May, 25 2008
India to take a call on steel export tax roll back soon
PTI reported that patting the industry for reducing prices voluntarily, the government will soon decide on whether to roll back export duty on steel products.
Mr Ram Vilas Paswan union steel minister said that "We have submitted a 13 point charter of demands of the industry to the Prime Minister's Office and finance ministry. One of the demands is that export duty should be rolled back in view of industry promising to hold the price line. A decision will be taken soon."
Mr Paswan said that the industry has also promised to restrict export at the existing level and the government is monitoring the situation closely. He added that "We are satisfied with the industry's action. However, decision on export duty has to be taken by the finance ministry as it involves financial implications. Steel and finance secretaries are discussing the issue."
Meanwhile, Mr RS Pandey union steel secretary said that the government has no problem as long as price increases by steel producers was proportionate to hike in input costs. He added that "It is a matter of satisfaction that steel makers have reduced prices on their own despite surge in global markets. We are monitoring the situation and will take appropriate decision soon."
Indian steel sector plans to reach 290 million tonnes by 2020
Mr Ram Vilas Paswan union steel minister said that steel sector in India is likely to see an investment of INR 870,640 crore by 2020 to reach over 290 million tonne capacity.
Mr Paswan said that the National Steel Policy had envisaged India’s total steel production to reach 110 million tonnes by 2020. The production is likely to reach 124 million tonnes by 2012 on the back of expansion plans of the steel companies and a few Greenfield projects in the pipeline. He added that the additional capacity enhancement in the sector would generate employment for around 4 million people.
He added that "The likely capacity achievable by 2019-20 will be over 290 million tonnes. Going by estimate of INR 4,000 crore investments per million tonne of additional capacity, the sector is likely to see an investment of INR 276,880 crore by 2012 and INR 870,640 crore by 2020."
He said that as of now, both domestic and foreign steel players have signed 193 MoUs with states for setting up new units with a total planned capacity of around 243 million tonnes and a total proposed investment of over INR 514,000 crore. Private and public sector steel companies have embarked on capacity expansion.
Mr Paswan further added that Steel Authority of India Limited’s crude steel production is expected to touch 24.84 million tonnes by 2011-12 and 60 million tonnes by 2020 from the present 12.84 million tonnes. Similarly, RINL’s crude steel production capacity will be enhanced from the present 2.90 million tonnes to 6.80 million tonnes by 2011-12 and 10 million tonnes by 2020. He said private steel majors including TATA Steel, JSPL, Ispat and JSW Steel have also lined up expansion of their existing production capacities.
Domestic and foreign investors have shown a great deal of interest in setting up steel capacities in India. 193 MOUs have been signed in various states with total planned capacity of around 243 million tonnes and a total proposed investment of over INR 514,000 crore. Major investment plans in the states of Orissa, Jharkhand, Karnataka, Chhattisgarh and West Bengal.
The current steel production capacity in India is over 53 million tonnes.
No hike in steel prices till August beginning – Indian government
Mr Ram Vilas Paswan union steel minister said that there would be no increase in steel prices till the first week of August 2008 as per an agreement between Dr Manmohan Singh and steel manufacturers.
He added that "For three months beginning May 7th 2008, there will be no increase in steel prices, though there is a considerable hike in the international market. India’s steel prices will remain unchanged for three months ending August 7th 2008."
Mr Paswan, however, reiterated his commitment to take care of the interests of consumers as well as industry. He added that "If raw material prices increase in the international market, domestic steel producers have to revise their rates too. The ministry has constituted a steel pricing monitoring committee to monitor prices of various categories of steel products."
JSPL to get mining license in Bolivia soon
ET reported that Jindal Steel & Power Limited is close to getting a mining license for 20 billion tonnes of iron ore deposits of El Mutun mine in Bolivia.
Mr V Gujral chairman of JSPL said that "While exploration work has already started, we are now awaiting a mining license. We expect to get it in another 2 to 3 months."
He added that construction work on the mining plant would start immediately after getting the license.
While the entire project work would be carried out by JSB, Bolivia based ESM would help with land, other infrastructure and manpower. Of the 5 directors on the board of JSB, 3 would be from JSPL and 2 from ESM. Mr PS Rana, who was earlier executive director at the company’s Raigarh plant, has been appointed as JSB’s executive director.
JSPL has also opened 3 offices in Bolivia to control and support day to day activities associated with exploration and mining. Apart from working on necessary infrastructure required for the project such as building road and waterways network, it is also setting up a testing laboratory at the site to test iron ore samples.
After over a year of negotiations, JSPL had signed a contract with the Bolivian government in July 2007 to develop El Mutun. In December 2007, it got a legal sanction to initiate work on the contract. Jindal Steel Bolivia SA, a wholly owned subsidiary of JSPL, has commenced work at the site as it received an environmental license for exploration of iron ore last month.
Update on Indian steel sector progress during last 4 years
As per the yearly benchmarking surveys conducted by International Iron & Steel Institute, India attained the position of the 5th largest crude steel producing country in the world in 2006, an improvement over international ranking of 8th position in 2003.
These are some of the highlights of Indian steel industry during last 4 years
1. India retained its position as the world's largest producer of sponge iron.
2. Steel production capacity in India by the year 2012 will be nearly 124 million tonnes. India is expected to become the 2nd largest steel producing nation in the world by 2015.
3. Crude steel production grew at more than 10% annually from 34.71 million tonnes in 2002-03 to 53.90 million tonnes in 2007-08.
4. Production of finished steel at 55.27 million tonnes during 2007-08 as against 40.71 million tonnes in 2003-04.
5. Sponge iron grew at a correspondent annual growth rate of 22% to reach a level of 18.35 million tonnes in 2006-07 as compared to 7.68 million tonnes in 2002-03.
6. Improved capacity utilization of public sector steel plants in from 86% in 2002-03 to 91% in 2007-08.
CPI opposes continuing support for POSCO by Orissa government
It is reported that Communist Party of India has expressed deep concern over government’s continuing support for the POSCO project in Orissa, also because at this time the plant is in flagrant violation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
In a letter to Dr Manmohan Singh, Mr D Raja national secretary of CPI said that his party had repeatedly pointed out that the POSCO project is economically disastrous and amounted to gifting away the country’s mineral resources. He added that despite these concerns, both the central and Orissa governments continued their backing for the project.
Mr Raja said that handing over 3,000 acres of forest land for POSCO’s steel plant would deprive a large number of villages of their rights under the Act. Indeed, it would be a criminal offence, appealing to the ministry of forests & environment to withdraw any clearance for diversion of forest land given to the company. This was because such diversion could not take place without violating the Act.
Performance of the units under Indian steel ministry
This is an update for last 4 years
1. The consolidated profit before tax of PSUs under ministry of steel has increased nearly four times from INR 5,298 crore in 2003-04 to INR 20,624 crore in 2007-08.
2. Combined contribution of steel ministry PSU’s and companies to the central and state government exchequers has gone up by 237% from INR 5,829 crore in 2003-04 to INR 19,649 crore in 2007-08.
3. SAIL has become virtually debt free. Borrowings have reduced from INR 8690 crore as on April 1st 2004 to INR 3045 crores as on March 31st 2008. Wealth of more than INR 76,536 crores has been created by SAIL as on March 31st 2008 through market capitalization as against INR 13,321 crores as on March 31st 2004.
4. RINL became a debt free company in October 2003 and wiped out all accumulated losses in January 2006.
5. MECON became a net profit making company in 2004-05 from a loss making situation in 2003-04. The net loss of INR 10.72 crore in 2003-04 became a net profit of INR 28.30 crore in 2007-08, representing a 364 % turnaround in the position from 2003-04.
6. MOIL became an INR 1000 crore company and a Mini Ratna category I company in 2007.
7. MSTC, a zero debt company became a Mini Ratna in 2005-06 became a schedule B company in 2007-08.
GKS Construction to set up rebar service center at Ambattur
BL reported that Chennai based GKS Construction Aids Private Limited is setting up a project to provide readymade steel for the construction industry by setting up a rebar cutting and bending facility in Ambattur industrial estate near Chennai. The plant will be up and running next month.
With the design and dimensions of the concreting portion from the customers, the computer controlled machines compute, cut and fabricate steel rods.
Mr AS Hariprasad MD of GKS Construction Aids Private Limited said that the INR 25 crore plant can process about 3,000 tonnes of steel of 8 mm to 40 mm diameter a month.
Mr Hariprasad added that it will buy steel in coil form rather than in predetermined lengths to minimize wastage and discounts on bulk procurement of raw material and savings through high productivity will make it cost effective.
It will help large construction companies to reduce inventory, optimize space, time and avoid overlap of steel rods eventually optimizing volume and weight of concrete and steel scientifically in buildings.
GKS Construction Aids Private Limited is into manufacturing steel centering, shuttering and scaffolding equipment.
Expansion plans of units under Indian steel ministry
This is an update for last 4 years
1 SAIL and RINL are in the midst of ambitious expansions to adopt the best technology and double their production capacities.
2. SAIL’s INR 54000 crore expansion plan is expected to raise its capacity to 26.2 million tonnes per annum of crude steel production by 2010 from its present production level of 14.6 million tones per annum.
3. RINL’s expansion plan is expected to take it present capacity of 3 million tonnes per annum of liquid steel production to 6.3 million tonnes and is expected to be completed by February 2010 at an estimated cost of around INR 9000 crores.
4. NMDC plans to expand its present iron ore production capacity of 30 million tonnes to 50 million tonnes per annum by 2014-15 through capacity expansion of existing mines, opening of new mines, value addition into sponge iron, pellets and steel.
