters has been installed for solar water heating applications. The amount of energy generation depends on the use pattern of the system and climate of the place. Typically, a solar water heating system with 2 square meters of collector area can generate energy equivalent to up to 1500 units of electricity when the system is used for about 300 days in a year.

Centre has taken several measures to reduce the cost of solar energy systems, which include
1. Research & development to improve their performance and reduce the consumption of materials
2. Subsidy on selected solar energy systems
3. Interest subsidy to provide soft loan to users and the manufacturers
4. Concessional or nil import duty on some of the raw materials, components and products
5. Excise duty exemption
6. 80% accelerated depreciation in the first year etc

Many incentives have been given to private agencies for research and generation of solar energy. All academic, research institutions and industries, including the private institutions are engaged in research in solar energy. They are eligible to receive grant for undertaking R&D. In addition, expenditure on R&D by the private industries is eligible for deduction from profits under Income Tax Act. Under grid interactive solar power generation, private companies are eligible to get production based incentive for power fed to the grid from megawatt capacity solar power plants set up on build own and operate basis in the country.

BHEL bags INR 550 crore export order from Koniambo Nickel

It is reported that power equipment maker Bharat Heavy Electricals Limited has secured an INR 550 crore export order for supply of boilers from Koniambo Nickel SAS, an overseas JV of Switzerland based mining group Xstrata PLC and a local company in New Caledonian.

The contract envisages supply of 2x135 MW environment friendly circulating fluidized bed combustion boilers and auxiliaries. The equipment to be supplied against the order would be fully compliant with global standards.

BHEL, which is targeting a 6 fold increase in its physical exports by 2012, supplies equipment to power projects in Indonesia, UAE, Libya, Kuwait Myanmar New Zealand and Greece among others.

NHPC commissions all 3 units of Teesta power project V

National Hydroelectric Power Corporation last week announced that it has commissioned all the 3 units of 510 MW Teesta stage V hydroelectric project in Sikkim. As per report, two of the three units of 170 MW each are expected to become commercially operational shortly, while the first unit is already functional.

The project would generate 2,573 million units of energy annually. The cost of the project is about INR 2,650 crore and the provisional tariff approved by the Central Electricity Regulatory Commission is INR 1.62 per unit.

Teesta V is 1 of the 6 hydro projects identified for execution by NHPC in Sikkim. It has added 1,420 MW of generation capacity in the last 1 year with the commissioning of 390 MW Dul Hasti project in Jammu and Kashmir, 520 MW Omkareshwar project in Madhya Pradesh and Teesta V. Teesta V project would benefit states of Bihar, Orissa, Jharkhand, West Bengal and Sikkim.

NHPC said that the mega hydroelectric project has been commissioned in the shortest possible time in spite of many geological problems and vagaries of nature like flood in Teesta River, landslides and unforeseen geological surprises experienced in dam, tunnel, surge shaft and dam abutment, and so on.”

DEPB withdrawal may increase SEZ input costs

BS reported that suspension of the Duty Entitlement Passbook benefit against export of a number of items is likely to effect the economics for Special Economic Zones to some extant. As per report, the new special economic zones will be hard hit by withdrawal of DEPB on steel and cement.

Currently, they get cement and steel at lower prices as supplies to SEZs earn DEPB. The construction materials can get dearer for them as the steel and cement producers can not get DEPB and so will supply to SEZ at the same prices that they sell in local markets.

TATA Steel lifts All India Inter Steel Plants Cricket Trophy

TATA Steel defeated Steel Authority of India Limited’s Durgapur Steel Plant to lift the All India Inter Steel Plants Cricket Tournament trophy which concluded at the Keenan Stadium on March 30th 2008 by 57 runs.

DCM Engineering to invest in new plant in Chennai

Auto components manufacturer DCM Engineering has announced that it will invest INR 200 crore for setting up its new facility in Chennai to meet growing requirement of automotive industry. With the setting up of plant in Chennai, it also hopes to cut down the input costs, which are higher in Punjab at present.

Mr Keshav Sachdev chief mentor of DCM Engineering said that "A piece of 50 acres of land has been acquired in Chennai for setting up new facility, which will manufacture engine blocks. It will be our second plant after Ropar in Punjab."

He added that the facility, with proposed capacity of 50,000 tonnes units per annum, would be operational within 2 years and cater domestic and export markets.

Mr Sachdev said that in addition to it, the automotive market has expanded in southern states with several big companies setting up their production units in there. He added that the setting up of new unit would also enable the company to meet the requirement of the industry in south India.

DCM Engineering, post expansion, it is looking to double the turnover to INR 700 crore from INR 350 crore at present. In domestic market, DCM supplies its products to Maruti Udyog, Hyundai Motors, Mahindra & Mahindra, International Tractors Limited and Ashok Leyland etc.

Forging firms to take steel price hike to MRTPC

It is reported that India’s forging industry has threatened to approach Monopolies & Restrictive Trade Practices Commission against steel manufacturers’ move for increasing steel prices.

As per report, Association of Indian Forging Industry has also given a memorandum to the steel ministry seeking its support to get manufacturers to bring down steel prices at a more rational level.

Mr Vidyashankar Krishnan president of Association of Indian Forging Industry said that "The rise is almost 33% in the past 8 weeks, which has hit the forging industry. If this continues, we will have to approach MRTPC."

He added that if buyers refuse their shipments, the forging units would have no other option except to put their units for sale.

Sterlite industries bags 'State Safety Awards'

Sterlite Industries India Limited has won the prestigious 'State Safety Awards' for the year 2005 from the Inspectorate of Factories under Group A in all 3 schemes.

Sterlite Industries received the second prize in scheme I for the highest reduction in accident rate when compared with 2004. The weighted accident frequency rate in 2004 was 1.4241 and in 2005 was 0.2718.

Sterlite received the second prize in scheme II for the lowest accident frequency rate for the year 2005 at 0.2718 and first prize under scheme III for the longest accident free man hours for the period May 25th 2005 to December 8th 2005 at 3.83 million man hours.

Mr Kishore Kumar CEO of Sterlite Industries India Limited said that these awards were being given to Sterlite in recognition of its commitment towards safety and continual improvement on our safety standards.

Mr T Sargunan GM health safety at Sterlite received these awards from Mr TM Anbarasan state labor minister at a function jointly organized by the Chief Inspectorate of Factories, along with the National Safety Council, Tamil Nadu Chapter at Chennai on March 25th 2008.

Gujarat NRE lines up USD 425 million expansion plan

DNA reported that Gujarat NRE Coke is planning to invest USD 425 million in the next three years to develop its mines.

The low ash metallurgical coke maker will increase its production from its NRE no 1 mine to 4.5 million tonnes from the current 0.5 million tonnes by fiscal 2012. It is also planning to increase production from Avondale and Elouera mines, located in Australia to 2.5 million tonnes by fiscal 2013.

Gujarat NRE will also increase its coking coal production to 7 million tonnes from Australia by fiscal 2013 from 1 million tonnes currently. It has coke manufacturing facility of over 1 million tonne and has captive coking coal mines in Australia with reserves of approximately 560 million tonnes.

M&M inks MoU for additional investment in Chakan plant

Mahindra & Mahindra Limited announced that its has signed a MoU on March 31st 2008 with the Government of Maharashtra to further boost their investment at its upcoming Chakan Greenfield project.

Mahindra & Mahindra will invest an additional INR 1500 crore to the already earmarked INR 2500 crore and the total sum of INR 4000 crore will be utilized towards the development and production of all vehicles slated to be rolled out from the proposed Greenfield facility for manufacturing of medium and heavy commercial vehicles, to be produced by its JV.

Mr Keshub Mahindra chairman of the Mahindra Group said “M&M's new investment at the upcoming Chakan facility, besides contributing to the state's economic growth will also produce jobs for the locals in that region. We have always been at the forefront to add value to the Indian automobile industry. This project is in keeping with this tradition of mutual growth."

3 hydel projects of Narmada Valley to be assigned to NHEDC

PTI reported that 3 proposed hydel projects of Narmada Valley would be assigned to National Hydro Electric Development Corporation. These include 20 MW Raghavpur project, 25 MW Rosara project and 20 MW Basania project.

The decision was taken at a meeting of the Narmada Valley Development Authority presided over by Mr Nagendra Singh chairman of Narmada Valley Development Authority.

After the meeting, Mr Singh said that 100% exploitation of the existing hydel power generation capacity of Narmada Valley on top priority basis is the need of the hour. He added that the hydel power projects of Narmada Valley would play the most important role in getting the better of present power shortage and meeting the future requirements.

