POSCO may buy iron ore to feed steel plant in India – Report
Bloomberg reported that POSCO may be forced to buy iron ore to feed its USD 12 billion steel plant in India should the government fail to award it a license to mine ore.
Mr SK Mahapatra GM at POSCO India said that “There is a possibility of iron ore requirement coming ahead of our captive mining operations. In this situation, the state government has agreed to make the iron ore required available.”
It may be noted that land disputes and delays in allocating mining licenses have stopped POSCO from proceeding with potentially the biggest overseas investment in India. It is yet to begin building the 12 million tonnes steel plant in Orissa state. Work was scheduled to start in April 2007.
Initially, POSCO will build a 4 million tonnes steel plant and set up a 400 MW power plant.