Ispat, Bhushan out of iron ore mine race

Ispat Industries Limited and Bhusan steel are out of race to get the iron ore mines in Kawardha district of Chhattisgarh.

“The tender for allotting the iron ore mines in Kawardha was opened in which Ispat Industries and Bhusan steel were disqualified. The other six companies that participated in the bid are in the race,” Chairman of Chhattisgarh Mineral Development Corporation (CMDC) Gourishankar Agrawal told Business Standard.

The officials are collecting points from the proposals submitted by the companies and will allot the marks before finalising the company that will get the mines, Agrawal said, adding that the process will be completed in a day or two.

ArcelorMittal, the world's largest steel making company, is also in the race. The other companies include Tata Steel, Sarda Mineral, Adhunik Steel, Balaji Steel and Jindal South West.

Under the bid conditions, the company getting the mines will have to form a Joint Venture (JV) company with CMDC besides setting up plant in Kawardha or neighbouring district.

CMDC has got the lease of Kawardha iron-ore mines, which has an estimate reserve of 100 million ton.

The corporation has invited proposals from the companies to form JV for mining and value addition to the mineral within the state.

About 30 companies had earlier shown interest to get the iron ore assets in Kawardha.

Only eight companies submitted the proposals.

ArcelorMittal as the steel major will have to come up with a plant in the state if it bags the deal.