Posco seeks 400mt ore for its Korean plants

Pohang Steel Company (Posco) is keen on sourcing an additional 400 million tonnes of iron-ore from the country to its Korean steel plants over and above the 600 mt from Orissa for its 12 mt steel plant at Paradip.

"Posco has requested to source an additional 400 mt of iron-ore from India for their existing steel plants in South korea. This can be done through a long-term commercial supply arrangement from the open market," according to the memorandum of understanding (MoU) signed between Orissa government and Posco on June 22.

However, the company was not immediately planning to go for such a venture. "Well, it is true that the fact is enshrined in the MoU with the Orissa government, but there are no plans as of now to go for such a thing," a senior posco official said today.

"Any such trading arrangement will fall entirely within the domain of the union government and would be regulated by the prevailing export-import policy of the country," the MoU clarified.

The Naveen Patnaik administration made it clear in the MoU that no mineable reserves can be provided by the state purely for the purpose of direct exports beyond what has been indicated for value addition in the steel plant to be set up at Paradip in Jagatsinghpur district of Orissa.

"However, the government of Orissa will assist Posco in establishing suitable contacts and interfaces with the government of India for this purpose," the MoU added.

It may be recalled that talks had broken down when the state refused to oblige the Korean steel giants's request to allow it to export 400 mt of iron-ore out of one billion tonne demanded from the state.