Proper use of raw materials by Indian steel industry called for

FE reported that Indian steelmakers during the two day 41st Steel Operating Committee meet felt that every ounce of raw materials such as iron ore, coal and manganese should be made proper use of.

Mr H Jha, VP of long products & safety of TATA Steel the inaugural session said that "Utilization of every ounce of these raw materials is of fundamental importance as they play a very important role in the strategy of a company. It is becoming imperative to see how much of every tonne of iron ore or coal being mined in the country was being used to make steel of the best quality.”

Steel Operating Committee is a forum where representatives of various steel plants in the country gather for a couple of days each year to discuss various aspects related to steel making technology and the operating practices involved in the making of steel. There are around 60 delegates attending the meet from major steel plants,

TATA Metaliks to set up long product plant in Karnataka

PTI reported that Indian pig iron maker TATA Metaliks is planning to invest around INR 1,000 crore to build a 0.8 million tonne plant for manufacturing long products in Karnataka and has begun scouting for around 500 acres of land in the state.

The report cited a company official as saying that "On an invitation from the Karnataka Udyog Mitra, TATA Metaliks is seeking to establish a 0.8 million tonne plant in the state at an estimated investment of about INR 1,000 crore. The state government has indicated to us that it will take care of our raw material needs and we feel encouraged.”

However, it is likely to take another 3 months to 4 months to finalize the blueprint for the plant.

TATA Metaliks Ltd is engaged in the business of manufacturing and selling pig iron and its plants at Kharagpur in West Bengal and at Redi in Maharashtra with captive power plants.

Five qualify for Kudremukh new DI pipe mill

Projects Today reported that 5 firms have qualified in the technical bid for Kudremukh Iron Ore Company Ltd's proposed ductile iron spun pipe mill in Mangalore. Over the next two weeks, price bids will be opened and the turnkey contractor for INR 225 crore project will be finalized by May end, after due approval from the company board.

100,000 tonnes pipe mill is understood to be the first in the public sector as so far Jindals and Electrosteel Castings are dominating the market. The mill will produce pipes of various sizes in 100 mm to 1,000 mm diameter.

KIOCL has proposed to set up the mill in a 4.5 acre complex in the vicinity of its blast furnace at Parambur near Mangalore. Land acquisition and environmental clearance is in place. The pipe mill is scheduled to commission by early 2010,

Ductile iron pipes are fast emerging as an alternative to cast iron pipes that tend to corrode and have already been banned in many countries. DI pipes besides being corrosion resistant are also lighter and more durable.

RINL reduces rebar and section prices by INR 2000 per tonne

In response to the call of Honorable Prime Minister’s call in controlling inflation, Rashtriya Ispat Nigam Limited the holding company of Visakhapatnam Steel Plant has reduced their prices of‘rebars and structural by INR 2,000 per tonne with effect from May 9th 2008.

Indian government may invoke old act for cement industry

BL reported that Indian government is contemplating using Section 18G of the Industries (Development and Regulation) Act, 1951, which empowers it to regulate prices and supplies of industrial commodities without bringing them under Essential Commodities Act.

This provision, Section 18G, which has not been used for almost 19 years after a cabinet decision in 1989 not to invoke it, provides for control on prices and supplies of industrial products without bringing them under the purview of the Essential Commodities Act under which powers are vested with states.

Mr Ashwani Kumar Indian minister of state for industries told BL that his ministry is conducting a study on whether the cement industry is into cartelization and profiteering. He said that “Our Ministry is analyzing the pricing of the cement industry. If there is any prima facie evidence, we will resort to the strictest administrative measures to ensure fairness and reasonability of prices.”

As per report, the analysis is being done on the basis of data provided by public sector Cement Corporation of India, the Bureau of Industrial Costs and Prices, the National Productivity Council, Cement Manufacturers Association and also private players.

Usha Martin disinvestment in UM Cables falls through

Usha Martin Ltd has announced that the proposed buyer B3 Cable Solutions of UK for its wholly owned subsidiary UM Cables Ltd has intimated their inability to conclude the purchase.

Usha Martin had announced on November 7th 2007 about this transaction.

ThyssenKrupp to install elevators and escalators at Delhi airport

Thomson Financial reported that ThyssenKrupp AG’s elevators unit has won a contract to equip Delhi's Indira Gandhi International Airport with passenger transportation systems. No financial details were provided.

ThyssenKrupp said that it will install 69 elevators, 37 escalators, 98 moving walks and 63 passenger boarding bridges at the airport's new Terminal 3.

The terminal is scheduled to open in mid 2010 with an annual handling capacity of 27 million passengers.

ACC freezes cement prices for next 3 months

ACC Cement said that it is freezing the rates for next 2 to 3 months, mirroring steps taken by steelmakers to complement government's efforts to fight inflation.

A senior official of ACC Cement said that "We have frozen the price for next 2 to 3 months. We have taken the decision in response to government concern about the cement price situation. We are the leading cement company of India and therefore we have assured that we will hold the cement prices at existing rate." He added that it would like to have duologue with government as it is concerned about higher input costs which affect the margins.

The decision to reduce prices by steelmakers and now ACC Cement is expected to soothe the government's concerns on inflation that is at 42 month high of 7.57%.

Civil work begins at NTPC Bongaigaon power plant

BL reported that civil works began at NTPC's 750 MW Bongaigaon thermal power station at Salakati in Assam.

The first 250 MW is expected to be commissioned in February 2011, the second 250 MW in April or May 2011 and the third unit of 250 MW in June or July 2011.

The Bongaigaon project will use a mix of coal from Eastern Coalfields and from the Margherita fields in Assam. Orders for boilers and turbines have been placed with BHEL.

It is learnt that, the proposed power unit will be first in India to use flue gas desulphurization technology to control the emission of sulphur dioxide. Foundation stone for the project had been laid in January 2006 by Dr Manmohan Singh.

Srinivasa Constructions close to get 10 MW Gajapati hydel project

Projects Today reported that Srinivasa Constructions is in the process of achieving financial closure for setting up a 10 MW hydel power unit in Gajapati district in Orissa. The project will cost INR 45 crore and is slated for completion by October 2009.

West Asia Maritime signs INR 440 crore deal with Mitsubishi

BL reported that Chennai based West Asia Maritime Limited has signed a USD 110 million contract with Mitsubishi Corporation for chartering two Handymax bulk carriers under bare boat charter.

Mr Abdul Qadir A Rahman Buhari MD of West Asia Maritime Limited said that the two new ships are to be delivered by Mitsubishi during the third quarter of 2012 and first quarter of 2013.

He added that under the bare boat charter, it will pay Mitsubishi an upfront fee of 10% of the total cost and the balance when the ships are delivered. Mitsubishi will also arrange finance, identify the ship building yard, and provide ships on charter to WAM, which can just focus on identifying clients for the cargo.

