China's state-owned Sinosteel Corporation is in talks
for setting up a $200-million integrated iron ore and
steel project in India and is planning to raise $500 million
by listing its mining assets overseas, company sources
and partners could spend at least $200 million on an integrated
iron ore and steel project in India, company president
Huang Tianwen said.
needs steel for infrastructure, ports, roads, railways,
etc. They are 10-15 years behind China," he said.
members of the consortium, which could include Chinese
steel giant Baosteel Group, are in talks to build a greenfield
steel plant with capacity for 3- to 5-million tonnes a
year of long products, including construction steel, Huang
said the consortium is looking at several locations for
the project, including Orissa state.
interests had blocked Chinese investments in Indian iron
ore mines, Huang said. Because of Indian restrictions
on exporting high-grade iron ore, the Chinese firms are
now pursuing a combined steel and ore investment, he added.
success of the talks depends on the attitude of the Indian
government," Huang said, adding that, for the moment
there is no bar on iron ore exports. India's steel industry
cannot use all the country's iron ore and the government
is not likely to bar all iron ore exports, he pointed
company, meanwhile, plans to list its assets, including
those in South Africa, Australia and China, in the second
half of 2007, probably in Hong Kong, its chief accountant
Liu Andong told reporters in Beijing.
is in talks with UBS, Goldman Sachs, Morgan Stanley and
China International Capital Corporation as potential underwriters.
Liu said that over the next three to five years, Sinosteel
intends to reorganise into five business units and list
each of them.