ArcelorMittal looking for alternative sites for setting up steel plants
05 Nov 2009
Arcelor Mittal, the world's largest steel maker is considering sites in India beyond those it had proposed in Jharkhand, Orissa and Chhatisgarh, after facing a delay of more than four years in securing land and iron ore mines in Jharkhand and Orissa.
The two large steel projects would have been worth $20 billion.
According to Vijay Kumar Bhatnagar, head of ArcelorMittal's unit in New Delhi, the company was looking at opportunities in India and may look at alternatives sites which could be within the states. He added that while the company appreciated the problems in the states it was unhappy with the progress. He was speaking to reporters on the sidelines of the CII Steel Summit 2009 on Wednesday.
''We are constantly looking at opportunities all around India either for alternative sites, or even an additional plant,'' he said. Bhatnagar declined to comment on the timeframe for shifting to another site.
''Steel producers are in discussions with the Jharkhand government over Chiria mines. We are also a party to such discussions,'' said Bhatnagar. The Chiria mines have close to two billion tonnes of high-grade iron ore reserves. SAIL currently claims ownership of the reserves. While six out of the 10 mining leases in the area are with SAIL, renewal of the other four mining leases is currently under dispute.
According to reports the government of the southern state of Karnataka has shown interest in offering ArcelorMittal an alternative site.