Mittal loses $34.5 billion in the slump; exits non-core ventures

25 April 2009

Hit by the global recession NRI entrepreneur Lakshmi N Mittal is expected to have lost over £23.5 billion ($34.55 billion) and is reportedly exiting some of the non-core joint ventures and scaling down investment in some of the core projects.

The steel czar has lost about 23.5 billion pounds in the last one year alone, The Daily Telegraph newspaper reported, quoting the 'Sunday Times Rich List', which is to be published tomorrow.

Mittal, the richest man in the UK, has seen his wealth plunging to 9.5 billion pounds from 33 billion pounds last year.

Reports said Mittal is exiting some of the oil properties it has purchased jointly with India's Oil and Natural Gas Corporation (ONGC) in Kazakhstan to tide over the severe financial crisis following the current econimic slowdown. (See: Mittals may pull out of JV with ONGC). 

The government of Kazakhstan had allotted a 25 per cent stake in Satpayev block to ONGC Mittal Energy Ltd (OMEL) - the joint venture company of ONGC and  Mittal Investments Sarl (MIS), Mittal's holding company - for $400 million.

MIS is in discussions with ONGC to sell its stake in the venture. This will result in ONGC investing an additional $200 million against its earlier share of $204 million in the Satpayev exploration block..