Under the bare boat charter, the entity chartering a vessel has complete possession and control of the ship, including the right to appoint its crew. Two years ago, West Asia Maritime signed a similar deal for USD 33 million with another Mitsui & Co for a bulk carrier.

Promoted by the Dubai based Emirate Trading Agency, West Asia Maritime and its Singapore based subsidiaries own 5 Handymax vessels, 7 Panamax dry bulk carriers and 4 chemical tankers. For the fiscal ended March 2008, WAM and its subsidiaries transported 12.77 million tonnes cargo. The current market value of its owned and bare boat chartered vessels and the new contract was USD 677 million.

Maharashtra government plans Sea World in Sindhudurg

BL reported that Maharashtra government is planning to set up a 'Sea World' to showcase marine life in Sindhudurg district.

As per report, Marine biologist & consultant, Mr Sarang Kulkarni has prepared a concept paper for the proposed INR 700 crore project, for which 45 acres of land has already been identified.

The proposed Sea World will have the longest tunnel and largest water quantity in the world, which will showcase Konkan's rich marine life through it. The project will also include amusement park and entertainment cum tourism city. Other facilities planned include lagoons having snorkeling facility with shallow water rich marine life, scuba diving facility in the Arabian Sea, discovery pool, which comprises exclusive facility for underwater movie and documentary shootings, Tropical Island with underwater hall for special events, blue planet, a special underwater hotel and a kid’s interactive program.

The project is expected to be completed by 2013-14.

Adani Group eying Brakel stake in Himachal hydro projects

It is reported that the Netherlands based Brakel Corporation NV is in talks with various parties, including the Adani Group, for inducting a strategic partner for the 960 MW Jangi Thopan and Thopan Powari twin hydro electric projects in Himachal Pradesh. A project of this size attracts a valuation of more than INR 4,000 crore when it goes operational.

Sources in the Adani Group said they would like to pick up a stake in the project after the ongoing litigation over these projects is resolved.

Adani Group is adopting a wait and watch strategy since the Jangi Thopan and Thopan Powari project is facing turbulence due to default by Brakel in paying the premium of INR 173 crore to the Himachal Pradesh government. After a delay of more than 2 years, the premium amount was paid recently after the state government served a notice on the Dutch company, threatening to scrap the award of the project. Apart from the delay in paying the premium, the state government has also accused Brakel of keeping it in the dark about Brakel Kinnaur Power, a company formed by Brakel for implementing the project.

The principal secretary of Himachal power department has, in a recent missive, asked Brakel to disclose its source of funds and submit details about directors, paid up capital and shareholding pattern. The balance sheet and audited accounts of the company for the past 3 years has also been summoned. Officials of the state government feel that Brakel may be inducting a partner through the back door without informing the Himachal government. The company, on its part, has said the funds deposited with the state government have been raised as equity bridge financing.

According to rules laid down by the Himachal Pradesh government, Brakel can offload up to 49% stake in the twin projects but only after obtaining prior permission from the state government.

Titagarh Wagons appoints Mr Chowdhary as VC

Titagarh Wagons Limited announced that Mr Umesh Chowdhary has been appointed vice chairman of the board.

BDI exceeds 10,000 for first time since December

It is reported that the Baltic Dry Index jumped above 10,000 points for the first time since December, not far from last year's peak of 11039 points. Market analysts are quite optimistic that the index is set to exceed that peak within this year.

Ocean freight rates for coal and iron ore have extended strong gains, and the Baltic Exchange's Capesize index surpassed the 15,000 benchmark on May 9. Recent iron ore fixtures in the spot market have been at more than USD 35.52 per tonne for voyages from Western Australia to China and at about USD 95.4 per tonne for Brazil to China.

Mr Alex Gray CEO of London based Clarkson Securities Ltd said that “The market is very, very close to equilibrium in terms of demand and supply. What we are seeing at the moment is a building up of pressure around iron ore shipments and grains.''

He added that the Baltic index rose to a record in November because of Chinese demand for commodities including coal and iron ore. The nation, the world's most populous is also the biggest consumer of metals including copper, nickel, zinc, tin and aluminum.

The market insiders anticipate the dry bulk shipping rates to set a new record in the short term, however, they believe a period of downward correction is set to follow.

Oil surpasses USD 126 per barrel

It is reported that oil prices surpassed a record USD 126 per barrel Friday on the eve of the US driving season as a weakening dollar drove investors to snap up commodities.

As per report light, sweet crude for June delivery rose USD 2.51 to a new record of USD 126.20 a barrel in electronic trading on the New York Mercantile Exchange by the afternoon in Europe. On Thursday, the contract rose to a record close of USD 123.69 a barrel.

In London, Brent crude contracts also hit record highs before slipping and traded up USD 2.98 on the day at USD 125.82 a barrel on the ICE Futures exchange. Earlier Friday, Brent had reached USD 125.90 before falling back.

Esmark terms ArcelorMittal lawsuit without any merit

Esmark Incorporated said that it has received notice of an announcement by ArcelorMittal that it filed suit against the Company and E2 Acquisition Corporation in the Supreme Court of the State of New York alleging that the Company and E2 breached a contract to purchase the Sparrows Point steelmaking facility from ArcelorMittal.

It said that “Although neither the Company nor E2 has yet received or reviewed a complaint, in light of the circumstances surrounding the termination of the Sparrows Point sale agreement with E2 Acquisition Corporation, the company is surprised and disappointed that ArcelorMittal would file such a frivolous lawsuit.”

It added that “The company believes that any claims arising out of the contemplated Sparrows Point transaction are without merit for numerous reasons including.”

1. The Company is not a party to agreements with ArcelorMittal pertaining to the proposed Sparrows Point transactions.
2. ArcelorMittal failed to meet various conditions which were required to close the transaction;
3. ArcelorMittal failed to resolve outstanding disputes it had with the United Steelworkers pertaining to the proposed sale.
4. ArcelorMittal failed to obtain the required consent of the United Steelworkers as admitted in its November 14, 2007 earnings release, where it was stated that the Sparrows Point transaction was still pending approval of the United Steelworkers.

Esmark said that it will vigorously defend against the lawsuit and pursue any claims it has against ArcelorMittal.

Mr Branco new CEO for Usiminas and Cosipa

With a 25 year background in the steel industry, Mr Marco Antônio Castello Branco is appointed as the new Usiminas and Cosipa CEO. The appointment was confirmed during the board of directors meeting held on April 29th 2008 at the company headquarters in Belo Horizonte.
Mr Castello Branco will take over his new position on June 5th 2008, upon his resignation as chairman of the board of directors of Vallourec&Mannesmann do Brasil and chairman of the Hot Rolled Tubes Division of the parent company in France.

Mr Branco said that it is a privilege to become a member of the Usiminas System’s team. He said that “I know that I still have a lot to learn from you, and I want to give my best to the continuous development of Usiminas and Cosipa, their employees, shareholders, customers and suppliers, as well as the communities within the Companies’ area of influence. I undertake to pursue the Usiminas System’s journey in its mission of creating value to everyone.”

ArcelorMittal offers to buy 49% of PT Krakatau Steel - Report

Bisnis Indonesia reported that ArcelorMittal has made a formal offer to the Indonesian government to buy a 49% stake in state owned steelmaker PT Krakatau Steel.

The report quoted Mr Sudhir Maheshwari executive vice president for finance and merger and acquisition of ArcelorMittal as saying that "We are allowed to buy a stake of less than 50%, so we are making an offer to buy a maximum 49%.”

ArcelorMittal is among several companies interested to buy into Krakatau Steel. Australia's Blue Scope and India's TATA Steel have also been reported to be in the running.

Esmark incorporated settles lawsuit with Herman Strauss

Esmark Incorporated confirmed the settlement of litigation pending in United States District Court for the Northern District of West Virginia between its wholly owned subsidiary Esmark Steel Service Group and Herman Strauss, Inc.

By mutual agreement, the terms of the settlement were not disclosed.

The litigation arose out of a commercial dispute relating to steel scrap purchased by Wheeling Pittsburgh Steel Corporation from HSI.

Usiminas wins global supplier prize from GM

For the third consecutive time, Usiminas won the Global Supplier of the Year in the best supplier of the metallic segment category, an accomplishment never achieved before by other competing companies.

The award ceremony took place on April 26th2008 at Jacksonnville in Florida of USA. The prize was given to the Mr Idalino Coelho Ferreira CTO and the automotive sales superintendent Mr Luis Eduardo Gonçalves, who represented the company in the event.

Mr Bo Andersson GM group vice president of Global Purchasing and Supply Chain said that “GM is proud to honor Usiminas as a GM Supplier of the Year winner. This award is our way of telling the winners that we appreciate all of their efforts in working together with GM to manufacture world class vehicles.

He added that “Usiminas is among the best of the best. They understand that our mutual success can only be achieved by sharing common goals and priorities.”

The Global Supplier of the Year prize, annually granted by General Motors, recognizes the main suppliers of the North American company in the many varied segments. The good assessment obtained by the steelmaker in all the items, which has made it a winner 3 times, is the result of the alignment and integration in areas such as Sales, Steelworks, Logistics, Marketing, Production Program, Research & Development and Production, working to attend GM’s expectations.

Ann Joo sees steel prices correction under free market

Ann Joo Resources expects that average steel prices to increase in Malaysia under a free market scenario initially due to strong global demand but would likely come down eventually due to a possible correction.

Mr Datuk Lim Hong executive director of Ann Joo Resources after the annual general meeting said that "We actually prefer a free market, all the while from day one.”

He added that the government should decide on allowing prices to be determined by market forces fast as it will help the construction industry to make better decisions relating to costs.

Mr Lim said that the country's construction sector is ready for a free market as it would help counter the current high cost of building materials as it would allow market forces to dictate prices of steel bars. He said that "We are exporting into the international market that means we are also ready to go for the free market.”

Mr Lim said that the domestic selling price has to track very closely international prices. He added that "As steel millers, we are importing a majority of the scrap metal or about 70% at international price.”

Mr Lim said that Ann Joo's performance would continue to be strong not because of the open market but because global world steel demand is very strong.

Centrostal acquires Florian Podkarpacie SA in Poland

Centrostal SA recently announced that it bought shares of Florian Podkarpacie SA based at Nowy Sacz, Poland representing 77.44% of the company's share capital. The shares were bought from Zlomrex SA based in Poraj.

The price of the transaction was PLN 5,083,791.40 corresponding to PLN 1,500.53 per share. Before the transaction the Company did not own any shares of Florian Podkarpacie SA.

Nowy Sącz based firm Florian Podkarpacie SA is a manufacturing and trading company. It has been operating in the roofing materials market since 1996.It was a member of ZŁOMREX GROUP since August 2007. It specializes in the conversion of hot dip zinc coated steel sheets and hot dip zinc coated steel sheets with organic coating to various shapes and products.

BDI surges to 10237

On May 9th 2008, spot rates based Baltic Dry Index went up by 16 points to end at 10237.

Baltic Cape Index

Baltic Panamax Index

Baltic Supramax Index

Spot 4 TC Average = The Average Value of the Four Main Shipping Routes applicable for each of the 3 types of Ships

BDI=The Weighted Composite Index of BCI/BPI/BHMI

US ditches zinc penny for steel version

It is reported that the US House voted to bring back the steel penny, saying it would be cheaper than the current practice whereby the government loses money on every penny it makes because of rising zinc prices.

The chamber approved legislation directing the US Mint to begin producing, within the next nine months, pennies made of copper plated steel not the zinc copper alloy currently used.

The measure also recommends phasing in steel nickels over the next two years.

Democrats, who noted that the government produced steel pennies during the Second World War when copper demand was high, said the plan would save USD 1 billion over the next decade.

ABB acquires Vectek Electronics in new Zealand

ABB, the leading power and automation technology group announced that it has acquired the business of Vectek Electronics, a New Zealand company with innovative technology that improves the quality of the power supply in industrial installations, which helps to reduce downtime and increase productivity.

Vectek Electronics has 73 employees as well as a research and development center in the town of Napier and will operate as part of ABB’s Automation Products division. Terms of the transaction are not being disclosed.

Mr Tom Sjoekvist head of the Automation Products division said that “Vectek is an ideal addition to our portfolio of technologies that help customers increase power reliability, productivity and energy efficiency. ABB’s global scope will enable customers on every continent to benefit from this new technology.”

ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB group of companies operates in around 100 countries and employs more than 110,000 people.

Mr Fillion receives AISI market development industry leadership award

The American Iron and Steel Institute announced that Mr John E Fillion senior manager of materials engineering retired at Chrysler LLC is a recipient of its 2008 AISI Market Development Industry Leadership Award. The award presentation was made by Mr Keith E Busse chairman AISI during a ceremony held at AISI’s 116th general meeting.

Mr Fillion joined Chrysler in 1978 as a materials development engineer and developed applications for elastomers and plastics in the areas of power train, chassis, exterior and interior components. In 1993, he assisted in the formation of the United States Automotive Materials Partnership, a consortium of Ford Motor Company, General Motors Corporation, and Chrysler LLC that directed materials research for lightweight vehicles, funded in part by the Department of Energy. He served six times as chairman of USAMP.

Mr Ronald Krupitzer vice president of automotive applications of AISI said that “For many years, John has helped to open up doors in the automotive research community and at Chrysler for innovative steel solutions. He convinced representatives at the US Automotive Materials Partnership and the US Department of Energy to expand their lightweight design research effort to include funding for new steels. The USAMP support of steel development has averaged about USD 2 million per year since 2001. This steel research has revolutionized automotive design at many automotive companies, including Chrysler. Today, advanced high-strength steels are the fastest-growing materials in automotive design because of their durability, cost-effectiveness, fuel efficiency, and environmentally responsible properties.”

The AISI Market Development Industry Leadership Award recognizes individuals who have made significant contributions in advancing the competitive use of steel in the marketplace as a direct result of AISI Market Development initiatives in the automotive, construction and container markets.

Japanese steel exports hit record high in 2007-08

According to data released by the Japan Iron and Steel Federation showed that Japan's steel exports up by 7.1% to an all time high of 38.44 million tonnes in fiscal 2007.

The federation said that ravenous demand from emerging economies was a major factor in the increase. In addition, Japanese steelmakers have been boosting the proportion of their products earmarked for overseas since last June, when domestic housing starts began to slump in response to tougher building standards.

It said that exports to South Korea, the biggest consumer of Japanese steel, jumped by 13 .7% while shipments to Thailand, Taiwan and China rose 13.3%, 3% and 1.9% respectively. Exports to the US meanwhile tumbled 17.7%, the first decline in 4 years as the subprime mortgage mess continues to sap demand there.

Precision Castparts Q4 profit up by 36% YoY

Metal products maker Precision Castparts Corp announced that it quarterly profit rose 36% YoY to USD 265.6 million as compared to USD 198.8 million helped by higher sales of its aerospace and industrial components and a one time gain from selling two businesses.

Precision Castparts’s fourth quarter sales were USD 1.79 billion as compared to USD 1.54 billion last year, yielding consolidated segment operating income of USD 417.3 million or 23.3% YoY of sales in the quarter, compared to consolidated segment operating income of USD 304.4 million or 19.8% YoY of sales, in the same period last year.

Mr Mark Donegan CEO of Precision Castparts said that the company is well positioned to continue its growth, even in a volatile economy. He said the company was able to pay its debt down to USD 355 million and has USD 221.3 million in cash on hand.

He added that "Our base aerospace business rests on a firm foundation, and we look forward to the growth that will be driven by such programs as the Airbus A380, the Boeing 787, the F 35 fighter and the KC-X tanker.”

Mr Sharkey awarded 2008 Gary memorial medal

The American Iron and Steel Institute announced that Mr Andrew G. Sharkey III president & CEO of AISI is the 2008 recipient of the Gary Memorial Medal. He was honored with the award at the AISI 116th General Meeting held on May 4th to 6th 2008.

In presenting the award, 2008-09 Mr Keith E Busse Chairman of AISI said that Mr Sharkey leading the industry through challenging times, which were followed by a period of tremendous revitalization that produced a vibrant and sustainable North American steel industry.”

He added that “The leaders of AISI’s member companies greatly appreciate Andy’s years of service. He has spoken out on Capitol Hill, to the media and before customer groups on the importance of having a strong and healthy steel industry, which is so vital to our nation’s economic and national security. He has been a highly effective CEO for the Institute, providing added value for the members of AISI.”

Arabian steel output in 2007 up by 16% YoY

According to a report by the Arab Iron & Steel Union, the volume of iron and steel production by Arab companies totaled 24.82 million tonnes in 2007 up by an estimated 16.46% YoY.

The report, which was presented by Mr Mohamed Laid Lachgar, union's secretary general, to the general annual meeting of the union held recently in Sharm el Sheikh, showed that Arab production accounted for 2% of the global production of iron and steel which was estimated at 1.2 billion tonnes in 2007.

According to the report, the iron production of 12 major Arab companies reached 19.579 million tonnes, accounting for 79% of the overall production, while the production of other 45 Arab companies touched 5.25 million tonnes.

The union's report for 2006 pointed out that the UAE topped the list of Arab importers with 6.5 million tonnes, including 2.4 million tonnes in reinforced iron. The UAE ranks 11th among the major importers of Iron and steel worldwide, the report said. The report also showed that up to 2010, the iron industry would witness 97 new projects that would add many products to this sector.

Ezz Steel gets nod for rebar project in Algeria

ArabSteel reported that Egyptian steel makers Ezz Steel has got the approval of the National Council of Investment in Algeria on April 20th 2008 to start with the works related to setting up a steel project in Algeria with a capacity of 1.5 million tonne of reinforcing steel.

It will be set up in Bellara region belonging to Jijel State on a plot of 200 hectares. Work in this project is expected to start during the next weeks and completion of this project will take 24 months.

According to Algerian Al-Watan newspaper, the first stage of the project is estimated to cost USD 750 million followed by second stage costing USD 500 million.

Bateman Litwin bags power plant contract for OCP Group

Bateman Litwin recently announced that its wholly owned subsidiary, Litwin SA, has been awarded an engineering, construction and procurement contract with Maroc Phosphore, a subsidiary of the Moroccan OCP Group, for the construction of a new thermal power plant on the Maroc Chimie chemical complex located at Safi in Morocco.

The project, worth USD 85 million, is part of an ongoing program of modernization, revamping and extension of OCP's chemical complexes. Construction of the plant is expected to be completed in approximately 27 months.

Litwin will supply two extraction condensing steam turbine generators, with a nominal power up to about 16 MW as well as all the associated infrastructure and civil works for a complete facility.

As the lead contractor, Litwin will be responsible for all aspects of project management, including the conception, procurement, shipment, construction, staff training, commissioning, and testing of the new thermo electrical power plant.

Max Abitbol CEO of Litwin said that "We are very pleased to have received repeat business from OCP for the construction of power stations. Furthermore, it is the sixth contract awarded to Litwin in less than two years in the Moroccan power market.”

20 year tax holiday for power projects likely in Pakistan

Daily Times reported that Pakistan government has decided to offer over 20 years tax holiday to attract private sector investment in building power houses worth billions of dollars on the proposed 5 big dams. They are
1) Diamer Basha Dam project – 4,500 MW
2) Kaklabagh Dam project – 3,600 MW
3) Munda Dam project – 600 MW
4) Kurram Tangi Dam project – 83 MW
5) Akhori Dam project – 600 MW

Official sources informed that the task force on 5 big dams has evaluated the options for the participation of private sector in the construction of dams. The task force was of the view that private sector would be willing to invest in power generation option and would make available much need finances for the expensive power houses.

Private sector would be offered investment opportunities on public private partnership on build operate and transfer basis. It added that formal announcement of tax holiday package is expected in the budget 2008-09. The investors would be exempted from income tax and are also expected to get exemptions from taxes and duties on their imports for the said power houses.

