It is reported that Jharkhand Mineral Policy, 2006 has been drafted by the State Mines Department that proposes a Mine Plan Approval Cell, to grant permission to a mine application for minerals like iron ores as notified by the Central government as Jharkhand government plans to make it compulsory for every investor who has been leased a mine to do value addition to the ores within the state.

As per plan the lease is proposed to be recommended exclusively for the captive consumption of the project. The plan states that once a project achieves 25% of the proposed investment, has achieved financial closure and has commenced civil construction work, it would be eligible to be sanctioned mining lease of iron ore.

The state government is also to follow a 5 fold criteria for assigning inter se priority for recommending mining lease to the Central government for obtaining its approval capacity of the proposed plant, progress of implementation, level of value addition, size of investment and holistic design to utilize the mine.

National Mineral Development Corporation has proposed to set up a sponge iron plant with an annual production capacity of 0.1 million tonnes along with a 10MW power plant at Nagarnar in Chhattisgarh as part of its expansion drive.

Mr Ram Vilas Paswan minister for steel, chemicals and fertilizer said The PSU was also planning to set up an integrated steel plant in Bailadila area to meet the demand of value addition from the state government. NMDC is also finalizing plans to merge Sponge Iron India Limited located in Andhra Pradesh with itself.

After the high level meeting in New Delhi, Jharkhand government is hoping to settle the legal battle with the Steel Authority of India Limited for Chiria mines will be settled outside court so that it can be allotted to Mittal Steel for its proposed plant in the state.

IANS has reported citing an official of Jharkhand as saying that "We are hopeful that the central government will ensure that the issue is settled out of court. We are also optimistic that SAIL will agree to give the Chiria mines to the state. Chiria has huge deposits of iron ore. SAIL may get the required iron ore and the rest could be given to the state. An early settlement will help the state in allocating the mines to investors to expedite the investment work in the state."

As per earlier reports Jharkhand CM MR Arjun Munda has promised Chiria iron ore deposits to Mittal Steel when the investment was announced but has not been able to do anything in this regard as the mines belong to SAIL. After Mining Tribunals ruling in favor of SAIL, Jharkhand government has filed an appeal in the Jharkhand High Court.

The Chiria mines are located in West Singhbhum district of Jharkhand. It has rich quality iron ore and the deposits are likely to be around 1.4 billion tonnes.

It is reported that Indian Army has decided against going ahead with rescue operations in an abandoned coal pit in the Neturia area of West Bengal's Purulia district as it believes that the chances of survival of those who may have been trapped is virtually nil six days after water submerged the pit and flooded its depths.

An assessment of the situation was made following a visit to the site by two officials of the Territorial Army who informed the authorities that the water level in the 180 foot deep pit had risen to nearly 150 feet as swirling waters from the Damodar and Barakar rivers kept gushing into the pit. Toxic fumes were emanating from the pit, the Army authorities were informed.

There is no official record of the number of persons who may be trapped but the Dhanbad district administration said that 10 persons have been reported missing. Unconfirmed reports, however, say that the number of those trapped inside the mine could be higher.

The mine was abandoned by private owners prior to 1970. Illegal extraction of coal from such mines in the region was a regular occurrence.

The National Mineral has paid an all time high dividend of 276.62% amounting to Rs 3.65 billion to the government for the year 2005-06, with final dividend of Rs.1.11 billion. Mr B Ramesh Kumar CMD of NMDC handed over the dividend cheque to Mr Ram Vilas Paswan minister of steel, chemicals and fertilizers.

NMDC had earlier paid the first interim dividend of 76.93% in November, 2005 (Rs. 100.03 crore) and the second interim dividend of 115.40% in February, 2006 (Rs.150.04 crore). The total dividend paid to the government for the year 2005-06 works out to Rs. 359.66 crore.

NMDC has witnessed 126.38% growth in its profit before tax to Rs. 2,883.82 crore in 2005-06, an all time record, on a turnover of Rs. 3,710.92 crore as against the previous years profit of Rs. 1,287.49 crore on the turnover of Rs. 2,229.99 crore Its net worth has gone up by 55.11% to Rs.3,984.53 crore from Rs. 2,568.77.

Ivory Coast is keen on bilateral cooperation with India in the mining sector. Mr Monnet Leon Ivory Coasts mines, energy and petroleum minister after a meeting with Mr T Subbarami Reddy Indian minister of state for mines said that there were good prospects for cooperation in the fields of exploration, extraction, survey and mining technology.

