Nu-Iron still interested in old Arcelor Mittal plant

Nu-Iron Unlimited remains interested in acquiring the now-defunct Arcelor Mittal plant, although it is no longer in negotiations after the lock-out period for completing the deal expired last Friday.

It will not, however, stand in the way “if another company is prepared to make a proposal that is good for the country and acceptable to Arcelor Mittal’s liquidator and the government,” the company said in a statement to Newsday.

The company clarified that it did not “withdraw” its US$20 million bid for the plant. Instead, Newsday understands, it allowed the lock-out period to expire without requesting an extension. The lock-out period was part of the receivership arrangement to prevent other bids from being entertained during the finalisation of the purchasing process. Newsday understands that since Nu-Iron’s bid had been accepted around the end of last year, the lock-out period had been extended several times.

Newsday also understands much of the delay preventing the ultimate resolution of the deal was bureaucratic, with the government putting the company “through the ringer.” Newsday was told one of the biggest holdups was the approval of a foreign investor licence that needed to be granted by the Ministry of Finance. Finance Minster Colm Imbert declined to comment when Newsday asked about the status of the licence.

Nu-Iron alluded to the government’s influence in the process, saying the government had a “responsibility to the citizens of TT to approve such foreign investment acquisitions that they believe to be best suited for the country and the Point Lisas community that we call home.” It added that, despite the outcome, its interaction with the government and its agencies was “positive and professional.”

Nu-Iron operates a direct reduced iron (DRI, a raw material for steel) plant in the Point Lisas Industrial and Port Development Company (Plipdeco) compound. Its bid, the company said, was based on “a market opportunity” to expand its raw material base. The Arcelor Mittal plant included one of the biggest DRI plants in the world. Should another investor acquire the plant, it will not have an adverse impact on Nu-Iron’s current operations, the company added.

Newsday attempted to contact the liquidator, Christopher Kelshall, about further plans to reopen the bidding period, but he did not answer several calls to his mobile.