ArcelorMittal Nippon Steel Participating In Auction Of Iron Ore Mines In Odisha
A worker climbs a staircase as hot steel bars pass along the continuous casting production line at the ArcelorMittal metals plant in Kryvyi Rih, Ukraine. (Photographer: Vincent Mundy/Bloomberg)

ArcelorMittal Nippon Steel Participating In Auction Of Iron Ore Mines In Odisha


ArcelorMittal Nippon Steel India Ltd. is participating in the ongoing auctions of iron ore mines in Odisha to securitise its iron ore requirements, its chief executive officer has said.

"We are participating in ongoing auctions of mines in Odisha," Dilip Oommen told PTI on the sidelines of an industry event in New Delhi on Wednesday.

ArcelorMittal Nippon Steel India is a 60:40 joint venture of Lakshmi Niwas Mittal-owned ArcelorMittal SA and Japan-based Nippon Steel Corp. Ltd. The company recently completed the acquisition of Essar Steel's Hazira plant via the insolvency process.

When asked about the number of mines his company was bidding for in Odisha, Oommen said "it is more of iron ore, less of coal". He also replied in the affirmative when asked about whether the company would be interested in more iron ore and coal mines, which would be put on the block in the future.

Speaking on the importance of the opportunity, Oommen said any steel company has to securitise its sources of raw materials and ArcelorMittal Nippon Steel India is no different. So, it is also participating in the auction process to securitise its iron requirements.

AMNS India buys iron ore fines in Kirandul in Chhattisgarh, where its beneficiation is carried out, and transported via slurry pipelines to Visakhapatnam. The iron ore fines are then converted into pellets and transported to the Hazira plant in Gujarat.

Similarly, in Odisha, iron ore fines are bought from private miners at Dabuna, which are beneficiated and sent through slurry pipelines to Paradip for conversion into pellets and shipped to Hazira.

Also read: Arcelor’s $5.9 Billion Purchase to Aid India Bad Loan Clean Up

Linkage of iron ore mines will help the company reduce input costs significantly.

While sharing his outlook for India’s steel sector, Oommen said the auto industry—a major consumer of the alloy—has started doing better.

"There has been a slow down of thing coming in the way is uncertainty of the auction process in Odisha. The iron ore prices have (also) gone up Rs 750-800 per tonne and continues to go up," he said.

Also Read: Iron Ore Supply Disruption Looms For India’s Steelmakers

Iron ore is a key raw material for steel making and any revision in its prices directly impacts the prices of steel.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.