L&T bags INR 1,687 crore orders

BS reported that Larsen & Toubro has bagged four orders for water supply projects, sinter plant and cold roll mill and a coal handling plant worth INR 1,687 crore from the government of Rajasthan, Bhushan Steel, SAIL and Damodar Valley Corporation.

The report added that "The construction division of Larsen & Toubro has secured an EPC contract worth INR 635 crore from the government of Rajasthan for design, supply, build and commissioning of water supply project. It added that when completed, the project will provide safe drinking water to the people of Jaisalmer and Barmer including army bases.

L&T, in consortium with Outotec GmbH has bagged INR 555 crore sinter plant orders from Bhushan Steel. Apart from these two orders, L&T's ECC has bagged INR 272 crore orders from the Bokaro plant of SAIL for the construction of civil works for a new cold roll mill.

India raises rail freight for iron ore – Report

India has raised rail freight for iron ore, citing strong demand for wagons but analysts said the move would add to inflation pressures the government is trying to contain.

Mr VN Mathur member traffic of railway board said that "There has been a very large spurt in demand for the movement of iron ore for domestic consumption and export. The rate increase is about 5.6% to 5.8% of transportation cost of iron ore."

It may be noted that Indian Railways has increased the surcharge on iron ore transported to ports for export to 100% from 60% and cut the levy for domestic consumption to 30% from 60%.

India's annual inflation rate hit a 14 month high of 16.68% in mid March 2008, mainly due to a spike in world prices of food, fuel and metals.

Mr Mathur said that the rise in freight rates for iron ore would contribute only a tiny part of the cost of steel products. He added that "It is not going to have an impact on inflation."

Jharkhand tribals up against mining companies

Step into Jharkhand’s Tentoposi village in Seraikela district and you will be greeted with hostile glances. Sitting on rich mineral reserves of iron ore, residents of this village are constantly under the fear of displacement and loss of livelihood sources.

TATA Steel has already announced that it will set up a 12 million tonne integrated steel plant in the area at an investment of INR 42,000 crore and has signed MoU with the state government.

The villagers suspect that there are people lurking around the village to usurp their land. Hence, they are on alert. They have created a security cordon around the village. Volunteers, wielding bows and arrows, guard the barricaded village at all hours. No government official or a media person is allowed in. Similar security cordons are common in Hazaribagh’s Karanpura valley.

According to the state industries department, the valley has huge coal reserves Punkhri Barwadih coal block alone has deposits of 1,400 million tonnes of thermal grade coal. Industries, including the National Thermal Power Corporation have placed bids to mine the area. NTPC plans to set up a coal fuelled power plant here. The project also envisages opencast mining to extract 15 million tonnes of coal a year, which is likely to displace 14,000 people, belonging to the Santhal, Ho and Munda tribes.

There are several other companies eying the rich mineral deposits of this tribal dominated state. Since the state was carved out of Bihar in 2000, the state government has signed 44 MoUs with companies like Arcelor Mittal, TATA and Jindal for mega industrial ventures worth INR 198,362.26 crore.

Mr Xaviar Dias coordinator of Bindrai Institute of Research Study & Action said that these prospective investors will acquire over 45,000 hectares and eventually displace more than 1,000,000 people, mostly from the east and west Singhbhum and Seraikela Kharswan region.

Recent incidents at Singur and Kalinganagar have incensed the tribals more. They have vowed to sacrifice their lives to protect their land rather than vacate it for industrial development. All villages where the industrial giants have announced to set up projects are currently under the vigilance of more than 60 tribal organizations. Under the banner of Jharkhand Mines Area Coordination Committee, these groups have announced a battle against mining and displacement.

Mr Puneet Minz general secretary of Jharkhand Mines Area Coordination Committee said that "The minerals will be tainted with blood if any of these companies dare to acquire even an inch of tribal land. Police and the state machinery are after us. Once we disclose the names, they will be either picked up or tortured to quit the movement."

The state government said that the investments will help the state achieve its economic development goals. But the tribal groups have lost faith in the government, particularly after it signed the MoUs with the industrial giants without preparing a rehabilitation & resettlement policy. Jharkhand still follows the rehabilitation policy of the Bihar government. The tribal groups also blame the government for repeatedly ignoring people’s opinion while leasing out land for mining.

Mr Minz said that "In Jharkhand, the government is the lawbreaker. The Chhottanagpur Tenancy Act 1908 prohibits sell or transfer of land in scheduled areas to non tribals. Then why is the government signing MoUs with mining companies."

Jharkhand Mines Area Coordination Committee has chalked out a clear strategy to not let any mining company to set up projects in the state. It has already gone ahead alerting and educating people about how the companies cheat the displaced and has imposed a janta curfew in 30 villages where the industries have proposed to set up their projects. It is also pressing the state government to carry out a detailed survey of the displaced tribals and to frame the R&R policy with their consensus. It has urged the central government to include tribal people’s right to land in the central R&R policy.

Industrial biggies and their proposed projects in Jharkhand

Mr Minz said that "The existing mines of coal, iron ore, bauxite and other minerals are enough to bring fortune. The government just needs to treat minerals on the lines of the international oil cartel, OPEC and sell them directly in the international market. The central government should take an initiative in this direction. Or else, even if industrial giants like the Mittals pour in INR 40,000 crore to establish plants in Jharkhand, it will be a bad deal for the state."

Kudremukh to float tender for railway sliding project by May

BL reported that Kudremukh iron ore company is likely to float tender for the Baikampady Thokur railway sliding project in Mangalore in Dakhin Kannad district of Karnataka by May 2008.

As per report, Kudremukh iron ore is planning to set up railway sliding for bulk material handling in between Baikampady industrial area and Thokur village. The project envisages an estimated investment of INR 225 crore and will have 6 lines in length of 1.9 kilometer each and includes 2 wagon tipplers.

The proposed project will help Kudremukh in unloading, storing and transportation of hematite ore with capacity of 4 million tonnes per annum. It is also setting up a LAM coke plant of 500,000 tonnes per annum at Mangalore. EoIs invited during March 2004 was cancelled and fresh bid is likely to float by May 2008.

Updates on finished steel production

Core infrastructure industries’ growth accelerated to 8.7% in February 2008, reviving hopes that industrial production would speed up and arrest an economic slowdown.

Growth in coal, power and cement, 3 of the 6 industries that make up the core infrastructure sector, aided the healthy growth in February 2008 as compared to 7.6% a year ago.

Details on finished steel production

In million tonnes
Source: Ministry of Steel

Vedanta to invest USD 15 billion in Indian mining sector

ET reported that London based Vedanta Resources is planning to invest USD 15 billion in the mining sector in India and Africa by 2010.

Mr Anil Agrawal executive chairman of Vedanta Resources said that we are planning to become the largest producer of metals in the world. He added that "We are targeting at achieving the 1 million tonne per annum production capacity in copper and zinc while in aluminum, where we have already touched the magical 1 million figure, we are trying to scale it up to 3 million tonnes per annum."

Mr Agrawal said that it is also focusing on ramping up the silver production to 500 tonnes per annum to become the largest producer of silver in Asia. He added that "We are investing INR 500 crore for enhancing the silver production from 200 tonnes per annum to 500 tonnes per annum at our Udaipur based facility in Hindustan Zinc. We would not only restrict ourselves to upstream activities but also explore markets for local consumption."

Mr Agrawal said that "We want to acquire gold mines like Bharat Gold mine or Hatti Gold mine to expand our canvas. In fact, we are interested in public sector companies which are on block, even if it’s Nalco, Hindustan Copper Limited or IFCI. We have proved that we can transform sick PSUs into profit making companies."

OVL inks pact for 40% stake in San Cristobal oilfield

ET reported that ONGC Videsh Limited has signed an agreement on April 8th 2008 to take 40% stake in the San Cristobal oilfield in Venezuela. As per report OVL has signed the agreement with Petroleos de Venezuela SA, which will hold the remaining 60%, during the historic visit of Mr Murli Deora union petroleum minister to Venezuela.

Under the agreement, OVL and Petroleos will develop the field from its current production level of 20,000 barrels per day to 40,000 barrels per day. OVL will make a total investment of USD 355.738 million comprising signature bonus of USD 173.1 million for the stake. Besides, ONGC would also be required to sanction a loan of USD 355.74 million for the project that covers 160.16 square kilometers and is located in Junin in the Orinoco Heavy Oil belt of Venezuela.

The production from San Cristobal field started in October 1981. Till date 44 wells have been drilled, of which 24 are active. The field is producing about 24,000 barrels of oil per day. Ultimate recoverable reserves in the project area have been estimated by a joint team of ONGC and PDVSA at 232.38 million barrels that can yield up to 100,000 barrels of oil per day.

Capital expenditure as per the business plan mutually agreed by OVL and PDVSA would be USD 446.13 million.

Venezuela, the only OPEC member from Latin America, is 1 of the top 4 oil producing countries in the world. It has 87.04 billion barrels of proven oil reserves, largest in the western hemisphere.

Lanco to invest INR 18,000 crore for hydro power by 2015

It is reported that Lanco Group has outlined an investment of about INR 18,000 crore by 2015 to set up hydro power stations of 3,000 MW capacity or one fifth of the total capacity it seeks to achieve by then.

Lanco Group is already implementing 5 hydro projects of 742 MW capacity at various parts of India including the 500 MW Teesta VI Hydropower project in Sikkim.

Mr Shailendra Mohan energy manager of Lanco said that "Of the 15,000 MW which we plan to execute by 2015, about 3,000 MW is expected to be accounted by hydel power. We will invest about INR 18,000 crore on hydro power initiative."

Lanco Energy is a subsidiary of Lanco Infratech, engaged in power, infrastructure, construction and property development. At present, Lanco Infratech has the capacity to generate 518 MW electricity and is developing projects having 7,500 MW capacity. It has also identified projects of about 7,000 MW, as part of its vision to have installed capacity of 15,000 MW by 2015.

Lanco is implementing 2 hydel projects of 10 MW each and one 70 MW project at Himachal Pradesh, besides constructing 2 projects of 152 MW at Rambara and Phata Byung in Uttarakhand. Its first unit of hydro power would come later in 2008 from 1 of its project in Uttarakhand. Of the 518 MW capacity at present, 488 MW is accounted by gas fired projects, 13 MW by wind projects and 17 MW comes from biomass.

