3:00AM New York, 7:00PM Sydney- BlueScope reports a sharp fall in profit but forecasts higher profit in the current period. Allegiance Mining directors recommended revised offer from Zinifex.

Market Sentiment

ASX 200 index rose 1.1% or 61.7 to close at 5,621.60

The Preliminary market turnover was 1.42 billion worth $5.61 billion, with 571 stocks trading up, 606 trading down, and 357 unchanged.

Market Driver

Zinifex Limited and Allegiance Mining NL today jointly announced a revised takeover offer for Allegiance, under which Allegiance shareholders would be offered $1.10 cash per share. The increased offer represents an attractive premium for Allegiance shareholders.

Allegiance directors, Tony Howland-Rose, David Deitz, Barry Sullivan and Eddie Lee each recommended that all Allegiance shareholders accept the revised offer in the absence of a superior proposal.

Zinifex's chief executive Andrew Michelmore said: ""We are delighted that the Allegiance board is recommending our revised offer. The increased offer represents a very attractive offer and a fair value for Allegiance shareholders, reflecting the high quality of the Avebury nickel project.""

Allegiance has agreed to appoint Zinifex nominees to Allegiance's board once Zinifex reaches 50.1% acceptances, at which time the majority of Allegiance directors will resign. Zinifex has agreed to allow two of the current Allegiance directors (Barry Sullivan and Shi Peirong) may remain on the board of Allegiance, until Zinifex acquires 90% of Allegiance shares.

Zinifex also announced that shareholders in Allegiance Mining NL who accepted its takeover offer by for all of the shares in Allegiance after 5:00 pm (Melbourne time) but before 7.30 pm (Melbourne time) on 8 February 2008 have a right to apply to it to cancel their acceptance.

Zinifex delivered a record half-year profit of $1,309.7 million for the period ended 31 December 2007, 74% increase from a year ago on the sale of Zinifex's smelting assets which contributed $960.6 million to net profit and $1,785 million of cash.

Allegiance rose 2.8% and Zinifex rose 3.5%.

Gainers and losers

Of the ASX 200 index stocks, Transfield Service led the gainers with a rise of 24.2% followed by increases in Riversdale Mining of 12.9%, in Aristocrat Leisure of 6.5%, in Fortescue Metals of 6%, and in Incitec Pivot LT of 5.2%.

Of the ASX 200 index stocks, Allco Finance GR led the decliners with a fall of 63.6% followed by losses in City Pacific Ltd of 8.6%, in Babcock & Brown of 7.4%, in Aquarius Platinum of 7.1% and in Pacific Brands of 6.9%.

Dyno Nobel to restart ammonium nitrate plant

The world's second- largest explosives maker, Dyno Nobel Ltd's share rose 6.9% to its highest in 11 weeks in Sydney trading on optimism it may restart work on its stalled ammonium nitrate plant in Queensland state according to a report on Bloomberg and AAP.

Speaking on a conference call Dyno chief executive officer Peter Richards said Dyno, which spent $280 million on the project, had also held talks with potential investors to finance the project.

Richards said a group including United Group Ltd. and Bilfinger Berger AG has submitted a proposal to resume work on the Moranbah plant.

Dyno's full- year net income fell 49% to $42.7 million after it wrote off $52.4 million on the plant.