African Diamonds plc the AIM listed diamond explorer is pleased to provide a further update received on the 18th January from our Joint Venture partner, De Beers, on drilling results from the AK6 discovery near Orapa, Botswana.A total of 789 macro diamonds weighing 61.34 carats was found in 284 tonnes of kimberlite recovered from drill hole LDD9 giving an average sample grade of 21.
5 carats per hundred tonnes (cpht). The drill hole, in the South lobe of the pipe, went to a depth of 354 metres. Drill hole 9 is part of a 13 hole initial Large Diameter Drill (LDD) programme being undertaken on the 9.
5 hectare pipe. The purpose of this exploration phase is to refine estimates of tonnage, grades and carat value and deliver an inferred resource which will provide input into the conceptual engineering study which is currently underway. Hole LDD 11 is in progress.
Results are awaited from four completed holes and two more are planned. In a further development the modeled size of the AK06 kimberlite is now estimated at 59 million tonnes, an increase of 5 million tonnes on the figure announced recently.Commenting John Teeling, Chairman, said: "These results are very encouraging.
Given the complex mineralogy, high dilution and rock density in this part of the pipe, these results are greater than our expectations. As can be seen from the growing size and significant grades, AK6 is well on the way to becoming a very significant diamond producer."
VEDANTA RESOURCES: Vedanta Resources plc: Unaudited Results for the Third Quarter and Nine Months Ended 31 December 2005 - Third quarter and nine month revenues of $974.
7 million and $2,359.3 million, up 78% and 92%, respectively - Third quarter and nine month EBITDA of $264.6 million and $601.
1 million, up 121% and 115%, respectively - Higher production volumes across all metals in Q3 - Aluminium: 60,000 tonnes, up 77% - Copper - India: 75,000 tonnes, up 60% - Zinc: 69,000 tonnes, up 26% - Third quarter revenue and EBITDA 25% and 46% higher respectively than the preceding quarter.
"Higher production volumes together with rising metal prices have contributed to the strong set of third quarter results." said Anil Agarwal, Executive Chairman, Vedanta Resources plc.
"Our growth projects are all on track and we continue to improve on our volumes and efficiencies."
For the third quarter and the nine months period ended 31 December 2005, group revenues were $974.7 million and $2,359.
3 million respectively, an increase of 78% and 92%, compared with revenues of $548.6 million and $1,226.0 million during the corresponding periods in the prior year.
EBITDA was $264.6 million and $601.1 million for the third quarter and the nine months period ended 31 December 2005 respectively, an increase of 121% and 115%, compared with EBITDA of $120.
0 million and $280.0 million during the corresponding periods in the prior year. Revenues and EBITDA rose primarily due to higher prices and volume growth across all our metals.
A total of 144 pots have been commissioned at the new aluminium smelter at Korba. Three out of four captive power plant units are online and the fourth unit is expected to be online in the fourth quarter. The ramp up of the 170,000 tpa zinc smelter at Chanderiya is progressing on schedule.
During the quarter, our Board approved a US$2.1 billion green-field 500,000 tpa aluminium smelter project together with an associated 1,215 MW captive thermal power plant in Jharsuguda, Orissa as well as a $125 million expansion of KCM's Nkana smelter to increase smelting capacity in Zambia to 300,000 tpa.
During the quarter, the existing production facilities at BALCO and MALCO continued to operate at their rated capacities.
The total production of 60,000 tonnes during the quarter was 14,000 tonnes higher than the preceding quarter and 26,000 tonnes higher than the corresponding period in the prior year. Third quarter production included 24,000 tonnes produced from the new Korba smelter, where a total of 144 out of 288 pots have been commissioned by December 2005.Revenues were $117.
0 million and $272.8 million for the third quarter and the nine months period ended 31 December 2005 respectively, an increase of 61% and 40%, compared with revenues of $72.5 million and $195.
3 million during the corresponding periods in the prior year. The increase in revenue is attributable to higher metal prices and increased volumes.EBITDA was $32.
1 million and $69.7 million for the third quarter and the nine months period ended 31 December 2005 respectively, an increase of 95% and 39%, compared with EBITDA of $16.5 million and $50.
3 million during the corresponding periods in the prior year. The increase in EBITDA is due to the increase in revenues, partly offset by higher energy and certain other input costs.The 1-1.
4 mtpa alumina refinery project in Lanjigarh, Orissa is proceeding well with mechanical completion expected by mid 2006. Out of the budgeted $800 million, an amount of $326 million has been spent by December 2005. Further to the report submitted by the committee appointed by the Supreme Court of India, the Government of Orissa and other concerned parties are in the process of submitting their responses, which will lead to further directions in this matter.
RUSAL, a top three global aluminium producer, has reached an agreement with the Government of Guyana to privatise the Republic's leading miner Aroaima Mining Company (AMC). Under the agreement, RUSAL's subsidiary Bauxite Company of Guyana Inc. (BCGI) will acquire the majority of AMC's assets and invest $20 million to develop and expand the company.
The Government of Guyana will continue to own a 10% stake in BCGI. This project will raise RUSAL's total bauxite production capacity from its current level of 6.2 million tonnes to 8.
7 million tonnes in 2008.The deal, announced by the state Aroaima Mining Company and the Government of Guyana, provides for the transfer of all of AMC's financial and production operations and the majority of its assets and bauxite deposits, with the total reserves of 96 million tonnes, to the Bauxite Company of Guyana Inc. on March 30, 2006.
Some of AMC's assets, including fixed property in Kwakwani, certain equipment, tugs and barges, will be leased to BCGI for a period of up to two years or until the planned investment programme is implemented in full. .BCGI was launched in December 2004 as part of RUSAL's memorandum of understanding with the Government of Guyana to revitalize the country's bauxite industry.
RUSAL holds a 90% stake in BCGI, while the Government of Guyana is the owner of the remaining 10%. BCGI has been running AMC under the terms of a management contract since April 2005.
BOLIDEN: Boliden reports record results for Q4 - approximately SEK 1,575 million
Boliden's preliminary operating result for Q4 2005 totals SEK 1,575 million, an improvement of just over SEK 1,050 million on the corresponding period in 2004.
The improved performance is mainly due to a combination of considerably stronger metal prices and improved mining production of copper. The preliminary operating result for 2005 as a whole totals SEK 3,059 million (SEK 1,831 m). The preliminary result after financial items amount to SEK 2,802 million (SEK 1,365 m) for the full year and to SEK 1,571 million (SEK 352 m) for Q4 2005.
The preliminary Q4 operating result is the best ever in the history of Boliden. Healthy and stable production and the strong metal-price trend have contributed to the record result. As the result considerably exceeds market expectations, we have decided to publish the result ahead of plan," says Jan Johansson, President and CEO of Boliden.
The preliminary Q4 result includes a stock profit on the process stocks of SEK 363 million. As of Q4, changes in the market valuations of currency options are also being reported as part of the operating result rather than, as previously, under net financial items. This change has had a negative impact on the Q4 operating result of SEK 93 million and thus a corresponding positive impact on net financial items.
