Global Steel to invest 1.1 bln Euro in new deal

 
Global Steel Holdings, the offshore investment arm of the Pramod-Vinod Mittal controlled Ispat Industries, plans to invest 1.1 billion Euro in Montenegro. The investment follows Global Steel’s recent acquisition of coal mines in Ivangrad, which have reserves of 150 million tonnes, in Montenegro. Global Steel will invest 600 million Euro for rehabilitation of mines and 500 million Euro for a 500 mw power plant, Mnnews reported. The mines in Ivangrad have a coal washing and separation plant that can produce sized and washed coal. There is a coal washing and separation plant attached to the mines that can produce sized and washed coal. The company will rehabilitate the existing mines and will also develop six new mines and washing facilities. Post investment, it will have a capacity of three million tonnes of coal per annum. This is Global Steel’s fifth venture in the Balkans. It has recently acquired the Magnohrom Refractory in Serbia, Llamkos Steel in Kosovo, Kremikovtzi Steel in Bulgaria and the coke oven company of GIKIL in Bosnia. Global Steel also operates thermal power plants in Bulgaria and Nigeria. Global’s recent acquisition of Llamkos was embroiled in a court case. However, it managed to get control of Llamkos through legal recourse. Global Steel Holdings acquired Kremikovtzi in April 2005. Global Steel operates and manages about 14 million tonnes of steelmaking capacity and associated businesses in mining, energy and logistics in various parts of the world.