ArcelorMittal DPR for Jharkhand to be ready by 2008 end

PTI reported that ArcelorMittal will submit land feasibility report for its INR 40,000 crore project in Jharkhand in the next two months.

Mr Pierre Gugliermina CTO of ArcelorMittal, who is heading the team formed to finalize the technology to be adopted for the proposed projects in Orissa and Jharkhand, told PTI that “We have set a timeframe for production of steel by the end of 2011 or early 2012.”

He said that “The land feasibility report would be submitted to the Jharkhand government by June and the detailed project report by the end of this year,”

He added that ArcelorMittal is willing to commence work on the plant as soon as the required land, iron ore and coal mines were allocated.

Cabinet Committee on Prices likely to meet on April 15

It is reported that Cabinet Committee on Prices is likely to meet on April 15th 2008 to discuss further options before the government including ban on steel export and increasing duty on iron ore export to control inflation.

As per report, union finance ministry has sent a detailed note for consideration of the CCP. The options include reducing excise on steel.

It may be noted that after the wholesale price based index, inflation, touched a 3 year high of 7.4%, the government announced ban on cement export and withdrawal of incentives on export of steel as well.

Indian and Chinese steel seminar at Ranchi

The Indian Institute of Metals Ranchi Chapter is hosting a 2 day seminar “Sino Indian Steel Plant Equipment Manufacturers & Suppliers 2008 “ in association with Steel Authority of India Limited’s Centre for Engineering & Technology, R&D Centre for Iron & Steel and MECON Limited at Ranchi.

The seminar will discuss and explore possibilities of exchanging technology to bring cost effectiveness in the steel sector. There will be 15 presentations and the meet is likely to be attended by over 200 delegates.

Indian and Chinese manufacturers and technology suppliers will present their capabilities and future challenges in steel sector. The seminar will focus on steel plant process equipment, material handling, turbo machineries, waste heat recovery, non-conventional energy sources, automation, refractory and steel plant construction.

Mr AS Mathur chairman of the Ranchi chapter of Centre for Engineering & Technology and also ED in charge of SAIL said that "Chinese firms are becoming partners in expansion of some of the Indian projects in steel sector. There is need to understand each other’s plans, requirements and concerns. SIEMS 2008 will help us know the advance technology and how it could be exchanged to bring cost effectiveness in manufacturing."

Bangladesh puts a cap on rebar prices

It is reported that, during a meeting at Chittagong between businessmen and the government officials, prices of different categories of steel including rebars and scrap have been re fixed at a reasonable levels by Bangladesh government for curbing steep price hikes.

1. Grade 60 rebars - BDT 62,000 per tonne from BDT 74,000 per tonne
2. Grade 40 rebars - BDT 58,000 to BDT 60,000 per tonne from present price BDT 70,000 per tonne
3. Scrap - BDT 50,000 from the present prices of BDT 53,000 to BDT 55,000

The steel sector has been asked to follow the re fixed price structure up to June 2009 and they were assured of reviewing the rate after the dateline.

Mr Mohammed Masud Hossain called upon the businessmen to extend their hand to the government in implementing the almost shelved development schemes of the country under current fiscal and said it is responsibility of every citizen to supplement the government’s all positive efforts. He assured the owners of re rolling mills and scrapped ship breaking yards of solving their problems including gas and electricity crisis through conveying the matter to the higher authorities.

SAIL SSP launched a pilot scheme for upliftment of women

Steel Authority of India Limited’s Salem Steel Plant has launched a pilot scheme at Tirumalaigiri village for the uplift of rural women as part of its corporate social responsibility activities.

Under the 3 month training scheme, aimed at developing the skills of the underprivileged rural women in garment making and embroidery, so far 84 women have been trained. The course was conducted in three batches of 20 candidates each.

Fourteen sewing machines were given to them by SSP. The entire course was outsourced from the Sona College of Technology Centre for Non formal & Vocational Education at a cost of INR 182,000.

Mr M Prabhakara Rao deputy GM of SSP said that the women who have completed the training were advised to take the test conducted by the district social welfare officer to enable them to enroll as members of the district cooperative society, which would in turn place orders with the members to ensure regular income. In the next batch of training, 100 women will be given admission. SSP has helped 33 children rescued from bonded labor recently by giving school kits.

Chhattisgarh issues closer notice to BALCO & CSEB

IANS reported that Chhattisgarh Pollution Control Board has issued a notice to Bharat Aluminum Company Limited to check pollution or its coal and water supply would be stopped.

Chhattisgarh Pollution Control Board has also sent a similar notice to Chhattisgarh State Electricity Board following complaints of alarming pollution levels at its Korba east thermal power plant.

A Chhattisgarh Pollution Control Board official said that "The board has issued notices to BALCO and CSEB under section 31 A of prevention & control of pollution act and has set a deadline of 15 days to take measures to contain the pollution, otherwise the board would be forced to block the coal and water supply to the plants."

He added that a recent PCB survey indicated that the emissions from BALCO's plant and CSEB's power unit were far higher than the prescribed limits.

Chhattisgarh Pollution Control Board recently disconnected power supply to several small steel and sponge iron industrial units on the outskirts of Raipur for violating the pollution norms.

Indian forging industry seeks 25% duty on iron ore exports

BS reported that the Association of Indian Forging Industry has urged the government to either stop iron ore exports from the country or levy 25% duty on them and to set up a regulator to control steel prices.

Mr Vidhyashankar president of AIFI said that steel prices in India have shot up 33% in the last eight weeks.

Mr Vidhyashankar added that ex factory steel prices in the international markets were 20% to 30% cheaper for local delivery than Indian local prices.

According to AIFI, the increasing exports of steel have been fuelling price increases in the domestic market and are keeping India in the lower rung of the value chain. He noted that China had taken measures to encourage export of finished goods and levied 25% export duty on carbon steel.

Forging industry is at present mostly dependent on Indian steel for domestic sales and finished product exports as steel is the key input in forgings accounting for 60% to 70% of the input cost. Pig iron and steel scrap are key inputs in steel castings.

Cement export ban not applicable for SEZs – Mr Nath

A day after the government announced a ban on cement export to arrest prices, Mr Kamal Nath union commerce & industry minister clarified that it is not applicable to special economic zones.

Mr Nath said that "India has put a ban on cement exports. However, this will not apply to the SEZs."

He added that the cement export ban was notified by April 11th 2008 by the directorate general of foreign trade and it was not clear whether it included SEZs too.

Hyderabad metro rail project approved

Andhra Pradesh government announced that union government has given in principle approval for the INR 9,696 crore elevated Hyderabad Metro Rail project.

Dr YS Rajasekhara Reddy chief minister of AP said that this is the first public private partnership metro project has been approved by union government. He added that "Central government has allowed Andhra Pradesh to call for financial bids from the 5 pre qualified consortia. The bids will be invited on April 18th 2008 and the bidders will be given 2 months’ time to submit their financial bids for the 71.16 kilometer project."

The 5 international consortia of companies that have pre qualified as prospective bidders for the build own transfer project are
1) Essar Constructions, with SREI, Singapore MRT, SEC and STE
2) Consortium of Magna Allmore, Siemens AG, ETA and NCC
3) Reliance Energy and Bombardier
4) GVK Alstom with partners
5) Navbharat, Maytas, Ital Thai and IL&FS

Mr Reddy said that all the 3 lines of the metro rail route would be taken up simultaneously. He added that "There has been an increase in the cost of the project by INR 1,214 crore because of the increase in the length of the metro by 5 kilometer on one of the lines."

According to him, the government of India under the viability gap funding will provide 20% of the project cost and is also considering grant of another 10% under the JNNURM grant. He added that "While the state government will grant 10%, the rest of the INR 5,819 crore has to be invested by the developer, which is around 60% of the total project cost. Also the land will be provided by the state government free of cost for the project."

Tamil Nadu plans 7 minor ports

BL reported that Tamil Nadu government is planning to set up a chain of 7 minor ports to catalyze industrial development across the state.

Addressing the CII TN Vision Summit, Mr Arcot N Veeraswamy state electricity minister said that the state government has initiated the process of bringing in private investments for the minor ports, which are to come up at Cheyyur, Marakannam, Manappad, Thirukuvallai, Cuddalore, Thirukadaiyur and Ennore, where the cabinet has approved L&T’s project to set up an INR 1,200 crore ship building and port project.

Mr Veeraswamy said that minor ports are a key infrastructure in the context of the massive investments planned in power generation capacities. Most of the power plants would depend on coal imported from Indonesia and Australia and an extensive port infrastructure would facilitate such investments.

The TN Vision Summit organized by the Confederation of Indian Industry was to release a vision report for Tamil Nadu in 2025.

Indian power ministry plans outlay for 2008-09

It is reported that India’s power ministry has planned an investment outlay of INR 40,460.10 crore for 2008-09. This includes internal extra budgetary resources of central public sector undertakings amounting to INR 34,460.10 crore and gross budgetary support of INR 6,000 crore. The net non plan outlay for the current fiscal is INR 75 crore.

In outcome budget of the power ministry, NTPC's outlay of INR 13,588 crore will result in commissioning of 1,320 MW. The outlay will also result in substantial physical progress of the projects scheduled to be commissioned during 11th Plan period.

The National Hydroelectric Power Corporation has outlay of INR 4,385.19 crore which will be largely used for ongoing schemes such as Subansiri lower, Uri II, Parbati II, Parbati III, Sewa II, Chamera III, Nimoo Bazgo, Chutak, Kishenganga and Teesta Lower Dam III & IV and new proposed projects of Kotlibhel 1A 1B and II.

