Investment by Indian Steel cos; Australia upbeat

New Delhi, June 28: Australia is keen on supporting the proposal from Indian steel companies to acquire equity stake in coking coal companies in the country and to acquire coking coal properties.

The Australian Federal Minister of Industry, Tourism and Resources Ian McFarlane gave this assurance to the Minister for Steel, Chemicals and Fertilisers Ram Vilas Paswan in Brisbane today.

Mr McFarlane assured the minister of all possible help in fast-tracking these entures of Indian steel companies, which are absolutely critical for India's proposed expansion of steel sector capacity, said a statement.

Despite the worldwide demand for Australian coking coal, Mr McFarlane assured that there was good potential for Indian companies to invest in Australia.

Mr McFarlane also assured Australia's assistance for Indian fertilizer companies to commence operation in Australia when LNG supply becomes available in near future.

Mr Paswan and Mr McFarlane were very optimistic about enhanced economic and commercial cooperation between both countries in the context of India's accelerating economic growth and the Asian commodities and resources boom.

The proposal for Indian PSUs SAIL, RINL, CIL, NMDC and NTPC to jointly acquire interest in coking coal property in Australia has received a fillip with this visit and this proposal has been warmly welcomed by the Australian Government.

Both sides also agreed to explore possibility of sourcing key materials like Nickel, Ferro Manganese and Silico manganese from Australia. During discussions, it was also decided that teams of officials would be constituted to carry forward this dialogue and to concretise the decision taken during the delegation of Mr Paswan to Australia.

Mr Paswan also held talks with Mr Eric Ripper, Deputy Premier of the State of Western Australia at Perth; senior officials and Chambers of Mines and Minerals. The delegation also visited key Australian states like Western Australia, New South Wales, and Queensland which are rich in raw materials required for the steel sector.

The state governments of Australia as well as leading Australian mineral companies such as BHP Biliton and Rio Tinto expressed their keen desire to the minister to invest in the mineral sector in India.

Mr Paswan assured the Australian Government and the companies of requisite assistance within the boundaries of India's investment policies and mineral exploration policy.

Mr Paswan is leading a high level delegation to Australia to ensure supply of strategic raw materials like coking coal, nickel, ferro-manganese and silico-manganese, for meeting India's enhanced steel production requirements in the context of India's ambitious plans to double steel production capacity over the 11th Five Year Plan period.

The delegation includes the Chairman, SAIL S K Roongta, Joint Secretary in the Ministry of Steel Shri George Elias, and senior officials from Rashtriya Ispat Nigam Ltd and National Mineral Development Corporation.

UNI