NMDC, Russia's Severstal sign execution protocol for Karnataka JV

State-owned miner NMDC Limited and Russian steel and mining giant OAO Severstal have signed the implementation protocol in Moscow, a step further on the memorandum of understanding (MoU) they had signed in December 2010 for establishment of a steel plant with an initial capacity of 3 million tonnes in Karnataka.

The deal was signed in the presence of Union Minister of Steel Beni Prasad Verma and steel secretary PK Mishra, who are on a high-level business visit to Russia, according to an NMDC release.

Under the protocol, both NMDC and Severstal would fully meet the joint venture's captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials. Until the captive assets are fully developed, both the companies would take the responsibilities to supply inputs to the proposed JV on a market basis from their existing assets or alternative sources.

 

Alexey Mordashov, chief executive of Severstal, termed the joint venture project as a good fit with the company’s growth focused business model.

“The joint venture of Severstal and NMDC will be another milestone in India-Russia economic cooperation and will be an important investment for the Indian steel industry,” Mishra said.

Rana Som, chairman and managing director, NMDC, confirmed that the company was working towards realising its dream to make the project not only financially strong but also socially meaningful and economically relevant to meet the needs of India.