Mittals wage legal war over Liberian plant

After a corporate war involving the Ambani brothers, it’s the turn of London-based siblings Lakshmi and Pramod Mittal to fight it out. ...

After a corporate war involving the Ambani brothers, it’s the turn of London-based siblings Lakshmi and Pramod Mittal to fight it out. The barons are waging a legal battle over a steel plant in West Africa.

Mittal Steel, which belongs to elder brother Lakshmi Mittal, claimed it had the exclusive right to develop Liberia’s run-down iron ore industry but the project has been delayed because of a legal challenge posed by rival steel company Global Infrastructure Holdings Ltd (GIHL) owned by Pramod, against the Liberian government. The case is now before the Supreme Court in Lagos.

Both Mittal Steel, the world’s largest steel maker, and GIHL are keen to develop the project in the face of rising global prices of iron ore. Mittal Steel needs raw material for its mills in Algeria and South Africa, while GIHL needs more resources to feed their giant Ajaokuta Steel Mill and the Delta Steel Company in Nigeria.

The court case has pushed back talks over possible investment in the multi-million dollar project, reports said. Pramod Mittal’s company and its partner Provider Ltd claim they have the rights to the project after signing a MoU with Liminco in Nov 2003. —PTI