Posco for swapping of iron ore within country

Posco for swapping of iron ore within country

Bhubaneswar: Though Posco had agreed not to insist on the import clause in the lapsed memorandum of understanding (MoU) with Orissa government, it wanted swapping of iron ore within the country.

“Posco-India has given its consent to delete import clause from the lapsed MoU. However, it wants swapping of iron ore within the country," Orissa’s steel and mines minister Raghunath Mohanty told reporters here.

Optimistic of having a fresh MoU with Posco-India soon, Mohanty said the state government was examining the company’s term of allowing it to exchange high alumina content iron ore with low alumina content mineral.

“The state government will soon take a decision on whether to allow Posco-India to undertake swapping of iron ore within the country or the state," Mohanty said adding the steel and mines department had been verifying whether this similar provision existed in other MoUs.

The MoU between Orissa government and Posco-India lapsed on June 21, 2010 after a gap of five years. However, a new MoU could not be made due to opposition from different quarters on import of iron ore clause.

The South Korean company had proposed to set up a 12 mtpa mega steel plant near Paradip in Jagatsinghpur district at an investment of 52,000 crore which had been billed as the biggest foreign direct investment in the country.