Boliden's year-end result for 2005 is due to be published on Monday, 6th February 2006, one day earlier than previously announced.
Alcan Rolled Products - Ravenswood, a wholly-owned subsidiary of Alcan Inc., announced that it has signed a multi-year agreement with The Boeing Company to supply the aircraft manufacturer's 787 Dreamliner program with advanced lightweight aluminum products from Alcan's portfolio of proprietary alloys and innovative solutions.
"This new agreement represents a further milestone in our growing relationship with The Boeing Company," said Michel Jacques, President and Chief Executive Officer, Alcan Engineered Products following the signing of the agreement. "Alcan is dedicated to providing the aerospace industry with advanced lightweight and innovative solutions to replace conventional aluminum alloys. We are very proud of Ravenswood's successful development of such solutions in cooperation with Boeing," he added.
Alcan Rolled Products - Ravenswood and The Boeing Company also recently signed an agreement for the supply of aluminum products primarily for Boeing's 737 and 777 commercial aircraft programs.
New Years Gathering..
. Chairman and CEO Ku-Taek Lee stresses need for distinctive technology . Chairman and CEO Ku-Taek Lee, in his address at the Steelmakers New Year Gathering on 6 January, stated that Koreas steel industry expects to see a favorable turn in the second half of the year.
Korea Iron and Steel Association (KOSA) hosted the 2006 Steelmakers New Year Gathering at Renaissance Seoul Hotel, where it announced its resolution to achieve constant growth for Koreas steel industry. The event was attended by related authorities, including Minister Hee-Beom Lee from the Ministry of Commerce, Industry, and Energy; former CEOs Gyeong-Ro Hwang and Myeong Shik Jeong; Chairman and CEO Ku-Taek Lee from POSCO; CEO Se-Ju Jang from Dongkuk Steel; and 200 other representatives, executives, educators, researchers, and customers in the steel industry. Minister Hee-Beom Lee, during his congratulatory commentary, said that POSCOs investment in India and cooperation with small- to mid-sized companies and Dongkuk Steels investment in a slab plant in Brazil were among the important achievements in 2005.
He added that the Government will make its way to offer USD 65 billion for R D and impose quota tariff for the stable import of raw materials in 2006.
With the commissioning of its state of the art cold rolling complex, Essar Steel is now fully geared to meet the critical demands of the automobile industry in Indian and international markets. The Company now offers over 300 grades suitable for use in the auto and auto ancillary industries.
Essar Steel's fully integrated plant specializes in extra thin gauge strips with better and uniform mechanical properties, cleaner surface finish and closer dimensional tolerances than hot rolled strips to meet the demands of consistent quality and customized product offerings.The total market size for Auto grade products estimated to be in the region 97 lakh units, with two wheelers forming the major share with 80%, three wheelers at 4%, passenger cars at 11%, commercial vehicles at 3 % and tractors at 2 %. The total steel requirement for this segment is further classified into 0.
36 million tonnes of HR Sheets, 0.32 million tonnes of HR Plates and 1.46 million tonnes of Cold Rolled Sheets / Coils.
In this high value market, Essar expects to gain a market share of approx. 18% and 17% in Hot Rolled and Cold Rolled Auto Grade steel respectively. Essar's Steel finds applications in various auto components such as axles, wheel rim s and discs, chassis members, truck bumpers, buckets for earth moving equipment, fuel tanks of two wheelers, oil slumps, floor panels, bonnets,etc.
Chairman and CEO Ku-Taek Lee Explains POSCOs Management Performance and Plans at the CEO Forum on 12th. During the CEO Forum that POSCO held on 12 January at the Hanmaum Hall of Daehan Investment and Securities in Yeouido, it reported that it recorded KR21.7 trillion sales and a 27.
2% profit rate in 2005. It was the first time POSCO exceeded the KR20 trillion sales (USD20 billion) mark. POSCO reported on its 2005 management performance and its mid-term management plans during the Forum on 12 January.
POSCOs Chairman and CEO Ku-Taek Lee revealed that in 2005 its sales was KR 21.695, KR1.9 trillion higher than in 2004, and it has reached KR4.
13 net profit as well as KR5.912 trillion of operating income. He also explained that POSCOs investments this year will be expanded to KR3.
9 trillion, in response to the uncertain management environment. Overall, POSCO plans to invest up to KR11.7 trillion for three years until 2008 to reinforce its strategic steels and remarkably reduce its production cost.
POSCOs exceptional management performance was made possible by the favorable upturn of the steel market in the first half of last year and the remarkable increase in the sales of its high-value-added products, such as automotive steel sheets, API slags, and electric steel sheets. POSCOs profit rate, which represents its management profitability, has stayed above 20% for three consecutive years-21.3% in 2003, 25.
5% in 2004, and 27.2% in 2005.
LONGUEUIL, QUEBEC, CANADA -- Cambior Inc.
All amounts are expressed in US dollars, unless otherwise indicated.Cambior Inc. is pleased to announce that its proven and probable ore reserves totalled 5,036,000 ounces on December 31st, 2005, representing a net increase of 1,495,000 ounces or 42.
2% over the December 31, 2004 estimate.The increase is attributable to a net gain of 753,000 ounces at the Rosebel mine and the inclusion of 1.1 million ounces in the probable category following the completion of the Camp Caiman Feasibility Study in August 2005.
Commenting on this favourable development, Louis P. Gignac, President and CEO said: "Our continued focus on increasing our gold reserves through a substantial level of funding is generating positive returns for our shareholders. We are also confident that our current portfolio of projects will allow us to maintain and grow the gold output over the next several years.
This will allow us to benefit from the strong gold price environment".The additional reserves represent a 318% reserves replacement when the 2005 gold production of 638,400 ounces (684,600 in situ ounces) is considered.
The Rosebel mine continues to expand its reserves base following an intense drilling program of some 55,000 meters during 2005 and due to an improved gold price environment.
The proven and probable reserves at Rosebel now stand at 3,212,000 ounces.The Rosebel mine is located in Suriname and commenced operations on February 11, 2004. The mine consists of six deposits identified to date and located within a mining concession of 170 sq.
km.Since the commencement of production, the reserves at Rosebel have increased by 63% or 1,500,000 ounces through additional drilling and the inclusion of additional resources rendered economic by the increase in the gold price since February 11, 2004. During 2006, Cambior intends to invest $7.
3 million on reserve development and exploration in Suriname, including $6.5 million at the Rosebel property.
Global Alumina Corporation announced that it has entered into a three-party agreement with the Government of the Republic of Guinea and Compagnie des Bauxites de Guinee (CBG) with respect to the respective bauxite mining rights of Global Alumina and CBG in Guinea.
The agreement defines the conditions under which CBG transfers to the Republic of Guinea certain mining rights it held in its Initial Territory and identifies additional mining rights CBG will receive from the government as compensation for the rights transferred in order to satisfy CBG's long term needs in accordance with the terms of Halco (Mining) Inc./CBG's Basic Agreement including the Amendment No. 1 dated April 19, 2001.
