Saturday, December 25,
NMDC Ltd, India’s biggest iron ore miner, plans to breathe life into a memorandum of understanding (MOU) it had signed with Rio Tinto, Australia’s biggest miner, two years ago and on which there has been no movement on the ground so far.
“We are planning to re-evaluate the contract that we signed. We are having a meeting with the Rio Tinto officials this month-end where we will decide how to take the MOU forward,” NMDC chairman and managing director Rana Som said last week.
The two companies had signed the agreement on August 18, 2008, after months of discussion, to work jointly on iron ore assets in India and overseas.
It was a very ambitious MoU, wherein the companies had decided to float a joint venture company that would scout for acquiring mining assets in India and overseas for the purpose of exploration, development and exploitation.
Also, they had planned to develop low-grade iron ore projects with suitable beneficiation processes as well.
According to a recent media report, NMDC is looking at acquiring an iron ore mine in Australia in consortium with Rio Tinto, though there is no word yet on its location, size or cost.
“Besides NMDC, Rio Tinto is in the process of re-evaluating its contract with Orissa Mining Corporation (OMC) too,” said a source close to the company.
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