Indian businessman Pramod Mittal has already arrived in Sofia to finalise the sale of Kremikovtzi steelworks.

Last week, Kremikovtzi chief executive officer Alexander Tomov said Ukrainian billionaire Kostantin Zhevago was in the final round of talks to acquire a majority stake in the mill, which contributes indirectly to the incomes of 70 000 people.

Meanwhile, state-owned Bulgarian news agency BTA quoted Stanishev as saying that he was informed about a U.S. company's interest in Bulgaria's largest steelmaker by the U.S. ambassador to Sofia. The company is U.S. Steel who have already entered the Balkans by acquiring the Serbian steelworks in Smederevo. Stanishev has declared that the Government would not take action before he talked with both investors and received firm guarantees that the new owner would keep the loss-making mill operational.

Mittal, the younger brother of steel tycoon Lakshmi Mittal, has said he was in talks with several investors for the sale. He met Bulgaria's Economy Minister in Sofia on January 29 but declined to comment after the talks.

The government said last week Mittal had assured Stanishev that Global Steel Holdings Ltd (GSHL) would not strike any deal without government consent.

Zhevago, who presides over a financial and industrial group and controls 73 percent in London-listed Ukrainian iron ore producer Ferrexpo, also arrives in Sofia on January 30 for talks with the government, which holds a minority stake in Kremikovtzi of 25.13 per cent.

Tomov has said that Kremikovtzi's majority owner, India's GSHL controlled by Pramod Mittal, had failed to provide investment of between 120-140 million euro, needed for environmental upgrades and working capital.

Sources from the Ministry of Environment and Waters told Bulgarian daily Standart that the steelworks would not be given a complex environmental permit until the company management had met all environmental protection standards. Kremikovtzi has worked without environmental permit for three months now.

The Bulgarian government sold 71 percent in Kremikovtzi to Bulgarian Finmetals Group in 1999 for a mere $1. In 2005, GSHL bought Finmetals and took control of the mill.

Speculation about Kremikovtzi's closure has mounted in the past months. Sofia Mayor Boiko Borisov has openly lobbied for the plant to be shut down - on account of its pollution - and its land sold to property developers.