The Government of Guinea in turn agrees to grant the mining rights released by CBG to Global Alumina by decree in accordance with the terms of Global Alumina's Basic Agreement and Amendment No. (1) dated May 16, 2005. Global Alumina expects that the Government of Guinea will issue its decrees with respect to the Global Alumina and CBG mining rights shortly.
"This agreement between Global Alumina, the Government of Guinea, CBG and Halco (Mining) is consistent with the Minutes of Meetings dated October 26th and 27th and announced late last year," stated Bruce Wrobel, Chairman and CEO of Global Alumina. "It is a major milestone for Global Alumina and the Republic of Guinea in that it clarifies the rights of all parties with respect to the significant bauxite resources in the area of Global Alumina's proposed 2.8 million tonne alumina refinery project.
We appreciate the efforts made by all parties in reaching this agreement and look forward to continued close collaboration with both the Government of Guinea and CBG as we move forward with the final development, construction and ultimately operation of this exciting project."
RELIANCE STEEL ALUMINUM: Earle M. Jorgensen Company Signs Agreement to Be Acquired by Reliance Steel Aluminum Co.
Reliance Steel Aluminum Co. ("Reliance") and Earle M. Jorgensen Company ("EMJ") jointly announced that they have entered into a definitive merger agreement pursuant to which Reliance will acquire EMJ for $13.
00 per share in cash and stock, subject to a collar described below. The transaction is valued at approximately $934 million, including the assumption of EMJ's net debt. Both companies are headquartered in Southern California.
The transaction would be immediately accretive to Reliance and is expected to be completed in the second quarter of 2006. Upon completion of the acquisition, Reliance will have total assets of approximately $3 billion and annual revenues of more than $5 billion. David H.
Hannah, Chief Executive Officer of Reliance, said, "We are very excited about EMJ becoming a member of our Reliance family. This will be our largest acquisition to date and our first acquisition of a public company. This transaction will add a total of 39 facilities in the United States and Canada to our existing network.
We will significantly increase our geographic, product and customer diversification by combining with an industry peer that complements our reputation for excellence and our corporate culture. EMJ has an outstanding management group and they will continue to run the business as they have in the past. We believe that, together, Reliance and EMJ will be well positioned to continue to outperform our competitors going forward.
" Maurice S. ("Sandy") Nelson, Jr., Chief Executive Officer of EMJ, said, "We believe that joining with Reliance will provide both additional and more favorable opportunities to create sustainable growth and value for the shareholders of EMJ and Reliance.
"
The consideration to EMJ stockholders will be paid 50% in Reliance stock and 50% in cash. Under the terms of the merger agreement, EMJ stockholders will have the right to receive consideration of $6.50 in cash and a number of shares of Reliance common stock equal to $6.
50, subject to a collar, divided by the average of the reported closing sale prices per share of Reliance common stock on the New York Stock Exchange for the 20 trading days ending on and including the second trading day prior to the closing of the merger. The exchange ratio will not be more than 0.1207 and not less than 0.
0892 shares, for each share of EMJ stock they own. If the average price of Reliance common stock prior to the closing is between $53.86 and $72.
86 per share, the value of the Reliance common stock received would be $6.50 per EMJ share.At closing, based on the 20-day average closing price for Reliance stock ended January 12, 2006, Reliance would issue approximately 5.
2 million shares of Reliance common stock valued at approximately $327 million as of January 12, 2006. The cash portion of approximately $384 million, which includes the cash out of certain EMJ options and estimated transaction costs, will be financed under Reliance's $600 million syndicated credit facility. Additionally, Reliance will assume approximately $291 million of EMJ's existing long-term debt, adjusted by any payments or borrowings made by EMJ prior to the closing of the acquisition.
The merger consideration represents an approximate 25% premium to EMJ's share price as of January 17, 2006. Taking the effect of the acquisition into account, Reliance's pro forma net debt-to-total capital ratio as of January 1, 2006 and assuming that the transaction had closed on that date, would have been approximately 44%.
- The strong operational performance seen in the first nine months of the year continued with many operations setting production records for the full year.
- Hamersley's shipments of iron ore set a new record for both the quarter and the full year. The ramp-up of the new shiploading facilities at Dampier boosted export capacity and handled their first shipment of lump ore.
- Kennecott Utah Copper continued its focus on the higher grade molybdenum ore to take advantage of higher margin production afforded by strong molybdenum markets.
Fourth quarter molybdenum production was 16 per cent higher than the previous record set in the third quarter, and full year production was 130 per cent above prior year. This resulted in lower mined copper units in line with lower grades.
- Gold and copper production at the Grasberg mine increased further during the quarter, benefiting from increased access to higher grade ore and improvements in mill throughput.
- Full year alumina production for 2005 was 33 per cent higher than 2004. However, fourth quarter production at the Comalco Alumina Refinery continued to be impacted by digestion pump performance. Annual production at the Queensland Alumina Refinery was a record.
- The underground development at the Argyle diamond mine and the life extension at the R #xF6;ssing uranium mine were approved during the quarter.
- Favourable market conditions enabled the sale of Rio Tinto's interest in Lihir Gold to take place in November.
- Pre-tax expenditure on exploration and evaluation in 2005 was $60 million higher than in 2004 reflecting increased brownfield exploration to expand existing resources and continued evaluation work on advanced projects.
In December Rio Tinto won the tender to evaluate the La Granja copper project in northern Peru.
Moscow, RUSSIA -- RUSAL, a top three global aluminium producer, welcomes the decision by the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) to endorse RUSAL's entry in Komi Aluminium -- a project to design, construct and operate a modern bauxite and alumina complex near the town of Ukhta, Komi Republic -- and disburse loans totalling $150 million for the first stage of its implementation. The decision followed the approval by EBRD and IFC of RUSAL's plan to enhance the company's corporate governance and financial disclosure.
The loan will be disbursed for a period of nine years. It will be used to increase bauxite production at the Middle Timan deposit from the current 1.8 million tones of bauxite per year to 6 million tonnes by 2008 and to conduct groundwork for the construction of an alumina refinery near the town of Sosnogorsk.
The IFC and EBRD are also considering the option to finance the next stages of the project development. RUSAL signed an agreement with SUAL to become an equal partner in the Komi Aluminium in April 2005. This agreement outlines that RUSAL and SUAL will jointly implement the project to increase bauxite production and construct an alumina refinery with a capacity of 1.
4 million tones of alumina per annum. The estimated investment will amount to approximately $1.2 billion.
ALCAN: Alcan Gives Green Light to US$1.7 Billion Aluminum Smelter in Sohar, Oman - Smelter Will Use Alcan's State-of-the-art AP35 Technology
MUSCAT, Oman, Asia -- Alcan Inc. announced that together with its partners, Oman Oil Company S.
A.O.C.
