Indian state-run steel producer Steel Authority of India Limited (SAIL) will invest an estimated $662 million in the current fiscal year to expand capacity through “sustenance and de-bottlenecking projects”, a company statement said on Monday, October 2.
The company said that the investment is part of the planned $13.25 billion investment by 2030-31 to expand installed capacities of its steel mill to an aggregate 35 million mt per year, from 20.6 million mt, through such sustenance and debottlenecking projects.
The steel major is also seeking to double its capacity at Benga coal mine, Mozambique, from the existing 2 million mt to 4 million mt, through debt. Capital exploration and sourcing capital is always a strategic decision for a company, so ICVL (International Coal Ventures Pvt. Ltd) will be looking for capital as SAIL finalizes its plans, the company stated.
Benga coal mine is owned by ICVL, a SAIL joint venture with Rashtriya Ispat Nigam Ltd, NMDC Ltd, Coal India Ltd and NTPC Ltd for acquiring overseas coal mines and other assets.