The meeting also endorsed a proposal for appointment of a quality monitor for independent enquiry of the rehabilitation works related to Narmada Valley Projects. The meeting was also informed about administrative sanction of INR 30.6 million for survey of Upper Budhner project in Dindori district, INR 40.84 million for Ataria project in Jabalpur district, INR 70.61 million for Shershakkar Macharwa project in Narsinghpur district and INR 30.22 million for survey of Dudhi project in Hoshangabad district.

National Hydro Electric Development Corporation is a joint undertaking of Madhya Pradesh government and National Hydro Power Development Corporation.

MIC Electronics bags INR 45 crore order from DMRC

MIC Electronics Limited has secured Delhi Metro Rail Corporation order for installation and maintenance of 25 full colors, day and night light emitting diode video display boards at 8 metro stations on Line 3. The order is worth INR 45 crore, to be executed in the next 6 months.

These light emitting diode displays will be networked and controlled from a single location and are considered the first such deployment for Indian Railways.

MIC Electronics in a statement said that its subsidiary InfoSTEP Inc has jointly developed a global digital billboard exchange solution called Globix that helps companies to reach out to most optimal out of home advertisement locations. This is suitable for target brand advertising. Globix will be launched with an initial database of all MIC’s digital billboard locations starting with Delhi Metro Rail stations at New Delhi.

Nippon Steel confirms CAPEX for Usiminas expansion

Brazilian Usinas Siderurgicas de Minas Gerais, which is an equity method applicable company of Nippon Steel Corporation, has held a series of meetings of the board of directors this month to discuss its system development plan which was announced on August 9th 2007 and resolved as follows

1. Construction of No 2 CGL at Unigal
“With the rapid expansion of automobile production and the increasingly promoted anti corrosion need in South American countries, the demand for galvanized sheet steel for automobiles has sharply increased in the region. Unigal which is a joint venture established by Usiminas and Nippon Steel, will construct No 2 CGL to meet the demand.”
Production capacity – 550,000 tonnes per year
Site location - Usiminas Ipatinga Works
Operation startup - End of 2010

2. Capacity Expansion of Plate Mill at Ipatinga Works
“Usiminas, the only producer of plate products in South America, will expand the capacity of the plate mill at Ipatinga Works to meet the increasing demand for plate products in energy related use.”
Capacity to be increased - an increase of 500,000 tonnes per year
Site location - Usiminas Ipatinga Works
Operation startup - Middle of 2010

3. Construction of New Hot Rolling Mill at Cubatao Works
“A state of the art hot rolling mill will be constructed to meet the high and middle grade steel demand in the future, and also the need for high grade steel for energy related applications. On March 17th 2008, Usiminas and Mitsubishi Corporation signed a contract for the supply of a new hot rolling mill. Actual construction is scheduled to start in August 2008.”
Production capacity - 2.3 million tonnes per year in the first phase
Site location - Usiminas Cubatao Works
Operation startup - April in 2011

4. Construction of the New Steelworks for Semi Finished Steel
“As for the crude steel capacity increase, the Development Plan includes Ipatinga Works expansion and construction of a new steelworks for semi-finished steel. Usiminas will continue its preparatory study of the new steelworks for 3 million tonnes per year of semi finished steel with the current proposed location being adjacent to Cubatao Works where it is considered advantageous because it will be steadily supplied with iron ore from the J Mendes Iron Mine which Usiminas acquired in February 2008.”

Anglo American acquires control of the Minas Rio and Amapá project

Anglo American announced that it has signed an agreement to acquire a 63.5% shareholding in a new company IronX, which will own MMX's current 51% interest in the Minas Rio iron ore project and 70% interest in the Amapá iron ore system.

As per release Mr Eike Batista chairman & CEO of MMX and certain other MMX shareholders to acquire a 63.5% shareholding in a new company IronX which will be demerged from MMX and will own MMX's current 51% interest in the Minas Rio iron ore project and 70% interest in the Amapá iron ore system and Mr Eike Batista will be chairman of IronX.

Anglo American has committed, after completion of this transaction, to extend an offer to the minority shareholders of IronX at the same price per share paid to the Selling Shareholders, the successful completion of which would result in Anglo American owning 100% of the Minas Rio project, 70% of the Amapá system and 49% of LLX Minas Rio, the owner of the Port of Açu.

These two projects, together with the planned Kumba expansions, will significantly increase Anglo American's participation in the seaborne iron ore market to approximately 150 million tonne per annum by 2017 in line with Anglo American's strategic goal to become a significant player in the iron ore industry.

Wheeling-Pittsburgh to shut a CR and 3 HDG lines

Esmark Incorporated’s subsidiary Wheeling-Pittsburgh Steel Corporation announced its intentions to close the Allenport Pennsylvania based cold rolled production facility and idle two of the three galvanizing lines located at its Martins Ferry in Ohio steel processing plant.

The release said that “The subsidiary has commenced issuing notice of these planned actions today under the Worker Adjustment and Retraining Notification Act.”

It added that these actions are consistent with the Company's restructuring plans first announced in November 2007.

Gerdau denies interest in ArcelorMittal's Gandrange

Brazilian steelmaker Gerdau denied media reports that it is interested in buying ArcelorMittal's Gandrange plant in France, which faces a partial shutdown.

Gerdau issued a brief statement saying that "Gerdau Group informs that it has no interest in buying the Gandrange plant from ArcelorMittal."

It provided no additional details.

It was reported that Gerdau held talks with French government officials on the possible purchase of an ArcelorMittal. In a statement, the ministry confirmed French media reports that Gerdau was interested in buying the plant in Gandrange, in northeastern France. It has not yet made an offer for the plant, the ministry said.

ArcelorMittal to open new steel service centre in Germany

It is reported that ArcelorMittal plans to make investment in a new service center in Germany.

As per report, ArcelorMittal will invest EUR 23 million in carbon flat steel service centre with 200,000 tonne per year to replace the old 90,000 tonne per year service center in Ludwigshafen.

The construction of the new plant will start in October and planned to complete and open in the second quarter of 2009.

Newcastle thermal coal price drops for 6th week

Bloomberg reported that thermal coal prices at Australia's Newcastle port dropped for a sixth week as disruptions to exports eased in Queensland and China and amid weaker demand from Northern Hemisphere buyers after winter.

According to the globalCOAL NEWC Index, the weekly index for power station coal prices at the New South Wales port dropped AUD 4.86 or 3.9% to AUD 119.50 a tonne in the week ended March 28th 2008.

Mr Gerard Burg a minerals and energy economist at National Australia Bank Ltd in Melbourne said that “Supply conditions are a little less tight now than they were a few weeks ago. That would act to cool the market a bit, particularly at a time when we might see a little less demand out of northern Asia just from the point of view of seasonal conditions.''

The Hunter Valley Coal Chain Logistics Team, coordinator of coal transportation through the rail and port system from the Hunter Valley to Newcastle said that “Forty two vessels were waiting off Newcastle to load coal as of midnight March 30.”

ArcelorMittal denies Gerdau offers for Gandrange plant

It is reported that ArcelorMittal has no plans to sell its Gandrange plant in eastern France and has not received any offer for the site.

An ArcelorMittal spokeswoman told Agence France-Presse that “The question of selling Gandrange is not on the table.”

She added that “ArcelorMittal has not received any offer.” She added that Gerdau has not submitted an offer.

The local authority in Amneville in the Moselle region had said on Sunday that Gerdau was a candidate to acquire the steelworks and had presented its project to France's finance ministry.

New automation system installed at Cogne by Tenova

At the beginning of this year Tenova installed and started up the new EAF automation and control system at the Cogne ACCIAI SPECIALI steelworks at Aosta in Italy.

The EAF was stopped on December 22nd 2007 and Tenova installed the PLCs, the motor control center and the man machine interface units.to realize a specific process control system tuned for the production of stainless steel. On January 7th 2008 the production has been regularly started up again at immediate full production capacity

The contract was awarded last summer and also includes automation for the scrap yard, revamping the one for the ladle furnace and ancillaries as well as supplying a “GATE” system to collect data from the steelworks for transmission to the management SAP.

The global project is open to future extensions to complete the integrated automation upgrading process throughout the steelworks, including the AOD converter, casting pitsn fumes exhaust systems and connection with continuous casting.

Danieli to supply minimill to Estructurales Corsa

It is reported that Danieli will supply a new complete 1 million tonne per annum minimill to Estructurales Corsa a joint venture between Brazil Gerdau and Mexico Aceros Corsa. Product range will be 4" to 24" wide flange beams, 4" to 8" standard beams, 8" to 10" channels, 4" to 8" angles and 7" to 12" flats. Startup of the new minimill is scheduled for early 2010.

The complete minimill for medium size long products will be made up of:
1. 1 million tonne per annum steelmaking and continuous casting plant for billets, blooms and beam blanks;
2. 800,000 tonne per annum medium section mill for production of up to 24" beams and large size profiles.

