Tata may build steel unit in South Africa

NEW DELHI – India’s Tata Steel Ltd, the world’s sixth-largest steelmaker, is looking at building a steel plant in South Africa, a senior company source said yesday.

“Talks are on,” the official, who did not want to be identified, told Reuters. “It could be around five million tonnes if they give us coal and iron ore mines.”He did not elaborate on the investment plan.Tata Steel, which bought Anglo-Dutch Corus for US$12,9 billion this year, has said it was setting up a ferro chrome plant in South Africa with an investment of 4 billion rupees.In August, the company said it would spend US$85,7 million to buy a 35 per cent stake in a Mozambique coal project run by Australia’s Riversdale Mining Ltd, which would provide coking coal for its plants in Europe and India.Tata Steel, which currently imports 1,3 million tonnes or 30 per cent of its annual coal requirement, sees that rising to two million tonnes in future, the official said.”Our aim is to be about 50 per cent self-sufficient.”Nampa-Reuters”It could be around five million tonnes if they give us coal and iron ore mines.”He did not elaborate on the investment plan.Tata Steel, which bought Anglo-Dutch Corus for US$12,9 billion this year, has said it was setting up a ferro chrome plant in South Africa with an investment of 4 billion rupees.In August, the company said it would spend US$85,7 million to buy a 35 per cent stake in a Mozambique coal project run by Australia’s Riversdale Mining Ltd, which would provide coking coal for its plants in Europe and India.Tata Steel, which currently imports 1,3 million tonnes or 30 per cent of its annual coal requirement, sees that rising to two million tonnes in future, the official said.”Our aim is to be about 50 per cent self-sufficient.”Nampa-Reuters