According to the initial estimates for the construction of five big dams, government needs USD 22 billion immediately. Multilateral financial institutions have already expressed their inability to finance such mega projects alone and had suggested the government of Pakistan to allow private sector to help government in this regard.

No hike in electricity prices under consideration in Pakistan

The Daily news reported that Mr Raja Pervaiz Ashraf federal minister for water & power has dispelled rumors that Pakistan government is considering to increase electricity prices and said that it is taking various steps to curb power shortage in the country.

Mr Ashraf claimed that the government has adopted a comprehensive strategy to meet the power demand on emergency basis. The government wants to resume closed power generation units and at the same time to increase power production capacity of the existing units. It is also considering rental power and trying to ensure the availability of about 2,200MW power before December 2008.

He informed that steps for meeting power crises include, putting off street lights, discourage use of heavy lighting during marriage and other ceremonies, two days weekly holiday, closer of trade markets at 8PM etc.

Mr Ashraf said that the JMC identified that there exists huge potential for collaboration in the food sector, corporate farming, telecommunication, information technology, software development, education, health and financial sector.

Chinese steel exports in 4 months dip by 24% YoY

General Administration of China Customs announced that China has exported 16.17 million tonnes of steel products in the first four months of 2008 down by 23.9% YoY while imports fell by 2.2% YoY to 5.68 million tonnes.

China exported 4.78 million tonnes steel products in April 2008 down by 33.2% YoY while imports stood at 1.5 million tonnes down by 7.9% YoY.

Imports of steel billet in the first four months of 2008 fell by 32% YoY to 70,000 tones as April imports totaled 20,000 tonnes. Exports of steel billet in the same period decreased by 96.2% to 100,000 tonnes with 10,000 tonnes exported in April.

Rebar market in China starts correcting

It is reported that Chinese domestic steel market prices are still on the rise except rebar and wire rod. Construction steel market has been flourishing in China since this February and export tonnages also have seen rebound. However, domestic prices saw evident decrease on the weekend signaling that Chinese domestic market is likely to start its correction in the short term.

On Shanghai market, HRB335 20mm rebar with exemption from inspection was being offered at CNY 5340 per tonne to CNY 5350 per tonne while those common products were only tagged at CNY 5220 per tonne to CNY 5240 per tonne down by CNY 150 per tonne from peak levels.

Export offer for rebar were at about USD 950 per tonne to USD 960 per tonne on FOB levels and that for wire rod at USD 970 per tonne to USD 980 per tonne on FOB levels. But transactions were concluded at USD 920 per tonne for vanadium based rebars and USD 940 per tonne for wire rods.

Tonnages have seen evident rebound and most shipments go to Asia and Middle East area. The first five destinations for rebar in March are South Korea, Hong Kong, Singapore, Angola and Cambodia. Those for wire rod are Vietnam, South Korea, Thailand, Taiwan and Philippines. Export volume is expected to see further rise for April shipment, but it also would raise the risk of another increase in export tariff by Beijing and more trade friction.

(Sourced from MySteel.net)

Shougang Supply and Nantong Jiangdong become strategic partners

It is reported that on May 4th 2008, Shougang Supply Company and Jiangsu Province Nantong Jiangdong Carbon signed strategic cooperation agreement which is about ultra-high-power electrode resources. Shougang LF furnace ultra-high-power electrode needs have stable resources and prices ensure, it is the third strategic cooperative agreement signing with the materials suppliers for Shougang after signing with petroleum China and petrochemical China.

Nantong Jiangdong Carbon Company is China’s important carbon product manufacturing enterprise, mainly produce ultra-high-power electrodes, special graphite products, carbon materials manufacturing, sales and related products in research and development, nearly produces 50,000 tons products every year. It is also the main supplier for Baosteel, Anshan Steel, Hansteel, Hanggang etc.

The signing of this agreement on one hand can stabilize the resources and prices, ensure the normal production of Qiangang, Shouqin, Shougang’s second steel-making plant Lf furnace, on the other hand expressed the in-depth cooperation between the two sides.

CNPC and Nippon Oil form refinery joint venture

China Daily reported that China National Petroleum Corporation has signed an agreement with Nippon Oil Corporation to build a refinery to tap the growing Asian demand. It will have a processing capacity of 115,000 barrels per day.

CNPC said that the two sides also signed an agreement to use the Japanese refiner's surplus capacity. Nippon Oil has increased the amount of oil it refines for CNPC to 70,000 barrels per day, from 20,000 barrels per day in 2004. It said the cooperation with Nippon Oil is the largest cooperation program between China and Japan in the energy area in recent years.

Mr Shinji Nishio president of Nippon Oil said that Nippon Oil the refining venture would be in Osaka and CNPC will take a 49% stake. CNPC will be in charge of crude procurement and product sales, and Nippon Oil will be in charge of operations and management.

Analysts said that the deal will increase CNPC's oil refining capacity to better meet increasing domestic demand. The company plans to increase its share of the domestic oil refining market to 45% by 2020 as demand for fuels and chemicals rise.

Severstal completes acquisition of Sparrows Point

OAO Severstal completed its previously announced acquisition of Sparrows Point, a fully integrated steel mill based at Baltimore in Maryland of United States from ArcelorMittal.

Severstal has received regulatory approval from the United States Department of Justice and the Committee on Foreign Investment in the United States.

Sparrows Point has a capacity of 3.6 million tons of crude steel and shipped 2.3 million tons of finished steel products in 2007; it is the only integrated producer of flat rolled steel on the US East Coast and is a major North American supplier of tin mill products.

The acquisition is expected to be accretive in year one based on current projections of costs and prices and offers significant value creation potential. Additionally, Severstal expects substantial synergies with its current US operations in Dearborn, Michigan and Columbus, Mississippi.

Merrill Lynch & Co. acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Severstal.

Russian Eastern Railway increases freight turnover

Vadivostoktimes.com reported that 4.8 million tonnes of cargo was shipped by the Far Eastern Railway in April 2008 up by 106.3 % YoY.
1. Coal – 1.490 million tonnes
2. Oil products – 0.859 million tonnes
3. Lumber – 0.754 million tonnes
4. Imported cargo – 0.449 million tonnes

The freight turnover of main cargo increased considerably in comparison with the rates of last year
1. Ferrous materials – 0.105 million tonnes up by 166% YoY
2. Cement – 0.314 million tonnes up by 386% YoY
3. Steel scrap – 0.050 million tonnes up by 157% YoY

In 4 months of 2008, 18.2 million tonnes of cargo was shipped, it exceeds the rates of the corresponding period of last year by 1.26 million tonnes. The maximum handling at Vladivostok branch of the railway comes to 6.2 million tonnes and at Komsomolsk branch at 5.2 million tonnes.

