It?s official now. Tata Steel is bidding for the Indian iron ore assets of Stemcor, one of Britain’s largest independent steel trading companies.
Speaking to select mediapersons in Jamshedpur on Saturday evening after inaugurating the Tagore Archive built by The Tagore Society, Tata Steel managing director HM Nerurkar said: ?Yes, we will make our bid; we are interested.? However, when asked about the time limit for the bidding, Nerurkar said he was ?not aware?.
Around a dozen local and global companies, including Essar Steel, JSW and Vale, are said to be in the fray for Stemcor?s India assets, estimated to be valued at around $800 million.
Stemcor India?s assets include a majority ownership in an iron ore mine, a pellet plant and a 230-km slurry pipeline connecting the iron mines with a pellet factory in Orissa.
Among Britain?s largest private unlisted companies, Stemcor is said to have controlling stakes in Indian iron ore producer Aryan Mining & Trading, Brahmani River Pellets and a 10% equity, plus trading rights in Mideast Integrated Steel.
Global slowdown in the steel sector had earlier in May resulted in Stemcor defaulting on its around $1 billion loans, prompting the firm to look for selling some of its assets, including that in India.
Asked about the progress of the company?s three-mtpa first phase of its six-mtpa greenfield Kalinganagar project in Orissa, Nerurkar said construction of the plant, scheduled to be ready by around mid-2014, was ?in full swing?. He, however, said there was ?no progress? in the company getting allotted iron ore mines by the Orissa government, vital to feed the plant.