NMDC mulls JV in Colombia for coking coal

State-run iron ore miner NMDC is exploring the possibility of forming a joint venture with a Colombian firm to get access of coking coal for fuelling its steel plants.

"Colombia has reserves of coking coal in which NMDC is specially interested. The company is exploring the possibility to ink a joint venture with a Colombian firm for getting coking coal for its proposed steel plants," a source privy to the development said.

The source, who was a part of the delegation that visited recently to Chile and Colombia led by Mines Minister Dinsha Patel, said that NMDC expressed its willingness to have a tie-up in Colombia for coking coal during an interaction with the local miners.

"However, NMDC is yet to identify any target," he said.

One NMDC official was among the eight-member delegation that visited the two Latin American countries.

NMDC, country's largest iron ore miner, is in the process of developing a 3 million tonnes per annum (MTPA) steel plant in Chhattisgarh. The plant is scheduled to commission in early 2014.

Iron ore required for the plant is understandably would be supplied from its own existing mines, but the need to have coking coal to run the facility has made the firm scouting for the deposits of the same.

NMDC has already inked a joint venture pact with Russia's Severstal for a steel plant in Karnataka and is also in talks with Tata Steel to form an equal joint venture for setting up a 2 MTPA steel plant in Chhattisgarh.

The eastern region of Colombia has a large area yet to be explored for coking coal mining. However, Colombian government wants India to take an integrated approach with regard to the infrastructure development combined with mining in the area, the source said.