(OOC) and the Abu Dhabi Water and Electricity Authority (ADWEA), it will proceed with the construction of a US$1.7 billion primary aluminum smelter in Sohar, Oman. Alcan is taking a 20 percent stake in the 350kt per year smelter, which is expected to begin production in the third quarter of 2008.
The smelter will be in the lowest quartile of the industry cash cost curve and add approximately two percent to Alcan's global smelting base. "Today marks an important achievement for Alcan, its partners, and the Middle East Gulf region as we work together in creating sustainable economic, social, and environmental opportunities which will benefit all stakeholders, in particular the people of Oman," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group. "This state-of-the-art smelter will demonstrate Alcan's technology and cost leadership, operational know-how and management expertise and will, over the smelter's life, promote the strong technical and economic development of the region," she added.
In June 2004, Alcan, OOC and ADWEA announced their commitment to the Sohar Aluminium Company L.L.C.
, which will own and operate the smelter. The smelter will be based near the existing Sohar Industrial Area, which will provide a major economic boost to the Al Battinah Region of Oman. With the construction of a new Sohar Aluminium-owned 1000MW power plant, the smelter will have long-term access to a dedicated power supply on competitive terms and in a quantity sufficient to meet its energy requirements.
MIDDLETOWN, Ohio, USA -- AK Steel said that it will invest approximately $8.5 million at its wholly-owned subsidiary, AK Tube LLC, to produce large diameter stainless tubing that will assist heavy truck manufacturers in meeting new standards for diesel emissions. AK Steel said the capital investment would include a resistance- weld tube mill, and associated equipment, capable of producing large-diameter stainless tubing to meet these new requirements.
The new U.S. Environmental Protection Agency (U.
S. EPA) standards, which will become effective January 1, 2007, are designed to lower particulate matter and hydrocarbon emissions from heavy duty diesel engines, the staple of the truck transportation in the United States. Due to the significantly higher exhaust temperatures that will result from the new emission designs, diesel engine manufacturers have specified large diameter stainless tubing for many of the exhaust system components.
Historically, those components have been manufactured using bare and aluminum-coated carbon steel tubing."AK Tube and AK Steel are already leaders in vehicle exhaust component steel technology," said James L. Wainscott, president and CEO of AK Steel.
"This new capital investment further enhances our industry-leading technology by helping us meet new market requirements for heavy duty truck exhaust components."Construction of the new tubing mill will begin in the near future, with completion estimated by mid-2006.
MITTAL STEEL: Mittal Steel Company N.
V. Increases Shareholding in Mittal Steel Zenica to 92%
Mittal Steel Company N.V.
, the world's largest and most global steel company, announces that it has a acquired a further 41% stake in Mittal Steel Zenica ("The Company") from the Kuwaiti Investment Agency for US$98 million. This follows the 51% of the Company (then BH Steel) acquired from the Government of the Federation of Bosnia-Herzegovina and the Kuwaiti Investment Agency in August 2004. As a result of the transaction, Mittal Steel now has a 92% shareholding in Mittal Steel Zenica.
The remaining 8% is held by the Government of the Federation of Bosnia-Herzegovina.
MONTREAL, Canada -- Alcan Inc. announced that it will proceed with an investment of approximately US$129 million for its participation in the 2.
1 million metric tonne per year (Mtpy) expansion of the Alumar consortium alumina refinery in S #xE3;o Lu #xED;s, State of Maranh #xE3;o, Brazil. The expanded refinery, in which Alcan has a 10 percent stake, will have a total capacity of approximately 3.5 Mtpy once completed.
"This investment is fully aligned with Alcan's value maximization strategy, which involves growing alumina revenues through the expansion of large-scale, cost-advantaged assets," said Jacynthe C #xF4;t #xE9;, President and Chief Executive Officer, Alcan Bauxite and Alumina. "With increasing global demand for alumina, this investment will boost Alcan's access to a competitive source of alumina in the Atlantic region," C #xF4;t #xE9; added. The Alumar refinery is already best-in-class in terms of conversion costs, and also has an excellent track record in the area of sustainability, including environment, health and safety.
"Its superior performance in these areas is closely aligned with Alcan's commitment to pursue business opportunities that strengthen Alcan's ability to provide a prosperous and sustainable environment for future generations," continued C #xF4;t #xE9;. The expansion, which will begin operation in the first half of 2008, will increase Alcan's overall alumina capacity by 210 thousand tonnes per year. With Alcan, the Alumar refinery is jointly owned by Alcoa (54 percent) and BHP Billiton (36 percent).
MITTAL STEEL: Mittal Steel Company N.V. Completes Merger of Mittal Steel USA ISG Inc.
and Ispat Inland Inc.
CHICAGO, USA -- Mittal Steel Company N.V.
has completed the merger of U.S. operating subsidiaries Mittal Steel USA ISG Inc.
("ISG") and Ispat Inland Inc. ("Inland"). Inland was merged with and into ISG effective Dec.
31, 2005, with ISG being the surviving corporation of the merger.With the consummation of the merger, ISG was renamed Mittal Steel USA Inc. The merger is an important step in Mittal Steel's ongoing U.
S. integration plan, following Mittal Steel's acquisition of ISG on April 15, 2005.
Arcelor's Brazilian unit Arcelor Brasil has signed an agreement to buy a 50% stake of the capital of the Costa Rican companies Laminadora Costarricense SA and Trefileria Colima from Grupo Pujol Marti.
The transaction, carried out through Arcelor Brasil's subsidiary Cia. Siderurgica Belgo Mineira SA, is subject to the fulfillment of a number of conditions by the parties and is expected to be finalised by 31 January 2006. The Laminadora Costarricense SA rolling mill produces merchant bars and rebars and has a yearly capacity of 400.
000 tons. The Trefileria Colima wiredrawing unit has a capacity of 60.000 tons per year.
Arcelor Brasil, Arcelor's growth platform in Latin America, sees this acquisition, its first investment in this region, as a strategic positioning on the Central American market.
CHICAGO, USA -- As the new galvanizing line nears completion at Mittal Steel's Cleveland plant, the company is making plans to add galvannealing capability to meet anticipated future automotive customer requirements. The new hot-dip galvanizing line, to be completed during the first quarter of 2006, will produce coated steel for both exposed and unexposed automotive parts.
To keep up with the increasing demand for galvannealed sheet, the company has now formed a team to perform the engineering, evaluate technologies and seek bids to enhance the line to produce galvannealed. The additional galvannealed capacity will enable Mittal Steel to serve a wider spectrum of automotive applications.The coating line will be rated at 500,000 tons a year, any portion of which could be produced as galvanized or galvannealed.
The company could start offering galvannealed steel from the line as early as the first quarter of 2007.
Salzgitter's subsidiary H #xF6;velmann Lueg is to buy Arcelor's steel service centre Flachform Stahl located in Schwerte (Ruhr/Germany). The activities of both steel service centres are complementary, with H #xF6;velmann Lueg mainly active in the market for cut to length products while Flachform Stahl operates several slitting lines.
