PTI reported that Vedanta Resources will foray into steel business in a JV format in which its role would be that of iron ore supplier.
Mr Anil Agarwal chairman of Vedanta told PTI that "We will enter the steel making business in a joint venture. We will be a supplier of iron ore from Sesa Goa.”
Mr Agarwalwithout elaborating on the time frame or the proposed investment in the venture, he said that the company is waiting for the right opportunity to foray into steel making business.
Vedanta''s steel ambitions comes a few years after it an signed an MoU with the Orissa government to set up a steel mill in the state. In August 2004, the company had announced a plan to build a 5 million tonne steel plant with an investment of INR 20,000 crore. But it was put on the back burner as it started consolidating its position in base metal.
Sesa Goa owns 180.5 million tonnes of iron ore reserve. Besides, the Goa based miner acquired Dempo group’s 70 million tonnes of mineable iron ore reserve. This has given the company a clear advantage for getting into steel making.
(Sourced from PTI
Thursday, July 16, 2009
Vedanta to enter steel biz in JV format
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