Some of the stock analysts believe that Steel Authority of India Limited, on the back of an impressive capacity expansion plan and robust earnings growth expectations, is poised to outpace other metal companies on the stock exchange including blue chip TATA Steel and Hindustan Zinc Limited.

Australian investment banking major Macquarie Bank in its latest equity research report has noted that Indian steel companies are among the most attractively valued scripts with SAIL enjoying the best of the pack status. The investment bank said its Macquarie alpha model, which combines a range of valuation, analyst sentiments and price movement factors, continues to be overweight on the basic industries and in particular on the steel stocks.

The bank said SAIL is ranked 5th among the 145 Indian stocks under its coverage and is the top steel stock in the country. Macquarie research said SAIL leads the league of all key steel stocks covered in its model with an alpha value of 11.9% as against 6% for Tata Steel and 7.6% for Jindal Steel and Power. HZL has been given an alpha value of 7%.

The analysts anticipate robust earnings growth momentum for SAIL going forward on the back of sustained strength in steel prices, robust volume growth and significant cost savings. SAIL plans to nearly double its capacity to 22.5 million tonnes over the next five years and has pegged an investment of Rs 35,000 crore to this effect. SAIL is sitting on 40 years of iron ore requirement, while it is also actively looking for coking coal mines abroad.

However, any potential slump in steel prices and the risk of losing Chiria iron ore deposits are likely to offset any potential surge in sail's share price, Macquarie Research said.

IANS has citing an official of Essar Steel reported that 86 tribal families of insurgency hit district Dantewada of Chhattisgarh have agreed to pert with their 600 hectares land to Essar Steel for its upcoming 3.2 million tonne steel plant. Mr HS Sethi resident director of Essar Steel, told IANS 86 protesting families have held a meeting last week and agreed to hand over 600 hectares of land to Essar Steel. We will pay them Rs.150,000 per acre plus compensation for trees on the surrendered land.

Mr Sethi added that The ground construction for the plant will begin within 3 to 4 months and it will take another three years to make the first phase operational. The total commissioning including second and final phase will be completed within five years.

Essar Steel had signed a MOU with the government of Chhattisgarh in June 2005 to bring in Rs.70 billion investment to set up a steel plant in two phases. Essar had sought 600 hectares land in 2 tribal villages Dhuli and Bhansi, but the 86 families belonging to these villages protested against the company early this year and had refused to accept the rehabilitation package offered by the company.

The hilly and forested terrain of Dantewada is basically known as a leftist extremist stronghold where over 250 people have been killed since January, mostly in landmine attacks but also is highly rich in iron ore reserves. Essar has sought mining lease for iron deposits of Dantewadas Bailadila deposits Nos. 3, 6, 8 and 9 for 50 years.

CNBC-TV18 has reported that POSCO India is now confident of starting the 1st phase of its 12 million tonne steel plant in Orissa by April 2007.

Mr SS Cho MD of POSCO India said The government has received about 2500 objections to handing over of land to Posco. We are going through those objections. He is also hopeful of getting an iron ore mining license by September.

Napals Kathmandu Post has reported that a group of Nepali and Indian private power producers have planned to construct at least 2 cross border 220KV transmission lines to start hydropower trade between the two countries.

Mr Sandeep Shah president of Independent Power Producers' Association of Nepal during the concluding session of Nepal-India Power summit last week said "We may reach in a decision within next two or three months on the issue of transmission line."

Nepal is facing difficulties to import 50MW to 100MW of electricity from India to cover the shortfall of power during the winter season and export spillover power in the rainy season due to lack of cross border transmission line.

Many Chinese steel mills are turning to India to secure their iron ore needs because of soaring freight rates for imports from Brazil, which has resulted in making Indian spot cargos much more attractive.

It is reported that freight rates for dry bulk cargoes from Brazil to China climbed close to $40 a tonne from around $20 in June 2006 and Chinese steel mills are delaying in nominating vessels to load iron ore from Brazil.

However large iron ore stocks at Chinese ports, estimated at more than 40 million tonnes, have given Chinese mills time to wait and watch the freight market.

