Mittal Steel Co., the world's largest steelmaker, may sign by November an agreement with India's Orissa state to build a $8.7 billion plant in the country, a minister said.
Mittal will build a 12 million ton-a-year plant in Orissa, Chairman Lakshmi Mittal said July 7 in Bhubaneswar. The project will compete with Posco, the world's fourth-biggest steelmaker, which has planned a $12 billion plant in the eastern state.
``The memorandum of understanding will be signed after the company buys 3,000 acres of land'' it has sought from the state government, Orissa's Minister for Steel and Mines Padmanabha Behara said today in New Delhi.
Mittal Steel and Posco plan to spend $21 billion over the next seven years in India to tap rising demand and the world's fifth-largest iron-ore reserves. Mittal expects steel demand in India and China to grow three times faster than in Europe and North America over 10 years. Iron ore prices have climbed 19 percent this year after soaring a record 71.5 percent last year.
The project will be built in two stages of 6 million tons each, Mittal said in July. The steelmaker may use the Paradeep or the Gopalpur port being built by the Orissa government, and may decide on the project site by end of the month, Behara said.
Mittal expects India's steel demand to grow an average 7.3 percent a year over the 10-year period and China's to expand 6.9 percent. Europe's steel demand will only average 1.9 percent a year, North America's 1.8 percent a year and Japan at 1 percent a year, Mittal said in a presentation on March 9.
Mittal in October announced a $9 billion, 10 million-ton-a year plant in Jharkhand, which neighbors Orissa. India's states Jharkhand, Orissa and Chattisgarh account for 70 percent of the nation's coal reserves and 55 percent of its iron ore, according to McKinsey & Co.
Mittal will build a 12 million ton-a-year plant in Orissa, Chairman Lakshmi Mittal said July 7 in Bhubaneswar. The project will compete with Posco, the world's fourth-biggest steelmaker, which has planned a $12 billion plant in the eastern state.
``The memorandum of understanding will be signed after the company buys 3,000 acres of land'' it has sought from the state government, Orissa's Minister for Steel and Mines Padmanabha Behara said today in New Delhi.
Mittal Steel and Posco plan to spend $21 billion over the next seven years in India to tap rising demand and the world's fifth-largest iron-ore reserves. Mittal expects steel demand in India and China to grow three times faster than in Europe and North America over 10 years. Iron ore prices have climbed 19 percent this year after soaring a record 71.5 percent last year.
The project will be built in two stages of 6 million tons each, Mittal said in July. The steelmaker may use the Paradeep or the Gopalpur port being built by the Orissa government, and may decide on the project site by end of the month, Behara said.
Mittal expects India's steel demand to grow an average 7.3 percent a year over the 10-year period and China's to expand 6.9 percent. Europe's steel demand will only average 1.9 percent a year, North America's 1.8 percent a year and Japan at 1 percent a year, Mittal said in a presentation on March 9.
Mittal in October announced a $9 billion, 10 million-ton-a year plant in Jharkhand, which neighbors Orissa. India's states Jharkhand, Orissa and Chattisgarh account for 70 percent of the nation's coal reserves and 55 percent of its iron ore, according to McKinsey & Co.