India-focused resources company Vedanta aims to expand its crude steel capacity to 7mn t/yr from 1.5mn t/yr currently.
Vedanta, which operates iron ore mines in the states of Goa, Karnataka and Jharkhand, ventured into integrated steel making earlier this year after it acquired the bankrupt 1.5mn t/yr Electrosteel in the east Indian state of Jharkhand through a court-monitored auction process.
Vedanta plans to invest $300mn to expand Electrosteel's capacity to 2.5mn t/yr in the next 18-24 months.
The company also plans to invest $3-4bn to add an additional 4.5mn t/yr of greenfield capacity in Jharkhand. Land acquisition has been partially completed for the new plant. No timeline has been set for the investment, with the project currently in planning stage.
Vedanta's key ferrous business — iron ore — has been hit by a ban on iron ore mining in the coastal state of Goa since April this year.
Vedanta was India's largest iron ore exporter before the ban, selling low-grade ores to China. The firm operates an iron ore mine in the southern state of Karnataka, with the output sold domestically.