Gas tariffs in Russia to grow by 40% in 2011

Mr Andrei Klepach deputy ministry of economic development and trade said that the average gas tariff for all consumers will grow by 40% in 2011.

Mr Klepach said that the expected rate of tariff growth will virtually not change in 2008-2010. he added that In 2008-2009, the growth of regulated gas tariffs for the population will be 25% and 30% in 2010.

Ukrainian cabinet endorses GUAM agreement

Ukrainian News Agency reported that the cabinet of ministers has endorsed an agreement among governments of member states of the Organization for Democracy and Economic Development GUAM (Georgia, Ukraine, Azerbaijan, and Moldova) on international multimodal cargo shipment by two or more kinds of transport. The agreement was signed in Baku on June 19, 2007.

The endorsement of the agreement by the Cabinet of Ministers is a national procedure required to enact it.

As per report the agreement regulates relations between individuals and legal entities with shipment of cargo in interaction between railroads, river transport, sea transport, motor transport, and ferries. The agreement also gives rights, obligations and responsibilities of each participant in shipment.

The governments of GUAM have committed to facilitate the development and competitive capacities of multimodal shipment. The governments also agreed to transfer customs clearance of goods from border checkpoints to terminals of shipment.

The governments have also committed to facilitate coordination of tariff policies on shipment and handling of cargos at terminals for multimodal shipment.

Kazakhstan oil production in 4 months up by 6.3%

Bloomberg reported that Kazakhstan has increased crude production by an annual 6.3% in the January to April 2008 period.

Mr Sauat Mynbaye energy minister of Kazakhstan said that its output reached 23.6 million tonnes of crude and gas condensate by the end of April 2008. He added that Kazakhstan has three refineries processed 4.13 million tonnes in the period up by 5.4% YoY

ENRC to buys 50% stake in of Xinjiang Tuoli Taihang Ferro Alloy

Interfax reported that the Kazakh holding Natural Resources Corporation Plc is buying 50% of Xinjiang Tuoli Taihang Ferro Alloy Co. Ltd which specializes in ferroalloys for USD 14.5 million.

Xinjiang Tuoli Taihang Ferro Alloy is a major ferrochrome producer in China with production capacity of 120,000 tonnes a year. Most of the chrome used by the company is supplied by ENRC, about 70% of the raw materials used by the Chinese company.

ENRC in a release said that the stake is being purchased from Ma Yunpu, one of the main shareholders of the company. This deal will enable ENRC to strengthen its positions on the ferroalloy market.

Mr Johannes Sittard General Director of ENRC said that "We are inspired by our first acquisition in China, a market we know well and which we hope has good prospects.”

The deal will be closed after approval by the government of the Chinese province where the factory is located.

Jinchuan cuts electrolytic nickel price

China's biggest nickel producer Jinchuan Group Limited announced cut in EXW price for electrolytic nickel by CNY 7,000 per tonne.

Now, price stands at CNY 228,000 per tonne plate shaped and CNY 229,200 per tonne for lump shaped.

(Sourced from MySteel.net)

Latrobe rejects striking workers' offer to return

The Pittsburgh Tribune Review reported that Latrobe Special Steel Co has rejected an offer from its striking steelworkers to unconditionally return to work and resume bargaining, saying that could expose the company to intermittent strikes or other disruptions.

The United Steelworkers Local 1537 on Thursday night offered to return to work immediately under the terms of the expired contract and removed its pickets at the company. The union's offer came after the union voted Thursday night to return to work without the conditions set by the company. A majority of members at the meeting in Latrobe voted to resume working, but Caruso declined to release the vote count. The union's offer did not include a condition that the 360 workers remain on the job under a three month extension of the old contract.

Mr Kevin Caruso president of Local 1537 said "I believed all along, the company did not want to bargain in good faith.”


Mr Caruso added that "We have made this offer to return to work and show we are willing to try to settle differences with the company. Management has rejected this offer, which shows that they care little about their customers and instead appear to be intent on picking a fight with this union and punishing its employees. Our members understand, and management should also understand, that the Steelworkers will continue its struggle until we are able to bargain a fair agreement."

The 360 member local union called a strike at the plant May 1 when the previous labor agreement expired. Significant issues included hourly pay rates, pension and insurance benefits and union efforts to maintain equal standards for newly hired workers. Management withdrew its final offer shortly after the strike began and has yet to present a new offer for the workers' consideration.

Chinese ferrochrome imports during January to March 2008

China imported 142,700 tonnes of ferrochrome in March 2008 up by 9.7% YoY and 1.1% MoM. Import during January to March 2008 quarter has increased by 46.5% YoY to 282,200 tonnes.

However, ferrochrome price still maintained strong uptrend in March 2008. South Africa, Kazakhstan and India contributed 79,000 tonnes, 56,000 tonnes and 44,000 tonnes of ferrochrome respectively in March 2008. The imported resources to some extent relieved domestic short supply.

Ferrochrome imports from different countries in March 2008

In million tonnes

(Sourced from MySteel.net)

SASSDA announces Stainless Steel Awards

The Southern Africa Stainless Steel Development Association announced that this year it will again organize the stainless steel industry’s flagship biennial event The Stainless Steel Awards.

The awards recognize and applaud exceptional achievements in the industry. They are open to individuals and companies involved in the production, conversion, distribution, use or recommendation of stainless steel. The closing date for entries is July 31st 2008.

The success of the campaign and the awards ceremony is attributed to sponsorships from SASSDA members.

2008 National sponsors are
1. Afrox - The largest gases and welding company in sub Saharan Africa and supplier in South Africa.
2. Columbus Stainless - South Africa’s biggest producer of stainless steel flat products.
3. Euro Steel - Stockiest, processors and distributors of Stainless Steel and Aluminum throughout Southern Africa.
4. Fischer Group SA - A member of an international German-based group specializing in tubing.
5. Franke - Local leading manufacturer and distributor of sinks and sanitary products.
6. Kulungile Metals Group - A leader in South Africa’s steel, stainless and aluminium industries
7. Macsteel VRN - Merchandiser and distributor of steel and value added steel products.
8. NDE Stainless – Privately owned providers of stainless steel products in South Africa.
9. Rebuff - Manufacturers of coated and non-woven abrasive products, polishing buffs and polishing compounds.
10. Rimex Metals South Africa – Part of the Rimex International group, experienced in the surface finishing of metals.
11. Schmolz & Bickenbach - Manufacturers, processors and distributors of special steel long products.

2008 Regional sponsors are
1. Metso ND - Stainless steel fabricators.
2. Steloy Castings - The most advanced specialist foundry groups in South Africa.

Vale enters into a leasing contract for a pellet plant

Companhia Vale do Rio Doce announced that it has signed a five year leasing contract involving a pellet plant located in the port of Tubarão at Vitória in the Brazilian state of Espírito Santo of its affiliated company Companhia Coreano Brasileira de Pelotização Kobrasco to be effective from June 1st 2008.

