ArcelorMittal Abandons Plans To Construct Plants In Orissa, India

(RTTNews) - ArcelorMittal (MT), the Luxembourg-based steel and mining giant, said Wednesday that the company has decided not to progress with its planned construction of an integrated steel plant and a captive power plant in the district of Keonjhar, Orissa.

ArcelorMittal initially planned to construct a 12 million tonne integrated steel plant in Keonjhar and signed a Memorandum of Understanding with the Government of Odisha in December 2006.

Since that date, ArcelorMittal has completed important milestones such as the completion of a feasibility report, an environmental impact assessment study and other relevant technical reports.

However, the project has faced significant external delays. ArcelorMittal has not been able to acquire the requisite land for the steel plant, nor has it been able to ensure captive iron ore security.

Therefore, taking into account the current economic climate, ArcelorMittal has concluded it will no longer be pursuing its plans for a steel plant in Keonjhar at this stage.

This announcement does not affect ArcelorMittal's plan to pursue its two other Indian projects in Jharkhand and Karnataka.