New Delhi, India — MININGREVIEW.COM — 22 February 2011 – The Steel Authority of India (SAIL)) is to build four steel plants “’ one of which will be in South Africa “’ in a total investment of US$12 billion investment, according to its chairperson.
The state-run company was also looking for a strategic investor for its proposed plants in South Africa, Indonesia, Oman, and Mongolia, which would produce 3Mt of steel each, chairperson C.S. Verma told reporters here.
“Funding of US$12 billion will be met through 70% to 80% of debt and the remaining 20% to 30% through equity," Verma said.
Last week, the Indian government put off a planned share sale in SAIL to the next fiscal year that begins in April, citing unfavourable market conditions.
Verma said the projects may take three years to start up once agreed.
“We are talking to the governments of the countries where we plan to set up steel plants, and it will take about three years to start the plants from the date of signing of memoranda of understanding with these governments,” he added.
SAIL is part of the International Coal Ventures Limited consortium which has bid for a Mongolian coal mine and is looking to buy overseas coal assets in countries such as South Africa, Australia, Indonesia and the United States.