Danieli Centro Combustion will supply the 180 tonnes per hour walking beam type reheating furnace. All electricals and an advanced automation system for the whole minimill will be from Danieli Automation.

The meltshop will feature a 180 tonne EAF equipped with the Consteel system and designed to operate on a 100% scrap charge basis. The EAF will also be equipped with multiple point oxygen and carbon injectors, provided with a fully independent valve regulation system for each injection unit. The melting and refining plant will also include a ladle furnace, material handling system and fume treatment plant designed to serve both melting and refining units.

The 5 strand, 10 meter radius super flexible beam blank conticaster, designed for productivities of over 200-tph, will be equipped with hydraulic oscillators and will be connected with the rolling mill for hot charging purposes. The process and operation results will be achieved thanks to a Danieli level 1 and level 2 full automation system which will fully guarantee automatic process setting and control for the new meltshop.

The medium section mill will be based on the Profile Sizing Process, the latest Danieli innovation. Located after a reversing breakdown stand, the PSP reversing intermediate and finishing sizing line will be made up of four Stand Core Concept super heavy duty universal rolling stands, with automatic fast changing of rolls and guides package. Mill's finishing end includes cooling bed, on-line jumbo-size straightener, cutting to length, automatic stacking and collecting facilities.

Construction of container terminal in Vietnam put on hold

It is reported that the construction of Vietnam’s first international container terminal has been put on hold to pave the way for the construction of a steel mill by South Korea’s POSCO throwing up a good deal of debate in the country.

The country’s national shipping line Vinalines has been urging the Government to build a container shipping terminal of international standard to meet the growing demand and to cut down on costs. While the volume of containers trans shipped through Vietnam’s ports is increasing by an average of 18% to 20% every year, large volumes of Vietnam’s exports in containers to Europe and North America are also trans hipped through Hong Kong and Singapore.

The transshipment of containers through Hong Kong or Singapore, according to one estimate, adds to the transport costs, thus reducing Vietnam’s international competitiveness.

Infrastructure fix needed to boost Australian mining competitiveness

Mr Bede Boyle a coal industry analyst said that the Hunter's mining companies will continue losing millions of dollars worth of business to their Indonesian competitors, until the region's rail and port constraints are addressed.

Mr Bede Boyle highlighted his concerns at a mining conference at Pokolbin said that fixing the region's infrastructure bottlenecks is a matter of urgency.

He said that "We are losing business to Indonesia because Indonesia can develop their mines and very simple barging in rivers and they can actually bring new production on much quicker than we can in Australia. We are bound by the planning laws and the time that it takes from lodging development applications to when we get development approvals."

Multi million dollar plans have been approved to address both port and rail delays in the Hunter but the work cannot start soon enough.

Hyundai Heavy new technology slashes shipbuilding time

It is reported that Hyundai Heavy Industries has developed a new technology that makes it possible to launch a completed ship while continuing shipbuilding work at the same dock.

A company source said that "The new technology is expected to help reduce the terms of works by almost 20 percent because we no longer have to stop building ships to launch a completed ship. The number of days working at a dock will decrease by 13 days from 70 and it will make it unnecessary to remove and install again various facilities and equipment."

Hyundai Heavy Industries has used the technology since last May to build seven ships including a 10,000 TEU container ship at the third dock of its Ulsan shipyard. It also registered the patent in Korea in January, and is now working to apply for not only an international patent but also separate patents in each foreign country.

Hyundai Heavy Industries said that it is considering using the technology at its 10th dock, which is scheduled to be completed in October, as part of its plan to gradually expand the use of the technology.

Territory resources lifts its stake in Olympia Resources

It is reported that Territory Resources has lifted its stake in mineral sands producer Olympia Resources, following Olympia's rejection of its AUD 15.5 million take over bid.

As per report Territory has increased its share holding in Olympia from 36.41% to 38.2%. The increase follows Territory's offer of 10 cents Olympia share, based on its share price of 6.8 cents, which was rejected by Olympia based on a valuation by independent expert BDO who assessed the preferred value of shares were in the range from 21 cents to 25 cents.

Territory already has a 36.41% holding in Indonesian focused Olympia and has a substantial interest in another mineral sands producer.

Territory's offer of 10 per Olympia share will remain open until April 26th 2008.

Rautaruukki to deliver structures for Hudälven Bridge in Sweden

Rautaruukki will supply the steel structures for the bridge crossing the Hudälven River about 120 kilometers north of Gothenburg in Sweden. When built, the Hudälven Bridge will be 600 meters long, 18 meters wide and span the river at a height of 50 meters. The contract is valued at around EUR 9 million.

Delivery and installation, which is also part of Ruukki’s contract, are scheduled for 2008/2010. Delivery consists of 2 800 tonnes of steel structures, which will be made at Ruukki’s Sandnessjøen unit in Norway.

The bridge is part of the Swedish Road Administration’s E6 road project. Ruukki will work closely with the main contractor NCC and the bridge designer, Ramboll Sverige AB.

NCC considered Ruukki as being able to deliver the steel structures to a tight schedule and work closely with designers. Cooperation initiated at an early stage improves total cost management throughout the supply chain from production to installation, states Business Manager Stellan Ekberg from NCC.

UK invents armour steel for armed forces

It is reported that invented, designed and manufactured in the UK, Super Bainite is experimental high performance armour steel developed to save the lives of UK Armed Forces. UK’s Ministry of Defense’s in house science and technology centre Defense Science and Technology Laboratory worked in collaboration with Cambridge University and QinetiQ to develop this unique product.

Unlike conventional steels, the composition of Super Bainite was derived from first principles using thermodynamic modeling techniques. This allowed its processing, properties and cost to be optimized in months rather than years. Whilst other armour steels need to be quenched and tempered, Super Bainite develops its properties by a completely new, low temperature mechanism called isothermal hardening. This enables ultra high levels of hardness to be achieved without having to use expensive alloying additions.

Mr Peter Brown scientist of Defence Science and Technology Laboratory said that “Due to the unique process by which we have developed this new armour, Super Bainite is able to match the ballistic performance of the very best off shore armour steels for a fraction of their cost.”

He said that following successful industrial production trials, directed by Dstl in partnership with Corus and Bodycote, the first armour plates of Super Bainite have been manufactured and are now being used in ballistic testing.

BHP Billiton dumps Standard Bank in South Africa

Business Day reported that mining group BHP Billiton has cancelled annual business with South Africa's Standard Bank worth ZAR 2.4 billion after a bank executive suggested that one of its smelters be shut down to save electricity.

The newspaper cited a letter sent to employees by Mr Vincent Maphai chairman of BHP Billiton South Africa which said that remarks by an unnamed Standard Bank executive were reckless.

Business Day said the termination of business with Standard Bank will be phased in, beginning with money market accounts, foreign exhange and guarantees and had been taken with full support of Mr Marius Kloppers CEO of BHP Billiton.

Business Day said the remarks were made at a meeting between business and government at which South Africa's power crisis was discussed.

BHP Billiton said on March 11 it would halve operations at its Bayside smelter while Hillside in South Africa and Mozal in Mozambique would operate on 90% of their power needs.

Standard Bank and BHP Billiton were not immediately available for comment.

Sundance confident of funding iron ore project in Cameroon

Bloomberg reported that Sundance Resources Ltd, which is seeking to build an AUD 3.3 billion iron ore project in Cameroon, is confident of securing finance as rising corporate borrowing costs make it harder for some companies to find lenders.

Mr Don Lewis CEO of Sundance said that “We are seeing, whilst obviously we are in a tight credit market at the moment, for quality bulk commodity projects, money is still there. We will look at our funding options during the course of this year.''

Mr Lewis said that “During the course of 2008 we would be expecting to progress discussions with strategic groups with respect to off take and financing. We are getting lots of industry approaches' for sales agreements from the Mbalam project in the West African nation.”

Rising borrowing costs and reduced bank lending driven by the global credit crunch may delay development of new mining projects, Goldman Sachs JBWere Pty said in a report this month. Barrick Gold Corp., the world's largest gold producer, said March 7 it may wait as long as nine months to sell bonds and refinance debt.

PT Bukit Asam sees 2008 revenue up by over 70%

Reuters reported that Indonesian coal miner PT Tambang Batubara Bukit Asam Tbk sees sales revenue in 2008 rising over 70 % partly helped by higher coal prices and a 20% increase in output. Bukit Asam said that coal miners in Indonesia have been reaping the benefit of soaring global coal prices due to strong demand from economic powerhouses such as China and India as well as a supply crunch in some key producers.

Ms Nurtimah Tobing investor relations official of PT Bukit said the firm is aiming for sales of 13 million tonnes in 2008, up from 10.8 million in 2007 which will push its revenue to IDR 6.5 to IDR 7 trillion from IDR 4.1 trillion (USD 446 million) in 2007.

She added that "This year, I think coal prices will remain strong because of the supply and demand situation. There has been a limitation in coal supply due to infrastructure problems in Australia, while demand from China and India remain strong.”

In 2007, Bukit Asam reported a 57% rise in its net profit to IDR 760.2 billion.

Construction at PNG Ramu nickel project to start within 3 months

Platts reported that Australia's Highlands Pacific Limited and its joint venture partner, MCC Ramu NiCo Limited would start large scale construction at the Ramu Nickel Project in Papua New Guinea within 3 months.

About USD 200 million has already been committed or spent on the USD 1.37 billion project, the financing for which will be finalized within the next three months subject to approval from the Chinese government. The Ramu Nickel project is part owned by a Chinese syndicate.

About 40% of the project cost will be financed by Chinese banking institutions, 30% will come via a shareholder loan from the Chinese syndicate and the rest as shareholder equity. This means the project is being financed by 30% equity and 70% debt, which is to be repaid over 10 years.

The Chinese syndicate comprising MCC-JJJ Mining Development Company owns 100% of MCC Ramu NiCo Limited, which in turn holds 85% of the Ramu project. Highlands has an 8.56% interest in the Ramu project, which will increase to 11.30% at no cost to the company after repayment of its part of the debt.

Lincoln Minerals and Intermet announce JV at Gawler Craton

The Directors of Lincoln Minerals Limited announced that it has concluded a Joint Venture Agreement with InterMet Resources Limited in respect of ITT's EL3702 tenement near Port Lincoln on the southern Gawler Craton in South Australia.

Under the joint venture announced today, Lincoln Minerals can earn up to an 80% interest in EL3702 by expending AUD 2 million on exploration by December 31st 2012.

EL 3702 is 1000 square kilometer in area and has considerable potential for iron ore in addition to base metals and gold. It links LML's Gum Flat (EL3422) and Cummins (EL3703) tenements on which LML is actively exploring for iron ore. There are extensive outcrops of banded iron formation on EL3702 and recent aeromagnetic imagery acquired by ITT has delineated numerous exploration targets for BIF iron ore under thin sand and soil cover.

InterMet Resources Ltd is a dedicated to discovering and developing major mineral deposits in northern Queensland and South Australia. InterMet has assembled an impressive portfolio of advanced projects in northern Queensland targeting iron, gold, copper, base metal and tin-tungsten mineralisation. InterMet also possesses a large landholding in South Australia on the highly prospective Gawler Craton and Adelaide Fold Belt targeting copper, gold, base metals and uranium mineralization.

Lincoln Minerals Limited is an Australian company with a portfolio of high quality uranium, iron ore, base metal gold and iron oxide copper-gold uranium exploration projects in Gawler Craton at South Australia.

PT Krakatau likely to launch IPO in 2008

ANTARA News reported that the privatization of the Indonesia state owned steel maker PT Krakatau Steel scheduled later this year will be through initial public offering rather than strategic sales.

An official said that sales of 30% worth around IDR 1 trillion (USD 111 million) of the country's largest steel maker were originally scheduled for last year, but poor financial performance in 2006 resulted in the postponement of the plan.

But Mr Sofyan Djalil state minister for state enterprises, however said that implementation of the IPO plan would depend on market conditions.

East Asian buying boosts scrap prices

It is reported that scrap prices in East Asia have been rising rapidly as the import price of H1 scrap in South Korea is about USD 580 per tonne CNF offered for May 2008. Also, in Southeast Asia, the offer price of H1 scrap is USD 615 per tonne lately.

In South Korea, Hyundai Steel purchased the H1 scrap from Schnitzer Steel, Pacific Coast and Sims Group at USD 579 per tonne CNF in the second week of March. Additionally, Dongkuk Steel and SeAH Besteel Group bought the scrap from Schnitzer Steel respectively.

(Sourced from YIEH.com)

Brazilian pig iron exports in February up by 56.7% YoY

Brazil in February 2008 exported 653,000 tonnes of pig iron in February up 56.7% YoY. As per report the exports totaled 1.168 million tonnes during the January to February 2008 up by 14.3% YoY.

Country wise iron ore export in February 2008
1. America - 456,000 tonnes
2. Italy - 54,000 tonnes
3. Indonesia - 35,000 tonnes
4. Taiwan - 28,000 tonnes.

(Sourced from YIEH.com)

BC Iron to complete Nullagine iron ore project scoping study

AAP reported that BC Iron Ltd expects to complete a scoping study on its Nullagine iron ore project in Western Australia in the coming months after calculating a maiden resource for the project.

BC Iron hopeful said that it expects a study into a potential 3 million tonne per year operation for Nullagine to be completed during the June quarter of 2008.

BC Iron on revealed a 47 million tonne iron ore resource for the project, which comprises 28 million tonnes of ore that can be directly shipped to steel mills without expensive processing.

BC Iron has also entered into a MoU with Fortescue Metals Group Ltd for the potential transport of ore on its nearby railway network.

Perilya MD resigns ahead of CBH merger

The merger of zinc miners Perilya Ltd and CBH Resources Ltd has claimed its first scalp with Mr Len Jubber MD of Perilya resigning from his post immediately.

Mr Patrick O'Connor executive chairman of Perilya said that Mr Jubber would step down from his role by mutual agreement with immediate effect to pursue personal interests but would be available to assist the planning process until the end of July. He added that "We are now moving into a new phase of the company's evolution.”

Mr O'Connor said that "With the focus on gaining CBH shareholder and other approvals and integration planning to ensure the very significant corporate and operational synergies from the proposed merger are captured and enabled by an efficient integration process."

Perilya started reviewing strategic options last month after the company watched its market value more than halve over the past six months. The two companies unveiled the USD 294 million mergers last week after they revealed in February they were in discussions regarding a potential merger, which were centered on maximizing the value of the respective group's Broken Hill operations.

Japanese manufacturers activity to keep high level in FY 2008

According to survey by Japan’s ministry of economy, trade and industry, Japanese automobile demand will decease by 0.6% to 5.306 million units in fiscal 2008 starting April from fiscal 2007.

Japan’s ministry of economy, trade and industry expects US automobile output decreases by 0.7% to around 16 million units under slowed economy with subprime loan issue while the European demand is flat. The automobile demand is expected to keep high level. METI expects the manufacturers output will keep high level.

Onoken completes acquisition of Yokohama Steel

Onoken Co Ltd announced that it has completes acquisition of Yokohama Steel Co Ltd as of March 31st 2008.

It purchased 14,324,000 new shares of Yokohama Steel's common stock for a total of JPY 716,200,000, through a private placement. After the transaction, the Company has become the parent company of Yokohama Steel with 75.0% stake.

FMG Finance B+ issue rating put on negative watch - S&P

Standard & Poor's Ratings Services placed on negative watch its 'B+' issue rating on FMG Finance Pty Ltd, the financing arm of Australia based Fortescue Metals Group Ltd citing its concern over the company's increased leverage in Fortescue Metals' iron ore project through leasing facilities.

S&P said that the leasing facilities are expected to reach about AUD 630 million by the end of 2008 compared with initial estimates of around AUD 150 million.

S&P also said that it is awaiting lease documentation from the company in order to review these documents for key terms and conditions and the rank the leases in terms of cash flow servicing and security over critical assets. It said that it would consider a ratings downgrade if the lease documents contain cross default provisions which result in the lessors having a prior ranking position over senior bondholders.

US Steel presents 2007 outstanding supplier awards

United States Steel Corporation announced that it has recognized seven North American based suppliers with its "Outstanding Supplier" award for 2007. The awards were presented by Mr John Goodish executive VP & COO of US Steel at a recent event at Pittsburgh in Pennsylvania.

The awardees were selected for excellent performance in areas tied closely to US Steel's key business drivers including safety, quality, cost, customer service and productivity.

Companies honored with the Outstanding Supplier award were:
1. Avalotis Corporation
2. Berry Metal Company
3. Fosbel Inc.
4. Hewlett Packard Company
5. J I T Steel Service
6. Kingston Resources, Inc
7. Praxair Inc.

Mr Goodish said that "The world class goods and services supplied by the seven recognized companies during the last 12 months have aided US Steel's efforts to produce our own world class products and remain a leader in a fiercely competitive global steel industry. We thank them for their commitment to excellence and for their dedication to the working relationships we have forged together over time."

Montezuma snaps up 90% of the iron ore rights at Mt Padbury

It is reported that Montezuma Mining Company Limited has negotiated an agreement with Independence Group NL to acquire their 90% of the iron ore rights over the Mt Padbury license.