Mr. Leon showed keen interest in entrusting exploration and mining of these minerals to Indian entrepreneurs through joint ventures. It was decided that the Federation of Indian Mineral Industries would be given an opportunity to participate in such joint ventures. Mineral Exploration Corporation Limited will also explore the possibilities of undertaking such activities.

Ivory Coast has mineral resources like bauxite, limestone, iron ore, manganese, nickel, gold and diamonds which have not been significantly explored.

Standard & Poor's Ratings Services has affirmed its 'BBB' corporate credit rating on Tata Steel Ltd. The outlook is stable. At the same time, S&P affirmed its 'BBB' rating on TATA Steel's $500 million equivalent 7 year senior unsecured bank loan facility.

Mr Anshukant Taneja credit analyst with S&P said "The ratings on Tata Steel are supported by its position as one of the lowest cost steel producers in the world, its increased geographical diversity, and its broader product mix. The rating on Tata Steel also benefits from the company's moderate financial profile and robust domestic demand for steel, which is expected to expand 7%-8% a year."

Mr Taneja said "We do not, however, foresee a significant weakening in the company's liquidity, given its efficient working capital cycle, relatively stable operations, and high financial flexibility. The stable outlook reflects the expectation of a successful expansion of Tata Steel's domestic operations and integration of its acquisitions. We have only factored in expansions that are being implemented and its committed investments. Should the company proceed with other expansions or acquisitions, we will assess the company's new funding plan and the impact on credit protection measures."

Mr Taneja said that "The rating on Tata Steel is, however, constrained by inherent industry risks, increasing exposure to project-related risks, and integration challenges from its acquisitions. Tata Steel is exposed to cyclical steel prices, resulting in some unpredictability in its earnings. Although prices have recovered in recent months, hot-rolled coil prices dropped to about $410 per tonne between April-December 2005, from an average $595 in January 2005.

ISMT Limited has reported net profit of Rs 188 million for April to June 2006 quarter down by 5.6% YOY over Rs 199.6 million during April to June 2005. Its gross sales & income from operations surged to Rs 4528.5 million during Q1 of 2005-06 up by 94.6% over Rs 2326.8 million in Q1 of 2005.

ISMT has two segments, tube and steel, which accounted for segment revenue of Rs 2345.2 million and Rs 2183.3 million respectively. The company said that the figures of current and previous year quarter are not comparable since previous years quarter figures represent stand alone Indian Seamless Steel and Alloys Ltd. Accordingly segment reporting for the previous quarter is not applicable.

National Mineral Development Corporation Ltd has informed BSE that Dr DP Bagchi, Dr S Ramnarayan, Prof S Sadagopan and Mr Shanti Narain, have ceased to be the Directors of the Company on July 30, 2006, upon completing their tenure.

It is reported that Baosteel Group has accelerated the pace of takeover talks with Bayi Steel as Chinas steel industry consolidation gathers pace and Ms Xie Qihua chairwoman of BaoSteel is visiting Chinas western region of Xinjiang for takeover negotiations with Bayi Iron and Steel Group, parent of listed Bayi Iron and Steel Co.

Baosteel, parent of Baoshan Iron and Steel Co and Bayi signed a cooperation agreement in March. They said then it would lead to a takeover, but did not give a timetable. The deal gives Baosteel access to Central Asian markets for construction steel, as well as Bayis coal and iron ore reserves.

Bayi has an annual capacity of 3 million tonne of long products and has nearly completed a mill with an additional capacity of 3 million tonne of flat products. Mittal Steel is also reported to have approached this mill for take over 2 years ago.

Canadian diversified miner Teck Cominco has Australian iron ore assets on its wanted projects list. Mr Don Lindsay president and CEO of Teck told reporters on the sidelines of the annual Diggers and Dealers mining forum in Kalgoorlie that the company kept a top ten list of assets which it would like to add to its portfolio. He said "We will be looking at a range of opportunities and there are opportunities here, but at the moment there is nothing we would move on quickly."

Mr Lindsay said that if its takeover bid for Inco did not materialize the company would be flush with cash and start looking at its list of wanted projects. He said "If we are unsuccessful with Inco we don't have to rush and do something else with nickel, we could move to iron ore, diamonds, copper or anything else."

Mr Lindsay said that iron ore was a complimentary fit with Teck's other projects and the company was keen to boost the portion of revenues coming from such fixed price commodities. He said "The key in iron ore for us is if we made that move we'd want to get into a project that is not currently operating."

