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NMDC re-valuating agreement with Rio Tinto

NMDC re-valuating agreement with Rio Tinto
PTI
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First Published: Sun, Jan 30 2011. 05 23 PM IST
Updated: Sun, Jan 30 2011. 05 23 PM IST
Mumbai: State owned miner NMDC is re-valuating its two-year-old agreement with Anglo-Australian mining major Rio Tinto that envisaged working jointly on iron ore assets in India and overseas.
Rio Tinto, the world’s second-biggest iron ore producer, had inked a memorandum of understanding with NMDC on 18 August, 2008 to work jointly on iron ore assets in India and overseas. But there has been no movement on the ground so far.
“We plan to reevaluate the agreement with Rio Tinto. We will meet with Rio Tinto officials soon to discuss the matter,” NMDC chairman and managing director Rana Som told PTI over the phone.
Rio Tinto had also signed a joint venture (JV) agreement with Orissa Mining Corporation (OMC) in 1995 for exploration of the Malangtoli iron ore reserves in the state.
However, the JV - in which Rio Tinto was to hold a 51% stake and OMC the remaining 49% - did not get operationalised.
The Orissa government is examining a fresh draft of a proposed agreement with the Anglo-Australian mining major for exploitation of iron ore deposits in the mineral-rich state.
“Draft for a fresh agreement is being examined by the departments of law and finance. A decision on the issue will be taken after the final report is submitted,” Orissa’s industries and steel and mines minister Raghunath Mohanty said over the phone.
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First Published: Sun, Jan 30 2011. 05 23 PM IST