On January 12, the government of the eastern Indian state of Orissa again recommended South Korean steelmaker POSCO (currently building a steel mill in the state) to the central government for a prospective license for the Khandadhar iron ore mines covering over 2,500 hectares, despite the opposition of local companies.
POSCO inked an agreement with the local government in June 2005 to build a steel plant by 2016 near Paradeep port, 100 km from Bhubaneswar, proposing to carry out mining in an area of around 6,000 hectares in the Khandadhar hills in the district of Sundergarh.
The central government had directed the state to recommend POSCO for the mining license after giving equal opportunities to other applicants. The latest recommendation was made after the state government found POSCO to be the most suitable among all applicants.