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.