NMDC, the state-owned miner is looking to acquire a coal mine in the US for building steel plants in Chhattisgarh and Karnataka. It is reported that the company is in talks with the promoters of midsized coking coal mines in Pittsburg and Alabama to do due diligence part.
The company is keen to secure coal for its captive needs as it gets ready to build a steel plant in Chhattisgarh and another in Karnataka through a joint venture with Russia's Severstal. For the Karnataka plant, NMDC had inked a pact with Russia's leading steel maker OJSC Severstal in December last year to jointly set up a steel plant with an initial capacity of 2 million tons per annum, expandable to 5 million tons per annum later at an estimated cost of Rs 25,000 crore.
The Chhattisgarh plant, which is the first steel venture of the company with 3 million tons per annum capacity, being constructed at a cost of Rs 15,500 crore, is expected to be operational by 2014, while the constructions work of the proposed 2 million tons per annum steel plant in Karnataka is expected to begin in 2012.
The company is also in talks with Tata Steel to ink an equal joint venture for setting up a 2 million tons per annum steel plant at Bastar in Chhattisgarh.
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