Update on mergers and acquisitions in Indian state owned units
This is an update for last 4 years
A. Mergers
1. Merger of Indian Iron & Steel Company with SAIL completed in February 2006
2. Merger of Kudremukh Iron & Steel Company with Kudremukh Iron Ore Company Limited completed during 2007
3. Merger of Bharat Refractories Limited with SAIL approved by the government on April 24th 2008
4. Merger of Sponge Iron India Limited with NMDC likely to be completed during 2008
5. Merger of MEL with SAIL in progress
B. Revival and re structuring
1. Kulti works of the erstwhile IISCO revived as SAIL Growth Works, a separate unit of Steel Authority of India Limited.
2. Restructuring and revival proposal of MECON Limited, approved at a total cost of INR 100.72 crores during February 2007, enhancement of retirement age of MECON employees from 58 to 60 years
C. Acquisitions
1. MOU signed with Steel Complex Limited for its revival. SAIL will acquire 50% shares in SCL.
2. Following under process and likely to be completed shortly
- Acquisition and merger of Neelachal Ispat Nigam Limited by SAIL
- Acquisition of National Iron & Steel Company Limited by SAIL
D Financial aid for PSUs
1. INR 30.46 crore as non plan assistance for clearing outstanding wages or salaries and statutory dues to BRL and INR 21.44 crore to HSCL released by the ministry in December 2006
2. INR 35 crore and INR 1 crore respectively provided for restructuring and revival of HSCL and Bird Group of Companies in the budget for 2008-09
Reliance Infrastructure to bag MP power supply contract
It is reported that Reliance Infrastructure is understood to have emerged as the lowest bidder to supply power to the Madhya Pradesh government from one of the company’s proposed power projects, MP Power. Reliance Infrastructure’s bid to supply power at INR 2.45 per kWh was the lowest in the bidding process. There were bids from other companies such as Lanco Infrastructure and Essar Power.
As per the terms of the bid, Reliance will supply 1,241 MW of power from the 3,960 MW MP Power that the company is building at Seedi and which is also near the company’s Sasan ultra mega power project. Reliance Infrastructure declined to comment on the issue.
Reliance Infrastructure had signed a MoU with the Madhya Pradesh government in 2007 for the power project and the process of land acquisition has already started. Reliance had earlier said its levelised tariff for the Sasan project is INR 1.19 per kWh.
The coal required for the project would likely come from Sasan which has three captive coal blocks in Moher, Moher Amroli and Chattrasal coal mines, with estimated reserves of 750 million tonnes. Analysts say that if Sasan runs at a plant load factor of 90%, it will require 351 million tonnes of coal. This would leave additional coal, which can sustain MP Power.
Reliance Infrastructure is also planning to bid for supply projects in other states such as Haryana and Maharashtra and would also sell part of the power on a merchant basis. Power supplies from a project typically start within 48 months of the receipt of the letter of the intent from the government.
Import from China may hit Indian auto component industry
BL reported that despite a huge surge of 70% YoY in imports of auto components at INR 2,200 crore in 2007-08, Indian auto components industry is not alarmed as auto majors have a perception of inferior quality form Chinese units and as such it accounts for just about 3% of total business size of INR 70,000 crores.
The report said that “Chinese threat is today referred to as something lurking on the horizon, something to be alert about, but nothing that causes a loss of sleep. OEMs use the ‘China factor’ as a stick to beat their vendors into price reduction or at least as a deterrent against demands for price increases.”
But Industry associations have taken a hard line against imports from China. Mr Vishnu Mathur ED of Automotive Components Manufacturers Association said that sourcing by Indian OEMs is based mostly on price arbitrage, which is artificial because often the Chinese products come at a price less than the raw material costs of Indian manufacturers. He said that “If it is a fair competition, we have no issues. If the OEMs import from China, what will happen to component manufacturers who have created capacities, based on long term supply chain commitments?”
Just as the components industry is alert against imports, OEMs are always on the lookout for what best they could buy from China. Even the public sector BEML recently opened a purchase office in Shanghai.
GSPC firms up plans for LNG terminal at Mundra
BL reported that Gujarat State Petroleum Corporation has firmed up plans to set up a 7.5 million tonne LNG terminal in JV at the Adani group managed Mundra port. GSPC will hold 50% controlling stake and Adani group will pick up 25% participatory stake. The terminal is expected to be commissioned in 2012.
Though GSPC has offered the residual 25% stake in the JV to Essar, a decision on the same is pending. If Essar does not participate in the project, as is apprehended by industry sources, the venture may offer the same for public participation through an IPO.
A GSPC source said that "We have firmed up plans to set up the LNG terminal at Mundra. On behalf of the Gujarat government, GSPC will be the main promoter. Adani Group has agreed to participate in the project. We hope to freeze the shareholding structure and incorporate the joint venture in next few months."
On Essar’s participation, the source said that "Essar will be considered as a key business partner, even if it does not join the venture."
It may be mentioned that GSPC had previously entered into two different MoUs with Adani and Essar for LNG terminalling at Mundra and Pipavav in Gujarat. As things emerge now, GSPC has finally settled for Mundra.
Dredging for Sethusamudram will affect eco system – Dr Pillai
According to Dr NGK Pillai director of Central Marine Fisheries Research Institute, the massive dredging activities in the Sethusamudram project will affect the sensitive eco system in the Gulf of Mannar.
Dr Pillai said that around 3,600 species of flora and fauna are available in Gulf of Mannar Biosphere Reserve. Of this, more than 300 are endemic species.
He added that the massive dredging for the project will affect the sensitive eco system, sea grass meadows and the coral eco system in the Gulf of Mannar.
GAIL may sign gas pipeline deal with J&K soon
PTI reported that Jammu and Kashmir government will soon sign an agreement with public sector GAIL India for setting up city gas distribution network in 8 districts.
It may be noted that GAIL submitted the revised and final draft MoU to the state in March 2008 in connection with the project.
The law department has studied the proposal and final touches have been given to it.
Lanco Infra gets USD 150 million IFC credit for power projects
BL reported that Lanco Infratech Limited has secured a USD 150 million line of credit from IFC recently that will help the company part finance some of the power projects at various stages of execution.
Mr G Venkatesh Babu MD of Lanco Infratech Limited said that "We have long term engagements with IFC and this additional commitment of USD 150 million reinforces their commitment to be part of the projects developed by the Lanco Group."
Mr Babu said that "We have also bid for the Telia ultra mega power project planned in Jharkhand. This project is being pursued in partnership with Genting. To meet the coal requirements for coastal projects, we are negotiating with mines in Indonesia, South Africa and Australia."
He further added that Lanco is in parleys with some private equity firms based in the US to divest part of the stake and raise about USD 200 million before December 2008. He said that "We are discussing with private equity firms to augment funds for real estate projects now under implementation. There has been growing interest of PE firms in picking up stake and partnering with Indian companies in real estate ventures."
Lanco has structured most of the power projects with 80:20 debt equity structure and achieved financial closure for about 6,000 MW of the total 13,000 MW under various stages of implementation and clearance.
In Lanco’s 600 MW project Amarkantak, IFC had invested in 5% equity and other investor includes German investment arm DEG, part of KFW, which has taken 10% stake.
Steel demand to stay high despite global slowdown – OECD
The OECD's steel committee in a release said that World steel market will remain strong while global steelmaking capacity will rise from 1,560 million tonnes in 2007 to 1,849 million tonnes in 2010, representing an 18.6% increase.
Industry and government officials at the OECD's steel committee meeting said that despite signs of a global slow down, demand for steel will increase with consumption in emerging economies like India, China, Brazil and Russia growing in two digits
Mr Risaburo Nezu of Japan who is the current chairman of the OECD Steel Committee said that ''Global steel demand growth continues to be led by emerging economies, to meet the requirements of expanding industrial sectors and infrastructure growth. Demand growth in many mature economies has slowed in line with weaker economic activity. Global steelmaking capacity continues to increase rapidly. This could impact the market negatively if demand growth slows more than expected.''
He said that “In China, apparent steel use rose by 13% in 2007 to a level of 408 million tonnes. Growth in machinery and automotive manufacturing, shipbuilding and construction are likely to continue to support steel demand going forward.”
It said that “In India, apparent steel use increased to 51 million tonnes in 2007, an 11.3% increase from the previous year. A growing industrial sector and expanding infrastructure building should continue to support steel use in India.”
In Russia, apparent steel use reached almost 40 million tonnes in 2007 and demand should continue to be supported by the oil and gas industry as well as rising household incomes.
The committee said that “Global steelmaking capacity continues to expand rapidly, a trend that is being supported by generally higher producer profitability and positive demand prospects. This development has been enhanced by increased flows of foreign direct investment, as steel companies expand their operations, particularly to emerging economies which allow such investment and where steel consumption is increasing rapidly. Although demand and cost related considerations are the main factors determining the location of investment by the steel industry, concern has been expressed that differences in existing and prospective CO2 compliance standards may also play a role.”
The committee added that “Global steelmaking capacity is projected to rise from 1,560 million tonnes in 2007 to 1,849 million tonnes in 2010, representing an 18.6% increase. Most of this increase will take place in Asia. China will account for around half of the global capacity addition in the 2007-10 period. Several emerging economies such as India, Vietnam and to a lesser extent, Thailand, also have ambitious plans to expand capacity.”
