Mr SK Roongta chairman of Steel Authority of India Ltd handed over a cheque for Rs 265.85 crore to Mr Ram Vilas Paswan union minister of steel as the final installment of dividend payable by SAIL to the Government of India for financial year 2005-06 at the rate of 7.5% of the companys paid up share capital. SAIL shareholders had approved the final dividend in the companys AGM held on September 22.

With this installment SAIL has paid total dividend of Rs 708.94 crore for 2005-06 to the Government. Interim dividend at the rate of 12.5 per cent was paid by the company earlier this year, taking the total dividend payout to 20% of the paid up capital of the company. The total dividend, excluding dividend tax, paid to shareholders by SAIL amounts to Rs 826.08 crore in addition to Rs 115.86 crore paid by way of dividend tax.

This is the second highest dividend ever paid by SAIL, which had achieved a net profit after tax of Rs 4,012.97 crore in 2005-06.

Indias economic policy watchdog Communist Part of India has criticized Indian government's decision to allow POSCO to set up a Special Economic Zone in Orissa, saying the move would result in displacement of thousands of farmers in the region and has announced that it will oppose the decision and intensify struggle against the aggressive moves of POSCO.

CPI in a statement said "Every inch of the land in Jagatsinghpur is cultivated and is within the fertile delta region of River Mahanadi. Thousands of farmers will be displaced and their livelihood destroyed.

CPI alleged that M even before the sanction Mr Naveen Patnaik led Government of Orissa had handed over more than 1,100 acres of agricultural land to POSCO at the rate of Rs 25,000 per acre. It said "What compensation will be paid to the displaced, with the land being so cheaply transferred to the South Korean giant.

Dr JJ Irani director of Tata Sons on the sidelines of the CII Corporate Governance Summit in Mumbai said that India cannot have steel price movement different from what is happening in the rest of the world adding that International steel prices are hardening a bit and are seen firm for next 6 months.

Dr Iran during an exclusive CNBC-TV18 interview said that steel prices are now an international phenomenon. He said Certainly for the next two quarters I dont see them coming down below the present levels. They may go up slightly higher but they won't come down below the present level for the next 3 to 6 months. After that when new capacities come into play maybe there would be some softening.

Steel Authority of India Ltd announced that it has appointed Mr R Ramaraju as the managing director of its Bhilai steel plant.

Mr Ramaraju was already holding charge of BSP.

Goa Mineral Ore Exporters' Association is opposed to the proposals recently mooted by the Associated Chambers of Commerce and Industry of India for a cess on iron ore exports and a phased ban on iron ore exports. The Goa Chamber of Commerce and Industry is also backing the iron ore industry. The industry sources termed ASSOCHAMs proposal illogical and said that in reality, there is a surplus of iron ore produced in the country, so there is no dearth of availability of ore for future domestic consumption.

A spokesman of the GMOEA told Business Line "With the production costs spiraling and investments for mining also going up considerably, the illogical proposal of a cess of Rs 500 a tonne would throw the industry out of gear. We feel strongly about it especially since around 40% of India's iron ore exports are through Goa. We are against imposing of cess for iron ore exports, as the cess is rarely used for its intended purpose.

Goa's ore exports, which include ore coming from neighboring States, rose from 32.6 million tonnes in 2004-05 to 36.2 million tonnes last year. Its main exporters include Sesa, Dempo, Salgaocar, Chowgules and Timblos who supply iron ore mainly to China, Japan and other countries such as Netherlands, Romania, Turkey, South Korea, Taiwan, Pakistan, Kuwait, Qatar, UAE, Oman and Kenya.

Indias Central Statistical Organization reported that the quarterly GDP at factor cost at constant prices (1999-2000) for April-June 2006 is estimated at Rs 6,560.64 billion, as against Rs 6,024.76 billion in the corresponding period of last fiscal showing a growth rate of 8.9%.

