New Delhi, May 5 (PTI) Gujarat-based AMNS India has reported an EBITDA of USD 470 million for March 2022 quarter, registering a growth of 16.62 per cent over the year-ago period, its parent company ArcelorMittal said on Thursday.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation.
The company had posted an EBITDA of USD 403 million in the year-ago quarter, the world’s largest steel maker said in a statement.
AreclorMittal Nippon Steel (AMNS) India is a joint venture company in which Luxembourg-based ArcelorMittal holds 60 per cent stake, while the remaining 40 per cent lies with Nippon Steel of Japan.
According to the statement, AMNS India’s crude steel production in the first quarter of 2022 or January-March period decreased to 1.7 million tonne (MT) as compared to 1.8 MT in October-December period of 2021, primarily due to planned maintenance.
On a year-on-year (y-o-y) basis, the 1.7 MT output was also lower as compared to 1.8 MT the company had produced in 1Q 2021.
“Steel shipments (of AMNS India) in 1Q 2022 were stable as compared to 4Q 2021 and 1Q 2021,” the company said.
The shipments were at 1.73 MT in the quarter under review as against 1.70 MT in the year-ago quarter.
ArcelorMittal further said it has established a strategic partnership with energy transition Greenko Group in India to develop a round-the-clock renewable energy project with 975 MW of nominal capacity.
The project worth USD 600 million will combine solar and wind power and be supported by Greenko’s hydro pumped storage project which helps to overcome the challenges due to intermittent nature of wind and solar power generation.
The project will be owned and funded by ArcelorMittal, and Greenko will design, construct and operate the renewable energy facilities in Andhra Pradesh. The project is expected to be commissioned by mid-2024.
AMNS India will enter into a 25-year offtake agreement with ArcelorMittal to purchase 250 MW of renewable electricity annually from the project.
“The project provides an attractive return on investment for ArcelorMittal and offers AMNS India the dual benefits of lower electricity costs and lower CO2 emissions,” the statement said.
Sharing details of AMNS India operations, it said the joint venture company has plans to expand and grow up to 14 MT per annum capacity and later to 18 MTPA.
The Thakurani mine, acquired by AMNS India earlier in Odisha, is operating at full 5.5 MTPA capacity since 1Q 2021, while the second Odisha pellet plant was commissioned and started in September 2021, adding 6 MTPA for a total 20 MTPA of pellet capacity.
The Ghoraburhani-Sagasahi iron ore mine in Odisha is set to produce 5 MT high-quality iron ore in 2022. The capacity of the mine will be ramped up to 7.2 MTPA gradually.
On plans to set up a steel plant in Kendrapara, the statement said, “A pre-feasibility study report was submitted to the state government in 3Q 2021, and AMNS India is currently engaging with the government for further studies and clearances.” In March 2021, AMNS India signed a memorandum of understanding with the government of Odisha for an integrated steel plant with a 12 MTPA capacity in Kendrapara district of the state. PTI ABI HVA
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