JSW Steel plans to invest approximately $500 million over the next three years to raise capacity of the iron ore mines it has acquired in Chile. The company also plans to commence commercial operations in the coking coal blocks it has acquired in Mozambique, by the end of this year.
The JSW Vice-Chairman and Managing Director, Sajjan Jindal said “We have already paid $250 million to acquire 70 per cent stake in the iron ore mine in Chile. Over the next three years we will be raising the capacity of the mines to produce 20 million tonnes annually. For this we need to invest another $500 million.”
The company had acquired eight concessions in the mines located at Atacama in Chile through its Netherlands-based wholly-owned subsidiary for exploration and exploitation of iron ore deposits. “The move is aimed to build up a natural hedge against rising iron ore prices in the international market,” said Mr Jindal. The iron ore mines in Chile have an estimated deposit in excess of 500 million tonnes. “We would export the ore from Chile to China and source iron ore from the domestic market at international prices,” he said.
The company has also acquired coking coal blocks in Mozambique. Currently the company is carrying out exploration in the coking coal blocks in Mozambique. The company expects to begin commercial operations and start shipping of coal from these mines by the end of this year.
Source: Sify
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