NMDC forms JV company with Chhattisgarh corp

Raipur, July 2: National Mineral Development Corporation (NMDC) has entered into a Memorandum of Understanding (MoU) with Chhattisgarh Mineral Development Corporation (CMDC) to set up a joint venture company for iron ore mining in the state.

The MOU, which was signed in the presence of Chief Minister Raman Singh and NMDC Chairman-cum-Managing Director B Ramesh Kumar here yesterday, is the public sector company's first such agreement with any state government.

As per the MOU, the proposed joint venture company would develop and exploit the deposit No 13 of famous Bailadila iron ore mines in tribal Bastar region.

Chhattisgarh Mineral Development Corporation (CMDC) will hold 51 per cent equity while NMDC share will be 49 per cent.

It is estimated that there is about 350 million tonnes of iron ore at the deposit No 13 at Bailadila.

This joint venture company would make iron ore available to industries within Chhattisgarh on priority basis. Export to other states would be made only after meeting the state's requirement, the MOU added.

UNI