Mumbai: Global Steel Holdings, majority stakeholder in Ispat Industries Ltd, has signed mining lease agreements for iron ore and coal in Brazil, Mozambique and Colombia, reports quoting company sources said.
Global Steel has received the lease agreements and exploration is expected to take 12 to 18 months, the reports said.
The company said it has signed lease agreement in Brazil for iron ore mines, where reserves are estimated to be more than 0.5 billion tonnes.
In Mozambique and Colombia, Global Steel has signed mining leases for coal. These mining leases have reserves estimated at 70 million tonnes and about 60 million tonnes, respectively, the company said.
The company is setting up a special purpose vehicle for the three mines, in which Ispat will have a stake.
Ispat shares rose to a high of Rs40.55 and closed with a gain of 4.2 per cent at Rs38.70 on the Bombay Stock Exchange (BSE).
Steel producers, mainly from India and China are now major players in the $700 billion global steel industry.
Global steel sector, once dominated by Russian, US, Japanese and European steel makers, is shifting base to Asia. Steel production in Asia (excluding Japan) increased from 40 million tonnes in 1975 to 635 million tonnes in 2007.