Ukrainian Ferroalloy Production Doubles

Ukrainian Ferroalloy Production Doubles

Ukraine doubled its ferroalloy output in the first seven months of this year, according to figures released by Ukrainian Ferroalloy Producers' Association.

Output for the period grew to 871,500 tonnes. Silicon manganese production grew 83.1 per cent to 573,700 tonnes, ferromanganese rose 260 per cent to 173,000 tonnes, ferrosilicon 45 output rose 71.7 per cent to 116,400 tonnes and manganese metal production was up 7.7 per cent to 8,400 tonnes.

The country’s largest producer, Nikopol Ferroalloy Works (NFW), raised silicon manganese production 65.8 per cent year-on-year in the seven months to 421,000 tonnes while ferromanganese production was up 460 per cent to 132,500 tonnes. Overall ferroalloy output at Nikopol rose 140 per cent year-on-year to 554,000 tonnes.

Zaporizhia Ferroalloy Works (ZFW) saw silicon manganese production more than double to 103,100 tonnes with output of ferrosilicon 45 rising 120 per cent to 33,800 tonnes. ZFW’s ferromanganese was up 64.4 per cent to 40,500 tonnes and manganese metal production rose 7.7 per cent to 8,400 tonnes. Total ferroalloy output at ZFW doubled to 185,800 tonnes.

The Stakhanov Ferroalloy Plant (SZF), doubled its total production to 131,700 tonnes, while the country's two manganese concentrate producers, the Ordzhonikidze and Marhanets mining and beneficiation plants, produced 846,500 tonnes of concentrate between them in January-July - more than double the production in the same period of last year.

Vietnam Ferromanganese Plant Hit By Delay

Delay In Site Choice Halts FeMn Project

Plans to build a $10.8 million ferromanganese plant in the Vung Ang Economic Zone in Vietnam’s Ha Tinh province have been hit by a delay in choosing a site for the plant.

Vietnam’s Manganese Mineral Joint Stock Company and the Taiwanese-backed Chinese company Stanco International Corporation signed a memorandum of understanding on establishing the joint venture in December 2009, however despite working with the Vung Ang zone authority to find a suitable site for the project the partners have not been back to the area for two months.

“The locations they temporarily chose have already been given to other investors, who are quickly expediting the construction of their projects,” said the authority’s Thaii Van Hoa, who is also director of the Ha Tinh Investment Promotion Centre.

“The slowness of this project could mean they [the firms] may not have an opportunity to do business here,” Mr Hoa said. Manganese Mineral director Nguyen Dinh Lan said that the two companies were designing the project and its environmental protection report.

“It is expected that the designing will be completed soon and will be licenced and constructed within this year. The province’s authorities said they wholly supported this joint venture,” Mr Lan said. However Mr Hoa responded that the authority cannot wait too long for the ferromanganese project to commence as other investors are keen to move into the zone.

“At present, most of the zone’s land has already been filled with many projects,” he said.

On completion the plant will manufacture more than 50,000 tonnes a year of ferromanganese per year, which would eventually be supplied for steel-making projects within the zone. However, much of the initial output will be sold to other steelmaking companies in Vietnam as the Vung Ang steelmaking projects have yet to be completed.

The Vung Ang ferromanganese project will use raw materials from Ha Tinh’s manganese ore mines and is the latest steel-related project to be given the go-ahead in Vietnam.

On Friday, Japan’s Kobe Steel announced that it would build a $1 billion iron ore nugget plant in the northern province of Nghe And. In November 2009, the Cao Bang Manganese Joint Stock Company in northern Vietnam signed a $1.72 million deal with a Chinese company to build a ferromanganese manufacturing factory in Cao Bang province’s Hoa An district; and in October, 2009, Thai Nguyen province announced the construction of a $15.13 million ferromanganese and siliconemanganese manufacturing factory in the Song Cong Industrial Park, expected to come online by late 2010.

Huge Increase In Ukrainian Ferroalloy Production

Ukraine’s ferroalloy industry confirmed its recovery when the Association of Ukrainian Ferroalloy Producers (UkrFA) reported that production in the first two months of 2010 increased by 2.9 times to 240,700 metric tonnes compared to the first two months of last year.

Silico-manganese output rose 2.8 times to 158,100 mt, ferromanganese production rose 5.4 times to 46,100 mt; ferrosilicon output increased 2.2 times to 33,700 mt, and metallic manganese production rose 86.7 percent to 2,800 mt, all compared to the same period of 2009.

