Ispat to mine iron ore and coal in Latin America and Africa

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Kolkata, Aug 28 (UNI) Steel major Ispat Industries Ltd will go for mining of iron ore in Brazil and coal in Columbia and Mozambique through joint ventures, Chairman Pramod Mittal today said.

'' We are going for mining of iron ore and coal in these places to meet our requirements of raw materials. There is a reserve of 300 to 500 million ton in the Brazil mine, while the Columbian mine has an estimated reserve of 60 to 70 million ton, '' he told reporters on the sidelines of the company's annual general meeting.

He said Ispat would have a share of around 20 to 30 per cent in both mines.

Mr Mittal said the company had planned to invest Rs 3,200 crore over the next two years for setting up a 110 MW power plant, a two-million ton pellet plant, a one-million ton coke oven plant, direct reduced iron unit enhancement and capacity expansion of the existing plant at Dovi in Maharashtra.

Ispat was also increasing the capacity of its existing hot rolled coil plant from three million ton to 3.6 million ton with an additional blast furnace with an annual capacity of 1.25 million ton.

The Chairman said the company had tied up with ONGC to source gas from Bombay High and meet 30 per cent of its requirement.

The company reported a 350 per cent jump in net profit at Rs Rs 35 crore in 2007-08 as compared to Rs ten crore in 2006-07.

UNI KDG SJC RN1806

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