AMNS India acquires power, iron ore assets

ArcelorMittal and Nippon Steel India (AMNS India), formerly known as Essar Steel, has acquired a power plant and an iron ore slurry pipeline, securing control of infrastructure that is critical to the smooth functioning of its steel and pellet plants in the country.

The joint-venture firm acquired the 500MW Bhander power plant in the west coast town of Hazira from Indian real estate investment management firm Edelweiss Asset Reconstruction. The gas-fired power plant exclusively supplies electricity to AMNS India's 8.5mn t/yr steel mill in Hazira.

It also acquired a 253km iron ore slurry pipeline that runs from AMNS India's iron ore beneficiation plant in Dabuna to its 6mn t/yr pellet plant in Paradip, both in the eastern state of Odisha. The acquisition was made from the creditors of the slurry pipeline project and approved by the bankruptcy court of Odisha.

Luxembourg-based steel producer ArcelorMittal and Japanese producer Nippon Steel acquired Essar Steel in a bankruptcy auction for $6bn last year and renamed it AMNS India. The acquisition included the 8.5mn t/yr steel mill and 14mn t/yr of pellet-making capacity on the east coast but did not include the power plant and slurry pipeline.

AMNS India has also acquired the Thakurani iron ore mines in Odisha with an estimated 179mn t of reserves in the latest round of iron ore auctions.

AMNS India has secured its power and commodity supply chain as it seeks to significantly expand its production capacity, said chief executive Dilip Oomen. The company did not disclose the financial details of its acquisitions.

By Prasenjit Bhattacharya

source: Argus Media