In Schwerte, Flachform Stahl has a capacity of about 250.000 tons annually, employing approximately 85 associates. H #xF6;velmann Lueg is to take over the staff as well as facilities and the equipment.
Arcelor will continue hire-slitting (toll processing) in Schwerte. This transaction allows Arcelor to concentrate on its Steel Service Centre network in Germany.The combination of both entities will lead to the creation of one of Germany's most attractive steel service centres with a wide product range and an annual capacity of approximately 500.
000 tons. The move is to allow H #xF6;velmann Lueg to expand its offering in terms of products and services, deriving synergies thanks to the proximity of the two sites.The transaction is subject to customary conditions and approvals, for instance by competition authorities.
The price of the transaction was not disclosed.
Arcelor and the Turkish pension fund OYAK (Ordu Yard #xFD;mla_ma Kurumu) have agreed on December 23, 2005 that Arcelor will acquire, subject to certain conditions, 41% of Ataer Holding A, a wholly owned OYAK subsidiary, that has been founded to acquire a 49.29% equity stake of Erdemir (Eregli Demir ve #xC7;elik Fabrikalar #xFD; A).
This move will allow Arcelor to develop its position in the growing Turkish and regional steel markets, leveraging the performance of the high quality assets of Erdemir. The Turkish steelmaker will benefit from the technology and innovation leadership, powerful sourcing and extensive global commercial network of Arcelor to further boost its operational excellence.The price offered by Oyak for Erdemir shares in a public auction organized by the Turkish Privatization Administration on October 4, 2005, (USD 2.
77 billion for a 46.12% stake) will be the reference for the acquisition by Arcelor of the stake in Ataer.The transaction is subject to various regulatory approvals, including the Turkish Competition Authority.
Further details will be disclosed upon the closing of the transaction between Arcelor and Oyak.
Paris, France -- Alcan Inc. nnounced that it has signed an agreement in principle for the sale of its Froges, France, rolling mill to Industrie Laminazione Alluminio S.
p.a (ILA). Based in Sardinia, Italy, ILA specializes in continuous casting and aluminum foil rolling, providing European and Mediterranean medium-size companies with aluminum solutions for the packaging and building markets.
"We are pleased with the outcome of a process that began more than a year ago and is in line with Alcan's strategy to focus on core operations within its Engineered Products business. It will enable Froges to benefit from new market opportunities and a secure and competitive supply of continuously cast metal," said Michel Jacques, President and Chief Executive Officer, Alcan Engineered Products. "ILA and Froges share complementary portfolios and focusing Froges' activities on foil for the packaging industry will further contribute to the mill's sustainable future," he added.
With investments planned to upgrade efficiency and environmental performance, ILA intends to increase Froges' production volumes of foil products. ILA also intends to retain all employees. Froges rolling mill will operate under the name of Laminoirs Aluminium Froges.
The transaction, which is not material to Alcan, is expected to be completed in the first quarter of 2006. Froges has almost 70 employees and annual revenues of approximately #x80;25 million
Schnitzer Steel Industries, Inc. reported net income of $42 million, or $1.
34 per diluted share, for the fiscal 2006 first quarter ended November 30, 2005. Included in net income was a gain of $34 million (after tax) related to the disposition of joint venture assets under the agreement between the Company and Hugo Neu for the termination of their joint ventures. Net income was also reduced by a charge of $11 million relating to a reserve taken by the Company for the estimated amount to settle the ongoing SEC and Department of Justice investigations into the Company's past payment practices in Asia.
Excluding the gain from the disposition of joint venture assets and the charge for the investigation reserve, net income was $19 million, or $0.61 per diluted share."We are moving closer to completion of the investigation of past payment practices in Asia, and we continue to fully cooperate with the DOJ and the SEC," said John D.
Carter, President and Chief Executive Officer. "While the DOJ and SEC investigations are not complete, we now believe the penalties and disgorgement which will be imposed by the DOJ and the SEC will be within a range of $11 million to $15 million. In the first fiscal quarter, the Company established a reserve totaling $11 million in connection with the amount of penalties and disgorgement we estimate will be imposed.
We do not have a definitive time table for closing the investigation, and will provide an update when further information is available."Schnitzer Steel began its 100th year of operation with another solid quarter. The positive long-term fundamentals supporting all our business segments remain intact.
We are currently working though a number of short-term steps to integrate our newly acquired businesses and build a foundation for the future, and we continue to look to that future with great optimism.
Luxembourg/Hannover, GERMANY -- Arcelor is to sell its steel service centre Flachform Stahl located in Schwerte (Ruhr/Germany) to German steelmaker Salzgitter. Flachform Stahl will be integrated with the local Salzgitter subsidiary H #xF6;velmann Lueg.
This transaction allows Arcelor to optimize its Steel Service Centre network in Germany where it holds a number two position in this market. Arcelor will continue hire-slitting (toll processing) in Schwerte.The activities of both steel service centres are complementary, with H #xF6;velmann Lueg mainly active in the market for cut to length products while Flachform Stahl operates several slitting lines.
In Schwerte, Flachform Stahl has a capacity of about 250,000 tons annually, employing approximately 85 associates. H #xF6;velmann Lueg is to take over the staff as well as facilities and the equipment.The combination of both entities will lead to the creation of one of Germany's most attractive steel service centres with a wide product range and an annual capacity of approximately 500,000 tons.
The move is to allow H #xF6;velmann Lueg to expand its offering in terms of products and services, deriving synergies thanks to the proximity of the two sites.The transaction is subject to customary conditions and approvals, for instance by competition authorities. The price of the transaction was not disclosed
TIMKEN: Timken to Expand Production at Virginia Bearing Plant - $10 million investment will add 50 jobs, expand production at Altavista facility
CANTON, Ohio, USA -- The Timken Company announced plans to invest approximately $10 million in its bearing plant in Altavista, Va.
, enabling expanded manufacturing of replacement wheel-hub bearing assemblies for light-duty pickup trucks and sport utility vehicles. Timken plans to add 50 new jobs and increase the manufacturing capacity of the Campbell County plant. "The Altavista facility has been a strong performer for Timken, and we are adding capacity to capitalize on a significant opportunity for profitable growth in the automotive aftermarket with this expansion," said Jack Cameron, Timken's general manager for the North and South American automotive aftermarket.
Timken is a leading supplier of automotive wheel-hub bearing assemblies to both original equipment manufacturers and the automotive aftermarket.Timken's facility in Altavista, which currently has 140,000 square feet of space and employs approximately 308 people, has grown steadily in production capacity since its opening in 1991. The plant produces highly engineered wheel-hub bearing assemblies, including UNIPAC(TM), for global auto manufacturers and suppliers.
Wheel-hub bearing assemblies typically have multiple rows of rollers, are pre-adjusted, pre-lubricated and pre-sealed.The expansion project, which will begin in second quarter of 2006, stands to benefit from roughly $460,000 in state and local government incentives.
