Mittal donates $3.9mn to Britain's Labour Party

British Prime Minister Tony Blair thanked Indian steel tycoon Lakshmi Mittal today for a large donation to Labour Party even though such a gift triggered controversy five years ago.

The chairman of Arcelor-Mittal, the world's largest steel manufacturer, pledged two million pounds ($3.9 million) to the Labour Party, Blair's office said.

"I am delighted that Mr Mittal, who is one of the world's most successful businessmen, has made such a generous donation. I thank him for his continued support for the Labour Party," he said.

In 2002, a row erupted amid suspicions that a donation by Mittal to Labour led to Blair writing a letter to his Romanian counterpart endorsing the sale of the country's state steel industry to the tycoon.

That dispute centred on a gift of 125,000 pounds made by Mittal to Labour's 2001 general election fund. Mittal also donated two million pounds to Labour in July 2005.

"Mr Mittal has been a committed supporter to the Labour Party for many years. We are grateful to everyone that contributes to the party and greatly appreciate this very generous donation," said Labour chairwoman Hazel Blears.