Tata Steel, NMDC in mining pact

Tata Steel today signed a memorandum of understanding with state-run National Mineral Development Corporation Ltd (NMDC) for exploring possibilities of a strategic alliance. Tata Steel manging director H M Nerurkar and NMDC CMD Rana Som signed the agreement.

Under the MoU, NMDC and Tata Steel will explore possibilities of entering into joint ventures for acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants and any other business, which is of mutual interest, a Tata Steel release said today.

Tata Steel, which is planning major expansion in India, is looking at enhancing its iron ore resources and developing technology for using lower grades of iron ore in the country.

NMDC, on the other hand, wants to look beyond its iron ore business and establish a presence in steel making to add value to its mining operations.

The government's steel policy envisages a doubling of the country's current steel-making capacity over the next decade and Tata Steel and NMDC plan to jointly address mining and steel-making opportunities, the release said.

The two companies will set up a working group to explore and finalise the areas of co-operation and will submit its report to a steering committee as a prelude to entering into joint ventures.