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Jindal Steel not bidding for Australia’s Bandanna

Jindal Steel not bidding for Australia’s Bandanna
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First Published: Fri, Aug 05 2011. 05 54 PM IST
Updated: Fri, Aug 05 2011. 05 54 PM IST
New Delhi: India’s Jindal Steel and Power Ltd has not bid for Australian coal explorer Bandanna Energy’s assets as it did not suit the steelmaker’s interests, a top executive said.
Last month, Bandanna had asked potential bidders to provide binding offers after shortlisting parties, including individual project assets and corporate-based transactions, as part of a strategic review.
“We have not bid. The deadline has lapsed,” Sushil Maroo, director and group CFO, told Reuters on Friday by telephone, saying the proposal did not suit its interest. He did not elaborate.
Last week, Jindal Steel had said it would make a final bid for Bandanna.
State-run NTPC Ltd, India’s largest power utility, also said on Monday it won’t bid for Bandanna Energy’s assets as the price was not “viable”.
India’s Aditya Birla Group, JSW Steel, Jindal Steel & Power and China’s Citic Resources were among those interested in Bandanna assets, sources had told Reuters in May.
Ties up with Rio Tinto
Separately, Jindal Steel on Friday said it has signed an agreement with Australian miner Rio Tinto to jointly develop and market a high-intensity smelting technology, and share royalties from its use.
High-intensity smelting is the world’s first commercial direct smelting process for making iron straight from the ore, the company said in a statement.
The tie-up will result in relocation of the existing Kwinana high-intensity smelting plant in Australia, majority owned by Rio Tinto, to Jindal’s facility in eastern Indian Orissa state, Maroo said, without specifying the costs involved.
Jindal Steel will fully own the relocated plant, the company said in a statement.
Jindal Steel, valued at $11.5 billion, ended 1.23% down on Friday in a Mumbai market that was down 2.26%.
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First Published: Fri, Aug 05 2011. 05 54 PM IST
More Topics: Jindal Steel | Bandanna | Australia | Coal | Steel |