Mittal Steel has announced the details of the sell out right that, pursuant to Luxembourg law, entitles the remaining shareholders of Arcelor to sell their Arcelor shares to Mittal Steel within three months following the end of the on-going subsequent offering period from August 18 2006 until November 17 2006.

In a release it said that in order to conform to Luxembourg law and to give effect to the exercise of the sell out right, the remaining shareholders of Arcelor may sell their shares solely for cash, at a price of Euro 40.40 per Arcelor share, which the Luxembourg Commission de Surveillance du Secteur Financier has indicated was the fair price of the all-cash consideration to be offered in the sell out proceedings.

In order to comply with the provisions of the Luxembourg takeover law relating to the sell out, as from August 18, 2006 and throughout the three month period ending on November 17, 2006 (inclusive), Mittal Steel will have a standing buy order at a price of Euro 40.40 per Arcelor share, on each of the markets where Arcelor shares are listed, including on Euronext Brussels, Euronext Paris, the Luxembourg Stock Exchange and the stock exchanges of Barcelona, Bilbao, Madrid and Valencia. Settlement of such trades will take place in accordance with the applicable rules on each such market.

If at any time prior to November 17 (inclusive) Mittal Steel holds 95% or more of the capital and voting rights in Arcelor, Mittal Steel will require, in accordance with Luxembourg law, the remaining shareholders of Arcelor to sell their Arcelor shares to Mittal Steel at a price of Euro 40.40 per Arcelor share. When Mittal Steel exercises such right, a further press release will detail the conditions of such squeeze-out and the sell-out proceedings will then be terminated.

In response to some media reports Saudi Arabian Basic Industries Corporation SABIC has clarified that it had requested the respective memorandum of information pertaining to the Suez Steel Plant in order to study the economic feasibility of the project but has decided against bidding in this project.

SABIC said that it already has strategic plans in place to expand its iron and steel capabilities and will continue to explore other opportunities.

Fortescue Metals Group is confident of settling the financing of its $3.7 billion Pilbara iron ore project within the month.

Mr Rod Campbell company secretary, sitting at the annual Diggers and Dealers mining forum for CEO Mr Andrew Forrest, who is currently in the US selling the $2.5 billion debt component of the capital raising, said the feedback from the fundraising trip had been positive so far and would be settled by the end of August.

Mr Campbell said "It's a great story, it's a great opportunity to take advantage of China and the forecasts for China and having your political risk in Australia. There has been a lot of interest and Andrew has been well received."

Fortescue had looked to the overseas capital markets on advice from its advisers Citigroup and had not included any Australian institutions in the current road show. First production from the 45 million tonne a year Pilbara mine is planned for the first quarter of 2008 and will include construction of a port and railway.

Russian United Metallurgical Company OMK plans to build 2 new external anticorrosion coating lines for large diameter pipes at its Vyksa Metallurgical Plant and also modernize an internal anticorrosion coating line for large diameter pipes at a combined cost of 2 billion rubles. OMK is now designing and selecting the equipment suppliers for the two new lines, construction of which is scheduled to begin in September 2006 and be completed in January 2008.

The new lines will apply external anticorrosion polyethylene coating to pipes with diameter of 530 to 1420 mm with a thickness of up to 48 mm.

VMZs large diameter pipe division already has a coating line that was launched in October 2005. The old line includes shot blast finishing, coating and quality control equipment, applies internal and external anticorrosion coating. The equipment of the two new lines will be similar to what VMZ already has but more universal in terms of technical characteristics.

The new lines are being built to accommodate the considerable increase in production of large diameter pipes at VMZ amid growing demand from Russian oil and gas companies for insulated pipes for construction of pipelines and development of new fields. OMK reckons that insulated pipes will account for 90% of all pipes with diameter of up to 1020 mm used in Russia in the next three or four years.

Developer of the high grade Koolan Island Iron Ore Project Aztec Resources Limited announced that it has raised A$42.3 million after 99.4 pct of option holders exercised their options at 17 cents each and that the shortfall, representing approximately 1.5 million new Aztec shares, has been successfully placed by the underwriters. Aztec said it will use the funds raised for the continued construction and development of the Koolan Island Iron Ore Project.

Mr Ian Burston chairman of Aztec said that Aztec board is delighted with the level of support from the exercise of the options from ASX and AIM investors. Construction at Aztec's Koolan Island Iron Ore Project is progressing well with first production due in December 2006 and first shipments of iron ore are expected in early 2007.

