NMDC, NLC to ink MoU with Aussie firm ECT for R&D project

: NMDC and NLC India Limited may sign an MoU with Australia-based Environmental Clean Technologies Limited for setting up an R&D facility involving an investment of AUD 35 million (USD 26.29 million) in Tamil Nadu, on May 30 in Canberra.

According to a regulatory filing by the Aussie company, the R&D facility will focus on development of innovative technologies in iron and steel making and a Special Purpose Vehicle (SPV) will be created upon completion of the R&D phase of the project if the results are encouraging for setting up a steel manufacturing unit.

ECT will have 49 per cent, NLC (formerly Neyveli Lignite Corporation) 25.5 per cent and NMDC 25.5 per cent in the proposed SPV, a senior official of NMDC had earlier told PTI.

"The company (ECT) announced last Thursday (May 17) that the signing ceremony for its Indian project was scheduled for for Thursday (May 24) in Canberra. The date has subsequently been rescheduled for Wednesday (May 30)," ECT said in a regulatory filing with Australian Securities Exchange.

"Our partners at NLC and NMDC remain highly motivated and the Australian government continues to be very supportive. We're extremely pleased that the signing ceremony will be in Canberra on May 30 reflecting the importance of this first-of-a-kind deal between Australia and India," ECT Chairman Glenn Fozard said.

The signing ceremony is the culmination of over four years of collaborative effort between the parties, representing the largest ever joint R&D agreement between Australia and India, and will see the execution of the Master Project Agreement (MPA) for the development of an integrated Coldry demonstration and Matmor pilot plant, the Australian firm said.

Following successful phase one R&D outcomes, the agreement provides the framework to proceed with a commercial-scale integrated steel-making facility.

All the three parties have previously contemplated the potential scope for the commercial phase via the techno-economic feasibility study completed in July 2016, which includes a notional capacity of 500,000 tonnes per annum steel output and an estimated AUD300 million capital investment.

The site for the R&D plant has been chosen to allow room for expansion into a commercial-scale facility, ECT added.