Indian firm Jindal Steel and Power (JSPL) is close to buying an iron ore mine in West Africa to secure supplies for its steel plant in Oman.
The company has recently added a two million ton per year steel plant in Oman to its portfolio, along side its existing plants in Raigarh, Chhattisgarh and Angul, Odisha in India.
JSPL official was quoted by Press Trust of India as saying, "We are in discussion with a few targets in West African countries like Cameroon, Senegal and Nigeria for an iron ore mine acquisition and hope to clinch a deal in the next three-four months."
"By July-September, we will be able to seal the deal."
The official added, "We want to buy a mine so that the plant does not have to face the consequence of fluctuating iron ore prices in the international market."
To produce one million ton of steel, JSPL usually requires 1.6 million tons of iron ore. The company already operates in South Africa, Mozambique, Namibia, Botswana and Mauritania.