CSO reported that manufacturing sector registered a smart growth of 11.3% YoY in Q1 of 2006-07, higher than 10.7% growth registered in last Q1 2005-06. The sectors which registered significant growth in Q1 of 2006-07 over Q1 of 2005-06 are

SAIL contributed Rs 7,953 crore to the government kitty during 2005-06 as excise duty, customs duty, corporate tax including fringe benefit tax and dividend including dividend tax.

This was an increase of nearly 62% from Rs 4,917 crore paid in 2004-05.

Mr J Mehra director of Essar Group believes that post summer holidays European demand has picked up, global demand for steel still remains strong and would pick up further in the current period and therefore expects some upward movement in steel prices.

Mr J Mehra during an exclusive CNBC-TV18 interview said that Europe has picked up. The movement in the pricing and the buying has started because normally in Europe, after the summer holidays, the purchases begin. They have been sitting on the fence and have been trying to watch out. But now, the market is moving.

Mr J Mehra responding to a question whether domestic steel prices are likely to go up this month, without indicating the quantum, said It is very speculative. In any case, the steel demand remains quite strong. There would be movements in the prices. We have dropped the prices in the last one two months. This is the period where the demand normally picks up. So there would be some movement. He emphatically denied any chances of domestic price reduction.

Indian government has awarded approval for 10 coal bed methane blocks

Mr P Chidambaram finance minister after the CCEA meeting chaired by Prime Minister Manmohan Singh told reporters "The Cabinet Committee on Economic Affairs has accepted the recommendations of the ECs without any change. Mr Chidambaram said the bank guarantee for the minimum work program would be based on the cost estimates made by the directorate general of hydrocarbons in respect of all the 10 blocks.

The consortium of Reliance Energy Ltd (REL)-Reliance Natural Resources Ltd -Geopetrol International Inc was awarded sp(north)-cbm-2005/iii, kg(e)-CBM-2005/iii, bs(4)-cbm-2005/iii and bs(5)-cbm-2005/iii blocks.

Arrow energy- Gail-EIG Energy Infrastructure-TATA Power consortium was awarded mr-cbm-2005/iii and tr-cbm-2005/iii and rm-CBM-2005/iii block.

Coalgas Mart Ltd-Deep Industries Ltd-Adinath Exim Resources Ltd won gv(north)-CBM-2005/iii and sr-cbm-2005/iii blocks.

BP Exploration Ltd bagged the bb-CBM-2005/iii block.

Indian government gave its approval to the Singareni Collieries Company Limiteds Shantikhani Longwall Project in Adilabad District of Andhra Pradesh for production of 1.167 million tonnes of coal at a capital expenditure of Rs 249.03 crore. The coal produced from the project would meet the requirements of the thermal power stations of Andhra Pradesh Power Generation Corporation and Maharashtra State Electricity Board.

Mr P Chidambaram finance minister told reporters "The Cabinet Committee on Economic Affairs today gave its approval to the Shantikhani Longwall Project of the SCCL for coal production of 1.167 mt per year at a net capital requirement of Rs 249.03 crore." He said that CCEA also approved of flexibility in the implementation stage within the cost estimates, which would result in improved profitability and productivity parameters.

Singareni Collieries Company Ltd is owned by Government of Andhra Pradesh and Government of India with share holding of 51:49 with its head quarters situated in Hyderabad, Andhra Pradesh. At present, SCCL has 55 Underground and 11 opencast operating mines and these mines have produced 36.40 million tonnes of coal in the year 2005-06.

New Mangalore Port Trust has announced that it has created a single day single vessel handling record on 28th September 2006 by handling a quantity of 19,750 tonnes of coal in vessel MV Astra, surpassing earlier record of 19,470 tonnes on February 24.

A record quantity of 8,126 tonnes of coal was handled in a single shift on September 28, surpassing the earlier record of 6,372 tonnes handled on September 24, 2005.

The release said that MV Astra, carrying 32,290 tonnes of coal from South Africa for Bhatia International of Indore for distribution in Karnataka, called at the port on September 28.

It is reported that 4 labors died in a wall collapse of one of the wheat warehouse at Kandla port on 28.09.2006.

