| Ispat Industries’ promoter Pramod Mittal-owned Global Steel Holdings Limited has signed up mining leases for iron ore and coal reserves in Brazil, Colombia and Mozambique.
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| A GSHL spokesman confirmed the development to PTI saying it has signed multiple iron ore leases with Brazil and for thermal and coking coal exploratory blocks with Colombia and Mozambique.
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| While the spokesman refused to confirm the quantum of iron ore reserves in Brazil saying that it is substantial, informed sources said it could be 500 to 750 million tonnes.
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| The spokesman said it may take 12 to 18 months to complete exploratory works in Brazil after which they will decide on beginning exploratory activity.
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| In Colombia and Mozambique, the total coal reserves are estimated to be around 100 to 110 million tonnes of medium to high-grade coking and non-coking coal.
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| The Mozambique project is near to Arcelormittal, Tata Steel and CVRD coal projects in Tete region on the African nation. GSHL has bagged a coal mining lease of around 30,000 hectares in that country as compared with ArcelorMittal’s 45,000 hectares and Tata’s 25,000 hectares.
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| GSHL’s subsidiary Ispat Industries, which operates a 3 million tonne steel plant in India, may join hands with their parents and local partners by floating Special Purpose Vehicles (SPVs) in each of these nations.
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| Ispat officials, however, did not wish to comment on the development. Ispat Industries does not have any captive mining resources in India and such a move may benefit the company in the longer term.
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| Informed sources said that Ispat may pick up around 30-40 per cent of equity in these SPVs for its assured captive resources. Ispat is currently planing to expand capacity at Dolvi in Maharashtra to 5 million tonnes per annum and is looking at greenfield ventures in Jharkhand, other states and closer to captive mining resources, sources said.
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| GSHL, which operates steel plants in Philippines, Bulgaria and Nigeria, is increasingly on the hunt for captive natural resources for steel-making and associated business.
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| Most Indian steel companies have intensified their search for raw materials overseas to meet their future production and capacity expansion plans.
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| Chinese steel companies too are doing the same as they are the biggest buyer of global iron ore and other minerals. These companies are expanding their steel capacities at a vigorous pace. |
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