The outlay for Damodar Valley Corporation will have an outlay of INR 6,612.65 crore which will result in commercial operation of 250 MW Meija unit VI. In addition, unit VII and VIII of 500 MW of Chandrapura thermal power stations will also get synchronized. Letter of award for new projects like Koderma stage I with 1,000 MW, Durgapur steel thermal project with 1,000 MW, Raghunathpur thermal project with 1,200 MW has already been placed in 2007-08.

Under the Rajiv Gandhi Gramin Vidyutikaran Yojana, the power ministry has set the target of electrification of 25,000 un electrified villages and offering electricity connections to around 6 million below poverty line households in 2008-09.

In the transmission sector, the PowerGrid Corporation of India, which is the central transmission utility, has an outlay of INR 8,040 crore to commission 5,500 circuit kilometer of transmission lines involving 6,285 MVA of transformation capacity.

SCR earnings in 2007-08 up by 18.9% YoY

South Central Railway has achieved apportioned earnings of INR 6,830 crore in 2007-08 as against INR 5,745.66 crore in 2006-07 up by 18.9% YoY. It achieved an operating ratio of 67.71% YoY in 2007-08.

Mr HK Padhee GM of South Central Railway said that "Financial discipline helped us cut expenditure, resulting in the better operating ratio."

He added that the zone recorded an originating freight loading of 70.17 million tonnes as against 62.23 million tonnes, registering a growth of 12.8% YoY.

Earnings from freight segment stood at INR 3,418 crore as against INR 2,810 crore last year, showing an increase of 21.6% YoY. The target set by the railway board was INR 3,330 crore. Contribution from cement topped the list of commodities with a total loading of 29.59 million tonnes as against 19.87 million tonnes. Coal contributed 29.14 million tonnes as against 25.39 million tonnes, followed by food grains with 6.78 million tonnes as against 5.56 million tonnes. The passenger traffic reached 276.10 million as against 243.66 million.

Indian export target for 2008-09 fixed at USD 200 billion

The government set an export target of USD 200 billion for the 2008-09 up from 160 billion in 2007-08, even as it withdraws incentives for export of cement and steel to contain inflation.

Unveiling the annual supplement to the Foreign Trade Policy, Commerce & Industry Ministry Mr Kamal Nath said that interest subvention to help rupee hit exporters will be extended by one more year, while the average export obligation under the EPCG scheme will reduced.

In order to help the exporters hit by appreciation of rupee and slowdown of global economy, government has reduced customs duty on import of capital goods from 5% to 3% under the Export Promotion Capital Goods scheme.

The other export promotion measures announced by Mr Nath in the annual supplement to the FTP include extension of income tax exemption to the 100% export oriented units till 2010. The tax incentives were expiring on March 31st 2009.

Cochin Port may cancel tender for capital dredging

BL reported that Cochin Port Trust intends to cancel the tender for capital dredging in the channel as the rates quoted by the foreign dredging company for the work are exorbitantly high.

The report cited an official source as saying that “As against the estimated cost of INR 486 crore for dredging the channel, Belgium based Dredging International NV had quoted an amount of INR 805 crore. Since the amount is unreasonably high, we have decided to cancel the tender."

Cochin Port had received two tenders for the execution of the work, including one from the Kandla based Jaisu Shipping. However, the Indian company did not qualify for the work.

Considering the urgency of the situation, the port is planning to float a new tender to carry out capital dredging and it is awaiting government permission, which is expected very soon. It had also requested the government to nominate the Dredging Corporation of India to carry out the work. However, it is pointed out that the DCI did not have enough dredgers to meet the requirements.

This phase of dredging is the main capital dredging required to be carried out in the channel in order to achieve a depth of 14.5 meters as per the contractual agreement with DP World. Capital dredging is one of the prerequisites prior to the development of the first phase of the Vallarpadam international container transhipment terminal.

JNPT dredging tender facing delay in clearances

It is reported that INR 800 crore projects for dredging and widening of the main harbor channel at Jawaharlal Nehru Port is facing delays due to government clearances and JNPT may have to call for a fresh tender as the validity of current bids expire on April 18th 2008.

As per report, JNPT has finalized the successful bidder in July 2007 but inordinate delay in award has forced the lowest bidder to set a deadline of April 18th 2008.

As per report, as it is unlikely for the port to get the ministry’s nod in time, port will have to start the tedious tendering process afresh.

JNPT short listed Van Oord BV and Boscalis of the Netherlands, Jan de nul of Belgium and Dredging International in 2006. After opening the price bids on April 10th 2007, the port took up evaluation of the bids. The port’s board, in its meeting on July 19th 2007, approved to award the work to the lowest bidder, Van Oord BV and submitted the proposal to the ministry for approval.

For JNPT, this project is vital, as shipping lines are increasingly deploying bigger container vessels for gaining economies of scale. Thus, with increasing trend towards larger sized container ships, draught has become an important factor in the choice of port by shipping lines. JNPT may lose out in the race, as at present vessels having a draught of 12.5 meters have to navigate through Mumbai harbor channel and JNPT channel, making use of the tidal window. In order to accommodate larger vessels, the port, years ago, had proposed to deepen the draught of the 35 kilometers long channel to 14 meters to accommodate ships of 6,000 TEUs and later to 15 meters.

Haryana to spend INR 722 crore to enhance transmission network

To further strengthen transmission and distribution network, Uttar Haryana Bijli Vitran Nigam has drawn a comprehensive investment plan of INR 722.74 crore during the current financial year.

The work would be carried out in Panchkula, Ambala, Yamuna Nagar, Kurukshetra, Kaithal, Karnal, Panipat, Sonipat, Rohtak, Jhajjar and Jind and the project cost would include plan expenditure of INR 112.85 crore and non plan expenditure of INR 609.89 crore.

INR 105.40 crore would be spent on setting up of 36 new 33 KV sub stations, erection of 290 Kilometers long new 33 KV lines and augmentation of 20 existing 33 KV sub stations.

It had been planned to set up ten new customer care centers at district headquarters at a cost of INR 4 crore. The Nigam had also planned to release 50,000 domestic connections to the people living below poverty line under Rajiv Gandhi Grameen Vidyutikaran Yojna for which a sum of INR 96.92 crore had been earmarked.

ONGC Tripura Power project contract delayed

BL reported that uncertainty over feasible means to transport power equipment may delay award of EPC contract for the proposed 740 MW gas based ONGC Tripura Power project.

ONGC has received bids from BHEL and Alstom for the EPC contract in November and the contract was slated to be awarded in April 2008 but Bangladesh government is yet to approve a proposal for transportation of heavy equipment through Ashugunj river port, which is not covered by the Indo Bangla Transport treaty. Asugunj is located merely 65 kilometers away from Akhaura border in Tripura and is connected through adequate road infrastructure with the project site at Palatana.

While surveys were launched for improving the road conditions from Karimgunj port in Assam, which is the only way to approach the project site within the national boundaries, the inadequate load bearing capacity and the circuitous nature of the road may create hurdle for transportation of equipment weighing up to 280 tonne a module in a time bound manner.

Mr Manik Sarkar chief Minister of Tripura said that his government is actively pursuing the implementation of the power project. He added that "We are aware of the problems related to implementation of this ambitious project and is keen to extend every help to ONGC authorities to overcome the same. We are confident that the project will be implemented in time and will be a significant contributor to the economic growth of Tripura."

Indian Railways pushing for freight corridors

Mr KC Jena chairman of railway board recently said that freight corridors are the flagship project of Indian Railways for which multilateral funding including raising funds from World Bank loan for the Eastern and Japanese loan for the Western corridor is being done.

Mr Jena said that while freight is the bread and butter of railways.

On the progress of dedicated freight corridors, he said that “For the eastern corridor, the World Bank has started its appraisal report and the first round of meeting has been held. There will be no problem in raising funds for the projects. The western corridor will be set up with Japanese loan and a letter of comfort from them is expected in two days time.”

Mr Jena highlighted the spectacular progress made by the railways not only in terms of achieving a cash surplus of INR 25,000 crore but also becoming the best across the world in terms of the operating ratio which is 76.03%. By the end of the year, 794 million tonnes of goods were loaded and an incremental loading of 66 million tonnes had also been achieved.

ADB to wait for decision on Phulbari coal mine project

Dispelling a rumor that it has pulled out from financing the Phulbari coal mine project, Asian Development Bank has said it would wait for a government decision in this regard.

Asian Development Bank, in a statement said that "ADB will continue to monitor the situation on the ground with full sensitivity to local conditions and we will also wait for Bangladesh government's decision on how to proceed in harnessing the rich energy resources, including those of Phulbari.”

The release added that “ In the interim, we think, it is premature for ADB to continue dialogue with the private sector under the current circumstances. So, at this stage we are completely open to the suggestions of Bangladesh, civil society and other stakeholders and prepared to review our engagement in this project to ensure that all sensitivities, including concerns relating to safeguard issues are fully considered."

According to sources, the ADB was keen to finance USD 300 million, about 10% of the total fund requirement, to implement the project. The Asia Energy conducted a feasibility study on its plan to develop the Phulbari project through an open cast mining method. It submitted the study report, which included an environmental impact assessment and a development plan, to the government in 2005. But the government is yet to approve the project.

Sources said a number of NGOs, who are opposing the open pit Phulbari coal mine project and demanding its developer UK based Asia Energy to go, have spread the rumor that the ADB has decided to withdraw from the project. The NGOs have also been carrying out a campaign internationally and pursuing the ADB to abandon its project financing plan.

Mr Chandrajit Banerjee to be next DG of CII

BL reported that Mr Chandrajit Banerjee currently deputy director general has been chosen to be the next director general of Confederation of Indian Industry with effect from May 2008.

Mr Banerjee has served CII in various locations as the head of state and regional offices of CII such as Kolkata, Delhi, Ahmedabad, Chennai, Chandigarh, Mumbai and Bangalore.

CIL SECL to undertake limited outsourcing

Coal India Limited’s South Eastern Coalfields Limited has stressed that outsourcing of mining will end after the contracted 3 year period and even during this time regular workers will work for the contractors. SECL's decision has prompted the trade unions to call off their 16 day agitation against outsourcing.

Mr Radheyshyam Singh director personnel of SECL said that it would have to increase production to meet the increasing demand for coal. He added that "To attain the expanded production target, the process of purchasing shovels of 42 cubic meter capacity and dumpers of 240 tonne capacity is going on. The outsourcing period will not be extended after the machinery arrives here and the prescribed 3 year period of overburden removal through outsourcing ends."

Mr Singh said that regular employees will remove overburden with the help of the new machinery, till such time as the supply can catch up with the demand. The contract labor would be paid the difference between the state's rates for contract labor and SECL's scales for category I employees. He added that "This scheme is being implemented from April 1st 2008."

Iron ore price negotiations – Vale settles pellets with ThyssenKrupp

Companhia Vale do Rio Doce announced that it concluded the blast furnace pellet price negotiations for 2008 with Germany steelmaker ThyssenKrupp Steel.

As an outcome of these negotiations, the blast furnace pellet price, FOB Tubarão, increased by 86.67% relatively to 2007. Therefore, the reference price per dry metric ton Fe unit for blast furnace pellets for 2008 is USD 2.2020.

BHPB bid for Rio - BHP to file Phase 1 for EU approval

The Observer reported that BHP Billiton is set to finally fire the starting gun this month in its bid to take over rival mining giant Rio Tinto in a USD 130 billion plus deal.

As per report, BHP is expected to file its Form CO with the office of Ms Neelie Kroes Competition Commissioner for the European Commission, toward the end of the month.

This will provide the EC with information on how the takeover would affect competition in the mining sector. It will take about five weeks for the EC to decide as it is expected to do whether the proposed deal warrants a lengthier competition investigation. This could take about six more months.

BHP formally tabled its offer for Rio Tinto in February. The offer is conditional on it being cleared by various competition authorities. As well as the EU, BHP will need clearance from the US, South Africa and Australia before the offer becomes 'live' and subject to the normal Takeover Panel timetable. But Mr Tom Albanese CEO of Rio Tinto has so far rejected his rival's advances.

AIMM asks Sidor to continue domestic shipments

BNamericas reported that Venezuela's mining and metallurgical industry association, AIMM, has asked steelmaker Ternium Sidor not to suspend delivery of steel to the domestic market now that the government has announced that the company will be nationalized.

Mr Eduardo Garmendia president of AIMM told BNamericas that "As an association, we are interested in the guarantee of a continuous steel supply in Venezuela to keep the metallurgical production chain operating. It is important for the sector to have a generous supply of quality materials. We need to maintain the same level of efficiency and competitive prices that we have been offering.”

A representative from Venezuela's steelworkers union Sutiss said that company employees have suspended deliveries while the company is being transferred. Venezuelan press reported that the situation has put the brakes on 300 trucks and two barges carrying nearly 70,000 tonnes of steel.

Recession reports – Mr Greenspan sees 50% chances

Mr Alan Greenspan former chairman of US Federal Reserve last week said chairman said that there is more than a 50% chance the US could go into recession although it has yet not entered recessionary state despite marked by sharp falls in orders, strong rises in unemployment and intensive weakening of the economy.

He said that "We would have to see signs of this intensification. There are some, but not many yet. Therefore I would not describe the situation we are in as a recession, although the chances that we will have one are more than 50%."

He added that "This period is going to be much more difficult, from the point of view of monetary policy, than the period during which I was chairman of the Federal Reserve.”

A sharp downturn in the US housing market has led to a full-blown credit crisis that has reverberated throughout the US financial system.

DJ Leighton bags Mesa A iron ore contract from Rio Tinto

Australia's largest construction company Leighton Holdings Ltd announced that its HWE Mining unit has won an AUD 344 million contract to provide mine development services at Rio Tinto Ltd’s Mesa A iron ore operation.

HWE Mining will design and build the ore handling and train loading plant, as well as associated infrastructure, and in addition it will carry out pre strip work to establish the Mesa A operation by late 2009.

The project, located 50 kilometers from Pannawonica in Western Australia state's Pilbara region, is the first major contract to be awarded by Rio Tinto Iron Ore to HWE Mining.

Mr Craig Laslett executive GM of Leighton Contractors Mining Division said the project would provide HWE Mining with a platform from which it hoped to win further work from Rio Tinto.

On completion of the mine development program in late 2009, the Mesa A mine will be operated by Rio Tinto and is expected to produce 25 million tonnes of iron ore a year, Leighton said.

Corus developing laser technology to detect flaws in steel

It is reported that Corus Research Development and Technology, on Teesside is developing a technology which can detect defects in steel at the earliest ever point in the manufacturing process. The Laser Emats (electromagnetic acoustic transducers) process will be the first of its kind in the world to test for surface and internal defects on steel above 800C.

Dr Adrian Normanton a leading figure in the field, had been developing the technique and adapting it for steelmaking but recently died. Corus will develop the final stages of Laser Emats, a project in the pilot stag, and introduce it into the global industry in Dr Normanton's memory.

The Lase -Emats technique is being tested at the Teesside Technology Centre in Middlesbrough and Corus has been commended by Teesside University and the Cleveland Institution of Engineers for its pioneering work on the project.

The technique involves firing laser pulses at steel to turn a small area of the surface into plasma. That generates an ultrasonic wave, which can be reflected by defects such as cracks. It could take technologists up to two years to test and improve the design, before it is tested at a Corus steelmaking plant.

Mr Ian Baillie project manager and physicist at Corus said that “Dr Adrian was the first to identify this technology as being suitable for the steel industry, and I'm incredibly privileged and grateful to him for giving me the opportunity to be part of a fantastic innovative project. The results on the preliminary testing we have done so far have been very pleasing but it is a challenging environment to work in and there's still much to be done to ensure the technology will do what we need it to do."

Siam United Steel expects 20% price hike in 2008

Bangkok Post reported that prices of cold rolled steel will soar by 20% to 30% in 2008 in line with a supply shortage that has increased global raw material prices.

Siam United Steel said that cold rolled steel, mainly used in automobiles and home appliance manufacturing, had been affected by a rise of USD 200 to USD 250 per tonne in the prices of hot rolled coil.

Mr Payungsak Chartsutipol an executive vice president of Siam United Steel said that prices of hot rolled steel had increased 30% YoY from last year to about USD 800 per tonne after steel ore, the upstream raw material, surged by 65%, together with a 200% increase in the price of coking coal. He added that ''Tight supply in the global market has driven steel prices to rise substantially. We need to increase the local prices to transfer the rising costs to end users.

Mr Payungsak said that ''Every local maker of cold rolled steel tends to move in the same direction on price hikes to make our businesses run further.” He added that Siam United projects flat revenue in 2008 from THB 24 billion in 2007. The tight supply of raw materials also means that the company is unable to increase its manufacturing output this year from last year's 900,000 tonnes. The company's maximum capacity is one million tonnes per year.

Mr Payungsak further added that ''Thailand has no local production of upstream steel, so we mainly rely on imported raw material adding that the company imported 80% of its hot-rolled coil mainly from Japan and Korea.”

Regulator endorses Gerdau stake acquisition in Comsisa

BNamericas reported that Colombia's industry and trade regulator SIC has endorsed Brazilian Grupo Gerdau's plan to acquire shares in local steelmaker Compañía Siderúrgica de la Sabana.

The Comsisa plant is located in the Tocancipá area of Cundinamarca department, 47 kilometer north of capital Bogotá. The plant began operating in May 2006 after a USD 40 million investments.

A Comsisa executive told BNamericas in late 2007 that the company was in negotiations with Gerdau to sell the plant that manufactures rods and bars that makes up half of Comsisa. He added that the regulator also approved Gerdau to purchase shares in the steelmaker Aceros Boyacá in Sogamoso city that produces nearly 80,000 tonne per year.

The executive said that "We are also forming a strategic alliance in which Gerdau has promised to supply bars to our sales branch, Codiacero.”

He added that with the agreement, local steelmaker Diaco which Gerdau purchased in 2006 will boost output in Colombia to nearly 780,000 tonnes of bars produced at Comsisa.

Aceros Boyacá Procesos consortium holds the other 50% of Comsisa.

SA Competition Commission imposed fine on New Reclamation Group

Business Day reported that the South African Competition Commission had imposed a ZAR 146 million fine on scrap metal company New Reclamation Group for its involvement in collusion and price fixing in the ferrous and non ferrous scrap metal markets.

Mr Thulani Kunene deputy commissioner Competition Commission said that the company was found to have contravened the Competition Act by agreeing to fix prices with its competitors for the supply of ferrous metal and to have fixed prices with its competitors for the purchase of non-ferrous scrap metal.

He added that t was also found to have entered into exclusive agreements and other arrangements with competitors to divide markets by allocating territories and customers to be supplied with ferrous and non ferrous metals.

Mr Kunene said that "We need to implement harsher penalties because, despite the Competition Act having been in operation since 1998, we still have a lot of cartels operating in the economy. This tells us that the penalties we imposed previously may not have had the desired deterrent effect.”

World steel producers to reduce 50% CO2 emission by 2050

Today, growing steel production, usually based on carbon, generates important quantities of CO2 worldwide. Concerned by the environment, the leading world steel producers are participating in research programs aimed at reducing CO2 emissions by 50% by the year 2050.

