Mittals acquire coal licence in Mozambique
PK Mittal & Vinod Mittal-controlled Global Steel acquires a prospecting licence for the blocks and has also been allocated 30K hectare land in the Tete area, reports Suman Layak.business Updated: Feb 06, 2008 23:28 IST
PK Mittal and Vinod Mittal-controlled Global Steel Holdings has acquired two coal blocks in Mozambique in an area where elder brother LN Mittal-controlled ArcelorMittal, Tata Steel and Brazilian mining company CVRD are also present.
Global Steel, which is the parent of Ispat Industries, has a capacity of 13.8 million tonne globally. Its Indian operations have often struggled due to its lack of backward linkages to raw material sources like iron ore and coal and the group is working hard to change that.
A Global Steel spokesperson confirmed that the company has acquired a prospecting licence for the blocks and has also been allocated 30,000 hectare of land in the Tete area of Mozambique.
Sources said that the two blocks have a proven resource of 70 million tonne of coking coal. The company is expected to invest $115 million (Rs 460 crore) for developing underground coal mines and develop links to the nearest sea port 600 km away.
The PK Mittal and Vinod Mittal combine had announced that it has acquired oil producing blocks in Georgia just a couple of weeks back. These acquisitions now make the group a player in both the mining and oil exploration sectors with assets in coal, iron ore and oil.