BL reported that Essel Mining and Industries Limited is looking to acquire overseas mining assets during the current economic downturn.
Mr Ravi Kastia MD of Essel Mining said that “The global meltdown in commodity prices has also brought down the mining asset value substantially. We expect such asset prices to rule at low levels for the next 12 months to 18 months and the company is looking forward to grab the opportunity. e will look forward to destinations having low country risks such as Australia and Canada for such acquisitions.”
Mr Kastia said that while the meltdown in spot prices of iron ore has affected the top line during the last 3 weeks, an upward correction in prices was expected.
He said that “Barring the aberrations of the last few years, spot iron ore prices always ruled marginally below the benchmark Australian prices. Following the meltdown, spot prices are now ruling 30% below the benchmark. As Chinese demand continues, we are expecting spot prices to firm up from its present levels.”
As per report, the INR 3,000 crore company has 8 million tonnes existing iron ore mining operations in Orissa in India and has recently expressed its interest to Coal India for development and operation of high capacity underground mines. Essel exports nearly half of its total production at spot prices.”
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