At Lulea in Sweden, Air Liquide has just realized a world first, on the Metallurgical Research Institute site. The Group has developed, built and tested a pilot plant enabling the CO2 to be separated from blast furnace gases, while at the same time recovering residual gases.

This work is being carried out within the context of the European Ultra Low CO2 Steelmaking project, coordinated by ArcelorMittal and involving leading European steel producers. Air Liquide is actively involved in this project. Air Liquide technology, combined with a recycling blast furnace, contributes to reduce the carbon’s consumption and hence the resulting CO2 emissions and also, to obtain the needed pure CO2 to be stored underground. These tests have demonstrated the feasibility of the process and confirmed the improved energy efficiency of the blast furnace. The second phase of ULCOS will include an industrial scale demonstration from 2010.

Mr François Darchis member of Air Liquide’s Executive Committee, senior vice president in charge of R&D, Advanced Technologies and Engineering said that "Air Liquide is constantly innovating to enable its customers to improve the efficiency of their processes and reduce their polluting emissions. Today, the Group spends 60% of its Research and Development budget on projects contributing to preserving life and the environment. Tomorrow, half of the Group's growth will come from applications linked to the environment.”

Felman to start production from third silicomanganese furnace

Platts reported that Felman Production Inc will see the first metal from its third furnace at its LeTart in West Virginia silicomanganese plant. As per report, Felman is in the process of warming up the largest furnace at its plant, after receiving a repaired transformer from Magnatech Industries of at Southbend in Indiana.

The report cited a source as saying that "The transformer is back and the furnace is under the warm up process and they will be starting production from the furnace very shortly by the end of April 10.”

Initial production from the third furnace is pegged at about 20 tonne of silicomanganese a day, with daily output to increase gradually to 120 tonne per day by April 21. Previously the third furnace was expected to pump out between 180 tonne and 200 tonne a day.

Production at the plant's two other furnaces continues to run smoothly, with daily output of silicomanganese averaging between 170 and 180 tonne per day. The third furnace was initially slated to restart in mid February but was pushed back due to a delay in repairs of the transformer.

Algoma urged to install bag houses in BF 6

The Sault star reported that Mr Tony Martin has urged the provincial government to withhold a mandatory operational permit for a second Algoma Steel Inc blast furnace until environmental concerns are addressed.

Ms Marie NDP MP in an open letter to Mr John Gerretsen minister of the environment of Ontario as saying that "I am requesting that Algoma Steel be not be allowed to start up blast furnace No 6 without a baghouse and that you insist on an expedited completion of the baghouse for No 7 blast furnace, prior to the issuance of a certificate of approval states the Sault Ste.

Algoma had previously announced it would install baghouse technology into No 6 in 2009 and the same state of the art emission cleaning system into No 7 this year. Baghouses capture 98% to 99% of furnace emissions essentially vacuuming out particle emissions.

Algoma's business plan calls for a near doubling of steel production, from 2.5 million to 4.5 million tonnes in the next few years and a significant contributor to achieving the target will be firing up a second operational blast furnace, No 6. No 6, idle for more than a dozen years, since performing six month backup duty in mid 1995, has the capacity to contribute 1 million tonnes of liquid iron annually, about half the proposed production boost.

New Zealand coking coal miners set to profit from record prices

New Zealand Herald reported that New Zealand premium coal producers are looking forward to a massive boost in revenue from record prices set for the coming year.

Hard coking coal used in steel making will fetch more than USD 300 a tonne after an agreement between Australian producers and Japanese steel mills. This is more than three times what was paid during the past year.

State owned Solid Energy, which made a USD 2.67 million loss in the half year to December, stands to benefit by USD 300 million in extra revenue from the 1.5 million tonnes it will export from its Stockton mine.

Mr Simon Doig GM of South Island said that "The coal industry is going through amazing growth and a boom period despite a near doubling of world coal prices.”

Pike River Coal's tunnel to a premium coal seam near Greymouth is nearing its final stages and the company says it hopes to get 120,000 tonnes of coal to the market for the USD 300 a tonne price before the end of the Japanese fiscal year in March 2009. For the following year Pike River aims to export one million tonnes as the mine reaches full production.

US recyclers look to auto dismantling to obtain ferrous scrap

Platts reported that with available ferrous scrap supplies steadily diminishing, at least two major US processors have turned to the auto dismantling and parts business in an attempt to lock up more material at source.

The move signals a possible change in thinking by some processors, who have traditionally viewed large scale auto dismantling as a related but distinctly separate industry that lay generally outside the scope of their core activities. Many processors handle junk cars on a small scale, but the need for significant storage space, the capabilities required to efficiently recycle usable components and numerous environmental issues involved with vehicle dismantling, present formidable hurdles for the average scrap yard.

In general, processors have instead attempted to lock up additional supply by acquiring or establishing joint ventures with one another. Schnitzer Steel Industries, a mini mill steel producer and scrap producer based at Portland in Oregon, ventured into the auto parts sphere in 2003, when it acquired Pick N Pull Auto Dismantlers, which at the time had 23 locations in six states, primarily in the West. Within a short time, the subsidiary's locations had increased to 30. In late 2005, Schnitzer also acquired GreenLeaf Auto Recyclers, an auto dismantler with 22 locations, which significantly increased the company's presence in the South, East and Midwest regions. Schnitzer made its auto parts business one of its three primary divisions, the other two being the Metals Recycling and Steel Manufacturing divisions.

Scrap processors in Europe, by comparison, have long been in the auto dismantling business, due in part to mandated requirements for end of life vehicles. In UK, for example, large processors such as European Metal Recycling and Sims Group have for years operated facilities known as Authorized Treatment Facilities, where vehicles are dismantled.

ZDB group profit in 2007 up by 30% YoY

ČTK reported that Czech steelworks ZDB Group of entrepreneur Karel Komarek raised pre tax profit by 30% YoY to CZK 692 million in 2007 and its sales grew by 3.1% YoY to CZK 6.835 billion. After tax profit reached CZK 550 million against CZK 412 million in 2006.

Mr Zdenek Juchelka CEO of ZDB said that "Boom in the steel industry started in 2004 and interest in iron and steel has been growing ever since. We have already penetrated, for example, the markets in the USA and South America. Our investments into production also helped a lot.”

He said that thanks to the investments, the company makes more sophisticated products and is able to compete with companies from Russia and other states, adding that there was demand for ZDB Group's products in the world. He added that "We currently export nearly 70% of output.”

Mr Tomas Hladik CFO of ZDB said that thanks to last year's results, the company will be able to invest and develop further, which will secure good results also for the coming years. He added that in the last five years, ZDB Group invested CZK 1.7 billion into modernization and investments this year are planned at some CZK 600 million.

ZDB Group, producing a wide range of goods for the car, aviation, shipbuilding, construction and food industries, together with the firms BONATRANS and KOVOSVIT, is part of Komarek's financial group KKCG. ZDB Group and BONATRANS Group employ nearly 4,000 people, ranking among leading employers in the region.

Zinc prices to climb in next 2 years – Teck Cominco

Purchasing.com cited Mr Don Lindsay CEO of Canadian mining firm Teck Cominco as saying that zinc prices will head up in the next two years as more zinc mines are shut down.

Mr Lindsay said that closing of mines in all markets except China, coupled with the possibility of an export tax on China's high grade zinc, will make the global zinc market very tight.

BOC provides vital element in carbon capture projects in UK

Linde Group’s BOC announced that its extensive experience in the handling and storage of carbon dioxide is making it a key partner in a number of Carbon Capture & Storage projects, including a proposal for the first power station in the UK equipped with Carbon Capture & Storage technology.

It said that “The UK government has recognized the importance of Carbon Capture & Storage technologies as a way to reduce carbon emissions in a world still dependent on fossil fuels for power generation. In November 2007 it announced a competition in which the winning industrial scheme will receive substantial funding to complete the world’s first commercial scale project to capture carbon dioxide from a coal fired power station and store it geologically offshore.”

BOC’s expertise lies in the purification, compression, cryogenic conditioning and transport of carbon dioxide. BOC is working with a consortium of leading international companies led by RWE Power to develop a flexible solution which will enable Carbon Capture & Storage to be applied to a potential new coal fired power station in Tilbury. Proposals have been submitted as part of the Government competition.

Mr Mike Huggon head of the regional business unit, UK and Ireland of BOC said that “The need to solve the challenge of reducing emissions while still using fossil fuels at least in the short to medium term is becoming increasingly urgent. Carbon Capture & Storage offers enormous potential in this regard and governments around the world are keen to develop this technology. At BOC, we have many years experience in handling and storing gases including greenhouse gases such as carbon dioxide. We are pleased that the UK government has shown its commitment to solving this problem and BOC is ready to play its full part in making Carbon Capture & Storage a commercial reality.”

Man dies in steelworks accident at Corus Teesside

It is reported that a man has been killed in an accident at Corus Lackenby site near Redcar in Teesside. Police and the Health and Safety Executive have confirmed they are investigating the death.

A spokeswoman for Corus said that “It would also be investigating the death which was a tragic loss. Mr Kristian was employed by Vesuvius as a contractor working on the Corus site. He was carrying out maintenance work when the accident happened, which resulted in fatal injuries.”

A spokeswoman for the Health and Safety Executive said that "The police will be looking for whether there is anything like manslaughter and we will be looking to see if there have been any breaches of health and safety.”

Developing economies produce 41% of global output – WB

The latest development indicators showed that output from developing economies has climbed to more than 40% of the world’s total output, which reached USD 59 trillion in 2006.

World Bank, which released the World Development Indicators 2008, said that developing economies’ output had grown from 36% in 2000, to 41%. It said that China currently ranked as the second largest economy after the US, using new measurements that took into account the differences in price levels between countries.

