SAIL sets new performance landmarks in 2007-08

Indian steel major Steel Authority of India Limited has announced audited financial results for 2007-08, after they were taken on record by the SAIL board of directors.

High production and productivity, market-driven product mix, substantially higher value added, special steel production, several initiatives towards cost reduction, along with strong demand for steel enabled Steel Authority of India Limited to achieve new financial and physical performance landmarks during the year 2007-08. The highlights are as under
1. All time high annual turnover of INR 45555 crore up by 16% YoY
2. Highest ever annual PBT of INR 11469 crore and PAT of INR 7537 crore up by 21.7% and 21.5% respectively.
3. 37% dividend to shareholders including 19% interim dividend

The performance for the financial year was buoyed by stupendous performance in January to March 2008 quarter
1. All time high Q4 turnover of INR 15530 crore up by 35% YoY
2. 25% YoY higher Q4 PBT of INR 3665 crore

SAIL Board has recommended it’s highest-ever dividend at 37% on paid up equity amounting to over INR 1,500 crore for the company's shareholders for the year 2007-08. This includes the 19% interim dividend paid in February 2008. Previous highest dividend payout was 33% for the year 2004-05.

Commenting on the company's performance, Mr. S.K. Roongta, Chairman, SAIL, said: "SAIL has proved its fundamental strengths once again, the most significant of which is its committed workforce – ever eager to attain new peaks in performance and to meet the growing demand for steel in the country.

The production highlights for 2007-08 are as under
1. Highest ever saleable steel production of 13 million tonnes
2. Capacity utilization of 118%
3. Special quality and value added products production of 3.5 million tonnes up by 30% YoY.
4. Over 30 new products were developed for special applications during the year
5. Achieved record production through the energy-efficient continuous casting route at 8.9 million tonnes, showing a growth of 7% and capacity utilization of 128%
6. The special steels plants of SAIL also recorded highest-ever saleable steel production of 0.513 million tonnes up by 13% YoY
7. For the first time, production by SAIL's captive collieries crossed the million tonne mark up by 47% YoY
8. Best ever sales of 12.3 million tonnes during the year with substantial growth in sales of value-added products like long rails of 130/260 meters at 56%, plates at 8%, HR coils at 7% and medium structural 20%.
9. For the first time, SAIL's marketing network covered all districts in the country during 2007-08, with addition of about 1,200 new dealers. SAIL thus became the first steel company in the country to have a distribution network covering each and every district.
10. SAIL achieved lowest-ever energy consumption at 6.95 giga calories per tonne of crude steel and coke rate at 533 kgs per tonne of hot metal in 2007-08 by fine-tuning operational efficiencies.
11. Thrust on cost reduction continued, resulting in a saving of over INR 300 crore.

Police secures POSCO war zone after recent clash

Reuters reported that hundreds of armed police were deployed at the site of POSCO's planned steel plant in Orissa after clashes between supporters and protesters over the project.

The report cited Mr Pradeep Kapoor a senior police official as saying that "The clash occurred in Gobindpur village, where residents are divided over the project."

Villagers however said that at least 3 people were injured in the clashes. They claim it could displace 20,000 people, while the firm and government say it will create jobs in the state.

Meanwhile, Mr Shashanka Patnaik a POSCO spokesman said that "we want the whole project to happen in a peaceful manner and through continuous dialogue. We are ready to discuss with all the people who are opposing and sort out all the differences mutually."

POSCO had earlier said that it could not begin construction work supposed to begin on April 1st 2008 due to procedural delays. It had said that the problems related to obtaining an iron ore mining lease and forest land needed for the plant.

It may be noted that frequent protests have slowed the POSCO project and the government has so far been able to acquire only about a quarter of the required 4,000 acres land.

RINL inaugurates coke oven battery No 4

It is reported that Mr PK Bishnoi CMD of Rashtriya Ispat Nigam Limited lighted up the newly built fourth coke oven battery in Vizag on May 15th 2008.

There are 67 ovens of 7 meter height. It is built with an investment of INR 300 crore.

It is designed capacity to produce 0.8 million tonnes of coke per year.

SAIL develops 30 new products in 2007-08

Indian steel major Steel Authority of India Limited has announced that Over 30 new products were developed for special applications during 2007-08.

Some of the prominent ones are listed below

1. High corrosion and earthquake resistant TMT rebars for construction

2. High tensile plates for hydel power projects and high yield strength SAILMA 550 HI plates

3. SUP-11A/9 grade spring steel for auto sector

4. Environment-friendly C-5 coated CRNO sheets

5. Armour steel plates for the defense sector

6. Boron treated aluminum killed low carbon steel, vanadium micro alloyed rails for application in tracks for higher axle load at high speed

7. Low carbon HR coils with titanium for extra deep drawing

Auto component makers calls for reduction in alloy steel prices

BL reported that the price cut announced by Indian steel makers last week has not helped auto component manufacturers as they are mostly using alloy steels for making components.

Automotive Component Manufacturers Association of India vide a release said that “Auto component industry largely utilizes alloy steels for manufacturing high value added and safety critical components such as drive, transmission and steering systems, chassis and suspension parts and a variety of engine parts. The steel is used initially for making forgings or alloy steel castings, which is then machined to produce fully finished auto components.

Mr Sanjay Labroo president of ACMA said that “These alloy steels have not been impacted by the price cuts.”

Mr Srivatsaram chairman of ACMA South has called for an immediate reduction of Customs Duty on all grades of alloy steel to zero and to suspend export benefits on exports of alloy steels.

Indian core sector grows at 9.6% in March 2008

It is reported that, increased production by steel and cement companies pulled up the index for the 6 infrastructure industries to 9.6% in March 2008 against 10.5% growth in March 2007.

This, however, is the highest monthly growth rate in the core sector industries registered during fiscal 2007-08 indicating that despite a 6 year low industrial production growth rate of 3% during the month, investment activities have accelerated evident from higher consumption of core sector products.

Finished steel production grew by 21.8% during March 2008. In terms of quantity, finished steel production stood at 6.10 million tonnes during March 2008 as against 5 million tonnes in March 2007. But growth in finished steel production fell sharply to 5.1% in 2007-08 as against 13.1% in 2006-07.

Cement output rose by 9.3%. Cement output was 16.89 million tonnes as against 15.45 million tonnes in March 2007.

Production of crude oil actually went down in March 2008 to 0.3% as against a growth of 3.2% in March 2007. Output of petroleum refinery products remained stagnant at last year’s level, while electricity generation went up by only 3.6% during March 2008 as against 8% in March 2007.

Coal production improved by 9.3% during March 2008 as against 10.6% in March 2007. For full 2007-08, the 6 core sectors recorded a sharp fall to 5.6% as compared with 9.2% in 2006-07. Cement output grew by 8.1% as against 9.1%.

Growth in petroleum refinery output also went down substantially to 6.5% during 2007-08 as against 12.9% in 2006-07.

Electricity generation and coal production increased by 6.3% and 6%, respectively in 2007-08 as against 7.3% and 5.9% during 2006-07.

Ankit Metal unveils expansion plans

It is reported that Kolkata-based Ankit Metal & Power is planning to expand capacity at its existing unit in West Bengal and set up a new unit at Jamshedpur

Mr Ankit Patni MD of Ankit Metal & Power said that "We have huge future expansion plans to double our existing capacity in the West Bengal unit and soon to propagate another vast project in the steel city Jamshedpur."

It will invest INR 250 crore to double the capacity of the Bankura unit in West Bengal to 200,000 tonnes per annum and around INR 750 crore will be invested in a new plant, to come up at Jamshedpur with a capacity to produce 300,000 tonnes per annum of steel.

It has recently invested around INR 120 crore to set up a fully integrated steel plant to produce 100,000 tonnes per annum rolled products with captive production of sponge iron, billets and power at Jorehira of Bankura district. Prior to the expansion, the company had a sponge iron unit operational since October 2005.

TATA Steel rating unaffected by INR 20 billion debt – S&P

Standard & Poor's Ratings Services said that the INR 20 billion debt raised TATA Steel Limited in the domestic bond market by itself does not pressure the company's ratings.

S&P said that as clarified by TATA Steel, proceeds from the issue are entirely for refinancing existing borrowings, including debt raised at the Corus Group Plc level.

It added that in relation to the incremental debt required for funding TATA Steel's ambitious expansion plans in India and potentially softening demand conditions in Europe and North America, medium term pressure persists which may result in overall weakening profitability and cash flows.

S&P has a 'BB' rating with stable outlook on TATA Steel.

Inflation to fall to 6% in four to six weeks – ASSOCHAM

ASSOCHAM Business Barometer’s Inflation Outlook has revealed that majority of the corporate leaders are expecting the inflation rate to fall down to 6% level in view of the fiscal, monetary and administrative measures taken by the government and the normal monsoon forecast while the crude oil prices may remain an area of concern.

A quick ABB Survey of 240 CEOs and CFOs across various sectors has found that the industry outlook on inflation situation is optimistic as 68% of those questioned believed that the inflation rate would subside and slip to 6% in next 4 to 6 weeks.

Around 68% of the respondents felt that the prices mounting on food grains shall relieve in next 1 or 2 months. This is in view of the normal monsoon announcement by the weather department and 4% rise in food grains production in the fiscal 2008. The CEOs also believed that the global food crisis shall not remain so hot by the next quarter. But a high number of them were concerned over the escalating international crude oil prices.

Mr Venugopal N Dhoot president of ASSOCHAM said that "The strong measures taken by the government and the industry’s co operation should help to ease the pressure on prices. The speculative money driving inflation in commodities is also expected to exit the market soon."

While the government has not passed on the full burden of the oil prices to the consumers, its financials can come under severe strain if the similar situation persists, warned 95% of the respondents. Crude oil prices would continue to drive the inflationary pressures in coming months even if the food and commodity prices ease, about 92% of the CEOs stated.

The industry leaders expressed their faith in the strong measures taken by the government in curbing inflation. As many as 85% of them said that the fiscal and administrative measures would start showing their impact and the wholesale price index shall drop down in next two months time.

The fiscal steps taken by the government included abolition of import duty on steel, fresh ad valorem duty on cement priced above INR 250 per 50 kilogram bag. The tariffs have been cut to zero, for rice, wheat, pulses, edible oil and maize. The import duty has been slashed to 7.5% on hydrogenated oils and vegetable oils and to 30% on butter and ghee, and withdrawal of 4% additional countervailing duty on edible oils.

The cement and steel industry, where high input cost has been driving the prices northward, have announced voluntary price cut in co operation with the government’s efforts of curbing inflation.

Nano suppliers ask TATA Motors for price hike

BS reported that pressure is growing on TATA Motors' ability to hold the price tag of INR 100,000 for the Nano with leading auto component suppliers saying that they have approached the company for a price increase. With steel prices soaring, TATA Motors recently set up a special team to look at ways and means to control the car's manufacturing costs.

Costs have risen substantially since December 2007 and the recent cut in steel product prices has brought little relief. Most component manufacturers believe that since the car is yet to go into production, they are optimistic that TATA Motors will reconsider component prices.

