Document:

Exhibit 10.18

THIS ASSET PURCHASE  AGREEMENT,  dated as of October 2, 2000 (the "Agreement" or
the "Asset Agreement"),  is by and between ALLOY STEEL  INTERNATIONAL,  INC.., a
Delaware corporation ("ASI"), and COLLIER UNIT TRUST ("Collier").

      WHEREAS,  Collier desires to sell to ASI, and ASI desires to purchase from
Collier,  the assets of Collier listed on Schedule A, (the "Purchased  Assets"),
upon the terms and subject to the conditions set forth in this Agreement.

      NOW, THEREFORE,  in consideration of the mutual benefits to be derived and
the representations and warranties,  conditions, covenants and agreements herein
contained, and intending to be legally bound hereby, the parties hereto agree as
follows:

                          ARTICLE I: PURCHASE AND SALE

      SECTION 1.01. Sale and Purchase of Assets.

            (1) On the date hereof Collier shall sell, transfer,  grant, convey,
assign and set over to ASI,  and its  successors  and assigns  forever,  and ASI
shall purchase and receive from Collier, all of the right, title and interest of
Collier in, to and under the businesses, franchises, rights, claims, privileges,
and properties owned,  used or held for use by Collier  exclusively or primarily
with respect to or in connection with the Arcoplate Process, of every nature and
description,  tangible  and  intangible,  wherever  located  and  whether or not
carried on the books or records of Collier, including:

            (A) All books, records and files exclusively or primarily related to
      the Purchased Assets; and

            (B)   All  stationery,  purchase  orders,  forms,  labels,  shipping
                  material,  catalogs,  brochures,  art  work,  photographs  and
                  advertising  and  promotional  copy,  materials and literature
                  relating exclusively or primarily to the Purchased Assets.

      SECTION  1.02.  Consideration.   The  aggregate  purchase  price  for  the
Purchased Assets is ONE MILLION,  TWO HUNDRED FIFTY THOUSAND  (1,250,000) SHARES
OF COMMON STOCK OF ASI (the "Purchase Price").

      SECTION  1.03.   "Purchase  and  Sale"  Defined.  The  purchase  and  sale
transactions  provided  for above in this  Article I are  sometimes  referred to
herein as the "Purchase and Sale."

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                   ARTICLE II: REPRESENTATIONS AND WARRANTIES

      SECTION 2.01. Investment Representations:

            (A) The ASI Stock is being  acquired for Collier's own account,  for
      investment  and not with a view to, or for resale in connection  with, any
      distribution  or  public  offering  thereof  within  the  meaning  of  the
      Securities Act of 1933, as amended, or other applicable securities laws.

            (B) Collier is an  "Accredited  Investor" as that term is defined in
      Rule 501 of Regulation D promulgated  under the Securities Act of 1933, as
      amended.

            (C) Each  certificate  evidencing the ASI Stock subject to the terms
      and conditions of this Agreement and each  certificate  issued in exchange
      for or upon the transfer of any shares subject to the terms and conditions
      of this  Agreement  (if  such  shares  remain  subject  to the  terms  and
      conditions  of this  Agreement  after such  transfer)  shall be stamped or
      otherwise  imprinted  with a  conspicuous  legend,  in  substantially  the
      following form:

            "THE SHARES  REPRESENTED  BY THIS  CERTIFICATE  HAVE NOT
            BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933, AS
            AMENDED AND HAVE BEEN ACQUIRED FOR  INVESTMENT  PURPOSES
            ONLY AND NOT WITH A VIEW TO, OR IN CONNECTION  WITH, THE
            SALE  OR   DISTRIBUTION   THEREOF.   NO  SUCH   SALE  OR
            DISTRIBUTION   MAY  BE  EFFECTED  WITHOUT  AN  EFFECTIVE
            REGISTRATION  STATEMENT RELATED THERETO OR AN OPINION OF
            COUNSEL  IN  A  FORM   SATISFACTORY  TO  ASI  THAT  SUCH
            REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
            1933."

                              ARTICLE III: CLOSING

SECTION  3.01.  Closing.  The  closing  of  the  Purchase  and  Sale  and  other
transactions contemplated hereby (the "Closing") shall occur on the date hereof.

                           ARTICLE IV: INDEMNIFICATION

SECTION 4.01. By Collier.

      (1) From and after the date hereof,  Collier shall  indemnify ASI against,
and hold ASI  harmless  from,  any and all Losses (as  defined in Section  4.02)
directly or indirectly incurred,  suffered, sustained or required to be paid by,
or sought to be imposed upon, ASI

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resulting  from,   relating  to  arising  out  of  any  breach  of  any  of  the
representations  or  warranties of the parties set forth in Article II hereof or
in any other Subject Document.