World Bank said that most of the developing regions had increased their shares in the global output, except regions such as Latin America and the Caribbean. The World Bank added that the share of high-income economies had decreased by 5%.

Mr Alan Gelb acting World Bank chief economist and senior vice president for development economics said that “We live in a world of highly interdependent markets for goods, services, finance, labor and ideas. When we measure economies on a comparable global scale, the growing clout of developing countries comes into sharp relief.”

Złomrex to take over Gdynia and Szczecin shipyards

Warsaw Business Journal reported that metals giant Złomrex is negotiating the takeover of shipyards in Gdynia and Szczecin. As per report the treasury ministry of Poland is currently negotiating the takeover of the Gdynia and Szczecin shipyards by Amber, a company established by steel industry group Złomrex.

Amber was the only bidder in both tenders for the sale of the shipyards and has already gained exclusive negotiation rights with the Treasury for the Gdynia Shipyard, the price for which should be known by mid April. It is not known exactly when the price for the Szczecin shipyard, Stocznia Szczecińska Nowa will be determined, but the Treasury is expected to make a final decision on prices and conditions for both shipyards by the end of April.

One of the main sticking points in the negotiations is the status of the shipyards' debts. Amber is insisting that the Treasury pay off the shipyards' heavy debts before it takes over the firms. The shipyards are so debt-saddled that the government has been lending each of them zł.100 million every two months to cover operating expenses.

Mr Przemysław Sztuczkowski president of Złomrex told daily Parkiet that "In the case of Gdynia Shipyard, we are negotiating the amount which we believe the state should invest in the firm. It is hard to say whether it is at the lower end of PLN 500 or at the higher end of PLN 800 million.”

According to estimates by Gdynia Shipyard, the Treasury should invest PLN 515 million in the company's debts and modernization, while a strategic investor ought to pump at least PLN 500 million into the firm.

STX begins construction of 50,000 DWT tankers

Port News reported that the steel cutting for the new ship of PRISCO was held at STX Shipyard in South Korea. The new vessel is the first of seven tankers of 51,000 tonnes deadweight each.

The main ship of this series is scheduled to put into operation on November, 2008. The other vessels are planed to be delivered by May 2009.

Mr Konstantin Globenko director of Fleet Technical Department of PRISCO said that the new tankers will be the first vessels in the world built with Winterization class D according to new rules for shipbuilding and operation under the conditions of negative degrees worked out by Lloyd’s Register.

He added that all ships of the new series will be double hulled and fitted with special systems and equipment providing tankers with safe operation and transportation of bulk liquid cargoes under the conditions of negative degrees.

Credo Construction wins award for innovative use of a steel system

It is reported that Bellingham Washington based Credo Construction Inc has recently been recognized with an Award of Merit from the Metallic Building Company's Design Build Competition at the 2008 Metallic National Sales Meeting at Las Vegas in Nevada

The award was given for Credo Construction's innovative use of a steel building system in the construction of the Maple Fuels General Store in Maple Falls, Washington.

By changing the design of the building from a traditional wood frame to a structural steel frame, Credo Construction was able to meet the budgetary requirements of the client and was able to move forward with the project.

The building, designed by architect Mr Kerry Garrett, is modeled after a Swiss Chalet. Highlights of the building include a clock tower, a wood and stone exterior and seamless integration with the existing store.

New World Resources doubles 2007 profit to EUR 196 million

According to consolidated results by international accounting standards, Dutch company New World Resources the owner of Czech black coal producer OKD, made a EUR 196 million profit in 2007 nearly twice as much as in 2006. Its revenues grew by 10.7% YoY to EUR 1.37 billion.

(In EUR million)

New World Resources sold approximately 13.1 million tonnes of coal in 2007, 7.8 million tonnes of which was coking coal. It also produced 1.3 million tonnes of coke. As of January 1st 2008, New World Resources had roughly 419 million tonnes of coal in deposits ready to be mined.

Mr Zdenek Bakala board vice chairman of New World Resources said that "Since the time we bought the then company OKD back in 2004, the whole group has undergone an extensive restructuring under an experienced and highly motivated team of managers and the aim was to focus primarily on coal mining and coke production. He added that "NWR is now prepared to play a key role in the opening of further opportunities for black coal industry within our region.”

New World Resources is a member of European company RPG Industries, 81% in which is in the hands of investors represented by Bakala and Peter Kadas. The remaining 19% is held by US First Reserve and American Metals and Coal International. New World Resources is a leading Central European and the largest Czech black coal mining company in terms of revenues and coal production and the second largest domestic producer of coke. It operates five active mines and supplies coal to clients in the Czech Republic, Slovakia, Austria, Poland, Hungary and Germany.

Polish prosecutors charge engineer for coal mine accident

AP reported that prosecutors have charged the head engineer of a Polish coal mine in connection with a 2006 methane blast that killed 23 miners.

As per report prosecutor Mr Michal Szulczynski said that the engineer was charged with endangering the lives and health of those working at the Halemba coal mine in the southern city of Ruda Slaska.

Mr Szulczynski said that six people have been charged so far in the investigation, including the mine's former director.

The miners were killed November 21st 2006, while attempting to retrieve equipment from a shaft that was closed months earlier because of dangerously high gas concentrations. The accident was the country's worst mining disaster in three decades.

CEZ wins 2008 Czech Top 100 ranking

According to results the association Czech Top 100 announced, Czech power producer CEZ is the most admired company in the Czech Republic for this year, followed by Skoda Auto, the winner in the previous nine years and drinks producer Kofola.

(Sourced Czech Top 100)

As per report the companies have been picked by managers of leading companies, economic and financial analysts, representatives of unions and other organizations. The voting is advantageous rather for large companies, but even much smaller companies with something interesting to offer have a chance. It may be their progressivity sales policy or investments.

BNSF upgrades Seattle intermodal facility

It is reported that BNSF Railway Co and CSX Transportation are improving facilities associated with their two highest revenue generators: intermodal and coal.

BNSF said that it has recently installed four electric, rail mounted gantry cranes at the Seattle International Gateway intermodal facility. The cranes help increase throughput about 30% and absent pollutant emitting diesel engines and the need for diesel trucks to move containers within the facility widen SIG's green footprint. The cranes are wider than the traditional gantry cranes and can regenerate power each time they lower a load.

Mr Mike Burke assistant vice president of BNSF Intermodal Hub Operations said that "The installation of these wide-span cranes has nearly doubled the capacity at our SIG facility and reduces our impact on the environment while supporting the growth of international commerce at the Port of Seattle.”

Meanwhile, CSXT plans to expand and upgrade an Erwin, Tenn., terminal that serves as a key gateway for coal trains operating between Appalachian mines and receivers.

As part of an expanded project aimed at improving bulk service, the Class I will spend USD 6 million to lengthen track and complete structure work at the terminal to accommodate longer distributed-power coal and grain trains. CSXT also will spend about USD 3 million on communications and technology upgrades in the region to support distributed power and hire eight additional employees for the Erwin facility.

Qatar Steel Mauritanian venture gets okay

Reuters reported that Industries Qatar’s subsidiary Qatar Steel has decided to move ahead with a USD 2.1 billion iron ore plant in Mauritania after completing a feasibility study.

According to the study published on April 7th 2008 for the developers, which also include Australia's Sphere Investments Ltd and Mauritania's state owned iron ore firm Societe Nationale Industrielle et Miniere, the scheme's capital costs will be USD 2.14 billion.

A prelim study in February 2008 had said project costs would rise by 13% to USD 2.15 billion from USD 1.9 billion due to cost escalation.

Qatar Steel bought 49.9% of the Al Qalb Al Og iron ore venture in northern Mauritania for USD 375 million in November after Saudi Basic Industries Corp pulled out saying returns would be too low.

The project will target 7 million tonnes a year of direct reduction pellet.

Steel availability in UAE not an issue – Report

Emirates Business reported that a leading building materials company in UAE does not see any shortage of steel in UAE although the prices have soared.

Mr Rizwan Sajan chairman of Danube Building Materials told Emirates Business that “There is still no shortage in the steel market but you have to pay the high prices. There is also no black market because availability is plentiful. Whatever quantity you want is available, it is just that the price has become inflated.”

Mr Sajan said the price of steel has shot up since the beginning of 2008 from AED 3,000 per tonne to AED 4,000 and that it is up by 60% over last year’s average price of AED 2,500.

He however added that “But in the case of the cement sector, even if you want to pay the price, supplies are not available. So then the black market comes into the picture.”

India to import 7 million tonne cement from Pakistan

It is reported that, after banning export of cement to control inflation, India plans to increase import of cement from Pakistan and buy a total of about 7 million tonnes from Pakistan in 2008-09 fiscal.

A senior commerce ministry official said that "We have already imported 2.1 million tonnes of cement from Pakistan and we plan to import about 4,000 tonnes every day starting May 1st 2008. In total, we plan to import about 7 million tonnes of cement by 2008. However, there are some infrastructures constraints which we need to address."

Saudi to set up USD 3 billion refinery in Bangladesh

Reuters reported that Bangladesh has approved a USD 3 billion investment by Saudi Arabia to set up an oil refinery with a capacity to produce 300,000 barrels of oil products a day. Hi Tech International Group of Saudi Arabia and Cosmopolitan Oil Refinery Management Limited of Bangladesh have signed a deal to implement the project within the next 40 months.

Mr Mohammad Mohsin secretary of Saudi's energy & mineral resources division said that Hi Tech International would produce for the domestic market but may also make products for export. The plant will be set up with foreign investment and will import more than 5 million tonnes of crude oil from Saudi Arabia.

