Jindal Stainless Ltd. of India announced in 5 years ago the project to construct a new plant in Vishakhapatnam of Orissa State for production of ferro-chrome (with its final phase to produce 150,000 tons / year) but the wall for this project is how to secure chrome ore as raw material and the project has faced a difficulty. However, the materialization of this project is supposed to have taken a step forward.
The reason is that the following two points have been cleared. Namely, (1) Jindal Stainless will be able to acquire two chrome mines in the next 2 - 3 months and (2) Jindal Stainless has routed to procure chrome ore from Orissa Mining Corporation (OMC = the mining company owned by Orissa State).
As regards chrome ore as raw material for production of ferro-chrome, in 5 years ago, Jindal Stainless expected to obtain new allocation for chrome ore and signed on MOU (Memorandum of Understanding) with the Government of Orissa State. However, Jindal Stainless was not successful in acquisition of new chrome mines and it was said that the Government of Orissa State had failed in the matter to allocate chrome mines for Jindal Stainless.
However, according to the recent arrangements by the Government of Orissa State, the composition, which Jindal Stainless is able to purchase chrome ore at market prices from OMC, has been set up and, consequently, the matter of raw material has taken a step forward, In order to secure chrome ore as raw material for production of ferro-chrome, Jindal Stainless once worked on chrome resources located in West Asian region but this target to import chrome ore from overseas sources has a large probability to be withdrawn.
Jindal Stainless said that the Company is in a position to prepare the amount of I.Re.70 - 80 billion to be required to invest in the first and second phases of this project. Jindal Stainless has intended to take over directly chrome mines but also has another possibility to acquire only 30 - 50% of shares of chrome mines.
For a reference, Jindal Stainless has already acquired 7 - 8 hectares of chrome mining area for the existing plant, producing ferro-chrome, in Vishakhapatnam of Orissa State but this chrome mining area is still not enough for Jindal Stainless. |