Mr Mohan said that financing for the Teesta VI hydropower project has been tied up with a consortium of 8 lenders lead by ICICI Bank. Other lenders include Canara Bank and Punjab National Bank. The project, expected to cost INR 3,000 crore, would be commissioned by 2012.

Teesta VI would sell the power to Maharashtra State Electricity Distribution Company through a 25 year Power Purchase Agreement. The statutory clearances required from the state and Central Agencies have been obtained and civil construction work has started. The bids for engineering, construction and procurement contracts would be invited by the group by mid of 2008.

GE Shipping arm buys new vessel

Great Eastern Shipping Co Ltd has informed the BSE that Greatship India Ltd a wholly owned subsidiary of the company has taken delivery of new built Anchor Handling Tug cum Supply Vessel.

The AHTSV Greatship Amrita which was contracted by GIL in August 2006 is a DP2, FiFi 1 vessel with maximum bollard pull of 96 tonnes.

With the delivery of Greatship Amrita, the company has a fleet of 3 PSVs and 2 AHTSVs in the water.

Thermal units set to get less coal supplies

BL reported that, in an unprecedented move, union ministry of coal has reduced monthly coal allocation to the power sector for the April to June 2008 quarter, raising the possibility of a severe power crisis during the ensuing summer.

As per report, Standing Linkage Committee in the ministry of coal has brought down the amount of coal to be given to the thermal power plants during the summer months even though coal based power generation is expected to go up by 12.2% during April to June 2008 quarter.

Alarmed over the situation, Central Electricity Authority has written to the coal ministry to increase allocation to power plants to avoid a crisis situation. Reminding the coal ministry of its earlier promise of providing additional coal to the power plants during the first quarter, the CEA, in a letter to the coal ministry, has said that “We were given the impression that there is a stock of around 46 million tonnes at the mines, which is more than the norms. Coal companies and the ministry of coal were in agreement to supply around 8 to 10 million tonnes additional coal during the quarter."

CEA has also pointed out that in case of Coal India Limited and Singareni Collieries, the quantum they have to supply to the power sector is lower than what they gave last year. On the other hand, allocations from captive mines have been increased substantially, which they may not be able to fulfill.

Taking a note of ground realities that the proposed amount had not been made available in the past year, CEA states that "The materialization in the past has been hovering around 90%. Therefore with the proposed linkage of 31.374 million tonne, actual receipt will be of the order of 28.24 million tonnes only."

CEA’s requirement for coal generation per month is estimated at 30.40 million tonnes and another 4 million tonnes for stock build up while another 0.54 million tonnes is estimated as standard transit loss. This totals to 34.94 million tonnes per month as against SLC’s proposed monthly linkage of 31.374 million tonnes. Stating that stocks at the power stations are already low at around 10 million tonnes against the normative condition of 22 million tonnes, CEA has urged the coal ministry to allocate 34.7 million tonnes per month by increasing the linkage by 3.33 million tonnes.

In million tonnes

Coal ministry officials, however, are of the opinion that in case of any shortage, the power companies can always import under the open general license.

BHEL to set up a JV for overseas acquisitions

ET reported that Bharat Heavy Electrical Limited is considering a JV for overseas acquisitions and is talking to ONGC, Reliance Industries, Reliance Energy and L&T to set up a special purpose vehicle for this venture.

Mr K Ravi Kumar CMD of BHEL said that "The venture is being considered to provide necessary muscle to the organization for placing aggressive bids in the overseas market. BHEL unsuccessfully tried to acquire 2 companies, 1 in Europe and another in the US, engaged in manufacture of solar power equipment."

Mr Kumar said that "It is very difficult to compete with global players while placing bids for any overseas acquisitions. There is a clear preference toward local companies in several such deals. A combined effort of three four strong companies could turn the table in our favor."

The new entity would focus on acquiring companies engaged in manufacture of power equipment both in conventional and renewable energy space. It will also look at tapping companies engaged in production of equipment for oil and gas sectors. Only small and medium sized companies may be considered initially for acquisition.

The acquisition would be geared toward getting new technologies and expertise, intellectual property rights, product extensions and market access. The proposed SPV would focus on developed markets in US and Europe to acquire technologies and Indian Performing Rights Society.

The proposal for the SPV is likely to be finalized when BHEL gets some commitment from one or two potential partners. It is understood that the SPV would be designed on the lines of similar SPV formed in partnership by five PSUs for acquiring coal assets abroad. The power equipment venture would also get its capital from all the partnering companies while debt will be raised from the market. A war chest of substantial size is expected to be created so that the entity can place aggressive bids for acquisitions.

While BHEL’s proposal would have to get government nod, sources said the power and heavy industries ministries are in favor of any initiative that helps a PSU grow. The prime minister’s office is understood to have favored the proposal to forge partnership with private partners.

Paradip Port 2007/08 income up by 4.7% YoY

Paradip Port has posted a high operating income of INR 670.47 crore during 2007/08 up by 4.7% YoY as against INR 640.37 crore in 2006/07. It reported a growth rate of 10.18% YoY by handling an all time record traffic of 42.44 million tonnes, surpassing the previous record of 38.52 million tonne handled during 2006.

Mr K Raghuramaiah chairman of Paradip Port said that "We have undertaken various expansion and modernization programs to make the port more competitive."

Mr Raghuramaiah, pointing to the huge demand for import of coking coal by the steel industries and export of iron ore by the mining companies, said that the port is proposing to construct one berth each for handling of iron ore and coal. The berths will draw investment of INR 504.77 crore and INR 387.83 crore. He added that, in order to enable the port to receive bigger vessels, the channel is being deepened to 17.1 meter. Dredging Corp of India has been entrusted for deepening of the entrance channel at a cost of INR 253.36 crore.

The port also handled all time highest number of 1636 vessels during 2007-08 as against 1452 vessels handled in 2006-07. This apart an all time record quantity of 30.80 million tonne of rail borne traffic was handled by the port railway during 2007-08 surpassing the previous record of 26.54 million tonne handled in 2006-07.

Similarly, a record quantity of 214,838 tonne of cargo was handled in a day on February 22nd 2008, surpassing the previous record of 212,912 tonne handled on June 19th 2006. It also handled a record quantity of 4.2 million tonnes of cargo, 25.59 million tonnes of export cargo and 16.85 million tonnes of import cargo.

Mr Raghuramaiah said that there had been a substantial improvement in the financial performance of the port during the year with an operating income of INR 670.47 during 2007-08 as against INR 640.37 in the previous year.

He said that it has also been proposed to construct a berth for handling of iron ore with back up facilities to meet the growing demand at the estimated cost of INR 504.77 crore. He added that, in view of setting up of several steel plants in Orissa, it has been proposed to construct a berth for handling coal with back up facilities at an investment of INR 387.83 crore.

Similarly, there is a proposal to develop a southern dock system having three berths with provision to handle containers and other products involving an outlay of about INR 530 crore. Connectivity and 4 laning of the road from Chandikhole to Paradip, involving an outlay of INR 442 crore, would be completed by June 2008.

Mormugao Port 2007/08 cargo handling up by 3% YoY

Mormugao Port Trust has handled a record cargo throughput of 35.13 million tonnes in 2007/08 up by 3% YoY as against 34.24 million tonnes in 2006/07.

Mr Praveen Agarwal chairman of Mormugao Port Trust expressed satisfaction at the performance of the port and pointed out that the major share of the traffic continued to be from iron ore exports of 27.33 million tonnes constituting 78% of the traffic. He said that "The introduction of a trade promotion scheme whereby ships are permitted to load by their own gears at the West of Breakwater has had the desired results."

Mr Agarwal said that despite some operational constraints, competition from nearby ports and to some extent the imposition of export levy on iron ore of over 62% grade from March 2007, the traffic had registered a fair growth. He exuded the confidence that the port was expected to do better and iron ore exports are likely to touch 29 million tonnes in the new fiscal, though the Goa government has proposed to impose cess on transportation of iron ore from this financial year.

He said despite a record throughput, its provisional income declined to INR 271 crore in 2007/08 as against INR 276 crore in 2006/07, with corresponding net surplus of INR 32 crore as against INR 40 crore. It was due to the offering of more concessions to the customers and spending more on expansion and modernization.

While non ore cargo showed a marginal increase, the port faced a decline in cruise vessel traffic owing to its inability to provide a captive terminal for such vessels. The cruise vessel traffic at the port declined to 38 vessels with a mere 12,997 passengers.

Envisaging a major cargo traffic increase, Mormugao Port Trust has drawn up ambitious plans to expand its infrastructure and augment its cargo handling facilities. The plans include projects such as deepening the navigational channel, augmentation of capacity of its mechanical ore handling plant, construction of additional berths, 3 additional mooring dolphins, construction of a jetty for relocation of port crafts and small boats, rig repair facility, strengthening of breakwater mole, etc, all estimated to cost nearly INR 200 crore.

SKS invites bids for 1,200 MW power project in Chhattisgarh

Ranchi Express reported that Chhattisgarh based SKS Power Generation has invited bids from reputed and established international suppliers, EPC contractors, OEMs for setting up a 1,200 MW coal based power project in Raigarh district.

The scope of work involves design, engineering, manufacture, supply, erection, testing and commissioning and performance guarantee tests as well as final acceptance tests of the proposed project.

Last date for submission of bids is June 18th 2008.

Mudajaya Group buys 2.7 million shares in RKM Powergen

The Edge Daily reported that Malaysia’s Mudajaya Group Bhd has subscribed for an additional 2.7 million shares in India’s RKM Powergen Private Limited for MYR 58.2 million cash. It had acquired 487,000 RKM shares in September 2007 for MYR 10.95 million.

In an announcement to Bursa Malaysia, Mudajaya said that its wholly owned subsidiary Mudajaya Corporation Bhd subscribed for the new block of shares on March 31st 2008.

RKM is a special purpose vehicle set up by RK Powergen Private Limited and MJC to undertake the 1,200 MW coal fired independent power plant project in the Chhattisgarh state in India.

Under the JV agreement signed between MJC and RK Power, MJC and RK Power should at all times hold 26% and 74% of RKM, respectively.

Panel set up for fiscal relief to shipping industry

BL reported that a high level group on services sector in the Planning Commission has favored the Indian shipping industry’s demands for fiscal relief. The committee recommended provision of fiscal relief to Indian shipping firms to restore the competitiveness of Indian shipping industry.

