OAO Severstal and NMDC Limited, a Navratna Public Sector Undertaking under the Government of India, signed a Memorandum of Understanding to establish a joint-venture company (JVC) to build an integrated steel plant in Karnataka, India. The plant will have a capacity between 2 and 5 million metric tons per year. The JVC proposes to have its captive coking-coal mining subsidiary in Russia and iron-ore mining subsidiary in India, which will ensure long-term supply of these critical steelmaking raw materials to the proposed steel plant.
NMDC, Asia’s third-largest iron ore producer, and Severstal, Russia’s largest steelmaker, will each have a 50% shareholding in the JVC. A site has been identified and construction is expected to begin by 2012. The plant, which may cost up to $5 billion, may be commissioned by 2015.
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