NMDC, Severstal for tie-up for Karnataka plant

NMDC, Severstal for tie-up for Karnataka plant Kolkata: Iron ore major NMDC and Russia's largest steel maker Severstal are looking at a tie-up in order to meet raw material requirements for their proposed JV steel plant in Karnataka.

"Severstal has a small coking coal mine in Russia. They have suggested for transferring it to the JV with a reciprocal arrangement for iron-ore," NMDC Chairman and Managing Director Rana Som told reporters here on the sidelines of an energy seminar.

Som said they are also evaluating the move to acquire another coking coal block in Russia.

"It's a small asset of 70 million tonne. Our team is already in Russia to take stock of the assets. We are expecting to complete the due diligence process and approach the board over next 10-12 days," Som said.

In addition, NMDC is planning a farm pact with Russian steel major Severstal for building a two million tonne steel plant at Karnataka.

"We will convert the MoU into a MOA (memorandum of association) within a month," he added.

PTI