The world's largest steelmaker ArcelorMittal has stated that the detailed project reports (DPR) for its two proposed 12 million-mt-per annum greenfield projects in the Indian states of Orissa and Jharkhand are about to be finalized and that the construction works are expected to be commenced by the end of the current year.
The two projects, which will constitute ArcelorMittal's first steel manufacturing plants in India, will reportedly require investments worth a total of around $20 billion and will be built in two phases of six million mt each.
With regard to the proposed plants, ArcelorMittal has already asked the Indian government to speed up allocation of mines in Orissa to ensure iron ore supplies for the projects. Each plant will require 600 million mt of iron ore; however, the exact location of the mines which the company seeks has not been disclosed.
As previously reported, ArcelorMittal was allocated two coal blocks in Orissa and Jharkhand on a sharing basis at the Sereghara block in Jharkhand and at the Rampia & Dip-side Rampia block in Orissa. The company was allocated 83.33 million mt of steam coal in Jharkhand, whereas it was granted 84.16 million mt in Orissa.
Orissa state, which is estimated to contain 25 percent of India's iron ore reserves, has been attracting many domestic and international steel players in recent years, including Tata Steel, POSCO, Bhushan Steel, Jindal Steel and SAIL.