Mr Dewan Sultan Ahmed chairman of Cosmopolitan Oil Refinery Management said that the refinery's production capacity will be more than 3 times that of Bangladesh Eastern Refinery Limited.

Bangladesh imports 3.8 million tonnes of fuel a year, including about 1.5 million tonnes of crude oil.

Exploration starts at two new coal blocks in Thar

Daily Times reported that Deep Rock Drilling has started drilling work recently for coal exploration at 2 new blocks of the Thar coal sites.

As per report, Sindh Coal Authority had awarded drilling work contract to Deep Rock Drilling at Block VII and VIII and it has started drilling 80 holes in both the blocks, which would be completed in 3 months.

The sources said that the work on developing further 2 blocks at Thar had been started early in 2008 and 100 square kilometers area is allocated for each block. The entire development work at the blocks would be completed by end of 2008. The SCA has developed 6 blocks so far at the Thar where an estimated 12 billion tonnes reserves of coal.

Sindh Coal Authority had awarded licenses at 6 blocks to American AES, Hassan Associates, Australian based Couger Energy, Sindh Carbon Energy Limited, Associated Group and Thar Coal Mine Company.

The Geological Survey of Pakistan had discovered the huge deposits of coal at Thar in 1992 during the research program assisted by United States Geological Survey. The area of Thar coal is spread over 9100 square kilometers with dimension of 140 kilometers in north south and 65 kilometers in east west. Geologists believed that the estimated reserves of Thar are about 175.506 billion tonnes of coal and are sufficient to meet fuel requirements of Pakistan for centuries, having potential for generating about 100,000MW of electricity.

Galadari Trucks to build new facility for JCB

It is reported that Galadari Trucks & Heavy Equipment Llc will commission a new facility in Al Quoz for JCB in May 2008 as part of its commitment to service customers.

JCB in a statement said that the new building would house all functions of its business, with working facilities designed for production efficiency and world class service. New products will be launched and customer support will be strengthened in the region.

It added that investments by established distributors, such as Galadari Trucks, as well as the new dealers would be the backbone of its 5 year growth plan.

The statement added that "To support the increased customer demand in volume and product range, JCB's operation in the Middle East is attaching great importance in delivering professional training to its dealers' sales force."

In 2007 JCB posted a turnover of USD 4.5 billion as compared to USD 3.5 billion in 2006, with 72,000 machines sold. Its market share in the construction equipment market worldwide rose to 12% from 10.4%.

Al Maabar inks USD 5 billion deal with Jordan government

UAE news agency WAM reported that Abu Dhabi based Al Maabar International Investments and Jordan's government has signed a deal for a development with investments of up to USD 5 billion.

Mr Yousef Al Nowis MD of Al Maabar said that the project at the Red Sea city of Aqaba involves developing the town's port and building tourist, residential and commercial buildings in addition to a financial district. He added that it will carry out the plan in 2 stages, to be completed in 2011 and 2015 respectively. The project will create more than 15,000 job opportunities.

Al Maabar is also developing a USD 10 billion tourism, office and housing complex north of Tunis.

Oman shortlists 8 firms for power & water plant

Oman Power & Water Procurement Company said that it has short listed 8 international firms for 400 MW power and water desalination at Salalah in the south region.

The eight firms are
1) General Electric
2) Union Fenosa
3) Mitsui
4) Malakoff
5) Mubadala
6) Marubeni
7) Transfield Services Infrastructure
8) Sembcorp.

Mr Ahmed Al Busaidy project manager of Oman Power & Water Procurement said that "Eight companies are pre qualified for the project and their bids will be opened in May 12th 2008. The award is expected to be 3 to 4 months after that."

He added that the project would be awarded on a build, own, operate and transfer basis. The desalination plant would supply 15 million gallons of water per day and the power plant was expected to be in operation in the summer of 2009.

SABIC quits USD 1 billion petro project talks

MEED reported that Saudi Basic Industries Corporation has pulled out of talks on taking a stake in a USD 1 billion petrochemical project.

SABIC had agreed with Yanbu based Osos Petrochemicals to consider taking a 35% stake in the joint venture polybutylene terephthalate complex. PBT's off take cost could be a reason for the breakdown of the talks.

Mr Ali Al Naimi Saudi oil minister said in April 2006 that Osos aims to produce engineering plastics and specialty products and plans to start production in 2010. It also plans to sell shares in an initial public offering.

OPEC to earn USD 1 trillion from exports in 2008 – Report

According to US government's top energy forecasting agency Energy Information Administration, OPEC member nations are expected to rake in almost USD 1 trillion in 2008 their oil exports due to record crude prices.

Net oil export earnings from OPEC were forecast to soar by 45% from record USD 676 billion to USD 980 billion in 2008 and then fall to USD 880 billion in 2009, when oil prices are expected to be lower.

On a per capita basis, OPEC's oil export revenue will jump by 43% in 2008 to USD 1,636. OPEC members are spilling over with cash from strong global oil demand.

Saudi Southern Cement Q1 2008 net profit up by 48% YoY

Southern Province Cement Company has posted a 47.8% YoY rise in January to Mach 2008 quarter net profit after the launch of a new unit amid strong demand. It made a net profit of SAR 235 million in January to Mach 2008 quarter as against SAR 159 million in January to Mach 2007 quarter.

Before Southern Cement, 3 of Saudi Arabia's 5 biggest cement producers by market value, including Yamamah Cement, posted first quarter profit growth of at least 11% on a jump in domestic demand. Companies in Saudi Arabia are developing or have announced projects in oil, gas and industries worth more than USD 460 billion.

Mr Faisal Hasan head of research at Global Investment House predicts that profits of Saudi cement firms may rise by at least 20% in 2008. He added that cement output capacities are expected to double to 60 million tonnes within the next 3 years as existing companies expand and new producers enter the market.

Iran Crescent gas project to be operational by mid 2008

ISNA quoted Mr Hamid Zaheri MD of Crescent Petroleum Iran as saying that operations for the export of Iran’s gas to the UAE based on Iran Crescent deal will be kicked off in next 3 to 4 months.

Mr Zaheri said that presently talks are underway between Iran and the UAE regarding the price and the volume of export gas. He added that the price of exporting gas to the UAE based on the new price formulation is at least twice as the price of gas which is exported from Qatar to the UAE, but the Iran Crescent deal is based on the price of crude oil so the price of export gas will inevitably increase.

He said that since the time of signing the initial MoU, the price of gas has been 5 fold due to the global rise of crude oil. UAE has voiced interest for receiving more gas from Iran, but Iran has stipulated that for the time being it is not able to raise the volume of export gas to the UAE.

Recently, Mr Hamid Jafar MD of Dana Gas Company of the UAE has announced that it will receive Iran gas as of mid 2008. He remarked that the comments of Dana Gas managers can pave the way for the export of Iran gas.

Kahnuj titanium complex progress stalled

MEED reported that progress at Iran's USD 500 million Kahnuj titanium dioxide complex has stalled while the government searches for international investors to take shares in the plant. Sources said that Tehran's decision to privatize the complex, which was originally to be state funded, is continuing to delay work that was meant to start 9 months ago.

Some local companies have shown an interest in developing the complex in southern Kerman province, but they have yet to find foreign parties to provide the technology and finances required to carry out the work.

When work on the project was initially tendered in 2006, the client, Iran Mines & Mineral Industries Development & Renovation Organization said that it would be state funded. However, it has since changed its position.

The complex consists of 4 parts, a mine to provide feedstock for the plant, a beneficiation unit of 130,000 tonnes a year, a slag processing unit with capacity of 70,000 tonnes a year and a pigment production plant of 50,000 tonnes a year. The pigment will be used domestically for production of paint, polymers, printing ink and textile dye, as well as in the aviation industry.

Until recently, consultancy services at Kahnuj were provided by the local Mr Kar Azin Consulting Engineering Company. But the firm's work has been suspended because of the slow privatization process. Kar Azin has completed feasibility studies on the project with a German company. The results of these studies, based on a facility producing 15,000 tonnes a year of titanium dioxide pigment, are believed to be positive.

The program has been frustrated by a lack of investor appetite for the shares. This is partly due to a lack of appetite among domestic investors and partly because overseas investors are wary of investing in the country while the controversy over its nuclear power program continues. Among the projects that are suffering as a result are a series of infrastructure schemes, including a rail link between the port of Chabahar and Iran's eastern neighbors.

Kuwait strikes key refinery deal with Saudi Arabia

Kuwaiti newspaper Al Rai reported that Saudi Arabia and Kuwait have struck a deal over the site of a planned oil refinery near their common border. The deal was reached during talks in Riyadh a few days ago.

As per report, Saudi Texaco, which manages oil on behalf of Saudi Arabia in the divided zone shared with Kuwait, was reported to have objected to the location of Kuwait's new refinery in an area known Al Zour, which is close to the border.

Kuwait has raised the estimated cost of the 615,000 barrels per day refinery to USD 19 billion from USD 15 billion, due to an increase in global prices.

When Kuwait began planning for the project several years ago, it had earmarked only USD 6.3 billion. However, bids by international companies came at more than USD 15 billion, prompting Kuwait to cancel the tender and invite new bids on the basis of cost plus profit margin.

Dubai to import LNG at Jebel Ali port

MEED reported that Dubai is planning to import liquefied natural gas for use in power generation, with the Dubai Supply Authority developing proposals to build a terminal at Jebel Ali.

As per report, it is expected that the terminal will initially import LNG from existing sources such as Qatar and Egypt, and may also purchase gas from the Far East on the international market. In the longer term, it could also import gas from Iran if issues delaying Tehran's LNG projects can be resolved.

