POSCO and BHP may establish a steel plant in India

POSCO and BHP may establish a steel plant in India

South Korean steel producer POSCO and Australian mining giant BHP Billiton are reportedly planning to establish a steel plant in India. As previously reported by SteelOrbis, the two companies visited Orissa government to discuss the project. The project covers establishment of a 3 million ton-a-year steel plant with an investment of Rupees 390 billion ($8.4 billion). The capacity of the plant will be increased to 10 million tons later on. Moreover, a port and an iron ore mine with a capacity of 1.2 million tons will be built under the scope of the project. POSCO officials stated that a non-binding agreement may be reached by the end of 2004. POSCO had previously announced that it was planning to add 10 million ton capacity outside South Korea. POSCO stated that the company is looking to establish steel plants in India or Brazil as they have abundant raw material sources.