The Tuticorin Port Trust plans to establish a shipbuilding yard on its premises on an investment of Rs. 1,400 crore to build 6 Panamax vessels per year. Korea Maritime Consultants Company Limited has completed a feasibility study in this regard and submitted its report to TPT. The construction of the yard would be completed in 4 years after getting clearances.

The shipyard would be established on 49.68 hectares area with a building dock of 390 meters in length, 65 meters in breadth and 10 meters in height and 5 berths with a total length of 1,200 meters. The other facilities include a pipe fabrication and assembly unit, pre erection yard, galvanizing unit, hull fabrication section and provision to stack steel, pipes and hull blocks.

Mr SA Bharadwaj director technical of Nuclear Power Corporation of India Ltd during a customer meet at Mishra Dhatu Nigam Ltd said that India would require large quantities of hi tech special metals and alloys to achieve ambitious goals for a quantum jump in power generation.

Mr M Narayana Rao CMD of Midhani said that his organization was ready to offer single point solutions for making, shaping and treating special metals and alloys to meet and end product requirements of customers.

Multi Commodity Exchange of India has announced plans to launch trading in more than 20 commodities by the end of 2006-07 fiscal.

Mr Jigesh Shah MD & CEO of MCX while addressing a press conference at Indian Institute of Management said "We are doing research on various commodities for the futures trading. The exchange is expected to launch futures trade in twenty more commodities in the current fiscal.

He indicated that the futures trade would be launched for steel coils, copper, nickel, energy, carbon & sulphur credits, coffee, plantation crops & other agriculture commodities and weather derivatives.

Currently, trading at the MCX is carried on more than 70 commodities.

Chinese steel major Shougang Group has revealed its increased interest in Indias steel and mining sector by announcing opening of an office at Gurgaon in India. The office will also provide engineering consultancy services to the construction companies in the country.

Mr Zhang Longjin president of Shougangs subsidiary Shougang International Trade and Engineering Corporation, which have been doing business since early 90s with Indian companies, said "India's infrastructure woes are similar to the situation China faced 25 years ago. So we expect lots of activity in the infrastructure sector in India. China's infrastructure has reached a stagnant level, so, we expect India to give lots of business opportunities".

It is reported that one of the worlds biggest investment firms Lehman Brothers will part finance KSK Energy Ventures and Gujarat Mineral Development Corporations JV for setting up a 4,500 crore 1,000MW power projects in Chhatisgarh and a Rs 1,000 crore 250MW power plant in Jharkhand. Lehman Brothers has given $75m to KSK Electricity Finance, which will act as the investment arm of KSK group.

Mr S Kishore promoter of KSK Energy told ET While GMDC has been given the option to pick up to 26% equity stake in the two entities that will be formed to set up these power projects, the rest will be taken up by KSK and its partners. KSK has also got investments from various other institutional investors like PFC, IDBI, IDFC and SIDBI amongst others

GMDC was recently allotted two coal blocks in Chhatisgarh and Jharkhand by the ministry of coal. The Morga-II block in Korba district of Chhatisgarh has 350m tonnes of mineable reserves and it can fuel a 1,000MW power plant. The other one in Jainnagar at Hazaribaug district in Jharkhand has 100m tonnes of mineable reserves which can support a 250MW power plant.

Rastriya Ispat Nigam Limiteds Vizag Steel Plant has commissioned the fly ash collection system of boiler 1 of its captive thermal power plant constructed at an investment of 3 crores on Tuesday.

Dry fly ash is a glassy material and has better cementing properties than wet ash and can be used in the manufacture of building materials such as Pozzolana cement and Fal-G bricks etc.

Godawari Power & Ispat Ltd has informed that the repairing work of the Company's 500 tonnes per day sponge iron kiln has been completed and the production of sponge iron has since been restarted as well as in the power plant of the Company. The production of sponge iron and generation of power is expected to become normal within a weeks time.

GPIL has earlier on August 17th had informed of break down in their sponge iron plant.

