Global Steel buys Balkan coal mine

MUMBAI: The Pramod and Vinod Mittal-led Global Steel Holdings, the international holding company of Ispat Industries, has acquired Ivangrad thermal coal mines in Montenegro for an undisclosed sum. The company plans to invest $1.1 billion to develop the mines and set up a power plant in the Balkan country,

The acquisition is in line with the strategy followed by the Mittal brothers — including the eldest LN Mittal — of buying loss-making and small units across the world and then turning them around. The Ivangrad “brown” coal mines, located 140 km north-east of the capital Podgorica, is estimated to have reserves of 150 million tonnes of thermal coal.

It also has a coal washing and separation plant attached to the mine that can produce sized and washed coal. Global Steel currently manages 14 million tonnes of capacity globally. It plans to invest about $600 million for the rehabilitation of existing mines and development of six new mines and washing facilities besides expanding capacity to 3 mt per annum. The production will partially feed the planned 500 MW power plant. The facility may also feed its 280 MW power plant in Bulgaria.