The three largest ferroalloy producers all reported significant increases: Nikopol Ferroalloy Plant, increased its output by three times to 148,600 mt, including 112,900 mt of silico-manganese and 35,700 mt of ferromanganese. Zaporozhye Ferro Alloys Plant increased its ferroalloys output by 2.6 times to 53,800 mt, including 31,600 mt of silicomanganese, 9,000 mt of ferrosilicon, 10,400 mt of ferromanganese, and 2,800 mt of metallic manganese. Stakhanov Ferroalloy Plant increased its output by 3.3 times year on year to 38,300 mt, including 24,700 mt of ferrosilicon and 13,600 mt of silico-manganese.

Turkey's Ferroalloy Imports Fall 19 Per Cent In 2009

Turkey's ferroalloy imports fell by almost 19 percent in 2009. Total imports were 314,661 metric tons according to figures from the Turkish Statistical Institute (TUIK).

Ferromanganese imports were 46,760 metric tons, down 36.22 percent on 2008; ferrosilicon imports were 62,655 metric tons, down 14.54 percent; ferrosilicon-manganese imports were 193,324 metric tons, down 1.18 percent; and ferrochrome imports totalled 2,786 metric tons, down by 98.58 percent.

Ferroalloy imports from the CIS countries accounted for 77 percent of total ferroalloy imports, while imports from Europe constituted 9.6 percent and Asian countries 8.5 percent.

Ukraine To Investigate Ferroalloy Imports

The Ukrainian Interdepartmental Commission on International Trade is to investigate import the import of some ferroalloy products into Ukraine. Ferromanganese with a carbon content of more than two percent (excluding ferromanganese granules of more than 5 mm and with manganese content of more than 65 percent) and ferrosilicomanganese will be subject to the investigation regardless of origin.

The investigation has been requested by the Association of Ukrainian Ferroalloy Producers (UkrFA) and a number of ferroalloy producers including the Nikopol Ferroalloy Plant (NZF), the Zaporizhia Ferroalloy Plant and the Stakhanov Ferroalloy Plant (SFP).

In a statement released by the complainants Ukraine’s ferroalloy output decreased by 59 per cent in Q3 2009 compared to Q3 2008, however ferroalloy imports increased by 219 percent, while prices went down by 38 percent.

In 2009, Ukraine’s ferroalloy output decreased by 25.2 per cent against 2008 to 1.036 million mt, however ferroalloy imports increased by 5.4 times year on year to 103,350 mt. This included 58,940 mt of Ferrosilicomanganese imports were 58.940mt, up 4.3 times compared to 2008, ferromanganese imports were 35,600 mt - up 11.6 times - and ferrosilicon imports were 8,610 mt of ferrosilicon - up 4.1 times. Ukraine imports ferroalloys mainly from Russia, Kazakhstan, Georgia and China.

Chinese Manganese Company Exploring In Fiji

A Chinese manganese smelting company will soon carry out exploratory work in Fiji.
China Yunnan Metallurgical Company (CYMCO) will carry out exploration work on on potential manganese deposits in Nasaucoko in the upper-reaches of Navosa on Fiji’s largest island, Viti Levu. The work is expected to cost $5million over the next three years.

The Fijian government has granted a 30-year surface lease to Viti Mining Limited which is exploring in the area. Viti CEO John Sanday said that mining is expected to start next month. Mr Sanday said CYMCO officials were impressed with the manganese ore grade in Fiji during a visit in December. Of CYMCO he said "by the end of the year it will be the biggest manganese smelting company in China and in a couple of years it will be the biggest in the world with an output exceeding one million tonnes of manganese ferroalloy per year," he said.

The manganese ore is expected to be bought by CYMCO at market prices.

Chek-Su.VK Signs Agreement For Manganese Processing Plant

Russian mining and smelting company CHEK-SU.VK has signed an agreement to build a manganese ore processing plant in the Krasnoyarsk Region of Russia.

Supplies of ore from deposits in the Kemerovo Region will be transported to the plant via Khakassia to be processed.

The project's total value is estimated at RUB 22 billion and will be completed in 2013.

The agreement was signed at the Krasnoyarsk Economic Forum which opened on Friday. Around 1000 representatives of government agencies and business have gathered at the forum to discuss issues of modernisation.

Assmang To Produce Ferromanganese At Machadodorp Works

South African ferrochrome producer Assmang has announced to shareholders that it plans to convert one of the furnaces at its Machadodorp Works to produce high-carbon ferromanganese, rather than ferrochrome. The converted furnace is expected to produce 4000 tonnes per month of HCFeMn and production will commence by the middle of this year.

