ArcelorMittal looking at new sites for India steel project
04 Nov 2009
Global steel major ArcelorMittal is looking to relocate its two planned steel projects in India amidst growing uncertainty over land acquisition at the proposed sites.
ArcelorMittal had proposed to build two steel plants with capacities of around 12 million tonnes each in the states of Jharkand and Orissa. The group had projected investments to the tune of $20 billion for the two projects.
"We are looking at opportunities in India. We may look at alternative sites. It could be within the states," Vijay Bhatnagar, chief executive of ArcelorMittal's Indian operations, said at a conference.
"While we appreciate the problems in the states, we are unhappy with the progress," he said.
The CEO's statement comes amidst reports that the Karnataka government is ready to offer ArcelorMittal an alternative site.
The eastern states of Jharkhand, Orissa and Chhattisgarh, however, have an attraction for investors in that the two together hold 70 per cent of the country's coal reserves and 55 per cent of its iron ore.
Global steelmakers, including ArcelorMittal and South Korea's Posco are vying for a spot in the region despite disputes and delays in allocating mining licences.
ArcelorMittal, which secured a permit to mine iron ore in Jharkhand last year, is vying with domestic steel majors, including Steel Authority of India, for mining rights to the Chiria iron ore reserves in the state.