SAIL and BHP Billiton sign MoU

SAIL and BHP Billiton sign MoU

According to recent news in the market, Indian steel producer Steel Authority of India Ltd (SAIL) and Australian BHP Billiton signed a memorandum of understanding to develop coking coal and iron ore mines in India as well as in other countries. In line with the deal, SAIL will invest in BHP Billiton's mines and obtain coal supply from BHP Billiton. In return, BHP Billiton will develop iron ore mines in India. It is reported that in order to ensure long-term coal supply SAIL may hold 15-20% stake in the coal mines of BHP Billiton. SAIL plans to increase its hot metal production from 13 million tons to 20 million tons by 2011-2012. The recent deal is a part of SAIL's expansion plan.