Credit Suisse and Deutsche Bank to create iron ore exchange
It is reported that Credit Suisse and Deutsche Bank will create an off exchange market or over the counter platform to trade iron ore swaps with initial maturities as far out as December 2009. The swaps would be cash settled on a monthly basis against an iron ore index published by the Metal Bulletin.
Even though it is one of the most heavily traded commodities, iron ore has not seen the development of a derivatives market similar to those for oil, copper or aluminum. The market is mainly controlled by a handful of miners, such as Brazil’s Vale, BHP Billiton and Rio Tinto, which hold annual, secretive negotiations with Chinese, Japanese, Korean and European steelmakers. But surging sales on the spot market, particularly from India, outside the annual contracts is beginning to reshape the market and now iron ore majors such as Rio Tinto want to leverage higher spot prices.
Mr Adam Knight co head of commodities at Credit Suisse said that they have been successful in creating new financial markets in commodities that previously only had physical contract negotiations and very little trading, such as alumina, cobalt and other minor metals. He said “Iron ore is one of the largest commodity products without an active financial market, so it was a logical step to create a market in this product.”
Mr Ray Key head of metals trading at Deutsche Bank added that “The potential users of the new platform were financial investors, from hedge fund to pension funds; steel consumers frustrated by a lack of instruments to hedge their risk; and steelmakers, particularly smaller participants in Asia, which want to manage their risk against surging and volatile iron ore prices. This is the first time liquidity will be provided across a spectrum of maturities in the iron ore market.”
Mr Zhevago to raise offer for Kremikovtzi
Reuters reported that Ukrainian billionaire Mr Kostyantin Zhevago has pledged to invest up to USD 720 million over the next five years in Bulgaria's indebted steel maker Kremikovtzi.
Mr Viktor Demianuk ED of Mr Zhevago’s Vorskla Steel’s Bulgarian unit said that it will invest up to USD 650 million to upgrade the mill's ageing production facilities and up to USD 120 million to bring it up to EU environmental standards.
He added that "If we acquire the plant, we will transform it into a European plant.”
Previously Mr Zhevago had offered to provide USD 90 million in working capital immediately in exchange for joint management of Kremikovtzi for a year.
Brazilian crude steel output in April up by 7.1% YoY
According to Brazilian Steel Institute, Brazilian steelmakers continued to boost production in April 2008 because of strong demand from the industrial machinery, civil construction and automotive industries.
IBS said that Brazilian steelmakers produced 2.9 million tonnes of crude steel in April 2008 up by 7.1% YoY from 2.708 million tonnes in April 2007. Production of rolled steel products advanced 5.0% to 2.2 million tonnes in April 2008 as compared with 2.095 million tonnes in April 2007.
IBS said that output of long steel products continued its recent surge, but flat steel production slipped for the second consecutive month in April. It said that strong demands from the civil construction industry and a surge in infrastructure projects have fueled demand for long steel products in Brazil. In April, long steel output reached 931,300 tonnes up by 17.3% from 793,800 tonnes in the same month last year.
However, output of flat steel products slid 2.5% in April, despite continued strong performance by the Brazilian auto industry and increased demand from the oil, gas and naval sectors. Flat steel production tumbled to 1.269 million tonnes in April down from 1.302 million tonnes in the same month a year ago.
IBS said that steel production so far in 2008 has continued to build on the record year registered in 2007, when domestic demand surged on a government growth plan and an improving local economic climate.
In addition, declines in local interest rates in 2007 expanded access to credit for such steel intensive goods as housing and autos. However, growing inflation concerns could curtail credit use going forward. In April, the Brazilian Central Bank raised its benchmark Selic base interest rate by 50 basis points to 11.75%.
IBS said that in 2007, Brazil produced a record 33.784 million tonnes of crude steel in 2007 up by 9.3% YoY from 30.901 million tonnes in 2006. However, April domestic sales figures continued to rise at a double-digit pace, maintaining last year's strong growth. Domestic steel sales climbed 20.2% to a record 1.930 million tonnes up from 1.605 million tonnes in April 2007.
Sales of high value rolled steel products maintained solid growth in April, while semi finished products posted gains on increased local production capacity. Domestic rolled steel sales jumped 19.4% to 1.863 million tonnes up from 1.560 million tonnes in the year ago period. In addition, sales of semi finished products such as slabs, blooms and billets surged 48.5% to 67,400 tonnes.
Rautaruukki to reorganize engineering division
Ruukki Engineering, Rautaruukki's engineering division is to boost its operations by reorganization and removing overlaps at the group division and unit level.
In this context, the division will initiate employer - employee negotiations concerning senior salaried employees in its Tampere, Hämeenlinna and Helsinki units. It is estimated 25 jobs will be affected.
A total of 60 senior salaried employees work in the units subject to the negotiations. Efforts will be made to find jobs in Ruukki's other units for the persons affected.
These actions are part of Ruukki Engineering's profitability improvement program aimed at improving the division's operating profit by EUR 20 million during the current year.
Japanese scientists develop ultra low temperature steel
FT reported a team of scientists in Japan have created a tougher form of steel that will not splinter or crack at low temperatures. The improved material has an elongated ultra fine grain structure combining it with a technique to discourage breakage.
The researchers report said that the material's strength and durability improves as the temperature drops. It said that making steel that can be useful at low temperatures usually requires adding a number of other elements, which can raise the cost substantially. The scientists, however, developed a form of relatively pure steel that has an extended grain configuration to discourage cracks, which would need to move around these rice-shaped grains to spread.
This new steel could be used to make stronger machines, upgrade transport systems and build better city infrastructure.
Indonesian VP calls for PT Krakatau expansion
ANTARA News reported that Mr Jusuf Kalla VP of Indonesia has asked the Indonesian people to understand the problem being faced by steel maker PT Krakatau Steel, which is in dire need of a huge investment to develop the industry.
Mr Kalla said that "The investment can be in the forms of an IPO, a partnership or joint venture.”
He informed that that Indonesia needed seven million additional tonnes of steel per year while Krakatau Steel is so far meeting the need by importing up to 6 million tonnes mainly due to its limited production capacity. Mr Kalla said that "Over the past 20 years, PT Krakatau Steel has been producing only 2.3 million tonnes per year.”
He added that it was not possible for PT Krakatau Steel to make profits if it did not engage in the steel industry from the upstream to the downstream levels like ArcelorMittal or TATA Steel and other steel industries in the world.
He said that "Krakatau Steel has for the past two years been requested to invest USD 60 million in its upstream operations in Kalimantan but has until now not done it. So, we should know the limits of our own capability. Spirit is important but spirit alone is not enough.”
He added that thus PT Krakatau Steel must have additional capital in order to increase its production capacity to meet the existing need. Mr Kalla said that “The strategy of borrowing money to increase PT Krakatau Steel’s capital was diffificult to implement as to reach the capacity to turn out the 7 million additional tonnes of steel per year, the company would need USD 4.8 billion in cash.”
Zinc market to swing in deficit in 2010 - Teck Cominco CEO
Teck Cominco Ltd, the world's second largest zinc producer said that falling prices will prompt companies to shut mines and cutting global supplies in 18 months.
Mr Donald Lindsay CEO of Teck Cominco in an interview in Beijing said that the market will swing to a deficit in 2010 and 2011, from a surplus now. He said that less supplies and output disruptions may then reverse the price decline of the metal.
Mr Lindsay said that “There are some operations that will shut down, including ours. At this zinc price, several others will shut down too. So we know 18 months from now, zinc will become very tight again.''
The International Lead and Zinc Study Group in April 2008 said that “The metal will have a supply surplus of 215,000 tonnes this year.”
Zinc was the biggest loser on the London Metal Exchange last year because of oversupply and fell to the lowest in more than two years. Zinc for three month delivery has fallen 9.7% in 2008 and was at USD 2,140 a tonne
Massey to challenge verdict in dispute with Esmark
It is reported that US coal supplier Massey Energy plans to continue to challenge a USD 220 million jury verdict rendered in 2007 in favor of steelmaker Wheeling Pittsburgh over disputed coal delivery contracts and it was willing to take its fight to the US Supreme Court if necessary.
Massey made the announcement after learning that the West Virginia Supreme Court of Appeals had denied its appeal of the verdict. The verdict stemmed from a contract dispute between its subsidiary Central West Virginia Energy Company and Wheeling Pittsburgh Steel.
Mr M Shane Harvey general counsel of Massey Energy said that "We are obviously disappointed that the Court decided not to hear a case of such importance. We strongly believe that the case should be reviewed by an appellate court and we will vigorously explore all options, including an appeal to the United States Supreme Court."
According to Massey, on July 2nd 2007, a jury in the Circuit Court of Brooke County, West Virginia returned a verdict awarding damages to Wheeling Pittsburgh Steel of USD 220 million, consisting of USD 120 million in compensation and USD100 million in punitive damages. The contract dispute originated in 2004 when CWVE declared force majeure on portions of its coal shipment obligations due to conditions beyond its control. Wheeling Pitt sued CWVE and Massey, seeking damages related to its cost of replacement coal and coke and repairs to its coke ovens.
Mr Don Blankenship chairman & CEO of Massey said that "As we have said before, we believe we operated appropriately. As one of the largest providers of coal to the US steel industry, the production and transportation challenges that faced the Central Appalachian coal industry in 2004 and 2005 were magnified here at Massey. Our contracts allowed us to claim force majeure as a result of rail and labor shortages, but we nevertheless expended millions of dollars to add more equipment and labor to fulfill our commitments and deliver coal to our customers. In light of such facts, the verdict rendered in this matter was very disheartening."
