Vedanta seeks JV partner for steel foray
17 Jul 2009
Vedanta Resources Plc, the UK-based but India-focused mining group promoted by NRI tycoon Anil Agarwal, is planning to venture into steel manufacturing with a partner in a joint venture format. It sees its role in the JV as that of the iron ore supplier.
We will be a supplier of iron ore from Sesa Goa," company chairman Agarwal told a news agency. Without elaborating on the time-frame or the proposed investment in the venture, he said the company is waiting for the right opportunity to foray into steel making.
Sesa Goa, controlled by Vedanta, has begun talks with Japanese and European steel companies for building a steel plant in India, according to the Mint newspaper which was quoting Agarwal.
"We are iron ore producers and not specialists in making steel. We will partner with somebody who can provide us technology and management," Agarwal said.
The London-listed Vedanta is Agarwal's holding company and owns controlling stakes in mining firm Sterlite Industries, Sesa Goa, Vedanta Aluminium and Konkona Copper Mines in Zambia.
Sesa Goa has capacity to produce 50 million tonnes of iron ore annually and could feed a 10-million tonne steel plant, Agarwal told the paper.
In August 2004, the company had announced a plan to build a five-million-tonne steel plant with an investment of Rs20,000 crore. But this was put on hold as it started consolidating its position in base metal.
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