Posco rejects proposal for tie-up with Kudremukh Iron Ore Co

06 July 2007

Along with this the mines ministry is not too keen on the proposal either.

The centre had made this suggestion last month in order to remove the roadblock in the way of Posco''s Orissa plans. According to the proposal, KIOCL would do the mining while Posco would get supplies on commercial terms.

The mines have become a bone of contention with Posco and KIOCL basing their claim on the fact that they have done the prospecting work in the area.

Posco, which will need around 18 million tonnes iron ore annually once its plant starts, is optimistic that the state government will help it secure raw material.

The state government supports the Posco project on the ground that it has scope for value addition and downstream investments.

The deadlock over mining lease is one of the two impediments for the project, the other being land acquisition. The company has got approval for its port and is expecting the environmental nod soon.