Mr Ram Vilas Paswan union minister of steel assured Indian steel makers that Indian government would take a balanced view on the issue of export of iron ore and informed that he has sought intervention of Dr Manmohan Singh for limiting export of high grade iron ore and has urged that the long term agreements for exporting ore are not

Mr Paswan while delivering a speech at ACCOSHAMs conference India Steel Summit said "I have apprised the Ministry of Mines and the Ministry of Commerce of my views on the issue. Nevertheless, I assure this august gathering that the government will take a balanced decision, keeping in view the national interest.

Mr Paswan added that "We have written a letter to the Prime Minister apprising him of the issue of exports of iron ore. We have also written letters to the finance, mines and commerce ministries on the issue explaining our position to them. Mr Paswan also said that "I do not favor extension of LTAs with foreign nations because we would need more iron ore in the future.

India produces 155 million tonnes of iron ore annually, of which 89 million tonnes is exported, including about 75 million tonnes to China. There are serious differences between the ore exporters and steel producers over exports, with even chief ministers and political leaders joining the debate. While exporters demand unfettered sale, the steel producers are lobbying with the government to eventually ban exports.

ET has reported that, Indian Aditya Birla Groups unlisted company Essel Mining & Industries is close to acquiring a mining company in Indonesia capacity to mine about 5 to 10 million tonnes of coal a year, with the reserves estimated at over 400 million tonnes for $180 million. The acquisition will be one of the biggest for the Indian mining sector where exploration in coal is done by state owned companies only.

As per reports, Essel mining will use the thermal coal for groups power plants in India, sell to other buyers in India and also export to countries like South Korea, Japan and Taiwan.

Essel Mining is one of the largest iron ore mining companies in the non captive private sector with reserves of almost 200 million tonnes at Barbil and had produced 7 million tonnes of iron ore. It is also Indias largest producer of noble ferro alloys like molybdenum, vanadium and titanium.

Pakistans economic coordination committee of the cabinet, headed by Mr Shaukat Aziz PM has allowed the import of 302 new items from India.

As per reports various categories of machinery & equipment, steel, iron ore and different types of chemicals are now on the list of 302 new items Pakistan can import from India. The details are awaited.

Mr Ashfaque Hasan Khan economic adviser to Pakistans finance ministry told The Nation that the government had earlier allowed import of 773 tariff lines items from India.

It is reported that Justice NK Mody of Indore Bench of High Court, in response to a petition filed by the MP State Industrial Development Corporation, has directed the Steel Tubes of India to maintain status quo on its properties at Dewas and barred STI from selling off its land to Caparo group which took over Dewas Steel Tubes plant spread over 9.05 hectare last month.

After obtaining the status quo order, the MPSIDC filed an objection before the Sub Registrar, Stamps and Duty at Dewas this afternoon preventing transfer of the registry of STI property. In the objection, the MPSIDC stressed that it had attached the STI property in 2002 and therefore it could not be transferred to anyone.

MPSIDC had filed the petition after MPs Board of Revenue quashed the issuance of Revenue Recovery Certificate in July this year. The MPSIDC had claimed to recover Rs 35 crore from the STI against which it had filed a revision before the Board of Revenue.

STI was founded in 1966 by Dr Baheti and initially manufactured steel tubes for bicycle, automobile, transformer, general engineering industry. In 1986, the company commissioned a cold rolling mill at Dewas. Later it became sick and owed large amount to various companies. The STICaparo group deal, which was mediated by the IDBI Bank, was inked on August 19. The Group had cleared all the accumulated losses of the company and promised no retrenchment.

One of the biggest annual gatherings of iron & steel industry professionals in India 2 days long 6th Asian Steel Conference has begun today at The Leela Hotel in Mumbai.

The conference is focused on short term & long term perspective of raw materials, emerging products and emerging markets for global trade, technology as a driver for cost competitiveness, present regional industry profiles& future prospects and facilitators & inhibitors for logistics in steel industry.

The conference is organized by Steelworld and SANKET Trade Fairs.