Admitting that the benefit of tonnage tax has been eroded by certain taxes which were introduced or the rates of which were increased after the introduction of tonnage tax. It has called for relief on the issues that include service tax on services availed by ship owners, minimum alternate tax on profits from second hand sale of vessels, corporate income tax on interest earnings, seafarers’ taxation on ECB and withholding tax on charter hire charges.

Indian entrepreneurs have been unwilling to add to their merchant fleet due to the unfavorable tax regime prevailing in the country compared with the other maritime nations. As a result, while the sea borne trade of India has increased rapidly, the share of Indian ships in carriage of Indian cargo has fallen from 31.5% in 1999-00 to 13.7% in 2005-06.

BEML to make high capacity dumpers with Terex

IANS reported that Bharat Earth Movers Limited will manufacture high capacity electric dumpers in 150 to 360 tonnes range for the mining sector in technical collaboration with the US based Terex Corporation.

Mr Subrat Kumar Das executive director of BEML said that "The opening up of the mining sector and entry of multinationals in the mining and construction industry has fuelled demand for heavy duty rear dump trucks in the range of 150, 240 and 360 tonnes and above. With Terex know how, we will manufacture high capacity dumpers for Coal India Limited and other private firms at truck and engine divisions."

BEML will also manufacture critical components for the heavy duty dumpers after technology transfer from Terex. As preferred supplier to heavy users of its equipment to CIL and other customers, the firm will leverage its expertise in manufacturing a whole range of high end mining and construction equipment for public and private sector firms.

Mr Das said that "The spurt in construction and mining activities across the country over the last decade has made even small and medium operators to make use of bigger dumpers with a host of features for higher productivity and operational efficiency."

In the last fiscal, the BEML received enquires for 22 high capacity machines from CIL for captive use. Once orders materialize, it plans to roll out rear back dumpers from the third quarter of 2008-09 fiscal.

Mr Das said that "As the main facility for manufacturing trucks, dumpers, loaders and excavators, we have been specializing in rolling out a range of vehicles for private as well as defense sectors. Tie ups with global majors such as Terex and Bucyrus International, also of the US, for mining shovels will enable to compete for a share of the growing pie in the sector."

Terex is the world’s third largest mining and construction equipment manufacturer after Caterpillar of the US and Komatsu of Japan. It makes a range of products for surface mining, quarrying, refining, shipping and transportation industries.

Six high tension towers collapse in Orissa

SNS reported that at least 6 power towers supplying high tension electricity line of 220 Kilo Volt from Duburi Grid to New Duburi in Kalinga Nagar in Jajpur district collapsed following a squall. Power supply to 3 steel plants in industrial complex area has been partly affected since last evening.

Mr Rabindra Kumar Sahoo sub divisional officer of Duburi Grid said that "These towers along with conductors were very old. This apart, some of them also bowed down earlier. We had already informed the authorities for the restoration of the bow down towers. But they collapsed following heavy rain with gale." He added that there is power disruption in the area for some time. We managed the power distribution to the affected area from the Kochei Grid in Mayurbhanj district.

Meanwhile, a team of construction wing of restoration and repairing unit of Bhubaneswar Grid is camping at Duburi to restore the line and work is on war footing.

ReGen Powertech opens wind turbine unit in AP

It is reported that ReGen Powertech Private Limited is planning to begin production from its newly commissioned wind turbine generator facility in Andhra Pradesh by April 2008.

As per report set up on 45 acres of land at Mambattu near Tada in Andhra Pradesh, the plant will produce 1.5 MW gearless wind turbines. The plant was inaugurated at the hands of Andhra Pradesh Chief Minister Dr YSR Reddy on March 21st 2008.

In phase I, the unit will annually produce 200 turbine generators, with a gradual ramp up to 500 units by 2010. In subsequent phases, other key components like towers, blades and converter systems will be manufactured. The total cost of phase I, estimated at INR 114 crore, will be financed through equity of INR 90 crore and debt of INR 24 crore. In the remaining phases, an additional INR 170 crore of investment is expected.

ReGen Powertech is lead promoted by the Andhra Pradesh based Nuziveedu Seeds Limited Group. Vensys Energy AG of Germany is the technical collaborator while Indiavision Partners is a strategic investor with 33% stake.

Satluj Jal Vidyut Mori project revised capacity to 56 MW

Satluj Jal Vidyut Nigam's Noitwar Mori Hydel based power in Uttarakashi district has revised the capacity to 56 MW from the earlier planned 33 MW.

The enhancement has made after the assessment of pre feasibility study prepared by Lahmeyer International India Private Limited. It was submitted to CEA on September 12th 2006.

Satluj Jal Vidyut Nigam invited tender for EPC contractor on March 15th 2008.

PNGR Board lays down gas retail rules

It is reported that Petroleum & Natural Gas Regulatory Board has laid down criteria for retailing compressed natural gas for vehicles and natural gas for households in cities.

The board said that city gas distribution projects in 250 odd cities will be awarded on the basis of network tariff, CNG compression charge, length of pipeline proposed to be laid and the number of households to be covered. At the time of the constitution of the Board, the oil ministry had transferred a number of applications of different entities pending with them for the development of CGD networks to the Board for necessary action.

Regulations specify the minimum eligibility criteria for an entity to participate in the bidding process. The statement has said that the open bidding is in respect to four parameters with different weightage:

1) Lowness of present value of unit network tariff over the economic life of the project at 40%

2) Lowness of present value of the compression charge for CNG over the economic life of the project at 10%

3) Highness of the present value of inch kilometer of steel pipelines proposed to be laid during the period of exclusivity in terms of exemption from the purview of the common carrier or contract carrier at 20%

4) Highness of present value of the number of domestic customers proposed to be connected by PNG during the period of exclusivity in terms of an exemption from the purview of common carrier or contract carrier at 30%

The regulations specify service conditions, quality of service standards, consequences of default and termination of authorization procedure. The regulations also specify the procedure to be followed while dealing with the entities which have been laying, building, operating or expanding CGD networks.

GMDC keen to mine Naini coal block in Orissa

It is reported that Gujarat Mineral Development Corporation has initiated talks with the Puducherry Industrial Promotion & Development Corporation to mine the entire Naini coal block in Orissa.

GMDC and PIPDC had jointly bagged the Naini block, which has 500 million tonne of coal deposits, for mining from the central coal ministry in 2007.

In order to achieve better synergies with PIPDC, GMDC is keen to mine the entire block. The ministry of coal had allocated half the block, with coal reserves of 250 million tonne to GMDC and the remaining to PIPDC.

Official sources said that "PIPDC does not have rich expertise in the mining sector. On the other hand, GMDC is one of the major mining and mineral companies having ample expertise in the field. Also, it has announced its plans to foray into power generation in a big way. GMDC's intention to mine the entire Naini block is aimed at having better synergies to get maximum benefits from the project."

Recently, GMDC officials held a meeting with PIPDC to express its intention to mine the entire coal block. GMDC is also learnt to have submitted an application to lease half of the coal block awarded to PIPDC.

Naini coal block is one of the 39 coal blocks approved by union coal ministry for allocation for various public and private sector power companies to meet the growing needs of the power sector.

Vale concludes pellet price negotiation with ArcelorMittal

Companhia Vale do Rio Doce , the world's largest iron ore and pellets producer has concluded the blast furnace and direct reduction pellets price negotiations for 2008 with ArcelorMittal.

As an outcome of these negotiations, the blast furnace and direct reduction 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 and the reference price per dry metric ton Fe unit for direct reduction pellets is USD 2.4222.

VALE reinforces its commitment with customers, investing a substantial amount of resources to add new capacity of high quality pellets to meet their increasing demand, aiming to enhance our long-term relationship.

Nippon Steel and BHP agree on tripling of coal price

Bloomberg reported that Japan’s Nippon Steel Corp has agreed to pay BHP Billiton Ltd and Mitsubishi Corp. three times more for coking coal this year.

Mr Hiroshi Nakashima a spokesman for the Tokyo based company said that Japan's largest mill will pay USD 300 a ton for the year started April 1st up from USD 98 a tonne in the year just ended.

Mr Nakashima said that the jump in contract prices for the steelmaking material will add about JPY 3 trillion (USD 29 billion) to costs for Japan's blast furnace mills. Nippon Steel and its biggest domestic rivals have said profit probably fell in the year ended March 31 because of soaring prices for iron ore and coking coal.

The agreement between Nippon Steel and the BHP Billiton Mitsubishi Alliance, the world's largest coking coal exporter, comes after POSCO, Asia's third biggest steelmaker, agreed to pay three times as much for its coking coal.

Mr Atsushi Yamaguchi a Tokyo based analyst at UBS AG said that an increase in coking coal to about USD 300 a tonne was inevitable. He added that Japanese steelmakers will have to raise average selling prices for products by more than JPY 20,000 a tonne to offset increasing materials prices.

Ms Emma Meade a BHP spokeswoman said that “We don't comment on price negotiations.”

Vale signs a MoU with JFE and Dongkuk

Companhia Vale do Rio Doce announced that it has signed a memorandum of understanding with Japan’s JFE Steel Corporation and South Korea Dongkuk Steel Mill to conduct a feasibility study to analyze the construction of a steel slab plant in the Industrial District of Pecém in the Brazilian State of Ceará.

The original project announced by VALE and Dongkuk on November 20th 2007 contemplated an initial production capacity of 2.5 million tonnes per year with the possibility to be expanded to 5 million tonnes per year.

This MOU opens the possibility for JFE Steel Corporation to participate in an enlarged project. The feasibility study is expected to be completed in the coming months and the project will now encompass the construction of a steel slab plant with an initial annual production capacity of 5 to 6 million tons per year.

The release added that in case JFE considers the project feasible, it will be implemented together with VALE and Dongkuk, being JFE the majority shareholder. Otherwise, the project will continue to be conducted by VALE and Dongkuk as previously announced.

This initiative is consistent with VALE’s strategy of attracting new investments to the steel industry in Brazil through minority stakes, thereby increasing iron ore consumption in the country

Novamerican announces Q1 2008 results

Novamerican Steel Inc announced its financial results for the first fiscal quarter ended February 23rd 2008.

