The world's largest independent steel trader London-based Stemcor has announced the completion of its acquisition of Orissa, India-based iron ore and manganese mining company, Aryan Mining and Trading Corporation (AMTC), marking its entry into the manganese business.
The AMTC iron ore mine located at Koira has been developed by Stemcor since it took over the company management in April 2007 and is expected to produce 3 million mt per annum at the 350 hectare site once all required permissions are in place. AMTC primarily supplies the growing steel industry in Orissa and in neighboring states in Eastern India.
Meanwhile, AMTC's manganese mine, located 20 km away at Mahulsukha, is expected to produce up to 20,000 mt per month once the necessary regulatory approvals are received. The main target of the manganese will be ferromanganese and stainless steel producers.
According to Stemcor, India's demand for manganese ore outstrips supply. Looking at the statistics, India produced 2.47 million mt of manganese ore in the year ended March 31, 2008, marking an increase of 18 percent from a year earlier, whereas it imported 500,000-600,000 mt of manganese ore during the same period.
Stemcor considers that domestic demand in India is likely to remain strong as steel production is forecast to double over the next five years.
Commenting on the acquisition, Matthew Stock, Managing Director of Stemcor India and CEO of AMTC, said, "This development is consistent with Stemcor's stated strategy to invest in upstream assets in India and complements our Brahmani River Pellets Ltd beneficiation and pelletization operation, also based in Orissa. Since assuming control in April last year, Stemcor has already increased AMTC's production from less than 100,000 mt per year to more than 200,000 mt per month. Stemcor has a long history of more than 40 years in India and this further investment in the State of Orissa will enable us to grow our iron ore and steel business even further."