Surge in tin prices may lead to restart of mining in Germany
ITRI reported that high tin prices are encouraging several companies to re examine the potential for tin mining at Saxonia in East Germany, whose historic mining town of Freiberg, produced tin almost continuously from the fifteenth century until the re unification of Germany in 1990 and still hosts large but low grade resources.
Two of the largest projects are controlled by Deutsche Rohstoff AG, a new mining house established in 2006 to focus on the exploitation of relatively high cost but well developed projects or old mines in politically and economically stable countries.
Deutsche Rohstoff AG based in Heidelberg, is investigating the re opening of the old Ehrenfriedersdorf mine and the development of the Gottesberg project. The two projects, which have been subject to very extensive exploration drilling in the past, contain an estimated combined tin resource of 181,000 tonnes.
While part of the Ehrenfriedersdorf deposit is low grade and dispersed, DRAG has identified one area, called Geyer Sued, which contains some 46,000 tonnes of higher grade ore with associated zinc and indium. The company has made this the prime focus of its attention.
Gottesberg has a resource of 121,000 tonnes of tin with an average grade of 0.26%, but a focus on higher grade portions of the orebody could allow economically viable mining of around 60,000 tonnes at 0.4% Sn, plus by product copper. Deutsche Rohstoff AG also has third project which is at an earlier stage of exploration, while Tinco and HC Starck are also looking at other potential tin operations in the region.
(Sourced from ITRI.co.uk)
Hyundai Heavy April sales up by 25% YoY
Yonhap reported that Hyundai Heavy Industries Co, the world's largest shipbuilder, April 2008 sales increased by 25% YoY on rising demand for high priced vessels such as container ships.
Hyundai Heavy in a regulatory filing said that its sales climbed to KRW 1.58 trillion (USD 1.51 billion) last month from KRW 1.26 trillion a year earlier, the company said in a regulatory filing. It added that the April 2008 sales were also up by 3.16%
South Korea to expand incentives for export zones
It is reported that South Korea will expand tax benefits, scrap red tape and improve overall working conditions in the country's free economic zones to strengthen their competitiveness.
In a meeting of the national competitiveness commission chaired by President Lee Myung bak, the Ministry of Knowledge Economy stressed that local FEZs must become test beds for deregulation and better managerial environment for foreign investors.
Mr Lee Youn ho knowledge economy minister said that there are plans to extend the tax benefits and waivers for corporate and income taxes from five years to seven years, while cutting the authorization period for setting up new businesses from a maximum one year to 3 to 5 months.
He also said efforts will be made to reduce the cost of land that is an average of 2 to 6 times more expensive than those of rivals including China, and redouble efforts to make FEZs attractive as places of residence for foreign managers and workers.
Korea established three FEZs in Incheon, Busan Jinhae and Gwangyang Bay and added three more in April. The three new ones are the Yellow Sea FEZ in areas of southern Gyeonggi do and Chungcheongnam do the Saemangeum Gunsan FEZ in Jeollabuk do and the Daegu Gyengsangbuk do FEZ in the country's central area.
Steeluniversty.org wins Fairless Award
It is reported that members of the steeluniversity team have won the 2008 Benjamin F Fairless Award for their dedication to the creation of steeluniversity.org, an innovative and universal steel education website which has become a valuable resource for the promotion of steel and steel education by introducing students of all ages to the many diverse attributes of steel"
The Fairless Award recognizes distinguished achievement in iron and steel production and ferrous metallurgy. It was given to Mr David Naylor founder and former Project Director of steeluniversity, Mr Ruth Hambleton Project Manager of steeluniversity, Mr Ian Christmas secretary general of IISI and Mr Andrew Green MATTER Project Manager, University of Liverpool).
The award was established in 1954 in honor of Mr Benjamin F Fairless chairman of the board of US Steel, for his interest in the technology and development of the iron and steel industry.
The Fairless Award program is managed by the American Association for Iron and Steel Technology.
Esmark to supply decking for Pittsburgh hockey arena
Esmark Inc announced that it has won a contract to supply decking for the Pittsburgh Penguins' new hockey arena.
Esmark said that the contract calls for approximately 1,000 tonnes of steel decking and accessories from its Wheeling Corrugating division and it expects to ship steel from plants in Brooke County and Greensville County in southeast Virginia starting in July.
The USD 290 million arena is expected to open in the 2010-11 season.
Mr James P Bouchard chairman & CEO of Esmark said that “We are pleased to be part of the team constructing the Pittsburgh Penguins’ new home. This award, coupled with our recent award to provide similar product for New York’s Freedom Tower, evidences our visible participation and growing presence in the steel decking industry. As a proud premier sponsor of the Penguin’s throughout the season and in the Stanley Cup Playoffs, we at Esmark and Wheeling Corrugating want to wish the Pens well in the quest for Lord Stanley’s trophy.”
Esmark receives notice from NASDAQ
Esmark Incorporated announced that as expected, on May 20th 2008, the Company received notification from the NASDAQ Stock Market that the Company is not in compliance with NASDAQ Marketplace rule for continued listing, because of its failure to file its Quarterly report on ended March 31st 2008.
The notice constitutes an additional basis for delisting the Company's securities from The NASDAQ Stock Market and this additional basis for delisting will be considered when the Company appears before the NASDAQ Listing Qualifications Panel on June 12th 2008.
Any suspension of trading and the delisting from The NASDAQ Stock Market is stayed pending the issuance of a written decision by the hearing panel. Previously, the Company had received a similar notice, dated April 17th 2008 from the NASDAQ staff after the Company failed to timely file its Annual Report for the year ended December 31st 2007.
Siemens JV to build new tramline in Edinburgh
As a member of a consortium led by the construction company Bilfinger Berger, the Mobility Division of Siemens’ Industry Sector has been awarded the order for Scotland’s currently biggest infrastructure project.
The release added that “The two companies are to build a new 19 kilometer long tramline in Edinburgh as a turnkey project worth a total value over EUR 640 million. The contract for the consortium is worth EUR 350 Million, the Siemens share is in the range of EUR 160 million.
The release said that “Phase 1a of the double track tramline is scheduled to be ready for service in 2011. It will connect the city center with the northern suburbs and the airport, which is located 13 kilometers to the west of the city. The plans call for a total of 22 tram stops. As member of the consortium, Siemens will be responsible for the System Intregration, supply of the communications, control and signaling equipment, the electrification and the substations, as well as parts of the track structure itself. A 10 year maintenance contract and the supply of depot and workshop equipment round off the contract.”
Mr Christian Roth MD for Siemens Transportation Systems UK a part of the Mobility Division of Siemens Industry Sector said that “Siemens has a proven track record in the international light rail market for delivery and integration of infrastructure on time and to budget. Involvement in this prestigious project is an important milestone for Siemens in Scotland, where Siemens plc currently employs over 2900 people across numerous industries from transport to power generation to financial services.”
Pakistan to encourage local production of wind turbines
Mr Askari Taqvi minister for environment & alternate energy of Sindh province said that the government will provide all possible support to JVs between international and local companies for manufacturing wind turbines in Pakistan.
Mr Taqvi said that foreign manufacturers were delaying supply of wind turbines to wind projects for three years and beyond. He added that "If we can locally produce wind turbines with foreign collaboration here, our independent power projects can install their wind mills early. This is the only way to put up wind mills on a fast track basis to meet energy shortages in the country."
He said that Sindh government will provide them all necessary infrastructure including land, utilities and other facilities. "Besides, we will allow 100% repatriation of profits and technical fee."
Mr Taqvi said that the government will also arrange meetings of foreign manufacturers of wind turbines with local entrepreneur s. He pointed out that few Pakistani companies were manufacturing wind turbines of 3 to 5 kilowatts at a price range of PKR 350,000 to PKR 700,000 per turbine depending on capacity.
Talking of environment protection, Mr Taqvi said that an action plan was being prepared to ensure effective implementation of environmental laws and discourage pollution. Under this action plan, Environment Protection Agency will increase interaction with all stakeholders and take them on board to discourage environment pollution. He added that "We have already started contacting stakeholders including various industries. We know each other and there will be no problem."
Dubal to ship 100,000 tonnes of aluminum to Japan in 2008
Dubai Aluminum Company Limited expects to ship 100,000 tonnes of aluminum to Japan in 2008, the majority of which will be billet with 52% share, followed by high purity aluminum with 25% share, foundry alloy with 11% share and standard purity with 9% share.
At present, Dubal has the capacity to produce more than 950,000 tonnes of finished aluminum products a year, comprising foundry alloy for automotive applications, extrusion billet for construction, industrial and transportation purposes and high purity aluminum for the electronics and aerospace industries.
A strategic plan is unfolding, the ultimate goal of which is the realization of Dubal's vision to become the fifth largest producer of primary aluminum in the world by 2015, by producing 2.5 million tonnes per year.
Dubal will once again showcase the company's specialized alloy products that are used extensively by Japanese auto part manufacturers at the automotive engineering exposition 2008. The show provides a platform for manufacturers of automobiles, parts and material, testing and measurement equipment, software, car electronics and related companies to exhibit their latest products and technology.
DP World Chennai to pay compensation to Chennai port
DP World Chennai has to pay Chennai Port Trust INR 91.51 crore as compensation for not achieving the minimum container throughput of non transshipment traffic containers not transshipped in neighboring ports of Colombo, Singapore, Port Klang, Dubai and Salalah. It also paid a demand draft of INR 17.78 crore to Chennai Port Trust.
