Posco close to getting iron ore prospecting licence

Posco close to getting iron ore prospecting licence


Bhubaneswar: South Korean steel major Posco was probably only two signatures away from getting the prospective licence (PL) of Kandahar iron ore reserve in Orissa’s Sundergarh district, official sources said today.

As hearing on Kandahar reserve was complete, some formalities were left before the state government, which formally recommends the name of the company to get the PL.

Spread over 6204.32 hectares, Kandahar iron reserve is known as ‘jackpot´ in the steel sector.

“We will very soon send the recommendation to the Centre for the PL over Kandahar iron ore reserve," Orissa’s Steel and Mines Minister Pradip Amat told PTI adding only some formalities were left for final recommendation.

The sources said, Steel and Mines Secretary Ashok Dalwai has finalised hearing of application for PL over Kandahar a month ago and sent the department’s recommendation to the chief secretary’s office.

Chief Secretary Ajit Kumar Tripathy has also signed on the dotted lines sending the files to Amat.

“Two more signatures, one of Amat and another from Chief Minister Naveen Patnaik, are required to finally recommend the name of Posco for availing the PL over Kandahar," an official said.

Besides Posco-India, which proposed to set up a 12 mtpa steel plant near Paradip at an investment of Rs51,000 crore, there were as many as 289 aspirants, including Essar Steel and central PSU Kudremukh Iron Ore Ltd (KIOL) for Kandahar reserve.