Centre considering Posco mining project favourably: Minister

Union Mines and Steel Minister Narendra Singh Tomar Wednesday said the central government is considering the mining project of South Korean steel major Posco in Odisha with positivity.

"We are considering the case with positivity," the minister told reporters here.

The state government early this year had recommended to the central government that the Khandadhar iron ore mines in Odisha's Sundergarh district be given on lease in favour of Posco.

The mines will supply raw materials to the $12-billion steel plant Posco is planning to build in the state's Jagatsinghpur district.

Tomar who was here on an official visit, however, said there are some issues that need to be resolved. The mining area recommended in favour of Posco has both notified and non-notified areas," he said.

Earlier during the day, Tomar met Chief Minister Naveen Patnaik and held discussions with him on various issues especially relating to steel and mining.

He assured support to the state in developing these sectors. The minister also apprised Patnaik about various steps taken by the central government for bringing improvements in these areas in the country, a senior official of Odisha's steel and mines department told IANS.