ArcelorMittal gets coal blocks for phase 1

ArcelorMittal, the world's largest steel company, today announced that it has been allocated coal blocks for the first phase of its Indian greenfield projects in Jharkhand and Orissa.

ArcelorMittal plans to build integrated steel plants in Jharkhand and Orissa each with a total annual capacity of 12 million tonne at a combined investment of approximately $20 billion.

The projects would be developed in two phases of 6 million tonne each. Each plant will also have captive power units for which the coal block allocations will be utilised.

The government has allocated ArcelorMittal the Sereghara block in Jharkhand and Rampia & Dip-side Rampia block in Orissa on sharing basis.

In Jharkhand, ArcelorMittal has been allocated 83.33 million tonne of steam coal of the 150 million tonne allocated. In Orissa, its share is 84.16 million tonne of a total of 645.24 million tonne.

M P Singh, VP (mining, mergers & acquisitions), ArcelorMittal, said: "This is a good beginning towards the realisation of our Jharkhand and Orissa projects, which will both bring considerable economic benefits to India and the states of Jharkhand and Orissa in particular. This announcement is a positive sign that the central government and the state governments of Jharkhand and Orissa are supportive of ArcelorMittal and our commitment to these projects."

The company is discussing the iron ore issue with the Orissa government and in Jharkhand, a mine has identified though it was not adequate to cover its requirements. The iron requirement is 600 million tonne over a 30-year period in both the projects.