Russia-based vertically integrated steelmaker Severstal and Indian state-run mining company National Mineral Development Corporation (NMDC) have signed an execution protocol regarding their joint venture (JV) steel project to be set up in the Indian state of Karnataka.
Accordingly, the targeted initial capacity of the plant will be 3 million mt of finished steel per year. Under the agreement, NMDC and Severstal confirm their intention to meet the joint venture's captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials. Until the development of captive assets is complete, NMDC and Severstal will be responsible for supply of iron ore and coking coal, respectively, to the joint venture from their existing assets or alternative sources.
As SteelOrbis previously reported, Severstal and NMDC signed a memorandum of understanding in December 2010 for the steel plant in question.