Indian state-run iron ore miner NMDC Limited is planning to enter into strategic alliances with the governments of iron ore-bearing states to construct greenfield steel mills through special purpose vehicles (SPVs), according to the company’s latest annual report.
NMDC has proposed to have such SPVs with the governments of Jharkhand and Karnataka, two iron ore-bearing states, and has applied to the central government for allocation of iron ore blocks in these two regions, the annual statement said.
For the proposed SPV in Karnataka, the iron ore miner has already procured 2,800 acres of land and applied to secure water and electricity supplies for the proposed greenfield project, the statement said.
However, the statement made no mention on the planned capacities of the greenfield projects and company officials have not been available for details.
NMDC is already close to completing its first greenfield 3 million mt per year steel mill project in the central Indian state of Chhattisgarh and is scheduled to commence trial production before the end of the current year.