Rio Tinto, the UK based international mining group has signed a Memorandum of Understanding (MoU) with NMDC, the state-run mining major to explore mining reseources in India and abroad.
“We seek to utilize Rio Tinto’s global technology, money, process and reputation to explore new opportunities in mining,” said Rana Som, Chairman of NMDC at the sidelines of a function, in which the MoU was signed..
Under the MoU terms, the two companies will form a joint working group to search for prospective mining properties. Moreover, a JV company will also be formed, which will have equal stake of Rio Tinto and NMDC.
“We are jointly scouting in Orissa and Tamil Nadu for prospective sites. Globally, there are opportunities in Australia, Brazil and Africa also,” Som added.
The JV company will initially mine Iron and is likely to explore and mine other mineral reserves as well.
NMDC has already signed an agreement with Rio Tinto to import its “high smelt technology” for iron ore mining.
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At present, the country’s total iron ore reserves stand at about 23 billion tonnes. However, mining is allowed in only about half of these reserves by the government.
NMDC single-handedly carries out mining activity in about 190-200 million tonnes of proven iron ore reserves at present.