IUD controlled Dneprovskiy Steelworks during January to July 2007 has increased hot metal production to 1.87 million tonnes up by 13.7% YOY, crude steel output to 2.12 million tonnes up by 17.4% YOY and rolled steel output to 1.85 million tonnes up b y 13.5% YOY. Its sinter production also increased to 3.13 million tonnes up by 12.1% YOY.

DMKD produced 0.49 million tonnes of sinter, 0.29 million tonnes of pig iron, 0.32 million tonnes of steel, and 0.30 million tonnes of rolled steel in July 2006.

DMKDs steel production was 3.22 million tonnes in 2005 down by 0.8% YOY over 2004 with net sales of $935.1 million and net income of $62.2 million.

Russian steel trading company Kashira has ordered equipments and installation of a continuous hot dip galvanizing line on turn key basis to be set up at Kashira 100 kilometers south of Moscow. The start up is scheduled for September 2007.

HDG line will have a capacity of 215,000 tons per year. The galvanized steel products will be used in the household appliance and construction industries.

Supreme Court of Pakistan has released detailed 80 page decision verdict against the privatization of Pakistan Steel Mills on Tuesday, which held that the cabinet committee for privatization had overlooked the recommendations of privatization commission, showed too much haste in privatization of mills and had violated the mandatory laws.

The apex court maintained that steel mill is a major industry and massive irregularities have been committed in its sale. The privatization process was completed on one day on March 30, 2006. The scrutiny of consortium was not conducted. The verdict says that steel mill was handed over to bidder for three years and no surety was obtained what the buyers would do with this mill after three years. One clause should have been made part of the agreement that the consortium would not sell out the mills. The SC further ruled that the privatization commission has violated the rule 4 and did not ascertain the whereabouts of the successful bidder.

The apex court further held that under article 8 of constitution the SC can nullify any law which is prejudicial to the fundamental rights.

Commersant has reported that Evraz Group signed an agreement with the Mitsui Co to form an independent enterprise to develop the Denisovskoe coal deposit in Yakutia. This is the first time that a Japanese company has acquired coal assets in Russia, after several unsuccessful attempted by various Japanese companies.

Japanese sources said that the deal was worth $70 million, which is an acceptable price for Japanese entry to the Russian coal market and a gain for Evraz, which paid $11.9 million for the deposit in March of this year. About $240 million in investment will be necessary to construct shafts and infrastructure at the deposit, which is now completely undeveloped. The coal produced there will mainly be exported to Japan.

The Denisovskoe deposit holds 70 million to 85 million tonnes of known reserves of K brand coking coal. Under the agreement, Mitsui will receive 30% of Evraz's Neryungiugol Co, which holds the license to this deposit. Production is expected to begin in the second half of 2006 and come into full force in 2008 at 2.4 million tons per year.

It is reported that UK based Morgan Crucible Co said that it has received an approach that may lead to a takeover bid. The company without identifying the possible bidder said that the approach is preliminary and may or may not lead to a cash offer and that a further announcement will be made in due course.

Morgans stock jumped up by 21% valuing the company at $1.58 billion.

Morgan Crucible Co based at Windsor in southern UK is a supplier of ceramics used to make steel.

Midland controlled Zaporizhstal has produced 2.57 million tonnes of crude steel during January to July 2006 up 2.3% YOY, 2.06 million tonnes of pig iron down by 0.4% YOY and 2.13 million tonnes of finished steel up by 4.7% YOY. It produced 3.21 million tonnes of sinter during this period down by 1.1% YOY.

Zaporizhstal produced 311,000 tonnes of finished roll, 380,000 tonnes of crude steel, 306,000 tonnes of pig iron and 476,000 tonnes of sinter in July 2006.

Zaporizhstal has produced 3.6 million tonnes of finished steel in 2005.

South African manganese miner Samancor Manganese, having a 50% stake in Advalloy, has bought the remaining 50% shareholding of Mitsui & Co in Advalloy. Competition authorities in South Africa and abroad have approved the transaction.

Mr Bernard Katompa VP and CFO of Samancor Manganese said Samancor Manganese is looking forward to a continued relationship with Mitsui in its capacity as distributor of Advalloys products in Japan.

Advalloy is located at Meyerton in South Africa and produces refined manganese alloy, mainly for exports. Mitsui and Samancor had a 10 year relationship as shareholders in Advalloy.