The latest issue of Australian Mineral Statistics released by Dr Brian Fisher ED of ABARE reveals that export earnings from Australia's minerals and energy sector increased by 32% to a record A$90.5 billion in 2005-06.

Dr Fisher said that This stronger performance mainly reflected higher export prices for about 85% of the minerals and energy commodities exported, along with increased export volumes for just over half of the commodities. Commodities that recorded the largest increases in export earnings in 2005-06 were coking coal up by 59% to A$17.076 billion, iron ore and pellets up by 54% to A$12.511 billion and copper, up by 79% to A$5.226 billion.

Russian pipe major TMK and Hydril Company LP of US have formed a 50:50 JV called TMK-Hydril CJSC to acquire, build and use equipment, technologies and infrastructure on the basis of the production site of Pipe Production Unit No 1 of the Volzhsky Pipe Plant, a subsidiary of TMK. The agreement between TMK and Hydril also stipulates the possibility of installing additional capacity. Production is scheduled to begin in 2007.

The JV will engage in the cutting of Hydrils premium threaded connections on casing pipes used in oil and gas drilling and production. Casing pipe will be provided by TMK mills. TMK-Hydril CJSC will produce the entire line of premium connections offered by Hydril. The planned production capacity of the joint venture will be up to 38,000 metric tons of OCTG pipes with threaded connections per year.

It will meet the requirements of Russian and the CIS companies for premium OCTG products. Premium threaded connections for OCTG pipes differ from American Petroleum Institute standard threading in their high level of gas tightness and reliability. Premium connections are used in drilling environments where extreme pressure, temperature, corrosion and mechanical stresses are encountered, as well as in environmentally sensitive drilling. These harsh drilling conditions are typical for deep-formation, deepwater and horizontal or extended reach wells.

Gindalbie Metals Ltd and its JV partner, Anshan Iron and Steel Group announced that they have agreed on a joint proposal to locate the 4 million tonne per annum iron ore pellet plant for the Karara Iron Ore Project adjacent to a major new steel mill to be constructed by AnSteel in Northeastern China. The reasons cited include 50% capital cost saving, proximity to an existing power station, water supply and utilities, and access to competitively priced power and labor.

AnSteel has earmarked a site for the new pellet plant, which would be owned on a 50:50 basis by the JV partners, in the port city of Yingkou in north eastern China, 1 kilometer from a major new 5 million tonne per annum steel mill due for completion in 2008. The Karara JV pellet plant will meet a substantial proportion of AnSteels new steel mill input requirements.

AnSteel had announced on August 15th that it received approval from the National Development and Reform Commission to construct a new 5 million tonne per annum steel mill at a site in BaYuQuan Port in Yingkou. The integrated project will have a combined capacity of 4.93 million tonnes of iron, 5 million tonnes of steel and 4.88 million tonnes of steel products. Major equipment to be installed in the new facility includes two blast furnaces and auxiliary facilities, one steel mill and ancillary facilities, one 5,500mm heavy plate rolling line, one 1,580mm hot rolling line and one 1,450mm cold rolling line.

The Karara Project is a major new iron ore development project, with targeted production of 10 million tonne per annum of iron products including hematite, magnetite concentrate and pellets. Karara Stage 2 Project Infrastructure involves the mining of up to 20 million tonnes of raw magnetite ore followed by concentration on site at Karara to produce 8 million tonne per annum of 68.8% magnetite concentrate. This material will be slurried via a 225 kilometers pipeline to the Port of Geraldton, from where it will be shipped to the new Pellet Plant at Yingkou in China.

Mr George Jones chairman of Gindalbie said This important agreement further strengthens the strong bilateral relationship between Gindalbie and AnSteel which will underpin the development of a major integrated iron ore project in the Mid West region of Western Australia. The Karara Project continues to benefit from our strong relationship with Ansteel, as demonstrated by the 50% savings in the pellet plant capital costs expected to be achieved by locating the pellet plant in China.

Mr Vladimir Georgievich GD & part owner of Russian coal firm Yuzhkuzbassugol died in MD-600 helicopter crash 16 kilometers from Novokuznetsk in the Kemerovo region in Western Siberia. The pilot and a second passenger were also killed in the accident.

