UPDATE: ArcelorMittal Investments Focused On Existing Mining Projects In Brazil, Liberia, Canada
29 Aprile 2012 - 1:12PM
Dow Jones News
ArcelerMittal (MT, MT.FR, MT.AE), the world's largest steel
producer, is focusing its investments in Canada, Brazil and Liberia
while India, where it has seen little traction in three
high-profile steel projects, doesn't figure high on its investment
destinations.
"Our investments are currently focused on expanding our existing
iron ore mines and some expansion of steel capacity in Canada,
Brazil and Liberia," Chairman Lakshmi Mittal told reporters on
Sunday.
"We consume and buy a lot of iron ore, so I am looking at areas
where we can expand our mining operations at a low cost and in a
way that adds value to our business. So we have major investments
in Canada and continue to invest in Brazil and Liberia," he
added.
He said while India remains a high priority for business as a
major emerging country, it's low on the list of countries where
it's investing currently.
"Capital is scarce and in India for our [existing] projects,
process of [regulatory] approvals is still going on," Mittal
added.
Mittal had announced setting up two steel plants in eastern
India six years ago, while in 2010 it announced plans to set up
another steel plant in southern India.
These projects have yet to move forward as it faces problems
seen by several industrial projects in India: difficulty in
acquiring land due to regulatory issues, objections by some
landowners, the lengthy process for getting environmental
clearances and access to water and mining leases.
"I feel bad, I feel a bit concerned," Mittal said about the
three steel projects in India not taking off yet. "But, there's no
way I can ignore India and I am not giving up on these
projects."
Turning to Indian economy, he said, "The India story is
definitely not over. The country is growing continuously, there's
momentum. Annual growth rate of 7%-to-7.5% is quite high and envy
for the rest of the world."
The recent downgrade in India's investment outlook to negative
from stable by Standard & Poor's, high inflation and fiscal
deficit and inability to push through reforms such as allowing
foreign investment in multi-brand retail outlets has hurt investor
sentiment domestically and overseas.
Mittal said the global economic crisis of 2008 has effectively
proved that Indian economy is not decoupled from global trends, and
domestic growth has slowed down over the last year, as the European
crisis has unraveled.
He said ArcelorMittal isn't unduly worried with the slower
demand for steel globally. "Steel is a cyclical sector. But even
now, apparent steel consumption globally is maintaining a 4% annual
growth rate."
-By Prasenjit Bhattacharya, Dow Jones Newswires;
91-11-4356-3358; prasenjit.bhattacharya@dowjones.com
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