Delhi based Sona Koyo, which is supplying steering systems for the Nano and Minda Group, which supplies electrical switches have confirmed that they and other component suppliers have suggested a price rise to TATA Motors. Mr Surinder Kapoor CMD of Sona Group said that "All component suppliers to the Nano are reassessing the price hike and our message will be conveyed to TATA Motors. We have not heard anything from TATA Motors yet. "

Mr NK Minda chairman of Minda Group said that "We are holding discussions with TATA Motors. They have not agreed to our hike in prices but we are optimistic that prices should be revisited once production of the car starts. The hike so far has been unbearable."

The report cited a TATA Motors spokesperson as saying that "Like any other company, the terms between TATA Motors and its suppliers are confidential."

Steel accounts for 15% to 20% of the cost of an entry level car and about 500 kilogram of steel is used. Government intervention saw prices of hot and cold rolled coils, which are used to make the outer body of the car, being lowered last week by INR 500 to INR 750 a tonne. Prices of alloy steel, which accounts for over 60% of the total steel used in a car, have not been cut.

Indian Railways to invest INR 200,000 crore in 11th Plan

Indian Railways has decided to invest INR 200,000 crore for the modernization, capacity increase and completion of new projects during the 11th Five Year Plan.

Mr Lalu Prasad Yadav union minister of railways said that Indian Railways have decided to invite public private partnership in the non core sector for setting up of logistic parks, wagon investment schemes, wagon leasing schemes and also to participate in the setting up of more than 7000 agricultural outlets throughout the country. He added that Indian Railways would encourage the introduction of PPP model for setting up of new factories for production of wagons, coaches and locomotives.

Mr Yadav said that Indian Railways is going to upgrade 26 major railways stations as world class stations throughout the country including 4 metropolitan cities. There will be separate departure and arrival facilities for passenger to decongest existing crowds at station complex besides other modernized passenger amenities like world class waiting rooms, multi level parking, malls etc.

He further said that after earning a surplus of INR 25,000 crore during the year 2007-08 and with its operating ratio of 76%, Indian Railway have shown achievement which is much better than several top fortune 500 world companies. He said that after taking new initiatives in freight sector, Indian Railways have carried 238 million tonnes of additional freight and earned more than INR 14,000 crore additional freight revenue. In view of the increasing demand for freight and to reduce the congestion on existing railway lines, Indian Railways have decided to construct Dedicated Freight Corridors.

Mr Yadav concluded that "Our vision is to make Indian Railways world’s number one railway network and the days are not far away when the Indian Railways will be the best railways in the world."

Vedanta EBITDA rises to record USD 3.01 billion

Vedanta Resources Plc has reported an 11% YoY rise in full year EBITDA, beating market expectations, boosted by higher production from its key divisions and the contribution from its new iron ore business. EBITDA rose to a record USD 3.01 billion in 2007-08 from USD 2.70 billion in 2006-07, exceeding the USD 2.81 billion consensus of 10 analysts. Sales grew by 26% YoY to a record USD 8.2 billion.

However, EBITDA from its non iron ore businesses was lower by USD 278.2 million, mainly due to the 11% appreciation of the Indian rupee against the US dollar, lower zinc prices and lower tolling and refining charge realizations. It also had a USD 134.2 million hedging loss but said it has no strategic hedges in the current year.

Mr Kuldip Kaura CEO of Vedanta Resources said he expects a significant increase in production growth across all metals in the current year and anticipates costs declining even amid industry wide inflationary pressures. He added that "The next year financial year will be a step change in production as we move towards out 1 million tonne target. Almost all of the company's projects are on track to meet that target."

Mr Anil Agarwal chairman of Vedanta Resource said that "The abundance of bauxite and coal in India, combined with our proven track record in project delivery, presents an exciting growth opportunity."

Vedanta said that it anticipates a positive resolution soon regarding the acquisition of the Indian government's stakes in BALCO and Hindustan Zinc. It is also hopeful of a positive early resolution concerning environmental clearances for the bauxite mines at the Lanjigarh alumina refinery.

NLC gets TN government nod for 1,000 MW power project

Neyveli Lignite Corporation Limited said that it has received an approval from the Indian government to develop a 1,000 MW coal based thermal power project at Tuticorin in Tamil Nadu at an estimated cost of about INR 49.10 billion.

Neyveli Lignite said in a regulatory filing that it will implement this project through NLC Tamil Nadu Power Limited, a JV company of Neyveli Lignite Corporation and the Tamilnadu Electricity Board.

India to maintain economic growth despite pricing curbs

Indian government is not sacrificing growth to control inflation, as the economy needed to keep growing at 8% or more.

Mr Montek Singh Ahluwalia deputy chairman of India's Planning Commission told reporters that "We are not sacrificing growth to control inflation. High inflation will kill the medium term growth process. It is important to control inflation while keeping growth at 8%.”

He said that the Indian Economy is expected to expand by 8% to 8.5% range in the fiscal year ending March 2009. He said "We have consistently said the growth target laid by government is 8% to 8.5%. I will not be surprised if it is at the lower end of the range."

Soaring inflation, which hit a 3-½ year high of 7.61 percent in late April, is proving to be a policy headache for India, forcing the government and the central bank to announce a slew of measures to calm prices.

L&T and GE Energy join hands for power control systems

Indian construction major Larsen & Toubro announced that it has entered into a partnership agreement with GE Energy, a unit of General Electric, for power plant control systems in India.

Rail Wheel Factory Bangalore bags safety award

Rail Wheel Factory Bangalore has won the prestigious “Golden Peacock Award for Occupational Health & Safety – 2008”

The award will be presented at a special function during the Global Convention on climate change on May 31st 2008 at Palampur in Himachal Pradesh.

Nalagarh Steel to set up rebar mill in HP

PTI reported that Nalagarh Steel Rolling Mills Private Ltd will set up a new steel rolling facility in Himachal Pradesh with an investment of INR 25 crore. It manufactures TMT steel bars and sell it under the brand of DevBhumi and this would be the second such facility at Nalagarh.

Mr Ravinder Bansal MD of Nalagarh Steel Rolling Mills told reporters that "The new facility, which will be soon set up, will enable us to meet the emerging requirement for steel from the industries of Haryana, Chandigarh and some parts of Punjab.”

He said that "Presently, the demand for the steel is 7,500 tonnes per month against our total production capacity of 6,000 tonnes per month. With the commissioning of new plant, the total manufacturing capacity of the company would reach 9,000 tonnes per month.”

With the setting up of this new plant, it expects over 70% jump in its total turnover at INR 300 crore in 2008-09 from INR 175 crore in 2007-08.

TATA may sell towers unit to SERI Quippo Infrastructure Equipment

Bloomberg reported that TATA Group may sell 49% of its phone transmission towers business to a unit of SREI Group for about USD 1.9 billion.

As per report, SREI Group’s Quippo Infrastructure Equipment Limited is among the leading bidders for the stake in Wireless TATA Telecom Infrastructure that owns about 13,500 transmission towers.

The report added that Citigroup Inc and Lehman Brothers Holdings Inc. are advising TATA while JM Financial Ltd. is advising Quippo.

USW asks Esmark to repudiate Wheeling Pittsburg pact with Essar

The United Steelworkers have demanded that Esmark Inc repudiate the agreements that it recently entered into with Essar Steel Holdings Limited. In a letter to the company, the USW asserted that the agreements with Essar are in direct violation of the company's collective bargaining agreement with the union.

The USW contends that Esmark has breached the legal protections granted by its Right to Bid Clause by entering into the memorandum and closing on related financing without first providing the Steelworkers with appropriate notice and an opportunity to bring forward an alternative proposal. The union indicated in its letter that it believes that Essar is complicit with this breach.

Mr David McCall, Director of USW District 1, which covers Ohio where many of the Esmark plants are located, said that "The USW's rights under the Right to Bid clause clearly prohibit the Company from entering into these agreements and we will take whatever action is necessary to protect these rights. We used our contractual protections to prevent CSN from taking over Wheeling Pitt, which opened the door for Esmark to acquire the Company. You would think they would have learned something from that transaction."

USW added that “Under another section of the USW labor agreement, the Successor hip Clause, Esmark and Essar cannot close the proposed transaction until Essar has entered into a collective bargaining agreement with the USW and the USW has told the company that it will use that power to block the Essar deal.”

Mr Leo Gerard, President of the USW said that “It is quite frankly offensive that after the support Esmark received from the Steelworkers to get control of the company in the first place, that they would simply ignore the agreement they made with us.”

According to the company's recent Form 8K, filed with the Securities and Exchange Commission on April 30th 2008 Esmark entered into a memorandum of agreement and other understanding with Essar that would result in the company's eventual sale to Essar. These agreements include a clause which would obligate Esmark to pay Essar a USD 20.5 million break fee and various other payments in the event the company agrees to sell itself to another entity.

Brazil steel industry ready to handle growing demand – IBS

According to Mr Marco Polo Mello Lopes executive VP of Brazilian steel institute IBS, Brazilian steel industry is ready to supply the country's strong demand for consumer goods for years to come.

Mr Mello said that “There is no need to worry about a possible shortage of steel in the market despite consumption growth and rising raw material prices. The steel industry in Brazil is working with a capacity 60% above the current demand.”

Mr Lopes during a press conference said that apparent consumption for steel manufactured goods in Brazil will be 13.7% higher in 2008 compared to 2007. At the end of last year, IBS was forecasting just a 10% increase. Meanwhile Mr Lopes said the industry in Brazil is expecting production growth of 11.4% in 2008 with semi finished products accounting for 55.3% of the total.

IBS's long range steel consumption projection for 2015 is 39.8 million tonne per year or 213kg per capita versus 22 million tonne and 129 kg per capita in 2007. The figures represent significant growth by Brazilian standards but are still low compared to countries such as South Korea which consumes 1,051 kg per capita, Spain at 696 kg per capita and the United States at 424 kg per capita.

The most important consumption drivers pulling the economy in 2008 and in years to come will be the civil construction, automobile and capital goods sectors, Lopes said. In 2007, construction accounted for 30.0% of total steel consumption, the automotive sector 26.8% and the capital goods market 20.8%.

Mr Lopes said that "We have an optimistic message and are happy to say that we are in a period of sustained growth. After 26 years of unaltered steel consumption we are now ready for this challenge."

Venezuela signs LoI with Brazilian Andrade Gutierrez for steel plant

It is reported that Venezuela plans to build a 1.5 million tonne per year steel plant with the help of a Brazilian company by fourth quarter of 2011.

Venezuela's Ministry of Basic Industry and Mining signed a letter of intent with Brazilian construction company Andrade Gutierrez to build the plant in the southern state of Bolivar.

Mr Rodolfo SanzMIBAM Minister said "This letter of intent will serve to put into motion the construction and financing of the new National Steel Company (Siderurgica Nacional) to be located in Ciudad Piar, in Bolivar state.”

Mr Sanz added that the new plant would work in complementary fashion with recently renationalized Sidor steel to produce steel micro alloys for the military and construction sectors that Sidor currently does not manufacture.