Indian governments Board of Approvals has cleared setting up of 18 new special economic zones to take the total tally to 181, with a directive that SEZs have to come up on waste land, barren land or single crop land to avoid controversy in acquisition of land. Besides, 6 more SEZs, which have already got government approvals, were notified today taking the total number of zones that have been notified to 32.

Among the approvals, POSCOs proposal to set up a mega SEZ at Jagatsinghpur district in Orissa with an investment of Rs 53,000 crore was also cleared. By developing the 3,960 acre) site as a SEZ POSCO will be eligible for tax breaks on its export earnings from the project. Also, the government will not levy duties on import of capital goods and raw materials meant for the plant.

The biggest SEZ that was notified today belonged to Essar Group at Hazira in Gujarat. The SEZ would be dedicated to engineering products and would be spread over an area of 247.5 hectares.

This was the fifth meeting of the BoA since the SEZ Act came into force in February this year. The Board will hold three more meetings over the next ten days to clear pending applications for setting up SEZs.

The special economic zone concept is modeled on China's hugely successful free trade zones. India hopes the projects will boost the country's exports and attract foreign investment. Mr Kamal Nath union commerce minister expects such projects to draw 1 trillion rupees (US$22 billion) in foreign investment by the end of 2007.

Bharat Heavy Electricals Ltd is reported to be evaluating the option of picking up minority equity stake in upcoming power projects and will decide soon to bid jointly with NTPC Ltd for the proposed 4,000 MW Sasan ultra mega power project, .

Mr Ashok K Puri CMD of BEL told Business Line "We are looking at the option of coming in as a minority partner to kick start power projects, especially those involving new technology. The Sasan project would be using new supercritical technology. We will be jointly bidding with NTPC for the project with the option of picking up equity. The NTPC-BHEL tie up would mean combining the best of both the organizations in terms of our respective areas of core competence.

Mr Puri said the company would, however, not come in as a lead partner in a power project and would restrict its equity participation to minority stake only and that a final decision on BHEL's equity participation in the Sasan project would be taken in the due course.

Mahindra & Mahindra announced that it had decided to acquire a 67.9% stake in German forging company Jeco Holding at an enterprise value of Euros 140 million through its subsidiary.

Jeco Holding primarily focuses on the truck, bus and trailer market. While Scholz AG holds a 90% stake in the company, the remaining 10% is with the management. Its major products include gear boxes, engine and axle pans, hubs, gears and piston heads and its customers include DaimlerChrysler, ZE Group, MAN Nutzfahrzeuge, Volvo, Linde, Renault, Agco, Kessler and Kolbenschmidt.

Mr Anand Mahindra vice chairman & MD said With this acquisition, the Mahindra group has taken a decisive and important step towards creating a global class and global scale business in auto components. This creates a platform that enables us to pursue our vision of building the auto components business as one of the core businesses of the Mahindra group.

Mr Sajjan Jindal VC and MD of JSW Steel told reporters that JSW Steel Ltd plans to set up three 10 million tonne steel plants in eastern India by 2020. The plants would be situated in the states of West Bengal, Orissa and Jharkhand and would involve an investment of $18 billion.

GMR Infrastructure Ltd has announced that GMR Energy Ltd, in pursuance to MoU of June 9th, has signed the power purchase agreement with GRIDCO of Orissa government for setting up of a 1000MW coal based thermal power plant at Dhenkanal District in Orissa dt September 28, 2006. The plant is scheduled to be commissioned by end of 2010 and second phase by middle of 2011.

As per release, the power plant will be built using the latest state of the art technology and that the company has already identified the land and is in an advanced stage of development of the project. The company intends to wheel 75% of the sellable power to the power deficit states in the Southern India. The remaining 25% at 80% plant load fact shall be supplied to GRIDCO for the period of 25 years.

National Thermal Power Corporation Ltd has informed that a 210MW unit of Feroze Gandhi Unchahar Thermal Power Project - Stage III of the NTPC has been successfully test synchronized on September 28, 2006.

With the commissioning of this unit, the installed capacity of Feroze Gandhi Unchahar Thermal Power Project has become 1050 MW and the total installed capacity of the company including those owned through joint venture companies has become 26,404 MW.

