Sail, Manganese Ore in JV pact

Steel Authority of India (Sail) today signed a memorandum of understanding (MoU) with Manganese Ore India (MOIL) for setting up a 50:50 joint venture to produce ferro-manganese and silico-manganese.

According to a release issued to the Bombay Stock Exchange, the JV will be incorporated with a debt-equity ratio of 1:1.

MOIL, a public sector company, has large resources of manganese ore in India, and is capable of providing high value added inputs. Sail has decided to go in for the JV to ensure regular and quality supply of manganese ore at a competitive cost.

The proposed JV will initially supply a projected volume of around 31,000 tonne of ferro-manganese and 70,000 tonne of silico-manganese, to meet a part of Sail's requirement of the ferro-alloys to produce 24 million tonne of crude steel by 2010.

The JV will produce ferro-alloys through three furnaces to be set up in or around Bhilai.