July 25, 2008

GSHL signs up mining deals in Brazil, Colombia and Mozambique

PTI reported that Global Steel Holdings Limited has signed up mining leases for iron ore and coal reserves in Brazil, Colombia and Mozambique.

The report cited a Global Steel Holdings Limited spokesman as confirming to PTI that it has signed multiple iron ore leases with Brazil and for thermal and coking coal exploratory blocks with Colombia and Mozambique.

The spokesman said it may take 12 to 18 months to complete exploratory works in Brazil after which they will decide on beginning exploratory activity. The spokesman refused to confirm the quantum of iron ore reserves in Brazil saying that it is substantial.

In Colombia and Mozambique, the total coal reserves are estimated to be around 100 million tonnes to 110 million tonnes of medium to high grade coking and non coking coal.

As per report, the Mozambique project is near to ArcelorMittal, TATA Steel and CVRD coal projects in Tete region and Global Steel Holdings Limited has bagged a coal mining lease of around 30,000 hectares in that country as compared to ArcelorMittal's 45,000 hectares and TATAs 25,000 hectares.