India’s Sail eyes SA for 3mt steel plant

[] — Steel Authority of India (Sail) would build four steel plants, one of which would be in South Africa, with a total $12bn investment, its chairperson said on Monday.

The state-run company was also looking for a strategic investor for its proposed plants in Indonesia, Oman, Mongolia and South Africa, which would produce three million tonnes of steel each, C.S. Verma told reporters

“Funding of $12bn will be met through 70% to 80% of debt and the rest 20% to 30% through equity,” Verma said.

Last week, the Indian government put off a planned share sale in Sail to the next fiscal year that begins in April, citing unfavourable market conditions.

Verma said on Monday projects may take three years to start up once agreed.

“We are talking to the government of the countries where we plan to set up steel plants and it will take about three years to start the plants from the date of signing of (memorandum of understanding) with these governments,” he added.

Sail is part of the International Coal Ventures Ltd consortium which has bid for a Mongolian coal mine and is looking to buy overseas coal assets in countries such as Australia, Indonesia and the United States.