SECTION 4.02.  Losses Defined.  In this  Agreement,  the term "Losses" means and
includes  all  losses,   claims,   liabilities,   damages  (including,   without
limitation,   punitive,   consequential  and  special  damages  awarded  to  any
third-party claimant), judgments, liabilities,  payments, obligations, costs and
expenses (including, without limitation, any costs of investigation, remediation
or cleanup,  and any reasonable legal fees and costs and expenses incurred after
the date  hereof in defense of or in  connection  with any  alleged or  asserted
liability,   payment  or  obligation  as  to  which  indemnification  may  apply
hereunder),  regardless of whether or not any liability,  payment, obligation or
judgment is ultimately imposed against Collier or ASI and whether or not Collier
or ASI are made or become  parties to an action,  suit or  proceeding in respect
thereof, voluntarily or involuntarily.

SECTION  4.03.  Notice of  Claims.  With  respect  to any matter as to which any
person or entity (the "Indemnified  Person") is entitled to indemnification from
any other person or entity (the  "Indemnifying  Person")  under this Article VI,
the Indemnified Person shall have the right, but not the obligation, to contest,
defend or litigate,  and to retain counsel of its choice in connection with, any
claim, action, suit or proceeding by any third party alleged or asserted against
the Indemnified Person in respect of, resulting from, relating to or arising out
of such  matter,  and the costs and  expenses  thereof  shall be  subject to the
indemnification  obligations of the  Indemnifying  Person  hereunder;  provided,
however,  that if the Indemnifying Person acknowledges in writing its obligation
to  indemnify  the  Indemnified  Person in respect of such matter to the fullest
extent provided by this Article IV, the  Indemnifying  Person shall be entitled,
at its option, to assume and control the defense of such claim,  action, suit or
proceeding  at its  expense  through  counsel of its  choice if it gives  prompt
notice  of  its  intention  to do so  to  the  Indemnified  Person.  Neither  an
Indemnified  Person nor an  Indemnifying  Person  shall be entitled to settle or
compromise any such claim,  action, suit or proceeding without the prior written
consent  of the other  party  hereto  which  consent  shall not be  unreasonably
withheld.

SECTION 4.04. No Punitive Damages.  Notwithstanding anything to the contrary set
forth in this  Agreement,  no party hereto shall have any liability to any other
party hereto for any punitive, consequential or special damages by virtue of any
breach of any representation,  warranty, covenant or agreement in or pursuant to
this  Agreement,  any  Subject  Document  or any other  agreement,  document  or
instrument  executed and delivered pursuant hereto or in connection  herewith or
the  Closing;  provided  that the  foregoing  shall  not be  deemed to limit the
obligation of any party hereunder to indemnify for Losses constituting punitive,
consequential or special damages awarded to any third-party claimant.

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                            ARTICLE V: MISCELLANEOUS

SECTION 5.01. Entire  Agreement.  This Agreement and the other Subject Documents
contain  the entire  agreement  among the  parties  hereto  with  respect to the
subject  matter  hereof  and  thereof,   and  supersede  all  prior  agreements,
arrangements and understandings with respect thereto.

SECTION 5.02.  Notices.  Any notice  required by this Agreement must be given by
prepaid,  first class,  certified mail, return receipt requested,  at such other
addresses  as may be given  from time to time  under  the  terms of this  notice
provision.

SECTION 5.03.  Governing Law and Forum.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

SECTION  5.04.  Counterparts.  This  Agreement  may be executed in any number of
counterparts,  and each  such  counterpart  shall be  deemed  to be an  original
instrument,  but  all  such  counterparts  together  shall  constitute  but  one
agreement.  This Agreement  shall become  effective when each party hereto shall
have received counterparts hereof signed by all of the other parties hereto.

IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be duly
executed and delivered by their respective authorized officers as of the day and
year first above written.

ALLOY STEEL INTERNATIONAL, INC.

By: _________________________________
         Name:
         Title:

COLLIER UNIT TRUST

By: _________________________________
         Kroko Nominees Pty. Ltd.
         Name:
         Title:

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                                   Schedule A

                                       6Exhibit 10.19

      THIS  EQUIPMENT  PURCHASE  AGREEMENT,  dated as of  October  2,  2000 (the
"Equipment  Agreement"),  is by and between ALLOY STEEL  INTERNATIONAL,  INC., a
Delaware  corporation  ("ASI"),  and KROKO  NOMINEES  PTY LTD As Trustee for THE
COLLIER UNIT TRUST, an Australian entity ("Collier").

