Mittal Steel seeks LoC from Jharkhand
Close on the heels of Posco threatening to withdraw from Orissa if it was denied captive mines, Mittal Steel has sought a Letter of Comfort from the Jharkhand government assuring it of requisite iron ore for its 12 MT steel plant in the state.
By PTI |
NEW DELHI: Close on the heels of Posco threatening to withdraw from Orissa if it was denied captive mines, Mittal Steel has sought a Letter of Comfort from the Jharkhand government assuring it of requisite iron ore for its 12 MT steel plant in the state.
"We have asked the Jharkhand government to provide us with the Letter of Comfort assuring us of providing iron ore required for our greenfield project in the state within two months, from the Chiria mines after sorting out nitty-gritties with the Centre," Mittal Steel Jharkhand CEO Sanak Mishra told media on Friday.
He made it clear that the world's biggest steel maker was unable to commence its work for the steel mines unless the Arjun Munda government extended the said assurance. "Any delay in providing the Letter of Comfort only adds to further delay in commencing work for the said plant entailing time delays coupled with cost overruns," the CEO said.
Mittal Steel has demanded 600 million metric tonnes of iron ore from the said mines for the first 30 years to meet its operational needs.
State-run steel Authority of India Limited (SAIL) has been allocated a part of the reserve from the Chiria mines and the battle of nerves has intensified among the domestic steel utilities and Mittal Steel for ensuring reserves from other parts of the mines.
Meanwhile, a Tata Steel official told media that the state government has also assured iron ore from the Chiria mines to the company. But it remains to be seen as to how the Jharkhand government would provide iron ore to all these steel giants as the exact amount of ore in the mines was yet to be ascertained.
Mittal Steel has identified six locations in Jharkhand for its 12 million tonne greenfield project and would shortlist one of them within two months. They are Turpa, Govindpur, Muri, Serailkela, Santhal Pargana and North of Ghatsila, Mishra said.
"We have asked the Jharkhand government to provide us with the Letter of Comfort assuring us of providing iron ore required for our greenfield project in the state within two months, from the Chiria mines after sorting out nitty-gritties with the Centre," Mittal Steel Jharkhand CEO Sanak Mishra told media on Friday.
He made it clear that the world's biggest steel maker was unable to commence its work for the steel mines unless the Arjun Munda government extended the said assurance. "Any delay in providing the Letter of Comfort only adds to further delay in commencing work for the said plant entailing time delays coupled with cost overruns," the CEO said.
Mittal Steel has demanded 600 million metric tonnes of iron ore from the said mines for the first 30 years to meet its operational needs.
State-run steel Authority of India Limited (SAIL) has been allocated a part of the reserve from the Chiria mines and the battle of nerves has intensified among the domestic steel utilities and Mittal Steel for ensuring reserves from other parts of the mines.
Meanwhile, a Tata Steel official told media that the state government has also assured iron ore from the Chiria mines to the company. But it remains to be seen as to how the Jharkhand government would provide iron ore to all these steel giants as the exact amount of ore in the mines was yet to be ascertained.
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Mittal Steel has identified six locations in Jharkhand for its 12 million tonne greenfield project and would shortlist one of them within two months. They are Turpa, Govindpur, Muri, Serailkela, Santhal Pargana and North of Ghatsila, Mishra said.
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