NMDC-Mittal JV in Senegal making no headway

The JV between state-owned mining company NMDC and the world's largest steel-maker Arcelor Mittal to develop iron ore mines in Senegal is having difficulty getting off the ground, sources close to the development said.

When contacted, Rana Som, Chairman and Managing Director, NMDC, admitted that there has been no progress.

"That (project) is under hibernation. Nothing is happening there. Senegal government has a lot of reservations about the project. The latest information I got was Senegal government is not willing to invest on infrastructure without which the project is unviable," Som told PTI.

The project requires erection of an 800 km long railway line which NMDC feels is beyond it. The mining company has approached both Indian and Senegalese governments, seeking a helping hand in creating the infrastructure.

"We have approached the Central government for help. We are yet to get reply," a senior official of NMDC said.

Mittal and NMDC joined hands last year to develop the Faleme iron ore mines for which ArcelorMittal had entered into an agreement with the Senegalese government in 2007. The mines have estimated reserves of 750 million tonne of iron ore.

The project requires construction of a new port near Senegal's capital, Dakar, besides a railway link between the mines.