The Hindu Business Line : SAIL, Mittal open to tie-ups

New Delhi, July 25 In a move that could be indicative of things to come, Steel Authority of India Ltd (SAIL) and Arcelor Mittal, the largest steel maker in the world, are exploring opportunities to synergise capabilities. This may also involve joint research and development (R&D) activities.

Both the companies could also be sharing the Chiria iron ore reserves in Jharkhand.

“We are open to discussions with Arcelor Mittal on technological cooperation and exchange of personnel, as it have sufficient expertise in the areas,” Mr S.K. Roongta, Chairman, SAIL, said on the sidelines of a press conference here.

Endorsing Mr Roongta’s views, Mr L.N. Mittal, Chief Executive of Arcelor Mittal, said, “We have invested a lot in R&D activities and have over a thousand researchers. So we welcome any kind of discussions with SAIL on the issue.”

Mr Roongta added that he was open to any idea and there could be a win-win situation for both the companies. He also recalled a meeting he had with Mr Mittal in London last year.

On a visit to the Capital on Wednesday, Mr Mittal, speaking about the proposed steel plants in Orissa and Jharkhand, said, “We have got the assurance from the respective State Governments on the supplies of iron ore and coal for the both plants and work would begin once we get the necessary mining permits. Each plant would have a capacity of 10 million tonnes.”

The Mittal Group is seeking around 600 million tonnes of reserve for its proposed plant in Jharkhand and a similar amount for the plant in Orissa. According to estimates, Chiria mines have iron ore reserves of around 3 billion tonnes, out of which SAIL says its requirement is 2 billion tonnes. The process of allocation of iron ore from Chiria mines is in court and an out-of-court settlement has not been ruled out.

“We are seeking a total of one billion tonnes of iron ore over 50 years for each of our plants together and I am confident of getting the required clearances. At the moment we are preparing the feasibility report on the ventures for which the proposed investments could be around $18 billion,” he said.

The company has already invested around $50 million in Orissa for preliminary surveys.

Even the Steel Ministry is confident that both the State Governments would expedite the process of allotment of mining lease. “It is a golden opportunity for the Jharkhand Government and it should not let go this opportunity. Since Chiria mines have large iron ore reserves, SAIL and other companies also can get opportunities to mine the area and the Ministry would ask the State Government to speed up the process so that the projects are not delayed,” Mr Ram Vilas Paswan, Union Minister for Steel, Chemicals and Fertilisers, said during a meeting when Mr Mittal called on him.

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