NMDC in pact with LNM’s ArcelorMittal in Senegal

The reserves are located in multiple locations in the Faleme region in southeast Senegal,containing both haemetite and magnetite ores. “As of now,both the companies have decided to invest Rs 5,000 crore each for the project,wherein there is an express need to build a new port as well as develop nearly 750 kms of railway infrastructure to link the mine and the port,” a highly-placed source told The Indian Express. The navratna mineral giant was also eager for quite some time to explore new horizons overseas to strengthen its resource base “and the new venture amply provides the same. Both the companies would sign the necessary agreements after sorting out the details,” the source said.

Global steel tycoon Lakshmi Niwas Mittal’s company had announced the signing of an agreement with the Senegalese government in February 2007 for developing the mine. The project is expected to be developed in phases to achieve an annual production capacity of between 15 million and 25 million tonnes per year at peak operations. The company has further plans on selective investments in the downstream steel facilities. But the project did not really take off,presumably due to the global economic downturn,compelling ArcelorMittal to scout for a “viable partner” to jointly develop the mines,the source said. Ore production from the said mines is expected to begin next year.

Earlier in August 2008,NMDC had announced a tie-up with global mining giant Rio Tinto to scout for acquiring and developing mines both in India and abroad,especially in Australia and Brazil.