Yuzhkuzbassugol, located in the Kuzbass Region, is Russias leading producer of coking coal. It is 50% owned by Evraz Group SA and 50% by Region coal, the management of Yuzhkuzbassugol. Yuzhkuzbassugol comprises of 24 enterprises, including 9 coal mines, 2 enriching plants and several servicing entities.

In 2004 it produced approximately 14 million tonnes of coking coal and approximately 4 million tonnes of steam coal. The Companys share of total Russian coal production in 2004 was 6.4%. Yukus market share of Russian coking coal and steam coal production represented 18.8% and 2.0% respectively in 2004. The Company supplies its coking coal to most of the leading steel and coke plants in Russia, CIS and Europe.

Brazilian steelmaker Gerdau SA announced that its Spanish unit Sidenor SA, which is 40% controlled by Gerdau, signed a preliminary agreement with CIE Automotive to acquire its steelmaking unit GSB Acero at Guipuzcoa in Spain for an undisclosed amount. It plans to complete the purchase in the fourth quarter.

Acero has an annual capacity of 200,000 metric tons of specialty steels for use in making products such as automobile transmissions, suspension systems, axles, ball bearings and other auto parts.

This is seen as a part of the company's strategy to expand operations beyond the Americas under which Gerdau is looking to acquire steelmakers in Europe and Asia to run them more profitably, allowing a larger Gerdau to compete in a rapidly consolidating steel industry.

Shanghai Securities News has reported that China Iron and Steel Association is likely to grant iron ore licenses to enterprises recording annual iron ore import of no less than 700,000 tonnes in 2005, possibly cutting 27 firms off the 118 long list. The importers are also required to have minimum registered capital of RMB 20 million yuan and are required to possess port yards necessary for iron ore storage or have investment involvement in overseas mining projects.

70 Chinese steelmakers with iron ore import licenses attended a CISA convened iron ore import working conference to deliberate on a few important issues concerning iron ore imports, including likely formulation of the threshold requirements for steelmakers applying for iron ore import licenses. As per reports this criteria of 700,000 tonnes business emerged after long arguments.

Among the current 118 member licensed importers, 27 did not cross annual iron ore import of 700,000 tonnes in 2005.

Gerdau Ameristeel Corporation has announced that it plans to close the melt shop operations at its Perth Amboy in New Jersey wire rod mill early in the fourth quarter of 2006. The Company plans to continue operating the Perth Amboy rolling mill at its current production level of approximately 500,000 tons of finished wire rod annually by sourcing billets from melt shops of its other units including Gerdau SA in Brazil and other third party billet suppliers.

Mr Mario Longhi president and CEO of Gerdau Ameristeel said "This is a very difficult decision to make as it impacts dedicated, hard working employees. Gerdau Ameristeel will provide outplacement support and make every effort to help the displaced employees through this time of transition. However, the Company believes that closure of the relatively non competitive Perth Amboy melt shop is consistent with global industry trends towards consolidation and rationalization. Despite focused efforts over the last several years we have been unable to bring the Perth Amboy melt shop up to performance and cost standards dictated by the competitive nature of our business. The more efficient semi finished billet supply from the Company's other steel making facilities, and the flexibility to produce higher quality finished wire rod, is expected to improve the Company's future cash flows and returns."

Gerdau Ameristeel is the second largest minimill steel producer in North America with annual manufacturing capacity of over 9 million tons of mill finished steel products through its vertically integrated network of 17 minimills including one 50% owned minimill, 17 scrap recycling facilities and 46 downstream operations.

Mexicans ministry of economy has announced that they have officially launched anti dumping investigations against seamless pipes imported from China.

Tubos de Acero de Mexico SA reported the case to the Mexican government in June and now they have accepted the case and will investigate imports from January 1st to June 30th 2005.

Mexican seamless tube makers are saying that there has been a sharp increase in imports of Chinese seamless tubes recent times and that it is harming their industry.

China's Minmetals announced today one of its shareholding subsidiaries has signed a magnetite iron ore procurement pact with South Africa's Palabora Mining Co. Ltd.

