On January 22, the Indian steelmaker Tata Steel Ltd. (Tata Steel) announced that it has signed a memorandum of understanding (MoU) with Indian iron ore producer NMDC seeking to explore the possibilities for a strategic alliance.
According to Tata Steel statement, the company has major expansion plans within India and is looking at enhancing its iron ore resources and developing technology for using lower grades of iron ore in the country. On the other hand, NMDC plans to look beyond its iron ore business and establish a presence in steelmaking to add value to its mining operations.
By signing the MoU, both NMDC and Tata Steel have agreed to cooperate with each other to explore possibilities of entering into joint ventures for the purpose of acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants and any other business which is of mutual interest to both organizations.
The two companies will set up a working group to explore and finalize the areas of cooperation and will submit its report to a steering committee. Thereafter, a decision to enter into joint ventures will be taken.