Race for Resources – Steel Authority of India Ltd signed MoU with Mongolia to Develop Coking Coal Deposits
Souce: STEEL GURU
May 12, 2012
Steel Authority of India Ltd plans to develop iron ore and coal mines in Mongolia in collaboration with the local government.
A MoU was signed by SAIL on Friday with the Mongolian Ministry of Mineral Resource and Energy to explore business opportunities in the mining and steel sector.
As per the MoU, MMRE will provide information on iron ore and coal deposits to SAIL and will offer options of locations and size of steel manufacturing facility for pre-feasibility study.
A joint pre-feasibility study for setting up of mineral processing facility for iron ore and coal, both coking and thermal, in Mongolia, and downstream steel making facilities for domestic consumption and trade, will be taken up by MMRE and SAIL.
SAIL will select the best available technology to treat Mongolian iron ore and coal deposits based on the feasibility study. The MoU envisages exploration of opportunities for investments to be made by SAIL either individually or in a consortium with other entities to develop mineral processing/ steel manufacturing facility in Mongolia.
Mr CS Verma chairman of SAIL told reporters “We have been talking about this for about a year. The plan is to acquire the mine, utilise the coal for the steel plant India proposes to set up in Mongolia and export the rest to India through Chinese ports as Mongolia is a land locked country.
Asked whether India is expecting substantial volumes from Mongolian mines, Mr Verma said, “I think it should happen. We will be too keen to get good volumes, good mine with lot of reserves, so that we feed the steel plant which we will be setting up there and the surplus will be brought to India.”
Mr Verma added “Mongolia has very good quality of coking coal mines. We do not have such quality coal mines ourselves. Let Mongolian government allocate some good coking coal mine and we will have reciprocal arrangement to set up a steel plant there. The mine India plans to acquire will first meet the requirement of setting up a steel plant there. Then the surplus coking coal will be taken to from there, Verma said.
Source – Business Line and MAD Mongolia