Contractors have been invited to pre qualify for a construction contract for the terminal in Dubai. An award is expected by August and completion is targeted for the first quarter of 2010. The works include building a jetty, landing areas, a 1.5 kilometer long sub sea pipe, gantry cranes and other loading facilities. The UK's Halcrow is the consultant.

Gas availability is a growing concern for DUSUP and Dubai Electricity & Water Authority. According to a prospectus issued by Dewa ahead of a proposed bond issue last year, Dubai has enough gas supplies to fuel power generation in 2008, but from 2009 onwards the emirate will need to secure more gas supplies or start using alternative energy sources.

Chinese crude steel output estimates for 2008

Mr Luo Bingsheng deputy chairman of China Iron & Steel Association last week said that China's crude steel output is estimated to reach 520 million tonnes to 540 million tonnes in 2008, an increase of 30 million tonnes to 50 million tonnes or 6.3% to YoY 10.4% YoY.

Mr Luo also predicted that the domestic apparent consumption of crude steel is likely to grow about 11% YoY slightly lower than the 11.87% in 2007.

But he noted there are still many uncertainties to affect China's aggregate iron and steel production volume this year.

Iron ore price negotiations – CISA opposes breaking rules

It is reported that Mr Luo Bingsheng, the executive vice chairman of China Iron & Steel Association, indicated on April 10th that the rules reflect win to win principle and both requests from suppliers and demanders, so the rules should be respected and maintained.

He said “Chinese iron and steel industry does not agree to change iron ore price negotiation rules.”

Mr Zhang Qi president of China Development Institute thinks that the iron ore negotiation involves in fair and impartial problems and if the other side makes bold to amend rules in long term period of validity, then Chinese enterprises can use law weapon to reject.

He added that in response, Chinese enterprises should make efforts to express own views to strive for the rights and interests. On the other hand, we should have done the worst intention, after all, iron ore is a seller’s market, Chinese enterprises should fully evaluate the advantages and disadvantages after the broken negotiation.

Chinese steel exports rebound on domestic and global price gap

China exported 4.16 million tonnes of steel in March an increase of 1.05 million tonnes from February, spurred by the widening price gap between the domestic and international markets.

Mr Xu Xiangchun industry expert said international steel prices rose more sharply than domestic prices, with the price gap extending to USD 100 to USD 200 per tonne which propped up more exports.

He said the rising exports in March were in part due to the undelivered goods in February, and that the tax rebate abolition for the exported energy-consuming goods was beginning to bear fruit.

Mr Xu said despite the increase from February, exports declined from the same period last year and that more tightening policies to come out if monthly exports surges again.

Mr Luo Bingsheng vice chairman of China Iron and Steel Association, forecast the country's exports of crude steel would decline to 52.5 million tonnes this year from 73.07 million tonnes in 2006, largely due to the government's effort to curb the exports of the alloy of iron and carbon.

Chinese yuan breaks 7 mark against USD

China's currency, the yuan, was set to trade at 6.992 yuan against the US dollar on last Thursday, breaching the 7 yuan mark for the first time since the government un pegged it from the dollar in 2005.

Mr Shen Minggao, an economist at Citigroup in Beijing, said that like many economists, he was not surprised to see the yuan break the 7 yuan mark. He said "It was quite natural.”

Mr Zhuang Jian, a senior economist with the Asian Development Bank mission in China, also believed a weaker U.S. dollar was the most direct factor behind the accelerated appreciation of the yuan.

China ended the currency's peg to the dollar in July 2005, and since then the yuan's reference rate has been set against a currency basket that also includes the euro, yen, won and British pound. The value of Chinese currency stayed above eight to the dollar for many years before the 2005 regime reform. The yuan broke the 8 yuan threshold on May 15, 2006.

AAM launches new campaign against China

The Alliance for American Manufacturing launched a statewide advertising and grassroots campaign last week focusing on Pennsylvania job losses.

The ad campaign “China Cheats. Pennsylvania Loses.” urges the presidential candidates to hold China accountable for its unfair international trade practices that result in Pennsylvania job losses. The campaign will run through the April 22nd Pennsylvania primary and continue in Indiana and North Carolina.

The “China Cheats” ads will appear in seven media markets across the state, including: Allentown, Altoona, Erie, Harrisburg, Johnstown, Philadelphia, Pittsburgh, Scranton, and Wilkes-Barre. A PDF of the ad is posted at: http://www.americanmanufacturing.org/wordpress/wp-content/uploads/2008/04/aam_pennsylvania_032708a.pdf

Mr Scott Paul director of AAM said that “China is a major contributor to today’s economic woes. From toxic toys to nonexistent environmental standards, China continues to demonstrate that it’s not playing by the same rules as everyone else. Pennsylvanians have lost over 78,000 jobs since 2001 as a result of the trade deficit with China. We’ve heard about Iraq, NAFTA, health care, and home mortgages, but we have yet to hear any of the candidates clearly commit to solving the China crisis.”

Mr Paul said that “With the race tightening, the candidates cannot dodge this issue any longer. The economy is the number one concern for Pennsylvania voters. Our ‘China Cheats’ campaign features a hard hitting, direct ad that makes it clear that when Washington lets China win, workers in cities like Pittsburgh and Allentown lose. The campaign will follow the candidates until primary day, pushing them to make a real commitment to solving the China problem.”

Market prices of imported iron ore at Tianjin Port

The market price of iron ore fines imported at Tianjin port is given below

(Sourced from MySteel.net)

14 killed in coal mine blast in Liaoning

Xinhua reported that a coal mine gas explosion at northeast China's Huludao City in Liaoning Province has killed at least 14, two missing and two others were injured.

According to the Huludao City coal mine safety supervision authority the accident took place at the No 3 Coal Mine of Shaguotun Village in Nanpiao District at 10:15 AM Saturday when 39 miners were working in a shaft.

When the blast hit, 21 miners escaped the shaft safely. The injured were immediately sent to hospital and both were out of danger.

A rescue operation was ongoing at the private coal mine, which had all the necessary licenses required.

Import price of chrome ore at Tianjin port

Import price of chrome at Tianjin port is under

(Sourced from MySteel.net)

Chonggang participates in Shaanxi Xiaojinhe magnetite project

It is reported that Chongqing Iron and Steel Group and Shaanxi Huijin mining technology development Company, China Metallurgical Changtian International Engineering Company formally signed contract to cooperate with each other to exploit Shaanxi Xiaojinhe magnetite project

As per report, the total investment of this project is CNY 5 billion, it will construct 8 million tonnes per year mine, 1.2 million tonnes pellet plant and 600,000 tonnes sponge iron factory.

It will fully use of low grade iron ore resources in Shaanxi Ankang region, at the same time, to meet the iron ore demand of Chongqing Iron and Steel Group.

Chery builds engine block plant

It is reported that Chinese carmaker Chery Automobile has started the construction of a foundry plant of engine blocks with an investment of more than CNY 2 billion to meet its demand of car production.

According to Chery officials the foundry plant, covering an area of 214,300 square meters, will also make crankshafts, exhausts and other parts.

The project's first phase will be completed at the end of this year with an annual production capacity of 800,000 casts, and the whole plant is scheduled to be completed in 2010 with six production lines to make 2.4 million pieces annually.

Chery official said engine blocks have become a bottleneck for the development of Chery, which aims at both domestic and overseas markets.

Chery Automobile based in Wuhu plans to raise its annual output to 1 million vehicles by 2010.

Import price of manganese ore at Chinese ports

Import price of Mn ore at Chinese port is given below

(Sourced from MySteel.net)

Baosteel pioneers "Big Y" project mechanism in China

Along the developing track of introduction, absorption and re-innovation, Baosteel Branch explores and forms six sigma lean operation "Big Y" project mechanisms, thus realizing the stride from introduction to innovation of six sigma lean operation ideology.

Six sigma lean operations is a leading management mode introduced by Baosteel Branch in 2002 and is an important means for enterprises to improve production and operation.

As the enterprises develop continuously, it is hard to solve some key operational problems involving broad aspects, crossing processes and departments with single six sigma lean operation project. With the experience accumulated for many years, Baosteel Branch started to independently explore six sigma lean operations "Big Y" project mechanism from last year.

"Y" stands for the problems to be improved in six sigma lean operation. "Big Y" project, just as its name implies, is to solve the key problem involving a broad range and requiring improvement by a wide margin. The direction for selection of "Big Y" projects shall closely fit in with the pulse of corporate development and general planning, focusing on the key problems affecting the general target of production and operation and the crucial performance indexes. Compared with previous single projects, "Big Y" projects concentrate more on how to scientifically and systematically solve problems in a process.

In a "Big Y" project, it needs to solve not only the problem of process chain relating to many technological steps but also the general problem for different technological steps. Guided by the same target, each plant and department concerned is responsible for the sub-project in "Big Y" project respectively so as to consolidate resources and efficiently solve the fundamental problems in a concerted way. For example, in a "Big Y" project last year "Improve the input capacity of raw material wharf", in the adverse circumstance of heavy pressure on the logistics of raw material entrance and possibility of shunt, a team is formed to solve the problems, in which the Transportation Department., Manufacture Department and Iron making Plant of Baosteel Branch together with Raw Material Purchase Center of Baosteel Company Ltd play their respective function. After the project is implemented, shunt of raw material does not occur, furthermore, a profit of nearly CNY 100 million is created, and 1 patent and 2 technical know how are preliminarily formed up to now.

According to the features of "Big Y" projects, Baosteel Branch explores and forms the big star and big black belt promotion method to speed up the training of professional managerial talents. For example, in a "Big Y" project "Improve the 3 target hit ratios in continuous casting", there are not only the black belts taking charge of sub-projects, but also a big black belt for unified coordination and command, which greatly improves the employee's capability for organization and coordination and the execution efficiency of the project.

