The world’s largest steel-maker, ArcelorMittal, is in talks with financial services and infrastructure major Indiabulls for setting up a mining joint venture (JV) in India.
“It is essentially a mining joint venture to meet our coal requirement for power projects,” Indiabulls CEO Gagan Banga said.
He said iron ore mining can also be looked into, but insisted the joint venture would not foray into steel production.
While Indiabulls did not give details like the location of the proposed mining project or the investment involved, sources said it could be in Rajasthan.
“There are indications of iron ore in Rajasthan. The JV would seek to locate and develop it,” a source said.
State-owned SAIL has already discovered iron ore deposits in the desert state.
According to LNM India Internet Ventures, LN Mittal holds some stake in Indiabulls Power that is developing various projects in the country.
The JV could be between an ArcelorMittal subsidiary or an investment arm of the Mittal family and an Indiabulls Group firm, sources said. An ArcelorMittal spokesperson did not revert to queries.
With its mega Rs 1,00,000- crore steel project in Orissa and Jharkhand stuck in delays and controversies over land acquisition, the group is scouting for investment in other destinations as well.
It has signed an agreement with the Karnataka government for a Rs 30,000 crore steel project.
ArcelorMittal last year, had entered into a co-promoter agreement with Uttam Galva to produce steel.