TORONTO, Canada -- Denison Mines Inc.
reports the project description of the Midwest project was submitted to the Canadian Nuclear Safety Commission, the Environmental Assessment Branch of Saskatchewan Environment and the Canadian Environmental Assessment Agency on December 28, 2005. It is proposed that the Midwest deposit be mined as an open pit with further expansion of the JEB mill at McClean where the Midwest ore will be processed. The Midwest Project was previously considered and recommended to proceed, with conditions, in 1997 by the Joint Federal-Provincial Panel on uranium mining developments in Northern Saskatchewan.
The Project was approved by the Federal and Provincial Governments in 1998, based on the Panel's recommendation. It is expected that an environmental assessment will be required. Denison anticipates that the environmental assessment and subsequent licensing will be completed in time to commence stripping of the Midwest deposit in 2008.
A copy of the Midwest Project description is available on Denison's website. The McClean Lake uranium facilities produced about 1,033,000 pounds of uranium oxide in concentrates (U3O8) during the three months ended December 31, 2005, of which Denison's share was 232,000 pounds. The aggregate production from McClean for 2005, which was scheduled to be 6,000,000 pounds, was 5,490,000 pounds or about 8.
5% less than scheduled. Denison's share of production for the year was 1,235,000 pounds. The primary reason for the shortfall was the difficulty in recovering the high grade ore in the Sue C stockpile resulting in lower average feed grade to the mill during the last six weeks of the year.
As outlined in Denison's Third Quarter Report 2005, uranium production in 2006 is estimated to be about 4 million pounds. At year end Denison had an inventory of approximately 382,000 pounds of packed U3O8. Denison reports that it has amended and extended the loan agreement with Cogema Resources Inc.
The maturity date of the loan facility has been extended to no later than December 31, 2010 and the amount of the facility has a maximum of CDN$22 million. This amount will be reduced by a minimum of 20% per year and a maximum amount equal to the amount that applicable uranium cash receipts exceeds applicable costs at McClean and Midwest. Denison has only a nominal amount outstanding under the facility and can draw upon the facility at any time on forty-five days' notice.
ARCELOR: Arcelor announces the submission of a proposal to increase and amend its offer to acquire Dofasco Inc.
Arcelor S.A.
announced that it submitted a binding written proposal to the Board of Directors of Dofasco Inc. proposing amendments to its take-over bid to increase its offer to acquire all of the outstanding common shares of Dofasco Inc. to CAD$71.
00 per common share and to amend the conditions that apply to its offer such that they will be in substance identical to those applying to the offer for Dofasco made by ThyssenKrupp AG.Arcelor's proposal is conditional on Dofasco and Arcelor entering into a mutually acceptable support agreement (Arcelor has proposed an agreement based on the support agreement for the ThyssenKrupp transaction) and Dofasco having terminated the support agreement for the ThyssenKrupp transaction.Arcelor understands that Dofasco's Board of Directors has determined that Arcelor's latest offer is a superior proposal as compared to that of ThyssenKrupp and that Dofasco will, as soon as practicable, provide notice to ThyssenKrupp under the support agreement between Dofasco and ThyssenKrupp of the latter's right to match Arcelor's proposed increased and amended offer.
Arcelor's proposed new offer price would represent a 12.7% premium over its offer price of CAD$63.00 per common share in its offer dated December 30, 2005, and a 4.
4% premium over the offer price of CAD$68.00 announced by ThyssenKrupp on January 14, 2006.
The Executive Board of ThyssenKrupp AG has noted the announced increase in Arcelor's offer to C$71 per share to the shareholders of Dofasco.
ThyssenKrupp will examine Arcelor's announced offer and decide on its next steps. A Support Agreement exists between Dofasco and ThyssenKrupp to support the ThyssenKrupp offer. This agreement requires Dofasco to keep ThyssenKrupp informed about the status of talks with Arcelor.
If Dofasco and Arcelor reach an agreement, ThyssenKrupp is entitled under its Support Agreement with Dofasco to decide within a period of 5 working days whether it wishes to match the new offer conditions of Arcelor ("right to match").
LATROBE, Pa., USA -- Kennametal Inc.
announced that it has acquired the remaining outstanding shares in its Turkish sales company, Kennametal Turkey A.S. This acquisition increases Kennametal's ownership in this company from 64 percent to 100 percent.
Kennametal acquired a majority ownership in 1999 and has since enjoyed strong sales growth and penetration in the Turkish market. Through this presence, Kennametal established a robust sales, service and distribution infrastructure in Turkey as well as created many important and expanding customer relationships in this rapidly developing economy. Over the past few years, Kennametal Turkey A.
S. has also averaged strong double-digit sales growth. This acquisition, though small, is in alignment with Kennametal's growth strategy.
The sales company employs 14 sales and service professionals.
JOHANNESBURG, South Africa -- Gold Fields Limited is pleased to announce that it has completed the acquisition of the Cerro Corona Project in Northern Peru.Completion of this acquisition means that Gold Fields now owns 92% of the voting interest (80.
7% of the economic interest) in Sociedad Minera La Cima SA, which owns the Cerro Corona Project and other mineral properties in the Cajamarca district. Construction of the Project is expected to commence in February 2006, leading to first production towards the end of calendar 2007.The Project involves the development of a 91 million ton gold/copper porphyry deposit at a capital cost of US$277 million.
The project has reserves of some 2.9 million ounces of gold and 480,000 tons of copper, or approximately 5.4 million ounces of gold equivalent.
The Project is expected to produce approximately 2.3 million ounces of gold and 412,000 tons of copper over its 15-year life, averaging some 300,000 ounces per year of gold equivalent. However, production in the initial years of the project will be closer to 400,000 ounces per year.
SIERRE, Switzerland -- Alcan Inc. announced that it will initiate the closure process for its 44kt per year Steg primary aluminum smelter and the cessation of anode production, both expected to be completed by the end of April 2006. This announcement will have no impact on Alcan's foundry, rolling and extrusion operations in the Valais region.
"For the past three years, we have worked diligently to identify a viable solution for ongoing smelting operations. However, with the expiration of our long term energy contracts at Steg, the unprecedented rise in current energy costs in the Valais region and across Europe has made the production of primary aluminum at this particular facility economically unsustainable," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group."Given the current energy market and despite support offered by the Valais authorities, continuing to operate the smelter would result in significant financial losses.
The situation is unfortunate as the Steg smelter has been a part of the region's industrial fabric for decades. Alcan will manage the social, human and environmental consequences of today's announcement in the most sensitive way," added Wolfgang Stiller, President, Alcan Primary Metal Group, North Europe.This announcement will impact 140 employees related to the smelting activities and approximately 40 additional positions in support functions.
All affected employees will be eligible for measures such as internal reclassification programs, early retirement and active job-search support following discussions with employee representatives.Alcan will continue to employ approximately 900 people in the Valais region in businesses not affected by this announcement, dedicated to casting and fabricating aluminum for the extruded and plate applications for the aerospace, transport, and industry market sectors.
