GIHL had won a 10-year concession for the 1.3 million tonne Ajaokuta Steel and Nigerian Iron Ore Mining in 2005, after acquiring control of Delta Steel in 2004. However, Global Steel Holdings (formerly GIHL) in a statement today said GSHL/Global Infrastructure Nigeria has not been receiving the promised support from the Federal Government of Nigeria (FGN) as contemplated under the share purchase agreement.
Global Steel owns 70 per cent stakes in iron ore mine in Brazil and two coal mines in Columbia and Mozambique. The company is setting up three special purpose vehicles for isolating financial and regulatory risks. Ispat will purchase the stakes in these SPVs, which are held by Global Steel. The iron ore mine has an estimated reserve of 500 million tonne while the coal mines hold reserves of 120 million tonne.
Global Steel Holdings, the holding company which controls the steel and associated businesses of the Ispat Group, has acquired two coal blocks in Mozambique. According to sources, the investment in the blocks would be in the region of Rs 460 crore (Rs 4.6 billion).
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