Monday, the media reported that BHP Billiton, the world's largest mining company, has evinced interest in entering India through a joint venture with Mumbai-based Ashapura Minechem for alumina refining project in Orissa with an investment of Rs. 2,500 crores.
As per the agreement, the Australian giant will pick up 51% in the joint venture project, while the remaining 49% will be held by Ashapura. The two partners would invest Rs. 800 crores toward equity participation and the remaining 1,700 crores will be mobilized through debt.
However, the signing of the joint venture agreement will take some more time, as the approval from Government of India is still awaited, the report added.
This will be Ashapura Minechem's second foreign joint venture. In March, the company signed an equal venture with Chinese firm Qingtongxia to set up an alumina project in Kutch.
The Managing Director, Ashapura Minechem, Chetan Shah, declined to disclose the identify of his partner for the project. He added that government clearance would take another three months and the project would be commissioned by the end of next year.
Though BHP has a present in 25 countries and has been doing business in India for over 30 years, it does not have an equity interest in any domestic project. Its involvement with the Indian market began with technical tie-ups with the country's largest steel company, Steel Authority of India. Two years ago, it launched a development foundation in India.
Recently, BHP had shown interest in acquiring Sesa GAO, the country's second largest iron ore exporter, when its Japanese parent Mutsui put on the block. It was later acquired by Anil Agarwal-controlled Vedanta Resources.
About BHP
BHP Billiton is the world's largest mining company. It was formed through the 2001 merger of the Broken Hill Proprietary Company, an Australian company, and Billiton, a British company with a South African background. The two together form a dual-listed company.
About Ashapura Minechem
Ashapura Minechem Ltd belongs to Ashapura Group. The group's principal activity is production of bulk minerals for industrial consumption. Its plant is located in Kutch and Bhavnagar in Gujarat. The group exports to over 30 countries in Middle East, Latin America, Europe, Egypt, Japan and South East Asia and Australia.
The company clocked a net profit of Rs. 108 crores on total income of Rs. 904 crores for the fiscal year ended March 31, 2007.
豫公网安备41010502003434号