Aditya Birla group eyes overseas mines

The Aditya Birla Group (ABG) is eyeing ferrous and non-ferrous mines in African and South American countries.

The Mumbai-based group has zeroed in on mines in South Africa, Chile, Peru and Indonesia for acquisitions.

“As the demand for metals and minerals is high in local markets, we are looking to buy mines abroad. Currently, both ferrous and non-ferrous mines in South Africa, Chile, Peru and Indonesia are under consideration,” said Ravi Kastia, Aditya Birla Group’s global head of mining and international trading, during a mining summit organised by the Confederation of Indian Industry (CII) in Kolkata on Wednesday.

“These countries have a comparatively better policy framework, which makes them attractive for miners like us. Moreover, operation prices there are less comparing to other parts of the world,” he added.

Ferrous mines of the group would come under Essel Mining & Industries, while non-ferrous ones are under Hindalco.

Majority of the group’s revenue comes from its overseas operations. It has a presence in about 26 countries abroad— including Australia, Bahrain, Bangladesh, Brazil, Canada, China, Egypt, Indonesia and Germany.

ABG firm Hindalco had acquired the Canadian company Novelis for $6 billion in 2007, making the combined entity the world's largest rolled-aluminium producer.

Regarding the mining sector in India, Kastia said, “Nearly 72 per cent of the country’s mining industry is handled by public sector undertakings (PSUs). To make the sector more vibrant, we should formulate the new mining policy in such a way that it facilitates the active participation of private companies.”

He also said that time taken in granting new exploration licences should be less and batted for effective land acquisition laws.

“Once an open policy is in place, our country will become one of the hot spots in the global mining map. Simultaneously, more exploration is necessary to meet the demand here,” Kastia added.