SAIL plans iron ore JV with Kudremukh

Steel Authority of India Ltd (SAIL) . signed a pact with Kudremukh Iron Ore Co Ltd (KIOCL) for forming a 50:50 joint venture company to develop iron ore mines at Barsua, Taldih and Kalta in Orissa.

The joint venture will synergise the experience and expertise of the two PSUs and add value to the country's mining operations.

SAIL is the country's largest producer of iron ore with an annual production of around 20 million tonne, while KIOCL operates and maintains the single-largest iron ore mine in India besides having expertise in production of iron oxide pellets.

The pact envisages incorporation of modern mining facilities to produce superior quality iron ore for meeting the requirements of some of the SAIL plants and further value addition through installation of a pellet plant.

MECON has been engaged to prepare the feasibility report for the project, while NMDC will undertake ore characterisation study. The joint venture will help in meeting the increased iron ore requirements of SAIL plants, which are gearing up to increase their hot metal production levels to an aggregate of around 20 million tonne by 2011-12 from the current 13 million tonne.

SAIL's board at a meeting today agreed for an in-principle merger of the company's wholly owned subsidiary, Indian Iron & Steel Co. Ltd (IISCO), with SAIL. Steps for obtaining clearance and necessary approvals from the government and appropriate authorities will be initiated shortly.