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Indian private-sector resources firm Vedanta has announced a strategic review of its steel and steel raw materials business, including potential sale of some assets.
The company said it has taken the step as it "continues to review its strategic priorities in the normal course of its capital allocation discussions, with the aim to continue to maximize stakeholder value".
The review will begin immediately and will evaluate a broad range of options to maximise stakeholder value, including but not limited to a potential strategic sale of some or all of its steel businesses, the company said.
Vedanta operates a 1.5mn t/yr ESL steel plant in Bokaro, Jharkhand and a 5.9mn t/yr iron ore mine in Karnataka. It also has iron ore mines in Goa, for which it has issued guidance for a production volume of 1.5mn-2mn t during the April 2023-March 2024 fiscal year. The company also expects to produce 6mn-6.5mn t of the steelmaking raw material in Odisha during the period.
It also has iron ore mines in Liberia, and started production from the Western Cluster Liberia mine during 2022-23, according to the company's annual report.
Vedanta had in March 2022 approved an expansion project of its ESL plant located in Bokaro, in the state of Jharkhand to double its capacity from 1.5mn t/yr to 3mn t/yr, and announced an investment of $348mn for the expansion.
But earlier this month, the company announced plans to invest $1.7bn in 2023-24 to expand capacity in its businesses ranging from oil and gas to aluminium and zinc, but not in steel.
Vedanta's hot metal production rose by 1pc on the year to 1.37mn t during 2022-23. The company's pig iron production was at 696,000t during the period, while its saleable iron ore output was at 5.4mn t.
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- [Editor:kangmingfei]
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