The license contains approximately 23 strike kilometers of the banded iron and chert sediments that make up the Robinson Range.

Montezuma Mining Company said Independence would receive a royalty of USD 2/DMT of any iron ore successfully mined from within the license. The remaining 10% free carried interest in E52/1529 is held by a private company.

MZM said the sequence is known to host significant iron enrichment with sampling by previous workers highlighting elevated surface iron values in excess of 50% over significant strike lengths. It added that “In one occurrence, where surface sampling returned grades of 63% from high grade haematite mineralisation, there is a projected exploration target potential of 5 to 7 million tonnes of high grade haematite ore grading 60% to 65%.”

The company said that sampling at the location returned low levels of silica, phosphorous, sulphur and aluminium. “It should be noted that this potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the determination of a mineral resource.”

Montezuma Mining said the Mt Padbury license continues to be a major focus and the latest deal adds to the prospectively of the overall project area.

Hyundai Steel announces resignation of Co CEO

Hyundai Steel Co Ltd announced that Mr Kim Tae Yeong has resigned from the company effective March 31st 2008.

It added that “Its current Co Chief Executive Officer Mr Park Seung Ha continues his duty as CEO.”

Erdemir raises flat product prices

Erdemir has announced to increase its hot rolled, cold rolled, galvanized and tinplate prices by USD 155 per tonne. The new prices were effective from March 28th 2008.

As per report, the new levels are
HRC - USD 1,095 per tonne
CR - USD 1,115 per tonne
HDG - USD 1,225 per tonne
Tinplate - USD 1,190 per tonne
HR plate - USD 1,275 per tonne

The price increase had been expected by the Turkish market, but some traders find the USD 155 per tonne increase too steep.

Erdemir previously lifted its prices on February 29th 2008. On that occasion, the increases were USD 80 per tonne for hot rolled, USD 70 per tonne for cold rolled coil, USD 100 per tonne for galvanized coil, USD 20 per tonne for tinplate and USD 200 per tonne for HR plate.

Boulder Steel commences land leveling for its plant at Sharjah

Boulder Steel Limited announced that the land leveling has commenced at the UAE Finishing Plant Project site in the Hamriyah Free Zone of Sharjah in UAE.

The work is being carried out by UAE contractor Al Sahel General Transport and is due to be completed within 90 days from March 26th 2008.

Dubai to spend USD 14 billion on transport infrastructure

MEED reported that Dubai will spend about AED 52.5 billion (USD 14.3 billion) over the next five years building roads, bridges and a metro network as the emirate's population growth surges.

Mr Mattar al-Tayer chairman of Dubai's Roads and Transport Authority said “We are to spend AED 10.5 billion a year for the coming five years.”

Mr Al Tayer said that last June the authority planned to invest at least AED 75 billion over the next five years on transport infrastructure to help meet demand as Dubai's population is expected to double to more than 2 million by 2015.

RTA has already committed to projects worth AED 26 billion in the Gulf's tourism and trade hub, which is seeking to achieve economic growth of 11% per year to 2015.

Sudan and Saudi Arabia ink pact for reactivating Red Sea mineral deal

Sudan and Saudi Arabia have signed an agreement to reactivate a deal reached in 1974 on the joint exploitation of valuable mineral riches said to be lying under the Red Sea.

As per the protocol signed by Mr Al Zubair Ahmed Hassan Sudanese minister of energy & mining and Mr Ali bin Ibrahim Al Naimi Saudi minister of petroleum & mineral resources, the parties agreed to form committees to implement the agreement.

The two ministers held a meeting in which they reviewed the underwater studies and researches conducted in the Red Sea and which proved the existence of a number of hidden riches such as gold, silver, zinc, copper and other minerals. They also discussed the issue of utilizing the resources of the Red Sea in view of the agreement signed by the two countries in 1974 in this regard.

Mr Al Naimi urged the Sudanese private sector to participate in this vital project and contribute to realize this huge investment.

During the 1970s, the two parties held a series of joint meetings. Moreover, Sudan had established a special department in the ministry of mineral resources to implement the project. Later, the task was entrusted to a special department operated by the minister of justice in the Numeiri era, Mustafa Zaki and then Sudan suddenly stopped work on the project for unclear reasons.

Gulf projects cross USD 2 trillion in value – Report

MEED reported that projects worth more than USD 2 trillion have been announced or are under construction in the Gulf Arab countries that form the world's largest oil exporting region.

More than USD 1.2 trillion of these projects is in the construction sector, followed by the oil and gas sector at USD 430 billion. UAE accounts for 37% of total Gulf projects.

As per report, economies of Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman have surged on a 5 fold rise in oil prices since 2002 and the states are investing windfall oil revenues to develop everything from infrastructure to power.

MEED said in a statement that the project boom has happened despite fears that rising construction costs would lead to a significant slowdown in the number of new projects being launched. It added that only about a quarter of the projects were now being built.

Mr Simon Howard GM of Meed said that “Despite fears that the bubble might burst at any moment, business in the Gulf is still booming. The last 12 months have seen huge investment poured into the region, with such developments as Masdar City and Saadiyat Island allowing Abu Dhabi to emerge as a market packed with the potential to one day rival Dubai as the bustling tourism centre of the UAE."

The Meed Projects Index monitors investment within the construction, oil and gas, petrochemicals, power and water and waste sectors. According to Meed “Of the total projects tracked by the index, however, only one quarter are currently under construction, which implies a further three to five years of intensive construction activity to come. Such stand out success in the UAE indicates that there is still room for copious more investment in the surrounding GCC countries.”

Oman Cement to raise output by 1.2 million tonnes by 2008

Oman Cement Company has announced that its USD 162 million expansion will raise output capacity by 1.2 million tonnes a year late in 2008.

Mr Jamal Al Hooti CEO of Oman Cement said that "The expansion will cost USD 162 million to supply an extra 1.2 million tonnes per year by the end of 2008 to help increase supply in the market."

A cabinet minister said earlier in March 2008 that Oman Cement will raise production by 1 million tonnes per year in 2009 after expanding its plant, whose capacity stood then at 1.87 million tonnes per year.

Dana Gas to drill 19 wells in Egypt in 2008 – Report

UAE based Dana Gas has announced that it would drill 19 new wells in Egypt in 2008 to potentially double the firm's reserves in Egypt. As per report, Dana Gas, which relies on Egypt for the bulk of its income, would develop 15 exploration wells and 4 development wells at the Komombo concession in Upper Egypt and 2 concessions in the Nile Delta.

Mr Hany Elsharkawi country director of Dana Gas Egypt said that "The gas sector in Egypt is expanding rapidly. This exploration and development program could potentially double the size of our reserves."

Dana Gas said in January 2008 it plans to invest about USD 500 million in Egypt and Iraq's Kurdish region this year to boost natural gas output. It could spend more than USD 170 million in Egypt in 2008.

Dana Gas posted a near 15% rise in fourth quarter revenue as compared with the third quarter on higher production from its Egyptian gas operations and higher prices.

Aldar inks JV with Readymix to boost concrete supply in Abu Dhabi

Emirates Business 24/7 reported that Aldar Properties has set up a JV company with concrete producer Readymix Abu Dhabi to provide supplies to its development projects. As per report, Aldar Readymix will allow Aldar to receive high quality concrete for its projects, including Al Raha Beach development.

Aldar Readymix plans to reach a total production capacity of more than 15,000 cubic meters per day by the end of 2008, adding to Al Raha Beach's 4 on site concrete batching plants with a production output of 6,000 cubic meters.

Mr Youssef El Hage GM of Aldar Readymix said that "This alliance has many benefits for both parties including creating a secure and proper supply chain, which will allow Aldar Properties to get all its requirements on time, and remain on schedule throughout their projects."

UAE suppliers of ready mixed concrete are struggling to keep up with demand with the risk that construction projects may be delayed further.

Fluor bags USD 2 billion Kuwait refinery contract

US engineering firm Fluor Corporation has clinched a contract for the construction of part of a planned 615,000 barrels per day Kuwait refinery. Construction is due to start later in 2008 or early in 2009, with the refinery slated to come on stream by the end of the first quarter of 2012. Completion was originally planned for 2010.

Mr Faruq Al Zanki chairman of Kuwait National Petroleum Company said that the contract, covering utilities and offsite facilities, is worth USD 2 billion out of the projected total cost of around USD 15 billion. The remaining contracts will be awarded in late April 2008.

Mr Zanki said that Kuwait National Petroleum Company is also planning a multi billion dollar project to expand and modernize 2 of its 3 refineries at Al Ahmadi and Mina Abdullah but the project is running behind schedule. He added that "The project, dubbed Kuwait clean fuel, will raise the 2 refineries' production from just over 700,000 barrels per day to 800,000 barrels per day.

