The Iron Men – Earthstone’s Pankaj Shah and Hemanshu Mehta featured in Forbes magazine
04/08/2013

Earthstone’s Chairman and CEO Mr. Pankaj Shah and Managing Director Mr. Hemanshu Mehta in a double spread titled “The Iron Men – Earthstone is Developing Indonesia’s Iron Ore as a Stepping Stone to Steel Production.”

Online PR News – 08-April-2013 – Jakarta, Indonesia – Earthstone Group (“Earthstone” or “company”) is pleased to announce that Forbes, world’s leading business and financial magazine, has featured Earthstone’s Chairman and CEO Mr. Pankaj Shah and Managing Director Mr. Hemanshu Mehta in a double spread titled “The Iron Men – Earthstone is Developing Indonesia’s Iron Ore as a Stepping Stone to Steel Production.”

Earthstone is an established iron ore player with five years of operating history. In less than five years Earthstone has gone from strength to strength through unparalleled growth. From a single mine company, Earthstone has established as a full force in iron ore mining in Asia and West Africa and has recently diversified into Steel manufacturing and Ferro Alloys processing in order to become a fully-integrated player in the market.

The article outlines Mr. Pankaj Shah and Mr. Hemanshu Mehta’s interest in developing iron ore mines for forward integration into steel to leverage a significant cost advantage. The company is currently producing iron ore in Indonesia and Morocco and has on going exploration programs in Asia and West Africa. Earthstone is currently in the process of setting up steel plants in Morocco, Indonesia, Saudi Arabia and Kenya and a Ferro Manganese and Silico Manganese plant in Indonesia.

In the article, Mr. Pankaj Shah comments, “The idea is to produce iron ore as a raw material for subsequent steel production.” For example, most steel plants in Indonesia do not have their own dedicated iron ore supply and, in fact, 70% of the ore used to make steel is imported, mainly coming from Brazil and Australia. “Some of the big players are paying USD $ 300 per tonne for ore but we can supply our steel plants at a cost below USD $ 60 per tonne”, says Mr. Pankaj Shah. “Indonesia currently imports steel worth 10 million tonnes per annum at the moment”.

Indonesia is one the most promising market in Asia for steel with its steel consumption growing around 20% a year in recent years. It is one of the three biggest steel consuming countries in the ASEAN region, following its large economy and population. Since the steel demand can only rise with expanded investments into property, manufacturing, and infrastructure, Earthstone foresees an opportunity to fill in this gap with locally made steel.

The article also touches upon Earthstone’s globalization plan to reach out to every country that offers viable business opportunities. Mr. Pankaj Shah adds, “We believe that within Indonesia there are enough business opportunities to engage in both steel and iron ore production”. The duo has long-range plans. “What we are trying to create is a regional mix of portfolios in different parts of the world so we are not too dependent on any one country. That way we can minimize our exposure to political and other risks”, says Mr. Pankaj Shah.

The group currently has strong presence in Asia, Africa and Middle East, and its companies serve products to various domestic and international markets. It employs hundreds of people from diverse backgrounds across the globe, and is respected for its adherence to strong values and business ethics.