Rosneft selects Tenaris products and services for Vankor

Tenaris has recently signed two major supply contracts with Rosneft for the Vankor and Sakhalin Island developments.

The Vankor development has estimated reserves of 2.6 billion barrels, representing an investment of USD 5 billion. Located in Siberia, the drilling environment is particularly harsh, registering very low temperatures and requiring unconventional drilling methods: horizontal wells that extend two kilometers.

Rosneft confided in Tenaris's technical differentiation and in the performance of TenarisHydril Blue premium connections for the most sophisticated aspects of the project. For Vankor's 27 horizontal wells, Tenaris is supplying 4,400 tonnes of 7 inch N80 grade tubes, specially modified for cold resistance, with TenarisHydril Blue" connections.

The 7 inch liner of the Vankor project has to resist extremely low temperatures of minus 60° C, requiring a premium connection to support high torque values.

Mr Gustavo Cedillo CIS sales director said that “Our competitors have been trying to engineer and trade a connection with these characteristics, but they have not been able to come up with a solution comparable to TenarisHydril Blue technology, especially given our track records.”

Mr Raúl Ageno head of Tenaris in Moscow said “Our connections were put to the test against other major providers, but ultimately the customer chose Tenaris. Tenaris will provide 21 kilometers of tubes with N80 and high collapse steel grades and premium connections. Drilling is expected to begin in April.”

OMK VMZ puts testing unit for pipe collapse in operation

OMK announced that its Volzhsky Pipe Plant has begun operation of an installation for testing for the casings collapse.

Built using the most sophisticated technical solutions unique installation is designed to demonstrate the characteristics of resistance with maximum hydraulic pressure atmospheres 2000. The range of diameters of casing, which is the installation, ranges from 114mm to 340mm.

OMK said that this testing facility was not available in Russia and with implementation of this project, OMK will be able to offer greater set of services offered to consumer assortment of oil and gas pipes.

Chelyabinsk Zinc to invest RUB 2.7 billion in Amurskoye field

Interfax reported that Chelyabinsk Zinc Plant will invest an estimated RUB 2.7 billion in the development of its Amurskoye zinc deposit between 2007 and 2011. The investment will be in exploration, mine construction and social infrastructure. The deposit will be developed by a state of the art deep mine, with some 400 employees.

Mr Vsevolod Geikhman CEO of CZP told reporters that the mine and concentrating plant would cost something like USD 150 million, but that this would be adjusted once the plans are ready at the end of this year.

He said that "We have invested RUB 250 million in exploration and drilling 32 kilometers of boreholes. Preliminary results confirm that zinc reserves are 1 million tonnes to 1.5 million tonnes, as indicated by the license. We plan to list the reserves with the State Reserves Commission in the summer, in the second half of this year and then perform a feasibility study and going through all the necessary state appraisals, including the environmental ones.”

CZP won an auction for a 25 year license to the Amurskoye field at the end of 2006.

CZP produces around 60% of Russia's zinc. It produced 165,007 tonnes in 2007.

Russia to impose export duties for cement

The press service of Russian Federal Antimonopoly Service reported that FAS is proposing to bring in export duties for cement to provide the interests of Russian consumers with this product.

It said “FAS proposes to bring in export duties for cement to decrease the price for cement for the period of seasonal rise in demand.”

Formerly Russia has annulled import tax for cement; it was 5%, to increase the volume of the purchase in foreign countries.

ZATR gets new orders from Alchevsk and Dniprospetsta

Millennium Capital reported that Ukraine's manufacturer of large transformers, Zaporizhtransformator announced that it has received two new orders worth a total of USD 14.7 million from steel companies.

One of them is for 5 power transformers for the local electric power plant at Alchevsk Steelworks and the other one is for Dniprospetstal which will supply power to low voltage steel making equipment.

Millennium Capital analyst said that “This is very positive news for ZATR as the transformers for DNSS are a totally new product for the company, which specializes in large and extra large transformers for the power industry.

Yasynivka Coke increase net income in 2007

According to preliminary financials to be presented at the company's May 29th AGM, Yasynivka Coke plant increased its net income to USD 29.9 million in 2007, or 28% above our expectations. Last year's estimated net income margin grew by 8.3% in 2007.

The financial said we attribute the sharp increase in the company's net income to the coke price hike in H2 2007 and increased subsidization of YASK by Donetskstal Group, YASK's mother company. The latter guarantees YASK's stable and sufficient supplies of coking coal at below market prices from the Group's coalmines in Ukraine and Russia. We believe the coke and coal deficit will continue in 2008 to 2009, which promises increased YASK revenues and profits.

Mr Yuriy Ryzhkov analysts with Millennium Capital said that “Based on an average expected coke price in Ukraine of USD 336 per tonne in 2008 we estimate YASK's sales at USD 541 million. This, given the current net margin of 8.3% implies net income of USD 45 million. We reiterate our Accumulate recommendation on the stock.”

Sourced from Millennium capital

Ukrainian industrial output in Q1 of 2008 up by 7.8% YoY

According to the State Statistics Committee, industrial output increased by 7.8% YoY in Q1 2008. The monthly growth of industrial output in February was higher than in January up by 7.1% MoM.

The largest contribution to industrial output in Q1 2007 was made by mechanical engineering up by 33.3% YoY mainly due to the rise in automobile manufacturing. Metallurgy, with a 24.7% share in 2007, up by 1.7% YoY in Q1 2007, slightly accelerating its growth. Utilities and food processing maintained a high, though slightly lower, growth of 6.7% YoY and 8.3% YoY respectively. Coke and refined petroleum showed slightly higher reduction in output than in 2 Months 2008.

Mr Viktoriya Bezverkha analysts with Millennium Capital said that “As we expected, industrial output grew strongly in Q1 2008, though still lower than in Q1 2007. The increase in mechanical engineering was fueled by high consumer demand for motor vehicles, while metallurgy growth acceleration was explained by the rise in the world prices that stimulated production and exports. The deceleration in food processing growth may be explained by the rise in prices for raw materials, related to the food price hikes in the previous months and rise in transportation service costs. We expect industrial output in 4 months 2008 to increase at similar rate to Q1 2008.”

Sourced from Millennium capital

Russian governmental to discuss the future of auto industry

Interfax cited Mr Sergei Ivanov First Deputy Prime Minister of Russian as saying that a governmental commission will convene on April 25th 2008 to discuss the future of the Russian auto industry.

He said "The governmental commission on the development of industry, technologies and transport will examine the auto industry in a separate issue on April 25th 2008."

Mr Ivanov has invited auto makers to discuss the real state of affairs in the automobile branch and prospects for the future. He has asked them "Should we develop car production using our own base or continue shifting emphasis towards foreign brands? To what extent is Russia capable of retaining its positions in the world auto industry?"

Mr Ivanov acknowledged that it would be extremely difficult for Russian producers to fight Chinese and Malaysian competitors all by themselves. He said "That's why the government is ready to give comprehensive support to domestic producers of car assembly parts."

Mr Ivanov said "I think I won't discover America if I say that we are striving to create really effective auto components production and are steadily advancing a corresponding cluster policy."

WSR and Alliance Oil Company finalize asset merger

Interfax reported that the Stockholm listed West Siberian Resources and Russia's Alliance Oil Company an oil refiner based in Russia's Far East has completed a merger of assets. The parties said the market capitalization of the companies following the merger will be about USD 2.25 billion.

As a result of the merger, Alliance has officially become a subsidiary of WSR, while Alliance shareholders have received a controlling stock interest in WSR. A total of 1.784 billion Swedish Depository Receipts issued in favor of Alliance shareholders began trading on the OMX Nordic Exchange under the WSIB ticker.

WSR and Alliance signed a binding agreement on the merger on February 17th 2008. As part of the merger, Alliance has been valued at roughly USD 1.748 billion based on the 6.21 Swedish krone cost of one WSR share from the new issue.

Another 99.683 million warrants for WSR common shares will be issued in favor of Alliance shareholders with an exercise price of 6.21 Swedish krones. The timeframe for the exercise price is three years. An option is also offered to prevent the stake of Alliance shareholders in the merged company from being diluted.

Russia may build a nuclear power plant in Mongolia

Itar-Tass cited Mr Sergei Kiriyenko the general director of the Rosatom Corporation after talks with Mr Sanjaagiin Bayar PM of Mongolia as saying that Russia may build a low or medium capacity nuclear power plant in Mongolia.

Mr Kiriyenko said that according to the Mongolian prime minister, bearing in mind the uranium deposits available in that country, the question was being considered in full seriousness of building a nuclear power plant in cooperation with Russian specialists.
Mr Kiriyenko said that the Mongolian side has not made up its mind yet as to the type of a nuclear power plant it would like to have, but we shall be able to offer the entire range of options. He also said that “we are to sign a joint action plan for cooperation in the sphere of nuclear power with Mongolia’s trade minister.”

Mr Kiriyenko said this plan will provide for the exploration of uranium deposits in Mongolia, joint investments in their development and training of Mongolian personnel for the nuclear power industry. He said that “Our countries have a major potential to implement all proposals we discussed earlier today.”

Ukraine and Saudi Arabia to increase trade through JVs

Ukrainian Journal Staff cited Mr Oleksandr Turchynov First Deputy Prime Minister Ukraine and Mr Jubarah Suraisry Transport Minister Saudi Arabia while speaking during the opening of the third meeting of the Ukrainian-Saudi Arabian intergovernmental commission on trade economic and scientific-technical cooperation in Riyadh as saying that Ukraine and Saudi Arabia are planning to step up economic cooperation by creating joint ventures and increasing trade.