Rashtriya Ispat eyes Canadian ore mine

Not just private sector steel companies, public sector steel major, Rashtriya Ispat Nigam Ltd (RINL), has evinced interest in a 2.4 billion ton Canadian iron ore deposit.

Addressing the media, P K Bishnoi, chairman and managing director, RINL said, a Canadian company had floated an expression of interest (EOI) and RINL participated. The deposit has ore with more than 63 per cent iron content.

The ownership would be with the Canadian company while RINL, if it succeeded , would hold the licence and pay royal to the foreign company.

RINL has long-term arrangements with NMDC for iron ore. Bishnoi said, "If we had captive iron ore mines then our profits would have been higher by Rs 1,500 crore."

RINL's applications for mines in Jharkhand, Orissa and Chhattisgarh have been rejected. Bishnoi said, RINL had asked for a review of its applications.

The plant currently has a hot metal capacity of 4.15 million tonnes and had set a target of achieving 16 million tonnes by 2020. By 2008-09, hot metal capacity would be enhanced to 6.50 million tonnes. Bishnoi said, if the overseas mines development required huge investments, then RINL could rope in a partner.

RINL is also on the list of public sector steel majors to be considered for dilution of stake through initial public offering (IPO).

RINL was under the list of companies, where the government was to consider 25 per cent stake dilution. However, Bishnoi said, the proposal was facing opposition from the unions.