Steel ministry asks RINL to look for mines overseas

The government has asked steel major Rashtriya Ispat Nigam Ltd (RINL) to constitute a core group of experts to scout for iron ore mines and coal properties overseas for acquisition.

In a letter to the state-run company last week, the steel ministry has asked it to “work on a mission mode” to acquire the mines, which would ensure raw material security for the company in view of its ambitious expansion plans.

“We have directed RINL to form a core group of experts and professionals, which would exclusively assist the company in identifying iron ore and coking coal assets abroad for acquisition,” a senior steel ministry official said. The group would explore the mines keeping in view the company’s raw materials requirement for at least 40 years, he added.

When contacted, RINL Chairman and Managing Director P K Bishnoi neither confirmed the development nor denied it. “We already have a corporate strategic management group to look for raw materials. We would further strengthen and make the expedite things,” he said.

RINL, which manufactures an array of long steel products mainly used in construction, plans to scale up its production capacity to 6.3 million tonnes by 2010 with an investment of about Rs 13,000 crore. At present, its approved production capacity is over 3 million tonnes. The company has also undertaken a Rs 5,000-crore modernisation plan to add value to its products portfolio.