Companhia Vale do Rio Doce announced that it has signed a partnership to build a new palletizing plant in China. This would be CVRDs first investment in iron ore business in China.

CVRD, through its subsidiary Mineraes Brasileiras Reunidas S.A., will have a 25% stake in the JV Zhuhai YPM, owner of a new palletizing plant in Zhuhai, Guandong, China, with nominal capacity of 1.2 million tons per year and expected start up is in 2008. The other partners in this joint venture are Zhuhai Yueyufeng Iron and Steel Co Ltd with 40% and Pioneer Iron & Steel Group Co. Ltd with 35%.

CVRD's investment in this project will be 4 million US dollars and the Company will supply at least 70% of the iron ore used to feed the palletizing plant, through a 30 year contract.

CVRD also is involved in a coke joint venture operation in China called Shandong Yankuang International Coking. The company is a joint venture between CVRD and China's Yankuang Group and Itochu Corporation. The coke plant which was completed in July, produces 2 million tons of coke and 200,000 metric tons of methanol per year

Worlds 5th largest steel maker POSCO is looking to double its crude steel output capacity via overseas expansion as the domestic steel market reaches its growth limit as it plans to expand its crude steel output capacity abroad to 30 million tonnes in the next 30 years. Mr Lee Ku-taek CEO was quoted as saying by a spokesperson that This long term expansion plan would double the company's production capacity to 60 million tonnes.

Mr Lee said "The steel industry has reached its limit for growth in the domestic market. POSCO has to turn its eyes to growing countries such as China, India, South East Asia, Mexico, Brazil and Eastern Europe. POSCO's ultimate aiming is globalization. As it is difficult to expect considerable growth in the domestic market which is saturated our biggest target is to globalize. We need to establish a 30 million tonnes production capacity abroad with another a 30 million tonnes in the country."

POSCO's current production capacity is 30 million tonnes of crude steel with 13.3 million tonnes at Pohang Works and 16.7 million tonnes at Gwangyang Works. POSCO has planned to set up a 12 million tonnes plan in India.

Mr Alan Heap global commodity analyst with CitiGroup while Speaking to a coal industry conference in Sydney forecasted that World metallurgical coal prices are expected to fall when the next round of negotiation takes place for the contract year beginning April 2007 while thermal coal prices are likely to rise.

Mr Heap said that weakening demand and rising supply of metallurgical coal will weigh on these prices. He said that the global supply and demand balance for coking coal is expected to see supply steadily rise to a peak in 2008 and fall back to a small surplus in 2009.

Mr Heap said that thermal coal prices will be underpinned by stronger demand and ongoing supply constraints in prices. He said Our expectation is we'll see another increase in thermal coal prices when the next round of negotiations take place. Beyond the next contract year, prices are forecast to ease as supply from Australia increases due to easing infrastructure constraints, a slowing in the rate of growth of the robust Chinese economy and lower demand resulting from the beginning of the Phase 2 European carbon trading scheme.

Arcelor Mittal said that they expect their combined company will produce between 150 million to 200 million tonnes of steel by 2015 as world demand rises. It said that said global steel consumption would grow by 3% to 5% by year for the next 10 years.

Arcelor and Mittal Steel produced 112 million tonnes, dwarfing nearest competitor Nippon Steel at 30 million tonnes. This year it forecasts production to stay in that range at between 100 million to 115 million tonnes.

Financial Times has reported that Brazil's biggest steelmaker Gerdau confirmed that it is looking for potential acquisitions but ruled itself out of making any move to merge with Corus Group, which been the subject of industry speculation.

Gerdau said In the process of global steel industry consolidation. Gerdau defines its role as a consolidating agent. However, the group is not considering the possibility of a merger with Corus.

Corus said it has held preliminary talks on linking with steel companies in Brazil, India and Russia as part of an effort to give itself exposure to low cost steel making sites.

Gerdau has grown strongly in the past few years and is now the world's 14th biggest steel producer, with an output last year of 16 million tonnes. It has made several acquisitions in the US and recently made its first foray into Europe by taking a 40% stake in Sidenor, a Spanish steel producer.

