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Tata Steel, NMDC Sign MOU for Iron Ore Resources
Feb. 1, 2010 NMDC Ltd. and Tata Steel Ltd. recently signed a Memorandum of Understanding to explore possibilities of entering into joint ventures for the purpose of acquisition, exploration, and development of mines; extraction and processing of minerals; setting up integrated steel plants; and any other business that is of mutual interest.
The MOU was signed by Rana Som, CMD of NMDC, and H M Nerurkar, Managing Director, Tata Steel.
Tata Steel says it has major plans to expand within India and is looking at enhancing its iron ore resources and developing technology for using lower grades of iron ore in the country. NMDC plans to look beyond its iron ore business and establish a presence in steelmaking to add value to its mining operations.
The companies point out that India’s steel policy envisages steelmaking capacity to double over the next decade, which presents an opportunity for them to work together toward this goal. Tata Steel and NMDC plan to jointly address mining and steelmaking opportunities.
The two companies plan to set up a working group to explore and finalize the areas of cooperation and will submit its report to a Steering Committee. Then a decision to enter into joint ventures will be made.
NMDC is India’s single-largest iron ore producer and involved in mineral exploration and mining. It operates iron ore mines at Bailadila in the State of Chhattisgarh and Donimalai in the State of Karnataka and is also involved in the exploration of a wide range of other minerals. NMDC is presently diversifying into manufacturing of steel and pellets. It has sizable operations in the State of Chhattisgarh and is setting up an integrated steel plant in that state.
Tata Steel is one of the world’s largest producers of iron and steel. The company has extensive experience in mining, processing of minerals/metals, and in the operations of integrated steel plants, as well as in exploration, designing, and operation of both underground and open cast mines producing various minerals.