Monday, June 6 2005 22:30 Hrs (IST) - World Time -

London: After a corporate war involving Ambani brothers, the London-based siblings Mittal steel barons Lakshmi and Pramod are waging a proxy battle over iron ore in West Africa.

Mittal Steel of elder brother Lakshmi Mittal claimed it has 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, world's largest steel maker, and GIHL are keen to develop the project in the face of rising global prices for 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 memorandum of understanding with Liminco in November 2003.

Mittal Steel says it approached Liberia's Government last year to develop it through a joint venture.

"There is no court case against Lakshmi Mittal," a spokeswoman for Mittal Steel told PTI, adding, "we have been awarded the exclusivity to develop Liberia's run-down iron ore industry via a joint venture, the Liberian Mining Corporation (Liminco) concession, including iron ore deposits, a railway and the port of Buchanan."