Arcelor Mittal plans two steel plants in India

NEW DELHI (MarketWatch) -- The world's largest steelmaker Arcelor Mittal (MT : arcelor mittal ny reg sh cl a
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12:07am 07/27/2007

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MT61.35, -3.50, -5.4%) Wednesday said it plans to build two steel plants in India each with a capacity of 10 million metric tons a year, in what could turn out to be the single largest foreign direct investment in the country with a likely investment of over $20 billion.
Arcelor Mittal plans to build the steel plants in the resource-rich eastern states of Jharkhand and Orissa, where rival Posco (005490.SE : 005490.SE
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12:00am 12/30/1899

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005490.SE0.00, 0.00, 0.0%) is set to build a 12 million metric ton a year steel plant by 2016 for $12 billion, so far India's single largest foreign investment.
"We have appointed consultants. Once the detailed project reports are ready, we will decide on the capacity. Today, we want infrastructure for 10 million tons each in both the states," Chief Executive Officer L. N. Mittal told reporters after a meeting with India's Petroleum & Natural Gas Minister Murli Deora.
Arcelor Mittal's plan underscores the race among global steel giants to build plants in India to grab a slice of the booming local demand and to secure the supply of key inputs such as iron ore.
Arcelor Mittal, which had earlier said it plans to invest around $10 billion to build a 12 million metric ton per year steel plant either in Jharkhand or Orissa, is waiting for approval from the state governments.
"We are meeting the chief minister of Jharkhand today. We will also meet the chief minister of Orissa to seek their cooperation for the (proposed) steel mills," Mittal said.
Mittal said his company wants "the same support (for the proposed mills) as given to Posco for infrastructure building."
The Orissa state government has given land to the South Korean firm for its steel project.
Local firm Tata Steel Ltd. (500470.BY : 500470.BY
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12:00am 12/30/1899

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500470.BY0.00, 0.00, 0.0%) and state-run Steel Authority of India (500113.BY : 500113.BY
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12:00am 12/30/1899

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500113.BY0.00, 0.00, 0.0%) have also announced plans to expand capacity.
SAIL, which controls the highly productive Chiria iron ore mines in Jharkhand, has said it aims to double its production to 24 million metric tons by fiscal year 2010 and to 60 million tons by 2020.
Other steel firms have also sought rights to the Chiria mines as a precondition to setting up new projects.
"Everybody likes to have the Chiria mines and we are no different," Mittal said.
Asked if he was confident of getting mining rights in India, Mittal said: "Definitely, there's an assurance from the government of India that all new steel plants will be assured of (iron) ore."
Mittal also said his company is seeking coal mines of at least 600 million tons reserves each for both the proposed steel mills.
"We are confident that we will get support from both Jharkhand and Orissa governments on mines," Mittal said.