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Bhushan Steel buys Aussie exploration firm

07 Sep 2009 Evaluate

Bhushan Steel (Australia), part of Delhi-based cold roller, Bhushan Steel group, has acquired a 60 per cent stake in Australian exploration company, Bowen Energy. Bowen Energy has 2,400 sq km of prime exploration ground in the heart of the Bowen basin, close to major mines operated by BHP, Rio Tinto, Xstrata and Anglo Coal. Bowen’s projects also include uranium, but Bhushan’s interest is in thermal and coking coal. In 2006 Bhushan had acquired 15 per cent in Bowen.

 

The acquisition would be a major benefit for Bhushan Steel. Some Indian steel companies had reaped major benefits from acquisition of exploration assets. The coking coal could be supplied to Bhushan’s steel plant in Orissa; Bhushan also plans a steel plant in West Bengal. Its requirement for the Indian steel industry is around 30 million tonnes a year, against a domestic production of 7.5 mt.

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