• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

V.K Varadarajan

Bangalore , June 8

IN A strategic alliance to exploit their core competence in mining and steel making, the public sector companies, Kudremukh Iron Ore Company Ltd (KIOCL) and Steel Authority of India Ltd (SAIL) have decided to set up a joint venture to develop iron ore mines in Orissa. The decision follows a recent approval by the boards of directors of both the companies.

The modalities of the proposed 50:50 joint venture were being worked out and a final picture would emerge only at the end of this month, said Mr P. Ganesan, Chairman and Managing Director of KIOCL.

Talking to Business Line, Mr Ganesan said mining sites have been identified at Bersua, Kalta and Taldih in the Rourkela region of Orissa.

Currently, prospecting exercise was being conducted by the Geological Department of Orissa to determine the quality and reserves potential of the mines. It is expected to be completed by the end of this month. Based on the commercial viability of the proposition, the companies would finalise their plans, said Mr Ganesan adding that the new venture would sell ore to both domestic and export markets.

Mr Ganesan said the joint venture was part of KIOCL's expansion plan and was not an alternative to overcome its uncertain future in its core area of Kudremukh in Western Ghats. The 100 per cent EOU has been directed by the Supreme Court to stop mining from December 2005 on an interlocutory application filed by an NGO in 2001.

Pending a decision from the Supreme Court on an appeal by KIOCL, it had applied for new mining leases in Karnataka's rich ore belt of Bellary-Hospet to source raw material for the pellet plant in Mangalore.

More Stories on : Alliances & Joint Ventures | Minerals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Valecha Engg bags Vadodara airport contract

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line