He added that "As a result of this project, Venezuela will increase its annual liquid steel output by 6 million tonnes, as well as be in a position to manufacture a whole series of products to spur the development of the domestic steel industry.”

Japanese automakers not able to pass steel prices to users

Platts reported that Japanese automakers are finding it difficult to pass on increased prices of steel, while steelmakers continue to press automakers to shoulder the JPY 30,000 per tonne rise in the cost of steel production.

A spokesman for Honda Motor said his company had no plans to raise car prices. He said that "It is not that easy. We have to see the car market trends and we are seeing difficult times ahead adding that his company was still in negotiations with the Japanese steelmakers for annual prices of steel sheet used for car bodies.

Japanese local press reported that a major automaker gave into the request of a steelmaker to raise prices of steel sheet by JPY 30,000 per tonne for shipments from April. Automakers Toyota Motor, Honda Motor and Nissan Motor, and steelmakers JFE Steel and Sumitomo Metal Industries, however, all said that negotiations were still continuing.

Steelmakers said that stalling price negotiations was not affecting their shipments and automakers would continue to receive the steel they need on time this month.

Steelmaker officials said they had told their customers that costs of steelmaking have risen by JPY 30,000 per tonne on average this year, on the back of surging iron ore and coal prices.

CMA acquires Meretec Limited

Metal recycling group CMA Corporation Limited announced that it has entered into a conditional agreement to acquire UK based Meretec Limited.

Meretec Limited is the developer and owner of the de zincing technology that is currently used under license at CMA’s plants in Melbourne and Chicago. The patented Meretec Process recycles galvanized steel, removing and recovering the zinc coating from the metal to produce clean black steel and high grade zinc particulate.

Under the terms of the proposed acquisition, CMA would purchase 100% of the issued capital of Meretec Limited for a total purchase price of AUD 30 million. The acquisition will be settled through the issue of 37,500,000 fully paid ordinary shares in CMA Corporation Limited at an issue price of AUD 0.80 per share. The shares will be held under escrow for a two year period from their date of issue.

The acquisition is subject to satisfactory completion of due diligence, documentation and to any regulatory approval that may be required.

Mr Doug Rowe MD of CMA said that discussions were underway with a number of overseas companies in relation to licensing and joint venture proposals. He said that “The backing of CMA will take the Meretec business to a new level, allowing it to leverage our established international trading network and relationships. This transaction opens up abundant opportunities for us and we expect Meretec will become a very significant contributor to group earnings.”

Indonesia sees PT Krakatau sale as strategic move

Reuters reported that Indonesia is looking for a strategic investor for state owned PT Krakatau Steel and will invite South Korea's POSCO to take a stake.

Mr M Lutfi chairman of the state investment agency told reporters that "Strategic sales are more suitable to double the company's capacity. Besides, conditions are not so favorable for IPOs. The steel industry is very competitive, which forces us to strike an alliance with global steel players."

He said that several potential strategic investors have already expressed an interest in Krakatau Steel, including ArcelorMittal and BlueScope Steel Ltd. He added that the agency is also inviting POSCO to participate in the privatization of Krakatau Steel.

The government scrapped a memorandum of understanding to sell Krakatau Steel to Ispat International NV in 1998 following protests over the price, which was seen as too low, and the lack of competitive bids. The government wants to keep a majority stake in Krakatau Steel, which produced 1.8 million tonnes of steel products in 2007, or 30 percent of Indonesia's total steel demand.

Krakatau Steel with assets worth an estimated IDR 11 trillion (USD 1.18 billion), is one of 37 state firms slated for privatization to help fund a widening budget deficit. While the government has considered an initial public offering for the Java based steel firm, the head of the country's investment board said that it would be better to find a strategic investor who could help it to expand.

Indonesia is aiming to raise IDR 500 billion from privatization, according to the revised 2008 budget, down from an earlier target of IDR 1.5 trillion.

Cascade Steel workers initiate work slowdown

The Oregonian reported that workers at Schnitzer Steel’s Cascade Steel Rolling Mills Inc in McMinnville in US have organized a work slowdown at the foundry today to protest the company's position on a new collective bargaining agreement.

Mr Joe Munger president of the United Steel Workers local representing the workers said that the melt shop, where about 20 people work each shift, was shutting down shortly after 3PM and will restart at 3 AM on Saturday when the next shift arrives.

Mr Munger said the union and the mill had a win win contract ready for a vote until last week, when the company insisted on dropping a provision it had already agreed for creating a fund of about USD 50,000 to USD 60,000 a year to cover lost pay of union members who go for training on union matters such as the grievance procedure.

Mr Munger said that “On Thursday, nearly 400 members of Local 8378 turned down the company's latest contract offer by an overwhelming margin and very unhappy. Members are ready to strike but they took Friday's job action to express their dissatisfaction with the company.”

Nucor to raise plate price for June

Nucor has announced to add its carbon steel plate prices by at least USD 270 per ton effective from June 1st 2008.

The main reason is due to continued strong demand and soaring raw material costs. Consequently the price of A36 medium plate is expected to be around USD 1,300 per ton.

Demand for plate remains strong, especially for shipbuilding. The shipbuilding boom is fueled primarily by robust global demand.

(Sourced from YEIH.com)

Harsco completes USD 450 million bond offering

Worldwide industrial services company Harsco Corporation announced that it has successfully completed a bond offering of 5.75%, 10 year senior notes totaling USD 450 million. The notes were rated A3 by Moody’s and A- by both Standard & Poor’s and Fitch.

Harsco intends to use the proceeds of the offering to reduce its borrowings under its US and euro commercial paper programs and for other general corporate purposes.

Mr Stephen J Schnoor senior VP & CFO said that “We are delighted by the strong investor demand for this offering. This successful transaction leverages the current bond market’s positive momentum to further improve our liquidity and enhance our strong financial position.”

The managing underwriters of the offering were J P Morgan Securities Inc, Citigroup Global Markets Inc and Greenwich Capital Markets, Inc.

McMinnville steel workers reject contract and call for strike

It is reported that workers at Cascade Steel Rolling Mills Inc in McMinnville voted down the company's most recent contract offer and authorized its union to call for a strike.

Mr Joe Munger president of the United Steel Workers Local 8378, declined to release the vote tally. But he said that the local had 398 members voting, for about 90% turnout and that they voted overwhelmingly against the contract.

Mr Munger said that a key sticking point was what he described as union strengthening language that the company wanted to dilute at the last minute. He added that he expects the company to call him Friday morning, and that he hopes to resume contract talks.

Cascade Steel is a subsidiary of Schnitzer Steel in Portland. Company officials were unavailable for comment Thursday.

ArcelorMittal gets approval for issuing 15 billion shares

ET reported that shareholders of global steel giant ArcelorMittal have authorized the company's board to issue fresh shares worth an estimated USD 15 billion to finance future acquisitions.

ArcelorMittal shareholders approved the proposal to issue 147 million fresh equity shares, representing about 10% of its outstanding share capital, worth about USD 14.3 billion at the current share price of USD 97.23.

Authorization for issuing shares comes along with power to limit or cancel preferential subscription rights of existing shareholders for a period ending on November 5th 2012.

ISRI warns of increase in theft in US due to surge in scrap prices

City county and state governments are warned to be on the lookout for a new wave of material thefts. The Institute of Scrap Recycling Industries Inc, US trade association for the scrap recycling industry announced that it is seeing an increase in the theft of ferrous infrastructure metals, such as manhole covers and sewer/storm water grates in the past few weeks, joining the list of other metal materials that have been targets of thieves for several months.

Mr Chuck Carr vice president of member services of ISRI said that "Government agencies, police and the public should be on alert that the metal theft epidemic that we have been experiencing for the past two years has now apparently spread to ferrous materials.”

Mr Carr said that “ISRI has worked hard over the past two years to develop tools to help law enforcement fight material theft crimes and to educate stakeholder groups about the need for comprehensive efforts to solving this problem. The best place to stop a metal theft crime is to stop it before it occurs. Loss of infrastructure metals not only causes a significant financial burden to our communities, it can create serious safety problems for the public at large."

Mr Carr said that “ISRI maintains a Theft Alert System that allows the association to notify scrap yards when material theft is reported to the association. This tool, available free to any law enforcement agency, is vitally important to help recyclers identify stolen material.”

Mr George Adams president of SA Recycling said that "It is nearly impossible to tell the difference between stolen material and legitimate material that comes to a scrap yard unless you know to be on the lookout. Despite the recent rash of theft, stolen material makes up a very small percentage of the material that comes to scrap yards each day. ISRI developed its theft alert system to help police and recyclers identify both the material and the thief."

Mr Adams said that “In the past two years, thieves have targeted a variety of nonferrous material primarily copper, bronze and aluminum. ISRI's theft alert system has received reports of stolen materials as diverse as cemetery urns, copper wiring from rural irrigation systems, and bleachers from ball fields. Recently, the system has begun to receive reports of other target materials. In addition to ferrous metal materials, the system has received reports about the theft of newsprint, cardboard and plastic milk crates.”

He added that “In addition to its theft alert system, ISRI provides a variety of other tools aimed at reducing material theft. The industry created recommended practices for reducing the risk of accepting stolen materials almost two years ago long before the crime became a prominent problem. Those practices include establishing cooperative relationships with police and victims, training police on identifying possible stolen material, working with victims groups to help reduce the risk of theft, improving record keeping and taking identification of sellers to help police track thieves and the materials they steal. The association has also become a member of the National Crime Prevention Council.”

Mr Adams said that "The scrap recycling industry recognizes that it is a stakeholder in reducing material theft. We are working hard to be a part of a solution to a community wide problem."

H beam inventory of Tokiwakai drops to lowest levels

Tokiwakai Group, the domestic distributor of Japan Nippon Steel, said that its H beam inventory has decreased to 209,700 tonnes in the end of April 2008 and the current inventory is at the lowest level in the past twenty years.

Nippon Steel said that the H beam demand in April 2008 is slower than that in March 2008 and therefore Nippon Steel intended to maintain its H beam price for its domestic distributor.

(Sourced from YEIH.com)

Outokumpu to invest EUR 10 million in its UK facilities

Thomson Financial reported that Outokumpu Oyj will spend EUR 10 million in its Long Products finishing facilities in Sheffield in the United Kingdom to widen its offering to end users.

CHS prices set to raise in Taiwan

Taiwan’s Chung Hung Steel is expected to raise its domestic prices for June amid strong international pricing and rising raw material costs.

As per report CHS is likely to increase its price of hot rolled product by TWD 1,500 per tonne.

A dealer anticipated that the new hot rolled price will hit TWD 28,000 per tonne from TWD 27,000 per tonne.

Taiyo Koko start production of vanadium metal

It is reported that Kobe based molybdenum and vanadium maker, Taiyo Koko starts vanadium metal production.