Australian scrap metal group CMA Corporation Ltd announced that it has entered into agreements to acquire the Queensland based T & T Metal & Asbestos Services (Queensland) business and the J&M Metals business at Port Hedland in Western Australia.

Mr Peter Hatfull MD of CMA said that the acquisitions would add significantly to the capability of CMA's metals and contracting divisions and moves the group closer to its strategic objective of building a national infrastructure.

Mr Hatfull said that J&M Metals would provide CMA Metals with a window into the burgeoning Pilbara region of WA. He said "In particular, this acquisition gives us better access to business flow from the iron ore sector, where we have had existing relationships in contracting and metals for many years.

Mr Hatfull added that "T & T Metal & Asbestos Services is a long established contracting provider based in Brisbane but with a customer reach throughout Queensland. We were keen to build our business presence in the very robust Queensland market, and we are pleased to have secured this profitable business on satisfactory terms. The acquisition also represents an addition to our Australasian metal processing network as these activities will be run and operated from the same premises. It also provides CMA with an increased platform from which to pursue contracts in asbestos removal and environmental remediation at a time when government and corporate spending in Queensland in these areas is high and still growing."

Kumba Resources announced that a plan to split the group into two separate companies has been finalized and is due to be implemented by late November. A Kumba statement said "Kumba shareholders are advised that all legal agreements necessary to implement the transaction have been finalized.

Shares in the new Kumba Iron Ore firm are due to start trading on November 20, while Exxaro shares will begin trading a week later after the unbundling.

Kumba, majority owned by mining giant Anglo American Plc, said last October that it would split into an iron ore firm and a coal, heavy minerals and base metals company to be named Exxaro Resources, which would be the country's biggest black owned firm. Kumba brought in unlisted black owned group Eyesizwe Coal as a major shareholder in Exxaro as part of South Africa's Black Economic Empowerment drive aimed at bringing more blacks into the mainstream economy after years of exclusion under apartheid.

Xinhua news agency reported that leading iron ore traders China Minmetal Corp and Sinosteel Corporation are expected to join the country's negotiating team for next year's imported iron ore contract price talks with the world's three biggest miners. The move is aimed at creating a more balanced force in negotiations traders are more familiar with international trade rules and would offer useful suggestions.

It cited a report as saying that The suggestion to enlarge China's negotiating team was made by China's Chamber of Commerce of Metals, Minerals and Chemical Importers and Exporters, and the China Iron and Steel Association, with the move seen creating a more balanced force in talks with foreign miners.

Chinese iron ore users and traders were represented by Bao Steel during 2006 negotiations with CVRD, Rio Tinto and BHP Billiton.

Kumba Resources Ltd informed that its exports of iron ore from the port of Saldanha have been disrupted following a breakdown of one of the two ship loaders operated by SA Port operations. At this stage the extent of the repairs required is unknown. According to the company no iron ore will be loaded at the port until the conveyor route feeding the second ship loader is restored.

Kumba said An independent investigation has been launched and details on the cause of the breakdown and the necessary repair program will be communicated once the investigation has been completed. Kumba regrets the impact this development may have on some of its customers and is taking steps to minimize potential disruptions.

Transnet spokesman said that it was not immediately clear what had caused the structural damage or what the extent of the damage was to the loader, which has a capacity to load 8,000 tonnes of iron ore per hour. While SA Port Operations is working to restore the feed system to the operational ship loader, initial indications are that this could take 2 to 3 weeks.

Kumba, majority owned by mining giant Anglo American Plc, exports most of its iron ore to China and has exported more than 11 million ones in the first half of 2006.

Local media has reported that coal miners of Arcelor Mittal's mines in Karaganda region of Kazakhstan continued their strike on Thursday despite a promise made to raise their wages.

Mr Vyacheslav Sidorov a union leader told Reuters that "Another two mines from the Karaganda basin have joined the four that were already on strike. The only people going into the mine shafts are those who need to keep the life support systems running. No coal is being mined." Mr Sidorov did not give an exact number of strikers out of 24,500 persons employed in 8 mines.

