VSP Mulls JVs Abroad To Tide Over Coal Deficiency

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Hyderabad, Sept 10: To maintain uninterrupted coal supplies for its steel production, the Visakhapatnam Steel Plant (VSP) has proposed to enter joint ventures with overseas coal companies. When asked about the development, VSP chairman and managing director BK Panda confirmed that the company is looking for coal companies overseas. However, he said that a decision is yet to be taken on the issue. “We do not intend to take over the coal mines but we will participate in the equity of the companies,” he said.

However, according to highly-placed company sources, VSP has already exploring opportunities to join as an equity partner in a major Canada-based coalmine. “We have received offers from Canada, the company is yet to take a clear view on the investment,” the sources told FE. As of now, VSP is importing over 10% of its coal requirements from Australia.

In fact of late, the company is facing serious problems with coal supplies from Australian mines due to various reasons including labour trouble there. “We receive about five ship loads of 45,000 tonne from Australia,” the company official said. “Recently we have received a message that there is some problem in one of the coalmines, which may result in some variance in our supply schedules,” the sources added.

So, VSP is now preparing contingency plans to tide over the possible problem, which may occur in the next two to three months. “We prefer to participate in the management of the coal mine, which would give an additional edge in ensuring continuous supplies,” the official pointed out.