2008 First Fiscal Quarter Highlights:

1. Net sales increased USD 8.4 million or 4.5%to USD 195.6 million, as compared to USD 187.2 million in the first fiscal quarter of 2007.

2. Total tonnes increased by 6.2% to 372,200 tonnes as compared to 350,600 tonnes in the first fiscal quarter of 2007.

3. Direct sales tonnes decreased slightly to 202,600 or 54.4% of total tonnes as compared to 203,400 tonnes or 58% of total tonnes in the first fiscal quarter of 2007.

3. Gross margin decreased by 20.5% to USD 27.7 million or 14.2% of net sales, as compared to USD 34.9 million or 18.6% of net sales, in the first fiscal quarter of 2007. Cost of sales in the first fiscal quarter of 2008 included the remaining USD 6.7 million of purchase price that was allocated to certain inventories. The impact of exchange rates was an increase of USD 2.2 million.

4. Operating expenses increased by USD 2.9 million or 10.2% to USD 31.6 million, as compared to USD 28.7 million in the first fiscal quarter of 2007. Operating expenses included USD 2.7 million from higher depreciation and amortization associated with the purchase price allocation for fixed assets and other intangible assets. The impact of exchange rates on operating expenses was an increase of USD 2.6 million. Excluding the impact of exchange rates and higher depreciation and amortization, operating expenses would have decreased USD 2.4 million to USD 26.3 million.

5. Adjusted EBITDA decreased by USD 2.6 million or 23.2% to USD 8.6 million as compared to USD 11.2 million in the first fiscal quarter of 2007.

6. Long term debt at February 23rd 2008 was USD 373.1 million and cash and cash equivalents were USD 18.6 million.

Mr Corrado De Gasperis CEO of of Novamerican said that "Our first fiscal quarter of 2008 started off with a very slow first two months, particularly from weaker Canadian manufacturing and automotive markets. February represented the strongest month in the quarter, with higher shipping rates for processing and structural tube and higher average selling prices."

Major shareholders of Padaeng sell stake

Padaeng Industry Public Company limited announced that it has received information that its two major shareholders, i.e. Umicore and Nyrstar, on April 4 sold their entire shareholding of 22% and 24.9% respectively in Padaeng Industry Pcl through Asia Plus Securities Pcl into the market.

As a consequence of this transaction, the directors representing the two previous major shareholders, and the Managing Director tendered their resignation on the same day of the sale.

Mr Paul Fowler CEO of Nyrstar said that ''Our decision to sell releases additional capital that can be better deployed elsewhere. Our minority interest in Padaeng meant we had limited influence over the company and due to Thai regulations, would not have been able to secure control.''

POSCO shares decline after benchmark coking coal prices triple

Bloomberg reported that Asia's biggest steelmaker by market value POSCO fell the most in almost three weeks in Seoul trading after the company agreed to a tripling in benchmark contract prices for coal this year.

POSCO declined KRW 16,500 or 3.2% to KRW 498,500 dropping by the most since March 20. The shares underperformed a 1.1% fall in the benchmark Kospi stock index.

The Korean steelmaker will pay Australian suppliers between 205% and 215% more for some of its coking coal for the year started April 1. Ms Ko Min Jin a spokeswoman for the Pohang said that prices will rise to a record for the steelmaking material after floods in Australia reduced global supplies.

Mr Kim Gyung Jung an analyst with Samsung Securities Co said that “The higher coal prices are weighing on the stock today. Investors seem to be concerned about whether POSCO will be able to raise steel prices by as much as it needs to do to recover rising costs.''

AK Steel receives three awards for safety and community impact

AK Steel's Zanesville Works has been honored with two awards for its safety performance by the Ohio Bureau of Workers' Compensation, division of Safety and Hygiene. In addition, AK Steel has been recognized for its positive impact in the local community with an award from the Muskingum Growth Partnership. The awards were presented at the annual meeting of the Zanesville Muskingum County Chamber of Commerce.

The safety awards, presented in conjunction with the Zanesville Muskingum County Safety Council, are: The 100% Award for operating the entire year of 2007 without a lost-time injury and a Special Award for working 2,297,819 hours without a lost time injury, from April 21st 2003 through December 31st 2007. AK Steel also received the Award for Community and Economic Success, honoring the company's positive community impact through its investment in the Zanesville plant.

In recent years, AK Steel invested approximately USD 30 million in the Zanesville Works to upgrade and modify production equipment. The expenditures were part of the company's expansion of production capabilities for high value added, grain oriented electrical steels. In late 2007, AK Steel announced it would make additional capital investments in the Zanesville plant and at its Butler Works totaling USD 180 million to further expand electrical steel production capacity. This latest project marks the fourth expansion of AK Steel's electrical steel capacity since 2004. The capital investments are aimed at helping AK Steel meet growing worldwide demand for its high quality steels used in electrical generation and distribution applications.

Mr James L Wainscott chairman, president and CEO of AK Steel said that "We congratulate our Zanesville employees for their exceptional safety achievements, especially for working well over four years without a single lost time injury. We also greatly appreciate being recognized for the company's positive impact in the community."

US weekly crude steel production down by 0.6%YoY

American Iron & Steel Industries reported that in the week ending April 5th 2008, US’s raw steel production was 2.099 million net tons while the capability utilization rate was 88%. Production was 2.113 million net tons in the week ending April 5th 2007, while the capability utilization then was 88.3%. The current week production represents 0.6% increase from the same period in 2007.

Production for the week ending April 5th 2008 is down by 2% from the previous week ending March 29th 2008 when production was 2.144 million net tons and the rate of capability utilization was 89.9%.

Adjusted YTD production through April 5th 2008 was 28.950 million net tons at a capability utilization rate of 88.5%. That is a 4.5% increase from the 27.701 million net tons during the same period last year, when the capability utilization rate was 84.3%.

District wise production for the week ending March 15th 2008
1. Northeast Coast: 177
2. Pittsburgh/Youngstown: 218
3. Lake Erie: 89
4. Detroit: 83
5. Indiana/Chicago: 525
6. Midwest: 267
7. Southern: 647
8. Western: 93
(In thousands of net tons)

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

Nippon Steel and Kobe Steel hike casting pig iron by JPY 20,000 per tonne

JMB reported that Japanese integrated steel makers are getting JPY 20,000 per tonne or more hike for pig iron for castings at ongoing negotiation for April shipment.

As per report Nippon Steel said around JPY 20,000 hike and Kobe Steel said more than JPY 20,000 yen hike before. They try to pass higher cost price through the hike for the first time in 3 years.

Samuel Manu Tech sub allies with Viking & Worthington Steel

The Canadian Press reported that a majority owned steel pickling subsidiary of Samuel Manu Tech Inc has formed a strategic alliance with Viking & Worthington Steel Enterprises LLC in Ohio.

As per report Samuel Pickling has agreed to process Viking & Worthington Steel's product, while Viking & Worthington Steel will in return take a minority stake in the company. Financial terms were not disclosed.

V&W will shut down its steel pickling operation near Valley City, to have their northeast Ohio pickling requirements processed at Samuel Pickling. The deal, expected to be accretive to earnings in its first full year, is expected to close in June.

Steel pickling is the process of chemically removing scale or rust from newly formed metal.

Samuel Manu Tech is a value added processor and distributor of metal, plastic and related industrial products and services. With facilities located throughout Canada, the United States and Mexico, the Company operates primarily within the North American market.

Brazilian court revokes Cosipar operating license

Pará state government said that a Brazilian court has revoked locally owned pig iron producer Cosipar's operating license. Cosipar was operating with an extension to its license that was due to last until October 2009.

According to the Pará government, Cosipar has been accused by the Pará state environment ministry of irregularly discharging liquids into the Tocantins and Itacaiúnas rivers, not complying with commitments to reforest areas and using charcoal of questionable origins.

Cosipar reported that it plans to appeal the decision and that its legal department is reviewing the ruling. The company stressed that over the past three years it has stepped up its reforestation program and planted more than 10,000ha in Pará and Tocantins states.

The pig iron producer also said that it has taken on a policy of using alternative types of coal in its processes, such as coal fines, metallurgical coke or charcoal from its own eucalyptus forests. The company has instated an auditing area in charge of ensuring its charcoal comes from legal, sustainable sources.

Cosipar operates a 450,000 tonne per year pig iron unit in Pará state's Marabá city.

Scrap prices to boost substitution -IISI

Reuters reported that high levels of steel scrap prices will push consumers to shift to using other materials such as pig or liquid iron.

The report quoted Mr Tony Trickett GM of raw materials at International Iron and Steel Institute during a conference in Istanbul as saying that "High scrap prices will encourage the use of substitutes, such as DRI and pig or liquid iron.” He added that “It is already happening in places such as China and India.”

Mr Trickett said that steel producers either use scrap or different forms of iron ore for production. DRI contains more iron than pig iron and could be used by electric furnaces of mini steel mills.

Rebar prices, a semi finished form of long steel used in construction industry, has risen significantly over the last couple of months on the back of rising scrap prices.

Mr Trickett said that "Rate of old scrap formation is lower than the crude steel production adding that the tightness in the scrap market will continue, helping prices to remain high.”

ArcelorMittal wants 70% iron ore sufficiency by 2012

Reuters reported that the world's top steelmaker ArcelorMittal wants to supply up to 70% of its own iron ore needs by 2012 to mitigate against rising raw material prices.

Mr Malay Mukherjee a member of ArcelorMittal's six person group management board in an interview at a mining conference in Singapore said that “Our plan is to be 65 to 70% self sufficient in iron ore by 2012. We're now at 45%.”

Mr Mukherjee said that the company also intends to boost its steel production by 18% or 20 million tonnes to 130 million tonnes per year in the same period.

German March crude steel output up by 0.2% YoY

According to Germany’s Federal Statistical Office, German crude steel production in March 2008 was 4.18 million tonnes up by 0.2% YoY, while pig iron output rose 2.4% YoY to 2.61 million tonnes. On a month on month basis, crude steel production was up by 11.1% while pig iron production increased by 12.1%.

The statistics said that adjusted for seasonal and calendar effects, crude steel production added 2.3% in March from February 2008.

Scrap iron stockpiled in Bangladesh as iron rod prices up

The Daily Star reported that around 400,000 tonnes of scrap iron and scrap vessels remain stockpiled in ship breaking yards in Chittagong as prices of rod are going up.