The 1.5 billion yuan ($ 189.45 million) pact will secure stable iron ore import for 3 years from South Africa for Minmetals.

South Africa's PMC is a listed company in Johannesburg, which deals with magnetite as one of its three core businesses. Rio Tinto owns 46% of Palabora and Anglo American hold 17% of PMC.

An analysis coordinated by the Romanian ministry of European integration and the ministry of economy and trade has warned that some of the Romanian steel companies, which received state aid while restructuring, need to speed up their investments by 2008 end especially in environmental areas to avoid return of state aid given to them until January 1st 2005.

Romania's meeting of the commitments relating to the restructuring of steel processing is being monitored by the European Commission, which issues biannual reports, while independent experts are making periodical assessments in the name of the Romanian state. The monitoring report of the restructuring of this field is due to be referred to the European Commission on September15th 2006.

The steel under restructuring are Mittal Steel Galati, Mittal Steel Hunedoara, Mechel Targoviste, Mechel Campia Turzii, TMKs CS Resita and Tennaris Donasid Calarasi.

The supply scope comprises the mechanical equipment, including the carry over table, hydraulic side guard, pinch roll unit, pinch-roll polishing unit and coil transfer car No 2 as well as a tilter functioning as a transfer to the coil conveyor system and that the electrical and automation systems.

French Vallourec SA announced that its first half profit tripled after it bought the rest of V&M Tubes and raised prices. Its net income jumped to Euro 452.6 million from Euro 144 million euros in H1 of 2005. Its sales rose by 37% to Euro 2.72 billion.

Vallourec bought Salzgitter stake in its V&M Tubes unit in July last year increasing its holding to 100% from 55%.

Vallourec is world's 2nd largest maker of tubes used in drilling for oil and gas after Luxembourg based Tenaris SA and is followed by Japanese Sumitomo Metal Industries Ltd.

Mysteel has reported that according to statistics published by Customs General Administration People's Republish of China, China's iron ore imports during the first eight months amounted up to some 219.07 million Yuan up by 24.5% YoY

China imported 32.81 million tons of iron ore during August 2006.

Reuters has reported that the contract talks between Inco Ltd and the union representing workers at its Voisey's Bay nickel mine in Labrador on Canada's East Coast are set to resume early next week. Mr Ken Dawson representative of United Steelworkers said "We're going back to the table early next week."

Province's labor ministry urged the two sides to return to the bargaining table in an effort to end the strike on Monday.

The mine stopped producing on July 28th when workers went on strike after the two sides failed to negotiate their first labor agreement.

Russian Vedomosti, citing Metalloinvest GD Mr Maxim Gubiyev, has reported that Mr Alisher Usmanov may sell shares in his Metalloinvest holding company to the public next year or the year after.

Mr Usmanov controls Mikhailovsky GOK and Lebedinsky GOK, country's 2nd & 3rd biggest iron ore mines, as well as Nosta Steel and Oskolsky Special Steel.

Tenaris has signed a LoI to sell a 75% stake in Italian energy supplier Dalmine Energie to E ON AGs subsidiary E ON Sales and Trading GmbH for approximately Euro 39 million subject to adjustments," Tenaris said in a news release.

Dalmine Energy began operating in 2002, initially supplying power to Tenaris's Dalmine seamless pipe plant and other clients in northern Italy. It has since become a leading electricity supplier for Italian industrial and commercial users.

Reuters has reported that BHP Billiton will increase investments by in Africa this year to find new mines and look at new countries. Africa is gaining more attention from BHP Billiton, the world's largest diversified mining company, as the firm seeks to expand its presence on the continent.

Mr Cesare Morelli BHPBs exploration manager for Africa told Reuters during an interview on the sidelines of a mining conference that Africa's budget will account for over 50% of total mineral exploration spending during the current fiscal year to end June up from just under 30% last year. Mr Morelli said that "Africa is becoming an important target for BHP Billiton." But he declined to give exploration spending figures saying the data was not released due to competitive reasons.

