Metals and Mining

Dniprovsky Iron & Steel Works named after Dzerzhinsky, or simply Dzerzhynka [DMKD UZ, BUY], produced only 115 thsd mt of crude steel in August 2008. According to Metal Courier, the reason is the lack of orders

The Evraz Group [EVR LI, N/R] has conducted conference calls with analysts and the press on its interim 1H08 results. Several announcements relevant to Ukrainian assets and plans were made.

According to official filings by Poltava GOK [PGOK UZ, HOLD], the company has received the first two tranches of a USD 500 mln loan

Vladimir Boyko, the CEO of Mariupol Illich Iron & Steel Works [MMKI UZ, BUY], warned that his company may cease operation within two to three days due to lack of orders. At a meeting in the Cabinet of Ministers of Ukraine, Boyko said that there was only two production days left of orders. According to some reports, he said that after two days the plant may halt its production.

Dnipropetrovsk Iron & Steel Works named after Petrovsky [DMZP UZ, BUY], or Petrovka, has completed a USD 25 mln, 50-day upgrade of its Blast Furnace No. 2. According to UGMK.info, as the next step in blast furnace shop advancements, Petrovka plans to upgrade BF No. 5 in 2010.

According to Kommersant-Ukraine, an obscure Russian company – Prospetsinvest LLC – is interested in the Ukrainian State Company Rovenki Anthracite. For starters, Prospetsinvest will contribute USD 120 mln in equipment and USD 60 mln in investments in return for 40% of profits, as agreed in a collaboration agreement. Kommersant-Ukraine also notes that in the future, should Rovenki Anthracite come up for privatization, Prospetsinvest will have priority as a past collaborator with the company.

Nikopol Ferroalloys [NFER UZ, N/R] will conduct an AGM on October 08. Among the topics on the agenda are: profit distribution for 2001, 2002, 2003, 2005, 2006, and tentatively for 2008; management board reports for these years; and technical matters, such as the new edition of its statute.

Dniprovsky Iron & Steel Works named after Dzerzhinsky, or simply Dzerzhynka [DMKD UZ, BUY], is reportedly conducting trial production tests on a brand new concaster No. 1. According to UGMK.info, the 1.5-1.7 mln mt concaster will be tuned up after the trial tests and subsequently commissioned for production.

The Metinvest Group got approval at a public hearing of its plan to construct a coal transloading terminal in Sevastopol. The Group’s stevedore company, Avlita, plans to invest USD 170 mln (including USD 30 mln allocated for ecology-related items) into construction of the transloading terminal.

Azovstal [AZST UZ, U/R] is tuning up its new 2.5 mln tpa concaster No. 6, constructed within the realms of a 2003-2008 USD 826 mln CapEx program.