Chennai Port Trust has raised a demand for the balance payment of INR 27.65 crore from DP World Chennai for non achievement of non transhipment traffic between December 2006 and November 2007.
DP World’s contention is that containers meant for neighboring ports should also be considered as containers falling under the non transshipment traffic category. However, the Port Trust did not accept this argument citing the norms prescribed in the license agreement between ChPT and the then Chennai Container Terminal Limited in September 2006.
The agreement says that Chennai Container Terminal Limited shall develop Chennai as a hub port and ensure that within three years from the date of commencement of operations, main line vessels also call on the port. It shall be a condition for the licensee that the non transshipment traffic norms for CCTL would be 20% of the total traffic in the third year, 25% in the fourth year and 30% from the fifth year onwards.
The agreement further said that the intention of the licensor to develop Chennai as a hub port is not only to provide for direct sailing between neighboring ports and Chennai. The purpose of privatization of the terminal is to develop Chennai as a hub port and not to get compensation for the failure of the licensee to fulfill its commitments.
Pakistan approves 2,200 MW power projects
Daily Times reported that Pakistan government has approved several projects of power generation for execution on fast track basis to generate additional 2200 MW electricity to the national grid within 1 year.
Mr Fazal Ahmed Khan MD of Pakistan Electric Power Company said that, in order to bridge the gap between generation and consumption, all resources are being tapped with a view to enhance power generation capacity in the country. He apprised that the contracts for setting up of 425 MW Nandipur and 525 MW Chichoki Mallian thermal power projects have already been signed.
Mr Khan said that the system losses of PEPCO were reduced to 20.6% till the end of April 2008 during the current fiscal year. He said the number of PEPCO consumers were likely to reach 18 million by the end of June 2008.
Ningbo Zhehua JCOE pipe project completes trials
It is reported Ningbo Zhehua Heavy Pipe Manufacturing Company JCOE pipe production line successfully produced the first batch of JCOE pipes and it will be formally put into commercial production soon.
Ningbo Zhehua Heavy Pipe Manufacturing Company started producing spiral pipes 4 years ago.
Longgang commissions slag granulation facility
It is reported that a new production line with an annual output of 600,000 tonnes slag powder at Longgang Xingda Company successfully put into production at the beginning of March, through the meticulous organization and debugging by technical staff, it is running well.
Granulated blast furnace slag powder is an economy and environmental protection new construction material. It adopts advanced technology and modern management method, process the water residue, non-magnetic steel residue and culm cinder etc solid waste resources from Xigang Group, is a sustainable development industry that change waste to treasure.
It can be said that the granulated blast furnace slag powder can substitute cement on 20% to 70% large proportion, it can greatly ease the world’s cement raw materials crisis, and reduce the air pollution. At the same time, the concrete collocated by this material has good mechanical properties, good corrosion resistance, and can lower the construction cost.
Tianjin Pipe rated as best supplier for CNOOC Bozhong project
It is reported that recently, Tianjin Pipe Group participated in the China National Offshore Oil Corp’s Bozhong 34-1 project commendation meeting and was appraised as the best supplier.
As per report during the oil field construction period it mostly needed 114.3mm diameter API X65 pipes in 7.1mm thickness.
Tianjin Pipe Group overcame much difficulties, and produced high quality pipeline steel for China National Offshore Oil Corp.
Bozhong 34-1 oil field locates in Bohai bay sea area is the key project of China National Offshore Oil Corp. It was completed in December, 2007 and has about 20 production wells, the oil peak daily production is expected to reach 12,000 barrels.
Jiugang invests CNY 3 billion to develop recycling chain
According to the recent plan for development of recycling activities in Jiugang, Jiugang will invest CNY 3,029,240,000 in five years form now on.
It would implement 45 projects to construct an industry chain of recycling economy, through adopting no or less waste production processes and seeking optimum associations of production factors and resources.
MCC Liaoning Dragon exports 90% production
It is reported that 90% ERW weld pipes of MCC Liaoning Dragon Pipe Industries Company were exported to foreign markets. The current production on line is the straight slot welded pipe for long distance gas transportation ordered by Algeria.
In 2007 the ERW630 straight slot welded pipe production line with the world’s most advanced level was formally put into production in MCC Liaoning Dragon Pipe Industries Company. After the operation of the production line, the annual output of high grade straight slot welded pipe is 300,000 tonnes.
According to the national standard, US Petroleum Institute API standard, Xi’an Pipe Institute the most authoritative welded pipe supervision enterprise think that the quality of welded pipes produced by MCC Liaoning Dragon Pipe Industries Company can fully reach the requirements.
As per reports, during the trial production period of ERW, China Metallurgical Group handed the 40,000 tonnes order form from Papua New Guinea to Dragon Pipe Industries Company. At present, the goods had been delivered. This year, the company signed supply contracts with Belgium, Saudi Arabia, United Arab Emirates, the United States and other countries.
From January to March, the company totally produced 33,000 tonnes of pipes for oil transportation and another 50,000 tonnes of order form are in the process of production.
Baosteel steps up earthquake relief effort in Sichuan
It is reported that Baosteel donation to Sichuan quake area in form of money and materials has totaled CNY 67 million.
Baosteel has also been aiding the quake stricken areas with color coated sheet houses valuing CNY 50,000.
1. The first lot of mobile houses was delivered at the disaster area of Dujiangyan.
2. The second lot was delivered to the severely afflicted area of Hanwang, Deyang.
3. The rest ones are under overtime fabrication at full speed so as to be delivered to the disaster areas at early dates.
Sinosteel Anhui Tianyuan to set subsidiary in Maanshan
It is reported that for the integration of its resources and develop its trade business, Sinosteel Anhui Tianyuan Technology Company revealed that it would set Sinosteel Anhui Tianyuan Trade Company.
The company plans to invest CNY 5 million to set up the registration of the wholly owned subsidiary in Maanshan city with its business including the sales of light industrial products, chemical products, machinery and equipment, the services of design, production and agent announcement of domestic advertisement, project design and consultation, and export and import of all kinds of goods and technology.
The company also revealed that it has twice signed purchasing contracts on ferrosilicon with Sinosteel Qinghai Ferroalloy Company, an accumulative monetary amount of CNY 8.025 million. The company transferred the above 1000 tonnes of ferrosilicon to its customers, which gains a profit of nearly CNY 200,000. Besides, the company also plans to have related transactions with Sinosteel Qinghai Ferroalloy Company though the wholly owned Sinosteel Anhui TianYuan Technology Company with expected procurement of a ferrosilicon valued no more than CNY 20 million.
Taiwan to make Chinese investment process easier
XFN-Asia cited Mr Yiin Chii Ming Taiwan’s new minister of economic affairs as saying that his top priority is to ease restrictions on investment in China to allow local industry to be more competitive.
He said that “There is an urgent need for deregulation of investment limits and we will discuss this with other government agencies including the Mainland Affairs Council.”
Mr Yiin said Taiwan now lets companies invest up to 40% of their net worth in China, but many listed firms are already at or near that level but declined to say if the government would raise the 40% ceiling gradually or remove it all at once.
He added that the government may also relax other restrictions on investment in China by Taiwan’s entire important high tech sector but did not elaborate. Mr Yiin said “We will draw up a complete blueprint in order to facilitate strategic alliances between our industries and their China counterparts. Such cross strait integration could attract international firms to join in to help our local industry’s global development. My view is that domestic gasoline prices should fully reflect raw material costs on the global front.”
Jiangsu Golden Horse gets land for expansion project
China Jiangsu Golden Horse Steel Ball Inc, a leading Chinese manufacturer and supplier of ball bearings, has been granted approval by the local government to acquire additional land for manufacturing expansion.
Golden Horse was granted with the Republic of China, the opportunity to reserve 200 MU of sought after prime Industrial Lands. The company currently has 80 MUs, thus resulting in a total of 46 Acres of land use. With the additional land capacity, the company plans to increase its storage and manufacturing facilities. This government land grant to China Jiangsu Golden Horse Steel Ball Inc is in accordance with the government's 5 year plan that calls to modernize and upgrade the development of steel ball line processing technology.
The company will be better positioned to meet the increased demand for ball bearings, thus resulting in higher casting and machining volumes. With this recent strategic land expansion we will improve our margins and profitability in the future.
Golden Horse along with its affiliates and controlled entities is one of the top five manufacturers of steel ball bearings in China. The Company produces over three billion ball bearings annually of various specifications along with its development of over 15 new products, such as stainless steel balls, aluminum balls, and ceramics balls. In addition, the Company continues to export its products to over twenty countries worldwide including the USA, Japan, Brazil, India and Germany.
Oil output slows down in Sichuan
Bloomberg reported that Petro China Co and China Petroleum & Chemical Corp said that some gas wells in Sichuan province remain shut after the country's biggest earthquake in 32 years struck the area.
China National Petroleum said PetroChina has cut its daily gas output from Sichuan by about 14% or 5.6 million cubic meters as a safety measure.
China ordered coal mines, chemical plants and oil and gas wells affected by the 7.8 magnitude earthquake to halt operations to avoid further casualties.
Norilsk Nickel to strengthen business in China
It is reported that Mr Denis Morozov GD & chairman of the management board of MMC Norilsk Nickel visited t China as a member of delegation that accompanied Mr Dmitry Medvedev president of Russia on his first official trip to this country.
Mr Morozov participated in the official welcome ceremony for Mr Medvedev by Mr Hu Jintao president of People Republic of China.
