Financial Chronicle reported that Essar Steel is planning to acquire coking coal mines in Africa or Australia to help the company that has few captive sources of crucial raw materials integrate backward to protect its profit margins.
Mr Dilip Oommen MD and CEO of Essar Steel told Financial Chronicle that “Given the uncertainty on mining, it is important to secure our raw material supply. Like other players we are also scouting for coking coal mines. We hope to acquire a coking coal mine within the next year or two. Among other locations we are mainly focusing in Africa.”
Mr Oommen however, declined to state the budget earmarked for the same instead adding that “It would depend on what assets are available for acquisition.”
Sourced from Financial Chronicle
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