Under the lease contract Vale has agreed to make an annual payment to guarantee POSCO the same level of the current profitability. Vale will consolidate 100% of Kobrasco’s pelletizing operations in its financial statements, which will contribute to simplify and to increase transparency of our operational and financial reporting.

This transaction follows the announcement made in April 30th 2008, related to the leasing of the two pellet plants of Nibrasco. Both transactions are consistent with Vale’s continuous search for opportunities to maximizing shareholder value creation. In these cases we are increasing our exposure to the iron ore business and capturing synergies in the port of Tubarão, which includes the resulting improvement of efficiency of operational assets and processes.

Kobrasco is a joint venture between Vale and POSCO. Both companies hold a 50% stake in Kobrasco which main activity is the production and sale of iron ore pellets. In 2007, Kobrasco produced 4.9 million tonnes of iron ore pellets and had net earnings of USD 38 million.

China in imported record 42.9 million tonne of iron ore in April

China’s latest customs data reveal that China has imported a record 42.9 million tonne of iron ore in April, up by a massive 9.5 million tonne year on year. It said that the April 2008 total is some 4.7 million tonne higher than the previous record, set in February and helps to explain China’s iron ore port stockpiles rising above 61 million tonne for the first time.

Meanwhile, with global steel prices soaring, China’s steel product exports reached 4.8 million tonne in April, the highest monthly total since December. Nevertheless this was still down by 3.2 million tonne year on year. Steel imports of 1.5 million tonne in April were at a similar level to the previous month and down by 0.2 million tonne year on year.

BHPB bid for Rio – China eyeing 10% of BHP - Report

Media reports said that Chinese are becoming increasingly interested in buying a stake in global mining giant BHP Billiton. The Weekend Australian reports said that a state owned or private Chinese company is believed to be mulling taking a 10% share of BHP.

Last month there was speculation that Chinese steel maker Baoshan Iron & Steel was keen on taking a 9% slice of BHP. However, both Baosteel and BHP denied the talk.

In February 2008, Chinese aluminium company Chinalco teamed up with Alcoa to take 12% of Rio Tinto PLC or 9% of the dual listed group’s shares for USD 14 billion.

Fording settles 90% of coking coal contracts for 2008

Fording Canadian Coal Trust announced that Elk Valley Coal has completed negotiations for approximately 90% of its anticipated coal sales for the 2008 coal year.

Fording Canadian Coal said that “If the remainder of the 2008 contracts are settled on similar terms, the average price for the 2008 coal year is forecast to be approximately CAD 275 per tonne for all coal products as compared with an average price of CAD 93 for the 2007 coal year. The average coal sales price may vary from quarter to quarter due to sales mix, including the timing of PCI and thermal coal sales.”

The average price of 2008 calendar year coal sales is forecast to be in the range of CAD 195 to CAD 205 per tonne. The actual sales price received for the calendar year will be dependent on total sales volumes shipped in the year and the timing of sales of lower valued products, including PCI and thermal coal.

Elk Valley Coal has approximately 3.5 million tonnes of carryover tonnage from the 2007 coal year. Approximately two thirds of the carryover is expected to be delivered in the second quarter and the remainder is expected to be delivered relatively evenly over the balance of the coal year.

Geraldton opens dedicated iron ore berth

ABC.net reported that Geraldton's first dedicated iron ore berth has been officially opened.

The AUD 49 million upgrade to Geraldton Port's berth five was completed in late January and the dock has already unloaded over one million tonnes.

The berth's 10 million tonne annual turnover doubles the port's previous capacity.

Ms Alannah MacTiernan planning and infrastructure minister of Western Australia said that the government was committed to enhancing the port, in response to the huge demand from iron ore exporters. She added that "The next major project we're working on at the moment is upgrading the rail unloading facilities and we're working on the business case.”

NTPC looking to buy coal blocks overseas

UPI reported that National Thermal Power Corp is looking to buy coal blocks in Indonesia, Mozambique and South Africa to bridge the fuel supply shortfall.

Mr Ram Sharan Sharma MD of NTPC said that "We have ambitious capacity addition targets and the priority for me is to secure fuel supplies. We are exploring the possibilities to coal mines in Indonesia, Mozambique and South Africa.” He added that NTPC requires about 5 million tons of coal for its projects.

NTPC imports about 2 million tonnes of coal out of its total requirement of 110 million tonnes to fire its thermal power plants. It is looking at buying coal mines abroad that can give up to 20 million tonnes of coal yearly.

NTPC has formed a joint venture firm Coal Ventures International Ltd, with Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd, Coal India Ltd and National Mineral Development Corp to acquire coal mines overseas.

Henan to add 4.8 million tonne of coal capacity this summer

Xinhua reported that central China's Henan province would work hard to raise coal capacity by 4.8 million tonnes in 2008 to ease thermal coal shortfalls this summer.

It's learned that the province would confront the severest electric power shortfalls unseen in recent years in this summer due to the under supply of thermal coal, uncertainties in generating capacity and the Olympics.

Thermal coal inventories in the province have shown a downtrend since middle March with total reserves for power plants lingering at some 2.4 million tonnes, which can sustain the province's power generation for less than 10 days.

It's forecasted that 3.4 million tonnes of thermal coal reserves are the bottom line for the province to maintain normal power supplies, however, inventories at present are far behind the level.

Henan Coal Industry Admins Bureau noted that it will accelerate construction work at new mines to ensure thermal coal supply increases.

PTC to spend INR 3 billion on Indonesian coal mines

The Daily News and Analysis newspaper citing Mr Tantra Narayan Thakur CMD reported that India’s Power Trading Co India Ltd is planning to spend INR 3 billion buying coal mines in Indonesia over the next year.

Mr Thakur said that “We have been working on the foray for the last two years and of late, have also identified a few prospective mines.” He added that “One of the mines is under detailed study.”

The newspaper also said that PTC India will also float a subsidiary in a joint venture with Singapore based Asian Infratech by the end of May 2008 and will invest INR 3 billion as its share of investment.

The paper added that the subsidiary, which will be a special purpose vehicle, in which each company will hold 50% stake, will bid for coal mines in Indonesia.

Chinalco to invest USD 2.15 billion in Peru's copper mine

Aluminum Group of China Chinalco and Empresa Minera del Peru SA signed an exercise contract on May 8th 2008 on copper exploiture at Toromocho in Peru.

As per report Chinalco will pour USD 2.15 billion to exploit the copper mine. It said that the total fund that invested in this project would be afforded by China Development Bank, about 67% in maximum and Chinalco about 33%.