MMC Norilsk Nickel is a long standing nickel supplier to the stainless steel producers of China and sustained growth of the Chinese economy boosted demand for almost all Norilsk products and provided new possibilities for broader and stronger business contacts with Chinese enterprises.
Avtovaz plan to buy 50% in Kazakhstan Azia Avto
Interfax cited Mr Boris Aleshin president of AvtoVaz as saying that OJSC Avtovaz is looking into the possibility of acquiring a 50% stake in Kazakh assembly enterprise Azia Avto.
Mr Aleshin said that both parties were in the very first phase of negotiations. He said that we will conduct standard checking procedures. AvtoVaz expects that the company will produce 75,000 automobiles a year. Mr Aleshin said that AvtoVaz would at least engage in welding, painting and possibly car frame pressing.
He said that "Anything that is profitable to produce, we will produce however we are largely looking at this facility as base for our own production. In addition to Lada models, we could assemble Nissan Renault models."
Mr Aleshin also said that Avtovaz has plans for organizing Lada assembly in Cuba for the country's domestic market as well as the Latin American market.
NLMK makes mandatory offer to minority shareholders of its Russian subsidiaries
Novolipetsk Steel a leading Russian steel producer announced that it has initiated a mandatory offer to purchase the outstanding share capital of its subsidiaries Stagdok, Dolomite and Altai-koks. The offer is made in accordance with Russian legislation and will enable NLMK to more efficiently manage these subsidiaries.
The terms and conditions of the mandatory offer to the minority shareholders of Stagdok, Dolomite and Altai-koks are as follows:
1. The price has been set based on the opinion of the American Appraisal and confirmed by the All-Russian public organization the Russian Society of Appraisers by means of an independent valuation report exercise.
According to the mandatory offer, the price per share of Stagdok is RUB 3,981.56, the price per share of Altai-koks is RUB 15.14 and the price per share of Dolomite is RUB 913.26.
2. The list of the minority shareholders of the entities mentioned above will be prepared as at July 7th 2008. The shareholders’ claims will be considered valid if it is submitted to NLMK’s agent, CJSC Investment Company Libra Capital no later than July 7th 2008.
3. The payments to minority shareholders will be effected within 25 days of the July 7th 2008 in accordance with the submitted banking requisites and postal addresses.
Gazprom to support gas exploration in Vietnam
It is reported that Mr Alexey Miller chairman of Gazprom lead a delegation to the Socialist Republic of Vietnam and met Mr Nguyen Minh Triet president of Vietnam, Mr Nguyen Tan Dung prime minister of Vietnam and Mr Truong Tan Sang a permanent member of the Presidium of the Central Committee, Communist Party of Vietnam.
The parties discussed the development prospects for Gazprom cooperation with Vietnamese companies in the oil and gas sector.
During the visit Mr Alexey Miller met Mr Tran Ngoc Canh president & CEO of Petrovietnam Vietnam National Oil and Gas Group and its chairman Mr Dinh La Thang also. The meeting participants discussed the progress in implementing the existing projects of Gazprom in the Socialist Republic of Vietnam and agreed on specific steps to be taken with a view to intensify work in promising directions.
In particular, special attention was paid to the prospects for cooperation in recovering Vietnamese offshore hydrocarbon reserves, to Gazprom’s possible involvement in elaborating a general layout for the Vietnamese gas industry development and in the projects in third countries, as well as to cooperation in personnel training.
A solemn ceremony of signing the Agreement for Further Cooperation between Gazprom and Petrovietnam took place during the meeting. The Agreement provides for geological exploration and further development of four new blocks in offshore Vietnam. Vietgazprom Joint Operating Company will be the project operator.
The Agreement also provides for setting up a Gazpromviet joint venture to ensure the companies’ participation in the oil and gas projects implemented in Russia and other countries. Zarubezhneftegaz will represent Gazprom in the joint venture.
Norilsk Nickel is the IR leader in Europe
MMC Norilsk Nickel announced that it is recognized as the absolute investor relations leader in European metals and mining industry.
The survey among more than 1,300 analysts published by Institutional Investor magazine on May 20th 2008 shows that MMC Norilsk Nickel is the only Russian company placed among the top 10 players in the industry, which were rated best by both buy side and sell side analysts. The survey covered the total of 32 industries.
Mr Dmitry Usanov head of Investor Relations at MMC Norilsk Nickel, said “High corporate governance standards and informational transparency have long been inherent in Norilsk Nickel’s shareholder and investor relations as well as in all other areas of the Company’s activity. We are delighted to see that the efforts of the management of MMC Norilsk Nickel, the Russian stock market leader, have been recognized by European investment professionals. We appreciate the trust and support from our minority shareholders.”
Zaporizhtransformator order book up by 80% YoY
It is reported that Zaporizhtransformator reported an order portfolio increase for 2008 of 80% YoY compared with the same period of last year to USD 610 million.
This amounts to 85% of the total 2008 sales volume that was planned by the sales department. As the sales department announced by the end of July the order book for 2008 will be filled completely.
(Sourced Millennium capital)
Ukraine considering USD 2.5 billion gas pipe upgrades
Bloomberg cited Mr Viktor Yushchenko president of Ukraine as saying that Ukraine is looking for USD 2.5 billion from the European Union to upgrade its natural gas pipeline system and increase the volume of fuel that can be shipped to the region.
He said that "Such plans will help to strengthen the energy security of all countries within the European Union. The European Commission will consider the request for funding later this year.”
Mr Yushchenko said around 125 billion cubic meters of gas passes through Ukraine every year to Europe. The country's pipeline capacity is 180 billion cubic meter.
Mr Yushchenko said in a news conference with Mr Ilham Aliyev president of Azeri Mr Yushchenko said that they would meet again in early July to discuss transportation of Azeri oil to the EU. For us it's very important that we complete the project of delivering Caspian oil from Azerbaijan to the countries of the European Union."
BHPB affirms development of nickel project in Philippines
It is reported that BHP Billiton of Australia will honor its agreement with local partner Asiaticus Management Corporation to develop a USD 1.5 billion nickel project in Davao Oriental province in Philippines despite delays.
Mr Lito Atienza environment secretary of Davao Oriental province said that "I have the assurance of the BHP top management that they will go on with the project. They said they are willing to move forward to meet the timeline. Both parties seem to be agreeable to resolve the issue."
Mr Atienza advised Amscor to be more patient, saying that the Pujada nickel project in Davao Oriental is a big ticket project that should not be rushed. He said "They are still in the exploration stage. It is still along way before the company starts producing nickel. They need to have a clear blueprint that would guide them in their mining operations."
Mr Ruben Tan VP of Amscor earlier asked Mr Atienza in a letter to rescind the JV agreement between the company and BHP Billiton, claiming that the Australian company misled Amscor to believe that actual production would start by 2010. Mr Tan informed Mr Atienza that local residents and host communities would immediately benefit from the project if production drillings started shortly.
BHPB has not conducted a pre feasibility study focusing on the Pujada peninsula in Davao Oriental. The area has an estimated nickel reserve capacity of 150 million tonnes at 1.3% concentration. The nickel processing plant is expected to have an annual capacity of 50,000 tonnes.
Yieh Hsing expands outputs of stainless steel wire rod
It is reported that Yieh Hsing Enterprise Company expanded carbon wire rod and stainless wire rod output due to the strong demand and stable nickel price.
A spokesman said that the company has expanded its monthly output to 5,000 to 10,000 tonnes since the end of last year. Sales volume last year reached to about 37,000 tonnes and the average monthly sales was only 3000 tonnes. It expanded carbon wire rod output since the strong demand from slide fastener manufacturing industry in Taiwan.
Yieh Hsing also expanded its stainless wire rod output to 6000 tonnes to 7000 tonnes from 5000 tonnes to 6000 tonnes at the end of 2007 and will keep at this level. It is learned that the sales will increase due to the stainless wire rod export increased.
Acerinox hikes June stainless alloy surcharges
Spanish stainless steel producer Acerinox has announced to raise its stainless steel surcharge in June 2008.
Acerinox's surcharge for 304 stainless steel will reach EUR 1,892 per tonne from EUR 1,809 per tonne in May 2008, its 316 stainless steel surcharge will raise from EUR 3,365 per tonne to EUR 3,389 per tonne and that for 430 stainless steel will increase to EUR 492 per tonne from EUR 383 per tonne.
Acerinox has raised its price for four months in a row. The move is expected to have a knock on effect as other producers follow suit.
European Nickel buys stake in Philippine nickel laterite mines
Platt reported that European Nickel has bought a 19.3% stake in Toledo Mining from Australian Investika and Murray Morgan Investments. Investika chairman Mr Chris Kyriakou is also chairman of Toledo.
European Nickel has also acquired an 8.7% stake in the Berong Nickel in the Philippines from Investika. It will pay USD 48 million for the two purchases.
Toledo owns 56.1% of Berong Nickel, which holds the Berong, Moorsom and Long Point nickel laterite deposits. In addition, Toledo has a 52% stake in the Ipilan and 58% interest in the Ulugan nickel laterite deposits.
Toledo has estimated the four deposits of laterite nickel mineralization consisting of over 375 million tonnes at around 1.3% nickel with a total nickel content of more than 4.9 million tonnes. The deposits are seen as having the potential to significantly grow beyond the current Australasian Joint Ore Reserves Committee resource of 9.92 million tonnes at 1.55% nickel as of June 2007, estimated for the mineral production sharing agreement area at Berong.
This transaction expands European Nickel's strategic nickel laterite interests in the Philippines with two large deposits, which initial testing has shown to be amenable to heap leaching.
