Tata Steel plans to commission the first phase of its proposed six-million-tonne per annum (mtpa) Kalinganagar facility by the end of FY’13.
The company, currently the seventh-largest steel-maker in the world, had earlier said it will develop the facility in two phases of 3-mtpa capacity each.
“Our aim is the last quarter of 2013. That is the plan and work has already started at the site. I think we should be able to meet the target,” the Tata Steel Managing Director, Mr H.M. Nerurkar, told reporters on the sidelines of a conference organised here by the Indian Chamber of Commerce.
Mr Nerurkar said the required funds for the project have “more or less” been tied up. Tata Steel, which raised Rs 3,477 crore recently through a follow-on public offer, said a part of the FPO proceeds would be invested in the project.
About Rio Tinto’s bid for Australian mining firm Riversdale, where Tata Steel is the largest shareholder, the Managing Director said Tata Steel would like to stay in the company.
“We are the sustainable shareholder there, so we would like to remain there (in Riversdale). We are interested in coal, not in all these current things that are happening,” he said.
Riversdale has around 13 billion tonnes of coking and thermal coal reserves at its Benga and Zambeze acreage in Mozambique and Tata Steel has a 24.4 per cent stake in the projects.
Regarding steel prices, Mr Nerurkar said that it was going to remain volatile for the time being. “Steel prices are going to be volatile as what is the coal and iron ore prices in a particular quarter, that determine the prices,” he said.
About the ongoing controversy over the ‘go’ and ‘no-go’ in coal mining areas, he said: “I don’t think this concept of ‘go’ and ‘no-go’ can be implemented in a very rigid manner. I think in most of the mining areas, you will have issues of environment.”
“If you say ‘no-go’ and stop, you will not have resources. Resources are becoming scarce and we must use them in a manner in which environment is also protected. So we need to find a different solution,” he said.