As a result the port operations have slowed down, as the labor union is not allowing labor to reach port and undertake loading & unloading operations. The situation is reported to be tenses.

The Wall Street Journal reported that inventories of steel have been piling up in customer warehouses in the United States, causing worries of a glut and downward pressure on prices. The rising supplies come as US auto makers are cutting back domestic production, and could be a sign of weakness in some other parts of the US manufacturing sector.

According to the Chicago based Metal Service Center Institute, based near Chicago, steel service centers, which buy 30% of the steel sold in the US and resell it to manufacturers, reported that inventories are at the highest level since January 2005, with 15.9 million tons on hand or 3.1 months of supply in August. That is down from the 3.4 months of supply in July but up from the 2.7 months of supply in August 2005.

Crude steel production in is up by 9.4% from a year earlier to 65 million tons through July and steel imports into the US are 40% YoY than a year earlier, as steel makers elsewhere seek out higher prices in the States.

Some analysts suggest that some of the world's largest steel companies might curb production to reduce oversupply risks and prevent volatile pricing swings. Several steelmakers made a similar move, successfully, in 2005 as a glut developed. In that case, steel prices fell steadily for 10 months but did not crash as they have in previous cycles.

Chinas Taiyuan Iron and Steel has successfully started their new 160 tonne EAF to add 2 million tons per year production capacity to take the total capacity beyond 3 million tons making them the biggest stainless steel producer in the world.

Shandong based metallurgical equipment provider Yantai Guoye supplied the stainless steel project with 800 tons of equipments, including two 160 tonne electric furnaces, two 180 tonne LFs and filter cooling chimney etc.

TISCO is based in North China's Shanxi province and has managed to massively cut stainless production costs by using hot metal as major raw material for stainless smelting. Years of R&D efforts have sharpened TISCO's competitive edge in a wide range of product lines.

Mr LN Mittal president of world's largest steelmaker Arcelor Mittal has advised that steel companies around the world must brace for more mergers. Mr LN Mittal during an interview with CNN said The steel industry has always been fragmented. The steel industry needs to be consolidated.

Mr LN Mittal had earlier said that We are focusing on India and China. India is a very important milestone for us to remain the biggest company in the global steel industry.''

Steelmakers across Asia are putting defensive measures in place to prevent being swallowed by Arcelor Mittal. Nippon Steel Corp., the world's second-biggest steelmaker, is asking domestic rivals to help block a hostile takeover from abroad. South Korea's Posco may buy back shares to increase its market value and TATA Group plans to raise its stake in TATA Steel

Brazilian Cia Vale do Rio Doce announced that it has obtained a credit line of more than $30 billion from which it will take around $18 billion to buy Canadian nickel miner Inco Ltd. CVRD also said that it would get all the necessary regulatory approvals for the acquisition in Canada and Europe before October 16th when its offer expires.

Mr Roger Agnelli CEO of CVRD told reporters "We went to the market and got more than $30 billion. Obviously, we'll only draw down only what we need, up to $18 billion.

Buying Inco would make CVRD one the world's top three diversified miners, with a leading position in nickel, iron ore, bauxite, alumina and manganese.

Mechel has announced the commissioning of the Olzherasskaya Mine, a part of the Southern Kuzbass coal company. The mine has been commissioned in line with Mechel's previously announced strategy of further developing its mining segment and increasing coal production to 25 million tonnes by 2010. The company invested US$100 million in the mine's construction.

Commissioning of the Olzherasskaya Mine will allow Southern Kuzbass OAO to increase its coal output by 1.8 million tonnes in 2007. The new mine's annual capacity is 3 million tonnes, and production will reach this level in 2010. The reserves of the Olzherasskaya Mine are 160 million tonnes of coking coal. Of this volume, 150 million tonnes are concentrated in the Razvedochny Plot of the Raspadsky Coal Deposit. The license to develop this deposit was acquired by Southern Kuzbass for $ 15.5 million at an open auction in June 2005.

The new mine is equipped with modern mining machinery. The mine's development ends are worked up by high capacity roadheaders and coal is extracted with a powered mining complex using the sub level caving method that enables thick seam mining in one layer.

