Posco India, the Indian subsidiary of South Korea-based steelmaker POSCO will be forced to give up its plans to swap low grade iron ore with high grade ore for its 8 million mt per year steel plant being built with an investment of $12 billion in eastern Indian province of Orissa, an official in Ministry of Mines said on Tuesday, September 25.
The Ministry of Mines issued a notification imposing an immediate ban of sale or export of iron ore from the mines granted to the steelmakers for their own consumption. Accordingly, Posco India will not be able to swap iron ore mined within the country as it has been granted earlier by a memorandum of understanding between the provincial government of Orissa and the company.
Posco India’s 8 million mt per year steel plant in Paradip, Orissa will require 600 million mt of iron ore reserves.