Essar Steel to commence production from Minnesota plant by 2011

Essar Steel Minnesota LLC, part of Essar Steel Holdings, is likely to commence production from its proposed $1.1 billion (approx Rs 5,504.4 crore) steel plant Phase I at Minnesota, USA, by 2011. Besides iron ore mining and production, the proposed project is expected to have a four million tpa direct reduced iron unit and steel making facilities while in Phase II a slab-making unit will be developed. The iron pellets and other allied products from its Minnesota unit are expected to cater to the needs of its Algoma plant in the USA.

Tata Motors to manufacture trucks in Myanmar

Tata Motors is planning to set up a heavy truck manufacturing facility in Myanmar with a production capacity of 1,500 units per annum. The plant is being set up following an agreement between Government of India and Government of Myanmar. The two governments approached Tata Motors to set up the plant. The proposed project will be entirely funded by the Government of India and it is likely to sanction $20 million (approx Rs 100 crore) credit line which will be used to set up an assembly plant and a component- manufacturing factory in Myanmar.

Ashok Minda Group to set up unit in Uzbekistan

Ashok Minda Group, a Delhi-based auto component maker, is likely to invest $25 million (approx Rs 125 crore) to set up a new manufacturing facility in Uzbekistan. The planned investment is likely to be funded through internal accruals. The Phase I production from the proposed plant is expected to begin from July 2009. The raw material for the newly planned facility is expected to be shipped from India to control input costs as key inputs like steel and plastic cost much less in India compared to overseas locations. The proposed facility in Uzbekistan is also likely to expand the European manufacturing operations for the group which already has one production facility in the Czech Republic and three plants in Germany. Currently, the group supplies instrument cluster for cars and vehicle security system from its Indian plants to Russia and CIS markets.

LN Mittal may walk out of Trinidad JV with ONGC

The LN Mittal group is mulling to back out of the oil and gas exploration projects it was developing jointly with ONGC in Trinidad & Tobago and Kazakhstan, due to the global meltdown and fall in oil prices. Both companies were to develop two projects - NCMA-2 block in Trinidad and Tobago and Satpayev block in Kazakhstan - under their JV ONGC Mittal Energy. According to sources, a thorough analysis of the Trinidad project has been carried out in view of the impact of the current economic situation on the oil and gas industry, and the Mittal group does not believe that it is wise to continue with the project at this time.

Tata Steel to re-bid for Liberian iron ore project

Tata Steel will now be able to re-bid for a $1.5 billion iron ore project in Liberia as the Government of Liberia has lifted the disqualification imposed on it. Last year Liberia had disqualified the company from participating in a bidding round for the Western Cluster deposit as it had cited "acts of violation" in an earlier bidding process which it said may have been compromised by "external influence or impropriety".

The bidding round is scheduled to close on 15 May and according to sources,9-10 firms have shown an interest so far.

Mittal may sell half stake of Kazakhstan block to OVL

Lakshmi N Mittal, the owner of ArcelorMittal, plans to sell half of his stake in a Kazakhstan oil field to ONGC Videsh Ltd (OVL) to compensate for the severe financial constraint affecting his planned expansion in energy sector. Mittal Investment Sarl, the holding firm of ArcelorMittal, had in April 2007 acquired 25 per cent stake in Caspian Investments Resources (CIR) from Lukoil, Russia, for $980 million (approx Rs 4,802 crore). Mittal is now keen on selling 12.5 per cent stake to OVL. Mittal will use these proceeds to fund his share of the $400 million expenditure planned in the Satpayev block in the highly prospective North Caspian Sea.

OVL gets Government nod for investment in Satpayev block

The Union Government has given clearance to ONGC Videsh Ltd's (OVL) investment of about $400 million (approx Rs 2,000 crore) for development of the Satpayev oil field in Kazakhstan. An empowered committee of Secretaries has recommended to the government for approval of OVL and its partner Lakshmi N Mittal for picking up a 25 per cent stake in Satpayev oil block. ONGC-Mittal Energy, the equal JV of OVL and Mittal Investment, will pay $26 million (approx Rs 130 crore) signing amount for the stake in the oil field. KazMunaiGas will be the operator of the field and hold the remaining 75 per cent stake. The 1,582 sq km Satpayev block, situated in the Pre- Caspian Basin of Kazakhstan, holds 1.75 billion barrels of inplace oil reserves.

NTPC keen to bid for Siddhirganj project

NTPC plans to bid for the 300 MW Siddhirganj gas-based power project, southeast of Dhaka, as the Bangladesh government is looking for an operation & management (O&M) operator. An O&M contract is easier to implement than building a power project, and NTPC expects its presence in Bangladesh to make it eligible to bid in other markets, including developed countries. The company plans to execute this contract through its consultancy services division. The World Bank is likely to extend $350 million (approx Rs 1,739.5 crore) loan to the Siddhirganj project.