New Delhi World's fifth largest steel maker Pohang Steel Company (POSCO) on Tuesday said it has short-listed seven Indian mining companies to develop the captive iron ore mines and would pump in $500 million for the venture.
The Orissa government will allocate the iron ore.
POSCO had earlier considered sourcing iron ore from the captive mines that were to be developed by BHP Billiton. But the tie up between two companies broke up recently.
POSCO's Chief Representative S M Doh said POSCO will look into proposals of National Mineral Development Corporation, MMTC, Orissa Mining Corporation, Salgaonkar, Sesa Goa Limited and Kudremukh Iron Ore Company Limited.
However, POSCO denied entering into any kind of joint venture with these companies.
POSCO's move comes close on the heels of Orissa government asking it to induct Indian companies for mining ore.
The company has already identified two separate iron ore mines having reserves of 600 million tonnes for 30 years in Keonjhar and Sundergarh districts of Orissa.
POSCO Steel has signed a Memorandum of Understanding (MoU) with the Orissa government to invest $12 billion in the state.
The Orissa government has assured POSCO of 600 million tones of iron ore for a period of 30 years and also agreed to allow 30 per cent of ore swapping against a same amount of Brazil iron ore, which has a low alumina content.
Comments
0 comment