The Hindu Business Line : ArcelorMittal eyes alternative sites for plants

ArcelorMittal has also been involved in a tussle with SAIL over the mining leases for the Chiria iron ore region. The Chiria mines have close to two billion tonnes of high-grade iron ore reserves.

Our Bureau

New Delhi, Nov.4 The world’s largest steel maker ArcelorMittal is looking at alternative sites to set up its steel plants in India after its proposed Orissa and Jharkhand plants got delayed. Land acquisition problems led to delays spanning four years to start the two projects worth $20 billion.

Speaking to reporters on the sidelines of the CII Steel Summit 2009 on Wednesday, Mr Vijay Bhatnagar, Chief Executive Officer of ArcelorMittal’s India and China operations, said, “Four years is a very long time to set up a steel plant. While we appreciate the problems in the State we are very unhappy with the progress.”

“We are constantly looking at opportunities all around India either for alternative sites, or even an additional plant,” he added. Mr Bhatnagar declined, however, to comment on the timeframe for shifting to another site.

ArcelorMittal has also been involved in a tussle with SAIL over the mining leases for the Chiria iron ore region. “Steel producers are in discussions with the Jharkhand Government over Chiria mines. We are also party to such discussions,” said Mr 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.

The company had planned to set up two steel plants in Jharkhand and Orissa with a production capacity of 12 million tonnes each.

Towards the end of last month, the ArcelorMittal chairman, Mr L.N. Mittal, told the press that the company won’t limit its plants to the two eastern States.

Earlier in the day, Mr Sai Prathap Annawagari, Minister of State for Steel, said the Karnataka Government is willing to offer sites for the steel companies looking for new sites. “The Karnataka government is willing to offer an alternative corridor if ArcelorMittal looks to change locations,” said the Minister on the sidelines of the summit.

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