As per report Taiyo Koko starts test production as early as in the autumn after introduction of electron beam furnace at Ako plant in Hyogo for around JPY 600 million. It said that the firm tries to improve the cost structure and production technology through the own production though the firm now consigns the production to nonferrous smelter.

voestalpine publishes cash settlement offer for BOEHLER-UDDEHOLM

voestalpine AG announced that it has set the amount of reasonable cash settlement payment for the squeeze out of BOEHLER-UDDEHOLM AG at EUR 70.26 per share.

voestalpine AG said that the cash settlement contains the accumulated profits attributable to each individual share for the 2007 business year and the 2008 short business year from January 1st 2008 until March 31st 2008. Therefore, no separate payment of any dividends is contemplated.

Major electric furnaces in Japan post lower profit in 2007

JMB reported that fourteen electric furnace steel makers out of major 15 makers posted lower recurring profit for the year ending March 2008 from previous year while Yamato Kogyo posted higher profit.

The report said that nine of them posted more than 25% lower profit when they failed to cover higher cost for ferrous scrap and ferroalloy through the price hike. Some makers lost money for January-March. Many of them expect lower profit for the year ending March 2009.

ILZSG reports market surplus for zinc

According the latest report by the International Lead and Zinc Study Group, Zinc reaches 47,000 tonne surplus in the first two months of the year and consumption looks to have fallen in both Europe by 5.3% and the US by 7.1% while remaining flat in Japan.

ILZSG said that demand growth overall, however, remained relatively flat on a year on year basis, rising just 0.3% to 1.839 million tonnes backed by strong growth in China up by 6.3%, which accounts for roughly a third of total global demand.

Sidenor To become holding company of Nucor

It is reported that Greek metals producer Sidenor a part of the Viochalco Group of companies will become a holding company as it will transfer its metallurgical related assets to the new company that will be created along with US steel company Nucor Corporation.

A sources said that Sidenor is seen contributing its basic production units in Greece and in Bulgaria as well as its participation in Sidma Corp. a company active in buying and selling metals and in processing steel plates.

The source added that the company will also acquire a controlling 66% stake in the new entity that will be formed along with Nucor, same sources say. The company will not sell its 78% participation in Cortinth Pipeworks.

According to the same sources, on the other hand, Nucor Corporation will acquire a 34% stake in the new company, paying for its stake in cash.

AK Steel announces 2008 sons and daughters scholarship

AK Steel is continuing a longstanding tradition this year by awarding college scholarships to sons and daughters of company employees. The awards recognize outstanding academic achievement, leadership and community involvement.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "Earning an AK Steel scholarship speaks volumes about the students and families associated with our company. We congratulate all of our recipients for their achievements and applaud them for demonstrating the values that help make AK Steel a successful company."

The scholarships are funded by the AK Steel Foundation and are worth a maximum USD 20,000 each. The Middletown, Ohio Community Foundation independently selects each recipient.

NanoSteel appoint Mr Quinlan as VP sales and marketing

NanoSteel Company, a leader in the development and commercialization of nanostructured steel alloy surface technologies for industrial applications announced the addition of Mr Michael Quinlan as vice president, sales and marketing. He will be based at NanoSteel's corporate headquarters in Providence, R.I. and lead all sales and marketing activities for the company's portfolio of Super Hard Steel coating, overlay and wear plate solutions.

Mr Quinlan has more than 25 years of experience in nuclear, hydro and fossil power generation covering a wide range of roles including sales management, operations, regulatory compliance, project management and manufacturing.

Mr Dave Paratore president & CEO of NanoSteel said that "Mr Michael brings a wealth of business expertise to NanoSteel's senior management team. His executive leadership skills and sales and marketing experience will help NanoSteel strengthen relationships with its current customers and also develop new opportunities to grow our business."

ArcelorMittal's workers lose share of profits

Nwitimes.com reported that hourly workers at ArcelorMittal domestic mills in US will not receive profit sharing form USD 2.37 billion profit in first quarter of 2008.

The report cited Mr Matt Beckman, secretary to the grievance committee of United Steelworkers Local 1010, which represents hourly workers at Arcelor Mittal Indiana Harbor East plant in Burns Harbor as saying that "Profit sharing pool is zero. The pool is based on the company's US results. The steelworkers are very upset by the news.”

As per report, the profit-sharing pool for ArcelorMittal USA is established by multiplying a variable percentage by its, not the corporation's EBITDA at various thresholds of profitability. There is no profit sharing if the amount per ton falls under USD 24.99. For the quarter, the unaudited Adjusted EBITDA per ton was USD 19.67

The report cited Mr Michael Rippey CEO of ArcelorMittal USA as saying that the company's first quarter financial results are significantly below expectations due to the continuing escalation in raw material prices, delays in raw material receipts and our inability to achieve planned operating reliability. He advised that "In spite of the issues experienced in the first quarter, we still have an excellent opportunity to achieve future quarterly payouts if we work safely and execute our operations in a timely, efficient, and cost effective manner.”

ArcelorMittal USA employs about 3,000 USW members at its Burns Harbor plant and almost 5,000 at two East Chicago plants.

Adriana Resources appoints Mr Petrina as VP operations

Vancouver based Adriana Resources announced that it has appointed Mr Michael Petrina as VP of operations.

Mr Petrina was previously operations GM for Adanac Molybdenum.

Mr Michael Beley CEO of Adriana Resources said that “Mr Petrina would play an integral role in the continued development of Adriana's strategy to acquire and develop iron ore resources in Brazil and to advance the company's iron ore resources in Quebec.”

Vale to invest USD 1 billion in iron ore complex at Port of Sohar

The Sohar Industrial Port Company SAOC has signed a Sub Usufruct Agreement, which is equivalent to a land lease agreement, with the Companhia Vale do Rio Doce. It was signed at Rotterdam by Mr Maqbool bin Ali Sultan minister of commerce & industry of Oman and chairman of SIPC, Mr Eduardo Bartolomeo ED logistics of VALE and Mr Sergio Leite country manager for Oman of VALE.

The agreement, subject to VALE’s board approval, facilitates approximately USD 1 billion worth of investments in a production facility and distribution centre in the Port of Sohar.

VALE is planning to construct an iron ore pellet plant and iron ore distribution centre facility in the Port of Sohar. The production at the Port of Sohar of iron ore pellets is planned to commence in the second half of 2010.

In addition there will be joint investment in related marine infrastructure by the Government of the Sultanate of Oman and the Port of Rotterdam.

The management of the Port of Sohar, SIPC, is planning to start the construction of a deepwater jetty this year to accommodate the very large vessels with drafts of up to 23 meters, bringing the iron ore from Brazil. The Port of Sohar is also aiming to establish a more extensive handling of bulk cargo facilities and the signing today with VALE gives the Port of Sohar the opportunity to enter the next phase in its expansion.

The strategic location outside the Strait of Hormuz and near emerging markets combined with the fact that Oman is a country with a good environment to develop business are the main reasons for VALE to choose the Port of Sohar for its expansion in the Middle East. The Port of Sohar also has access to deep water and the investment of VALE can further boost the development of the bulk and steel cluster in the port, next to the petrochemical and logistical cluster.

This will be the first whole owned green field investment in the ferrous sector outside Brazil for VALE. The distribution centre within the Port of Sohar will allow VALE an easier path for distribution to the Middle East region.

Zamil Steel opens its second unit in Vietnam

Saudi Gazette reported that Zamil Steel has started its second factory in Ho Chi Minh City of Vietnam. It has a production capacity of 4,500 tonnes a month of pre engineered buildings and other steel products. Total investment in the new plant is estimated at USD 20 million.

The factory will increase the total production of Zamil Steel Vietnam from 50,000 tonnes to 100,000 tonnes of steel buildings annually. It will also have the capabilities to fabricate 2 new product lines structural steel and open web joists, providing a wider range of steel building solutions and product options to satisfy ZSV customers, both in the domestic and export markets.

Mr Adnan Al Mansour president of Zamil Steel Industries said that "The demand for high quality pre engineered steel buildings is growing rapidly and Zamil Steel Vietnam, as the leading international manufacturer of PEB, has become a major part of our strategy to get closer to our customers."

Ezz Dekheila Steel Q1 net profit up by 53% YoY

Egypt's Ezz Dekheila Steel has posted a net profit of EGP 780.56 million in January to March 2008 quarter up by 53% YoY as against EGP 510.46 million in January to March 2007 quarter.

Prime Research advised clients to buy the company's shares in April 2008, saying increased demand for steel would boost prices and profits.

Erdemir Net Profit Up 68% YoY to TRY 121M

Turkish steel major Erdemir posted a 68% YoY increase in its net earnings in Q1 to TRY 121 million. Its revenues also increased by 17% YoY to TRY 1.1 billion.

UAE railway network plans in final stages – NTA Chief

Khaleej Times quoted Dr Nasser Saif Al Mansouri director general of the National Transport Authority as saying that the planning process for the UAE railway network is progressing well and is in the final stages.

Dr Al Mansouri said that "We are right now in the final stages of planning and need to provide an alignment for the UAE national network." He added that the UAE national rail network would run from the country's border with Saudi Arabia and would cover all the emirates Dr Nasser added that the national rail alignment plan would be submitted for discussions at the GCC level as part of efforts for having a GCC wide railway network.

He said "The meeting of the transportation ministers, scheduled to be held in Riyadh in June 2008, would discuss the alignment plans for the Gulf region." He added that the national rail network was part of the strategic plan of the UAE government and expected to ease traffic congestion and reduce the number of trucks on the roads.

Dr Nasser said that "The number of trucks on UAE roads is increasing fast and it is expected to reach one million by 2015. We need to have efficient transportation network to reduce congestion." He added that the rail network could be used for handling cargo as well as for passenger transport, depending on the management and operation of the network.

Earlier, Mr Shaikh Saud bin Saqr Al Qasimi crown prince and deputy ruler of Ras Al Khaimah stressed that UAE should have excellent transportation networks and infrastructure in line with remarkable economic growth currently taking place in UAE. He said that "An integrated and reliable transportation network across the country would greatly help in reducing congestion and increase productivity and economic growth of the country."

Sindh may annul all MoUs with coal based firms

Daily Times reported that Sindh government is likely to annul all MoUs signed with different foreign and local companies for coal based power projects, except one company that has so far carried out developing work at satisfactory pace.

The report cited official sources in the Sindh mines & mineral department as saying that the new government has decided to take stern action against all firms on the suggestion of provincial cabinet held in past week. It added that the provincial government has cancelled around 4 MoUs so far and it has sent notices to other companies asking them to present financial feasibility reports at the earliest.

According to an estimate, the feasibility report for coal based project has a whopping cost of PKR 30 million. Sources added that majority of these companies are not financially sound to invest on coal based projects even investment through borrowing seems to be difficult task for them. The official said that "There are some companies who have inked agreements with government 5 years ago, but they have not started any development activity even for preparing financial feasibility report for any project."

It may be recalled that the Sindh government has signed 14 multiple MoUs with seven companies since 2002. Out of 8 companies that inked MoU with concerned ministries, only two companies have started drilling work in their respective areas.

Geologists believed that the estimated reserves at Thar are about 175.506 billion tonnes of coal and are sufficient to meet fuel requirements of Pakistan having a potential for generating about 100,000 MW of electricity. In Pakistan coal use is less than 1% as against 69% in India, 80% in Australia and 78% in China.

