The Sajjan Jindal-controlled company had secured prospecting licences through its Netherland-based subsidiary to explore and exploit magnetite iron ore deposits in northern Chile's Atacama region.
"We will explore the possibility of selling Chilean iron ore in India. The Chile plant will act as a natural hedge to iron ore selling in India," said a top company executive.
The company has paid $52 million (about Rs 200 crore) for acquiring mining licences spread. The move was part of the company's efforts to augment captive sources of iron ore and coal for its local steelmaking operations.