Foreign coal mines: VSP to rope in global consultants

Visakhapatnam, April 4 (UNI) The Visakhaptnam Steel Plant (VSP) is in the process of appointing an internationally reputed financial firm as its consultant to explore ways to participate in global bidding for coking coal mines abroad.

Disclosing this to newspersons, VSP Chairman and Managing Director Y Siva Sagar Rao said ''ours being the only steel plant in the country sans captive mines for the iron ore and coking coal, we are facing a lot of difficulties in coping up with constantly increasing prices of raw materials.

''Hence we decided to take part in the global bidding for coking coal mines in countries like Australia and the financial consultant will advise us the best suitable offer.'' He said efforts are on for striking joint venture with foreign coking coal firms to ensure the smooth supply of the raw material at a time when the work on the expansion project of the plant had already begun, he said.

The plant hopes to double its productivity within the first phase of expansion from the current level of 3.2 million tonne of steel to 6.4 million within a period of 36 months.

The CMD also hinted a revision in steel price in near future.''The way the prices of the raw material are increasing, it will be difficult for us to cope and the price hike is the only way out,'' he added.

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