Chinese crude steel production in 4 months up by 9.1% YoY

China produced 169.78 million tonnes of crude steel during the first four months of 2008 up by 9.1% YoY.

Crude steel output in April 2008 was 44.68 million tonnes.

Chinese SBQ plate market increasingly depending on exports

China's shipbuilding industry has shown increasing reliance on export market in recent years since ship plate export volume is on the rise. In the first quarter of 2008, domestic shipbuilding plate market has witnessed soaring output and price despite the severe snowstorm.

Obviously, East Asia is in the spotlight among the new round of global shipbuilding boom starting from 2002. As a result, China's thriving shipbuilding sector has stimulated furious investment in ship plate capacity expansion over the years. By contrary, the ship plate capacity in traditional shipbuilding titans like Japan, South Korea has lagged behind the demand growth, leading to massive supply shortfall.

China's ship plate fresh capacity has started to come on stream from 2004, with a host of leading steel mills being classified by global leading classification societies. That help Chinese ship plate make inroads into overseas market.

In 2007, China exports 4 million tonnes of ship plate, representing 35% of its total ship plate output of 12 million tonnes, far exceeding the country's overall steel export ratio of 11%. The ship plate output growth has continued to steam ahead in Q1 of 2008, with monthly production keeps expanding at over 100%. The ship plate output amounts to 4.72 million tonnes in January to March 2008, up by 120% YoY.

In the mean time, the shipbuilding industry has shown healthy growth in Southeast Asia. China has delivered 2.1 million DWT of vessels in the first two months of 2008, with the ratio of the global ship production down from last year's 22.2% to 21.9%. And Japan has lifted its share from 33.17% to 33.3%, South Korea remains to take up 34.4% in the timeframe. Vietnam has also seen booming shipbuilding sector in recent years. Vinashin, the bellwether of the country's shipbuilding company, has recorded historical high of output in the first quarter.

The robust demand for ship plate in above shipbuilding countries has afforded great opportunity for Chinese medium plate export, which has surged 61% in the first quarter against 19% decline on overall steel export. South Korea, Vietnam and Singapore are the top three destinations, accounting for 78% of Chinese medium plate shipment.

Meanwhile, Chinese mills have settled the export price to South Korea for June 2008 delivery at USD 1200 to USD 1300 per tonne CNF in late April 2008. Currently, the EXW price of most domestic ship plate producers is below that level. Therefore, Baosteel is set to lift its Q3 price for ship plate well above CNY 8000 per tonne, which could give further boost to domestic ship plate market.

(Sourced from MySteel.net)

China Drill to acquire 85% stakes in Yalian Steel

China Drill Corporation has entered into an agreement to acquire an 85% equity interest in Yalian Steel Pipe Company Limited. The acquisition agreement is with the owners of Yanqiu Zhang Company and the shareholders of Ninghua Chemical Company Limited for the acquisition of Yanqiu and the acquisition of all of the outstanding shares of Ninghua. The acquisition constitutes an arm's length qualifying transaction in accordance with the policies of the TSX Venture Exchange and is not subject to shareholder approval.

Yalian is 20% owned by Yanqiu and it is 65% owned by Ninghua. The remaining 15% of Yalian is owned by Jiangsu Tongyu Steel Pipe Group Company Limited. Jiangsu Pipe has 18 years of experience in the manufacturing and sale of helical submerged arc welded steel pipes and longitudinal submerged arc welded steel pipes.

Yalian was incorporated in January of 2008 with registered capital of USD 38 million, which cash amount was paid into Yalian by the three shareholders, in proportion to their respective percentage equity interests in Yalian.

These funds are, in part, being used by Yalian to construct an initial manufacturing plant in Yangzhou, Jiangsu province, China, to manufacture LSAW pipes using a JCOE manufacturing process. The construction of the first production line is expected to commence this month and to be completed in the summer of 2009 with management projecting output for the first 12 months following completion at 150,000 tonnes of LSAW pipe. The plant is ideally located on a 42 acre parcel of land just north of Jiangsu Pipe's facilities such that Yalian can maximize its expected strategic leverage with Jiangsu Pipe by being able to draw on its experienced management team, established sales relationships and technical expertise.

Jiangsu Pipe began the production of steel pipes in 1990 and now employs over 580 people. Its main focus is on the production of spiral welded pipes, with annual production of 300,000 tons of pipe’

Earthquake cuts off supply chain of Pangang

21st Century Business Herald reported that Pangang Group's subsidiaries such as Sichuan Changcheng Special Steel Company Limited, Chengdu Iron & Steel Company, Chongqing Titanium Industry Company Limited, Jinshan Refractory Material Company Limited etc all stopped production after the magnitude 7.8 earthquake.

As per report, Sichuan Changcheng Special Steel Company Limited suffered great losses including casualties, factory and equipment damages, stoppage of water, electricity and gas supplies etc.

Baoji Chengdu and Chengdu Kunming railway as well as the laterals are still blocked for landslip, while Baoji-Chengdu is the only route for Pangang to carry it coal from Inner Mongolia and Chuanbei. The company is reliant on stocks for operation at the moment, source of it’s headquartering in Panzhihua disclosed. As learned, it can not ship out its steel products either.

In the meanwhile, Chuanjian Ductile Pipe Co of Xinxing Pipes Group is also in danger of the tremor. Sited in Yuandong of Chongzhou city, only 63km from the epicenter, Chuanjian has had its office buildings, factories, equipments, water tower, dinning hall and the bounding wrecked, thus unable to continue normal operation.

Nearly all enterprises, including steelmakers, have suspended operation in Sichuan. A majority of steelmakers request their sales companies not to raise up selling price to help reconstruction after the disaster. But the steelmakers' cost for raw materials transportation is higher under present situation, and it's not excluded that some mills may slightly lift the price.

Guojin Securities noted that reconstruction of the houses will lend a positive impact on nearby cement and steel industries, favorable to the steelmakers, especially for steel structural materials plants.

(Sourced from MySteel.net

China among interested investors for Cameroon port

Reuters reported that companies from China, Canada and Europe have expressed interest in investing in the building of a USD 655 million multi purpose deep seaport in south Cameroon that will serve major mineral export projects. The plan for the port to be located at Grand Batanga is presented to potential investors at a two day meeting in the capital Yaounde.

The projected port facility, whose depth will allow the entry of much larger ships than those currently served by Cameroon's main port of Douala, would consist of four terminals namely for containers, oil products, iron ore and aluminum. This included a proposed 490 kilometer long railway line between the projected port and the Mbalam iron ore project of Cameroon Iron Ore Company, controlled by Australia's Sundance Resources. When completed, the projected port was also expected to serve as a major shipment point for tropical hard wood from south-eastern Cameroon, northern Gabon and Republic of Congo.

Mr Louis Paul Motaze Cameroon's economy, planning & regional development minister said that a Chinese company China Harbor Engineering Company had shown interest in taking on the entire project. Other companies from Canada, Europe and Africa were interested in buying stakes in the port project, whose initial cost was estimated at XAF 282 billion. He added that "We have been very encouraged by this enthusiastic response and from the way things are progressing I am now very certain construction work on the first phase will start in 2010 and the first traffic will flow through the port by 2013."

Mr Edward Xu a spokesman of China Harbor Engineering Company said that "We are very willing, ready and determined to invest in this project which I believe will be very beneficial to the people and the economy of Cameroon and the entire Central African sub region."

Mr Roger Bogne GM of CamIron said that his company is very keen to invest in the development of the new seaport, at least in the iron ore terminal, so as to have an export outlet for the ore it planned to deliver from Mbalam by 2011.

China quake shakes up Baltic rates

The devastating earthquake that rocked China's Sichuan province sent already surging dry bulk shipping rates soaring over the last few days as investors speculated on what the impact will be on transportation companies.

Dahlman Rose analyst Mr Omar Notka said the 2009 contract rate for Capsizes vessels has surged 15%, to more than USD 115,000 per day, in just the past two days. Rates for the vessels on the spot, or un chartered, market soared by USD 7,386 to USD 203,520.

As the production of commodities and the ability to transport them from the affected areas to the Chinese coast is impacted by the earthquake, seaside areas will need more imports since they won’t be able to rely on domestic supplies to satisfy demand.

Mr Jefferies analyst Douglas Mavrinac said that in the longer term, the rebuilding efforts in the affected areas will require construction materials that will need to be shipped in, which will push rates even higher. He added that "This adds a little tightness to an already tight market."

Recently a number of events have caused rates to soar, iron exports from Brazil are returning to normal levels after being curtailed in the first quarter because of price negotiations. The price agreement shows the urgency for steel producers to have a steady supply of ore that they know they can count on, which is good for companies that ship coal, steel and other commodities.

HDG prices climbing up in China

In Shanghai, Angang Steel’s CGI with 1.0mm thickness is quoted at CNY 6,900 to CNY 6,950 per tonne, increased by CNY 350 per tonne as compared to that of April 30th 2008. Moreover, the GI price is expected to increase further to CNY 7,200 to CNY 7,300 per tonne.

In the meantime, as China’s GI exports continued growing, the GI export price is expected to rise. The difference in GI export price is quite big up to USD 50 to USD 60 per tonne between superior suppliers and inferior ones.

Scrap price firms surging up in Hebei

Major steelmakers in Hebei province have raised up purchase price for scrap by CNY 100 to CNY 200 per tonne on back of the sharp steel price rise as well as the anticipation for higher price in scrap market.

Shougang's purchase price rises accumulated to CNY 200 per tonne, with latest price offered at CNY 3680 per tonne for heavy scrap, CNY 3630 per tonne for medium scrap and CNY 3540 per tonne for small scrap, Tianjin Pipe lifted price by CNY 120 per tonne, base price is quoted at CNY 3670 per tonne for number 1 heavy scrap, CNY 3660 per tonne for number 2 heavy scrap and CNY 3640 per tonne for medium scrap.

Tianjin Tiangang and Xintai Iron & Steel hiked prices by CNY 100 per tonne, leaving EXW price at CNY 3630 per tonne for heavy scrap by Tianjin Tiangang and CNY 3780 per tonne for medium scrap by Xintai Iron & Steel.

Tangshan Iron & Steel raised up price by CNY 150 per tonne, pushing latest price to CNY 3600 per tonne for heavy scrap.

Current scrap price in northern China still stands lower than the peak level. Scrap market in Hebei is set to firm up in near future due to the scant supply and anticipation of price advances for pig iron.

(Sourced from MySteel.net)

Severstal to acquire WCI Steel in US

Russian steel major Severstal announced that it has reached a binding agreement to purchase WCI Steel based at Warren in Ohio State of US. The acquisition is subject to customary closing conditions, including the receipt of all necessary government and regulatory approvals and is expected to close in late Q2 or early Q3 of 2008.

According to the terms of the agreement, Severstal will acquire all outstanding equity of WCI for a total cash consideration of USD 140 million, implying an enterprise value of USD 327 million based on outstanding net debt as of April 30th 2008. WCI’s Board of Directors has recommended the transaction to its shareholders. Shareholders representing a majority of WCI’s diluted shares outstanding have irrevocably consented to the transaction. The acquisition has the full support of the United Steel Workers.