In its statement Assmang said that it needs to meet higher than expected demand for high-carbon ferromanganese but that it does not have excess capacity at its Cato Ridge Works to expand production.

The company said that it still expects to meet its contractual obligations for ferrochrome and that it is committed to continuing ferrochrome production. Its ferrochrome furnaces were idle for much of 2009.

Nippon Steel Increases Stake In Ferromanganese Producer Nippon Denko

Nippon Steel Corporation has increased its stake in ferroalloy producer Nippon Denko from 9.5 percent to 15 percent. Nippon Denko will become an equity method affiliate of Nippon Steel.

The decision came after the companies' agreed to further strengthen their alliance, in order to enhance their competitive edge and corporate values.

The two companies have maintained a close business relationship through their trade in ferromanganese and the new agreement will enable both companies to stabilise their procurement of raw materials – including manganese ore – for Nippon Denko and to conclude a long-term sales and purchase agreement for ferromanganese produced by Nippon Denko.

Turkey Imported 84 Per Cent More Ferroalloys In November

According to the customs statistics compiled by the Turkish Statistical Institute (TUIK), in November 2009 Turkey imported 32,837 metric tons of ferroalloys, increasing its imports of the products in question by 84.48 percent compared to October.

In November, of the various ferroalloys, the country's ferromanganese imports increased by 2.5 times, reaching 3,289 metric tons, ferrosilicon imports totaled 5,805 metric tons, rising by 43.48 percent, while ferrosilicomanganese imports amounted to 22,173 metric tons, up 89.32 percent, all compared to October.

Source: Steel Orbis

Ukraine Ferroalloy Production Down By A Quarter In 2009

According to the Association of Ukrainian Ferroalloy Producers (UkrFA), in 2009 Ukraine registered a 25.2 percent decrease year on year in its ferroalloys production to 1.036 million mt.

Accordingly, in 2009, Ukraine's silicomanganese output decreased by 15.6 percent to 741,900 mt, its ferromanganese production went down by 64 percent to 129,400 mt, its ferrosilicon output increased by 7.4 percent to 150,300 mt, while its metallic manganese production went up by 75.6 percent to 15,100 mt, all compared to 2008.

SourcE: Stele Orbis

SAIL Subsidiary To Build New Chandrapur Furnace

Maharashtra Electrosmelt Ltd a SAIL subsidiary will invest INR 200 crore to set up a furnace with capacity of 42,000 tonnes per annum at its Chandrapur plant.

Maharashtra Electrosmelt sources said that "Its board has already cleared the expansion proposal and it has been sent to the sub committee of Steel Authority of India Ltd board for approval.”

Sources said that it would require an investment of around INR 200 crore and once it is cleared by the sub committee, global tenders would be floated for the purpose. It would take two years from the date of placement of the order to get the furnace commissioned. This furnace for the Chandrapur plant will have a capacity of 42,000 tonnes per annum for increasing production of silicomanganese.

Sources said that Maharashtra Electrosmelt at present supplies 50,000 tonnes of ferromanganese required by SAIL plants, besides meeting 40% demand for silicomanganese. Post expansion, MEL would be in a position to fulfill 70 per cent silicomanganese requirements by SAIL plants.

Sources further added that apart from capacity expansion, a 67.5 MW power plant has been proposed to be set up at Chandrapur by NSPCL a joint venture company of NTPC and SAIL to reduce MEL's dependence on external sources of electricity.

Sources said the proposal for a power plant is now at a preliminary stage. Currently, MEL has a power plant with 4.2 MW capacity which is fired by the gas generated in a blast furnace.

Source: Steel Guru/Business Standard

Output Down At Zaporozhye Ferroalloys Plant

During 11 months of 2009, Zaporozhye Ferroalloys Plant in Ukraine reduced its silicomanganese output by 54.6% to 102,400 tonnes, ferrosilicon (in recalculation to 45%) by 40.9% to 34,300 tonnes, ferromanganese by 46% to 47,500 tonnes. Production of metallic manganese increased by 58.1% to 13,600 tonnes.

In 2008 in comparison to 2007, ZFZ reduced its output by 21.4% to 386,200 tonnes, silicomanganese reduced by 29.9% to 227,100 tonnes, metallic manganese by 23% to 8,700 tonnes, ferrosilicon (in recalculation to 45%) by 14.5% to 60,400 tonnes, ferromanganese output increased by 5.5% to 90,000 tonnes.

