ArcelorMittal Nippon Steel Limited (AMNS), the former Essar Steel, a joint venture of global steel giant ArcelorMittal and Japan’s Nippon Steel, is participating in auctions of iron ore mines being conducted by the eastern Indian state of Odisha, a company official said on Wednesday, January 22.
AMNS has to securitize its sources of raw materials and so is participating in the auction of iron ore mines in Odisha, Dilip Oommen, CEO of AMNS, said.
Currently, the erstwhile Essar plant acquired by AMNS does not have captive iron ore mines and sources iron ore fines from the central state of Chhatisgarh and after beneficiation transports it to Vishakhapatnam through a slurry pipeline where it converts it into pellets and ships them to its steel mill at Hazira in the western state of Gujarat.
The Odisha government has issued a notice inviting bids in tenders for 20 iron ore and manganese mines, where current mining leases are slated to expire on March 31, 2020. Technical bidding has started since early January and companies are currently in the process of submitting their bids.
Altogether the Odisha government will have to auction 18 iron ore mines with aggregate estimated reserves of 1.6 billion mt as the mining leases of these mines will expire, while at least five mines have been reserved for captive use by steel mills.