The world's largest steelmaker, Luxembourg-based ArcelorMittal, is reportedly in negotiations with India-based Indiabulls Real Estate to form a joint venture to acquire iron ore and coal assets in India.
According to a report by Indian newspaper Economic Times, the move is aimed at owning captive mines for the two companies' businesses as ArcelorMittal is a steel colossus and Indiabulls Real Estate has plenty of power plants in western, central and northern India.
"The joint venture will look into all mining opportunities that will be offered in India, while, for captive purposes, coal and iron ore are the two minerals we will be interested in," the newspaper quoted Indiabulls executive director Gagan Banga as saying.
ArcelorMittal had also announced plans to set up steel projects in Jharkhand in 2005 and Orissa in 2006, which were delayed due to land acquisition and iron ore linkage problems. In June this year, the steel giant signed an agreement with Karnataka state to spend $6.5 billion to build a 6 million mt steel plant.
ArcelorMittal owns 8.8 percent of Indiabulls Power.