Picture: ISTOCK
Picture: ISTOCK

South African units of Jindal Steel & Power filed for business rescue in June.

Jindal Mining SA, Jindal Africa Investments and Eastern Solid Fuels filed notice of the voluntary proceedings on June 12, according to documents posted on Jindal Africa’s website.

A spokesman for the company did not immediately reply to an e-mail seeking comment.

Jindal Mining SA’s main business is coal production at the Kiepersol mine, according to one of the documents.

It was also involved in the Melmoth iron ore project in KwaZulu-Natal, in a joint venture with Sungu-Sungu Mining, Business Day reported two years ago.

Business rescue practitioners for the unit have scheduled a meeting with creditors for June 26.

Jindal Africa also has operations in Botswana, Mozambique, Namibia, Zambia, Tanzania and Madagascar.

Jindal Steel & Power, the Indian steel maker controlled by billionaire Savitri Jindal’s family, manufactures sponge iron, mild steel, and cement. It also produces power, conducts mining operations for iron ore and coal, and explores for natural gas and oil.

SA’s steel industry has for years sought protection from cheaper imports, while main steel maker ArcelorMittal SA has railed against price caps. The industry has also been hit by a steep fall-off in infrastructure projects since the 2010 Soccer World Cup.

Bloomberg, with staff writers