He said that BHPB is exploring for metals in 14 African countries, with the bulk of spending this year focused on seeking diamonds and copper in the Democratic Republic of Congo, diamonds in Angola and bauxite and iron ore in Guinea. Other African countries are Sierra Leone, Gabon, Liberia, Mauritania, Burundi, Tanzania, Mozambique, Madagascar, Zambia, Botswana and South Africa. Mr Morelli said that BHP Billiton was considering entering new countries, such as Ethiopia for potash, Sudan for iron ore and the Central African Republic for nickel.

As it becomes more difficult to find big deposits elsewhere, mining firms are zeroing in on Africa, which holds around half of the world's remaining mineral resources. Many parts of the continent missed out on previous waves of exploration due to conflict and instability.

1 person has been killed and at least 38 others are trapped after two coalmine accidents on in China.

The first accident occurred in Tonghua city in northeastern Jilin province at 5AM local time. 15 miners were trapped after the Xiren coalmine flooded. Rescuers have been pumping out water.

The second accident was at noon at the privately owned Danangou mine in Datong city in northern Shanxi province. 34 miners were trapped originally and that rescuers extracted 11, one of whom died in hospital. The balance is still reported to be trapped.

Floods, explosions and collapses make China's mines the worlds most deadly with official figures showing around 6000 workers dying in the industry last year.

Mr Davinder Chugh has been appointed in Arcelor Mittal last month with responsibility for Shared Services

Mr Davinder Chugh, previously CEO of Mittal Steel South Africa, has had over 25 years experience in the steel industry, in particular materials purchasing, logistics, warehousing and shipping.

Mr. Chugh also held the position of Commercial Director since May 2002. Before joining Mittal Steel South Africa he was vice president of purchasing at Mittal Steel Europe. Davinder Chugh has been with the company since 1995 and successfully integrated the materials management functions at newly acquired plants in Hamburg, Duisburg, France, Romania and Algeria.

Prior to this, he held several senior positions at the Steel Authority India Limited in New Delhi, India.

He holds degrees in science and law and has a master's degree in business administration.

Macarthur Coal has posted $A149.5 million as net profit for the year ended on June year up by 130% YoY. Macarthur's sales increased from $370 million in previous year to $534 million due to rise in coal prices achieved by all producers from April 2005.The group also managed to contain costs rises to a lower rate.

Mr Ken Talbot said that Macarthur remained well placed to expand significantly due to extra export port capacity now under construction comes on stream, the group wiped out debt and ended the June year with $168 million cash in hand.

The group also expects sales of about 4.5 million tonnes in the current year, after 4.9 million tonnes last time, due to port restraints. Lower prices, locked in from April 1 2006 will eat into the current year's revenue while cost pressures will continue and analysts are expecting the group to make less than $70 million this time around.

The Brazilian Stock Exchange announced that the auction to sell a 720 kilometer railroad concession, scheduled for Wednesday, is postponed until October 4th without giving reasons. It is the third time the auction has been delayed.

The state wants to sell a concession to develop a 720 kilometer tract in northern Brazil between Acailandia in Maranhao state and Palmas in neighboring Tocantins state. The minimum bid for the concession has been set at 1.478 billion Brazilian reals ($680 million). The stretch of railroad is part of the ambitious North-South railroad project to connect the states of Maranhao, Tocantins and Goias to other, more developed rail lines in the north and south of the country. The project will cover a total of 1,550 kilometers.

So far, three companies are pre qualified for the auction, including Alvorada Servicos de Engenharia, ARG LTDA and Companhia Vale do Rio Doce.

CVRD is Brazil's largest logistics operator and runs the Estrada de Ferro railroad, which links the company's Carajas iron ore mine complex to the port city of Sao Luis in Maranhao state.

Cape Lambert Iron Ore Limited announced that phase one of the drilling program has confirmed the current resource at the 100% owned Cape Lambert Iron Ore Project in the Pilbara region of Western Australia appears open at depth.

It said that, to date 20 holes have been completed for a total of 5,200 meters drilled and over 600 magnetite rich composite samples have been submitted for metallurgical testing with first results expected towards the end of September.