Berong Nickel is currently generating positive cash flow through direct ore shipping to Australia and China from the Berong operations and funds are likely to be re-invested in Berong Nickel to further expand operations.
Xstrata chrome production in Q1 of 2008 up by 4% YoY
Xstrata has announced that chrome production in the Q1 of 2008 had risen by 4% YoY to 305,000 tonnes.
Chrome is an essential ingredient in the manufacture of stainless steel to ensure toughness and resistance to corrosion.
Jinchuan accelerates IPO process
It is reported that Asia’s largest nickel producer Chinese Jinchuan Group Limited’s listing plan of is on the track.
As per report, the listing plan of JNMC was locked in A-share at present and the financing scale is expected to excess that of China National Coal Group and China Railway Construction Corporation, which were listed in Shanghai Stock Exchange.
JNMC has 5 shareholders at present with the controlling shareholder of Gansu Provincial Government and the other four are China Development Bank, Baosteel, TISCO and Public Transportation Investing Company in Gansu province.
Profit after taxes of JNMC in 2007 was CNY 6.016 billion and the above-mentioned 5 companies hold 69.5%, 16.5%, 6% and 2% shares respectively in JNMC according to their dividends.
Indian iron ore exporters to cash on China and Rio Tinto spat
ET reported that Indian iron ore miners are in for further gains from high price of iron ore in Chinese spot markets.
The current spat between the Australian metals major Rio Tinto and Chinese steel companies over pricing and deliveries is expected to create further room for iron exports from the country into Chinese spot market. The controversy has been triggered by a directive from the China Iron and Steel Association to its member mills to boycott purchase of Rio Tinto iron ore from the spot market. The association has said that the Australian firm is failing to honor its delivery commitment and taking advantage of the high spot market prices to push larger quantity of ore under this route.
The Indian mining companies may also gain from the rising freight charges that have put long term price negotiation between Australian and Chinese companies on a sticky wicket.
As per report, Indian exports has been one of the driving forces for a substantial rise in spot ore prices that are hovering around USD 210 a tonne on CIF basis.
China may turn net coal importer - Industry group
According to the head of the China Coal Transport and Sales Association, China the world's top coal producer and consumer, may turn into a net coal importer this year due to shipping bottlenecks.
Mr Yang Xianfeng general secretary of the association told a conference that "Because of shipping bottlenecks, power plants in southeast coastal regions need to import more coal, while coal exports will be limited by policy.”
In 2007, China was a small net exporter, with exports of 53.17 million tonnes slightly exceeding imports of 51.02 million tonnes despite being a net importer for the first time in history during the first half of the year. But Mr Yang would not give his forecast for 2008 imports.
He said that Beijing plans 2008 coal export quotas of 53 million tonnes. So far, it has issued only the first batch of 31.8 million tonnes or 60% of the total.
With domestic coal prices at record highs, in part due to a rebound in exports, there has been speculation Beijing might delay handing out the second batch of the quotas. But Mr Yang did not comment on the second batch.
He said Chinese coal demand would grow by 6 %to 8% to 2.74 to 2.82 billion tonnes in 2008 while its production capacity would stand at 2.87 billion tonnes.
Mr Wang Xianzheng head of China Coal Industry Association said that earlier the Chinese coal market was in balance, despite some regional tightness that has led to closures of power plants.
BHPB to spend ZAR 11 billion on coal projects in South Africa
Mining Weekly reported that the South African coal unit of BHP Billiton, BHP Billiton Energy Coal South Africa is spending ZAR 11 billion on two large new local coal projects, one of them the biggest single energy coal initiative the global group has ever undertaken.
As per report BHP Billiton Energy Coal South Africa is investing ZAR 7.5 billion (USD 975 million) in the Douglas Middelburg Optimization project, which is bigger than anything carried out before as a single project and ZAR 3.5 billion (USD 450 million) in the Klipspruit project, the processing plant for which is a joint venture with rival Anglo Coal.
Underground mining at Douglas will come to an end later this year, allowing the creation of one large DMO opencast operation that combines the reserves of both the Douglas and Middelburg collieries.
Mr Wayne Isaacs president & COO of told Mining Weekly that “Construction companies are mobilised on the DMO site, civil work is under way and the establishment of a new mining area has begun. Pre approval allowed the Klipspruit coal processing plant to emerge from its starting blocks early. Foundations have been laid and steel erection is thus under way for the Klipspruit processing plant, which Becsa is building in joint venture with Anglo Coal.”
Mr Isaacs said that the DMO also involves the construction of large processing plants, which have still to be equipped internally with the usual screens and cyclones, and externally with rail load outs, bins and associated equipment.
Becsa has made great strides in the last year to restructure and become the operator of three tier-one assets DMO, Klipspruit and Khutala tier one assets being long life and low cost. When the projects are completed, there will be three strong tier one assets on which to build the base for future projects.
Ferrosilicon price on upward trend in Northwest China
Ferrosilicon price has been rocketing in Northwest China. Mainstream price has reached CNY 9500 to CNY 9600 per tonne for 75# FeSi and CNY 9100 to CNY 9300 per tonne for 72# FeSi. In export market 75# FeSi is quoted at USD 1900 per tonne FOB yet is actually traded at USD 1830 to USD 1880 per tonne.
The price rise is beyond expectation. Producers are increasingly uneasy about future market in view of the over fast price growth. Upward momentum from raw materials weakens as prices for semi coke and ferric oxide sheet stabilize. Semi coke is priced at CNY 1200 to CNY 1300 per tonne and ferric oxide sheet is offered at CNY 1700 to CNY 1800 per tonne.
In the meanwhile downstream purchasing accelerates with increasing orders from both home and overseas markets. Foreign buyers carry out purchasing plan in advance since FeSi productions and transportations will be severely restricted during the Olympics in the third quarter.
Due to rapid price hikes and robust demand in home market, many producers mainly deal with domestic market and seldom consider export market. This decreases spot resources in export market and drives up export price. Besides, due to the looming Olympics, restrictions on FeSi transportations has been implemented and it is now difficult to transport FeSi by trucks.
(Sourced from MySteel.net)
Chinese ferrosilicon exports may see restrictive policies
It is reported that, despite climbing ferrosilicon price, buyers are still enthusiastic about purchasing. But many producers slow down order signing to ward off risks, in view of tight supply and difficult contract fulfillment.
According to a Gansu based trader, it has suspended export orders since dangerous goods might be embargoed and ferrosilicon can hardly arrive at Tianjin Port in June 2008.
On the other hand, domestic price responds quickly to market operation while export price react much more slowly, hence producers mainly feed home market on account of possible transportation restriction.
Transaction price for spot resources has approached CNY 9000 per tonne in home market. Exports can promise fewer profits than domestic sales, given some extra costs such as packing charges. Though ferrosilicon embargo in Beijing rim in June 2008 has not been confirmed, transportation will become difficult inevitably.
(Sourced from MySteel.net)
CIL to develop 26 abandoned coal mines
It is reported that Coal India Ltd is all set to float global tenders within a month for developing 26 abandoned mines on a joint venture basis.
Speaking on the sidelines of the annual conference, organized by National Institute of Personnel Management, Mr PS Bhattacharya chairman of CIL informed that the 26 mines having an expected coal reserves of around 10 million tonnes are already identified. Of these, around 10 mines are expected to be rich in coking coal, while the others will produce non-coking coal varieties.
Mr Bhattacharya added that CIL would be floating expressions of interest to invite global technology providers to develop these mines on a joint venture basis with CIL.
Petmin acquires 25% stake in Veremo Holdings
Petmin Limited announced that it now holds a 25% interest in Veremo Holdings Limited, following the conclusion of the transaction announced in November 6th 2007.
The balance 75% of the equity is held by Framework Investments Limited, a wholly owned subsidiary of Kermas Limited a substantial indirect shareholder in South Africa's Samancor Chrome Limited.
Petmin has settled the balance of its obligations in terms of the transaction through the payment of ZAR 4,275,000 in cash and the issue of the 7,077,586 new ordinary shares of ZAR 0.25 at an average price of ZAR 4.50, representing a premium of 25% to the Volume Weighted Average Share Price on October 31st 2007 the date on which the transaction was concluded. The new shares are expected to trade from May 30th 2008 and the issue of shares represents an increase of 1.34% in the issued share capital of the company.
Mr Bradley Doig COO of Petmin said that "This acquisition adds iron to Petmin's portfolio of anthracite and silica assets and takes the company a step further on its growth path of developing into a multi commodity business."
Petmin and the Kermas Group will develop and commission the Veremo project, which is a substantial iron ore deposit on the eastern limb of the Bushveld Complex near Stoffberg in Mpumalanga Province.
Ascom to acquire major stake in Algerian Company
It is reported that Egypt's Asec Mining, also known as Ascom, is planning to acquire 70% of a company in Algeria instead of establishing a new company in the North African country.
Asec Mining did not name the target company but in a statement to the stock exchange said that its capital was EUR 5.7 million.
The statement added that Ascom had previously planned to set up a new company in Algeria.
Coal shortages effecting power production in China
It is reported that coal shortages have forced 39 power plants in China to halt generation with 6.37 GW of capacity affected, as fuel inventories further decline.
China’s State Electricity Regulatory Commission said that among the most affected provinces, Hebei only has 5.1 days worth of consumption and Hunan 3.4 days. It added that Anhui has slightly recovered with 3.7 days of supply.
The Commission said that the situation has worsened from earlier this week when the SERC reported 32 power plants had been closed, affecting 4.82GW of capacity.