Industry insiders said that some leading re rolling mills has lowered their production in a bid to create a shortage of iron rod to hike prices. And some re rolling mills have suspended production on the grounds of raw material crisis despite the fact that the mills have tonnes of scrap iron at ship breaking yards.

Market sources said that the price of 40 grade rod made from scrap iron is rising almost everyday while the price of 60 grade rod made from imported billets remains almost steady at a higher level. Price of 60 grade rod ranged from BDT 69,500 to BDT 70,500 per tonne while the price of 40 grade rod hovered around BDT 65,500 per tonne.

Best quality 60 grade rod measuring 8mm of Bangladesh Steel Re rolling Mills were selling at BDT 70,500 per tonne. The price of 60 grade rods of other manufacturers such as Bayezid Steel Mills and Shima Re rolling Mills was hovering around BDT 69,500 per tonne. But the re rolling mills have attributed the high prices of iron rod to the price hike of billets and scrap irons in the international market.

North America long product prices continue to raise

North America long product market price has recently continued to increase, with the blame put on higher scrap prices.

As per report scrap price has risen by USD 155 peer long ton. As well, wire rod product price has also increased by USD 75 per long ton following rising scrap prices.

Besides, market analysts have predicted that if the scrap market price keeps rising, the wire rod product market price might rise by another USD 75 per short ton in May.

(Sourced from YIEH.com)

Anglo American announces appointment of senior executive

Anglo American plc announces three senior executive appointments.

1. Mr Ian Cockerill is appointed as CEO of Anglo Coal and a member of the executive committee of Anglo American plc.

2. Mr Kuseni Dlamini is appointed as head of Anglo American South Africa and a member of the executive committee of Anglo American plc.

3. Mr Russell King is appointed as chief strategy officer of Anglo American plc with immediate effect. He will lead the strategy and business development team, working closely with the executive management to define and execute the group's strategy and to lead performance monitoring processes.

Ms Cynthia Carroll CEO of Anglo American plc, said that “I am delighted to welcome Mr Ian and Mr Kuseni to Anglo American and Russell to his new role within the group. Their depth of experience further strengthens our strategic management capabilities as we build upon the current momentum and realize our exciting growth prospects as a leading global mining company.”

Hyundai Steel purchases H1 scrap from Australia

South Korean Hyundai Steel purchased H1 scrap from Australia’s Smorgon Steel. The transaction price is around USD 617 per ton CNF for delivery in May.

Regarding comparisons, Malaysian imported H1 scrap purchase price has reached CNF USD 645 per tonne CNF and Taiwan has purchased H1, H2 mixed scrap (80:20) with purchase price around USD 600 per ton CNF.

(Sourced from YIEH.com)

Territory Resources to spend AUD 25million on expansion of Frances Creek

Territory Resources announced that it has committed to spend AUD 25 million over the next two years with the aim of substantially expanding its high grade resource base and extend mine life at the Frances Creek iron ore project.

Mr Michael Kiernan chairman of Territory Resources said that the Company was focused on delivering a steady increase in production at Frances Creek, backed by substantial exploration of largely under explored areas. He said that "The immediate focus of exploration is the expansion of near mine reserves and resources including the areas adjacent to the known deposits.”

Mr Kiernan said that "A budget of AUD 12 million including in excess of 100,000m of RC drilling, has been approved for the 2008 calendar year, with three drilling rigs engaged to undertake the works. He said that "The sustainability of exploration drilling during the wet season will be boosted by the introduction of a track mounted RC drilling rig later in the year."

Mr Kiernan said Frances Creek has significant areas that have been largely unexplored by modern techniques, including 12 to 14 kilomater of strike which would be targeted through the current program. He added that "The style of mineralisation in the region tends to be under modest cover and therefore has remained generally unexplored and undiscovered."

Frances Creek currently has 5 million tonnes of reserves @ 61.3% Fe, with indicated and inferred resources of 10.1 million tonnes @ 60.47% Fe.

Voestalpine wants turnover over EUR 15 billion by 2015

Reuters reported that Austrian steelmaker Voestalpine AG wants to increase turnover to more than EUR 15 billion (USD 23.59 billion) by 2015.

Mr Wolfgang Eder CEO of Voestalpine told a news conference that "Turnover will increase to over EUR 15 billion. That should be absolutely possible.”

Mr Eder also said that he expected the margin in earnings before interest and tax for the automotive division to reach at least 6% in the financial year 2007/2008, while 7% would be realistic for 2008/2009 and 8% for 2010.

Arch Coal sees global coal supply deficit

Reuters reported that global coal supply will fall short by up to 35 million tonnes in 2008 and the deficit is set to grow going forward, ensuring that prices remain strong.

Mr Steve Leer CEO of coal miner Arch Coal Inc at an energy conference told analysts that "We estimate that global supply of coal will be short between 25 and 35 million tonnes this year. The estimate differs from one given in March, in which Arch Coal estimated the world would be between 30 and 40 million tons short of coal this year.

He told analysts that "We will end up using more and more coal going forward.”he added that very strong international markets were leading a strong domestic market.

JFE Holdings and IHI to launch final shipbuilding merger talks – Report

The Nikkei without citing sources reported that Japan’s JFE Holdings Inc and heavy machinery manufacturer IHI Corp have agreed to enter final negotiations to consolidate their shipbuilding operations, with an eye towards launching the merged entity next year.

The business daily said that an official announcement is likely as soon as Tuesday.

IHI approached its counterpart at the end of last year about combining wholly owned unit IHI Marine United Inc and Universal Shipbuilding Corp then a 50:50 JV of JFE and Hitachi Zosen Corp.

The report said that JFE turned Hitachi Zosen Corp. into a subsidiary at the end of last month by raising its stake in the company to 85%.

In the final round of talks, JFE and IHI will decide on the merged company's name, the investment stakes and other details.

The merger of Universal Shipbuilding and IHI Marine would create a company with sales of JPY 345 billion (USD 3.37 billion) and a shipbuilding capacity of some 3 million tonnes, surpassing current leader Imabari Shipbuilding Co in both categories.

POSCO E&C wins USD 1.31 billion deals to build power plants in Chile

Thomson Financial reported that POSCO Engineering & Construction Co, an unlisted unit of POSCO has secured orders worth USD 1.31 billion to build power plants in Chile.

POSCO E&C won the orders from AES Gener, a Chilean unit of the US power company AES Corp, to build coal power plants in Ventanas and Antofagasta.

Under the contract POSCO E&C plans to undertake engineering, procurement and construction works for the facilities, which are due for completion by 2011.

Kenee Mineral to construct titanium cinder plant

VNA reported that the Vietnam Kenee Mineral Co broke ground in the construction of a titanium cinder plant with a total investment capital of VND 65 billion (USD 4 million).

As per report the plant will be located in Dong Bac Song Cau in the central province of Phu Yen and it hopes to be operational by year end.

The factory plans to produce 5,500 tonnes of titanium cinder and 2,700 tonnes of pig iron in the first phase. It will expand this to 20,000 tonnes of titanium cinder and 10,000 tonnes of pig iron in the second phase.

Korea steel output predicted to rise 4.5 % in 2008

Koreatimes reported that the output of South Korea's steel industry is expected to climb 4.5% in 2008 as manufacturers build more furnaces to produce high margin products.

The Korea Iron & Steel Association predicted the nation's steel production will reach a record 59.82 million tonnes in 2008, up from 57.23 million tonnes in 2007.

An official said that "The rise in steel output will help ease concerns over supply.”

South Korea is home to POSCO Co, the world's fifth largest steel maker. Other South Korean steel makers are Hyundai Steel Co, Korea Iron & Steel Co and Dongkuk Steel Mill Co.

Atlas acquires strategic interest in Warwick Resources

Atlas Iron Limited announced that it has acquired a strategic interest in Warwick Resources Limited. Atlas has agreed to acquire shares in Warwick at 23 cents per share via a combination of a share placement and off market purchases for a consideration of approx AUD 4.3 million providing a total interest in Warwick of 19.9%.

Atlas sees this acquisition as a strategic investment in Warwick, a Pilbara iron ore explorer and it intends to maintain its strategic shareholding at this 19.9% level for the foreseeable future.

Mr David Flanagan MD of Atlas said that "Warwick has an exciting land position, a terrific management team and significant potential to prove up considerable resources on their Pilbara tenements. We look forward to watching Warwick grow its resources and advance towards production in the years ahead.”

He added that "This strategic investment in Warwick provides Atlas shareholders great leverage to a land position in the Pilbara that is highly prospective for iron ore and Atlas intends to maintain its strategic shareholding at the 19.9% level for the foreseeable future.”

Warwick Resources is an emerging iron ore explorer with a diverse asset portfolio near Newman in the Pilbara region of Western Australia which is host to world class iron ore mines.

Kagara eyes nickel mine sale to fund zinc mine

Reuters reported that Australian miner Kagara Ltd hopes to solely fund development of one of Australia's largest known zinc deposits by selling an outback nickel prospect for up to AUD 1.5 billion.

Kagara has long been expected to seek out a partner to develop an underground mine costing more than its entire AUD 950 million market capitalisation at Admiral Bay in northwestern Australia, yielding 300,000 tonnes of zinc a year.

Mr Kim Robinson Chairman of Kagara told reporters at an industry conference that he would prefer to keep control of Admiral and while he sees potential for zinc prices to rebound, he is not optimistic on the future of nickel and would sell Kagara's Australian Lounge Lizard mine to fund Admiral Bay.

Mr Robinson said that "Given its size, Admiral Bay has the potential to be a real company make. We want to get rid of Lounge Lizard and develop Admiral Bay."

Nickel prices MNI3 have dropped around 40% in the last 12 months, while zinc prices MZN3 are down about 30%. But Mr Robinson sees zinc regaining ground once oversupplies are worked off, but he predicts little upside for nickel due to a rising number of low cost producers threatening to flood markets with cheaper mined nickel.

Daewoo shipyard workers vote to strike against 50.4% stake sale

Yonhap reported that workers at Daewoo Shipbuilding & Marine Engineering Co have voted to strike against a planned stake sale this year.

Union said that about 93% of 6,503 workers voted in favor of a strike, adding that the timing and extent of the strike will depend on the progress of the sale.