Mr Alexey Ivanushkin COO of Mechel said "Mechel is entering the stage of active development of the license areas acquired at auctions in 2004-2005. Commissioning of the new mine in Southern Kuzbass will not only raise our performance indicators in coal production, but also set the pace for implementation of the entire program of the priority development of Mechel's mining segment.

Timken Co has slashed its third quarter and full year profit forecasts, citing a slumping North American auto industry and also announced plans to eliminate 700 jobs in the automotive group.

Mr James W Griffith CEO of Timkin in the statement said The widening decline in North American auto industry production has had a significant impact on our performance. This structural auto industry shift reinforces our resolve to diversify our corporate portfolio and customer mix.''

Outokumpu Technology has signed a significant contract with Brazilian iron ore producer ThyssenKrupp CSA Companhia Siderrgica for the design and delivery of a sinter plant for CSA. The design capacity of the sinter plant will be 4.4 million tonnes sinter per year and it is scheduled to start operation in 2009.

Outokumpu Technologys scope covers the entire engineering, supply of process equipment, construction and start-up of the turnkey sinter plant, which CSA plans to build in connection with its Greenfield steel plant in Sepetiba, Rio de Janeiro. The total value of the contract amounts to Euro 160 million, of which approximately Euro 90 million will be recognized as sales of Outokumpu Technology.

Mr Tapani Jvinen president & CEO of Outokumpu Technology said This significant project will have a similar scope and size as the Samarco project, the world's largest pellet indurating furnace that Outokumpu Technology is currently building in Brazil. We have also today announced the contract for the MBR palletizing plant, which, as well as CSA, will be the largest plant of its kind in the world. These three significant Brazilian projects clearly demonstrate our market leadership in iron ore processing technologies. The majority of the worlds iron ore palletizing and sintering plants use Outokumpu Technologys processes.

Vietnam Steel Association said that Vietnam is estimated to import nearly 4.3 million tons of steel billets and steel products totaling roughly $2.2 billion during January to September 2006 up by 1.4% in volume but down by 6.2% in value.

Vietnam, which currently imports 70% of steel billet it needs for steel production, is cutting the import as new local billet plants are operating and its billet imports are likely to be 1.5 million tons valued at $582 million posting respective YOY decreases of 10.2% and 9.8%.

Vietnam had imported 5.6 million tons of steel billets and finished steel products totaling 3 billion dollars in 2005 up by 8.7% and 16% respectively over 2004.

Kazakhstan today has reported that now all mines of the Mittal Steel Temirtau went on strike in Karaganda region of Kazakhstan as workers from the Lenin, Shakhtniskaya, Tentekskaya, Kazakhstanskaya, Kuzembayev, Kostenko, and Saranskaya mines have been joined by workers of the Abaiskaya mine resulting in total stoppage of coal production.

The miners, whose protest was triggered by last week's methane gas blast at the Lenin mine that killed 41 workers, were expected to be joined on Saturday by thousands of steel workers, who also demand higher wages and better working conditions.

The company has said the new wages will be announced within 10 days, but the miners said they would continue the protest which began Tuesday until the pay raise is official, and threatened to launch a massive strike if they are not satisfied with the new conditions.

Cazaly Iron Pty Ltd has had a win in the courts, with the contentious Shovelanna mining lease applications being stayed in the WA Warden's Court pending Supreme Court action. The court ruling is the latest installment in the long running battle over whether the Shovelanna iron ore deposit in the Pilbara can be developed by Rio Tinto, as ordered by mining minister Mr John Bowler, or can be obtained by Cazaly.

Cazaly said that it has been advised that His Honour Warden Calder has made his decision in relation to the applications by Cazaly Iron Pty Ltd to
1. Stay the mining lease applications M46/437 to M46/440 by Hamersley Resources Limited, Hancock Prospecting Pty Limited and Wright Prospecting Pty Limited (Rio JV)
2. Amend Cazaly's objections to the mining lease applications to expand the grounds of objection.
The Warden has granted both applications.

