Indian iron ore miners to set up 20 million tonnes steel capacity in 5 years
June 20, 2008
June 20th (Steel Guru) – BS reported that Indian iron ore miners are planning to add 20 million tonnes of steel capacity within 5 years at an investment of about INR 80,000 crore.
Mr Rahul N Baldota president of Federation of Indian Mineral Industries said that “We envisage adding 15 million tonnes to 20 million tonnes of steel capacity in India in 5 years with an estimated investment of INR 80,000 crore.”
Among the leading iron ore mining firms that plan to set up steel units include MSPL, Rungta Mines, MEL, BMM Ispat and Brahmi Steel. About 100 sponge iron makers too are in the line for adding addition capacity.
While MSPL and Rungta Mines intend to set up 5 million tonnes capacity each steel project, BMM Ispat and Brahmi Steel’s proposed capacity would be 3 million tonnes each. The sponge iron producers are expected to add about 2 million tonnes steel capacity to their existing 3 million tonnes.
This comes at a time when the mining industry is fighting against the imposition of 15% ad valorem duty on export of iron ore, which is likely to hit the revenues of merchant miners by an estimated INR 8,000 crore.