ArcelorMittal’s await mining rights
Confusion over ArcelorMittal’s investment in various steel projects in India continues even as the company chief executive LN Mittal on Wednesday reaffirmed his firm commitment.
By TNN |
NEW DELHI/BHUBANESWAR: Confusion over ArcelorMittal’s investment in various steel projects in India continues even as the company chief executive LN Mittal on Wednesday reaffirmed his firm commitment to setting up two 12-million-tonne plants, one in Jharkhand and the other in Orissa. The world’s largest steel maker, which is looking at an early clearance for iron ore and coal mining leases to start work on the projects, is yet to receive firm commitments either from the Centre or from the state governments.
In Jharkhand, ArcelorMittal has signed an MoU with the state government for a 12-million-tonne steel plant, but is yet to receive any assurance on grant of mining rights in Chiria region, which was offered to it earlier. At a meeting between Mr Mittal and steel minister Ram Vilas Paswan on Wednesday, the differences over the mining rights in Chiria came to the fore. While the steel ministry wants the entire two-billion-tonne reserves of Chiria for SAIL, ArcelorMittal is keen to have some share in the block. “We are keen to get mining rights in Chiria,” said Mr Mittal after his meeting with the minister. While welcoming ArcelorMittal’s investment proposal Mr Paswan said the ministry would have no objection if Jharkhand granted mining rights to Mittal after meeting SAIL’s requirements.
Meanwhile, LN Mittal will meet chief minister Naveen Patnaik and top officials in Bhubaneswar on Thursday to give final shape to the proposed 12-million-tonne steel plant in Orissa’s Keonjhar district. It will be his second visit to the state for the purpose just a year after he announced to set up the steel plant. This will also be the first-ever venture taken up by Arcelor-Mittal anywhere in the world.
This, despite the government showing keenness to support the projects that would bring in over Rs 80,000 crore in investments.
“We are not in confrontation with the Mittals over mining lease in Jharkhand. Chiria and Gua region has about three billion tonnes of iron ore reserve. SAIL has asked for two billion tonnes. The remaining one billion tonne could well be given to other companies including ArcelorMittal,” he said.
In Jharkhand, ArcelorMittal has signed an MoU with the state government for a 12-million-tonne steel plant, but is yet to receive any assurance on grant of mining rights in Chiria region, which was offered to it earlier. At a meeting between Mr Mittal and steel minister Ram Vilas Paswan on Wednesday, the differences over the mining rights in Chiria came to the fore. While the steel ministry wants the entire two-billion-tonne reserves of Chiria for SAIL, ArcelorMittal is keen to have some share in the block. “We are keen to get mining rights in Chiria,” said Mr Mittal after his meeting with the minister. While welcoming ArcelorMittal’s investment proposal Mr Paswan said the ministry would have no objection if Jharkhand granted mining rights to Mittal after meeting SAIL’s requirements.
Meanwhile, LN Mittal will meet chief minister Naveen Patnaik and top officials in Bhubaneswar on Thursday to give final shape to the proposed 12-million-tonne steel plant in Orissa’s Keonjhar district. It will be his second visit to the state for the purpose just a year after he announced to set up the steel plant. This will also be the first-ever venture taken up by Arcelor-Mittal anywhere in the world.
This, despite the government showing keenness to support the projects that would bring in over Rs 80,000 crore in investments.
“We are not in confrontation with the Mittals over mining lease in Jharkhand. Chiria and Gua region has about three billion tonnes of iron ore reserve. SAIL has asked for two billion tonnes. The remaining one billion tonne could well be given to other companies including ArcelorMittal,” he said.
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