Mumbai, India — MININGREVIEW.COM — 19 November 2009 – India’s third largest coal producer “’ JSW Steel Limited “’ is considering purchasing coal mines overseas, and may buy one in South Africa.
Managing director Sajjan Jindal said in an interview with Bloomberg News here that the company might spend US$500 million (R3.7 billion) buying coal mines overseas to secure supplies for its local expansion. It was seeking mines in countries including South Africa and Australia, and planned to source half of its coal overseas, he added.
Bloomberg reports that Indian steelmakers are expanding as local demand is expected to grow by about 10% in the second half of this financial year. It says JSW Steel is looking at new locations after failing to find coking coal at its exploration project in Mozambique.
“The company plans to raise capacity by more than 33% to 10 million metric tonnes at its Vijayanagar plant in South India by 2011, as demand from customers increases,” Jindal said. “Later, JSW aims to build a mill in West Bengal state with an initial 3 million tonne capacity,” he added.