The creditors, led by state run Korea Development Bank, announced earlier this month that they plan to select a preferred bidder as early as August to sell their combined 50.4% stake in the shipyard.

The 50.4% stake in Daewoo Shipbuilding was valued at about USD 4.2 billion at current market prices, but some analysts say the price could go beyond USD 5 billion, given the company's bright outlook.

Palabora may build pipe to export iron ore

Reuters reported that South Africa's Palabora Mining Company hopes to start building a pipeline in 2009 to pump magnetite to a port in Mozambique, to export its stockpiles of the low grade iron ore to booming China.

As per report the firm is doing a feasibility study on a 300 kilometre pipeline from its mine in Phalaborwa to the Port of Maputo that would enable it to export its 240 million tonnes of magnetite a byproduct of its copper mining in greater volume.

Mr Charles Asubonten CFO of Palabora Mining on the sidelines of a mining conference in Singapore said that "No pun intended it's a gold mine we didn't have to dig for.”

He said that the magnetite slush is made up of between 56% and 60% of iron ore, needed for making steel that is seeing strong demand from China. Iron ore term prices have risen fivefold since 2001.

Palabora is one of the South Africa's largest copper miner with a market cap of USD 749 million, is now 58% owned by the world's second largest miner Rio Tinto and 17% owned by the fourth biggest mining group Anglo American Plc.

US Commerce finds unfair dumping of rectangular pipe and tube from Turkey

The US Department of Commerce announced its affirmative final determination in the antidumping duty investigation on imports of light walled rectangular pipe and tube from Turkey.

Department of Commerce determined that two mandatory respondents Guven Boru Profil Sanayii ve Ticaret Ltd Sikreti and Onur Boru Profil Uretim San ve Ticaret AS sold rectangular pipe in the United States at 41.71% less than fair value. All other Turkish exporters received a 27.04% rate.

The merchandise covered by this investigation is certain welded carbon quality light walled steel pipe and tube, of rectangular (including square) cross section, having a wall thickness of less than 4mm. Carbon quality steel includes both carbon steel and alloy steel which contains only small amounts of alloying elements. Rectangular pipe can be used for fencing, window guards, and railing for the construction industry. It is not used for the conveyance of liquid or gas.

Mr David Spooner Assistant Secretary for Import Administration said that "American manufactured goods are the highest quality in the global market; however, US competitiveness is compromised by unfair price discrimination. This Administration is committed to ensuring that our manufacturers benefit from strong and fair relationships with our trading partners by aggressively enforcing America's trade remedy laws.”

The petitioners for this investigation are Allied Tube & Conduit Corp; Atlas Tube; Bull Moose Tube Company; California Steel and Tube; EXLTUBE; Hannibal Industries; Leavitt Tube Company LLC; Maruichi American Corp; Searing Industries; Southland Tube; Vest, Inc; Welded Tube and Western Tube and Conduit.

SABIC hikes steel prices by up to 30%

Al Madina reported that Saudi Basic Industries Corporation has raised its prices by up to 29.6% amid a surge in demand and supply bottlenecks.

SABIC's steel subsidiary Hadeed has a production capacity of about 5.5 million tonnes. It raised prices by 26.9% to 29.6% to between SAR 3,850 and SAR 4,255 per tonne depending on measurements.

Saudi steel producers have a combined annual capacity of 8.43 million tonnes. Other steel producers in the kingdom include Rajhi Steel and Al Tuwairqi Group.

Japanese HGI export price to Middle East increases

Japanese steel mills and Middle East buyers have concluded their negotiation on HDG export price at USD 1,100 per tonne FOB with delivery in June.

The price was increased by USD 50 per tonne as compared with the contract price of HDG in April and May. It is said that the CFR price of HDG has already reached as high as USD 1,200 per tonne or even higher.

However, the exports of HDG from Europe to Middle East were not much, though the demands in local Europe and the Commonwealth of Independent States were strong. Therefore, Middle East buyers are looking for Asian suppliers of HDG.

(Sourced from YIEH.com)

Port development essential for Middle East – Report

Companies such as Saudi Ports Authority and DP World highlighted the need for port developments at last month's Saudi International Ports & Maritime Transport Forum.

According to speakers at Saudi International Ports & Maritime Transport Forum, the Middle East must develop its shipping infrastructure to capitalize on the international maritime boom.

The event, which was hosted by Jeddah Chamber of Commerce & Industries, attracted more than 500 shipping experts from companies such as the National Shipping Company of Saudi Arabia, United Arab Shipping Agencies Company, DP World and Saudi Ports Authority.

Dr Khaled bin Ahmed Bubshait president of Saudi Ports Authority said that "The development of seaports in the Middle East is essential to future growth. Saudi Arabia has envisaged an investment of USD 8 billion on modernizing and equipping its ports. This will be done with the participation of the private sector."

Mr Bubshait said "Jeddah Islamic Port has experienced a record period of growth in 2007, with around 4 million containers being handled. This is a sizeable increase over 2006 and we want to reach 6 million containers in the near future. Studies are currently underway for an expansion, which will increase the capacity to handle larger ships and containers. This includes the ongoing construction of the third container station in the north west of the port, which will cost approximately half a billion dollars, with a capacity to handle up to 1.5 million containers."

The decision to modernize Jeddah Islamic Port has received a positive response from the shipping fraternity, with a number of companies at the Saudi International Ports & Maritime Transport Forum considering an increase in operations at the facility once the expansion is completed.

Mr Jacob Hansen GM of Maersk Line in Saudi Arabia said that "Jeddah Islamic Port is the Kingdom's largest port and should be developed to handle a far greater volume of containers, especially with its excellent geographic location. In particular, the port will need better facilities to receive the world's largest container vessel Emma Maersk."

Mr Mohammed Al Muallem MD of DP World said that the shipping industry is entering such an unprecedented period of growth that global demand for containers will reach 500 million TEUs before 2009. He added that "We need to expand significantly to meet that demand. Through meticulous planning and a strategic focus, we will continue to provide a competitive platform for our customers at ports around the world, allowing them to maintain their edge and capitalize on the shipping industry's growth opportunities."

Mr Al Muallem noted that DP World is constantly evolving and moving towards its mission to develop world class shipping facilities and ports. He added that "We achieved this ranking by expanding our operations across the Indian subcontinent, Far East, Europe, Americas, Australia and, of course, the UAE. DP World benchmarks its efficiency to the highest international standards, which is essential because we regard ourselves as something more than a terminal operator. Instead, we are an important link in the supply chain."

Dubai power shortage continues to deepen – Report

Dubai's decision to open its power industry to foreign investors is a sign of the Emirate's growing panic that the USD 300 billion construction boom is outpacing supplies of water and electricity.

Dubai's power consumption will quadruple to 21,000 MW, equivalent to half of Florida's, over the next 12 years if growth does not slow sharply. Burj Dubai, the world's tallest skyscraper will gobble up 150 MW of power, equivalent to about 10% of the power produced by a new-generation nuclear reactor.

A report by Zawya Dow Jones points out that poor energy planning means that in a region that controls 60% of the world's oil and 40% of known natural gas stocks Dubai finds itself begging its neighbors for energy.

Dubai has known for many years that its finite oil and gas resources weren't sufficient to meet the surge in demand for electricity but has done little to address the issue. Now, in the absence of an expected Iranian gas pipeline and other issues, Dubai Electricity & Water Authority is running out of cheap gas to fire its gigantic power and sea water desalination plants.

Other Gulf producers have largely allocated reserves for their own consumption or other customers. Dubai depends on supplies of more expensive and dirtier diesel oil from neighboring Abu Dhabi to keep the lights turned on.

Given the dependence of the US on Middle East oil and gas to fuel its economy, it's ironic that another one of Dubai's projects envisages private developers importing hydrogen produced from coal in the US to fire a new power and water plant, slated to start operations in 2011.

Property developers now worry that multi billion dollar real estate projects will not be allocated power and water by DEWA and are looking at alternative suppliers. DEWA denies there will be a shortfall but doubts remain.

Inviting private investors to help build and run new plants is at least a step in the right direction. Abu Dhabi, Bahrain, Qatar and Oman are reaping the benefits of private power and water projects. Saudi Arabia, the largest Arab economy and most regulated, is going down the same route. Even so, it may well be that it's not political tensions in the Gulf, the threat of terrorism or a real estate crash that threaten Dubai's economic ambitions, but rather the simple failure to provide enough affordable power and water.

Saudi cement firms plan IPO frenzy

Saudi news agency Al Eqtisadiah reported that five new Saudi cement companies intend to sell 50% of their capital in initial public offerings.

The firms are Thamrat Najran in the Najran region in the far south, Medina Cement based in Riyadh, Abra Al Mamlaka in the northern region, Jouf Cement in Jouf and Al Khayat Trading & Engineering based in Mecca.

As per repot, the companies were licensed on condition they establish public shareholding firms covering their cement production activities.

The report gave no details on when the IPOs would take place or their size.

Dana Gas builds strong foundations for growth

Dana Gas PJSC has reviewed the key milestones and business growth achieved in 2007 and summarized the outlook for 2008, at its 2nd Annual General Meeting held in Sharjah.

The year 2007 saw Dana Gas achieve its first revenues and operating income, as well as make important new entries into all areas of the natural gas business in Egypt and Northern Iraq, while building upon its positions and assets in the UAE. The year also witnessed a rise in world oil prices, and a growing interest shown by international investors in the energy sector of the Middle East Region.

Mr Hamid Jafar executive chairman of Dana Gas said that "With oil prices now over USD 100 per barrel and increasing interest in the energy sector worldwide and especially our region, Dana Gas is the only publicly listed gas resource company in the Gulf and has already established strong positions in the UAE, Egypt and Iraq, in all areas of the natural gas business from exploration and production, to processing and pipeline transmission, and through to gas marketing and downstream projects."