The plant supplies 30% to 35% of its production to the local market, the rest goes for export to CIS, EU, Asia and Africa.

Source: Steel Guru

Turkish Ferroalloy Imports Fall In October

According to customs statistics compiled by the Turkish Statistical Institute in October 2009, Turkey imported 17,800 tonnes of ferroalloys decreasing its imports of the products in question by 44.2% as compared to September.

In October the country's ferromanganese imports declined by 84.38% reaching 939 tonnes, ferrosilicon imports totalled 4,046 tonnes decreasing by 44.33% while ferrosilicomanganese imports amounted to 11,712 tonnes down 34.77% all compared to September.

Source: Steel Guru

Steep Fall In Ukrainian Ferroally Production

According to the Association of Ukrainian Ferroalloy Producers, in January to October this year Ukraine registered a decreased of 41.5% YoY in ferroalloys production to 810,700 tonnes.

During the first ten months of 2009, Ukraine silicomanganese output decreased by 33.8%YoY to 582,000 tonnes, ferromanganese production went down by 72.6% YoY to 98,500 tonnes, ferrosilicon output dropped by 15.9% YoY to 117,800 tonnes while metallic manganese production increased by 44.2% YoY to 12,400 tonnes.

According to the preliminary data, in January to October this year the largest Ukrainian ferroalloy producer Nikopol Ferroalloy Plant reduced its ferroalloy output by 36%YoY to 520,700 tonnes including 463,400 tonnes of silicomanganese down by 16.6% YoY and 57,300 tonnes of ferromanganese down by 77.7% YoY. Since the beginning of the year, the plant has not produced any other ferroalloys.

Source: Steel Guru

POSCO To Expand Energy and Materials Businesses

POSCO, the world's fourth-largest steelmaker, is aggressively widening its business lines, particularly in eco-friendly energy and materials business, as the company seeks new growth engines.

On Aug. 22, the steelmaker set up an affiliate POSCO Electrical & Electronic to transform household sewage into so-called "refuse-derived fuel" and use it to generate electricity. The heat generated during the procedure can be used for other purposes.

In other words, POSCO E&E dries and reshapes sewage to make it a complementary coal fuel used to generate electricity.

POSCO officials said the company is doing the waste-to-fuel business in Busan and Pohang only, but plans to expand the business across the nation.

Another growth engine of the steelmaker is development of fuel cells that can replace diesel engines currently used for ships.

The company's subsidiary POSCO Power plans to develop related fuel-cell technologies from as early as next month.

POSCO said the new technology will help ships comply with the international regulation which forces shipbuilders to reduce nitrogen oxide emissions by twice the current reduction level by 2016.

POSCO Power will start building a "stack" manufacturing plant at the fuel cell production mill in Pohang from the end of the year, company officials said. The facility is essential in generating electricity.

"POSCO will invest 432 billion won ($368.6 million) by 2012 to commercialize a third-generation fuel cell that can replace the phosphate and melted carbonate fuel cell," a POSCO official said.

The steelmaker is also eyeing on synthetic natural gas manufacturing business using cheap coal, in partnership with SK Energy.

After gasification of cheap coal in high temperature and high pressure, the company can produce synthetic natural gas through refining and synthesis process, official said.

Only the United States is operating one synthetic natural gas manufacturing plant now and the future prospect of the business is remarkably bright, they said.

POSCO plans to invest 1 trillion won by 2013 to build a coal gasification plant to produce 500,000 tons of synthetic natural gas a year, according to the company.

Through this business, the steelmaker will be able to secure synthetic natural gas that is 30 percent cheaper than existing natural gas as well as to help the local industry reduce 200 billion won worth annual imports of expensive natural gas, company officials said. The large-scale investment will also help create more than 300,000 jobs a year, they said.

The development of synthetic natural gas is part of the Ministry of Knowledge Economy's "future growth smart projects."

Materials development is another sector for POSCO to find fresh revenues.

Last month, the company held an across-the-board workshop to discover new opportunities in comprehensive materials business such as super-strong, super-light materials and next-generation new materials in Gyeongju in North Gyeongsang Province.

POSCO is to review each business prospect for each material by the end of this month and reflect it in the mid-term management strategy, company officials said.

"From early next year, the company will be able to actively engage in R&D for materials applications and related business," a POSCO official said.

POSCO CEO Chung Joon-yang signed a memorandum of agreement on Sept. 29 with Kazahkstan's UKTMP to jointly establish a titanium slab manufacturing firm.