ALCOA: Alcoa Announces Annual Income from Continuing Operations of $1.
23 Billion, or $1.40 per share; Highest Annual Revenues in Company History - Income from continuing operations of $1.23 billion, or $1.
40 per share, for 2005; - Annual revenues increased 13 percent to an all-time record of $26.2 billion; - Progress executing upstream and downstream growth projects to build share in attractive growth markets; - Fourth quarter 2005 income from continuing operations of $210 million, or $0.24, including a net negative impact of $93 million, or $0.
11; - Strong quarterly performance in alumina and primary metals with segment ATOI improving 17 and 44 percent respectively over third quarter; - Debt-to-capital ratio of 30.8 percent at year-end, within target range despite investments in aggressive growth strategy
Alcoa announced that its 2005 income from continuing operations was $1.23 billion, or $1.
40 per diluted share, as the company took action to partially mitigate $878 million in impacts from raw materials, energy, and other cost inflation. For the fourth quarter, income from continuing operations was $210 million, or $0.24.
Profitability was eroded by negative impacts totaling $93 million, or $0.11, including: lowered production at refineries in Jamaica and Texas due to the Gulf Coast hurricanes; an unplanned outage at the Portland, Australia smelter; the impact of strikes on operations at Spanish plants; restructuring costs for plant closings and layoffs; mark-to-market losses on metal and metal-related activities; and integration costs for the newly acquired facilities in Russia; partially offset by a favorable legal settlement for power costs. Income from continuing operations was $0.
33 in the third quarter of 2005, and $0.39 in the fourth quarter of 2004."Entering 2005, we anticipated significant pressures from rising input, energy costs and other cost inflation, but actual increases were even higher, nearly $900 million for the year," said Alain Belda, Alcoa Chairman and CEO.
"To meet that challenge, we took aggressive action, passing through significant price increases to downstream customers, improving our mix of value-added products, continuing productivity gains, and lowering taxes. That management action helped offset cost pressures and drove the top-line to the highest level in Alcoa's 117-year history," said Belda. "In the year ahead, we don't foresee the same sharp spikes on input prices, and our initiatives will gain further momentum to offset inflation and improve the bottom line.
"As we enter 2006, the vast majority of our primary metal production will benefit from the highest metal prices in more than 15 years," Belda added. "And we are working to secure future growth in attractive markets with customers around the world."Net income in the quarter was $224 million, or $0.
26, compared to $289 million, or $0.33, in the previous quarter, and $268 million, or $0.30, in the fourth quarter of 2004.
Annual revenues climbed 13 percent to $26.2 billion, the highest in the company's history. Revenues for the fourth quarter rose approximately 12 percent compared to the fourth quarter of 2004, driven by higher metal prices and strength in the aerospace market.
GERDAU: Conclusion of acquisition of Corporaci #xF3;n Sidenor - Gerdau completed, together with a company belonging to the Santander Group and another formed by the main executives of the Sidenor Group, the acquisition of all the capital stock of CORPORACI #xD3;N SIDENOR, S.A., in Spain
GERDAU S.
A., in compliance with Regulation CVM (Brazilian Security and Exchange Commission) # 358 of January 3, 2002, announces to its shareholders and investors that its subsidiary GERDAU HUNGRIA HOLDINGS LIMITED LIABILITY COMPANY completed on this day, together with a company belonging to the Santander Group and another formed by the main executives of the Sidenor Group, the acquisition of all the capital stock of CORPORACI #xD3;N SIDENOR, S.A.
, in Spain, as informed in the Relevant Fact published on November 15th, 2005. The amount relative to the Gerdau Hungria Holdings Limited Liability Company stake was paid proportionally to its stake of 40% in the capital stock of Corporaci #xF3;n Sidenor, S.A.
, and the corresponding shares transferred. With the conclusion of the mentioned acquisition, the buyers of Corporaci #xF3;n Sidenor, S.A.
, through Sidenor Internacional, S.L., will file in the next 30 days a request with the CVM for authorization to make a public offering to acquire A #xE7;os Villares S.
A. shares due to the change of control, and with no intention to delist, as per CVM Regulation 361/02.
CLEVELAND, USA -- Cleveland-Cliffs Inc.
announced that its Board of Directors has approved Cliffs' capital investment in the Mesabi Nugget Project ("Project"). The investments and capital expenditures authorized by the Board total approximately $50 million and are contingent upon the Project: obtaining non- recourse financing for its capital requirements in excess of equity investments made by the Project participants; and further, the Project's participants reaching mutually agreed upon terms. Cliffs' equity interest in the joint venture is expected to be approximately 23 percent.
Included in the Board's authorization is up to $21 million in cash allocated for the construction and operation of the commercial nuggets plant. Capital expenditures to expand concentrate production at Northshore to support sales to the Project are expected to be $25 million. In addition, capital expenditures of approximately $4 million have been authorized for rail transportation of concentrate from Northshore to the nugget plant.
John Brinzo, Cliffs chairman and chief executive officer, commented, "We are optimistic about the future potential for this nugget technology. Today's action by the Board reaffirms Cliffs' commitment to Minnesota's iron range and to moving this Project forward."
African Diamonds the AIM listed diamond explorer is pleased to announce further encouraging results from their drilling programme on kimberlite pipe AK6 in the Orapa area of Botswana.
A total of 377 macro diamonds weighing 37.45 carats were recovered from 120 tonnes from the North lobe of the pipe, giving an average grade of 31.2 carats per hundred tones.
Figure 1 below gives the location of the drill holes on the Orapa AK6 kimberlite. Drill hole 10A is part of a 13 hole 23 inch Large Diameter Drilling (LDD) programme being undertaken on the 9.5 hectare AK6 pipe to refine the tonnage, contained carats and carat value.
The initial programme is part of a $20m evaluation of AK6 being carried out in 2006 by our joint venture partner, De Beers. Details of the programme are given in Table 1 below. Commenting John Teeling, Chairman, said: "This is a strong result from AK6 and further confirms it as a world class discovery.
The North lobe, as these figures reveal, has particularly good grades and good stone sizes as well. Though still in evaluation there is growing conviction that AK6 will become a significant diamond mine."
Singen, Germany - Alcan Inc.
officially put into commission a new #x80;10 million lamination line within its composite business unit at Alcan's Singen site. Approved in 2004, the investment positions the business well to meet its customers' demand for two-meter composite panels, broadens its product range, and represents a tangible commitment to its customers. "This investment enables us to respond even more closely to customers' needs and to reinforce our position in our successful Dibond #xAE; and Alucobond #xAE; products," said Michel Jacques, President and Chief Executive Officer, Alcan Engineered Products.
"The fact that Alcan is investing #x80;10 million in this Composites facility illustrates the importance of our operation in Singen. I am delighted that another milestone has been reached on schedule. It speaks volumes for the knowledge and commitment of our employees, to whom I am especially grateful," he added.