The protest which began on Tuesday, was sparked by last week's methane gas explosion that killed 41 miners last week at the Lenin Mine. Seven of Mittal Steel Temirtau's eight mines were not producing coal Thursday, as workers kept pressing for better pay and conditions. As per reports, the protesters demand that their wages, now averaging $350 a month, be raised to $1,000. They also want the international steel giant to improve safety at aging mines.

Mr LN Mittal president of Arcelor Mittal said on last Saturday that the company had invested $240 million on modernizing the complex. He also said accident victims' families would receive up to $55,000 each in compensation. The company said Wednesday that it would increase the miners' pay, announcing the new wages within 10 days. However, the miners said Thursday they would continue the strike until the pay raise is official, and threatened to launch a massive strike if they are not satisfied with the new conditions.

Nucor Corp has announced that it will set up a new metal building systems and components plant at Brigham City in Utah, as the site for a new metal building-systems and components plant. The 45,000 tons per annum facility is slated to cost $27 million and its operations are expected to begin by the first quarter of 2008.

Mr Daniel DiMicco CEO of Nucor's said "We are excited by this attractive opportunity to continue Nucor's growth in the pre engineered metal buildings market and expand our highly profitable vertical integration business model.

Nucor Building Systems Utah advances Nucor's strategy to grow profitable market share in this value added business. With plants in Indiana, South Carolina, Texas and Utah, Nucor Building Systems will have a national reach and combined annual capacity of more than 190,000 tons.

Toledo Ohio based Heidtman Steel will be the latest business partner to join the SeverCorr area industrial site. Upon completion, the Heidtman facility will have rail access and house several processing lines, which can further process SeverCorr's steel allowing the company to cater to more manufacturers.

Mr Michael Wagner chief commercial officer SeverCorr's in a press release said that We're excited to welcome Heidtman to Columbus, both as a strategic partner for SeverCorr and as an employer for Mississippi. Our vision of a robust megasite with multiple companies working closely together to produce the finest steel and steel products available is taking shape. The addition of Heidtman gets us one step closer to making that vision a reality.

Mr John Bates CEO of Heidtman said Heidtman Steel is proud to be chosen as a business partner by SeverCorr. The opportunity to place a state of the art processing facility on the same campus with a new world class steel mill is exciting and continues the mill adjacent strategy that we have employed elsewhere.

Heidtman Steel markets flat-rolled carbon steel products through its 16 processing facilities. Noted for their expertise in high strength steels, Heidtman processes nearly 5 million tons of steel annually through its Heidtman and joint venture facilities. The company serves more than 1,200 customers in a variety of industries including automotive, construction, racking, metal building manufacturers as well as furniture and appliances.

Arcelor Mittal clarified several statements reported in the press yesterday regarding its consent decree with the US Department of Justice.

Under the US consent decree, if the Arcelor Mittal is unable to sell Dofasco to ThyssenKrupp due to Arcelor's April 2006 transfer of its Dofasco shares to the S3 Stichting, it must sell either its Sparrows Point plant in Maryland or its Weirton West Virginia plant. The choice of which plant would be sold in that situation would be made by the US DOJ in its sole discretion.

Arcelor Mittal has informed the DOJ that if it cannot sell Dofasco because of the S3 Stichting, and is therefore required to divest either Sparrows Point or Weirton, it prefers to divest Weirton. The DOJ, however, has not informed the Company which plant it would select under these circumstances.

Finlands Rautaruukki has decided to launch major investment plans with a value of Euro 50 million in Ukraine and Romania.

Ruukki Construction, a Rautaruukki subsidiary, currently has 21 processing plants across Central and Eastern Europe market and the 2 new plants will push the total to 23 plants. The company has also acquired Ventall which is Russia steel fabricator for 100 million In March and bought Ukrainian AEST-Kolor CJSC of pre painted steel line for 6.1 million in April that will help them increase their future success in the market.

Mr Sakari Tamminen president and CEO said "Since 2003, in accordance with our new strategy, we have focused on construction solutions especially in central eastern Europe and Ukraine. The acquisition of Ventall has also given a strong footing in the rapidly growing Russian market. We believe that Ruukki's future success will increasingly be based on the business opportunities created for us by the growth in construction in Eastern Europe."