Kuwait in September 2007 pre qualified 17 international companies to bid for the refinery after scrapping the first round of tenders because of inflated cost estimates. The planned facility will be south of Kuwait City in the Al Zour area near the Saudi border. The new contracts will be based on a cost plus profit margin, which means Kuwait paying the cost of the project to the successful bidder plus an agreed profit.

Tajikistan to supply cheap power to Pakistan – Report

Mr Said Saidbaig Tajikistan Ambassador to Islamabad said that Tajikistan would be able to export cheap electricity to Pakistan and Iran on completion of 2 huge hydropower stations within 2 years.

Mr Saidbaig said that the hydropower stations similar to Tarbela Dam were being built in Tajikistan by a consortium of Russia, Iran, Kazakhstan, Ukraine and Qatar. A high power transmission line was also under construction from Tajikistan to Pakistan through Afghanistan for the export of electricity.

He added that the construction of international road from Tajikistan capital Dushanbe to Kyrgyzstan, Uzbekistan and China was also underway, which would connect his country to Gwadar Port. The road would not only benefit Tajikistan but would also give boost to Pakistani trade.

Mr Imtiaz Ahmad chairman of National Highway Authority said that the completion of NTC would not only help bring the world resources to Pakistan but also cut the cost of doing business as infrastructure played an important role in promotion of trade and industry. The Gwadar Port would play a big role in NTC Program.

Traffic at ports in Oman surges during January 2008

Mena reported that the quantity of cargo unloaded and loaded at Mina Sultan Qaboos and Salalah ports in Oman have amounted to 889,5 tonnes during January 2008 up by 56.2% YoY as compared to 569,3 tonnes during January 2007.

A bulletin released by ministry of national economy attributed the overall growth in the quantities of goods handled at the 2 ports to the rise in loaded and unloaded goods at Mina Sultan Qaboos by 73.3% to 564,3 tonnes by the end of January 2008 as against 325,6 tonnes during January 2007.

Goods handled at Salalah port went up in terms of quantity by 33.4% YoY by the end of January 2008 to 325,2 tons against 243,7 tonnes during January 2007. Foodstuff items, building and construction materials and vehicles were among the most important cargo handled at the two ports.

A total of 262 ships called at the 2 ports by the end of January 2008, reflecting a 40.9% YoY increase against 186 vessels during January 2007. The number of vessels which anchored at Mina Sultan Qaboos rose by 53% YoY to 205 ships by the end of January 2008 as against 134 ships during January 2007, while the number of vessels anchored at Salalah port rose by 9.6% YoY to 57 ships as against 52 ships during January 2007.

Austria a potential market for UAE investors – Report

According to Dubai Chamber of Commerce & Industry, Austria is a potential market for the UAE and other Arab countries as it can be a gateway to the bigger European Union market. It also stressed that UAE investors could take advantage upcoming free trade agreement between the UAE and the EU.

Dubai Chamber of Commerce & Industry in a statement said that "This would provide UAE traders the opportunities to increase exports to Austria and compete with other Arab countries for a bigger market share in Austria."

Total trade between Dubai and Austria surged by 187.8% to AED 1.52 billion in 2006 from AED 528 million in 2002, with a compound annual growth rate of 30.1%. UAE exports to Austria almost doubled to AED 308.1 million in 2006 from AED 146.8 million in 2005 while imports rose by 48.5%.

Austria's trade with Arab countries accounted for less than 1% of its world trade, with imports from Saudi Arabia, Libya, Tunisia, Morocco and Syria reaching AED 8.1 billion in 2006 after a general declining pattern between 2003 and 2005. Austrian exports to Arab countries climbed by 33.3% to AED 10.4 billion in 2006 from AED 7.8 billion in 2005. The destinations included Saudi Arabia, the UAE, Algeria, Egypt and Kuwait.

Austria's major imports from Arab countries in 2006 included petroleum, foodstuffs, machinery and equipment, vehicles, chemicals, textiles, clothing and pharmaceuticals. The major exports were machinery and equipment, iron and steel, lumber, chemicals, manufactured goods and food and live animals.

In 2006, Austria's world merchandise trade reached AED 2.2 trillion in 2006, AED 1.1 trillion of which involved imports. Imports and exports grew by 9% and 11%, respectively.

Russian Railways inks contract with Iranian Railways

It is reported that Russian Railways and Iranian Railways have closed a contract on electrification of 46 kilometer long Tebriz to Azarshahr rail line on March 29th 2008. The agreement was signed by Mr Vladimir Yakunin president of RZhD and Mr Hasan Ziyari president of Iranian Railroads.

The contract should be realized within 9 months and the warranty period is 18 months. The works will be realized by Russian Railways’ subsidiary Zarubezhstroytechnologia.

RZhD may also be involved in the electrification of the Bafg - Bender - Abaz line and confirmed its participation in the electrification of the Tehran - Mezhhed section. In turn, Iran expressed an interest in the purchase of rails, ties and crossing pieces of the Russian origin.

Qatar plans economy base shift from oil to knowledge

The Peninsula reported that Qatar is planning to transform its economy from one based on energy to one that has knowledge as its mainstay.

Mr Ahmed Hasnah associate VP for higher education said that "We expect to be an exporter of knowledge as well as gas. It is naturally our greatest hope that the new economy will be well entrenched before our gas revenues start falling. We are making huge investments in education because we know that the wealth we are currently enjoying is unsustainable in its present form."

Mr Hasnah said that institutions such as Qatar Science & Technology Park would commercialize research and development work already under way in the country, in partnership with the private sector. He added that the blueprint for Qatar's future will be one based on an educated population which serves as a producer of knowledge that will become the nation's greatest export.

Global coke price levels to stay high in 2008 - CCIA

According to the China Coking Industry Association the price of coke will continue to stay at a high level this year amid surging demand and rising cost.

Mr Huang Jingan chairman of China Coking Industry Association said at a conference held here in Beijing that increasing demand from the steel industry will largely boost the price for the key residue used in the smelting process. He said China's steel industry produced about 959.2 million tonnes of crude steel and iron last year and consumed 90% of the country's coke output. He added that "Consumption will continue to rise amid growing steel and iron output this year."

Mr Huang said "As the government has raised duties and charged more pollutant tax on coke products, the coke plants have to afford more expense. The growing expansion of coke production will certainly be passed onto the price."

According to a Union Bank of Switzerland report, coking coal output in the world is expected to stand at 211 million tonnes this year, while the demand may hit 221 million tonnes. Demands from China, India and Brazil will remain robust among other countries.

China is the largest coke producer in the world, accounting for 60% of world production in 2007.

Wuhan Steel raises May prices

It is reported that Wuhan Steel has released its May prices for some steel products. Prices are raised by different ranges from April prices

HR price up by CNY 200 per tonne
Common carbon, low-alloy and quality carbon products with width of over 12mm price up by another CNY 100 per tonne
Others price up by CNY 500 per tonne
Common carbon, quality carbon, low-alloy products with width of 1550mm or more prices up by CNY 150 per tonne

CR price up by CNY 100 per tonne
Tinplate products price up by CNY 150 per tonne
WL, DZ51 and structural galvanized products price up by CNY 100 per tonne

Silicon Steel price up by CNY 2000 per tonne for grain oriented silicon steel

Medium Plate price up by CNY 300 per tonne for common carbon, quality carbon, low alloy, shipbuilding and bridge building plate
Other price up by CNY 200 per tonne

Wire Rod price up by CNY 350 per tonne for steel cord yarn
Other price up by CNY 260 per tonne

Prices listed are exclusive of 17% VAT effective as of March 28th 2008.

(Sourced from MySteel.net)

China to eliminate 70 million tonnes of small coke production facilities

According to Mr He Shiguo official of the National Development and Reform Commission on a seminar on March 27th 2008 said the central task of China's coke industry is to eliminate 70 million tonnes of coke production facilities with small coke ovens of less than 4.3 meter height in the future.

Mr He Shiguo said in a bid to put the state's policy of scientific development concept and energy saving and emission reduction in place, the country must push forward consolidation of the coking industry, eliminating, closing down and stopping less than 4.3 meter small coke ovens as soon as possible. He said he hope for the founding of some large modern coking project.

The official with the NDRC Industry Policy Department "China now has more than 1,000 coking plants, but I prefer to see 300 plants each with an annual production capacity of above three million tonnes."

According to statistics, there were still 70 million tonnes to 80 million tonnes of small coke production capacities in operation last year. The State Council assigned a task of eliminating 10 million tonnes of small coke production facilities last year and in the final 12 million tonnes were eliminated actually. However, additional 70 million tonnes of small coke production facilities still need to be eliminated. The task is very arduous.

