NMDC re-valuating two-year-old agreement with Rio Tinto

Mumbai, Jan 30 (PTI) Government-owned miner NMDC isre-valuating its two year-old agreement with Anglo-Australianmining major Rio Tinto that envisaged working jointly on ironore assets in India and overseas.

Rio Tinto, the world''s second-biggest iron oreproducer, had inked a memorandum of understanding (MoU) withNMDC on August 18, 2008 to work jointly on iron ore assets inIndia and overseas. But there has been no movement on theground so far.

"We plan to reevaluate the agreement with Rio Tinto.

We will meet with Rio Tinto officials soon to discuss thematter," NMDC Chairman and Managing Director Rana Som told PTIover phone.

Rio Tinto had also signed a joint venture agreementwith Orissa Mining Corporation (OMC) in 1995 for explorationof the Malangtoli iron ore reserves in the state.

However, the JV - in which Rio Tinto was to hold a 51per cent stake and OMC the remaining 49 per cent - did not getoperationalised.

The Orissa Government is examining a fresh draft of aproposed agreement with the Anglo-Australian mining major forexploitation of iron ore deposits in the mineral-rich state.

"Draft for a fresh agreement is being examined by theDepartments of Law and Finance. A decision on the issue willbe taken after the final report is submitted," Orissa''sIndustries and Steel and Mines Minister Raghunath Mohanty saidby phone.