Japanese co plans to invest $2 bn in steel, mining projects
Adding momentum to the race among foreign companies to invest in the steel and mining sectors, Tokyo Boeki Development of Japan has proposed to invest $2 billion in these sectors.
NEW DELHI: Adding momentum to the race among foreign companies to invest in the steel and mining sectors, Tokyo Boeki Development of Japan has proposed to invest $2 billion in these sectors.
The Japanese company has written to Prime Minister Manmohan Singh, detailing its investment plans for the sectors. Tokyo Boeki is in the process of tying up with IFC and Japan Bank for International Co-operation (JBIC) for a JV in India.
The company has zeroed in on Karnataka for a greenfield steel plant. It is in talks with companies like Bharat Mines and Minerals, Mineral Enterprises and VSL Mining Company for JVs. Tokyo Boeki has indicated the possibility of setting up a steel plant in West Bengal where it is in talks with Essel Mining & Industries. The investment plans were explained to senior officials accompanying the PM during his recent visit to Japan.
The Japanese company’s proposed plant in Karnataka is expected to have a capacity of 500,000 metric tonnes per year. The company’s investment will be made in stages, government sources said. Tokyo Boeki said it will bring in ITmk3 technology, developed by Kobe Steel, to India.
ITmk3 (Ironmaking Technology Mark Three) is a process that produces a high quality iron nugget product that contains essentially pure iron and carbon. If the Japanese company’s plans materialise, India will be among the select few countries in the world to deploy this technology.
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Tokyo Boeki is involved in several businesses ranging from coal mining to lifestyle support services. It has operations in the US, Canada, Eastern Europe and Asia. The company has been supplying to high profile steel buyers like BHP and Ford in the international market. It set up a steel plant in Qatar which is one of the first full-scale JV steel plant in the Gulf region.The Japanese company is yet to apply formally to the Foreign Investment Promotion Board (FIPB) for its proposed investment. After the prime minister’s visit to Japan, a large number of queries have been sent to the department of industrial policy & promotion, indicating keen interest of Japanese companies to invest here.
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