Posted on 12 Feb 2015
South Korean steel major Posco would not renew its MoU
with the state government unless it gets raw material assurance.
According to sources in steel and mines department, the company has urged the
state government to ensure mining linkage before going ahead with the project.
The development came in the wake of Union steel and mines minister Narendra
Singh Tomar's statement that the steel bellwether needs to participate in
bidding to get the Khandadhar iron ore reserve in Sundargarh district or any
other mine to feed its plant proposed in Jagatsinghpur district.
"The company has planned to invest $12 billion in the state. Unless there
is a clear picture on grant of mine, it will not commit anything," an
officer said shortly after chief secretary G C Pati held a meeting with steel
and mines department officers.
In June 2005, the state government and Posco-India signed the agreement for a
12-mtpa steel plant. The MoU expired in June 2010. The Odisha government has
also recommended the Centre to grant Khandadhar mine in favour of Posco.
The company, which had downsized the project to 8 mtpa, has acquired 1,700
acre. Due to protest by locals, the company has not been able to construct
boundary wall around the acquired land.