The larger panels are particularly well suited for the display market, in which new technologies, including large-format direct digital printing, are being used more and more. Through this investment, Alcan Composites, one of the fast-growing business units of Alcan Engineered Products, further underlines its leading position in the European market and neighbouring regions, and secures its long-term future at the Singen plant.
Smorgon Steel Group Ltd and Intec Ltd have entered into a Heads of Agreement for the initial and ongoing supply of Electric Arc Furnace Dust (EAF Dust) from Smorgon Steel to INL for use in INL's Hellyer Metals Project in northwestern Tasmania (the Hellyer Metals Project).
Closure of the transaction is expected to occur not later than 31 January 2006 and will be subject to (amongst other things) approval by the Victorian EPA.Smorgon Steel and INL have worked together over recent months to develop techniques for the successful introduction of EAF Dust into INL's process and both companies are confident, based on tests carried out at INL's demonstration plant at Burnie, in the success of the process.Smorgon Steel will initially supply approximately 22,000 tonnes of EAF Dust, which has been pelletised using Smorgon Steel's proprietary technology, to INL.
Smorgon Steel will pay INL an up-front treatment fee of A$2.42 million in relation to the initial 22,000 tonnes. These funds will be used to assist in the future development and commercialisation of INL's process.
The EAF Dust is intended to be treated at the Hellyer Metals Project, subject to the approval of the Tasmanian Department of Primary Industries, Water and Environment.The Heads of Agreement also addresses the ongoing supply of EAF Dust by Smorgon Steel to the Hellyer Metals Project and other commercial opportunities of potential benefit to both companies.
- The Specialty Steel Industry of North America (SSINA) released the latest available statistical data on imports, U.
S. consumption and import penetration covering YTD October 2005. Comparisons refer to the same 2004 ten-month period.
Following data presented by specialty steel product line, total stainless steel, and total specialty steel:
-- Stainless steel sheet/strip: Imports were 316,465 tons, reflecting a 7% decrease; U.S. consumption was 1,366,269 tons, a 9% decrease; import penetration was unchanged at 23%.
-- Stainless steel plate: Imports were 70,300 tons, reflecting a 22% increase; U.S. consumption was 214,546 tons, an 11% decrease; import penetration was 33%, a nine percentage point increase.
-- Stainless steel bar: Imports were 105,259 tons, reflecting a 58% increase; U.S. consumption was 202,286 tons, a 21% increase; import penetration was 52%, a twelve percentage point increase.
-- Stainless steel rod: Imports were 36,257 tons, reflecting a 5% decrease; U.S. consumption was 58,257 tons, a 2% decrease; import penetration was 62%, a two percentage point decrease.
-- Stainless steel wire: Imports were 36,866 tons, reflecting a 7% increase; U.S. consumption was 64,072 tons, an 8% decrease; import penetration was 58%, a nine percentage point increase.
Imports of total stainless steel (comprising the foregoing product lines) YTD through October 2005 were 565,146 tons, reflecting a 5% increase; U.S. consumption was 1,905,430 tons, a 7% decrease; ten-month import penetration was 30%, a four percentage point increase.
-- Alloy tool steel: Imports were 101,607 tons, reflecting a 35% increase; U.S. consumption and import penetration are not calculable.
-- Electrical steel: Imports were 70,375 tons, reflecting a 1% increase; U.S. consumption was 336,744 tons, a 5% increase; import penetration was 21%, a one percentage point decrease.
Imports of total specialty steel (comprising stainless steel, alloy tool steel and electrical steel) YTD through October 2005 were 737,128 tons, reflecting an 8% increase; U.S. consumption was 2,326,438 tons, a 4% decrease; ten-month import penetration was 32%, a four percentage point increase.
ATLANTA, USA -- Novelis Inc. Toronto announced that it will exit the European aluminum casting alloys business. This will result in the closure of the company's casting alloys operation in Borgofranco, Italy, by the end of March 2006.
The plant currently employs 105 people. Novelis formally informed the relevant authorities and unions of the closure decision, as required by Italian law 223/91."The casting alloys business is not a core part of the Novelis strategy," said Chris Bark-Jones, president of Novelis Europe.
"We are focused on enhancing our product portfolio in high-value rolled-products markets where we enjoy technological leadership. The Borgofranco operation is not related to our rolling business and is not significantly linked to any of our other facilities.""In addition," he continued, "the plant operates in an environment of unfavourable economic conditions and structural overcapacity.
The facility is disadvantaged in terms of scale, technical capability and cost base. As a result, it has become increasingly less competitive in today's marketplace. Despite the efforts made by the plant's employees, it has recorded consistent losses.
All options, including a sale of the plant, have been fully evaluated, but we believe there is no feasible way of sustainably operating the plant."As part of the environmental remediation of the site, the salt cake recycling unit will continue to operate for a limited period in order to support the elimination of the salt cake by-product at the facility.Novelis Inc.
expects to incur a charge of approximately $24 million for the plant closure. Additional information regarding the charge will be available in the coming weeks. The final closure of the facility will benefit Novelis Europe since the losses associated with Borgofranco will be eliminated.
The blast furnaces in Gwangyang Works all achieved 204kg/T-P, the highest average rate of pulverized coal injection in the company, last October, greatly contributing to lowering ironmaking costs. POSCO set a new record by achieving an average rate of over 200kg/T-P of pulverized coal injection for three consecutive months since last August. After facing intense competition with Japan and China to lower the production costs of hot metal, the achievement is significant since it represents a new method to reduce processing costs.
The First Blast Furnace made a new record last August by achieving an average rate of 225.5kg/T-P of pulverized coal injection, and the Second Blast Furnace injected 213kg/T-P of pulverized coal last October, only four months after the firing of its second unit. Such achievements show the world the advanced state of POSCO's ironmaking technologies.
The Ironmaking Department of Gwangyang Works has established the "CS (Cost Saving) 1000 Movement" and the "H2 (High Efficiency) Project" throughout all ironmaking processes this year to further develop its ironmaking technologies in reaction to China-based Bao Shan Steel Iron Company's lowered costs. Gwangyang Works is focused on the process of pulverized coal injection, which greatly affects the production cost of hot metal and is considered the key to establishing higher competence. The Works developed and applied the technologies of mixing coals with high heating value and injecting separately packaged coal for stable quality of sintering.
As a result, POSCO has significantly increased the average rate of pulverized coal injection from 160kg/T-P to over 200kg/T-P. POSCO has also reduced production costs by using cheap pulverized coal to supplement the shortage of cokes from China, and has reduced the operation ratio of cokes by increasing the injection of pulverized coal to stably produce high-quality cokes. If the average rate of pulverized coal injection can be maintained over 200kg/T-P, the production costs of hot metal in blast furnaces will be reduced.
MITTAL CANADA: Mittal Canada Inc. signs a Letter of Intent for the acquisition of three Stelco subsidiaries
Mittal Canada Inc. signs a Letter of Intent for the acquisition of three Stelco subsidiaries Mittal Canada Inc.
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