The grant of the stay means that the mining lease applications by the Rio JV in respect of the ground containing the Shovellana deposit cannot proceed until the Supreme Court has determined Cazaly's application for judicial review of the Minister's decision to terminate application E46/678 by Cazaly.

Miningmx citing Merafe Resources has reported that the prices for ferrochrome are expected to be rolled over or improved slightly in the fourth quarter of this year.

Mr Steve Phiri CEO of Merafe Resources while speaking at speaking at the Nedcor Securities mid-cap conference in Cape Town said "We do not anticipate any reduction of ferrochrome prices for the fourth quarter. They will be rolled over or even slightly increased. However, there was the possibility that new ferrochrome production in 2007 from Project Lion might tip the scales. But we expect the market to be quite strong.

Ferrochrome, the price of which is negotiated in quarterly contracts, was sold for about $0.74c/lb in the third quarter, a 6.8% increase. The price of ferrochrome is closely tied to stainless steel production of which about 78% growth will be recorded in China.

Merafe merged its ferrochrome assets with those of Xstrata in South Africa to create the world's largest integrated ferrochrome producer, whose output is expected to reach 1.95 million tons when the R1.7 billion Project Lion reaches full production. Project Lion is an Xstata controlled venture in which Merafe has a 20.5% stake.

It is reported that Mittal Steel South Africa has informed its customers that it will increase prices of both long & flat steel products by a weighted average of 5% for shipment from November 1st to November 30th.

As per reports prices for plate, hot rolled and cold material would rise by an average of 5%, while galvanized and color coated material would remain unchanged. The average long product increase for steel would also be 5%, affecting structural sections, squares, flats, window sections, fencing products, special profiles, spring steels and hollow drill steel. The price of rounds would rise by 7.5%.But prices on billets, blooms, rebar and alloy steel would remain unchanged for the period.

The November increase is the first to be announced by Mittal Steel SA since August 1st, when hot rolled coil prices rose by 9%, plate by 12%, and the average increase across its flat products range rose by some 8%. That increase followed on an average July 1 increase of 5.4%, which was the first broad based price rise announced by the group since October 2004. On June 1, Mittal Steel SA raised prices on galvanized and color coated steel.

Mittal Steel SA decides its domestic prices using a basket of domestic prices in six countries, including Brazil, the US, Germany, Korea, China and Russia. This method was introduced last year given growing unhappiness with the import parity pricing model employed previously and which is the subject of a Competition Tribunal hearing.

Brazilian steelmaker Companhia Siderurgica Nacional announced that it create its Casa de Pedra iron ore mine into an independent entity in the first quarter of 2007. Analysts estimate the value of Casa de Pedra in a spin off at between $3.5 billion and $4 billion.

Mr Jose Marcos Treiger investor relation director of CSN said that CSN would still maintain a majority stake in the new entity and has hired an investment bank for the operation.

Casa de Pedra is expected to produce 16 million metric tons of iron ore in 2006. However, CSN is currently in the midst of a $1.5 billion expansion of the mine, which will increase output to 53 million tons a year by 2010. The project also will expand export facilities at the Sepetiba port near Rio de Janeiro to accommodate the increased output.

Incidentally CSN & CVRD are in a dispute at Cade over the controlling rights for selling excess iron ore from Casa de Pedra. Cade ruled that CVRD must sell its Ferteco mining unit or give up its preferential right to iron ore from CSN's Casa de Pedra mine. Earlier this month, CVRD said it was again studying Cade's order and may be more open to selling the Ferteco mining unit. CVRD has also said it won't relinquish the preferential right without compensation from CSN.

Universal Stainless & Alloy Products Inc has announced base price increases of 5% to 7% on all tool steel products manufactured at its Bridgeville and Dunkirk facilities. The increase will be effective with all shipments on October 9th 2006. Current material and energy surcharges will remain in effect.

Mr Richard Hack VP of sales and marketing said "This action is necessary to cover higher energy and operating supply costs and to support our practice of capital reinvestment to better serve our customers."