As per company release, once these are completed, Rautaruukki will be able to significantly increase its deliveries of components and total deliveries for commercial and industrial construction to customers in Ukraine, Romania and Bulgaria. Rautaruukki is prepared to further expand its business with more investments or acquisitions that are in line with its strategy.

Worthington Industries Inc has reported a 52% boost in earnings for the first quarter by posting $43.2 million for the quarter ended August 31st as compared with $28.4 million for the same period last year. Sales increased by 12.1% to $778.7 million from $694.1 million a year ago.

It said that the performance was bolstered by revenue brought in by Precision Specialty Metals Inc, a California stainless steel processor it acquired in August, as it contributed $2.5 million in sales to its steel processing segment.

Cotton & Western Mining Inc announced that it has reached an agreement in principle to form a JV with a mining company located in Mexico.

This arrangement will allow Cotton & Western Mining Inc to exploit more iron mineral reserves in an expeditious manner.

Tests conducted at the 1st location reveal a very high grade crude iron ore. Further testing at the site revealed estimated total known iron mineral reserves of 8 million tonne for an estimated FOB value of $312 million. Work has begun at the 1st site with an anticipated shipment date in February 2007.

Cotton & Western Mining Inc is a US corporation structured to produce and sell iron ore on a global scale. Currently, the Company is engaged in several mining activities and provides iron ore products.

Russian Federal State Statistics Service Rosstat announced that Russia has increased crude steel output by 7.5% YoY during January to August 2006 to 46.8 million tonnes. It said that converter steel output rose by 7.8% to 27.886 million tonnes and electric steel output grew by 11.4% to 9.838 million tonnes.

As per Rosstat the steel production at various enterprises was as under

Russia had produced 66.19 million tonnes of crude steel in 2005 with converter route accounting for 39.18 million tonnes and electric steel accounting for 13.51 million tonnes.

Mr Gerhard Renz has been appointed in Arcelor Mittals management committee board this month as CEO Long Europe

Mr Gerhard Renz has been the COO of Mittal Steel Europe and has over 32 years of experience in the steel industry. Mr. Renz formerly worked as the MD of Mittal Steel Hamburg. Mr. Renz is a board member of Verein Deutscher Eisenhuettenleute, Wirtschaftsvereinigung Stahl and the European Iron and Steel Institute.

He holds a bachelor's degree in engineering.

Laiwu Steel Co Ltd's shareholders have approved its state share reform plan, which offers 10.84 yuan in cash per 10 shares held by the public.

Chinese listed companies typically offer bonus shares to holders of tradable shares in exchange for the right to dispose of non tradable state holdings.

Arcelor signed an agreement to buy 38.41% of Laiwu Steel for 2.09 billion yuan in February 2006. When the deal is completed, Laiwu Steel Group and Arcelor will each hold a stake of 38.41% stake in Laiwu Steel Co.

Listed companies typically offer bonus shares to holders of tradable shares in exchange for the right to dispose of non-tradable state holdings.

The European Bank for Reconstruction and Development has provided a $20 million loan to support further expansion by Odessa based Black Sea Shipping Management Co Ltd, out of which $10 million out of this loan was syndicated to Bank of Scotland.

The project envisages post delivery financing of 5 new dry cargo vessels of 5,500 DWT each. The vessels will be commissioned at Kherson shipyard in south Ukraine. The implementation of this project will help BSSM to maintain its ability to offer safe and reliable shipping services in the region as well as to establish the relevant shipping standards.

Mr Riccardo Puliti, the EBRD Transport Team Director, said this transaction is consistent with the EBRD strategy for Ukraine to provide further support for the shipping industry, a key area in the domestic transport sector. By signing this project the Bank has consolidated its position of a leading lender to the shipping industry in the country, he added.

EBRD has committed over 400 million to transport sector projects in Ukraine. EBRD is the single largest financial investor in Ukraine, having committed to date a total of 2.4 billion across all sectors of the country.

Stelco Inc announced that a scheduled maintenance of its Hamilton based blast furnace will not affect delivery to customers. It said that the 22 day program will start on October 23rd.