US ITC continues investigation on Chinese SS tubes

The United States International Trade Commission determined that that there is a reasonable indication that an industry in the United States is materially injured or threatened with material injury by reason of imports from China of welded stainless steel pressure pipe, provided for in subheading 7306.40 of the Harmonized Tariff Schedule of the United States, that are alleged to be subsidized by the Government of China and sold in the United States at less than fair value.

US ITC also gave notice of the commencement of the final phase of its investigations and will issue a final phase notice of scheduling, which will be published in the Federal Register.

On January 30th 2008, a petition was filed with the Commission and Commerce by Bristol Metals, Felker Brothers Corp, Marcegaglia USA Inc, Outoukumpu Stainless Pipe Inc and the United Steel Workers of America alleging that an industry in the United States is materially injured or threatened with material injury by reason of subsidized and LTFV imports of welded stainless steel pressure pipe from China. Accordingly, effective January 30, 2008, the Commission instituted countervailing duty investigation No. 701-TA-454 (Preliminary) and antidumping duty investigation No. 731-TA- 1144 (Preliminary).

Kiu Hung completes acquisition of 2 coal mines

Kiu Hung International Holdings Limited announced that it has completed the acquisition of the entire equity interest of Lucky Dragon Resources Limited with a total consideration of HKD 772 million.

Lucky Dragon owns the entire equity interest in Tongliao City Heng Yuan Mining Company Limited which in turn owns
1. The mining rights and operation facilities of the Huanghuashan Coal Mine
2. The exploration rights of the Bayanhushuo Coalfield

Huanghuashan Coal Mine is located in Tongliao City of Inner Mongolia of the China. Heng Yuan owns the mining license and related operating facilities of the coal mine. According to a technical report compiled by SRK Consulting China Limited, Huanghuashan Coal Mine has estimated coal reserves of approximately 7.85 million tonnes in a site area of 1.71 square kilometers. The coal type of Huanghuashan Coal Mine is semi anthracite coal,

Bayanhushuo Coalfield is located in Xilinguolemeng of Inner Mongolia. Heng Yuan owns the exploration license of the coal mine. According to a technical report compiled by SRK Consulting, Bayanhushuo Coalfield has estimated coal reserves of approximately 434.76 million tonnes in a site area of 51.34 square kilometers. The coal type of Banyanhushuo Coalfield is high quality thermal coal.

Mr. Joseph Hui, Chairman of Kiu Hung International, said, "We are delighted that the acquisition of Huanghuashan Coal Mine and Bayanhushuo Coalfield has been completed. Coal mining business is a highly profitable business in China. The addition of these 2 coal mines with over 570 million tonnes of coal resources will bring favorable returns to our shareholders."
Kiu Hung International Holdings Limited is an investment holding company that has wholly-owned subsidiaries in coal energy, gift and toy industries. It operates three coal mines in the Inner Mongolia Autonomous Region in China, with total reserves of more than 570 million tonnes.

China may consume 10% more manganese in 2008

It is reported that Commodity trader Zhejiang Materials Industry International Co forecasts that China, the world's largest steel producer, may consume 10% more manganese alloys this year helping to bolster prices in the next two months.

Mr Yang Jian manager of steel raw materials department at the Hangzhou based company said demand for the alloys used to strengthen steel will rise from last year's 5.38 million tonnes

He said “Manganese prices will keep increasing in the coming months and may hike in April and May and some Chinese buyers may not be able to obtain the material. Prices could come down in the second half when Chinese steel mills slow production in the summer months.''

Zhejiang Materials supplies manganese alloys to mills including Anben Steel Group and Jiangsu Shagang Group Co.

China is the largest producer of manganese alloys, accounting for almost half of world's output.

China Shipping Group to form JV with Baosteel

It is reported that China Shipping Group would set up a shipping company in Hong Kong with the country's biggest steelmaker Baosteel Group.

Mr Li Shaode president of the shipping giant said the joint venture is likely to be founded in the early half of this year. China Shipping will take a 51% stake with the remaining going to Baosteel. He said the JV would be equipped with annual transportation capacity of 20 to 30 million tonnes by 2015.

As the JV can not tailor make ships until late 2009 or early 2010 it will rent six ships in the early stage.

(Sourced from MySteel.net)

Jiugang plans to produce 8 million tonnes steel in 2008

Jiuquan Iron and Steel Corporation hold the fifth staff meeting, where, general manager Mr Zang Qiuhua made the administrative report of the company. He outlined the achievement in 2007 and the tasks and key work in 2008.

In 2007, the outputs of iron, steel and steel products of Jiugang were respectively 6.575 million tonnes, 7.639 million tonnes and 7.006 million tonnes. The revenue and profit of the company reached respectively CNY 30.509 billion and CNY 1.276 billion. Per capita income of the company was CNY 35,000 up by 15.8% YoY.

The main goal of the company for 2008 is
1. Output - 8 million tonnes
2. Revenue - CNY 35 billion
3. Profit – CNY 12 billion
4. Capital assets investment – CNY 5.5 billion.

Handan Steel adjusts EXW prices

It is reported that Handan Steel publishes its latest EXW prices for some products, on the basis of prices released on March 18th 2008

Wire Rod, Rebar and Round Bar: unchanged.
Q235 6.5mm common carbon wire rod is quoted at CNY 5050 per tonne
Q235 6.5mm high speed wire rod is quoted at CNY 5090 per tonne
HRB335 12mm rebar is quoted at CNY 5370 per tonne
HRB335 14mm rebar is quoted at CNY 5320 per tonne
HRB335 16mm to 25mm rebar is quoted at CNY 5170 per tonne
Q235 16mm to 25 mm round bars is quoted at CNY 5210 per tonne.

Medium Plate price up by CNY 100 per tonne
Latest EXW price for Q235B 20mm medium plate stands at CNY 6050 per tonne.

Ship building Plate price up by CNY 400 per tonne; CNY 50 per tonne higher for those with thickness of 50mm or more
CCSA20mm ship building plate is offered at CNY 6595 per tonne.

Prices listed above are inclusive of 17% VAT effective as of March 28th 2008.

(Sourced from MySteel.net)

Sinosteel still steeled for foray in Midwest

It is reported that Sinosteel AUD 1.2 billion bid for West Australian iron ore miner Midwest is part of a larger strategy to expand its global iron ore supply chain and despite refusal, it plans to pursue the overseas assets.

Mr Tianwen Huang president of Sinosteel while speaking to Business Day recently said that “Sinosteel imported 30 million tonnes of iron ore into China a year but only one third of it came from Australia. Nearly all its Australian imports come from the Channar mine, a joint venture with Rio Tinto in the Pilbara. Sinosteel owns 40% of the mine, but all its production of 10 million tonnes a year is marketed in China.”

Mr Huang said Sinosteel had discussed joint ventures with Australian companies other than Midwest, including Fortescue Metals but had so far been unable to reach an agreement. He said Sinosteel first considered bidding for Midwest when rival WA miner Murchison Metals made hostile scrip bid last year. He added that “At that time we were afraid if Murchison's action succeeded, it might affect Sinosteel's cooperation with Midwest."

Mr Huang said Sinosteel was interested in Australian projects in part because its location meant cheaper shipping costs.

Mr Huang refused to rule out the possibility of Sinosteel increasing its bid.

China Molybdenum profits in 2007 increase by 48% YoY

Bloomberg reported that China Molybdenum Co, China’s second biggest producer Molybdenum, full year profit rose by 47.9% YoY in 2007 as it increased sales to benefit from surging prices for the silvery white metal.

The Henan province based company said in a filing to the Hong Kong stock exchange that net income climbed to CNY 2.24 billion from CNY 1.52 billion a year earlier. The profit was smaller than the mean estimate of CNY 2.37 billion in a Bloomberg News survey of six analysts.

China Molybdenum Co said its sales rose to CNY 5.9 billion for the year as compared with CNY 3.83 billion in 2006. The directors proposed the payment of a final dividend of CNY 0.128 a share for 2007 compared with zero a year earlier and a special dividend of CNY 0.03 a share.

China Minmetals 2007 profit up by 88% on domestic demand

Xinhua reported that China Minmetals Development Co a listed subsidiary of the state owned metal trader China Minmetals Corp net profits went up by 88% in 2007 driven by domestic business.

China Minmetals Development Co said in its 2007 annual report net profits were CNY 1.06 billion last year with earnings per share of CNY 1.29. Revenue rose 11% to CNY 85 billion with domestic customers accounting for 70% of the total.

The Shanghai-listed company said that restructuring would bring new opportunities for its development. It forecast revenue could reach CNY 92 billion in 2008.