Some of the highlights of Dana Gas' achievements over the past year which were reported at the meeting included

1) Its highly successful USD 1 billion Convertible Sukuk issue

2) The signing of a major agreement for development of the Sharjah Western Offshore Concession

3) Rapid progress in developing two of Iraq's major gas fields in the Northern Kurdistan Region for supplying local power needs

4) Historic commercial oil discoveries in Southern Egypt as well as natural gas and condensate discoveries in the Nile Delta, exceeding the company's 2007 production goals

5) Finalizing readiness for the transportation and processing of imported natural gas in the UAE

6) The formation of a JV with Emarat of the UAE to own, manage and operate the Middle East's first common user gas pipeline

7) The announcement of a strategic co investment agreement with the Arab Petroleum Investments Corporation

8) A strategic alliance with leading private equity firm Abraaj Capital to jointly invest in natural gas projects

Dana Gas ended the year in a healthy financial position, with revenues in excess of AED 1 billion, cash from operations of AED 478 million and total assets grown by 59% from the previous year to AED 10.8 billion.

It also presented its growth plans and outlook for the coming year

Mr Jafar said that "For 2008, Dana Gas aims to build on the strong foundations of 2007. In addition to the expected start up of operations and revenues from both the import of Iranian gas and the Kurdistan region's gas projects by the middle of 2008, it is also implementing an active USD 170 million drilling campaign of 19 new wells in Egypt and take full advantage of high energy prices."

He added that "In addition to our major investments and expansions in Egypt and Northern Iraq in the new concession offshore Sharjah, we will also be expanding our unique concept of developing 'Gas Cities' in other countries of the region and pursuing further opportunities and acquisitions currently under active study in the Gulf Region and in North Africa."

Omani non oil exports in 2007 reached OMR 1.29 billion

Omani Centre for Investment Promotion & Export Development, whose role is to develop non oil exports of Omani origin, has announced that the non oil Omani origin exports set a new record for the first time ever touching OMR 1.29 billion during 2007 as against OMR 812.5 million during 2006 up by 59% YoY.

The export performance has been in line with the export strategy adopted by the directorate general of export development of Omani Centre for Investment Promotion & Export Development, which has identified thrust products and target markets for the period 2006-2010.

Mr Aiman Ambusaidi director of export development of Omani Centre for Investment Promotion & Export Development said that during 2007 it had undertaken several steps to help Omani exporters. He added that given the important role the private sector plays in the development of trade in Oman, OCIPED pays special attention to involve this sector to share the opinion and take appropriate decision on the issues of export and export development.

Mr Aiman expressed his confidence of achieving the target of non oil Omani origin exports by 2010 given the fact that there has been a substantial growth of 59% during the year 2007.

Pakistan and China to sign MoU for Bhasha Dam financing

Daily Times reported that Pakistan and China are set to sign a MoU in the next week to seek soft loan from China for carrying out the construction Diamer Bhasha Dam project.

Official sources in water & power ministry said that Mr Pervez Musharraf president of Pakistan would visit China on April 8th to April 10th 2008 according to tentative schedule and two sides would sign MoU for Bhasha dam financing.

The officials said that Pakistani authorities would present the draft of detailed engineering design to the Chinese authorities to seek loan for the construction of Bhasha dam. They added that "After analyzing the draft design of the dam, China will give comments on it and offer the loan for the dam construction."

Sources said that World Bank’s terms and conditions for the loan for the construction of such mega project are tight and keeping in view that scenario Pakistan has decided to seek loan from China that would offer loan on soft terms and conditions.

When asked whether China would participate in the construction of the project, sources said that China would want to take award of the construction of the dam project because it has been the policy of china to take project for the construction for which it provides financing.

Chinese state run company Dong Fong has recently signed the contract with Pakistan for carrying out the 525 MW gas based thermal power plant at Chichoki Mallian and it is also working on 450 MW power project at Nandipur. Dong Fong has the experience of working on dam also like Gomal Zam dam and China may take the project for the construction. It is also working Neelum Jhelum Hydropower Project.

Sources said that Pakistan would also sign agreement with Chinese company Sino Coal that is willing to work on coal in Thar. It will initiate the project of coal in Thar.

Sources further added that Chinese company, Shenhua after spending three years rolled back from the project for mining coal in Thar. It has spent around USD 25 million during the project on the construction of road, water and power availability. When it mined the coal that was not of high quality, it was further asked to further process the coal but company denied and rolled back. Now, Chinese Company Sino Coal is willing to work on coal projects in Thar and agreement would be signed with the company during upcoming President Mr Pervez Musharraf’s visit to China.

Iran inks EUR 220 million industrial agreement with Turkey

Tehran Times reported that Iran’s Foolad Gostar Kosar Company and Turkey’s Rana Steel Company inked a EUR 220 million deal as a JV for establishment of steel mills in the 2 countries.

Both sides are to equally finance the projects. Launching the mills will create direct job opportunities for some 2,000 people in each country.

Persian Gulf world safest oil supplier – Mr Nozari

IRNA quoted Mr Gholam Hossein Nozari Iranian minister of oil as saying that Persian Gulf region is the world safest oil supplier. He made the remarks after a meeting with Mr Abdullah al Badri secretary general of OPEC.

Mr Nozari stressed that as a powerful country in the region, Iran plays essential role in security of the Persian Gulf.

Iran’s PSO to implement USD 567 million worth of development plans

Mehr News Agency reported that Iran’s Ports & Shipping Organization has scheduled to carry out development plans worth SAR 5,150 billion in the current Iranian year started March 20th 2008.

Mr Ali Jahandideh deputy director of the organization for administrative & financial affairs said that the lion’s share of the required budget for the plans will be provided through the organization’s revenues and the balance will be secured through foreign finance and selling participation bonds.

The budget allocated to the PSO for the current Iranian year is some SAR 7 trillion, while the figure was to the tune of SAR 6.7 trillion in the previous year.

Mr Jahandideh concluded that the organization’s revenues amounted to SAR 4.25 trillion in the past Iranian year and it is expected that the figure to rise to SAR 4.5 trillion in the current year.

Baosteel 2007 annual operating revenue created a historical high

Baoshan Iron & Steel Co Ltd announced its operating results for year 2007, 22,600,000 tonnes of commercial billet sales; CNY 191,560 million of total operating revenue up by 18.0% YoY creating a historical high; CNY 19,310 million of total profit, CNY 13,420 million of net profit; CNY 0.73 earning per share and 14.37% of return on equity.

In 2007, the company focused on 43 integration synergetic projects falling into 7 categories, including integration of production, sales and R&D, centralized purchase, centralized sales, technology promotion and transplant, managerial technique promotion, management integration and informationization construction etc, with remarkable synergetic efficiency achieved in the year.

Amid the fierce market competition, the company continues to maintain comprehensive competitive edges in the sectors of high end products that it concentrates on. The product mix keeps being optimized, and the sales of strategic products and exclusive leading products continue to grow rapidly. 7.39 million tonnes of exclusive and leading products were sold in the year accumulatively. The domestic market shares of cold rolled automotive sheets, appliance sheets, tin plates and pipeline steel in 2007 are 50.3%, 36.8%, 18.9% and 34.5% respectively, continuing the domestic leadership.

While achieving the best operating results in the history, the company carried forward the projects under construction smoothly. In 2007, the company completed CNY 22.54 billion of fixed assets investment. A batch of key capital construction and technical revamping projects such as Baosteel Branch's No.3 hot strip mill project, Majishan Phase 2 extension project, cold rolled sheet plant's comprehensive revamping project for adjustment of product mix, Stainless Steel Branch's cold-rolled stainless steel strip project, Special Steel Branch's special metallurgical cold roll blank project, Meishan Steel's relocated overhaul of 1# coke oven, etc were completed and put into operation ahead of or on schedule.

In 2007, centering on the construction of technical innovation system, the company strived to improve the efficiency and effect of the conversion of innovative achievements into productivity. In the whole year, the R&D input ratio was 1.05%, 800 patents were applied for including 350 invention patents, 1962 technical know how were formed and over CNY 1.3 billion of R&D economic benefits was realized.

WISCO to expand steel capacity to 50 million tonnes by 2010

Interfax China reported that Wuhan Iron and Steel Group Company Ltd China's fourth largest steel mill by capacity will expand its annual crude steel production capacity to as much as 50 million tonnes by 2010.

The report quoted Mr He Kangyong director of WISCO's overseas business development department as saying that "By 2010, WISCO is likely to have lifted its total crude steel production capacity to between 40 million and 50 million tonnes. This capacity will include a 10 million tonne steelworks project in Fangchenggang Guangxi and expanded attributable capacities held by Kunming Steel and Liuzhou Steel."

He said by the same time, WISCO's major production and operations base in Qingshan district, in Hubei Province's Wuhan City aims to attain an annual crude steel production capacity of 18 million tonnes. The base is targeted to produce 14.5 million tonnes of crude steel this year.

Mr He Kangyong said at present, WISCO's most competitive steel products on the domestic market include cold rolled silicon sheet, automobile plate and structure steel. Referring to WISCO's overseas development strategy, He said the company would focus on iron ore resource investment and steel product exports in the coming years.

He added that "WISCO is under great pressure from soaring raw material prices and freight rates and we are seeking investment opportunities in overseas iron ore mines."

CMC acquired a German stainless service center officially

It is reported that China Minmetals Corporation has acquired a stainless steel service center in North of Germany officially and plans to expand its capacity in the next few years.

Business manager responsible for stainless steel department of Minmetals Germany, Mr Wolfgang Pentzek said that China Minmetals was managing distribution business of European steel through a warehouse in Antwerpen. There are no other spot goods’ trading places at present.

China Minmetals has acquired Siegfried Pilz Sottrum, a steel service center near Bremen of Germany, covering an area of 20,000 square kilometers. The monthly steel processing capacity of this steel service center at present reached to 1000 tonnes.

China Minmetals bought a site near this service center and planed to double Siegfried Pilz in the next 3 or 5 years in order to provide different processing services. The center will mainly purchase raw materials from China but at the same time they welcome other suppliers from other countries too.

Longmen Steel to explore Daxigou iron mine

It is reported that Daxigou iron mine, located in Zhashui county of Shaanxi Province has rich siderite resources with a proved reserve of 302 million tonnes and prospective reserve of 500 million tonnes. It's a keynote construction project for Shaanxi Province which will involve total fund of CNY 2.8 billion.

Shaanxi Longmen Iron & Steel Co now is to undertake the exploration of this iron mine, scheduling to mining and dressing 8 million tonnes siderite and generating 2.7 million tonnes iron concentrate per year.

Once the project is completed, annual sales revenue will top CNY 2 billion and net profit some CNY 800 million.