Universal Stainless & Alloy Products Inc, headquartered at Bridgeville in Pennsylvania, manufactures and markets a broad line of semi finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels.

BNamericas has reported that Colombian coal miner Carbones del Cerrej is moving ahead with its plan to reach output of 32 million tonnes by 2008. Mr Leon Teicher president of CDC told BNamericas "We are finishing up works that will take us to a production of 32 million tonnes by 2008, it is already a reality. We are already looking at 28.5 million tonnes for this year and 31.5 million tonnes for 2007.

Mr Teicher also said that CDC is evaluating the next phase of expansion, which would take output to 40 million tonnes, as well as pre feasibility tests and by next year the company expects to know when the next phase can begin and the investment it will require.

He said "Since we are still working on the current expansion, the end of this phase will fit perfectly with start up of the new one. And once we purchase the machinery and make other investments, from there we will begin to think about the pre feasibility of another stage that could take us to more than 45 million tonnes.

Carbones del Cerrej is equally owned by BHP Billiton, Xstrata and Anglo American. The Zona Norte mine at Cerrej is the largest coal mine in South America.

Chinas state owned long product steelmaker Pingxiang Iron & Steel announced last week that their purchase of Jiujiang Steel has been finalized, but Jiujiangs parent company, the Ossengroup has denied any such purchase.

Ossengroup said Our Jiujiang plant has been running well since we purchased it in 2004, and we are making nice profits, so we have no intention to merge with anyone.

Jiujiang has an annual capacity of 70, 000 tons and was established in 1994. The Ossengroup bought the facility in 2004 after it went bankrupt in 2003.

Mr Andrvan den Bossche has been appointed in Arcelor Mittals management committee board this month as Head of Marketing.

Mr Andrvan den Bossche has been Arcelor's executive VP Commercial Worldwide Optimization since 2005. Prior to this, he was MD of Arcelor's Flat Carbon Steel commercial organization from 2002 to 2005.

Between 1995 and 2001, he was managing director at the Aceralia Sidstahl Ibica and Sidstahl sales organizations. Before that, he was sales director at TradeArbed Luxembourg during 1986 to 1995.

At Sidmar (Ghent), which he joined in 1970, he was VP of the Commercial and Customer Relations Department, GM of the cold rolling mill and production and management engineer at the cold rolling mill.

Mr Andrvan den Bossche is a civil engineer graduated from the Universities of Louvain and Ghent.

It is reported that Vietnam is estimated to ship abroad nearly 19.8 million tons of coal worth $628 million in the first nine months of this year, posting respective YOY increase of 68.3% and 38%.

Vietnam exported 17.9 million tons of coal valued at $658 million in 2005 to over 20 countries and regions, including China, Japan, South Korea, Thailand, Malaysia, India, Brazil and the European Union.

Recently, the Vietnamese Ministry of Planning and Investment has asked the government to reduce coal exports in the 2006-2010 periods. Trade Information Center under the Trade Ministry said that the country plans to increase export tax on coal to 3% from the current 0%, aiming to ensure sufficient supply of the material for domestic industries, mainly electricity, paper, fertilizer and cement.

Aztec Resources Ltd announced that its full year pretax loss narrowed to A$5.2 million from A$6.3 million a year earlier and its revenue for the year ended June 30 grew to A$1.9 million from A$.599 million last yea

Aztec expects to produce up to 4 million tonnes of iron ore per year for about 9 years from resources of 53 million tonnes grading 64.6% Fe.

Japans Ministry of Economy, Trade and Industry announced that Japanese steel products demand will increase by 1.6% QoQ to 27.25 million tones in October to December 2006 over July to September 2006 and by 6.4% YoY over October to December 2005.

The domestic demand will increase for construction field by increasing for civil engineering, for manufacturing industry such as shipbuilding or industrial machine, and will decrease slightly and keep high production for automobile.

Japanese raw steel output will record second in October to December, 2006 following in October to December 1973 at 31.27 million tonnes, and record third at 115.73 million tonnes following in 1974 at 117.13 million tonnes.