India considers Australian coal mines

Production and Markets

Steel Authority of India Ltd, the nation’s biggest state-run producer, said it is considering buying coking coal mines in Australia, Indonesia and Mozambique with an Indian government joint venture.

"We are looking at several opportunities but I can’t discuss the names," SK Roongta, chairman of the New Delhi-based company, said in an interview in Beijing today. "I can’t set a timeline but we would like it to happen at the earliest.

Steel Authority, one of five companies in the International Coal Ventures Private Ltd venture, is boosting steel output to meet domestic demand that will continue to grow, Mr Roongta said.
Steel demand in India may rise 8.9% in 2009 and 12.1% in 2010, the World Steel Association said on Monday.

"India will continue to grow for years because we are a developing country," Mr Roongta said. "I don’t see, in the near future, steel demand leveling off."

International Coal Ventures Private also includes Coal India Ltd, Rashtriya Ispat Nigam Ltd, National Mineral Development Corp and NTPC Ltd, according to the venture’s website. The venture has US$750 million in capital and US$1.5 billion in borrowings, and plans to spend US$2.2 billion to investments, Mr Roongta said.

Steel Authority is in talks with the Indian government to be allotted the entire Chiria iron ore mine, Mr Roongta also said.
There were no other companies involved in the mine, he said.

The company’s crude steel output will be 14Mt in the year ending June 30 2010, increasing to 15Mt the following year, he said.

(Bloomberg, Oct 13)