ArcelorMittal Nippon Steel (AMNS) India has acquired the 500MW Bhander Power plant from Edelweiss Asset Reconstruction Company. ArcelorMittal India (AMIPL) was also selected as preferred bidder for Thakurani iron ore mine in Odisha.
The Hazira-based power plant will be captive to AMNS India’s steelworks in the same location. It will help the steelmaker increase its self-sufficiency in power supply.
Meanwhile, Thakurani block in the district of Keonjhar, with estimated reserves of 179.26 million tonnes, is expected to make a valuable contribution to AMNS India’s long-term raw material requirements. Once the licence is awarded, AMIPL will proceed to seek requisite clearances, as well as mine development and production agreements, before commencing mining operations.
The acquisitions are “…in line with an intent to secure a robust captive power and commodity supply chain as we continue to make strong strides in our production and operational performance,” AMNS India chief executive Dilip Oommen says in a note seen by Kallanish.
“Efforts to become increasingly self-reliant, in this case through the procurement of a key energy source in Gujarat and an iron ore rich reserve in Odisha, form part of AMNS India’s medium to long term strategy to significantly grow our production capacity in India,” he adds.
ArcelorMittal and Nippon Steel completed the joint takeover of Essar Steel last November, thereafter renaming it AMNS India. The new owners plan to complete by 2022 the doubling of the Paradeep iron ore pelletising plant’s capacity to 12 million tonnes/year.