      WHEREAS,  ASI desires to purchase  from  Collier,  and Collier  desires to
sell, an Alloy Application  Machine known as Machine #2 ("Machine #2"), upon the
terms and subject to the conditions set forth in this Agreement.

      NOW, THEREFORE,  in consideration of the mutual benefits to be derived and
the representations,  warranties, conditions and covenants herein contained, and
intending to be legally bound hereby, the parties hereto agree as follows:

                          ARTICLE I: PURCHASE AND SALE

      SECTION 1.01. Sale and Purchase of Assets.

            (1) On the Date hereof Collier shall sell,  transfer,  grant, convey
and assign to ASI, its  successors and assigns  forever,  and ASI shall purchase
and receive from Collier, all of the right, title and interest in and to Machine
#2.

      SECTION  1.02.  Consideration.  The  purchase  price is $820,000 in United
States Dollars (the "Purchase Price").

      SECTION  1.03.  Delivery.  Delivery  shall be made at ASI's expense to its
plant and will furnish specifications for said delivery.

                   ARTICLE II: REPRESENTATIONS AND WARRANTIES

      SECTION 2.01. "AS IS" Sale.

            MACHINE #2 COVERED BY THIS  CONTRACT  HAS BEEN  PURCHASED BY ASI "As
Is"  and  "With  All  Faults"  AND  ASI  ACKNOWLEDGES   THAT  NO  WARRANTIES  OF
MERCHANTABILITY  OR FITNESS FOR ANY PARTICULAR PURPOSE ARE TO BE IMPLIED BY THIS
TRANSACTION.

      SECTION 2.02 DISCLAIMER OF EXPRESS WARRANTIES.

<PAGE>

            Any  affirmation  of fact or promise  made by  Collier  shall not be
deemed to create an express warranty that Machine #2 conforms to the affirmation
or promise.

      SECTION 2.03 DISCLAIMER OF IMPLIED WARRANTIES.

      THIS SALE IS MADE ON THE  EXPRESS  UNDERSTANDING  THAT THERE IS NO IMPLIED
WARRANTY THAT MACHINE #2 SHALL BE FIT FOR A PARTICULAR PURPOSE. ASI ACKNOWLEDGES
THAT THERE ARE NO  WARRANTIES  THAT EXTEND  BEYOND THE  DESCRIPTION  ON THE FACE
HEREOF.

                           ARTICLE III: MISCELLANEOUS

      SECTION  3.01.  Entire  Agreement.  This  Agreement  contains  the  entire
      agreement  among the  parties  hereto with  respect to the subject  matter
      hereof,   and   supersedes   all  prior   agreements,   arrangements   and
      understandings with respect thereto.

      SECTION 3.02. Notices. Any notice or other communication which is required
      or  permitted  hereunder  shall be in writing  and shall be deemed to have
      been  delivered and received (x) on the day of (or, if not a business day,
      the first  business  day after) its having been  personally  delivered  or
      telecopied to the following  address or telecopy number,  (y) on the first
      business day after its having been sent by overnight  delivery  service to
      the following address, or (z) if sent by regular,  registered or certified
      mail, when actually received at the following address:

      If to:

                  Alloy Steel International, Inc.
                  P.O. Box 3087 Malaga D C 6945
                  Western Australia
                  (P) 61-8-92-48-3188
                  (F) 011 618 9 3415599

      If to:

                  Kroko Nominee Pty LTD.
                  108 Brighton Rd.
                  Scarborough, Western Australia
                  (P)
                  (F)

Any party may by notice change the address or telecopier number to which notices
or other communications to it are to be delivered, telecopied or sent.

<PAGE>

      SECTION 3.03. Governing Law and Forum. This Agreement shall be governed by
      and construed in accordance with the laws of the State of New York.

      SECTION 3.04.  Counterparts.  This Agreement may be executed in any number
      of  counterparts,  and each  such  counterpart  shall be  deemed  to be an
      original instrument,  but all such counterparts  together shall constitute
      but one agreement.  This Agreement shall become  effective when each party
      hereto shall have received  counterparts hereof signed by all of the other
      parties hereto.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
      duly executed and delivered by their respective  authorized officers as of
      the day and year first above written.

ALLOY STEEL INTERNATIONAL, INC.

By: _________________________________
               Name:
               Title:

KROKO NOMINEES PTY LTD
     As Trustee
THE COLLIER UNIT TRUST

By: _________________________________
               Name:
               Title:

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