Indian
iron ore miner
NMDC Limited will form a special purpose vehicle (SPV) with Jharkhand Mineral Development Corporation Limited (JMDC) to set up its planned 6 million mt per year greenfield steel mill in the eastern Indian state of Jharkhand, a Jharkhand government official said on Wednesday, May 11.
The official stated that the SPV will facilitate the government's allocation of
iron ore sourcing to the project as JMDC is the mining arm of the state government.
However, the exact equity participation of JMDC and
NMDC is yet to be determined, although the estimated investment amount stands at $5.30 billion.
The government official said that, even though
NMDC is the country's largest
iron ore miner, it suggested the steel mill should have linkages of
iron ore from within Jharkhand for logistical cost efficiencies instead of relying on ore from
NMDC mines in the neighboring state of Chhattisgarh.