Stemcor’s Indian assets worth USD 800 million are likely to go for an auction seeing the excitement in the giant steel players for purchasing those assets. The giants such as Tata Steel, JSW Steel and Jindal Steel and Power Limited are competing against each other to gain the asset for themselves.
Stemcor, a British based company, owns a pellet plant, an iron ore mine and an underground slurry pipeline joining both which are located in Odisha. The company needs to raise funds so as to repay the loans taken from adjoining banks by August-end, hence are selling away their assets. They had earlier approached all Indian steelmakers to buy their assets and after getting a good response from the buyers, Stemcor is now planning to auction the assets to gain more funds.
Stemcor is running as advised by Goldman Sachs, an American multinational investment banking firm. They are therefore planning to sell off their assets as advised by the firm.
Stemcor owned stakes comprises of Aryan Mining and Trading Corporation (AMTC), Mideast Integrated Steel (MISL) and Brahmani River Pellets Ltd (BRPL) which are located in Odisha.
AMTC has a reserve of 100 MnT iron ore and can produce up to 3 MnTPA according to the license norms. MISL is also an iron ore mine with a production of 4 MnTPA. Whereas, BRPL is a 4 MnTPA capacity beneficiation plant in Barbil connected with a pellet plant in Jajpur through a 220 km long underground slurry pipeline.
Stemcor assets will certainly prove to be a boon for its buyer and give them profitable output in their production.