State-owned NMDC and Russia's second-biggest steel-maker Severstal have signed an Implementation Protocol with respect to the Memorandum of Understanding they entered in December, 2010, for a joint venture steel plant in Karnataka.
According to NMDC, the protocol defines the initial capacity of the proposed JV plant, which would be 3 million tonne per annum of finished steel.
NMDC said, "It also confirms the intention of NMDC and Severstal to fully meet the joint venture's captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials."
"Until the captive assets are fully developed, NMDC and Severstal take the responsibilities to supply, respectively, iron ore and coking coal to the JV at market basis from their existing assets or alternative sources," it added.
Alexey Mordashov, the Chief Executive of OAO Severstal, said the joint venture project in India with NMDC, the country's leading iron ore producer, provides a very good fit with Severstal's vertically-integrated, growth-focused business model.
NMDC Chairman and Managing Director Rana Som said the miner is working toward realising its dream to make the project not only financially viable, but also socially meaningful and economically relevant to the needs of India.
Steel Minister Beni Prasad Verma and Steel Secretary PK Mishra were at the head of a high-level delegation from India that witnessed the signing ceremony, NMDC said in a release.