WCI’s total annual steel making capacity of 1.22 million tonnes is focused on high quality flat rolled steel for use in demanding applications. WCI Steel’s strength is built on “Custom Steel. Custom Service. Creative Solutions.” As an integrated producer of value added, custom steel products serving niche markets, WCI Steel emphasizes customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity steel products at its Warren, Ohio, facility. WCI Steel focuses on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength, and heavy gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers are steel converters, processors, service centers, construction product companies, and pipe and tube manufacturers.

Mr Gregory Mason CEO of Severstal International and COO of OAO Severstal said “This acquisition is aligned with Severstal’s disciplined approach to growing our US business while creating shareholder value. It solidifies our position as the fourth largest steel producer in the US by raising Severstal’s total US capacity to just under 11 million tonnes per year. The addition of WCI to Severstal’s family will enhance our custom product capabilities and create opportunities to increase profitability in both the short and long-term.”

Mr Leonard M Anthony, president & CEO of WCI Steel said that “During the past few months, the Board of Directors has carefully evaluated strategic alternatives and has concluded that the sale of WCI Steel to Severstal is in the best interests of the shareholders and will enable the Warren, Ohio, facility to prosper in the future. All of us at WCI Steel are committed to working toward a smooth and rapid transition.”

Citi and Raymond James are acting as financial advisors to Severstal on this transaction. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to Severstal.

Moelis & Company is acting as exclusive financial advisor to WCI Steel, Inc. McDermott Will & Emery LLP acted as legal counsel to the Company, and Kaye Scholer LLP acted as legal counsel to the Special Committee of the Board of Directors.

Evraz announces result for Q1

Evraz in accordance with the UK Listing Authority’s Disclosure and Transparency Rules, it issued its first Interim Management Statement relating to the period from January 1st 2008 to March 31st 2008.

Highlights

1. Revenue for the period was approximately USD 4,320 million

2. Total steel products sales amounted to 4.6 million tonnes

3. Iron ore sales volumes including inter-company shipments totaled 4.3 million tonnes

4. Coal sales including inter-company shipments were 2 million tonnes of coking coal and 1.5 million tonnes of steam coal

5. EBITDA was USD 1,393 million with EBITDA margin of 32%

6. Total debt as of March 31st 2008 amounted to approximately USD 7,259 million

7. Cash and cash equivalents as of the end of the period was approximately USD 450 million

Russia to sell stake in pipe plants - Report

Interfax reported that Russia will make a fresh attempt to sell a 25.1% stake in Large Diameter Pipe Works OJSC at Nizhny Tagil in Sverdlovsk region and 24% of OJSC Zarubezhtsvetmet in 2008.

The blocks of shares have been included in the adjusted privatization plan that the government has submitted to the Federal Property Fund.

The Fund has tried but failed to sell the block of 300,001 shares in Zavod TBD on several occasions, most recently on May 12th 2008.

Amurmetall to raise production output

Russian Amurmetall is making an effort to target its crude steel output to 2 million tonnes. Therefore, the company has planned to set up 2 new production lines, including two sets of electric furnace equipment, by October.

Besides, Amurmetall plans to increase its first electric furnace capacity to 1 million tonnes and has also been trying to increase capacity at its electric furnace.

(Sourced from YEIH.com)

Ukraine became 152nd member of WTO

Ukraine became the full fledged 152nd member of the World Trade Organization On May 16th of the year 2008. The Protocol on Ukraine’s joining the Marrakech Agreement on creating WTO, ratified by the Verkhovna Rada on April 10th of 2008, came into force on May 16th 2008.

Ukraine on becoming WTO member will implement a phased reduction of its export duty on ferrous scrap metal from EUR 30 per tonne to EUR 10 per tonne over six years.

Metinvest SGOK and CGOK raise wages by 20%

It is reported that Severniy Iron Ore Mining Works and Central Iron Ore Mining Works raised wages of their employees by 20% to UAH 2700.

As per report the pay rise was carried out in two stages during the first quarter of 2008. Initially the wages were raised for workers and a bit later for engineers and management of the companies.

Mr Alexander Vilkul the Honorary Director of Iron of SevGOK and CGOK said that “Social responsibility of companies reflects primarily in the level wages and salaries. Today the GOKs of Metinvest already rank among the Ukrainian metal and mining sector companies with the highest level of wages.”

It is the first case when the companies used the system of wages increase based on consideration of individual professional skills of every particular employee.

Evraz annual general meeting results

Evraz Group SA announced that all resolutions proposed to the shareholders at the Annual General Meeting held on May 15th 2008, were duly passed including:

1. Approval of the reports of the auditors and of the Board of Directors on the accounts of the Company as per December 31st 2007 and of the decision for allocation of the results for the period ending on 31 December 2007 as follows:
A. To approve and distribute annual dividends to the holders of record of shares in the share register of the Company as of 14 May 2008 in proportion to their participation in the share capital of the Company, provided that (1) the dividend per 1 (one) GDR shall be Euro equivalent of USD 1.40 (2) dividend per 1 share in the Company shall be Euro equivalent of USD 4.20 (four US Dollars and twenty cents)
B. The dividends shall be paid to the shareholders of record as of 14 May 2008 by 15 July 2008 at the latest. Payment of the dividends to the GDRs holders shall be made in accordance with the terms of business and practice of Bank of New York acting as custodian.

2. Amendment of the Articles of Association of the Company in order to increase the number of directors of the Company from 9 to 10 persons starting from May 15th 2008.

3. Statutory elections:
A. The following directors have been elected for a period ending immediately after the approval of the annual accounts of the Company covering the period January 1st to December 31st 2008:
Mr Alexander Abramov
Mr Otari Arshba
Mr Gennady Bogolyubov
Mr James W. Campbell
Mr Philippe Delaunois
Mr Alexander Frolov
Ms Olga Pokrovskaya
Mr Terry J. Robinson
Mr Eugene Shvidler|
Mr Eugene Tenenbaum

B. Ms Alexandra Trunova has been elected statutory auditor of the Company and Ernst & Young has been elected external auditor of the Company until approval of the annual accounts of the Company covering the period of January 1st to December 31st 2008.

Gazprom board meeting of to take place May 21

A regular meeting of the Gazprom Board of Directors will take place on May 21st 2008 at 3:00 PM Moscow time. The meeting agenda is scheduled to include the following items:

1. Identification of the Gazprom Annual General Shareholders Meeting time, venue and postal address for filled out voting ballots
2. Approval of the Gazprom Annual General Shareholders Meeting agenda
3. Gazprom draft Annual Report for 2007
4. Distribution of Gazprom net profit arisen within 2007
5. Recommendations on the amount of, time for and form of payment of annual dividends on the Company’s shares
6. Gazprom (parent company) annual financial accounts for 2007 filed in accordance with the Russian legislation
7. List of information (material) distributed among shareholders in the course of preparations for the Gazprom Annual General Shareholders Meeting and disclosure rules
8. Ballot format and wording for voting on the agenda items of the Gazprom Annual General Shareholders Meeting
9. Rules of shareholder notification of the Gazprom Annual General Shareholders Meeting details
10. Gazprom Board of Directors and Audit Commission’s remuneration
11. Gazprom Annual General Shareholders Meeting Presidium and Chairman
12. Results of the open tender among auditors to perform statutory annual audit of Gazprom in 2008
13. Amendments to the Gazprom Charter and the Company’s internal documentation.

AvtoVAZ posts 6 fold RASnet profit increase in Q1

RIA Novosti reported that Russia's largest carmaker AvtoVAZ posted on Friday a 500% YoY increase in net profit calculated to Russian Accounting Standards to RUR 4.1 billion (USD 172 million) in the first quarter of 2008. The figure rose by over 7% YoY against October to December 2007.

AvtoVAZ’s net profit went up 57.3% YoY to RUR 3.95 billion (USD 166 million) in 2007, when it sold a record 663,500 cars.

TGK 7 Q1 net profit up by 11.5% YoY

Interfax reported that Russia's Territorial Generating Company No 7 increased net profit 11.5% YoY to RUR 1.803 billion in the first quarter of 2008 as compared to the same period of 2007.

The main results of TGK 7 in the first quarter of 2008

(In 1000 RUR)

TGK 7 is one of the largest territorial generating companies, includes 21 combined heat and power plants with capacity to generate 6,900 MW of electricity and 30,700 Gcal per hour of heat.

Mr Zubkov to be next Gazprom head

Bloomberg reported that Mr Viktor Zubkov first deputy PM of Russia was introduced to British business leaders as Gazprom's next chairman by Mr Alexei Miller CEO of Gazprom.

Mr Sergei Kupriyanov spokesman of Gazprom in a text message confirming an earlier report by The Wall Street Journal said Mr Zubkov and Mr Miller were in Manchester to watch Zenit St Petersburg which Gazprom sponsors beat Glasgow Rangers to win the UEFA Cup recently.

Gazprom shareholders led by the government will choose a new board next month.

TMK publishes Q1 report

OAO TMK published a quarterly report issuer for the first quarter of 2008.

In the first quarter of 2008 revenues of OAO TMK RAS amounted to RUB 193.7 million, RUB 172 million in the first quarter of last year. Net loss for the RAS in the first quarter of 2008 totaled RUB 2.8 billion, net profit in the first quarter of 2007 amounted to RUB 5.9 billion.

It said that “Growth in earnings TMK in this periods resulted from increases in the services rendered, which is linked to contracting for the provision of advisory services with a number of the Company. Getting the loss in the first quarter in 2008 due to declining market value of shares of certain subsidiaries of OAO "TMK" and reflects the results of a mandatory reassessment in the composition of other expenses "Income Statement" accounting management company in accordance with the standards of RAS.”

Gazprom secures license to sell gas in Belgium

De Tijd reported that Russian gas giant Gazprom has secured a license to sell gas to industrial customers in Belgium, newspaper

As per report, Gazprom is the 25th company to receive such a permit in the country, where gas sales are dominated by Distrigas, the Belgian gas trading arm of French utility Suez and Gaz de France.

The newspaper said Gazprom has not yet approached any potential clients in Belgium.

Global stainless steel scrap prices may weaken

Because of the higher import price of stainless scrap and weak demand for stainless steel, major stainless steel mills in China plan to reduce their output in May 2008.

The reduction plan will have a huge effect in the raw material market, and the price of stainless scrap will drop, according to an analyst. Concerning holidays in May 2008, the output reduction will reach 30%.

It is reported that a stainless steel mill was asking for a price cut of JPY 30,000 per tonne for Japanese scrap, but its attempt was unsuccessful.

South Africa may impose export tax on chrome ore

It is reported that South Africa is considering imposing a USD 50 per tonne export duty on chrome ore.

As a result, China, the biggest chrome products importer from South Africa will be suffering higher import prices.

China likely to lose ferrosilicon market share in Japan

China, which supplies 80% of all the ferrosilicon consumed by Japanese steelmakers, is likely to lose some of its dominance as steelmakers look for alternate supply sources.

