September 07,
Indiabulls Real Estate and ArcelorMittal will form a joint venture for mining Coal and Iron ore. The move is aimed at owning captive mines for their own businesses. Indiabulls has power plants, while ArcelorMittal is the world’s largest steelmaker.
“The joint venture will look at all mining opportunities that will be offered in India, while for captive purposes, coal and Iron ore are the two minerals we will be interested in,” said, Indiabulls executive director, Gagan Banga.
The move to form a joint mining venture by ArcelorMittal is to establish its presence in the Indian steel market which is considered the world’s second-largest after China.
ArcelorMittal, which alone accounts for 8% of global steel production, had announced plans to set up steel projects in Jharkhand in 2005 and Orissa in 2006. However, not much progress has been made owing to delay in Iron ore linkages or in acquiring land.
It has also signed a MoU with the Karnataka government in June for a 30,000-crore steel project, which is yet to take off.
Whereas Indiabulls is developing the Amravati and Nasik thermal power projects in Maharashtra. It is also building the 1320-MW Bhaiyathan thermal power project in Chhattisgarh.
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