Toromocho copper mine is one of the oversize copper mines to be exploited in the world, which owns about 15 million tonnes of metal resources in equivalence and as much copper as 19% of the total in China. It is expected to yield 2.5 million tonnes of fine copper each year, equaling one third of China's domestic output.

Chinalco have successfully purchased the entire stocks of Empresa Minera del Peru SA with USD 860 million in last August. Empresa Minera del Peru SA is a Canadian company listed in Canada, US and Peru.

(Sourced from Mysteel.net)

Haoning agrees to buy 9.55% stake of Jupiter

China Knowledge reported that Chinese iron ore and steel trader Haoning Group has formed a strategic alliance with Australian iron ore prospector Jupiter Mines Ltd through purchase of a nearly 9.55% stake in the Sydney headquartered company for USD 3.5 million.

The report said that Haoning Group will buy 14.8 million shares of Jupiter via its subsidiary, LSG Resources Pty Ltd out of its strategy to find long term supplies of raw materials for production expansion. After the acquisition, Haoning will become Jupiter's largest shareholder.

A report said that Jupiter will use the proceeds to fund exploitation of its Mt Mason iron ore mine in the central Yilgarn project in Western Australia, as well as to replenish its cash resources to hit USD 8 million.

Natural Resource Partners Q1 revenue up by 28% YoY

Natural Resource Partners LP, which owns and manages coal properties, said Thursday its first-quarter earnings soared 45 percent on higher coal prices, growing production and an expanded product mix. Its revenue rose by 28% YoY to USD 64.1 million as compared to USD 50.2 million a year earlier.

Natural Resource Partners said that its production increased by 7% to 14.5 million tonnes in the quarter, led by the Illinois Basin and the Northern Powder River Basin stretching across parts of Wyoming and Montana.

Q1 result Highlights:

1. Distributable cash flow of USD 34.9 million up by 23% over Q1 of 2007
2. Record revenues of USD 64.1 million up by 28%
3. Record net income attributable to limited partners of USD 25.9 million up by 46%
5. Metallurgical coal accounted for 37% of Q1 of 2008 coal royalty revenues and 28% of production

Mr Nick Carter president & COO of Natural Resource said that "It is an exciting time to be in the coal business. Coal prices continue to improve month over month and since our royalty structure is based on top line sales price and not margin, we benefit proportionally as our lessees' sales prices increase. We believe that world economic indicators point toward higher global coal demand and a supply shortfall, which bodes well for the US coal industry and NRP."

China adds Qingdao Coking to coke exporters list for 2008

China’s ministry of commerce announced on May 5th 2008 that Qingdao Coking & Gasmaking Co Ltd has been added to the list of qualified coke exporter for 2008.

The earlier list covered 55 enterprises, with 39 doing general trade and the rest border trade.

(Source: Foreign trade department under the Ministry of Commerce)

Murchison Metals JV lodges infrastructure proposal

Murchison Metals Ltd announced Oakajee Port & Rail Pty Ltd had lodged its bid to build a deepwater port at Oakajee in Western Australia's mid west with the West Australian Government.

The submission lodged is Oakajee Port & Rail Pty's response to the government's Request for Proposal and has the backing of a multinational consortium and a banking syndicate that includes every major trading bank in Australia.

Oakajee Port & Rail Pty is one of just two groups invited to tender for this project and the government expects to announce its preferred proponent by June 30.

Mr Paul Kopejtka executive chairman of Murchison said that the bid was compelling and financially robust and would deliver an outstanding solution for the infrastructure needs of the burgeoning mid west region. He said that "We are very pleased with the quality and strength of Oakajee Port & Rail Pty's bid and we are very confident it will be recognized for its ability to meet the needs of the mid west and unlock value for the entire state.”

Oakajee Port & Rail Pty in which Murchison and Mitsubishi Development Pty Ltd each have a 50% interest, was established to develop and operate the vital port and rail infrastructure needed by iron ore miners and other potential users.

Adaro energy hopes to earn USD 800 million from IPO

ANTARA news reported that Indonesian energy company PT Adaro Energy may earn up to USD 800 million from an initial public offering its plans to launch in July 2008.

As per report PT Adaro Indonesia is planning to sell 31.7% of its shares, a company director A

Mr Andre Mamuaya director of PT Adaro said that PT Adaro Indonesia is planning to sell 31.7% of its shares. He said that the earnings from the IPO target are at least USD 500 million, but the result could go up to USD 800 million.

Mr Andre said part of the funds would be used to buy the 34% stake held by foreign investors in Adaro Indonesia making Adaro Energy as the sole owner of its subsidiary. It also plans to use USD 200 million of the funds to refinance debt to reduce its debts now totaling USD 750 million.

Adaro Energy has named PT Danatama Makmur as the underwriter for the IPO and UBS AG, Morgan Stanley and DBS Vickers Securities as international sales agents.

Thai Banpu Q1 profit up by 74% YoY

Thai coal miner Banpu BANP BK said that its coal reserves rose to 334.02 million tonnes in the first quarter of 2008 ended March 2008 as compared to 309 million tonne in first quarter of 2007. Its net profit for the January to March quarter surged by 74% YoY to THB 2.07 billion

Banpu in a statement said that it sold 5.44 million tonnes during the first quarter up by 25% YoY, with almost half or 2.66 million tonnes from Indominco mine in Indonesia. It said that sales from its Indonesian mines accounted for 78.5% of coal sales volume in the first quarter.

Indonesia denies reports of coal export quotas

Bangkok Post reported that Indonesia has denied that it will set a quota for coal exports as it wants to reserve the coal for future use.

The reports had prompted rising interest in the country's natural resources from energy hungry China and India.

Mr Simon Sembiring director general of the mineral, coal and geothermal energy department in the energy and mining ministry of Indonesia said that the reports were baseless and the new mining law likely to be passed by Parliament by June would in fact provide more certainty for mining companies.

He said the new law would include a plan to set up a mining watchdog that would oversee state reserves of tin, nickel, copper, bauxite, iron and coal.

Giralia confirms iron potential at McPhee Creek

Giralia Resources NL has confirmed the potential of direct shipping grade channel iron mineralisation from reverse circulation drilling at the McPhee Creek iron ore project in Western Australia.

Previous iron ore exploration at McPhee Creek by Amoco Minerals in the early 1980's outlined a substantial CID outcropping as a mesa up to 3.5 kilometers long.

The initial drilling program by Giralia at McPhee Creek comprised 43 shallow RC holes on a 100 meter by 50 meter pattern testing the central 1.4 kilometer section of the main Crescent Moon mesa.

New drill intersections include 12 meters at 56.1pc iron, 10 meters at 57.2pc, 14 meters at 55.9% with mineralization commencing at surface.

Following completion of data collection and validation, an initial resource estimate will be completed for the central portion of the McPhee Creek mesa drilled to date.