ArcelorMittal is facing cost overruns for its projects in India because of delays in securing regulatory approvals, and is looking to expand in other emerging markets, its chairman said on Wednesday.
ArcelorMittal, the world's top steelmaker, had said it would invest $20 billion over the next 10 years to build two steel plants in the eastern Indian states of Jharkhand and Orissa to produce about 25 million tonnes of steel in total. But the cost could rise by about 50 percent because of delays in getting the necessary approvals and mine allocations, Lakshmi Mittal told reporters at a conference in the Indian capital. "When we started, we estimated they will cost about $20 billion ... but there is a delay (and) costs are going up. The more the delay, the higher the cost overruns," he said.
"We're in the process of expediting the process so that from our side, we're ready to start the projects when we get the approvals," he said. ArcelorMittal had said in February it was negotiating with the two states for mining rights. India had allocated some coal blocks for the plants and the company was due to get more blocks.
"We're awaiting approvals and mine allocations," Mittal said. Despite these delays, ArcelorMittal remained convinced of the growth prospects in India and was looking for more greenfield opportunities, he said. It also hoped to expand its business in other emerging markets, including Mexico and Brazil.
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