Global Steel Holdings, promoted by Pramod Mittal of Ispat Industries, is firming up plans to invest $450 million to double its capacity at Delta Steel Company in Nigeria to 2.4 million tonnes per annum (mtpa) in a couple of years.

President, Business Development of Global Steel Holdings, Sunil Kumar Manwati said “Delta Steel is in talks with leading European banks to raise debts of $350 million. While Delta Steel will organise $50 million from internal accruals, Global Steel will invest $50 million to finance the expansion plan. The debt portion of the financing programme will be securitised against the sale of the company.”

Pramod Mittal, younger brother of the world’s largest steel maker and richest Indian Lakhsmi Mittal, has invested $200 million in Delta in the past two years, including the acquisition cost of the company.
In Nigeria, Global Steel has pumped in $475 million, including its fund infusion in the Ajaokuta Steel Company and National Iron Ore Mining Company, in the past four years.

Mr. Manwati said Global Steel had filed a lawsuit at the International Court of Arbitration challenging the Nigerian government's decision to confiscate the concessions Global had been awarded and pull out of the stake sale from Ajaokuta Steel Company and National Iron Ore Mining Company. “However, we are open to any talks with the government to resolve the issue,” he added.