State-run Steel Authority of India (SAIL) today said it has inked a pact with Mongolia for exploring opportunities of setting up mineral processing units for iron ore and coal besides steel making units there.
"The MoU envisages exploration of opportunities for investments to be made by SAIL either individually or in a consortium with other entities to develop mineral processing/ steel manufacturing facility in Mongolia," a statement by SAIL said.
The Memorandum of Understanding (MoU) was signed between the PSU and Ministry of Mineral Resource & Energy (MMRE), Government of Mongolia at Ulaanbaatar, Mongolia today in presence of SAIL CS Verma and MMRE Vice-Minister T Garamajav.
SAIL Chairman, the statement said, "commended the Mongolian government for its initiatives in developing their mining sector, which shall serve to be crucial drivers of FDI for the country, while also meeting the mineral needs of India and other Asian economies."
MMRE Vice-Minister Garamajav termed the MoU as a welcome step in cooperation between the two countries and hoped that joint feasibility report could help Mongolia set up a mineral processing industry.
As per the MoU, MMRE will provide information on iron ore and coal deposits in Mongolia to SAIL and will offer options of locations and size of steel manufacturing facility for pre-feasibility study, the statement said.
"A joint pre-feasibility study for setting up of mineral processing facility for iron ore and coal, both coking and thermal, in Mongolia, and downstream steel making facilities for domestic consumption and trade, will be taken up by MMRE and SAIL," it added.
SAIL, on the other hand, will select the best available technology to treat Mongolian iron ore and coal deposits based on the feasibility study.
In November 2011, a high-level delegation from Mongolia had visited SAIL's Bhilai Steel Plant and held discussions with officials of SAIL and Ministry of Steel, Government of India.