Chinese nonferrous metal output records brisk growth in 2007

It is reported that China's non ferrous metal output amounted to 23.6 million tonnes in 2007 up by 23.44% and ranking as world top producer for sixth consecutive years.

According to China Non-Ferrous Metal Industry Association the net output of electrolyte aluminum stood at 3.2 million tonnes contributing 72% to the production increase in top ten non ferrous metals.

Eight provinces and autonomous regions reported an annual output of ten nonferrous metals topping one million tonnes each in 2007. Included was Henna Province with a combined output of 4.28 million tonnes accounting for 18% of the country's total.

As per report the main operational revenue of China's scaled non ferrous enterprises totaled CNY 1.85 trillion in 2007 and the profit amounted to CNY 140 billion.

Mr Kang Yi chairman of China Non-Ferrous Metal Industry Association said non ferrous industry made substantial progress in energy saving in 2007 with unit energy consumption and main pollutant declining.

China's logistics industry posts 20% growth in 2007

Xinhua reported that China's logistics sector realized USD 1.7 trillion in added value last year a growth of 20.3% on the previous year.

According to the National Development and Reform Commission the growth rate was 5.2 percentage points higher than the year earlier level. The added value accounted for 17.6% of the total added value for the service industry at large up 0.5 percentage points YoY or made up 6.9% of China's gross domestic product up 0.2 percentage points.

The report added that last year saw the sector's gross business volume amount to CNY 75.2 trillion up by 26.2%. The growth rate was 2.2 percentage points higher than the year earlier level.

The logistics sector's expenditure reached CNY 4.5 trillion nationwide in 2007 up by 18.2%. The growth rate was 4.7 percentage points higher.

Wuhan Steel discovers new iron ore deposits in Hubei

It is reported that Wuhan Iron and Steel Corporation has recently discovered new iron ore deposits at Daye in Huangshi City, based in Hubei Province.

As per report the advanced stage exploration project would add a further 23 million tonnes of resources to Wisco's iron ore base at the Wisco Daye Iron Ore Mine.

Output from Wisco's Daye Iron Ore Mine has dropped to slightly more than 1 million tonnes per year, after 40 years' mining. Other iron ore mines in Daye have a total iron ore output of about 3 million tonnes per year. Of that, about 50% goes to Wisco, while a further 30% heads to Echeng Iron and Steel Corporation which already merged with Wisco.

Mr Yin Xiaopeng manager of Daye Iron Ore Mine said that the proved iron ore reserves were all 600 meters deep underground, but this time, they found rich iron ore resources 700 meters under the earth through deep exploration.

Chinese iron ore imports in February 2008 reach 38.201 million tonnes

According to the recently released information by Chinese custom authorities, Chinese steel exports during February 2008 amounted to 38.201 million tonnes.

In million tonnes

Xingang 2007 net profit up by 348.57% YoY

According to the 2007 annual report issued by Xingang on March 28th 2008 that the operating revenue of the company in 2007 reached CNY 7.603 billion up by 294.53% YoY and the profit was CNY 438 million, up by 208.45% YoY, the net profit was CNY 307 million up by 130.37% YoY, among which, the net profit vested in the shareholders reached CNY 251.9148 million up by 348.57% YoY, the basis earning was CNY 0.55 per share.

In 2008, Xingang plans to produce 5.3 million tonnes pig iron, 5.95 million tonnes steel and 5.58 million tonnes steel billets.

Shougang gets profits of CNY 1.884 billion in Q1

It is reported that Shougang is expected to get profits of CNY 1.884 billion in the Q1 of 2008 accounting for 73.1% of its annual plan; get sales revenue of CNY 30.865 billion up by CNY 7.624 billion YoY and CNY 3.765 billion more than the plan.

Qianan Steel developed duplex steel for car wheel hub

It is reported that Qianan Steel has successfully developed high aluminum CR340/590DP duplex steel for car’s wheel hub and high strength S280GD structural steel.

It arranged test production in large quantity for IF super low carbon steel SPC05/06, SDX56D and has commenced on the shipment of X80 pipeline steel in the latter of February 2008.

The group is expected to produce 285,000 tonnes more of competitive products than the plan in the first quarter including 98,000 tonnes more of shipbuilding steel. The coverage of the competitive products will be up to 73.8% that of sheet and strip up to 57.4%, comprehensive qualified ratio up to 93.9% and comprehensive energy consumption was 699.7 kilogram per tonne.

Death toll rises to 13 in central China coal mine gas outburst

Xinhua reported that death toll from central China's coal mine gas outburst rose to 13 as the last victim's body was found.

Mr Li Huajun deputy head of Yongxing county government at the site said the last missing miner's body was found at 2:00AM on Saturday after another miner named Mr Yan Jinhua was rescued early Friday morning from the blast site at the Zhangjiazhou coal mine in Yongxing county of Chenzhou City in central China's Hunan Province on Wednesday.

Rescuers said the accident occurred at about 6:30PM last Wednesday when 17miners were working underground. Three managed to escape and nine bodies were found later in the same day.

A number of officials including the deputy governor of Hunan and chief of the provincial work safety watchdog were supervising the rescue operation at the site.

China oil sector profit dips in January to February

Interfax China quoted National Bureau of Statistics as saying that Chinese oil processing and coking enterprises recorded a net loss of CNY 20.6 billion over the first two months of 2008. National Bureau of Statistics of China said, in comparison the industry had reported CNY 15.6 billion in profits over the same period last year. The stark contrast was blamed on this year's lower domestic oil product retail prices.

According to National Bureau of Statistics Domestic oil product prices have not been adjusted to reflect global crude oil price hikes. Domestic oil products remain between USD 68 and USD 70 per barrel which was set by the National Development and Reform Commission in November last year while international crude oil costs over USD 100 per barrel at the moment.

The report added that China Petrochemical Corp lost CNY 92 million in the first two months of 2008 while China National Petroleum Corp saw net profits for the period drop by 33.60% YoY.

Mr Feng Shiliang chairman of the China Petroleum and Chemical Industry Association said at a conference in Beijing that the financial performances of the two state owned petroleum giants as well as other companies in the oil processing industry, were attributable to government requirements to keep fuel oil production going at normal levels during the snowstorms that swept China during January and February.

Caterpillar says CAPEX in China to triple in 3 years

Reuters reported that Caterpillar Inc, the largest maker of construction and mining equipment, expects its capital expenditure in China to triple over the next three years.

Mr Jim Owens CEO & chairman of Caterpillar Inc said that the lion's share of USD 1 billion earmarked for emerging market capital expenditure would be spent in China. He added that "The lion's share of the billion will be spent in China. We think to win long term, strategically and need to manufacture close to our customers."

He said the company's sales in China will jump by about a third this year to around USD 2 billion making the Asia Pacific region the fastest-growing market for the company. He added that "It is a huge commitment to China."

He said the company may have to make an unusual mid year price hike to take higher steel prices into account. Mr Owens said the price rise would likely be less than 10%, but did not say how much it would be.

3 workers killed in explosion at Shagang Group’s workshop

It is reported that on March 29th 2008, there was an explosion at a workshop of Shagang Group and three workers were killed on the spot.

As per report after the accident, the responsible people and the professional and technical personnel of safe production supervision from Zhangjiagang immediately rushed to the scene commanded the accident disposal.

The cause of the accident is being further investigated now.

Mechel commission new excavator at Korshunov mines

Mechel announced the reception of a new excavator at its iron ore mining subsidiary at Korshunov Mining Plant OAO.

The new Komatsu electrohydraulic mining excavator, with a 19 cubic meter bucket capacity has been assembled and started its operations at the Rudnogorsk Open Pit. It is equipped with an asynchronous electric engine of 1350 KW capacity. The machines’ weight is 360 tonnes. This excavator is the largest machine of its kind in the Korshunov Mining Plant’s arsenal. Its width is about 7 meters, digging height is 17 meters and digging depth is 3 meters.

The excavator was delivered to the Irkutsk Region from Düsseldorf, Germany and assembled under the direction of the manufacture's representative. The project cost amounted to over RUB 200 million.

To operate this excavator, a crew of the Korshunov Mining Plant’s operators was given additional training and practical work at Mechel’s Yakutugol OAO subsidiary, where these machines have already been working. The new excavator is intended to be used at the upper stripping levels of the Rudnogorsk Open Pit. Commissioning of the new high-technology machinery at the Korshunov Mining Plant will enable the Rudnogorsk Open Pit to increase its iron ore output, thus contributing to successful fulfillment of the Korshunov Mining Plant’s production program.

The release added that the Korshunov Mining Plant continues to receive new technological equipment in line with the technical re equipment program for Mechel OAO subsidiaries.

Gazmetall units increase dividends for 2007

Interfax reported that Mr of Alisher Usmanov's Gazmetall’s units have announced dividends for 2007.

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