Tata Steel, JSW and others want Stemcor’s iron ore for its steel mills – how does this break down by the numbers?
A report in the Business Standard said Stemcor, which had reported a turnover of over £5 billion in 2012, has in its iron ore assets a majority stake in Aryan Mining and Trading Corporation, which has 100 million tons of iron ore reserves with the license to mine 3 million tons per year in Odisha.
Not only that, the company also has a 10 percent stake in Mideast Integrated Steel, whose mines in Odisha have considerable iron ore capacity. Also, Stemcor’s wholly owned subsidiary, Brahmani River Pellets Ltd, has a 4-million-ton-per-year beneficiation plant at Barbil, Odisha, and a pellet plant complex at Jajpur in Odisha.
Even though Tata Steel has captive iron ore supplies that are enough to meet its present requirement, it is expected that if the company can lay its hands on the Stemcor iron ore, it could use it for the 6-million-ton plant it was planning to set up at Kalinganagar in Odisha. In that sense, this would be a strategic investment for Tata.
Adani, on the other hand, has reportedly approached the Stemcor management in London and evinced interest, though officially the company will not give a comment.
In a fresh development, a report in The Hindustan Times said the Stemcor India employees, backed by minority partner industrialist Sanjay Saraf, had decided to throw their hat in the bidding process.
According to the report, this motley group was in talks with some domestic private steelmakers for part of the funds in lieu of a portion of the stake.
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