Chinese ferrosilicon traders raised their offer prices to USD 2,000 per tonne CIF Japan late last week, an alarming level according to market participants in Japan. On May 7th 2008, a 500 tonnes parcel of ferrosilicon was traded at USD 1,720 to USD 1,730 per tonne CIF Japan.

Just two days later offers went up by USD 300 per tonne, even though there were no supply disruptions or surge in demand, Japanese traders said. They added that Japanese steelmakers have recognized the risk of relying on one country for 80% of their ferrosilicon needs and have been talking about diversifying since last year.

TISCO and Tianjin form stainless JV in Tianjin Binhai

It is reported that recently, Tianjin Pipe Group and TISCO have established a JV named Tianjin TISCO Tianjin Pipe Stainless Company.

The new JV will build a stainless steel sheet base in Tianjin Binhai new area for production and sale of stainless steel in both domestic and international markets.

The registered capital of the new company is CNY 1.66 billion.

TISCO is the largest producer of stainless steel in the world and Tianjin Pipe Group is the largest oil pipes and seamless pipes production base in China with the most advanced equipments.

Nickel price to remian weak for a long period in China

According to inspection by ministry of commerce of China, Chinese nickel price is likely to keep weak for a long time despite possible small rebound in the short term. The rapid expansion in capacity increase and efficient supply are believed to the major reasons.

Average nickel price in April is CNY 247,300 per tonne, down by 4.7% MoM from March or 2.9% from January. In the short term, the strong demand for stainless steel from automobile, kitchen and home appliance industry is going to bring more demand for Nickel. Hence there would be price rebound for a short period.

However, there would not be great rebound in the long term taking into account the abundant supply in the world. At the same time, INSG indicated that the consumption of nickel would probably hit record high due to strong increase in stainless steel output. Nevertheless, the sufficient supply would level off international nickel price.

(Sourced from MySteel.net)

Norilsk Nickel revenue in Q1 slides by 5% YoY

Russian nickel giant Norilsk Nickel announced that its revenue in the first quarter of 2008 dropped by 5% YoY to RUB 66.6 billion (USD 2.8 billion).

Its net profit in 2007 calculated to Russian Accounting Standards rose by 40% YoY to RUB 170 billion (USD 7 billion). Its revenue increased by 22% YoY to RUB 319.5 billion (USD 13 billion) in 2007.

Norilsk Nickel accounts for over 20% of global nickel output, more than 10% of cobalt production and 3% of copper. The company's share on the Russian nickel market stands at around 96%. It accounts for 55% of domestic nickel production and produces 95% of Russia's cobalt.

Trelleborg finalizes acquisition of NPC Inc

Trelleborg’s acquisition of NPC Inc, an American specialist in pipe seals, has been finalized. This acquisition strengthens Trelleborg’s leading position in pipe seals, primarily for new building and replacement in the infrastructure market.

NPC Inc specializes in large seals for such applications as drains and manholes. NPC has its head office and production in Milford, New Hampshire, US, plus another minor production facility in the US.

Trelleborg is a global industrial group whose leading positions are based on advanced polymer technology and in depth applications know how. Trelleborg develops high performance solutions that seal, damp and protect in demanding industrial environments. The Trelleborg Group had annual sales 2007 of approximately SEK 31 billion, with about 25,000 employees in 40 countries

Nickel market developments in April 2008

Analysts said that rising supply, high stocks and lower than expected consumption from the key stainless steel industry point to weaker nickel prices in the coming months. Demand from stainless steel producers has fallen short of expectations so far in the seasonally stronger second quarter and fears are growing for impending weakness in the Asian market.

Standard Chartered said in its latest report that "The market is likely to remain over supplied for the time being unless there is acceleration in growth in the stainless sector. The recent softness in Asia suggests that the worst is not yet over."

Standard Chartered predicts 3 month nickel prices will average USD 27,900 a tonne in the second quarter of 2008, falling to USD 24,000 in the third quarter and to USD 22,000 in the final quarter.

Nickel prices held relatively steady in April 2008, ending the month at USD 28,700 a tonne as compared with USD 29,800 at the end of March 2008. A move above USD 30,000 up to USD 30,300 mid month, helped by optimism about stronger demand, proved short lived as worries about increasing supply gained the upper hand.

Ferrochrome prices to climb due to Sichuan shutdowns

It is reported that the earthquake in southwest China's Sichuan province might leads to supply shortfalls in the province and nearby and pushes up the market price for ferrochrome.

Sichuan Mingda Group and Sichuan Jinguang Group, two largest ferrochrome producers in China, are both located in the disaster affected province. It's learned that Jinguang Group is still maintaining its operations at present, though unstable. Both groups are expected to report some production decline.

China may imports more ferrochrome if the earthquake leads to supply shortfalls, which may drive up the global sales price. Global ferrochrome price has increased by some USD 2000 per tonne to approximately USD 5400 per tonne at present due to the electric power shortages in South Africa.

Hired workers sue Latrobe Specialty Steel

The Pittsburgh Tribune Review reported that Latrobe Specialty Steel Co is accused in a federal lawsuit of permitting an entire culture where pornographic e mails were sent and received by many workers and management.

As per report, four former longtime Latrobe Specialty Steel employees alleged in an age discrimination lawsuit they filed last week in US District Court in Pittsburgh that they were fired in November on the grounds that they sent and received offensive e mails.

The suit stated that “The e mails sent and received by the fired workers were far less offensive than what many other employees and members of management, including Mr Hans J. Sack, president of LSS, sent and received without any sanction from the company. There is an entire culture at LSS of sending pornographic e mails.”

The lawsuit alleges that Latrobe Specialty Steel has been discriminating against its older work force, firing them and forcing them to retire, for a long time and the practice has not stopped. They said in the lawsuit that the company violated the Age Discrimination in Employment Act. According to the lawsuit, it stated reason for the firings was only a pretext because three of the four were replaced with younger employees.

The lawsuit seeks back pay plus benefits and damages for the four fired workers, along with an injunction prohibiting Latrobe Specialty Steel from discriminating against workers 40 or older. It seeks a judgment that a class action lawsuit can be filed against the steelmaker, saying its action in firing those workers violates age discrimination law.

As per report, Latrobe Specialty Steel would not comment on the allegations.

BHPB bid for Rio – BHPB shares surge on Chinese whispers

It is reported that shares of BHP Billiton Ltd rose more than 4% Friday to a record high of AUD 50 amid further speculation about Chinese interest in a stake in the company.

According to The Australian newspaper, Chinese companies have pitched a partnership to an Australian investment fund with the aim of taking a 9% stake in the mining giant. But it did not name the fund or the Chinese companies.

The newspaper report said that the rumored deal would see the Chinese take 4.5% of BHP Billiton, while the remaining 4.5% would be split between the Australian fund and a global private equity investor. It is just the latest of recent rumors of unnamed Chinese entities seeking to build a stake in the mining giant.

Ms Samantha Evans a BHP Billiton spokeswoman said the company has no comment on the report.

Xstrata coking coal talks with Japan broken off – Tex

The Tex Report without saying where it got the information reported that negotiations between Xstrata Plc and Japanese steel producers for Australian supplies of semi soft coking coal have broken off with no agreement.

Tex said that other coal producers meet clients in Japan next week and deals are unlikely, following the halt to Xstrata's negotiations and talks may take a long time.

ArcelorMittal to invest in two Indian coal mines - Report

Economic Times quoting unnamed sources reported that the Indian unit of steelmaker ArcelorMittal will invest in two coal mines as part of plans to build electricity generators that will power two new steel plants in the country.

The newspaper said ArcelorMittal India Ltd plans to take a 55% holding in Seregarha Mines and also wants a 13% stake in Rampia Coal Mines and Energy.

The report cited an official source as saying that “The company has sought government consent to convert ArcelorMittal Indian Limted into an operating cum holding company. It will then provide funds to its joint venture entities and subsidiaries engaged in steel making and mining of iron ore and coal.”

Rampia is a JV between Reliance Infrastructure Ltd formerly Reliance Energy, Vedanta Resources' unit Sterlite Industries, Navbharat Industries, GMR and Lanco.

Coal from the mines will be used at two proposed 750 MW power plants, one in the eastern Indian state of Orissa and the other in Jharkhand state. The electricity will supply two proposed 12-million-tonne steel plants, one in each state, for which ArcelorMittal will invest a combined INR 800 billion.

Ferrexpo update on 4 months of 2008

UK listed Ukrainian iron ore major Ferrexpo plc issued its interim management statement for the period from January 1st 2008 to May 15th 2008, in accordance with the UK Listing Authority’s Disclosure and Transparency Rules.

1. Pellet sales price increases of over 90% confirmed for 2008/2009 contract year in respect of the majority of the Group’s sales book

2. Production and sales levels in line with expectations

3. Product quality continues to rise

4. Ukrainian PPI inflation of 12.2% in the first quarter of 2008 impacting costs

5. Sharp increases in cyclically priced inputs further impacting production costs

6. Operational efficiency and productivity initiatives continue to partly mitigate these cost pressures

7. Growth projects proceeding on schedule and within budget

It said “Further to its announcement on 17 April 2008 regarding contract price settlements, the Group now confirms that it has secured DAF/FOB price increases for its products of over 90% on average compared with the 2007/2008 contract prices in respect of more than 80% of its sales book. The balance of the Group’s contractual negotiations is expected to be completed in the second quarter of 2008. The new prices will apply for the year commencing 1 April 2008.

The release added that “Ferrexpo’s pellet production in the first four months of 2008 has been in line with management expectations. The proportion of high quality 65% Fe pellets produced, which rose by 19% in 2007, has continued to rise in 2008.”

Ferrexpo also said that its projects to expand and extend the existing Gorishne Plavninskoye Lavrikovskoye mine is on schedule and within budget, and increased mining volumes are expected from 2009, also according to schedule. It added that the projects to upgrade the beneficiation and palletizing plants at the GPL complex and the new mine developments on the Yeristovskoye and Belanovskoye deposits are also proceeding on schedule.

Jupiter Mines to acquire iron ore rights from Shaw River Resources

Jupiter Mines Limited announced that it has signed a formal agreement with Shaw River Resources to acquire the iron ore rights to tenement E45/3183.

KEY POINTS
1. Formal agreement signed to acquire iron ore rights from Shaw River Resources for Pardoo tenement.
2. Tenement is adjacent to Atlas Iron’s Pardoo Project in the Pilbara.
3. Acquisition strategically expands Jupiter’s exploration portfolio in a world class iron ore producing region.

As announced on April 8th 2008, E45/3183 was subject to a Heads of Agreement with Shaw prior to a ballot being held, with Jupiter acquiring the iron ore rights and Shaw acquiring all other mineral rights if the other party was successful in winning the ballot. Shaw was subsequently successful in winning this ballot and the initial Heads of Agreement between Jupiter and Shaw has now been formalized.

