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

Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Giu 2024 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Lug 2023 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal