NMDC, Rio Tinto in 50:50 mining venture

18 August 2008

Mumbai: The national Mineral Development Corporation (NMDC) will set up a 50:50 joint venture with global mining giant Rio Tinto to prospect for iron ore and other minerals both within and outside the country, its chairman Ran Som said.

''We are jointly scouting in Orissa and Tamil Nadu.'' Som said after signing the agreement. ''There are opportunities still in Australia and Brazil," he added.

The joint venture would focus on iron ore and would also be open to other minerals, he said, adding the company will revise its iron ore prices, effective 1 April 2008.

NMDC, which plans to hike iron ore prices for foreign steel makers under long-term contracts, has moved the commerce ministry seeking a reduction in export duty on iron ore.

NMDC is seeking raise iron ore prices by up to 97 per cent for foreign steel makers for long-term contracts, a move which the commerce ministry opposes, as it feels the price hike will be against the long-term trade interests of the two countries.

NMDC expects the commerce ministry to approve the duty cut from 15 per cent ad-valorem at present to the earlier Rs300 a tonne for long-term contracts.