BL reported that Rashtriya Ispat Nigam Ltd has acquired 51% stake in Eastern Investments Ltd, the holding company of Orissa Mineral Development Corporation and Bisra Stone Lime Company.

RINL has acquired 51% stake for INR 361.30 crore. The deal was finalized on Friday and the RINL became the majority shareholder in Eastern Investments.

Mr PK Bishnoi CMD of RINL said “It is the best thing to have happened to RINL, which does not have captive iron ore mines. It is like a childless couple adopting a baby. It is a very positive development for the future growth of the steel plant and for raw material security.”

He said that OMDC had 206 million tonnes of iron ore reserves in Orissa, and Bisra Stone Lime Co had 44 million tonnes of manganese ore reserves.

He said “We will not have the benefit of a full captive mine, but this acquisition will partly address the problem. We would be able to offset the cost partly. There will be greater raw material security, as we now have an alternative source of supply, in addition to the NMDC. In addition to iron ore, we will also have manganese.”

Mr Bishnoi said that as the majority shareholder, RINL will take steps to set up a pelletization plant with 2 million tonnes capacity, a beneficiation plant and also take up the expansion of sponge iron unit of OMDC.

(Sourced from BL)