Posco not to export iron ore

After prolonged negotiations, South Korean steel major Posco has finally blinked and has agreed to enter the country with its $12 billion, 10 million tonne steel plant in Orissa without exporting iron ore.

"We have conveyed to the Orissa government that we will not export iron ore from India and thereby a major issue has been resolved," Posco executives said.

Though this development improves the prospects of Posco's entry into the country, it is still not clear if the company will get mining rights for more iron than its quota of 480 million tonnes.

But the company was still not decided on the date of signing a memorandum of understanding with the Orissa government.