Ispat floats company for mining iron ore in Brazil

KOLKATA: Pramod Mittal and Vinod Mittal-promoted Ispat Industries has taken steps to start iron ore mining in Brazil. It has floated a separate company, Erebus, to spearhead the Brazil venture. Ispat Industries and group company, Global Steel Holdings, have picked up 40% and 30% stakes, respectively, in Erebus. The remaining 30% will be held by a local Brazilian firm.

���We���ve done prospecting work near the proposed site and are due to commence preliminary exploration soon. This will be followed by detailed exploration and a feasibility study and mine development. We want to start mining operations over the next 24 months,��� PK Mittal, chairman of Ispat Industries said.

The iron ore reserves in Brazil are estimated to be in the region of 300-500 mt, he added. Mr Mittal was speaking after the company���s 23rd AGM here on Thursday.

In India, Ispat has been allotted iron ore mines in Jharkhand and coal mines in Madhya Pradesh.