Mr Greg Durack CEO of Jupiter Mines said that the acquisition represented a strategic expansion of the Company’s highly prospective iron ore exploration portfolio. He said that “This tenement is located in a world class iron ore mining province as well as having significant base metal and gold potential, lying close to existing infrastructure and adjacent to Atlas Iron’s Pardoo Project.”

He added that “The acquisition adds to the Company’s priority Central Yilgarn Iron Project in the Yilgarn region, and the highly prospective Brockman Iron Ore Project in the Pilbara.”

PT Bumi confirms USD 132 per tonne thermal coal deals

Reuters reported that Indonesia's largest coal miner PT Bumi Resources Tbk confirmed that it has signed 2008 coal deals with some Japanese utilities at USD 132 a tonne.

Mr Dileep Srivastava investor relations official at Bumi said that the agreed price was 140% above 2007 prices.

Traders said that the company has negotiated a 120% price hike for 2008 thermal coal deliveries to some Japanese utilities.

Two industry sources also said the firm had agreed to sell 5 million tonnes of thermal coal at USD 132 a tonne to some Japanese utilities, while other Japanese utilities have signed index linked supply contracts with Bumi at USD 6 above the globalCOAL benchmark index.

McNally Bharat to acquire 68.28% stake in Sayaji Iron

The board of directors of McNally Bharat Engineering Company, at its meeting held on May 16th 2008 has unanimously agreed to acquire 68.28% share holding of Sayaji Iron & Engineering at INR 590.1 million consisting the entire shareholding of the existing promoters.

An MoU has already been signed to this effect on May 16th 2008.

Sayaji Iron & Engineering is a Gujarat based company having its plant located in Vadodarare. The company is having 8 marketing offices across the country and is engaged in manufacturing wide range of equipment used in crushing, grinding, screening, road making, construction and material handling equipment, customized equipment for steel, cement, power and coal plants and complex turnkey projects.

ICMM appoints Dr Hodge as new President

Dr R Anthony (Tony) Hodge has been appointed as president of International Council of Mining and Metals and will take up his position on October 1st 2008.

Mr Brad Mills chairman of ICMM welcomed Mr Tony Hodge at a meeting of the ICMM Council, made up of the CEOs of all member companies, held in Miami on May 15th 2008.

Tony Hodge is a leading authority on sustainable development in mining. He has worked as a professional engineer and consultant to industry and as an advisor to government during the course of his distinguished career. He served on the Canadian Prime Minister’s National Roundtable on Environment and Economy (1992-96), led the North American component of the Mining Metals and Sustainable Development (MMSD) project (2001-02) and was President of Friends of the Earth Canada (1989-92). He is currently Kinross Professor of Mining and Sustainability in the Department of Mining Engineering, and Helen and Arthur Stollery Professor of Mining Engineering and Geological Sciences and Geological Engineering, at Queen’s University, Kingston, Ontario, Canada.

Mr Mills said, “I am looking forward to working with Tony. He has an excellent track record in the industry, and is ideally positioned to lead ICMM as we work towards a sustainable future for the mining and metals industry.”

Mr Hodge said, “This is an exceptional opportunity. My enthusiasm for this role has only grown since having the opportunity to interact with the CEOs of our member companies this week. ICMM has made great progress since its creation in 2001, although there are many exciting and significant challenges ahead.”

ICMM comprises many of the world's leading mining and metals companies as well as regional, national and commodity associations, all of which are committed to the responsible production of the mineral and metal resources society needs.

National Coal announces Q1 results

US based Central and Southern Appalachian coal producer National Coal Corp reported that for the period ended March 31st 2008, it achieved total revenues of USD 35.7 million based primarily on the sale of 596,732 tonnes of coal as compared to revenues of USD 19 million primarily through the sale of 368,332 tonnes of coal.

For the three months ended March 31st 2008, National Coal reported a net loss of USD 10.7 million and a negative EBITDA of USD 0.8 million as compared to a net loss of USD 6 million and a negative EBITDA of USD 0.6 million reported in the year ago quarter.

Q1 result highlights are:

1. Sale of Straight Creek property for USD 11.0 million in cash; the Company used USD 10 million of the proceeds to repay its 12%, USD 10 million senior secured term loan.

2. As a result of this transaction, an additional USD 7 million in cash will return to the Company and USD 3.6 million of reclamation liabilities and USD 2.6 million of equipment related debt was assumed by buyer.

3. First quarter revenues increased by 88% to USD 35.7 million from USD 19.0 million during the year ago quarter.

4. Tons of coal sold increased 62% to 596,732 tonnes up from 368,332 tonnes during the year ago quarter.

5. At March 31st 2008, National Coal had cash and cash equivalents of approximately USD 10 million and cash flows provided by operations of approximately USD 2.7 million.

6. On May 12th 2008, the Company completed the sale of 2,332,000 shares of common stock at a price of USD 4.65 per share in a private placement for gross proceeds of USD 10,843,800. Mr Daniel Roling, Michael Castle and Mr William Snodgrass, executive officers of the Company, purchased 55,000 shares in the offering; proceeds will be used to accelerate growth plans.

Mr Daniel A Roling president &B CEO of National Coal said that “This transaction was a critical portion of our results for the first quarter 2008, which should not be overlooked. It is indicative of our desire to protect the interests of our shareholders as we leverage our best resources to meet demand in the strengthening market for coal. Following this transaction, we look forward to tapping into the improved market conditions by restarting a number of our idled facilities as well as open new facilities, which will significantly contribute to our future results. That said, as previously disclosed in our 2007 year end release, the first quarter presented its own challenges.”

Roof collapse hurts production at Foundation coal mine

Foundation Coal Holdings Inc announced that production at the Emerald Mine, operated by its affiliate Emerald Coal Resources LP in Northern Appalachia, is running at a reduced rate due to anomalous geological conditions, which caused a roof fall impacting longwall advance. The company said that the un produced tonnage will impact financial results for the second quarter.

Foundation Coal said that “There has been no impact to coal production in the continuous miner development sections. Based on current information, the company expects the roof fall to curtail longwall production for approximately 14 to 17 days, resulting in estimated reduced production of approximately 210,000 to 240,000 tons from the mine in the second quarter. As a result of the roof fall, Emerald Coal Resources, LP declared force majeure on coal shipments from the Emerald Mine.”

Mr Kurt Kost president & COO said “We are working to remedy the issue in a safe and diligent manner. Although this situation will diminish production in this quarter, we anticipate by year-end making up all or a substantial portion of this shortfall. Last year we made the decision to install a second longwall at Emerald to minimize impacts when unanticipated geological challenges occur. The original longwall at Emerald is currently being re-built and will be placed back in service later this year.”

German coal consumption in January jumps by 3.5%

According to Germany’s government statistics, German coal consumption jumped 3.5% in January 2008 as colder weather increased demand, boosting emissions of greenhouse gases in Europe's biggest economy.

According to the state statistics office electricity generated by burning hard coal and lignite climbed to 24.3 terawatt hours in January from 23.5 terawatt hours a year earlier.

According to the European Climate Exchange in London, coal burning expanded to meet higher demand for heating as temperatures in Berlin fell to an average 2.3 degrees Celsius below those a year earlier. The price of December carbon dioxide emission permits averaged EUR 21.99 a tonne in the month. That's more than five times the EUR 3.85 price of December 2007 permits a year earlier.

Global subsidiary to sell metallurgical coal

Global Environmental Energy Corp has received a Letter of Intent from US based WASP Energy LLC for Global to supply WASP with 2 to 3 million tonnes of Chinese metallurgical coal per year on a multiyear contract.

WASP is a Khanjee company and is licensed by the Federal Energy Regulatory Commission of the United States to trade in electric power and other energy commodities. WASP will pre finance its ongoing coal purchase from Global through credit facilities acceptable to Global.

Global is a joint venture partner with the Yankuang Group of companies, engaged in the business of mining, processing and selling Chinese Coal. Yankuang and Global jointly own the Shenzhen YanFeng Coal Company Limited, which is 60% owned by Yankuang Group Holding Co Ltd and 40% by Global.

Leighton orders grow by 48% YoY to AUD 28.1 billion

Bloomberg reported that Australia's largest construction company Leighton Holdings Ltd work in hand jumped by 48% in the year ended March 31st 2008 and reaffirmed its expectation that full year profit will rise at least 30%.

Leighton Holdings in a statement said that its order book swelled to AUD 28.1 billion as compared to AUD 19 billion a year earlier, bolstered by more than AUD 1.6 billion in contracts to build oil pipelines and coal mines in India. Revenue for the nine months to March 31 rose 16% to AUD 10 billion; profit attributable to shareholders swelled 37% to AUD 375 million.

Leighton Holdings’s United Arab Emirates based venture with Al Habtoor Engineering secured a AED 1.55 billion (USD 422 million) venture to build a residential and commercial complex in Dubai. It said that Al Habtoor Leighton Group now has almost AED 17 billion of work in hand.

Mr Wal King CEO of Leighton Holdings said that “The resources boom is set to continue for coal, iron ore and energy related commodities into the next decade.”

Mr King is pursuing growth in Asia and the Middle East to replenish his order book amid concerns a global slowdown would curb available contracts.

Zinifex makes zinc discovery in Rosebury mine

Zinifex announced that diamond drilling at the company's Jupiter prospect approximately five kilometers south of Zinifex's Rosebery Mine on Tasmania's West Coast had intersected significant mineralization in three holes.

Assays for drill hole JP 353, the only hole received so far, identified 23 meters at 5.6% zinc, 1.1% lead, 38 grams per tonne of silver and 0.8 grams per tonne of gold from 61 meters depth, including 9.5 meters at 9.5% zinc, 2% lead, 70 grams per tonne of silver and 1.2 grams per tonne of gold.

Mr Stewart Howe Zinifex's Chief Development Officer said that this is an exciting new discovery in an area previously thought to be un prospective.

He said that "The discovery opens up a whole new area for exploration that is only a short distance from our Rosebery operations. Importantly the mineralization looks just like Rosebery style mineralization indicating that we may have intersected a new Rosebery type deposit only five kilometers away from the existing mine, "This has the potential to be a major new discovery with the added attraction that it is close to surface. Work will be fast tracked to determine the extent of the find.”

Ukrainian coal production in 4 months up by 2.5%

Intefax cited Ukraine Coal Ministry reported that Ukraine raised coal production approximately 2.5% YoY in January to April 2008 period to 26.709 million tones. Coking coal production fell 3.8% to 9.476 million tonnes but steam coal rose 6.3% to 17.233 million tonnes.

Coal Ministry enterprises raised production 5.5% to 15.6 million tonnes, including 3.583 million tonnes of coking coal, up by 5% and 12.012 million tonnes of steam coal up by 5.6%. Overall coal production in April fell by 0.2% YoY to 6.447 million tonnes, including a drop of 15% to 2.145 million tonnes of coking coal but growth of 9.4% to 4.302 million tonnes of steam coal.

Coal production fell by 6% in 2007 compared with 2006 to 75.437 million tonnes, including 28.396 million tonnes of coking coal, down by 5.8% and 47.041 million tonnes of steam coal down by 6.1%.

MMTC issues tender to import 8 million tonn