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With its Orissa project running into rough weather over environmental clearances, POSCO is keen to avoid an encore with its Karnataka plans. And that’s where Bangalore-based Hothur Ispat comes in. CNBC-TV18’s Vineetha Athrey delves deeper.
POSCO is forging the nuts and bolts for its Rs 32,000 crore steel plant in Karnataka. The south Korean steel maker has entered into a joint venture with Bangalore-based mining company Hothur Ispat, with the latter holding a significant minority in the special purpose vehicle. But Hothur’s involvement in the project will, in no way, be a minor one.
Ravi Ramu, President and CEO of Hothur Ispat, said, “This relationship is a three or four fold one, not singular in any sense of the term. We will invest capital directly into the SPV, also advise POSCO as experts, we know Karnataka very well and have been operating here for nearly 50 years now and also very importantly, we will supply iron ore.”
Hothur’s investment in the SPV will stand at Rs 8,000 crore, that’s 25% of the total project cost. POSCO will bank on this alliance for its iron ore needs, which stand at over 10 million tonne per year, given POSCO’s 6 million tonnes per annum steel target. In addition, POSCO is counting on the local partner for smooth environmental clearances for the project.
“Through this they’ll have a tie up with a local Indian player who knows the lay of the land well and will be a good advisor. It’s important when they embark on a USD 7 billion project as they have good local knowledge and expertise,” added Ramu.
The partnership will work wonders for Hothur Ispat as well.
CNBC-TV18 learns that Hothur Ispat is also in talks with POSCO to supply iron ore to POSCO’s projects outside Karnataka. It is also looking to explore opportunities with other global steel makers, both within India and without.

Source:http://www.moneycontrol.com/news

Batting for a POSCO steel plant in Gadag, Mr BS Yeddyurappa chief minister of Karnataka said that the government will try to persuade farmers to part with their land.

The situation does not warrant the South Korean steelmaker to relocate from Halligudi in Gadag district to anywhere rise in the state.

Mr Yeddyurappa told TOI a that “The government is trying to convince the farmers. The company stays in Gadag. We hope that everything will go well.”

The CM’s statement comes following reports that POSCO in the wake of the farmers’ protests in Gadag is looking at alternative sites to set up its 6 million tonne per annum steel plant in Bagalkot or Bijapur district. The government is exploring the possibility of excluding the objecting villages from the POSCO project and allotting adjoining land.

While an official in the industries department dealing with the project said POSCO prefers setting up a unit in Gadag, large and medium industries minister Murgesh R Nirani said the CM’s decision will be final.

The official said a change of location would be tough; there would be too many formalities. Investments over INR 50 crore are cleared by the State High Level Clearance Committee headed by the chief minister. The committee has to approve even minor amendments if a company wants to change its name, address and location.

Source:http://www.steelguru.com/indian_news

Indian conglomerate Essar Group plans to acquire more coal and iron ore assets in Indonesia, Australia and Africa as it seeks to meet robust demand in India, Bloomberg reported citing Chief Executive Officer Prashant Ruia.

The company is looking at investing overseas to access natural resources, Ruia told Bloomberg TV in an interview at the World Economic Forum on East Asia (KOSDAQ: 900110.KQ – news) in Jakarta.

Essar Group could not immediately be reached for comment.

Essar Group, is controlled by Indian billionaire brothers Shashi and Ravi Ruia, who also run London-listed Essar Energy (Dusseldorf: 11224817.DU – news) and has interests in steel, ports and logistics and telecommunications.

Source:http://uk.finance.yahoo.com/news/Essar-Group-plans-overseas-targetukfocus-88156646.html?x=0