Belarusian Metallurgical Plant has increased crude steel out put to 1.28 million tonnes during January to July 2006 up by 9.3% YOY over January to July 2005. The value of the output during this period increased by 9.2% YOY to 1.33 trillion Belarusian rubles.

BMZs rolled steel production grew up by 1.5% to 1.046 million tonnes, steel cord by 5.9% to 50,400 tonnes, bead wire by 15.6% to 14,000 tonnes and steel wire by 36.9% to 52,900 tonnes. Exports, which increased by 12.9% YOY to $549.9 million accounted for around 85% of the BMZs total sales.

Government owned BMZ is situated at Zhlobin in the Gomel region and is Belarus biggest steel mill.

Aztec Resources Ltd believes there could be other companies planning counter bids to top an offer by Mount Gibson Iron Ltd. Mr Ian Burston chairman of Aztec told reporters at the annual Diggers and Dealers mining forum that consolidation amongst the junior developers was inevitable and he had been expecting a bid for the company since day one.

Mount Gibson launched a takeover bid for Aztec in late July and Aztec directors are still considering the offer. Another iron ore developer, Gindalbie Metals Ltd, which was originally involved in a plan for a 3 way consolidation with Aztec and Mount Gibson but later withdrew, has recently picked up less then 5% of Aztec's issued share capital giving a sure sign Gindalbie was still interested in Aztec.

Mr Burston said We are not against or violently opposed to an offer, one could have almost expected it from day one had we got to this stage. If great pots of money were pushed across the table I wouldn't have to advise the shareholders, they'd all be gone."

Aztec is developing the $125 million Koolan Island iron ore project off the coast of the Kimberley region of Western Australia, with the first shipment expected to leave the island early next year. The company is in advanced discussions with three potential buyers and expects to sign off on at least two off take contracts soon for the anticipated four million tonnes of annual production.

Sumitomo Metal Industries has undertaken a project to expand its plate capacity from current 1.9 million tonnes a year to 2 million tonnes at Kashima works. The projects include a new reheating furnace and renewal of end cutting shearing machine for around 7 billion yen. The facility is likely to star in October-December 2007.

Sumitomo Metal Industries is attempting to expand the high valued products under the mid term plan by focusing on energy and other high valued applications. The improved facility will help it meet higher demand for high valued products used in shipbuilding and energy industry.

Ukrainian branch of Interfax has reported that some banks have offered to lend $300 million to Industrial Union of Donbas to modernize one of its steel mills in Ukraine.

Pryvat and Smart Groups jointly controlled Ukrainian Yuzhniy OMEP has increased sinter production to 2.68 million tonnes during January to June 2006 up by 20.6% YOY and concentrate to 5.05 million tonnes up by 9% YOY.

PGZK sold all of its sinter to domestic steel makers. PGZK supplied 1.53 million tonnes of sinter to Petrovskiy Steelworks, 0.83 million tonnes to Makeevskiy Steelworks and 0.27 million tonnes to Donetsk Steelworks. PGZK also supplied 2.1 million tonnes of concentrate to Dneprovskiy Steelworks.

Harris Steel Group Inc has reported that it earned C$23.2 million ($21 million) during April to June quarter up by 32% over C$17.6 million in the same quarter last year. Revenue rose by 51.8% to C$382.9 million from C$252.1 million.

Harris said that profits & volumes during the quarter were driven by strong re bar sales and strong performance by its steel trading and distribution segment.

Russian Asha Steel Works has increased its output during January to July 2006 by 6.5% YOY to 4.015 billion rubles. AMZ produced 366,428 tonnes of crude steel up by 2.4% YOY, 274,514 tonnes of rolled steel up by 9.4% YOY, 38.497 tonnes of amorphous strip up by 39.7% YOY and 918,633 magnetic circuits up by 10.6% YOY.

AMZ produced 49,946 tonnes of crude steel, 39,708 tonnes of roll, 7.484 tonnes of amorphous steel and 189,533 magnetic circuits in July 2006.

Chelyabinsk region based AMZ is a producer of roll, amorphous and electrical sheet steels.

Claymont Steel Holdings Inc, which manufactures custom discrete steel plates, on Monday, filed with US regulators to raise up to $115 million in an initial public offering of common stock.

Delaware based Claymont said in a registration statement with the Securities and Exchange Commission that Jefferies & Co. would underwrite the offering.