Under the agreement, POSCO and UKTMP will each invest 50 percent of stakes in the company to build a titanium slab plant in Ust-Kamenogorsk, eastern part of Kazakhstan.

If the titanium slabs are shipped to POSCO in Korea to make titanium coil, Korea will become the world's fourth country to produce titanium-based coil after Japan, Russia and the United States, the steelmaker said.

Titanium is resistant to sea water, light but strong and nonferrous metal which can be used for shipbuilding, atomic power generation, water containing, airplane engines and frames.

On Sept. 1, POSCO established ferromanganese manufacturing company POS-HiMetal. The company plans to start the construction of the plant in April next year and complete the construction in September 2011, to produce 75,000 tons of highly pure ferromanganese a year, POSCO said.

Highly pure ferromanganese is used as raw materials for automobile high manganese steel. To date, Korea used to import solid manganese metal 100 percent from China but the supply has recently become somewhat instable.

POSCO witnessed the need for development of highly pure ferromanganese because too much input of solid manganese metals lowered the temperature of molten iron to an excessive level, causing quality deterioration and cost buildup.

POSCO will spend 220 billion won in building the highly pure ferromanganese manufacturing plant and adopt Dongbu Metal's patented technology in the early business period, the steelmaker said.

Source: Korea Herald

Novolipetsk In Talks To Buy Ferromanganese Producer

Russian steelmaker Novolipetsk Steel is interested in the acquisition of ferromanganese producer Alapaevsk Iron and Steel Works located in the Sverdlovsk region from the Ukrainian Privat Group.

Mr Anatoliy Gredin Sverdlovsk region's minister of industry and science said "We have so many problems with foreign investors. Alapaevsk Iron and Steel Works employed more than two thousand workers before, while today it employs 70 people. The plant has been stopped. Currently, we are carrying out negotiations with NLMK in relation to their bid to acquire this enterprise."

Mr Gredin said for a year now NLMK has been conducting negotiations with the Ukrainian side for the purchase of the plant, but the talks are proceeding with great complications as the two sides cannot agree on the price. According to the calculations of experts, the maximal market price of the plant is USD 10 million.

Alapaevsk Iron and Steel Works are specialized in the production of ferromanganese in blast furnaces and have an annual production capacity of 40,000 tonnes. The plant, 100% owned by Privat Group, stopped its operations in 2005, when it produced 13,000 tonnes of ferromanganese.

Source: Steel Guru

POSCO Announces Ferromanganese Subsidiary

POSCO announced on September 1st 2009 the establishment of POS-HiMetal, a new affiliate to produce refined ferromanganese, which will be a strategic product of the steelmaker.

In April 2010, POS-HiMetal will start construction of a facility capable of producing 75,000 tonnes of refined FeMn annually. The facility will be completed in September 2011. The FeMn produced at the plant will be used to make high manganese steel products at POSCO's Gwangyang Works.

Source: Steel Guru

Ferroalloys Corp To Invest US$30mn In Zambia Plant

Ferro Alloys Corporation Limited has invested 30 million U.S dollars in setting up a Manganese plant in Kabwe, Zambia.

Company Managing Director, Rajnish Gupta says the plant will be producing 200 tones of ferro-manganese, a component used in the manufacturing of steel.

He was speaking when Zambia's Commerce Minister, Felix Mutati, toured the project site in Kabwe.

And Mr. Mutati said government will continue providing incentives to encourage companies to invest in Zambia.

Source: ZNBC

$65 Million Manganese Smelter Planned For Indonesia

Two regional governments in East Nusa Tenggara (NTT) province have signed an agreement with consortium Mangan JSK International Co. Ltd and PT AGB Mining, to establish a Rp 650 billion (US$65.5 million) manganese smelter.

An email statement from the Energy and Mineral Resources Ministry said the NTT provincial government and the Kupang regency government had signed the agreement on Wednesday.

"The smelter will produce Ferro Manganese, Silicon Manganese and Ferro Nickel Chrome, among others," the statement said.

The products can be used for steel, batteries, ceramics and the production of chemicals. The plan will cover activities in surrounding regencies with a volume of about 1,000 tons a month, and a smelter construction with an installed capacity of 60,000 tons a year.

The Mangan consortium includes local and foreign companies: PT. AGB Mining, PT. Pusaka Pertambangan Mina, PT. Berkah Kencana Sakti, CV. Jasindo Utama and South Korea's J.S.K. International Co. Ltd

Source: Jakarta Post