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New
Delhi: South Korean steel major Posco is sticking to its demand for captive
mines and has rejected the centre''s initiative for forging a joint venture with
state-run Kudremukh Iron Ore Co Ltd (KIOCL) to break the deadlock over access
to Orissa''s Khandahar mines. Along
with this the mines ministry is not too keen on the proposal either. The
centre had made this suggestion last month in order to remove the roadblock in
the way of Posco''s Orissa plans. According to the proposal, KIOCL would do the
mining while Posco would get supplies on commercial terms. The
mines have become a bone of contention with Posco and KIOCL basing their claim
on the fact that they have done the prospecting work in the area. Posco,
which will need around 18 million tonnes iron ore annually once its plant starts,
is optimistic that the state government will help it secure raw material. The
state government supports the Posco project on the ground that it has scope for
value addition and downstream investments. The
deadlock over mining lease is one of the two impediments for the project, the
other being
land acquisition. The company has got approval for its port and is expecting the
environmental nod soon.
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