Liuzhou Iron & Steel 2007 operating revenue up by 26.91% YoY

It is reported that Liuzhou Iron & Steel Company Limited reaped operating revenues of CNY 20.706 billion in 2007 up by 26.91% YoY as compared to 2006.

Liuzhou Iron & Steel Company Limited total profits amounted to CNY 1.078 billion in the year up by 29.68% YoY. Net profits attributed to shareholders of the listed company surged 31.82% to CNY 999 million and earnings per share stood at CNY 0.7104. Its outputs of crude steel and steel products touched 5.8035 million tonnes and 3.8645 million tonnes, respectively. Based on its capital stock of 1.423774 billion at 2007 end, the company plans to distribute cash bonus of CNY 2 for every ten shares to all shareholders and transfer capital reserve into capital stock, adding eight shares to every ten shares.

Liuzhou Iron & Steel Company Limited the company expects to produce 3.6 million tonnes of coke, 10 million tonnes of sinter, 3.2 million tonnes of pellet, 7.6 million tonnes of iron and 8.16 million tonnes of steel in 2008. It targets to gain operating revenues of CNY 28.2 billion and net profits of CNY 1.077 billion.

Xinjiang Bayi Steel Q1 net profit up over 150%YoY

XFN Asia reported that Xinjiang Bayi Iron & Steel Company Limited first quarter net profit is expected to have risen by over 150% YoY on surging steel product prices and higher output.

Xinjiang Bayi Iron & Steel Company Limited in a statement said that it had a net profit of CNY 39.61 million in the first quarter of 2007 with earnings per share of CNY 0.07.

Xinjiang Bayi Iron & Steel is indirectly controlled by Baosteel Group, China's largest steel producer.

Jinduicheng may raise USD 1.3 billion in Shanghai IPO

Reuters reported that Jinduicheng Molybdenum Group Co, Asia's largest producer of the material is planning to raise up to CNY 8.91 billion in its Shanghai initial public offer of shares.

The firm set an indicative price range of CNY 15.00 to CNY 16.57 per share for the offer, valuing the company at between 15.81 and 17.47 times its earnings in 2006, diluted for the offer. That was cheaper than a valuation of near 20 times which analysts had expected for the offer when it was under preparation early this year.

Jinduicheng plans to issue as many as 538 million new local currency A shares, or 20% of its expanded capital. It has said it needs CNY 7.65 billion to expand production and upgrade technology. Any extra proceeds would be used to supplement its working capital.

The IPO will take subscriptions and the company intends to list in Shanghai on April 17th 2008. 30% of the offer is earmarked for institutions and the rest for retail investors, but the ratio may be shifted in favour of the retail tranche if demand proves strong.

China accounts for nearly 40% of the world's molybdenum reserves. Jinduicheng's exports account for 10% of the world market.

TISCO successfully exploited new stainless CR product

It is reported TISCO has successfully exploited a new stainless CR 441 product through the efforts from the company’s technology department and marketing department. TISCO began to trial produced this product in October in 2007 according to the market and customer demand.

As per repot 441 products is one of the important varieties in ferritic stainless steel, and is mainly used in heat site of car’s exhaust pipe. It has excellent thermal fatigue property, high temperature mechanical, corrosion resistance and good weldability etc. The quality of 441 products produced by TISCO reaches the same industry standard at abroad.

China Molybdenum 2007 operating revenue up by 54.14% YoY

Hong Kong listed China Molybdenum Company Limited announced that it recorded an operating revenue of CNY 5.898 billion in 2007 up by 54.14% YoY. Its net profit amounted to CNY 2.24 billion, surging by 47.88% YoY.

Gross margin stepped down 6.7 percentage points to 61.4% due to payment of export tariffs on ferromolybdenum and molybdenum oxide. Besides, it sold ferromolybdenum at prices 8% higher than a year ago.

Mr Duan Yuxian chairman of China Molybdenum Company Limited said its molybdenum output would largely increase this year, thanks to be inaugurated roasting and smelting plant. It is contacting with related parties to acquire a molybdenum mine in Luanchuan County, Henan Province, central China in a bid to benefit from rising molybdenum prices.

International Trade Environment facing China Steel enterprises

It is reported that Mr Lou Dingbo assistant to GM of Baosteel Iron & Steel Co, gave a specialized analysis on the current international trade environment facing China's steel enterprises. Meanwhile, the steel industry is faced with mounting trade conflicts as shown in below chart.

Mr Lou also reviewed the steel involved antidumping cases these years.

Mr Lou quoted that the government's word that aims to guide steel industry consolidation as another background. The state owned assets supervision and management commission points out detailed plans to promote M&A between steel enterprise, taking examples of essential reform of Anben Group, Shougang's relocation and consolidation in North China, combination of Baosteel and Baotou Steel, etc.

(Sourced from MySteel.net)

Mongolia continues to eliminate backward steel and non ferrous metals production capacity

As China’s major iron and steel, non ferrous metals production base, Inner Mongolia Autonomous Region will continue to eliminate backward iron and steel, non ferrous metals production capacity in order to implement energy saving and emission reduction requirements.

Relying on abundant mineral resources, the metallurgical industry in Inner Mongolia developed greatly in recent years. In 2007, Inner Mongolia produced 10.4 million tonnes of steel, 1.35 million tonnes of ten kinds of non ferrous metals up by 20.8% and 52.2% respectively. It is expected that the output of ten kinds of nonferrous metals in 2008 will break through 2 million tonnes.

According to Mr Ya Saning director of Inner Mongolia Autonomous Region Economic Commission that in order to optimize the metallurgical production mix, and raise the development level, Inner Mongolia will continue to promote the reorganization of steel industry and eliminate iron making enterprises whose blast furnace is under 300 cubic meters on the basis of closing 91 small steel enterprises, eliminating 3.693 million tonnes production capacity in 2007.

It strives to achieve the goal that compressing 5.463 million tonnes of backward steel production capacity in 2009. At the same time, it will continue to compress 40,000 tonnes of nonferrous metals production capacity this year.

Additionally, Inner Mongolia substantially raises admittance standard for metallurgical industry in this year and will mainly develop special steel, stainless steel and deep processing industrial chain, in order to make the proportion of special steel and high quality steel be over 65% within four years.

TsingShan Holding plans to build stainless plant in Indonesia

It is reported that TsingShan Holding plans to build a stainless steel plant in Indonesia and the first stage capacity of this project will be 300,000 tonnes per year planning to be put into production by the year of 2011.

TsingShan Holding Group is a private-owned enterprise with the stainless steel capacity of 1.10 million tonnes, and locates in Zhejiang province. The total investment of this stainless steel plant was USD 350 million locates in Qbi island of South Halmahera Regency. It is a comprehensive project focusing on mines, power plants, nickel factory and stainless steel smelting as well as steel rolling etc.

An official of TsingShan Holding Group said that this was the first stainless steel project in Indonesia and was very popular with local government. After its completion, the plant will produce 300 and 200 series stainless steel billets.

Pingxiang Steel earmarks CNY 6.25 billion for expansion

It is reported that Pingxiang Steel is pumping CNY 6.25 billion into its subsidiary, Jiujiang Steel Works, in the next two years. The outlay includes a 1.2 million tonnes per year wire rod mill scheduled to be commissioned by the end of this year. Pingxiang also plans to start the construction work of a 1.6 million tonnes per year plate mill by July, with production possibly starting in October next year.

The Jiangxi province mill is also constructing another two wharves in the Yangtze riverside city of Jiujiang, giving a total of five wharves with an overall throughput of 13 million tonnes per year. By 2010, Jiujiang will be able to produce 4 million tonnes per year of crude steel, generating sales revenue of CNY 14 billion while its parent company will have a steelmaking capacity of 8 million tonnes per year, with sales revenue of CNY 30 billion. Pingxiang produced 4.14 million tonnes of crude steel last year. Its main products are rebar, high speed wire rod and small section.

Chinese ferrovanadium exports in February 2008

According to the recently released information by Chinese custom authorities, Chinese ferrovanadium exports during February 2008 amounted to 198 tonnes.

In tonnes

The import prices for iron ore in February in Jiangsu reached new records

According to the statistics from Nanjing customs from January to February in 2008, Jiangsu province imported iron ores of 5.737 million tonnes, with a value of USD 870 million in total, up by 22.8% and 1.4 times from the same period in 2007. And the unit price averaged US USD 151.5 per tonne up by 96.3%.

The reasons for the hikes in import prices for iron ores include:
1. The high monopoly in iron ore supply side, and the weakness of domestic steel makers in ores pricing.
2. The continuous rising ocean freight.
3. The quickly rising demand in international market.
4. The tight supply and demand relation in China.

Coal mine flood kills 7 in South West China

Xinhua reported that 7 people were killed and two are still missing after a coal mine flood in southwest China's Chongqing Municipality.

Chongqing municipal work safety bureau official said the accident occurred at around 2:40PM on Monday in Lutang coal mine, which belonged to the state owned Chongqing Zhongliangshan Coal Electric Limited Liability Company.

The cause of the accident is under investigation.

The overall listing of Pangang to be basically approved by SASAC

A high official from Panzhihua Iron & Steel Group revealed recently that State owned Assets Supervision Administration Commission has basically agreed the listing plan of Pangang.

As per report they are likely to hold the second board meeting before the end of April to make the specific plan. Once shareholders conference agrees the plan, the plan for Pansteel listed as a whole will be formally submitted to China Securities Regulatory Commission.

It is learned that the listing platform of Panfang Panzhihua New Steel and Vanadium Company Limited plans to buy assets of CNY 22.84 billion, net assets of CNY 2.32 billion. The net profit from January to June in 2007 of the company was nearly CNY 370 million.

Mechel announces purchase of 100% stake in Ductil Steel

Mechel OAO one of the leading Russian mining and metals companies, has announced that its purchase of 100% stake in Ductil Steel of Romania. The purchase is in line with further strategic development of Mechel’s steel segment and is also aimed at maintaining Mechel’s position in the Romanian rolled and wire product markets of Romania.

On March 28th 2008, Mechel’s subsidiary, Mechel International Holdings AG, Switzerland, received approval from the Romanian Antimonopoly Committee to acquire the sole control of Ductil Steel. On April 8th 2008, Mechel acquired 100% of the charter capital of Ductil Steel for EUR 142.0 million. The purchase price includes 180,000 ordinary shares from Lakewind L