China's total installed power generating capacity was 713GW at the end of 2007 of which around three quarters were coal fired. The government's warning level for coal inventories is seven days.
The Commission said that the in quake hit Sichuan Province, coal stockpiles at power plants averaged nine days of supply as of Wednesday. But one plant is running out of fuel and another eight are below the seven day consumption line. It added that the shortfall comes after coal prices have surged over recent months.
Although higher coal prices are enough to trigger a state mandated mechanism to hike power tariffs, industry observers don't expect this to come any time soon as the government has to fight inflation, especially after the Sichuan quake. As utility firms are squeezed between rising costs and capped tariffs, they are reported to be unwilling to stock up on the fuel.
Rio Tinto and Imperial College plan the mine of the future
Rio Tinto and Imperial College London have established a new GBP 6 million (USD 12 million) research centre aimed at developing advanced mining and mineral processing techniques to extract minerals from deep within the Earth.
The GBP 6 million funds will be used over a five year period and will see six post docs and 12 researchers employed at Imperial’s Department of Earth Science and Engineering to carry out research in this field.
The institute will push forward the development of innovative mining technologies and techniques to improve the extraction of minerals, whilst minimizing environmental impacts. Research will be undertaken to develop a deeper understanding behind the fundamental science of rock fracturing so that mines can be developed and operated with increased confidence. Researchers will also design new sensing technology for use in block caving to measure the underground area containing minerals and the size and shape of these deposits, which would increase the efficiency of this mining process.
Rio Tinto said that minerals used to produce metals such as copper, used in electrical wiring or nickel, used to make stainless steel, are becoming increasingly hard to find and recover using traditional mining methods and because of this extracting these minerals efficiently from deeper underground is becoming an important focus for mining research.
Rio said that the Centre for Advanced Mineral Recovery will develop a range of new mining technologies that use less energy to mine more minerals from hard to reach places deep underground. Scientists will be developing more efficient techniques for block caving. This exploits the natural fractures in rocks so that they break under gravity rather than by using explosives, making the mining process cheaper and safer.
Rio said that “New ways of mining minerals which use acids to dissolve metals in rocks below the Earth’s surface will also be explored. These dissolved metals could then be pumped above ground and extracted from the acids.”
Miners demand reopening of SAIL dolomite and limestone mines in Orissa
It is reported that a mine workers group Birsa Sangram Samiti staged a demonstration in Orissas Sundergarh District demanding the reopening of the closed dolomite and limestone mines that had left them jobless. The mines set up in 1960 provided jobs to locals, but made them jobless after 1990.
Mr Bridyadhar Dev president of the Bisra Sangram Samiti said that “After the mines were closed down we have become jobless and are facing a lot of problems. It has become difficult for us to earn our living. The closure of the mines has affected other businesses as well. The economy is being hit and we have no alternative also.”
He added that the villagers want a solution to their problems and have also demanded that the cement factory, which was closed, should be re opened.
Steel Authority of India officials said that the company never intended to close the mines but the deteriorating quality of stones and the change in blast furnace technology were reasons for their closure. Mr SR Patnaik AGM of SAIL said that “In fact, it was trade unions that wanted the mines to close down. SAIL has been opening it for generating employment. The quality is suitable for cement grade, so we always want people to benefit from the mines.”
Bolivian mining output in the Q1 up by 62% YoY
According to local press reports, quoted by Business News Americas, the value of Bolivia's mining production grew 62% YoY in first quarter 2008 from USD 310 million to USD 504 million. Tin contributed USD 70 million to the total, up by 44% YoY.
The report said that tin value increase was largely due to higher prices. It said that mine production of tin in concentrate was reported to have only increased by 2.5% to 3,933 tonnes. However lead, zinc and silver volumes were boosted by the start up of Apex Silver Mines large San Cristobal project in the second half of last year. Zinc concentrates are Bolivia’s most important non ferrous metal exports.
According to BN Americas Bolivia's mining sector expects to receive investments of roughly USD 410 million in 2008. A spokesperson from the Bolivia's mining and metallurgy ministry said that “The private sector will pay out nearly USD 244 million. The state will cement investments of USD 112 million in JV contracts and USD 53million in ventures of its own.”
Titan Uranium ink agreement with JOGMEC
Titan Uranium Inc a North American generative explorer focused on identifying high value uranium exploration projects for JV with industry partners announced the signing of a Letter of Agreement with Japan Oil, Gas and Metals National Corporation.
The Letter of Agreement supersedes the Letter of Intent between Titan and JOGMEC that was announced on February 11th 2008. The agreement confirms and summarizes the agreement governing the option whereby JOGMEC can acquire an undivided 50% working interest in Titan's Virgin Trend Project by funding CAD 9 million in exploration programs managed by Titan. The Letter of Agreement also calls for annual funding of CAD 3 million in each of the first three years.
Vesting of a 50% working interest will be at JOGMEC's election after funding a total of CAD 9 million by the end of the third year of the agreement. Upon completion of the earn in phase, JOGMEC and Titan will form a joint venture with each party holding a 50% participating interest in the Virgin Trend Project. Further, JOGMEC has the option to provide an additional CAD 6 million to obtain the exclusive marketing rights of the mineral products of the joint venture for a 10-year period from first commercial production.
Mr Stewart minister of enterprise and innovation of Saskatchewan said that “The government fully supports collaboration between local and foreign investors to develop Saskatchewan's abundant resources. Japan is a major trading partner with our province and we welcome this new investment in our uranium industry."
JOGMEC is a prominent Japanese corporation, funded by Japan's national and municipal governments as well as by private-sector corporations, with a global mandate to seek a stable supply of natural resources for Japan.
Gunnedah Shire Council urges rail access improvements
ABC News reported that the Gunnedah Shire Council tells the New South Wales Government to improve access over the railway line through the town as the coal mining industry grows.
As per report Gunnedah Shire Council make a submission on several issues surrounding the development of a new open cut coal mine at Sunnyside.
Mayor Ms Gae Swain said that there are several concerns that centre on the additional pressure being placed on transport infrastructure. But she said that there are also growing delays as trains cut Gunnedah south from the central business district in the north.
She said that "That's a concern over health issues. The hospital and the ambulance are on one side of the railway line and the CBD area is on the other and there's been some concern raised about the amount of time it's taking for trains to go through."
NUM calls for nationalization of coal mines to lower Eskom costs
South Africa's largest mineworkers union, the National Union of Mineworkers on Friday called for the nationalization of the country's coal mines as a way of dealing with the country's energy crisis.
Speaking at the union's central committee meeting, Mr Senzeni Zokwana president of NUM said that “If the government was concerned about the high cost of coal and the high fuel costs, it should nationalize mines and turn Sasol into a Stateowned entity.”
He added that "If the ANC is saying that the price of coal is a problem why must you buy coal that is expensive, why can't you nationalize one mine or two or three and begin to say this mine is State owned to feed Eskom.”
Mr Zokwana said that the troubled electricity utility has cited the high cost of coal as one of the key reason why it needed to raise its tariffs.
Eskom has applied to the National Energy Regulator of South Africa to increase its tariffs by 60% in the 2008/9 financial year, after it was granted a 14.2% increase last year.
Linggang gets approval to purchase iron ore mine from parent
Linggang Stock announced that the program of Linggang Group to transfer Baoguo iron ore stake to Linggang Stock and the result of assets evaluation have gained approval form the National Assets Department.
As per report Lingyuan Steel Group can transfer its 100% stock rights of Baoguo iron ore mine to Linggang Stock by the way of directional increasing its shares and cash transfer. The estimated net assets were valuing at CNY 2.018 billion and the value increasing rate was 340.26%.
Linggang Stock recently disclosed the additional issue plan after the adjustment, the company plans to non publicly issue no more than 193,9 million shares and at least 64.63 million shares to specific targets the base price is CNY 8.51 per share, the fund raising is not expected to exceed CNY 1.5 billion.
Linggang Stock plans to use this method to purchase 40% stock right of Lingyuan Steel Group’s Baoguo iron ore mine, at the same time, to increase investment of CNY 296 million to Baoguo iron ore mine. The goal of the company is to own a long term and stable iron ore concentrate supply base.
China rescuers rush to reach trapped coal miners
AP reported that rescuers rushed to reach 24 coal miners trapped underground by China's' earthquake almost two weeks ago as the government sharply raised the quake's death toll, warning it could exceed 80,000.
Mr Wang Dexue deputy chief of the government's work safety department said that “It was not known if the miners were dead or alive, but authorities were hoping for the best until they learned otherwise.”
Mr Wang during a news conference in Beijing told that "We have had the miracle in the past that a miner was found alive after being trapped underground for 21 days. We are carrying out rescue work on the assumption that they are still alive. We absolutely will not give up."
Mr Wang without giving further details said that the 24 miners were trapped in three mines in Sichuan province.
The State Council, China's Cabinet said that the latest confirmed death toll for the quake was 60,560 and listed 26,221 people as still missing.
36 mining projects to open in Iran
Mr Ahmad Ali Harati Nik chairman of the executive board of the Iranian Mines and Mining Industries Development and Renovation Organization announced that thirty six mine and mining industry projects will begin production in February 2009.
Mr Ali Harati said that some USD 6.14 billion of government funds has been allocated to the projects, which were launched during the current Iranian calendar year and are being supervised by IMIDRO.
He added that these projects will raise the country’s copper, steel, aluminum and iron ore production by 250,000 tonnes, 15.8 million tonnes, 505,000 tonnes and 25 million tonnes respectively.
